Cargill, Maersk Tankers to Run Joint Pool

September 17, 2019

Commodities trader Cargill and shipowner Maersk Tankers aim to build a joint Medium Range (MR) tanker pool with more vessels as they seek to cut emissions.

"The strategic partnership will improve flexibility for customers and reduce fuel consumption and emissions, whilst having a positive impact on time-charter-equivalent earnings for partners," claimed Maersk Tankers which operates 164 product tanker vessels.

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, said, "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."

The joint pool will enable vessels to get exposure to the spot market, while benefiting from Maersk Tankers' unique digitized approach to trading. The company uses algorithmic trading to position vessels to improve customer service and optimize earnings for partners.

Related News

PODCAST: FMD & the Building of a Defense Juggernaut DP World Starts Construction of New $1.2B Port in Senegal Floating LNG Conversion Job Slips Out of Seatrium’s Hands Just Do It! NIKE Commits to CMA CGM's New E-Barge Vessel Project Western Nations to Disrupt and Deter Russian Shadow Fleet