Cargill and Maersk Tankers Join Forces
Partnership increases scale, improves customer service, supports sustainable shipping and boosts earnings
Cargill and Maersk Tankers announce a strategic partnership that will improve flexibility for customers and reduce fuel consumption and emissions, whilst having a positive impact on time-charter-equivalent earnings for partners.
Cargill will enter its MR fleet into the existing Maersk Tankers MR pool, creating a new joint pool that will significantly increase the scope of their Medium Range (MR) spot tanker business, combining Maersk Tankers' digital expertise with Cargill's experience in trading.
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.
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.
Claus Gronborg, chief commercial officer at Maersk Tankers, says, "We are excited to partner with Cargill, a key industry player. 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."
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," says Olivier Josse, global head of tankers, Cargill Ocean Transportation.
Both Cargill and Maersk Tankers are fully 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.
Cargill's vessels will enter the pool from October 1, 2019. Both companies intend to attract additional vessels from other shipowners and further increase the pool's capacity over time.