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China Merchants Energy Shipping is part of the China Merchants Group, an international State Owned Enterprise operating under the auspices of the Chinese Ministry of Transport. It is headquartered in Shanghai and listed on the Shanghai Stock Exchange in 2006.

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As a shipping company, CMES’ revenues and profits are driven by freight rates. VLCCs are a significant portion of this. We have seen a pick-up in global oil demand due to an increase in road and air traffic, which has meant greater demand for oil shipping. At the same time, supply of VLCCs is tightening because a) shipping and oil companies are cutting back on building new VLCCs due to high expense and long-term uncertainty for fossil fuels with the rise in renewables; b) increased tensions in the Middle East has meant trade route disruptions with many Asia to Europe / US East Coast rerouting around Africa, leading to less tankers in port ready to carry new loads. Rising demand and tighter supply should lead to higher freight rates.