Monday, June 6, 2016

Major Crude Oil Tanker Shipping Groups Form Joint Venture

43 Suezmax Vessels Under One Chartering Banner
Shipping News Feature
BELGIUM – US – WORLDWIDE – Last week saw Euronav NV, the independent crude oil tanker group join forces with US based ship management group Diamond S Management LLC and Bermudan headquartered Frontline Ltd, in a joint venture to be called Suezmax Chartering, the purpose of which is to create a single point of contact for cargo owners to access a large fleet of 43 modern Suezmax vessels, traded and operated on the spot market. Frontline will contribute 22 vessels to the joint venture, including 14 vessels on the water and 8 new builds as they are delivered.

The partners say a larger fleet will provide more flexibility and more options for cargo owners and also reduce voyage related expenses by optimising vessel selection based on proximity to cargoes, thereby reducing greenhouse gas emissions as a direct consequence of using less fuel for ballasting movements. Paddy Rodgers, CEO of Euronav, said:

“I am delighted to start this exciting marketing venture in the Suezmax sector with Diamond S and Frontline. All three companies’ management share a similar vision in bringing greater transparency to what is a highly fragmented industrial structure. We look forward to working closely with our partners in this initiative.”

Suezmax Chartering will operate from the existing offices of Frontline, Diamond S and Euronav and Robert Hvide Macleod, CEO of Frontline Management commented:

"I look forward to working with Diamond S. and Euronav on this important venture. We share the common goal of providing safe, timely and high quality service to our customers."