Pinnacle signs shipping contract with Norden
Shipping company Dampskibsselskabet Norden has announced a nine-year contract to transport pellets for Canada-based Pinnacle Renewable Energy Inc. Under the contract, starting in 2018 NORDEN will transport 3.5 million metric tons of wood pellets from Vancouver and Prince Rupert in western Canada to Europe.
According to Norden, it will make eight shipments per year for Pinnacle using Supramax vessels. Each trip is expected to take approximately 65 days.
Norden is a leading carrier of wood pellets. Over the past six years, the company said it has contracted to transport approximately 30 million tons of pellets for various clients.
Michael Boetius, leaders of industrial bulk at Norden’s dry carbon business, said the contract with Pinnacle achieves two primary things. First, it ensures the company has ships with return cargo from the Pacific to the Atlantic Ocean, a route that traditionally has fewer loads. Second, the contract helps cement the company’s position in the biomass market, where it has built up considerable experience and expertise.
Vaughan Bassett, senior vice president at Pinnacle, noted his company chose to contract with Norden for several reasons, including the fact that it owns its own fleet. He also indicated Norden has a good reputation in the shipping industry and is flexible and customer focused, allowing the company to meet the requirements of Pinnacle and its customers throughout the contract period.