US bulk carrier operator Pangaea Logistics has secured a contract extension from Noranda for a contract to ship bauxite from Jamaica to Gramercy, Louisiana.
The latest extension will see the company continue to transport bauxite for Noranda through to the end of 2031.
“We are pleased to extend our partnership with Noranda. Noranda and Pangaea know each other very well, having frequently found ways to enhance our relationship over many years, resulting in a true partnership. We look forward to serving Noranda’s transportation, supply and logistics needs for many, many years, and we will work and grow together on marketing and logistics for other products related to the aluminum industry,” said Ed Coll, Pangaea’s chief executive officer.
“With decades of bauxite supply under lease to us in Jamaica, it makes sense to extend our relationship with Pangaea through the next decade and create a pricing paradigm where our costs are much more predictable over that period,” David D’Addario, CEO of Noranda, added.
Additionally, the two parties have agreed to a pricing structure designed to create, net of fuel and port cost variances, stable pricing with minor inflationary adjustments through the life of the contract.
Pangaea transports over 3m metric tons of bauxite from Jamaica to Gramercy each year utilizing three dedicated vessels, and the company expects to transport over 40m tons of cargo for Noranda over the period of the extended contract.