Our strategy is to manage and expand our fleet in a manner that produces strong cash flows and allows us to build our position as a leading provider of international seaborne transportation services for chemical cargoes. The key elements of our business strategy include:
- Grow the leading platform in the chemical shipping trade: Our scale and ability to leverage the commercial expertise and customer relationships of Navig8 Group will allow us to pursue significant growth opportunities. Asset values remain below historical averages and we believe there will be consolidation in the fragmented chemical tanker sector that we will be well positioned to capitalize on. We intend to become the leading owner and operator of chemical tankers in the industry.
- Capitalize on a scalable, cost-effective operating structure: We have put in place a cost-effective operating structure that should allow us to efficiently grow our fleet over time while managing our operating expenses. We have entered into a series of contracts for the provision of commercial, technical and corporate administrative services by our managers, whose scale and expertise allow them to deliver safe and reliable operations, under our close supervision. We believe that, by entering into and maintaining these agreements, we will be able to obtain these services in a transparent manner and at a cost that is competitive with, if not better than, what could be achieved by performing these functions ourselves.
- Optimize the employment of our fleet to capitalize on improving market fundamentals: We operate our vessels in the spot-market oriented commercial pools managed by our commercial manager, which we expect will result in higher utilization and the ability to directly benefit from increases in freight rates during a recovery. We believe there will be growing global demand for chemical tankers as long-haul chemical trade increases, resulting from the favourable secular changes in the production and transportation of chemicals. We expect that by operating within the commercial pools, we can improve our TCE rates through increased earnings and a reduction of idle time achieved through economies of scale and improved access to industry intelligence.
- Operate a modern high-quality fleet with a focus on reliable and safe operations: We intend to maintain a modern, high-quality fleet that meets or exceeds stringent industry standards and complies with customer requirements through a comprehensive maintenance program and by arranging for, and continuously maintaining, the highest standards for vessel inspections. All of the vessels in our initial Fleet are high specification vessels being built by leading Japanese and Korean manufacturers. We believe that companies in the Chemical industry seek transportation partners that are financially stable and have a reputation for reliability, safety and high environmental and quality standards.