Tufton locks in 81% rate hike as tanker and bulker markets surge
London-listed Tufton Assets secures $39,000 daily rate for MR tanker Mia Grace, up from $21,500
London-listed Tufton Assets has capitalised on surging tanker and dry bulk markets, securing a string of higher-paying charters across its fleet, including an 81% rate increase for MR product tanker Mia Grace.
In its third-quarter update, the ship investment company confirmed that the charterer of the 2016-built MR product tankers Catherine Grace and Madelyn Grace exercised options in October to extend both vessels’ employment by 12 months at rates above their previous firm periods. The moves follow a broader trend of improved chartering terms secured during the quarter, with three vessels re-fixed on stronger terms and two handysize bulkers placed on new arrangements.
Dry bulk and tanker markets drive rate gains: Tufton
The ultramax bulker African Inspiration was extended for six to eight months from early October at a substantially higher rate, while the handysize bulker Lucilia C began a new seven- to nine-month charter after its previous employment expired in September. These fixtures reflect robust demand in dry bulk, where grain, iron ore, and bauxite shipments have supported earnings.
Safe Bulkers
In the tanker segment, Tufton’s Mia Grace was fixed at $39,000 per day for 12 to 14 months, an 81% increase from its previous $21,500 daily rate. The company also secured more than $15,000 per day for the handysize bulker Amilyn and converted the index-linked charter of its sistership Staithes to a fixed $19,000 per day for the fourth quarter.
Market conditions have played a critical role in Tufton’s recent successes. Disruption around the Strait of Hormuz, coupled with reduced availability of compliant tankers, has tightened tonnage supply and lifted freight rates. Meanwhile, dry bulk earnings have been buoyed by steady demand for key commodities, with iron ore and bauxite shipments remaining resilient.
Fleet expansion and future opportunities
Tufton’s fleet currently comprises 21 vessels, including eight product tankers, two chemical tankers, and 11 bulk carriers. The company’s net asset value rose to $1.63 per share at the end of September, delivering a 5% total return for the quarter, a reflection of both higher charter rates and strategic fleet expansion.
Earlier this year, Tufton bolstered its dry bulk exposure with the $33 million acquisition of two Japanese-built handysize vessels, which entered the fleet in April. The additions have positioned the company to capitalise on improving market conditions, with further chartering opportunities on the horizon.
Contracts for three tankers and four bulkers are due to expire in the coming months, and Tufton is actively assessing the market for new employment. With rates remaining elevated, the company is well-placed to negotiate favourable terms for its remaining tonnage, ensuring continued revenue growth in a strengthening market.
The recent chartering activity underscores Tufton’s ability to navigate volatile freight markets, leveraging its diversified fleet to secure higher-paying contracts. As disruption in key shipping lanes persists and commodity demand holds firm, the company’s proactive approach could yield further gains in the months ahead.
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