Trafigura, the commodity trading giant, is introducing its growing fleet to foreign investors with the launch of a new tanker company called Volare Shipping Ltd. and a plan to raise approximately $500 million. This new company will start operations with six very large crude carriers (VLCCs) currently at sea, and eight new tankers are expected to be delivered by 2028.
Details of the Launch of Volare Shipping
Trafigura will retain a majority stake in this new company and will manage the commercial operations of the fleet through its global marine business. This launch comes at a time when the VLCC market is currently experiencing one of its strongest conditions in recent years. While access to ships has been limited, disruptions in the Strait of Hormuz have led to increased revenues on routes, reaching in some cases over $1 million per day.
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Financial Plans and Fleet Outlook
Volare has planned a private placement of approximately $500 million, which will take place before a proposed listing on Euronext Growth Oslo. Subject to regulatory approval and completion of fundraising, trading is expected to begin around October 5 under the symbol “VLCC.” This private placement will fully finance the current plans for new tanker construction.
Andria Eliov, Global Head of Transportation at Trafigura and President of Volare Shipping, stated that Trafigura's expansion in the VLCC sector represents a clear opportunity for further investment in modern ships, along with foreign investors. She pointed to long-term fundamental support for crude oil transportation and assessed the Oslo capital market focused on maritime transport as a platform for fleet expansion.
After the delivery of all eight new tankers, Volare will own 14 VLCCs with an average age of about three years. The new ships will be slightly larger than standard VLCCs and will be equipped with additional coatings and heating systems that allow them to carry a wider range of cargoes. They will also have dual-fuel capabilities ready for ammonia.
Alexander Duff, CEO of Volare, stated that after the delivery of the new ships, we will have 14 modern VLCCs. The intended private placement will fully finance our current construction plan.
This launch provides Trafigura with a separate investment vehicle for its own VLCC fleet while keeping the ships under its commercial control. Trafigura manages one of the largest commodity transportation businesses in the world, overseeing nearly 500 vessels across various sectors, including about 250 tankers.
This structure also allows Volare to access public capital markets for future fleet growth while directly linking investors to the VLCC sector.
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