Frontline sees higher rates as oil tankers avoid Red Sea

Norway-based oil tanker group Frontline FRO said on Monday its vessels will avoid passages through the Red Sea and the Gulf of Aden in the time ahead, due to attacks on vessels in the area, boosting the rates customers must pay for crude transport.

"War risk insurance premiums are on the rise naturally, but as vessels gets re-routed around Africa shipping supply will be tighter as cargoes travel longer. That would put rates under a strong upwards pressure," CEO Lars Barstad told Reuters.