TNK Teekay Tankers Ltd - Ordinary Shares - Class A

$TNK $NAT $FRO lets put the daily rates into context for people. The highest daily rate charter for a Suezmax in 2025 was a one time charter of $95,000 /day. The highest aframax charter was $55,000 /day. Those were the spikes. Not the average. The average was around $40K per day for suezmax and $35K for Aframax. A suezmax today is going for $550K per day..on the cheapest route...A one year charter is $135K per year. An Aframax is going for just over 300K on the cheapest route in spot market today...with a 1 year charter going for $70-79K per day. These operators will profitable last year. They are obscenely profitable this year. And more important they can lock in time charters 2-3 times the rate of 2025.

$TNK $NAT $FRO there are three major drivers here. 1) Conflict that is not only making the routes longer but is also reducing the number of active tankers. 2) It appears China is starting to import more oil signaling their SPRs withdrawals are slowing down. 3) The shutdown of the Saudi east-west pipeline. These events are going to cause shipping rates to go through the roof because nations will pay the rates to keep the oil flowing.

$TNK $FRO $NAT Once again why is this crisis different from the Oil embargo of 1973? The answer is simple. Every oil producer wants to sell oil. And more importantly every middle east country wants to sell oil. AND they have vast amounts of it..in storage. So the price per barrel of oil will go down. It doesnt matter if Saudi production goes offline or Iranian production goes offline when...Venezuela is online, the rest of the middle east needs to clear storage capacity.. Its about to be cheap oil and but high transport costs because there are not enough tankers to pick it all up because there is still a blockade...the houthis will probably for a detour of the suez canal for shipping and Ukraine and Russia are starting to target each other's shipping. The world is not producing enough ships fast enough to fill the need now...and if ships start getting disabled in the strait of hormuz or sunk...then all bets are off.

$TNK $TRMD $NAT Apparently the Italian navy is preparing to escort their commercial ships past Bab-Al-Whatever-it's called and so on and so forth. Here in the US we don't need that. Houthi's have agreed not to attack our ships. 🤣 Honestly, they're probably no less trustworthy than Donald.