Trader Trafigura has snatched a key VLCC chartering name from energy major Shell as part of moves to grow its chartered fleet.
Tanker market sources told TradeWinds that Giacobbe Segale resigned from his position on Shell’s chartering team and has taken up a post with Trafigura.
Segale, a former BRS broker, was described by one VLCC expert as “a very smart guy” and “a bit of a rising star” at Shell, so his resignation from the major’s team initially surprised some in the industry.
Brokers said Shell started a process to hire new tanker chartering staff about a year ago but later dropped this. One broker said the energy major currently looks “light” on experienced personnel.
Others said Shell is now less keen on expanding tanker chartering operations after laying out its ambition to become a net-zero emissions energy business by 2050 or sooner.
“Shell is [heading] down the green energy road,” one broker said.
Both Shell and Trafigura declined to comment on Segale and their chartering desks. TradeWinds has approached Segale for comment.
Environmental push
In its shipping decarbonisation strategy, Shell is backing hydrogen, fuel cells and the more immediate use of biofuels and LNG.
This month, Shell, which has around 15 VLCCs on time charter, signed seven-year charter deals with three shipowners on 10 dual-fuelled VLCC newbuildings that will use LNG.
Trafigura, which set its first emissions reductions targets in January, has also been growing its chartered VLCC fleet by picking off vessels from the market.
Brokers said the company has fixed at least 20 vessels on periods of between one and three-year time charters, with options to extend the hire.
They said the trader has indicated that it wants to push this number up to 30 VLCCs.
Trafigura's ambition emerges as period rates continue to languish at multi-year lows but remain significantly higher than spot earnings.
But some are puzzled by the trader's appetite, particularly in the short term, with one broker saying it could be “the mother of all gambles”.
He said it “speaks volumes” when other rival traders such as Vitol are not following the same strategy.
Trafigura plans to reduce its operational greenhouse gas emissions by at least 30% by the end of financial year 2023, compared to 2020 levels.
Traders and oil companies have been fixing more VLCC market tonnage, which brokers say is wresting control away from traditional shipowners.
