As the maritime industry faces uncertainties in 2024, including geopolitical tensions and environmental regulations, adaptability remains crucial for success. The very large crude carrier (VLCC) sector is particularly challenged, prompting many owners to join tanker pools for better resilience.
Tankers International, based in the UK, operates the largest VLCC pool, currently comprising 40 vessels, with 29 equipped with scrubbers. CEO Charlie Grey noted the company’s commitment to sustainability through initiatives like trialing biofuels and preparing for the EU Emissions Trading System (ETS), introduced in 2024.
The pooling model allows members to meet Carbon Intensity Indicator (CII) ratings while maximizing commercial performance. By sharing high-paying voyages among vessels, Tankers International can balance profit with environmental impact, aiding members in navigating compliance challenges.
Grey emphasized that the pooling model supports cash flow stability and facilitates investment in emissions reduction technologies. With many VLCCs aged over 15 years, Tankers International faces concerns about future tonnage deficits, particularly as global demand for oil rises—even amidst a low orderbook for new ships. Recent increases in VLCC orders signal opportunities for growth, underlining the importance of pooling in the evolving market landscape.
Geopolitical dynamics also influence the VLCC sector. Factors such as Russian oil displacement and OPEC+ strategies reshape trade patterns. Despite lower rates, global oil demand continues to rise, especially in China, where the economy is transitioning toward petrochemical production.
The drive toward digital transformation and decarbonization represents both challenges and opportunities. Grey highlighted Tankers International’s efforts in data analysis to optimize vessel performance, ensuring compliance with CII and Energy Efficiency Existing Ship Index (EEXI) standards. Their proprietary fixture app provides valuable insights into efficiencies and emissions, allowing partners to make informed decisions that align with environmental goals.
In summary, while VLCC operators navigate immediate geopolitical and regulatory challenges, the pooling model offers flexibility, enhancing compliance and promoting sustainable practices. Tankers International remains strategic in addressing these challenges, adapting practices and technologies to align with the industry’s future demands.
