Frontline Declines Oil Cargoes After Rout in Tanker Rates

Bloomberg reported that Frontline Ltd. rejected some oil cargoes amid a rout in vessel rates. The company is “selectively” offering tankers for charters and the market is in a state of panic because excess ship supply brings down the cost of charters.

As quoted in the market news:

Earnings for very large crude carriers, the industry’s biggest ships, plunged 75 percent from a year earlier to $11,624 a day, according to figures from Clarkson Plc (CKN), the world’s largest shipbroker. A surplus of the supertankers seeking charters in the Persian Gulf averaged 21 percent during the first quarter, the largest glut since 2009, according to market surveys by Bloomberg.

Click here to read the full Bloomberg report.