6 September 2019
The current market, geo-political state and regulatory change poses many questions on how to trade your ship, and not be tripped up by the ever changing environment. We are all fully aware of what IMO2020 means. Teekay’s expert bunkering and technical team have worked tirelessly to ensure the fleet is ready for the changeover. Not only in getting the vessels physically ready to ensure minimum off-hire time for the change over, but in getting supply contracts in place ensuring when H-Hour comes there is available fuel for the ships available in the RSA.
The US Gulf Aframax market which has traditionally been the high performing area has and continues to see its own unique challenges. Yes, exports from the United States are up which is good, but with Venezuela being sanctioned (for now) large volumes that have been historically sent to the United States have dwindled significantly. At Teekay we remain well placed to ensure our pool earnings remain strong, we have an almost 50-50 fleet distribution with the Eastern and Western hemispheres, this has allowed us to hold up our earnings with the more steady Pacific region. With over 40 years of heritage in the East our experience and contracts with oil companies allow us to maximize returns for the RSA.
As a NY stock listed entity, Teekay is focused more than most on transparency, regulation and security of the vessels. We are obliged to release our actual earnings, there is no smoke and mirrors here. We will not risk dipping into the grey of sanctioned oil and we certainly wont go anywhere with a partner’s ship that we wouldn’t go with our own.
While some new pools have sprouted and others have had major changes, Teekay remains the stalwart of stability and reliability in this competitive space. Our commercial team has an average of 11 years employment at Teekay, your ships really are in safe hands.