Skretting and Cargill collaboration on transport

Cargill director Fredrik Witte (left) and Skretting manager Erlend Sødal
Cargill director Fredrik Witte (left) and Skretting manager Erlend Sødal

In a press release by Eidsvaag AS, the fish feed producers Cargill and Skretting will collaborate on the transport of fish feed in Norway under the name Fjordfrende.

Ship Mates: Fjordfendes

Instead of a ship with Cargill’s EWOS lining sailing right behind a ship
Skretting ‐ feed along the Norwegian coast, will now feed from both companies transported on the same ships.
This will limit shipping traffic and reduce greenhouse gas emissions by one-fifth for fish feed transport, the companies say.

The two companies have chosen to give responsibility for planning and handling of the transport to the shipping company Eidsvaag. This will include all ships that still have transport contracts with the companies.
The ships that will carry EWOS and Skretting feed will sail under the name “Fjordfende” because the companies believe it is about joining together for fjord friendly transport.

Cargill and Sketting have also engaged a neutral coordinator, the Belgian company Tri ‐ Vizor, who will ensure that the cooperation complies with competition rules and neutrality.

Parallel sailings

“This cooperation will increase the utilisation of the fleet capacity and drastically reduce our environmental footprint”, says Fredrik Witte CEO. in the Cargill Aqua Nutrition North Sea.

The companies believe that the new collaboration solution will make transport more efficient and increase the level of service for Norwegian aquaculture farmers.

“We are now creating an efficient system that over time will optimise capacity and give feed deliveries a better distribution model. Load capacity is better utilised, there are shorter sailing distances and
investment opportunities increase”, says Erlend Sødal CEO. in Skretting Norway.

“The collaboration has been named “Fjordfrende” because it is about joining together for fjord friendly transport. This is a contribution to the blue shift that the industry is working for”, says Witte.

Reduces greenhouse gases equal to 7,500 cars

Already in the first few years, it may be possible to reduce the fleet capacity by 20 per cent while increasing the utilization rate of the cargo capacity.
This increase in efficiency will reduce the emission of harmful greenhouse gases by one fifth per tonne of fish feed transported. That is, 15-20 million kg CO2 per year, which is equivalent to the emissions from 7,500 cars.

In the future, joint investments in new feed vessels will contribute to an even more adapted and multifunctional feed fleet while the emission of greenhouse gases will be even lower. A common fleet will not only maintain the level of service but provide increased flexibility, and the collaboration will provide greater muscle for innovation
and development, the companies say in a statement.

Fierce competition continues between companies

“We will continue to compete at all business levels, including product development and product prices”.
“The difference is that now the feed will be delivered by the same ship operator”, the Norwegian directors say.
The companies have involved a third party, Tri ‐ Vizor, to ensure that the companies continue to run their businesses completely separately from and independently.

Efficiency

In addition to the environmental benefits, the background for the collaboration is also to increase efficiency and reduce costs by avoiding parallel sailings.
“We have to develop ourselves to run our business in the most efficient way, and when we get an environmental benefit at the top, it shows that this cooperation pays off,” says Sødal.

The EU wants environmental cooperation on transport
The project is based on the guidelines and models developed by environmental logistics collaboration projects funded and supported by the EU Commission.

Since Cargill and Skretting are competitors, it is essential to comply with competition rules, and this means that certain types of information cannot be shared between the companies. Thus, Tri ‐ Vizor has established a framework that will be managed by Eidsvaag.
The framework will ensure efficient cooperation, guarantee that it is not possible that competitive-sensitive information can be shared between the companies and avoid coming into conflict with the competition law.
This process has been closely followed by specialized lawyers.
Tri ‐ Vizor is a Belgian company with long experience of such processes, and has participated in similar European projects to help more companies establish horizontal logistics collaboration.

Continued cooperation

The companies will continue to cooperate with the existing transport companies, AquaShip / Artic Shipping, Rotsund and Eidsvaag.

They are all leaders in maritime transport. Existing contracts will continue and we will continue our good cooperation.
The new thing is that we get one joint planning center where the shipping company Eidsvaag gets the entire responsibility for planning and handling the transport. This will ensure the smartest transport that will benefit both the environment and the aquaculture, says Witte.

Editor: AquacultureList


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