A modern, safe and energy-efficient fleet
Cargill operates around 650 vessels at any one time. We are one of the largest transporters of dry and bulk cargo, completing more than 4,500 voyages each year.
Reducing the GHG emissions of our fleet is a priority. To do so, we constantly improve the way we select and operate our vessels.
By better understanding our vessels we can improve the way we operate them. For example, in different load and weather conditions, we can take better choices about which vessels to employ. It’s a data intensive task that relies on the latest machine learning technology, but the results make it worthwhile.
In 2020, Cargill signed the Sea Cargo Charter, further strengthening our commitment to reduce our emissions per cargo ton mile (EEOI).
We continually improve the efficiency of our fleet, as well as the vessels of our partners. We work with vessel owners to install Energy Saving Devices (ESDs) such as innovative hull treatments and hydrodynamic packages that improve the efficiency of the hull and propeller.
Where necessary, we can advise owners on the optimal investment approach and also finance the installations. Find out more about Project Njord.
Together, making zero carbon shipping a reality
For the last few years, Cargill has been one of the leaders in the decarbonization efforts of the shipping industry. We are committed to play our role in transforming the industry and making zero carbon shipping a reality.
The shipping industry faces its biggest challenge to meet the International Maritime Organization’s (IMO) decarbonization targets which include a 50 per cent reduction in GHG emission by 2050.
We are working closely with our counterparties and wider stakeholders through various initiatives to deliver continuous improvements in carbon intensity, spanning from ship technical efficiency and operating efficiency to fleet and supply chain optimization. We also continue to invest in and pilot new technologies and fuels to reduce the carbon intensity of our fleet.
In 2021, for the first time, through the Sea Cargo Charter, we have a global framework in place for assessing and disclosing the climate alignment of industry-wide chartering activities against which we can measure the impact of our efforts. We now have a common, global baseline to quantitatively assess and disclose if chartering activities are in line with climate goals. This is a critical step in our decarbonization journey and provides a standard starting point from which we can measure future improvements. Most importantly, we are collecting data that allows us to have discussions and make decisions that are data driven.
Find out more about Cargill’s decarbonization journey in shipping in our decarbonization report ‘Making Zero Carbon Shipping a Reality’.
Best-in-class customer service
Customers are at the center of every decision we make. When you partner with Cargill, we provide you with:
- Personalized daily updates on our chartered vessels
- Specialized expertise and voyage instructions about specific cargo operations, requirements and safety issues
- Flexibility in execution by accommodating changes of destination, port rotation and discharge quantities
- Ability to outsource some of your operations or fleet management activities to better manage costs
- Documentation in a timely manner upon completion of cargo operations.
Strong risk management and financial stability
Cargill manages risk through an integrated, embedded risk management function that governs risk limits, trading policies, counterparty risk and more. Our customers can be assured of continually high-standards and financial stability. Cargill holds an “A” credit rating by Standard & Poor’s, Moody’s and Fitch. More information can be found here.
For our ocean transportation business, we use our skills and expertise to mitigate price-risk volatility for ship owners and cargo owners through a number of solutions.
- Structured pricing solutions: We offer fixed- or floating-pricing structures for medium- or long-term contracts. These structures protect our customers against market volatility while providing flexibility in managing your shipping schedule.
- Bunker hedging: We provide our customers with short- or long-term solutions to manage bunker price volatility. These can be fixed through physical contracts or managed more dynamically via derivatives giving more stable and predictable freight rates.
- Physical fleet swap: Running your own fleet in today’s challenging environment may not be the most economical or efficient solution for your business. It also opens your business to a higher risk profile if something should happen while loading or discharging cargoes. With our global fleet and cargo flows, Cargill can offer a solution whereby you retain the benefits and flexibility of a time charter fleet without the operational risks, hassle and cost.
- Freight advisory and position management: Through our access and insights to major commodity and financial markets, we can offer select customers market advice for a competitive edge in your industry.