Cargill and Maersk Tankers have announced a strategic partnership that will improve flexibility for customers and reduce fuel consumption and emissions as well as have a positive impact on time-charter-equivalent earnings for partners. Cargill will enter its medium-range (MR) fleet into the existing Maersk Tankers MR pool, creating a new joint pool that will significantly increase the scope of their MR spot tanker business by 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, Denmark; Singapore, and Houston, Texas, 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, thus increasing the total number of vessels to more than 60, which makes the new pool one of the market leaders in the MR segment.
“We are excited to partner with Cargill, a key industry player,” Claus Gronborg, Maersk Tankers chief commercial officer, said. “The new setup will substantially increase the scale of the pool and give us more flexibility to offer a better service to our customers.”
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 for Cargill Ocean Transportation.
Both Cargill and Maersk Tankers said they 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 carbon dioxide emissions.
Cargill’s vessels will enter the pool at the beginning of October. Both companies intend to attract additional vessels from other shipowners and further increase the pool’s capacity over time.