Trafigura, one of the giants in commodity trading, has recently launched a new project called Volare Shipping. The company has initiated a private program worth $500 million aimed at attracting foreign investors and plans to transfer this shipment to the Oslo Stock Exchange.
VLCC Fleet Development
The company Volare, established in Singapore, has started operations with six VLCC tankers and will soon add eight new tankers to its fleet by 2028. Thus, the total fleet of this company will reach 14 tankers. Trafigura will continue to act as the main shareholder and commercial manager of these tankers.
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It is expected that after completing the fundraising and receiving approval from Euronext Oslo Børs, the company's shares will be traded on the Oslo Stock Exchange on October 5, 2023. This fundraising will fully cover the commitments for building the new Volare tankers and will enable the company to continue its further development.
Fleet Construction Details and Features
Andrea Olivi, the executive director of Trafigura's shipping division, is leading Volare, and Alexandre Duff has been appointed as the CEO. The new fleet includes tankers that are larger than standard sizes and equipped with additional systems for insulation and heating of cargo tanks. These tankers also have the capability to use dual-fuel ammonia.
Since entering the large tanker industry in 2024, Trafigura has contracted at least 10 VLCC tankers at a Chinese yard named New Hantong, with deliveries of these tankers expected to continue until 2030. For example, the first tanker weighing 319,000 DWT was delivered on June 26, 2023, 40 days ahead of schedule.
This project is being implemented at a time when the tanker market is experiencing an unprecedented period in terms of demand and prices. According to reports, daily charter rates for VLCC tankers in the Gulf have exceeded one million dollars. This indicates an increase in volatility and demand in this market.
Trafigura is one of the companies benefiting from the disruptions in the oil market and announced last June that it continues to invest in the largest tanker fleet in the world. Due to the large scale of its operations, the company has greater flexibility in dealing with supply chain disruptions.
Finally, the Oslo Stock Exchange has seen a new wave of tanker companies this year. For instance, Capital Tankers, supported by Evangelos Marinakis, was introduced to the Euronext Growth Exchange and raised about $300 million with a fleet of 30 vessels.
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