Re: Frontline to terminate charter-in contract of OBO carrier
These OBOs are all old ships (built 1991 or 1992 -- 20 years old).
I believe in prior FRO conference calls, they've said that these ships trade only in the bulk market (and have not traded in oil probably in all of the time that SFL has owned them), under current long-term contracts, at nicely profitable rates.
So since those contracts were probably put into place back about 5-8 years ago, I am not surprised in the least that these ships are being sold off, unit by unit as the contracts are completed.
I would guess that the ships will go to the cutters, but I have not seen any confirmation on this.
Too bad that these otherwise profitable charters are gone.