Cargill and Maersk Tankers join forces in the Medium Range segment

GENEVA and COPENHAGEN, Denmark, Sept. 16, 2019 /PRNewswire/ -- 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, 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."

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 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 1 October 2019. Both companies intend to attract additional vessels from other shipowners and further increase the pool's capacity over time.

About Cargill
Cargill's 160,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive. We combine 154 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.

About Cargill Ocean Transportation
Cargill Ocean Transportation is a leading freight-trading business that provides bulk shipping services to customers across the globe. Founded in 1956, Cargill commands the highest level of operational expertise which ensures the sustainable and efficient management of its 650-strong fleet. Cargill has a unique market perspective and combines first-class operations with expert trading in both physical and financial freight markets.

About Maersk Tankers
Maersk Tankers facilitates the global trade of energy to meet the world's energy needs. The company is a leading player in the product tanker industry, operating one of the largest fleets of vessels and employing 3,000 employees worldwide. Established in 1928, Maersk Tankers has nine decades of experience and expertise in commercial and technical vessel management, providing customers and partners with safe, efficient and flexible services that benefit their businesses.

SOURCE Cargill