Archer Daniels Midland (ADM) of the US has penned a deal with Japan’s Sumitomo Corporation to build a batch of three post-panamax bulkers.
The New York-listed parent of ADM Shipping, which already oversees a fleet of eight bulkers from its headquarters in Decatur, Illinois, says the 95,000-dwt units will be constructed by Sumitomo subsidiary Oshima Shipbuilding.
“Adding three new oceangoing vessels to our global transportation network supports our strategy to increase the volume of crops we handle and expand the geographic footprint of our operations worldwide,” said ADM Transportation officer Royce Wilken.
“It also provides greater flexibility and control of our supply chain while improving our transportation margins,” he added in a statement Thursday.
The agricultural giant did not disclose price or delivery but a spokesman tells TradeWinds that while "it’s too early to pinpoint an exact deadline", the project will likely take “a couple of years”. Brokers believe the ships will cost around $36m a piece.
When the newbuildings hit the water they will be classed by ClassNK and will boast “green technology” features provided by Mitsubishi Heavy Industries, which will help the units achieve a 25% reduction in carbon emissions through the installation of various systems.
It’s not clear if the owner’s order includes an option for additional vessels.
TradeWinds first broke news of ADM’s appetite for tonnage in August and shed light on newbuilding negotiations in September.
ADM’s on the water fleet of bulkers range in size from 45,600 dwt to 74,200 dwt. Its transportation network also includes approximately 1,700 barges, 58 tugs, 29 line boats, 26,100 railcars, 700 trucks and 1,500 trailers.