Pan Ocean has fixed a very large crude carrier to Trafigura Maritime Logistics for three years in a deal worth KRW148.18bn ($109.6m), locking in one of the strongest tanker hire rates of the current cycle.

The Harim-controlled South Korean owner disclosed the fixture in a stock exchange filing. The vessel starts work on December 1 and remains with Trafigura until at least December 1, 2029. Trafigura holds an option to stretch the employment to as much as 39 months.

The minimum contract covers 1,096 days, putting the implied gross hire at $100,000 per day. Pan Ocean did not identify the ship in the filing but said it will trade globally, including the Middle East and Asia.

For Trafigura, the rate locks long-haul crude capacity at a level that many owners would have dismissed as unattainable two years ago. For Pan Ocean, three years of guaranteed income at six figures per day de-risks a fleet that is expanding at speed.

Two players scaling fast

The fixture lands as both companies aggressively increase their VLCC exposure.

Pan Ocean agreed earlier this year to acquire 10 VLCCs from SK Shipping for KRW973.7bn ($694m). It has followed that deal with a string of newbuilding contracts in South Korea and China. Its latest confirmed order booked another two 319,000 dwt ships at Qingdao Beihai, taking its VLCC programme at the Chinese yard to three vessels, alongside a separate series at Hanwha Ocean.

The company has also secured much longer employment for part of its newbuilding pipeline. In June, Pan Ocean signed a $1.62bn, 20-year crude transport contract with SK Energy and SK Incheon Petrochem covering four newbuildings due to start work in 2029.

Trafigura gears up for Oslo listing

Trafigura, meanwhile, is preparing to list its newly formed VLCC owner Volare Shipping in Oslo. Volare completed a $500m equity raise last week at a post-money valuation of around NOK11.5bn ($1.2bn).

The company starts with six VLCCs on the water and eight newbuildings due through 2028. Trafigura remains the majority shareholder and commercial manager.

The Pan Ocean charter adds a further fixed-income employment string to a portfolio Trafigura will soon have to sell to public-market investors. A listed vehicle backed by visible, long-dated fixtures at six-figure daily rates presents a cleaner story than spot exposure alone.

What it means for the market

The commercial signal cuts both ways. A $100,000-per-day three-year rate tells owners and financiers that charterers expect crude ton-miles and vessel utilisation to stay strong well into the decade. Shippers of crude on Middle East–Asia lanes, where the fixture will trade, face counterparties increasingly confident in paying up front for fleet control.

Forwarders and tanker brokers should note the structure: a min-max charter with an extension option gives Trafigura flexibility while Pan Ocean books near-$110m of contracted revenue. Expect further long-period business as Volare's listing approaches and Pan Ocean's Qingdao Beihai and Hanwha Ocean newbuildings take shape through 2028 and 2029.