The direction of US-listed tanker stocks on the first full trading day of Donald Trump’s presidency looked a whole lot like the trajectory on the last two days of his predecessor.
Down. Again.
And they were down in a way that erased more than a week of gains that seemed to be tied to US sanctions activities late in the term of former President Joe Biden.
Tuesday’s losses in New York trading also came on a day when the broader US stock indices rallied in support of the start of Trump’s second term. The Dow Jones Industrial Average surged back above 44,000.
The tanker carnage was led by bellwether stocks in each operating sector.
Product tanker giant Scorpio Tankers plunged 9.4%, reaching its lowest point of the new year and erasing all the gains from the sanctions-fuelled rally.
Other clean product tanker equities fell with it — Ireland’s Ardmore Shipping by 6.8%, Hafnia by 6.1% and Torm by 4.8%.
John Fredriksen’s Frontline, the flagship of the crude tanker owners, dropped 5.5% to its lowest close since 8 January.
Teekay Tankers sank 5.6%, diversified tanker owner International Seaways tumbled 4% and VLCC specialist DHT Holdings lost 4.2%.
Shipping stocks in dry bulk and the container trade were a mixture of small losses and gains.
As TradeWinds reported on Friday, the New York listed tanker group hit a two-day slump at the end of last week after more than a week of gains. Six of the eight stocks monitored lost ground over the week.
This was despite a freight market that kept firming across most tanker classes.
There was no trading in the US on Monday as the stock exchanges closing for the Martin Luther King federal holiday, which was dominated by the news of Trump’s inauguration and a flurry of presidential orders reflecting his priorities.
Jefferies lead shipping analyst Omar Nokta told clients on Tuesday that most shipping operating sectors were running steady as the week started.
“VLCCs are starting the week on a quieter tone and rate assessments are easing slightly from their latest highs,” Nokta said in a research note.
“Eco VLCC rates are hovering at just above $60,000/day, while suezmax and aframax earnings are nearly $40,000/day and $30,000/day, respectively.”
