The company operates a tanker fleet with the largest capacity in the world, covering all mainstream tanker types. Its main business includes the transportation of crude oil and product oil along the coast of China and across the world, with routes covering major ports in the east and the west hemispheres. We are committed to being a whole-process energy transportation solution provider, adhering to the concept of intrinsic safety in our development in providing customers with all-ship-type, globalized and round-the-clock services.
We use self-owned and controlled ships to participate in spot market chartering, time chartering, signing of contracts of affreightment (COAs) with cargo owners, participating in joint operation and other production and operation activities. Through domestic and foreign trade linkages, large and small Ship linkage, crude and product oil linkage, we give full play to the advantages of ship types and routes, and provide customers with whole-process logistic solutions such as import, domestic transfer, refined oil transshipment and export, so as to ensure logistic efficiency for customers and achieve win-win cooperation.
The international oil transportation industry comes into being along with the oil trade influenced by the geographical distribution of the main oil production and consumption areas. Ocean shipping is the most efficient oil transportation method with the largest capacity and the lowest cost. The international oil transportation industry has three characteristics: First, the cargo flow is relatively fixed, the route layout is relatively fixed. The second is that it faces higher safety risks of oil pollution. There is a special inspection mechanism designed by major oil companies. The third is that freight rates are more affected by international political and economic factors, thus the volatility is more severe.
Compared with the international oil transportation market, the supply and demand of the coastal oil transportation market is relatively balanced, and the total market is relatively stable. We mainly operate one-way marine crude oil, domestic transit of imported crude oil, and coastal product oil transportation, with routes covering domestic coastal ports. We have a number of vessels that are able to conduct both domestic and foreign trade. We can flexibly switch between domestic and international markets according to market conditions. We guarantee the transportation needs of offshore oil platforms for our customers, and can also run through the upstream and downstream of the value chain. We coordinate with the foreign trade fleet to provide customers with full logistic services including crude oil import, transfer, and refined oil transportation.