China’s first VLCC pooling venture, China Pool, has officially launched operations in Beijing attracting both domestic and international interest.
China Pool was initiated by Cosco Shipping Energy Transportation, the tanker operation unit of Cosco Shipping Group, with the tagline of “We Pool, We Win”
At the China Pool launching ceremony, Sinopec and Zhenhua Oil signed the agreements to join China Pool, while Landbridge Group, Navios and Wah Kwong Shipping signed letter of intent to join the pool.
Different from the traditional shipping business model, China adopts scaled fleet operation and professional company operation to realize unified management of pool fleet, which could improve overall fleet operation efficiency and increase revenues to the pool owners.
China Pool is the first and also the only VLCC Pool venture in China, which currently has 42 VLCCs, totaling in 12.89m dwt.
VLCCs are currently enduring a difficult market and pooling arrangements have more value in a down market.
Source: Seatrade Maritime News