Signal Maritime | Our Story of the Month - December 2021

Posted by
Signal Maritime team
December 3, 2021

“Investing in fleet repositioning at the right moment paid-off by generating material overperformance in Q4 2021”

Following detailed analysis on seasonality, covid effect and vessels’ supply-demand earlier in the year, we took a strategic decision to reposition a considerable part of the Signal Maritime Aframax Pool (SMAP) fleet towards West and specifically USG. From August to October, the Chartering team was working consistently towards the direction of repositioning vessels from East to West, increasing the fleet’s position value center-of-mass and getting ready for a West market jump in Q4 2021. This has been a bold move that would short-term affect performance but generate significant overperformance by the end of year.

Implementing the backhaul strategy...

Finding the right cargoes and market levels to implement the strategy with the lowest possible hit on performance was not easy. Two highlights of the reposition strategy are the sequential backhauls of Chrysanthemum and Wonder Vega.

… and measuring the impact

In the second decade of October, the West markets, with US being the flagship, were firming. Having a considerable West exposure resulted in strong fronthauls that boosted our pool partners’ earnings. At the same time we kept a sufficient local presence through x-USG voyages.

*December at 55% fixed for SMAP   ** % of SMAP fleet opening West of Suez

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