A shipping pool is defined when a group of similar merchant vessels are grouped together for administrative purposes. According to a prearranged agreement, their earnings are pooled and distributed to the vessel owners. In other words, a group of ship owners pool their vessels wherein the earnings are pooled together and distributed among them on a pre-approved weighting system. Here similar vessel types and sizes of various ownerships form one alliance with the aim to minimise risks and maximise revenue.
Though there are disadvantages, Shipping Pools are an unavoidable part of shipping which cannot be overlooked as they provide access to remote markets and cargoes, as well as collective knowledge and expertise. It is important to note that owners can benefit from being members of a Pool as they are being provided with security and stable revenue in a volatile market.