Suezmax Chartering Joint Venture Announced
Shipping companies Euronav, Diamond S Management and Frontline have formed a commercial joint venture involving 43 Suezmax vessels, including newbuildings, operated on the spot market. The joint venture will be named Suezmax Chartering and will commence operation immediately.
A larger fleet will provide more flexibility and more options for cargo owners, reduce voyage related expenses through optimization of voyages and thereby reduce greenhouse gas emissions as a direct consequence of using less fuel for cargo movements, said Euronav in a statement.
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.”
On May 19, Euronav terminated a Suezmax joint venture with Bretta Tanker Holdings. The joint venture covered four vessels.
Frontline will contribute 22 vessels to the joint venture, including 14 vessels on the water and eight newbuildings as they are delivered.
Frontline, one of the world's biggest independent tanker groups, had a strong first quarter and said this week that it saw strong tanker demand going forward.
“Record crude production, and oil prices which are expected to be relatively low, coupled with steadily increasing demand for crude oil, have significantly tightened the crude tanker market and continued to generate strong freight rates,” the group said.