The tanker will be chartered out to a leading US oil major at approximately USD 17,000 per day (approximately USD 18,000 per day for the option) under regular market terms.

Tankerska Next Generation published an announcement stating that they have secured a 3-year time charter employment for one of its ECO tankers with charterers’ option to extend for an additional year. The contracted employment is with delivery scheduled in July or August 2020.

The tanker will be chartered out to a leading US oil major at approximately USD 17,000 per day (approximately USD 18,000 per day for the option) under regular market terms. The company notes that the negotiated conditions are thoroughly in line with the company’s strategic concept that focuses on the efforts to secure a strong asset base and stable cash flow.

As a reminder, earlier this year (late February) TNG secured two-year employment for one of its conventional ice-class product tankers at approximately USD 17,100 and USD 16,850 per day under regular market terms. To read more about it click here.

Tankers have recently been in the spotlight, seeing a rise in demand as they are intended to be used for storage of oil. This started off back in March when oil prices decreased enough for big energy traders to be able to take advantage of a market structure called contango, a situation where the futures price of a commodity is higher than the spot price. By buying oil cheaply now and selling at a higher price in the future market, traders can make money as long as the difference is greater than the cost of storage. To read our blog on this topic, click here.

TNG has also recently published their Q1 2020 results, which can be found here.