Trafigura, a major player in commodity trading, is starting a new tanker company called Volare Shipping Ltd. The goal is to raise around $500 million and list the business on the Oslo stock exchange, allowing outside investors to invest in its expanding fleet of Very Large Crude Carriers (VLCCs).
Volare Shipping will launch with six existing VLCCs and plans to add eight new ships by 2028. Trafigura will keep a majority ownership and will manage the fleet through its global shipping operations.
The VLCC market is currently experiencing strong conditions, with high demand for vessels and disruptions near the Strait of Hormuz pushing daily earnings on key routes to about $1 million or even higher.
Volare intends to conduct a private placement to raise about $500 million before its expected listing on Euronext Growth Oslo. If regulatory approvals go through and the capital is raised, trading is likely to start around October 5 with the ticker “VLCC.”
This funding will help support the company’s new building initiatives.
“Trafigura's expansion in the VLCC sector presents a great opportunity to invest further in modern vessels alongside external investors,” stated Andrea Olivi, Trafigura’s global head of shipping and chairman of Volare Shipping.
Olivi added that the company recognizes strong long-term prospects for crude oil transportation and sees Oslo as an ideal market for future fleet growth.
Once the new ships are delivered, Volare will operate a total of 14 VLCCs, with an average age of about three years by October 2028.
The new vessels will be slightly larger than typical VLCCs and will have upgraded tank coatings and heating systems for carrying a wider range of cargo. Additionally, they will feature dual-fuel technology, prepared for ammonia.
“After receiving the new ships, we will have a fleet of 14 modern VLCCs,” said Volare CEO Alexandre Duff. “The planned private placement will fully finance our current building program.”
Volare is registered in Singapore.
This launch allows Trafigura to have a separate capitalized entity for its VLCC fleet while still maintaining commercial control over the ships. Trafigura is one of the largest commodity shipping companies globally, managing about 500 vessels, including around 250 oil tankers.
The new structure will enable Volare to access public financial markets for future fleet expansion, providing investors with direct involvement in the VLCC sector.