John Fredriksen’s shipping company Frontline has decided not to buy four more tankers from the subsidiary of Singaporean commodity trader Trafigura.
In August 2019, Frontline reached an agreement with Trafigura Maritime Logistics to acquire ten of its Suezmax tankers, with two separate options to acquire additional units.
The initial option, that expired on September 12, was extended to September 18, however, Frontline elected not to exercise this option and as a result the second option for another Suezmax duo has been terminated.
“We added significant scale through our acquisition of 10 Suezmax tankers from Trafigura, and we are satisfied with our exposure to this asset class,” Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS, said.
“We are pleased to see that the tanker market is tightening and earnings increasing in all our segments. Our market view remains positive and supports further fleet growth, but our main focus will be on VLCCs, where we will seek to add exposure.”