2020-07-20
Norwegian shipping king John Fredriksen is "very worried" that the spread of turmoil in the Chinese market may bring potential crises to the global shipping market.
John Fredriksen said in an interview with Bloomberg News in Oslo on Monday, “It seems that China’s problems are big and the situation is a bit serious, which is not a good thing for the global shipping market at least.”
Since the unexpected devaluation of China’s renminbi on August 11, the global stock market value has evaporated by at least 5 trillion US dollars, which has deepened global concerns about the world’s second economy. The global sell-off of high-risk assets has exacerbated the decline in commodity prices, which have fallen to a 16-year low, and emerging market currencies have depreciated sharply. Oil prices also hit their lowest level since 2009-Brent crude oil prices fell to US$42.95 per barrel; New York oil prices fell by US$2.21, or 5.5%, to close at US$38.24 per barrel, the lowest closing price since February 2009 .
John Fredriksen said: "For us, this situation is good for the crude oil ship market, but it has a negative impact on oil rigs."
In fact, under the background of the global shipping industry's downturn affected by the slowdown in China's economic growth, the tanker industry has bucked the trend and thrived. The reason is the increase in oil production. As a result, the number of oil transportation has also risen. Tankers are busy. Shipping companies that transport crude oil and refined oil also have a bargaining chip to obtain the highest daily rent for several years.
In the past year, the price of crude oil has doubled, and the drilling market is facing a serious challenge from the decline in demand from this oil-producing country. As oil demand declines, offshore oil exploration and production expenditures have fallen, and as new drilling platforms have entered the market, there has been a serious oversupply situation. John Fredriksen predicted that "the drilling platform market will undergo a major adjustment." "In the next year, there will be a large-scale merger and integration in the drilling platform market."
On the same day, on the Oslo Exchange, Frederickson’s Frontline company fell 15%, and his Seadrill company’s stock price fell 14%.
John Fredriksen is 71 years old and has a net worth of 10.2 billion US dollars. Its industries range from oil rigs to fish farms.
John Fredriksen is the world's largest tanker ship owner. He is a recognized legend in the industry from scratch. His keen judgment on the market and the ability to grasp opportunities are unmatched.
Kristin Holth, head of shipping business at DNB Bank in Norway, once commented on John Fredriksen: "I think the most worth mentioning is his ability to interpret the market and grasp the timing of entry and exit, as well as his business talent and risk control. In addition, he can Skilled in using various methods of the capital market, this gave him and his company an unparalleled advantage."
