ADM Buys 5 Cargo Ships to Add Flexibility to Transportation Network

Archer Daniels Midland Co. recently acquired five cargo ships it says will help it transport grain worldwide with greater flexibility and at lower cost than outside carriers.

The company said the oceangoing dry-bulk commodity vessels range in length from 179 meters (587 feet) and 225 meters (738 feet). They can carry between 36,000 tons and 67,000 tons each of all types of grain, grain products and bulk commodities between ports in Europe, South America, Asia and other parts of the world, ADM said.

"Connecting these regions on a global scale aligns with our strategy to expand the geographic scope of our business," Royce Wilken, an officer of ADM Transportation, said in a statement. "In addition to providing us greater control of the supply chain, these vessels will improve operating margins, and help to position us ahead of our competitors with regards to net delivery cost."

ADM said the ships will augment its transportation network, which also includes 1,700 barges, 58 tow boats, 29 line boats, 23,500 railcars and 1,600 trailers.

Source: Associated Press