Rental income from shipping Saudi Arabian crude oil to Japan, the industry's benchmark trade voyage for supertankers, fell below the level Frontline Ltd., the largest operator of the ships, needs to break even on them.
Returns from the route fell 8.4 percent to US$29,953 a day. That's the first time since May 14 that income has dropped below the US$31,100 a day that Hamilton, Bermuda-based Frontline Ltd. said May 21 it requires to make a profit on the carriers.
From Taiwane News:
Frontline, one of my favorite dividend producer's is below 30 right now, this news may be already have been known and driving to the current decline, otherwise expect FRO to drop more...
"Rates are falling by the fixture and nobody knows when owners will hit the brakes," Per Mansson, managing director of shipbroker Nor Ocean Stockholm AB, said in an e-mailed note today. "We will soon get to levels where some owners have no interest in fixing and that means less offers for charterers requirements and hence a new floor will be set."
Income from the Saudi Arabia-to-Japan route has slumped 59 percent in the past 10 sessions, according to the exchange.
No comments:
Post a Comment