OUR BUSINESS
Concept
The most carbon efficient deep-sea shipping solution in tanker and dry bulk shipping
Example trading pattern
Note: For the same round voyage, a standard tanker and dry bulk vessel would typically ballast for 10-20 days, while a combination carrier is around 4 days.
Specialization in shipping has created many inefficiencies, with bulk carriers sailing some 50% of the time in ballast. KCC’s combination carriers solve this by consecutively switching between dry and wet cargo shipments with minimum ballast between the laden voyages.
The vessels ship tanker cargoes into dry bulk export hubs such as Australia and South America and ship dry bulk cargoes on the return leg.
Compared to standard dry bulk and tanker vessels, KCC hence delivers:
1. Lower carbon emissions for the same transport work: Substantial fuel consumption advantages with 30-40% fuel consumption per ton-mile transported cargo when compared to standard dry bulk and tanker vessels, and hence up to 40% lower emissions per transported ton of cargo
2. Lower earnings volatility: Diversified market exposure as the vessels transport both dry bulk and tanker products and have a positive correlation to bunker prices as the vessels are priced as standard vessels
3. Premium earnings: Higher asset utilization through having two laden legs, which gives a higher number of revenue days compared to standard vessels
Two vessel segments built on the same business concept
Klaveness has been an owner and operator of combination carriers since the early 1950s. Over this period, the company has developed and refined vessel design, equipment, operational procedures and crew training to provide our customers with the most efficient and environmentally friendly, high-quality shipping services. The company currently operates a fleet of 16 vessels: Eight CABU vessels and eight CLEANBU vessels.
CLEANBU
Expanding KCC’s service into the clean petroleum product markets
KCC took delivery of eight new generation combination carriers, the CLEANBUs, in the period January 2019 to May 2021. The CLEANBUs are full fledged LR1 tankers and Kamsarmax dry bulk vessels. In addition to transporting all types of dry bulk products and caustic soda, they ship clean petroleum products, expanding into the petroleum and petrochemical industries.
CABU
Well proven shipping solution for the alumina industry
The CABU combination carriers service the aluminum and alumina industry transporting caustic soda solution (CSS) to the world’s largest alumina refineries in Australia. In our trades to the Middle East Gulf, the vessels also ship alumina to the aluminum smelters in Bahrain and the Emirates. In addition, the CABUs transport several other dry bulk commodities such as salt, bauxite, iron ore, grains, and solid fuels.
Concept benefiting the customer and environment
Operational excellence
Dedicated tonnage, with experienced commercial and technical management and crew, ensure cargo and trade familiarization to deliver best possible service.
Reduced demurrage costs
KCC works closely with its customers to optimize their shipping program by actively adapting vessel speed and scheduling to minimize port congestion and demurrage costs.
Reduced freight costs
Due to larger lot sizes and efficient trading patterns with minimal ballast, KCC can offer customers discounted freight costs compared to standard vessels.
Reduced environmental footprint
Efficient trading patterns with minimum ballast and efficient vessel designs imply a substantial reduction in CO2 and SOx emissions per transported ton of cargo, thereby contributing to reducing the environmental footprint of our customers’ supply chains.
