The Company's vision is to provide the customers with a flexible and reliable transportation service, and use this flexibility to develop unique industrial relations that will give material benefits to the customers as well as to the Company, shareholders and employees. Frontline's business strategy is primarily based upon the following principles:
- emphasising operational safety and quality maintenance for all of its vessels;
- complying with all current and proposed environmental regulations;
- outsourcing technical operations and crewing;
- achieving low operational costs of vessels;
- achieving high utilisation of its vessels;
- competitive financing arrangements; and
- develop relationship to main charterers.
A large portion of Frontline's vessels trade in the spot market. Spot market rates are typically higher than time charter rates to compensate for the lack of confirmed continual employment. After having delivered their cargo, spot market vessels typically operate in ballast (without cargo) until being rechartered. It is the time element associated with these ballast legs which Frontline seeks to minimise by efficiently chartering tankers. Frontline seeks to maximise earnings in employing vessels in the spot market or under time charters or under contracts of affreightment ("COA").
Increasing global environmental concerns have created a demand in the petroleum products/crude oil seaborne transportation industry for vessels that are able to conform to the stringent environmental standards currently being imposed throughout the world.