SHELL SLATES REDUCTION IN TANKER FLEET

Royal Dutch/Shell Group plans to slash the size of its tanker fleet to 50 vessels from 90. The decision results from a review of the group's shipping policy sparked by a new U.S. law that opens the way to unlimited liability by tanker owners and operators for oil spills. Last year Shell and several other companies barred their tankers from calling at U.S. ports other than Louisiana Offshore Oil Port because of financial risks stemming from the legislation (OGJ, July 30, 1990, p. 23).

July 1, 1991

Royal Dutch/Shell Group plans to slash the size of its tanker fleet to 50 vessels from 90.

The decision results from a review of the group's shipping policy sparked by a new U.S. law that opens the way to unlimited liability by tanker owners and operators for oil spills.

Last year Shell and several other companies barred their tankers from calling at U.S. ports other than Louisiana Offshore Oil Port because of financial risks stemming from the legislation (OGJ, July 30, 1990, p. 23).

Shell said it will phase out most of its third party transportation business. In the future, only Shell crude and products will be carried in Shell tankers. However, a small volume of third party business will continue for a period to balance the shipping system.

Shell International Marine currently operates 45 owned and managed vessels and 45 tankers on time charter. Phasing out third party business will enable the company to operate with 30 owned and managed vessels and 20 on time charter.