Trafigura, one of the world’s largest commodities trading companies, is set to launch a new business on the public market for the first time, aiming to capitalize on elevated tanker shipping rates linked to ongoing conflict in the Middle East. The Swiss-based firm plans to conduct a private placement of shares in Volare Shipping, a recently established unit that owns and operates a fleet of oil tankers. The capital raise targets $500 million ahead of an anticipated listing on the Oslo Stock Exchange scheduled for early next month.
Volare Shipping currently manages six large crude carriers (VLCCs) and has eight additional vessels on order. The funds raised through the share placement are intended to finance further acquisitions or new orders of large crude carriers to expand the fleet. Andrea Olivi, global head of shipping at Trafigura and chairman of Volare, described the new unit as combining “one of the youngest and most technically advanced ‘very large crude carrier’ fleets in the market” with access to Trafigura’s extensive global trading, chartering, and analytics capabilities.
The flotation move coincides with a sharp increase in freight rates driven by the conflict between Iran and the United States, which has tightened vessel availability. However, sources indicate that plans for the initial public offering (IPO) were developed prior to the outbreak of hostilities. The decision reflects longer-term trends, including an aging global fleet of large crude vessels and increased demand for longer-haul oil shipments.
Market conditions have been further complicated by the growth of the so-called "shadow fleet," comprising vessels that transport petroleum from countries under international sanctions, such as Iran and Russia. Additionally, state-owned entities like the Abu Dhabi National Oil Company (Adnoc) have been active in acquiring tankers, exacerbating supply constraints in the shipping market.
Trafigura, ranked as the world’s second-largest commodities trader, manages approximately 500 vessels in total, including around 250 oil tankers. The company’s business model benefits from significant market volatility and disruptions in commodity pricing across various regions. It reported a net profit of just over $4 billion for the six months ending in March, marking the second-highest half-year profit in its history. The Volare Shipping IPO represents a strategic effort to leverage current market dynamics while expanding the company’s tanker fleet footprint.