Frontline Management (Bermuda) Ltd. and Tankers International LLC (TI) today announced the formation of a new company, VLCC Chartering Ltd ('the Company').
The aims of the Company will be:
*to create a larger fleet with more flexibility and more options for cargo owners and a single point of contact to access these benefits;
*to reduce voyage related expenses and thereby improve the net earnings (TCE) of the Very Large Crude Carriers (VLCCs) operated by both owning companies through optimisation of voyages.
*to reduce carbon emissions as a direct consequence of using less fuel for cargo movements through fleet optimisation.
VLCC Chartering will have access to the combined fleets of Frontline and the TI Pool and will primarily identify the right ship for each cargo offered and on that basis select one ship to bid taking into consideration operational factors. By reducing the fuel wasted by sailing too far or too fast to load a cargo, vessel net earnings can be improved by reducing bunker consumption.
Reducing fuel consumed to move cargoes through optimisation will directly proportionally reduce the fuel emissions which are the primary source of pollution from ships.
Improving net voyage returns to tanker operators and through them to providers of capital will support the raising of funds that are necessary to pay for the modification of the existing tankers in order that they may meet the requirements being imposed on the industry to reduce harmful emissions from ships whether from exhaust gas or in ballast water.
VLCC Chartering Ltd. will be jointly owned by the partners and the services provided by it will be subcontracted to it by TI and Frontline Management AS. The Company will accept appointment as voyage charter manager for the VLCC fleets of Frontline and TI and will work to deliver the improvements outlined above.
It is intended that the Company will commence operation on 6th October 2014 from the existing offices of Frontline Management AS and TI.
