Stena Sonangol Suezmax Pool

Stena Sonangol Suezmax Pool is a joint venture between the tanker owner Stena Bulk and the Angolan energy company Sonangol.

Risk Management

With market volatility, a pool participant’s shipping risk is spread across the entire pool fleet, thus greatly reducing the fluctuations that come with a fast-changing market.

Stena Sonangol Suezmax Pool

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Stena Sonangol Suezmax Pool

 

The Stena Sonangol Suezmax Pool is comprised of vessel Owners and supports Chartering services who wish to leverage their position through spot market fluctuations. The Pool absorbs some of the market volatility risk by spreading it over several vessels that trade on the open spot market.

Risk Management

With market volatility, a pool participant’s shipping risk is spread across the entire pool fleet, thus greatly reducing the fluctuations that come with a fast-changing market.

Market Intelligence

Through their resources to obtain market data, Stena Sonangol is able to quickly assess current market conditions and in turn make quick effective decisions.

Cargo Access

Stena Sonangol has continuously developed and maintained close customer relationships. This has helped to establish cargo agreements allowing for high utilization of the fleet.

 

Ship Access

For a cargo owner a ship put in the Pool gives access to the whole Pool fleet.

Worldwide Coverage

The Pool has offices in Houston, Gothenburg and Singapore. In addition, Stena Bulk and Sonangol provide the Pool with global resources and support.

Superior Service

Pool participants are able to utilize our commercial expertise and can feel confident that their ships are being traded and operated with high standards and in the owner’s best interest of reaching each ship’s earning potential.

 

Fundamentals of the Pool

The Stena Sonangol Suezmax Pool is comprised of vessel Owners and supports Chartering services who wish to leverage their position through spot market fluctuations. The Pool absorbs some of the market volatility risk by spreading it over several vessels that trade on the open spot market.

To achieve this all vessels in the Pool are assigned Pool points to ensure a neutral and equitable system for the net revenue distribution which can:

  • readily be described and is transparent to vessel owners
  • be used to evaluate new vessels entering the Pool

 

Net revenue distribution is defined here as pool freight revenue for any given period less all voyage costs expenses.

The fundamentals behind this system, developed by Richardson Lawrie Associates (RLA), is that it 'values' vessel characteristics from the perspective of their impact on net voyage earnings in each market sector measured against benchmark voyages. All vessels are 'traded' on all routes within each market or market sector to ensure that relative strengths and weaknesses are captured. Generally, data is derived from a trading period of approximately one year and reviewed every six months.

The results from the relative earnings assessments are thereafter allocated weightings to the individual routes used. The weightings are based on trade volumes, fixture quantities and the actual or prospective business profile. Pool points for each vessel, or each class of vessel, is derived from this part of the Model. The pool points are used within a formula that provides the 'net revenue distribution factor' for each vessel or class of vessel. The distribution factor is used to provide the allocation of income for each given vessel prior to deduction of any pool management fees.

This system ensures that over time the Pool participants benefit from the Pool’s overall performance while reducing the impact of market volatility.