Tufton Assets Re-fixes Eight Tankers and Bulk Carriers at Higher Rates

Tufton Assets, the London-listed shipping investment firm, re-fixed eight of its tankers and bulk carriers in the charter market, securing higher payment terms, and signalled that further charter deals are expected in the near term.

Among the most recent moves, the company exercised options in October to extend the employment of the 2016-built MR product tankers Catherine Grace and Madelyn Grace for 12 months, at rates above their previous firm periods.

During the third quarter the company also improved the terms on three other vessels and fixed two handysize bulk carriers under new charters. The ultramax African Inspiration was extended for six to eight months from early October at a substantially higher rate, while the handysize Lucilia C began a new seven-to-nine-month charter following the expiry of its previous employment in September. Also in September, Tufton had fixed the MR product tanker Mia Grace at $39,000 per day for 12 to 14 months, an 81% jump from its previous rate of $21,500 per day, and secured more than $15,000 per day for the handysize bulk carrier Amilyn, while converting the index-linked charter of its sister vessel Staithes into a fixed rate of $19,000 per day for the fourth quarter.

Tufton's net asset value rose to $1.63 per share at the end of September, representing a total return of 5% for the quarter. Nicolas Tirogalas, chief executive of Tufton Investment Management, described the period as another good quarter for the company.

The company attributed the improved rates to the disruption in the Strait of Hormuz and the reduced availability of sanctions-compliant tankers, while demand for grain, iron ore and bauxite supported earnings in the dry bulk segment. Lloyd's List also noted that the firm sees a boost for its tankers stemming from the crises in the Persian Gulf and the Black Sea, and expressed optimism about the outlook for the dry bulk market in 2027. Tufton's fleet currently comprises 21 vessels, including eight product tankers, two chemical tankers and 11 bulk carriers, and the company is assessing the market for new charters, as the current agreements for three tankers and four bulk carriers expire in the coming months.