Frontline Buoyed by China’s Oil Demands
Bermuda-based Frontline Ltd., the world’s largest operator of oil-carrying supertankers, anticipates a rebound in charter demand in the coming months as China increases its demand for crude oil imports.
Based in Hamilton and controlled by Norwegian-born shipping tycoon John Fredriksen, the company has a fleet of 82 tankers with 18 more on order. There is “huge import demand from China”, Jens Martin Jensen, Singapore-based chief executive officer of Frontline’s management unit, today told Bloomberg.
Imports are thought to be increasing because of winter demand and efforts to expand Chinese stockpiles. The news of China’s renewed demand for crude marks a welcome development for Frontline.
“Spot rates for supertankers, each bigger than the Chrysler Building, slumped 54 percent this year as the supply of new vessels increased faster than demand for oil,” said Bloomberg. “Owners responded by cutting ship speeds and anchoring vessels to constrict supply and Jensen in July said the Hamilton, Bermuda-based company was turning down business rather than operate at unprofitable rates.”
