Rio Tinto | Minerals and Metals for the world

Our prime objective is to combine creative logistics and purchasing power to enable our customers to sell more tonnes, preferably at better margins.

"We are also well aware that our clients are judged on the way they perform their obligations, so we constantly strive to provide a service which ensures safe, secure and timely delivery."

Alastair Fischbacher, a former master mariner and now RTS's senior representative in London, takes up the story: "We are always looking to exploit Group synergies, not only through the extra purchasing power that's available because we're taking greater freight volumes to the market but also by seeking innovative shipping solutions," he says.

"By understanding the pattern of cargo movements of different ship owners and the economics of their freight portfolios, we can identify opportunities to negotiate lower freight costs by, for example, choosing less popular routes or making use of ships on return voyages when they would otherwise be empty.

"We select the ships that are best suited to the business unit's particular requirements and try to ensure that Rio Tinto cargoes are not competing with each other," Fischbacher adds. "We also review and, where possible, eliminate those factors that can have an adverse effect on the business's competitiveness, factors such price escalation and bunker (fuel) adjustment clauses.

"As we become involved with businesses, we've proved time and time again that we are able to improve their shipping and their returns."

Hubie van Dalsen, managing director of Dampier Salt, now the largest exporter of seaborne salt in the world, endorses this viewpoint. "Nowadays, most of our sales are concluded on a delivered basis," he says. "And when you're dealing with a relatively low cost product like salt, the cost of shipping is a key factor in the equation.



Our prime objective is to combine creative logistics and purchasing power to enable our customers to sell more tonnes, preferably at better margins. "We are also well aware that our clients are judged on the way they perform their obligations, so we constantly strive to provide a service which ensures safe, secure and timely delivery." Alastair Fischbacher, a former master mariner and now RTS's senior representative in London, takes up the story: "We are always looking to exploit Group synergies, not only through the extra purchasing power that's available because we're taking greater freight volumes to the market but also by seeking innovative shipping solutions," he says. "By understanding the pattern of cargo movements of different ship owners and the economics of their freight portfolios, we can identify opportunities to negotiate lower freight costs by, for example, choosing less popular routes or making use of ships on return voyages when they would otherwise be empty. "We select the ships that are best suited to the business unit's particular requirements and try to ensure that Rio Tinto cargoes are not competing with each other," Fischbacher adds. "We also review and, where possible, eliminate those factors that can have an adverse effect on the business's competitiveness, factors such price escalation and bunker (fuel) adjustment clauses. "As we become involved with businesses, we've proved time and time again that we are able to improve their shipping and their returns." Hubie van Dalsen, managing director of Dampier Salt, now the largest exporter of seaborne salt in the world, endorses this viewpoint. "Nowadays, most of our sales are concluded on a delivered basis," he says. "And when you're dealing with a relatively low cost product like salt, the cost of shipping is a key factor in the equation.
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Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer