Frontline Says Tankers Still ‘Vulnerable’; Shares Fall
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Frontline Ltd., the world’s biggest operator of supertankers, said the market is still “vulnerable” after almost five months of unprofitable rates. The shares had their biggest intraday decline in 2 1/2 months.
Shipowners cut speeds and idled vessels this year as spot rates plunged as much as 73 percent from January to $23,859 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.