You wouldn't know it by looking at share prices in the sector, but certain oil-tanker rates have exploded in recent weeks.
Remember our discussion of how DryShips'
In the last two weeks of November, the BDTI, which tracks a dozen different tanker routes, rose more than 50%. Long-haul voyage rates have changed even more dramatically in the same period. While owners of very large crude carriers (VLCCs) were reluctantly accepting jobs in the vicinity of $17,000 a day -- actually a money-losing proposition for a company such as Frontline
Let's return to those relatively stagnant share prices. If tanker operators are now able to earn multiples of what they were pulling down just two weeks ago, why haven't their stocks rocketed higher?
For one thing, many of the bigger companies in this space, such as Overseas Shipholding Group
Second, tankers come in all shapes and sizes, so even pure crude-movers don't necessarily have the type of transporter that's most in demand. Nordic American Tanker
Third, even Knightsbridge Tankers
I'm afraid those of you looking to make a quick buck on this turning of the tanker tide are straight out of luck. But if you're a shareholder of a company such as OSG or Teekay