Fredriksen Sees Tanker Market Weak For At Lease 2 More Years

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June 5, 2013

Front Shanghai. Image (c) Frontline

reuters logoOSLO, June 5 (Reuters) – Shipping magnate John Fredriksen sees no quick turnaround on the market for crude oil tankers, but is more optimistic about the outlook for other arms of his shipping empire, he told Reuters on Wednesday.

Oslo-born Fredriksen, one of the world’s richest men, controls one of the world’s largest rig companies, Seadrill, as well as shipping businesses Frontline, Frontline 2012 and Golden Ocean.

“The oil tanker market, it is pretty bleak over the summer. I do not see any special things before at least another couple of years. At least, for the crude oil tankers. That is not too optimistic,” he said.

He added however that the markets for dry-bulk and oil products shipping looked less gloomy, and that the blooming drill rig market could flourish for another 3-5 years.

The global shipping sector has seen four years of crisis as vessels purchased in an order binge before 2008 hit the waters, creating overcapacity as demand remains anaemic.

Regarding Marine Harvest’s ongoing bid for rival salmon farmer Cermaq, Fredriksen said he “had not yet decided” whether to raise his offer, as some investors have been expecting.

He said he had not spoken to the Norwegian trade and industry minister, Trond Giske – Norway is Cermaq’s main shareholder – and was not planning to do so. (Reporting by Gwladys Fouche, writing by Victoria Klesty)

(c) 2013 Thomson Reuters, Click For Restrictions

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