The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Shipping tid-bits 4/21/13 Date:  4/21/2013  9:17 PM
Author:  Hohum777 Number:  421147 of 479745


Considering the number of shipping entities owned/controlled by John Fredriksen, is there a possibility that (in the event of a downturn) a "good firm"/"bad firm" scenario could take place? As they cross lease, costs could be transfered to a firm which would then "go down with the ship".


Certainly a possibility. SFL has vessel tie-ins with other Fredriksen backed entities.
The folks at Frontline (FRO) actually lease 22 of the SFL vessels, and manage the chartering
arrangements for a majority of the others. FRO's current problems have a lot to do with tanker
rates for the VLCC category, and the fact th