“We had thought the [dry bulk] market would pick up after 2014’ on account of demand starting to overtake a slowdown in tonnage growth, he explained. “But we may have to revise that now,” he added, specifically referring to Fredriksen’s intervention in the sector with a series of capesize orders in early 2013.
In its announcement yesterday Frontline 2012 revealed it held firm newbuilding orders for 53 ships worth nearly $2.6bn, suggesting it may have placed as many as 40 new orders since the beginning of the year. The company said it had further fixed-price options to declare in coming months, and was in discussion with other yards about further new orders. Newbuildings for delivery in 2014 and 2015 would be targeted, it said, along with a US listing “within two years”.
“Frontline 2012’s target is to position the company for an anticipated recovery of the shipping markets in the next two to three years,” the announcement stated. “In order to achieve this, the company follows the strategy of aggressive growth through placing large orders for new efficient tonnage at historically low prices with the main focus on crude tankers and dry bulk.”
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