Tanker Seizures Seen Boosting Rates as Oil Companies Vet Owners
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Increasing seizures of oil tankers will help rates recover from record lows as oil companies and traders have to avoid struggling owners, according to Frontline Ltd., the company led by billionaire John Fredriksen.
Ten to 20 tankers risk being arrested by lenders and some already have been, Jens Martin Jensen, chief executive officer of Hamilton, Bermuda-based Frontline’s management unit, said on a conference call today. Oil companies and traders have to do more due diligence and avoid distressed owners, he said.