A conditional value-at-risk based methodology to intermediate-term planning of crude oil tanker fleet

Crude oil suppliers usually meet intercontinental demand through a fleet of ocean tankers, which not only have very high fixed and operating costs but also carry considerable financial risks because of the volatilities in oil demand and spot freight rate markets. Hence, most oil suppliers maintain an under-capacity fleet, and manage additional requirements through periodically adjusting a mix of various charter contracts and/or their purchase …