Frontline Says Oil Tankers Still Vulnerable as New Tonnage Enters Market

Frontline Ltd., the world’s biggest operator of supertankers, said the market is still “vulnerable” after almost five months of unprofitable rates. The shares fell the most in 2 1/2 months in Oslo trading.
Shipowners cut speeds and idled vessels this year as spot rates plunged as much as 71 percent from January to $25,849 now, according to data from the Baltic Exchange. While the Northern Hemisphere’s winter should spur oil demand, shipping will remain “vulnerable as new tonnage enters the market,” Frontline said, referring to the biggest-ever shipbuilding program.
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Source: Bloomberg