Fredriksen Bets $2.6 Billion New Ships Will Beat Glut: Freight
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John Fredriksen, the richest shipping investor, is spending $2.6 billion on the biggest fleet of fuel-efficient ships in history, betting that record energy costs and a global capacity glut won’t ease any time soon.
Frontline 2012 Ltd., in which he’s the biggest shareholder, said last week that its orders for new ships almost doubled to 53 after construction costs plunged for the vessels burning about 30 percent less fuel. Shares of the Hamilton, Bermuda-based company will gain 11 percent in 12 months, according to the average of six analyst estimates compiled by Bloomberg.