A big jump in the daily charter rats for tankers has been reported by the head of Bermuda-registered Nordic Atlantic Tankers.

The spot tanker price was just $17,000 a day in October but is now $68,000.

However, it will take some time for Nordic to see real returns on this upswing as its vessels are typically on contracts for a short period forward, the company president and chief executive officer Herbjorn Hansson in a letter to shareholder.

He also reports that the company's technical and commercial operations have now been consolidated.

Presently Nordic has 14 double-hull suezmax tankers and is having two more built to be delivered in the fourth quarter of 2009 and the first quarter of 2010.

Mr. Hansson said the market had been weaker in the third quarter of this year, adding: "Whilst there were signs that a rebound in spot tanker rates could be expected during the fourth quarter.

"It was no surprise to us that we have seen a strong increase in freight rates recently. The volatile spot tanker market is notoriously difficult to predict. The development is illustrated by the IMAREX index for suezmax tankers which was $17,160 per day in October, $29,921 per day in November and $68,013 per day up to and including December 6.

"To some extent this index is an indication of the level of the suezmax spot tanker market. In an improving market, it will take a certain time before NAT is getting the full effect from this rate increase as the vessels typically have contracts for a short period forward, i.e. only a few weeks."

The company boss said Nordic had completed the consolidation of its technical functions with V.Ships Norway AS now technically managing all the company's vessels, except one which is on long term bareboat charter.

Nordic's commercial functions, which were previously outsourced to four different companies are now to be dealt with by just two partners, namely Frontline and Sweden's Stena Bulk.