The aims of the company are to create a larger fleet with more flexibility and more options for cargo owners and a single point of contact to access these benefits; to reduce voyage related expenses and thereby improve the net earnings (TCE) of the VLCCs operated by both owning companies through optimisation of voyages and to reduce carbon emissions as a direct consequence of using less fuel for cargo movements through fleet optimisation.
VLCC Chartering will have access to the combined fleets of Frontline and the TI Pool and will primarily identify the right ship for each cargo offered and on that basis select one ship to bid taking into consideration operational factors.
By reducing the fuel wasted by sailing too far, or too fast, to load a cargo, vessel net earnings can be improved by reducing bunker consumption, Frontline said
Improving net voyage returns to tanker operators and through them to providers of capital will support the raising of funds that are necessary to pay for the modification of the existing tankers in order that they may meet the requirements being imposed on the industry to reduce harmful emissions from ships whether from exhaust gas, or in ballast water.
VLCC Chartering will be jointly owned by the partners and the services provided by it will be sub-contracted to it by TI and Frontline Management using their existing offices. It will accept appointment as voyage charter manager for the VLCC fleets of Frontline and TI.