Frontline Cancels Tanker Orders

Friday, May 29, 2009

According to a May 28 Associated Press report, Frontline Ltd., which owns and operates one of the world's largest fleet of crude oil tankers, said Thursday it canceled contracts to construct six new tankers, representing a third of the company's tanker building program and a contractual cost of $556 million.

The company said it canceled contracts to build four Suezmaxes and two Very Large Crude Carriers (VLCC). Shares of Bermuda-based company climbed $1.06, or 4.7 percent, to $23.88 in morning trading. After the cancellations, the company's total new-tanker building program amounts to about $1.1 billion, including seven VLCCs and four Suezmax tankers.

Bloomberg reported on May 28 that Frontline Ltd., said it was the first publicly traded shipping line to cancel contracts for new oil carriers and predicted a third of all orders will be delayed or canceled.

(Source: Associated Press, Bloomberg)

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Oil Traders Say OPEC May Be Heading for Price War

Saudi Arabia's decision to slash the official selling price for its oil has sparked trader talk of an emerging OPEC price cutting war, as members of the producer

MOL, Osaka Gas’s Newbuild LNG Carrier Named

Mitsui O.S.K. Lines, Ltd. (MOL) announced that a naming ceremony for the LNG Venus, a newbuilding liquefied natural gas (LNG) carrier, was held at the Nagasaki Shipyard of Mitsubishi Heavy Industries,

Frontline & TI form new VLCC Company

Frontline Management (Bermuda) Ltd. and Tankers International LLC (TI) today announced the formation of a new company, VLCC Chartering Ltd ('the Company').

 
 
Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1140 sec (9 req/sec)