Cargill, Maersk Tankers Team Up in the MR Segment
- Business & Finance
Geneva’s Cargill International has agreed to enter its Medium Range (MR) fleet into the existing Maersk Tankers MR pool as part of a strategic partnership between the companies.
The move is to create a new joint pool that would significantly increase the scope of the parties’ MR spot tanker business, combining Maersk Tankers’ digital expertise with Cargill’s experience in trading.
Maersk Tankers currently operates 44 vessels for 10 partners in its existing MR pool. Cargill will add its fleet of up to 20 vessels, increasing the total number of vessels to more than 60, making the new pool one of the market leaders in the MR segment.
Cargill’s vessels will enter the pool from October 1, 2019, while both companies intend to attract additional vessels from other shipowners and further increase the pool’s capacity over time.
The pool will be managed by Maersk Tankers, with members of Cargill’s tankers team joining to provide support on a full-time basis. The new team will be located across Copenhagen, Singapore and Houston and will cover all daily commercial and operational tasks.
The agreement does not include derivatives or MR tankers for period employment, which will be handled by Cargill and Maersk Tankers independently.
“The new set-up will substantially increase the scale of the pool and give us more flexibility to offer a better service to our customers,” Claus Gronborg, chief commercial officer at Maersk Tankers, said.
Digitalization and a shared passion for safety and sustainability
The joint pool will enable vessels to get exposure to the spot market, while benefiting from Maersk Tankers’ unique digitalized approach to trading. The company uses algorithmic trading to position vessels to improve customer service and optimize earnings for partners.
“Our teams share a passion for safety and sustainability and combine complementary skills. This partnership will bring a progressive approach to our customers, notably increased digitalization and sustainable shipping,” said Olivier Josse, global head of tankers, Cargill Ocean Transportation.
Both Cargill and Maersk Tankers are committed to reducing emissions and strive to play a leading role in moving the shipping industry towards a more sustainable future. The new joint pool will harness their combined expertise in fuel optimization, reducing bunker consumption and CO2 emissions.