Frontline Management, Tankers International Form VLCC Chartering

(RTTNews) - Frontline Management (Bermuda) Ltd. (FRO, FRO.L) and Tankers International LLC Wednesday announced the formation of a new company, VLCC Chartering Ltd.

The new company aims to create a larger fleet with more flexibility and more options for cargo owners and a single point of contact to access these benefits.

Its goals include reducing voyage related expenses and thereby improving the net earnings or TCE of the Very Large Crude Carriers or VLCCs operated by both owning companies through optimization of voyages.

The company aims at reducing carbon emissions as a direct consequence of using less fuel for cargo movements through fleet optimization.

VLCC Chartering will have access to the combined fleets of Frontline and the TI Pool and will primarily identify the right ship for each cargo offered and on that basis select one ship to bid taking into consideration operational factors.

By reducing the fuel wasted by sailing too far or too fast to load a cargo, vessel net earnings can be improved by reducing bunker consumption.

VLCC Chartering Ltd. will be jointly owned by the partners and the services provided by it will be subcontracted to it by TI and Frontline Management AS.

The Company will accept appointment as voyage charter manager for the VLCC fleets of Frontline and TI.

The company plans to commence operation on October 6 from the existing offices of Frontline Management AS and TI.