Cargill will take a minority stake in ZeroNorth, Maersk Tankers’ digital spin-off, as the two major shipping players continue to strengthen their business ties.
As part of the agreement, the US trading giant’s operated fleet of about 650 vessels will be using ZeroNorth’s flagship software, Optimise, in its efforts to reduce bunker consumption and greenhouse gas emissions.
The companies did not disclose further details on the deal, which is still subject to anti-trust review and approval. The regulatory process is expected to take six to eight weeks.
"By using the quantitative data approach on vessel performance, Cargill’s customers will benefit from reduced CO2 emissions and bunker consumption,” Jan Dieleman, business leader for Cargill Ocean Transportation, said.
“Reducing CO2 emissions through improved vessel performance is a critical part of our business and we recognise the value of collaboration with fellow industry leaders to achieve this.”
The partnership comes after Cargill placed its MR fleet of up to 20 ships into a Maersk Tankers pool last October. These vessels, as well as some of Cargill’s chartered-in bulkers, have already been using Optimise in recent quarters.
Targeting the tramp sectors, the software is designed to find each ship’s optimal speed based on prevailing freight rates, bunker prices, weather and individual vessel performance.
“By having Cargill on board as a large-scale customer and investor we are taking yet another step towards digitalising the tramp shipping industry to make a positive impact on the climate,” ZeroNorth chief executive Soren Meyer said.
When beginning its formal operation in June, Optimise was used by 300 tankers and bulkers from six shipowners, operators or charterers, including 225 product tankers from Maersk Tankers.
ZeroNorth, in which Maersk Tankers will still hold a majority stake, has nearly 1,000 ships from eight companies using the software.
“We are excited to have Cargill and Maersk Tankers, two industry leaders, as both owners and customers of ZeroNorth,” said Meyer, who had previously served as Maersk Tankers' chief asset officer.
“They share our commitment to leading the industry to a more sustainable future and we will harness their insight to deliver value for our customers, and for the industry as a whole.”
