Cosco Shipping Energy Transportation (CSET), one of the world’s largest crude tanker owners, has begun a trial operation of its VLCC pool that includes more than 50 vessels.
The project is part of Shanghai and Hong Kong-listed CSET’s stated efforts to enlarge shipping capacity, maximise profits from tanker operations and become a more influential industry player.
CSET has put its 52 VLCCs into the pool and it hopes to attract tonnage from suitable partners
Source close to the company
“The pool’s operation is at the trial stage,” a source close to the company said. “CSET has put its 52 VLCCs into the pool and it hopes to attract tonnage from suitable partners.
Aiming for growth
“The company is aiming to have more vessels in the pool at a later stage. [But] there is no firm timetable for its development.”
Chinese state-linked energy firm ZhenHua Oil is said to have committed its time-chartered tonnage to the pool. CSET was not able to comment on this matter.
CSET, which is part of state conglomerate China Cosco Shipping, has been streamlining internal operations to improve efficiency in recent months, according to its website.
While recognising that officially launching a VLCC pool would require “the highest management and marketing skills”, the company said pool operations could minimise risks and maximise operational flexibility amid fleet expansion.
Clarksons' data shows CSET is scheduled to take delivery of six VLCCs from compatriot yards during 2020 and 2021.
New department
TradeWinds understands CSET is operating the pool via a newly established internal VLCC department rather than a separate entity, so the tanker market has yet to feel much difference commercially.
“I don’t see much impact so far,” a major tanker charterer said. "CSET is still marketing their own ships directly."
While established and owned by shipowners in some instances, pool managers tend to operate independently from their shareholders in tanker markets.
Euronav, the only company in the world that owns more crude shipping capacity than CSET, is a major contributor to Tankers International for management of its spot tonnage.
However, the Tankers International pool — which also has some vessels from International Seaways, Ridgebury Tankers and Oak Maritime — operates as an independent entity.
Navig8 Group, another major pool manager, has been managing CSET’s 298,195-dwt Cospearl Lake (built 2008) and 322,860-dwt Xin Lian Yang (built 2014) in its VL8 pool since the fourth quarter of 2018.
CSET does not plan to withdraw the two VLCCs for its own pool operation, according to Chinese sources.
