In a letter to shareholders, Herbjørn Hansson, Chairman & CEO of Nordic American Tankers, says that the tanker market is the "strongest we have seen in decades".
"Increased exports from Saudi Arabia lead to extra demand for tonnage. As an example, it has been indicated that one million barrels a day extra from Saudi Arabia to the Far East create demand for about 45 suezmaxes.
"It is simple: Increased demand leads to more transportation work for our tankers. The last days we have entered into solid contracts for our suezmax tankers in the region of $65,000 per day to more than $100,000 per day. Our operating costs are about $8,000 per day per vessel. NAT has 23 suezmaxes which can load one mill barrels each."