RSVP to the Pool Party

Depressed freight rate conditions in the early part of the last decade saw the creation of the first tanker pools. By consolidating assets and commercial operations, individual ship owners streamlined chartering functions, bunker purchases and other redundant efforts in order to reduce costs. By joining a tanker pool, small-fleeted shipowners were afforded participation in elusive chartering opportunities, such as coveted contracts of affreightment with large oil companies that were traditionally covered by larger competitors. Throughout the past decade, tanker pools have gained popularity across all tanker segments. The birth of new pools sparked competition as pool managers sought to attract new tonnage through unique commercial visions. Last week, Ocean Tankers announced its intended departure from Maersk’s Nova Tankers pool raising some questions about the popularity of tanker pool participation. With market fundamentals historically weak, shipowners and pool operators are now faced with a new set of factors influencing tanker pooling decisions. Download here