Vision and business concept
To always be the preferred carrier and business partner within tanker transportation.
Our business concept
To create value for customers and shareholders by providing safe, sustainable and reliable tanker transportation based on innovation and performance.
To make timely investments in vessels and gain financially from fluctuations in their values.
Daily ship operation
Income from daily operation is mainly derived from compensation for contracting either through the spot market or time charters. Freight rate levels for spot charters are completely variable and based on supply and demand at any given time. With time charters, on the other hand, income consists of a pre-agreed time charter rate that applies throughout the negotiated charter period. The rate is determined by the market situation at the contract’s inception and the contract length. The principal costs for a shipping company are voyage costs (mainly fuel and port dues), daily costs (mainly crew, insurance and maintenance) and capital costs.
Purchases and sales of vessels
Tanker shipping is capital intensive in nature, with high values attached to the vessels themselves. The prices of both new and second-hand tonnage vary according to the market and the ship’s condition. The ability to optimise the timing of purchases and sales is therefore critical to the overall profitability of the business.