Nordic American Tankers Limited (NYSE:NAT) - Letter to Shareholders from the Chairman & CEO. Improved Market Conditions for our Suezmax tankers.

Hamilton, Bermuda, January 10, 2014

All the best for the new year which has started out very well for NAT. In my letter to you one month ago, December 10 2013, I pointed at the improved conditions in the Suezmax spot tanker market. The strong development has continued into 2014. We do not predict spot tanker rates. I would note, though, that we are very pleased to see this strongly improved rate picture for Suezmax spot tankers.

We often have requests for information about spot Suezmax rates. Below are the rates as quoted by Fearnleys Shipbrokers January 9 - yesterday. Rates achieved by NAT per day may differ from the quotes of shipbrokers. Rates are volatile, and may move both up or down from the levels listed below. Rates are given in dollars per day for vessels in the spot market. All the NAT vessels (20 Suezmaxes) are in top technical condition, trading in the spot voyage market. NAT is a supplier of ships above all to the large international oil companies.

Market rate estimates are often in an "ideal" world, with minimum waiting time. The rates do not with any precision indicate the rates achieved in the market by a shipping company.

Market estimates for five different routes January 9, 2014:

130 KT - WAFR/USG $57,500 West Africa / US Gulf
130 KT - WAFR/USAC $59,500 West Africa /US Atlantic Coast
135 KT - BSEA/UKCM $76,500 Black Sea / UK/Continent
130 KT - CROSS MED $76,500 Cross Mediterranean
130 KT - MED/USG $55,500 Mediterranean/US Gulf

The cash break-even rate for the NAT vessels, including administrative and financing items is about $12,000 per day per ship. A strong tanker market does impact the dividend payments to shareholders in a positive way.

I wish to be cautious and conservative. We do see, however, recent developments as positive signs, indicating that we are coming closer to a recovery.

All the best !

Herbjorn Hansson
Chairman & CEO
Nordic American Tankers Limited

Nordic American Tanker Shipping Ltd., press release