Shipping benefits for capesize vessels

Oldendorff Carriers and United Bulk Terminals have announced the two companies will cooperate in marketing combined loading and shipping of coal and petroleum coke in capesize vessles from the US Gulf Coast to India and East Asia. The new service includes United Bulk Terminals export terminal in Devant, Louisiana, and Oldendorff’s top-off installation in Trinidad.

The companies believe that for the first time, customers will be able to book fully loaded capesize vessels from the US Gulf Coast at a competitive fixed rate, face no demurrage risk and receive high quality professional service from two market leaders.

Single freight rate

Customers will be quoted one all-inclusive freight rate for loading of a capesize vessel up to maximum available draft (approximately 47 ft/ 120,000 t) and a smaller shuttle vessel of approximately 50 – 60,000 t. Both vessels will sail to Trinidad where the cargo of the shuttle vessel is consequently transferred into the capsize vessel at Oldendorff’s existing top-off installation. The contract eliminates any demurrage risk for the customers at United Bulk Terminals Davant and Trinidad, United Bulk Terminals said in a statement.

“We are very excited about the opportunity to offer this unique service package together with Oldendorff, the world’s largest dry bulk carrier operator,” Jan Vogel, president and CEO of United Bulk Terminals, said. “Our ongoing expansion project at Davant, where we are currently doubling our handling capacity to over 20 million tpa, will enable us to offer customers [better] transshipment and greight terms for coal and petroleum coke exports to Asia.

Patrick Hutchins, managing director of Oldendorff Carriers London, said the company’s worldwide fleet of 450 vessels, as well as the existing top-off operation in Trinidad would be “complemented by a high performing loading facility with approximately 4 million t of ground storage and strong ties to river transportation.”

Immediately available

Because no new investments from the companies is required, the service offered by Oldendorff and United Bulk Terminals will be available with immediate effect and with no long-term commitment required from customers.

Mississippi barging

Although the new transport solution focuses primarily on a single freight rate from the US Gulf Coast to a discharge port in India or other Asian destinations, it could potentially be expanded to include river transportation on the Mississippi River. United Bulk Terminals said it already offered package contracts that combine barge transportation with terminal handling at Davant that avoid barge demurrage risk for customers.

Adapted from press release by Sam Dodson

Read the article online at: https://www.worldcoal.com/handling/13112013/shipping_benefits_for_capesize_vessels_254/