MethodologyContact usLogin
The goal is to establish partnerships with three or four facilities in the Midwest and East Coast of the United States, and have at least one London Metal Exchange-approved warehouse by the end of the year in the Midwest, Posner told Metal Bulletin.
“We will be starting off with LME metals and then branching out to other commodities such as steel, agricultural products and ferro-alloys,” he said.
Posner and Brock launched Mercury Resources in New York at the end of April, with Posner as the company chief executive officer and Brock as president. They have worked together for many years, first at MidShip Group LLC, CWT’s handling agent in the US, and then CWT Commodities (USA) between 2010 and 2017. They had recently joined T Parker Host to help the family-owned US shipping and stevedoring company develop its logistics business.
This new venture comes at a time when the metals warehousing business is facing headwinds and many companies have been diversifying away from pure exchange-listed operations to combat the threat of shrinking margins and dwindling stocks associated with tougher rules and controls.
But Mercury Resources is better equipped to cope with current challenges, Posner said.
“We are focused on logistics. Exchanges are not the primary part of it. We are core freight specialists and bulk shipment experts that just happen to have LME facilities when needed: it’s not the same model as other LME warehouse companies,” he explained.
Mercury Resources has strong partnerships with shipowners and operates “a bit like a ship broker,” which gives it an advantage in the current environment of surging global freight costs because it can secure competitively low rates, Anton said.
“Higher and volatile freight rates create opportunities for intermediaries like us,” Posner said.
The company already moves a lot of metals, including alumina, aluminium, copper, zinc and lead and steel bulk shipments on sea, river and rail, while working with other warehouse companies for container freight.