Tufton rides stronger markets with fresh tanker and bulker deals

London-listed Tufton Assets has secured higher-paying employment across its tanker and dry bulk fleet, with two MR product tankers extended for another year and further charter renewals in the pipeline.

The charterer of the 2016-built 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 ship investment company said in its third-quarter update.

The latest extensions add to a string of chartering moves during the third quarter, when the company secured improved terms for three vessels and fixed two handysize bulkers on new arrangements.

Among the latest dry bulk fixtures, the ultramax African Inspiration has been extended for six to eight months from early October at a substantially higher rate, while the handysize Lucilia C has started a new seven- to nine-month charter following the expiry of its previous employment in September.

The moves follow Tufton’s September fixing of the MR product tanker Mia Grace at $39,000 per day for 12 to 14 months, an 81% jump from its previous $21,500 daily rate.

The company also secured more than $15,000 per day for handysize bulker Amilyn and converted the index-linked charter of sistership Staithes to a fixed $19,000 per day for the fourth quarter.

The wider chartering activity comes as Tufton benefits from stronger tanker and dry bulk markets. The company said disruption around the Strait of Hormuz, coupled with reduced availability of compliant tankers, had helped lift freight rates, while grain, iron ore and bauxite demand supported dry bulk earnings.

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, representing a 5% total return for the quarter.

Earlier this year, Tufton expanded its dry bulk exposure with the $33m acquisition of two Japanese-built handysize vessels, which entered the fleet in April.

Further chartering opportunities are approaching, with existing contracts for three tankers and four bulkers due to expire in the coming months. The company said it was assessing the market for new employment to take advantage of stronger rates.

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