John Fredriksen’s tanker giant Frontline has sealed employment contracts for seven of is vessels. The shipowner has entered into one-year time charter-out agreements for seven of its VLCCs.
The company said the charters will start during the period from late-January to April 2026 at a rate of $76,900 per day per vessel.
Lars H. Barstad, chief executive officer of Frontline Management AS, commented: “We are in unprecedented times, and these are charter-out-levels not seen for decades. Frontline remains largely spot exposed after these contracts become effective, retaining upside in one of the most volatile markets in the world.”
The charters come just weeks after John Fredriksen’s tanker company unveiled a sweeping VLCC fleet reshuffle.
The tanker owner confirmed a deal to acquire nine latest-generation scrubber-fitted VLCC newbuildings from an affiliate of Hemen Holding Limited, the company’s largest shareholder, for an aggregate purchase price of $1,224.0m.
Of these nine vessels, six are currently under construction at the Hengli shipyard and three at the Dalian shipyard in China.
The delivery schedule for the vessels is attractive, Frontline said, with seven vessels due for contract delivery during 2026, commencing in the third quarter, one vessel expected in the first quarter of 2027 and the final vessel anticipated in the second quarter of 2027.
According to Frontline, the payment schedule for these acquisitions is weighted towards delivery, with the largest portion of the instalments due upon delivery of each vessel. As it is reported, the company intends to finance this acquisition with cash and long-term debt financing.
The acquisition remains subject to certain closing conditions, in line with industry standards.
