Shares of Nordic American Tanker (NYSE: NAT) jumped as much as 19.8% in trading on Friday after getting some good news from management. At 1:50 p.m. EDT, shares are up 13.8% and look to end the week on a positive note.
Yesterday, Founder and CEO Herbjorn Hansson sent a note to investors pointing out that the continuing Suez Canal blockage could actually be good for business. Ships would be forced to sail around Africa, taking more time to complete longer voyages. And if that happens, it would effectively reduce the industry’s shipping capacity, and this in turn should push freight rates higher.