Teekay Doubles Suezmax Fleet


By The Maritime Executive 08-13-2015 11:00:16

Teekay Tankers has announced the acquisition of 12 modern Suezmax tankers from Principal Maritime for a total cost of $662 million. The vessels more than double Teekay Tankers’ owned Suezmax fleet and solidify the company’s position as the largest owner and operator of mid-size crude oil tankers.

With a larger fleet, the company is positioned to take advantage of the growing demand for Suezmax tankers resulting from greater long-haul Suezmax movements from the Atlantic to Pacific basins as well as other niche intra-regional voyages. 

“Teekay Tankers will become one of the largest owners of modern Suezmax tankers at the right point in the tanker market cycle when positive market fundamentals support continued strength in spot tanker rates,” said Teekay Tankers’ CEO, Kevin Mackay.

The vessels are scheduled to be delivered by the end of October 2015 and are expected to operate in the spot tanker market soon after delivery. The Suezmax vessels to join Teekay Tankers’ fleet are:

Princimar Courage
Princimar Pride
Princimar Integrity
Princimar Grace
Princimar Hope
Princimar Promise
Princimar Joy
Princimar Strength
Princimar Truth
Princimar Confidence
Princimar Loyalty
Princimar Faith

With an average age of only 5.5 years, the 12 Suezmaxes will reduce the average age of Teekay Tankers’ fleet by 1.2 years. 

Teekay Tankers currently owns a fleet of 44 double-hull tankers, including 22 Suezmax tankers (including the 12 acquired vessels expected to be delivered by October 2015), 12 Aframax tankers, seven LR2 product tankers and three Medium-Range product tankers, and has 11 time charter-in tankers. 

Teekay Tankers’ vessels are employed through a mix of short- or medium-term fixed-rate time charter contracts and spot tanker market trading. The company also owns a Very Large Crude Carrier through a 50 percent-owned joint venture. In addition, Teekay Tankers owns a ship-to-ship transfer business and a minority interest of 9.3 percent in Tanker Investments Ltd, which currently owns a fleet of 20 modern tankers, including five vessels expected to be acquired in the third quarter of 2015. 

Teekay Tankers was formed in December 2007 by Teekay Corporation as part of its strategy to expand its conventional oil tanker business.