The Straits Tankers’ pool is making forays into the Long Range II tankers’ segment by taking in its first ever ship in this category into its fold, shipping industry sources said Tuesday.

The Mitsui OSK Lines Ltd. controlled Phoenix Dream is the first LR2 tanker to be admitted into the Straits’ pool, the sources said. The Mitsubishi Chemical Corp. also has around 20% control of this ship, they added.

“The ship is currently undergoing maintenance at [Singapore’s] Keppel Shipyard,” said one of the sources involved with handling the 93,892 dwt and 2005 built ship. After the docking is complete, the Panama flagged ship will be chartered out through the Straits’ pool, the source said.

Straits Tankers’ entry into the LR2 market is significant because it is already one the largest pools in the LR1 segment with around 30 ships plying both East and the West of Suez.

The LR1s and LR2s typically carry cargoes of up to 65,000 mt and 90,000 mt each respectively.

The development comes as shipowners are looking for consolidation in order to absorb excess tonnage following new buildings that are being delivered into the market and weighing on freight rates.

“For now, it is just one LR2 in the pool but potentially more are expected join later on,” said another source involved in the developments.

Straits Tankers was founded in 2011 when Hafnia Management and Mitsui OSK Lines joined up. UACC, Oldendorff, Reederei Nord and Marinvest later also joined the pool.

Tanker pools usually charge a commission on gross revenues and a daily administration fee for each ship. After deducting all expenses, the net earnings are distributed on a regular basis to vessel owners or pool members. The earnings vary based on a ship’s evaluation and is under a pre-agreed ‘pool points’ weighting system. Each vessel receives its proportionate share of revenues. But the revenue sharing formulae differ from pool to pool.

Source: Platts