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This has received much more interest than I thought it would. I received a comment via email that I thought I would share with the group:

[quote]Your article says Frontline themselves hav chartered 20-25 vlccs for storage. They have not. A total of about 20-25 vlccs have been chartered for storage fomr several owners, not just Frontline. I dont know but a reasonable guess is they have done 4 or 5 ships. You are putting out bad information to the market.

From a Greek Shipping Company Exec

Actually, my article said, [quote]Frontline has been hired for floating storage [i][b]for up to[/b][/i] 50 mn barrels of oil, or roughly 20 to 25 oil supertankers over the past two months[/quote]

Semantics, my dear friend. Semantics. It was worded this way because we really don't know exactly how much they were hired for, but even if we assumed they were hired for the full amount quoted, it still would not offset their shipping revenue losses. I was trying to prove a point!

I then replied to the shipping guy, [quote]This information was sourced from Bloomberg. I will look into it to see if they were ambiguous or in error, and if so I will issue a correction. Thank you for the heads up. If you desire, I will credit you for the correction if it holds true. In addition, be aware that my reports on Frontline were bearish, so if they only chartered 4 or 5, in lieu of 20-25, then it simple adds credence my analysis.[/quote]

I was actually trying to be polite and politically correct, for the wording in the blog post was not inaccurate as far as I can tell, but I figured it was worth investigating. The shipping guy writes back:

[quote]Of course its correct. So Bloomberg is an expert on supertankers? Why dont you just call frontline yourself before spewing 3rd hand falsehoods? Storage rates are paying $55-60,000. The current spot market is paying less and falling. They would be happy to find more storage at fixed and guaranteed high rates but they cannot satisfy everyone requirement. yes you are correct about one thing, everyone is bearish. that is an obvious fact for 6 months[/quote]

Okay... Well, we agree to agree the company will run into problems? I'm getting rather pissed by now. I reply, [quote]I think you are getting a bit rude and carried away. I quoted a reputed media source and commented on it. Spewing? A tad bit uncalled for. If there is an error, it will be corrected.[/quote]

To the guys credit, he comes back and apologizes - well sort of. It still seemed a bit rude, particularly when he seems to have misunderstood the quote. Hired for up to, is not the same as hired for: [quote]Thank you Reggie,

I am sorry. I get upset when mis information is regurgitated and mindlessly passed like a virus from one incorrect source to another and can mislead investors. It's best when people stick to what they know, whatever that may be. I should not have said Spewed, I should have said RE-spewed. Bloomberg is a reputed financial market analyst. NOT a reputed oil tanker analyst.

However even they were correct in re-quoting and saying 20-25 ships were contracted in total. YOU said 20-25 FRONTLINE ships were contracted. [i][u][b][quote]No I didn't, you misread and are misquoting me. I said they were contracted for "up to" 20 - 25 ships[/quote][/b][/u][/i]

Hmmm! Methinks there may be some softening still, in these markets.
Now, what does this mean to my subscribers? Well....
Frontline has been [u][i][b]hired for floating storage for up to[/b][/i][/u] 50 mn barrels of oil, or roughly 20 to 25 oil supertankers over the past two months.

Kind regards,
Greek Shipping Magnate

p.s. if you want to credit me with the correction, that is fine.

So, I had my guys dig into this anyway, and this is what they found:

[quote]We have looked into Frontline regarding charter of vessels for floating storage purpose in reference to comment made by a reader. According to Jens Martin Jensen, acting managing director and chief executive of Frontline, around 25 VLCCs have been hired for floating storage over the past two months. Although Jens Martin Jensen does not specifically mentions whether he was referring to 25 vessels charted for industry or Frontile, the article below from Factiva (besides several other articles) seem to suggest that the reference was made to Fronline.

Also in the article referenced by us our focus was more on unsustainability of floating storage demand for oil tankers because of decrease in arbitrage opportunity due to contango structure of oil commodities than number of exact vessels used as floating storage by Frontline. [/quote]

We didn't bother to contact Frontline for the exact number that they were contracted for, primarily because it doesn't matter. Their best case scenario still doesn't bode very well for them. Below are the links referred to in the communique above: