Trafigura's fleet expansion kick-started by struggling yards

A fleet expansion for around USD 1.5 billion may sound like a lot. But the price for the 35 tankers headed for Trafigura's fleet is so low, that it is hard to doubt the upside, the commodity trader's Global Head of Wet Freight, Rasmus Bach Nielsen, tells ShippingWatch.

Rasmus Bach-Nielsen, Global Head of Wet Freight, Trafigura.

Looking at how the product tanker and crude oil markets have developed in recent years, at first glance it may seem like a high-risk investment to take on 35 new tankers on long-term leases at a newbuild price of around USD 1.5 billion.

Because, even though pace-setting shipping companies such as Scorpio Tankers and Frontline for months have been eying an imminent recovery, they are still waiting for it right now.

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