Platts: New Planned Global VLCC Pool May Not Push Up Freight Levels

“The teaming up of four large shipowners to form a new global VLCC pool has evoked mixed feelings among market participants. But while many see the move as a bullish factor for the market, they add that the move may not ultimately have a big impact in pushing up freight rates on supertankers. . . According to a recent research report by shipbroker Poten & Partners, the economies of scale and increased market presence achievable through pooling have helped companies reduce costs, streamline operations, and improve information flow in a troubled market. ‘While some speculate that further consolidation of the VLCC market is a bullish signal for freight rates, strength in numbers is not likely to be a quick fix against flabby fundamentals,’ the Poten report said.”