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NATURE OF BUSINESS | 12 Months Ended
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Dec. 31, 2013
NATURE OF BUSINESS [Abstract] |
NATURE OF BUSINESS |
1. | NATURE OF BUSINESS
Nordic American Tankers Limited ("NAT") was formed on June 12, 1995 under the laws of the Islands of Bermuda. The Company's shares trade under the symbol "NAT" on the New York Stock Exchange. The Company was formed for the purpose of acquiring and chartering double-hull tankers. In January 2013 NAT acquired Scandic American Shipping Ltd. ("Scandic" or the "Manager") and Orion Tankers Ltd ("Orion"). Accordingly, these financial statements are presented on a consolidated basis for NAT and its subsidiaries ("the Company" or "the "Group"). For the year ended December 31 2013, Scandic had the daily administrative, commercial and operational responsibility and Orion has provided services as the pool manager. The Group provided assistance in the formation of Nordic American Offshore. Otherwise no services were provided by the subsidiaries for parties outside the Group. For further details on the acquisition of the subsidiaries please see Note 3 and Note 10. The Company is an international tanker company that currently owns 20 Suezmax tankers, an increase from three vessels owned in the autumn of 2004. The Company expects that the expansion process will continue over time and that more vessels will be added to its fleet. The 20 vessels the Company currently operates average approximately 156,000 dwt each. In 2013 and 2012, the Company chartered all of its operating vessels into a spot market arrangement with Orion. The Orion Tankers Pool was established in November 2011. In 2011, the Company chartered all of its operating vessels in the spot market pursuant to a cooperative arrangement with Gemini Tankers LLC, until November 24, 2011, at which time the Company entered into a spot market arrangement with Orion. Tanker markets are typically stronger in the fall and winter months (the fourth and first quarters of the calendar year) in anticipation of increased oil consumption in the northern hemisphere during the winter months. Seasonal variations in tanker demand normally result in seasonal fluctuations in spot market charter rates. The Company's Fleet The Company's current fleet consists of 20 Suezmax crude oil tankers, and all of its vessels are employed in the spot market.
Vessel | Yard | Built | Deadweight Tons | Delivered to NAT
Nordic Harrier | Samsung | 1997 | 151,459 | August 1997
Nordic Hawk | Samsung | 1997 | 151,475 | October 1997
Nordic Hunter | Samsung | 1997 | 151,401 | December 1997
Nordic Voyager | Dalian New | 1997 | 149,591 | November 2004
Nordic Fighter | Hyundai | 1998 | 153,328 | March 2005
Nordic Freedom | Daewoo | 2005 | 159,331 | March 2005
Nordic Discovery | Hyundai | 1998 | 153,328 | August 2005
Nordic Saturn | Daewoo | 1998 | 157,331 | November 2005
Nordic Jupiter | Daewoo | 1998 | 157,411 | April 2006
Nordic Moon | Samsung | 2002 | 160,305 | November 2006
Nordic Apollo | Samsung | 2003 | 159,998 | November 2006
Nordic Cosmos | Samsung | 2003 | 159,999 | December 2006
Nordic Sprite | Samsung | 1999 | 147,188 | February 2009
Nordic Grace | Hyundai | 2002 | 149,921 | July 2009
Nordic Mistral | Hyundai | 2002 | 164,236 | November 2009
Nordic Passat | Hyundai | 2002 | 164,274 | March 2010
Nordic Vega | Bohai | 2010 | 163,940 | December 2010
Nordic Breeze | Samsung | 2011 | 158,597 | August 2011
Nordic Aurora | Samsung | 1999 | 147,262 | September 2011
Nordic Zenith | Samsung | 2011 | 158,645 | November 2011
Comparative Information In 2013 the Company acquired 100 % of Scandic American Shipping Ltd and the remaining 50 % of Orion. As a consequence the accounts as of December 31, 2013 are presented on a fully consolidated basis. The comparative information as of December 31, 2012 and 2011 have not been adjusted and is presented on a non-consolidated basis. As a result the Statement of Financial position and the Statement of Operations as of December 31, 2013 are not fully comparable with the December 31, 2012 and 2011 comparative information. The most noticeable effects are: In the statements of operations General and administrative expenses for the year ended December 31, 2013 include $2.2 million as a result of the consolidation. In the statement of financial position as of December 31, 2012 and 2011, the Company presents two asset line items representing net receivables from the Orion Tankers Pool. These line items were "Accounts Receivable, net related party" in the current asset section and "Related party receivable" in the non-current asset section. In 2013 these line items are not shown as the Orion Tankers Pool is fully consolidated. Consequently, the Company present "Accounts receivable, net", "Inventory", "Voyages in Progress" and "Accrued Voyage expenses" in the statement of financial position as of December 31, 2013. There are no other noticable effects following the consolidation of subsidiaries.

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- Definition The entire disclosure for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 275 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6003-108592 + Details
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