What we do
We are physical traders and we move energy from markets that are in surplus to markets that are in deficit, across borders and oceans. We move it competitively and efficiently, fully conscious of our responsibility to manage all our operations safely and with due care for the environment.
A world class shipping operation is an essential part of the management of our supply chain, underpinned by the depth of operational experience that exists across the shipping team.
Where we do it
We have commercial and operational offices in five of the world’s most strategic shipping locations: London, Singapore, Houston, Geneva and Bermuda giving us a leading strategic and logistical edge in a global market where time zones blend into one.
How we do it
Shipping markets are highly volatile and nowhere are the principles of supply and demand more relevant. Through close contact with our trading groups and utilization of our own market intelligence, Vitol has the best possible opportunity to anticipate worldwide freight movements.
Commercial and operational control of shipping allows the trading groups to provide ultimate flexibility to their customers as well as offering risk management solutions for the groups’ freight exposure.
Within Vitol, the shipping team is not only a service provider, transporting commodities in the safest, most efficient and cost effective way possible but is a competitive business in its own right.
Vitol contracts vessels using various financial structures and for varying periods from a few weeks to a number of years, that are underpinned by the core cargo flows of the trading groups, however, these contracts need to be commercially viable in their own right. Contracts will vary in terms of structure and period from a few weeks to many years. The aim of the shipping group is to maximize the utilisation and thereby the returns, from these assets under our commercial control. Shipping profitability is maximized and exposure is itself managed using a range of third party and internal cargoes, contracts of affreightment and derivatives.
The portfolio of cargoes and shipping activity is extensive and includes crude oil, oil products, chemicals, dry cargo, such as coal and sugar, LPG and LNG. We are expanding our activities in the dry cargo market where, as with every other Vitol business, market intelligence is key to our success.
Vitol is the largest independent charterer of product tankers in the world, shipping nearly 400 million tonnes of crude oil and products in 2011. At any one time there are over 200 tankers on the water performing voyages for Vitol in either a short term (spot market charter) or long term capacity. In 2011 we completed almost 5,460 voyages, compared to 5,300 in 2010.
Nowhere are the core skills that underpin all of Vitol’s activity more prevalent than in our shipping business: a combination of global reach and local understanding, leadership and partnership, speed and flexibility results in a highly efficient and successful business.
5,460 Voyages in 2011