Oft Talked About, The Two-Tiered Market Has Arrived

Despite claims that the COFR issue has moved “off the political agenda” and on to the commercial business agenda,” a wait-and-see attitude among shipowners persists. Some owners are still determined to cause a crisis. But these are not the ones trading to the US. Those who are trading are increasingly concerned

Still, neither Bergesen nor Bona, Wilhelmsen, nor Eletson has formally decided how or when to obtain COFRs (certificates of financial responsibility required for US trade and issued by the US Coast Guard). A lot of strategizing is going on and, to date, Bergesen DY AS is seriously considering Opaclub, while Eletson is leaning toward First Line.

Only a few select US companies like Mobil Corp. – whose mid-September approval for certification based on a guaranty through a newly-formed subsidiary, Marine Guaranty, created waves – have COFRs in hand. Trickling through were also US tanker-owners like Sabine Transportation Company, Kirby Tankships, Sun Transport and OMI Corp. This is because none of viable options for foreign shipowners are up and running.

This is only an excerpt of Oft Talked About, The Two-Tiered Market Has Arrived

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