Teekay Tankers feels well positioned in a market that can offer high freight rates for the next two to three years.

This is the message from the Canadian shipping company, which operates in the medium-sized tanker segment. 

In particular, new and longer trade routes in connection to the sanctions against Russia has impacted on the bottom line. Net profit increased to USD 151.2m from 28.5m in the second quarter of 2022, according to the financial report.

According to the tanker carrier, it is especially increasing demand from China and India in the wake of the sanctions against Russia that is creating a ”new normal” with longer trade routes for Teekay’s tankers.

”While the moderating of spot rates in the third quarter reflects typical seasonality for this time of year, rates are currently tracking well above any third quarter of the last 15 years. Looking ahead, with oil demand projected to increase in the second half of the year, we are expecting a strong winter market,” CEO Kevin Mackay comments in the report.

”Meanwhile, the limited amount of new vessel ordering that has taken place in recent months and the lack of shipyard capacity until 2026 has all but ensured that mid-sized fleet growth will be strictly limited through the medium term,” he adds.

(Translated using DeepL with additional editing by Christian Radich Hoffman)