Norwegian shipowner John Fredriksen is proceeding with an all-time largest and the most aggressive newbuilding program in history.
Fredriksen-led Frontline 2012 has booked a total of 38 newbuildings worth around $1.5bn within the recent three months and is said to be in the pipeline to add more orders for crude oil carriers, product carriers, LPG carriers, bulkers, etc.
Frontline 2012 today has 53 newbuildings on order worth almost $2.6bn, which seems soon to be expanded by options being exercised and new contracts. Of current orderbook, only $315m has been paid, showing the trend of "Heavy-tail" payment terms these days.
As for orderbook by vessel type, Frontline is believed to have 12 MR PCs, six aframax tankers, eight VLGCs, three VLCCs, capesize series, etc.
Frontline 2012 said "Frontline 2012's target is to position the company for an anticipated recovery of the shipping markets in the next two to three years," and added "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."
The company revealed that the main focus will be on crude tankers and dry bulk with delivery slated for 2014-2015.
Meanwhile, Arctic Securities said Frontline 2012 could see its fleet pass 100 vessels given the rapid expansion this year.