Major tanker owners Frontline, Euronav and Diamond S Shipping have formed Suezmax Chartering, a joint venture through which the companies will trade a combined fleet of 43 suezmax crude tankers in the spot market.
Frontline today said it will contribute 22 vessels to the joint venture, including 14 live vessels and eight newbuildings after they are delivered.
“A larger fleet will provide more flexibility and more options for cargo owners and also reduce voyage-related expenses by optimising vessel selection based on proximity to cargoes, thereby reducing greenhouse gas emissions as a direct consequence of using less fuel for ballasting movements,” Frontline said.
Suezmax Chartering will operate from the existing offices of Frontline, Diamond S and Euronav.
“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,” said Paddy Rodgers, CEO of Euronav, in a release.
Robert Hvide Macleod, CEO of Frontline Management, said the joint-venture partners share “the common goal of providing safe, timely and high-quality service to our customers”.
Euronav terminated its suezmax joint venture with Bretta Tanker Holdings on May 20.