Box rates hold firm as bulker, tanker demand wobbles

CONTAINER freight rates are looking robust with transoceanic agreements holding up, as industry concerns grow over bulk and tanker rates, according to the largest independent tanker group, Frontline of Norway.

The Bermuda-based company is forecasting a downturn over the next few months, despite posting improved second quarter figures. The company said in a statement that it would produce "a materially lower result in the third quarter," reports the UK's Handy Shipping Guide.

With one of the world's largest fleets of VLCC and suezmax tankers, and suezmax bulkers, Frontline recently laid up its ships in the face of overcapacity in the sector. The group is said to apportion the most of its tonnage to the spot market where rates are typically higher than time charter rates to compensate for the lack of confirmed continual employment.

The report added that the head of Frontline, John Fredriksen, was last year involved in controversy after it was reported he intended to venture into a new container business that would expand by purchasing cheap vessels, a project he allegedly withdrew from to avoid conflict of interest.
(Source:www.schednet.com)