It’s the real thing: Coca-Cola has chartered three bulk carriers

Following the announcement of several global brands to charter cargo, Coca-Cola recently announced that it has chartered bulk carriers to transport raw materials. Due to a series of factors such as a severe shortage of capacity, the supply chain has experienced unprecedented disruptions. This global mega brand was forced to create a supply chain to keep its production lines running across the world

The announcement was made on 1 October by Coca-Cola’s procurement director, Alan Smith, on Linkedin. According to the post, the company has planned to deliver more than 60,000 tonnes of production materials through three bulk carriers. This is the equivalent of 2800 TEU ’s that traditionally would have shipped with the shipping lines. 

 "When you can't get containers or space due to the current ocean freight crisis, then we had to think outside the box," noted Smith.

It is reported that the three dry bulk carriers chartered by Coca-Cola are: the 34,400 dwt Aphrodite M by Empire Bulkers, the 35,100 dwt Zhe Hai 505 by Zhejiang Shipping and AM Nomikos-owned 35,000 dwt Weco Lucilia C.

Unlike large retailers such as Home Depot, Target, IKEA, and Costco, Coca-Cola has turned to an alternative to using dry bulk carriers, using the traditional bulk shipping method to transport the product materials it needs to maintain operations.

Moreover, Mr Smith pointed out that its charters were of approximately 35,000 dwt, and that the smaller size and traditional cargo handling capacity, compared to the requirements for unloading large box crane, enable it to avoid congestion at major ports.

“For these shipments, we are heading to some non-congested ports, so we are hoping for a smooth discharge. But it is a big watch-out when chartering, as the D&D per day is mega. Good co-ordination is vital on both the planning and operations side for loading and discharge,” he said.

Mr Smith added that these shipments were “the first of many, we hope, over the coming months and a prime example of excellent collaboration between our procurement teams, our supply chain partners and our suppliers”.