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ArcelorMittal had challenges in shipping steel coil from the Continent to the main UK processing areas such as the West Midlands and the Merseyside areas both of which are heavily involved in the automotive industry. They had restricted port capacity at various UK east coast ports including Port Sutton Bridge where vessel sizes are restricted due to low water. Additionally, they found there was a dwindling availability of trucks designed to carry steel coil that could handle the cargo from that port.
Product Type: Steel Coil
Geography: UK Midlands
Turnover: $63.57 billion (2015)
DFDS offered our steel terminal in Immingham, which is rail linked so less dependent on road. Immingham can accommodate vessels up to 20,000 tonnes, which is considerably more than the smaller east coast ports. Our Immingham facility includes 100 tonne capacity harbour cranes, a heated warehouse, two magnet cranes with a capacity of 35 tonnes each, road, rail plus dedicated knowledgeable staff working 7 days a week to meet customer demands.
The steel coils arrive by ship and are moved to the warehouse, or directly to road and rail as requested on 24/48 hour call off. We ship off 4-5 trains per week, with up to 1200 tonnes of steel coil per train on 10-12 wagons. Additionally, we have road capacity in Immingham to ship coil on trucks with well deck trailers.
"Because we use magnetic cranes for handling the coil in our warehouse, we have a very low level of damage to the coils. In fact, in 2016, we have damaged only 1 coil out of 12,000 units we shifted for ArcelorMittal. With the demands of the automotive industry, there is a zero tolerance towards damaged coils, so these low damage rates are very important, not only to ArcelorMittal, but across the supply chain," says Ian Penistone, Operations Director.
DFDS volumes for ArcelorMittal have been steadily rising. We handled 71,000 tonnes in 2014, 89,000 tonnes in 2015 and expect to move 125,000 tonnes in 2016. Much of this steel comes back to us in Immingham in the form of finished cars from Jaguar, Land Rover and Vauxhall to be shipped to points in Europe on DFDS vessels.