Clipper Bulk A/S, a global operator of Handysize and Supramax vessels, announces a series of initiatives to strengthen its business platform amid continued weak markets. Initiatives include agreements to strengthen the company’s financial position, downsizing of organization and office network, other cost savings, changes to Senior Management as well as a more focused market approach.
“We have been challenged by the steep, unexpected market downturn. Today, we are taking the steps required to run a viable, profitable dry bulk operation, even in depressed markets. We are establishing a platform, which will allow us to fully benefit from Clipper’s positions of strengths in various trades and geographies,” says Clipper CEO Peter Norborg.
Part of the reorganization, additional working capital is put at Clipper Bulk’s disposal, allowing Clipper to approach markets more proactively.
To further simplify its operational and administrative set-up, Clipper Bulk cuts approximately 40 out of 140 jobs ashore, 12 in Houston, Hong Kong, Tokyo and Nassau and the remaining at the head office in Copenhagen. The Tokyo office will be closed down while the duties of the Nassau office will be transferred to the Owners’ local representation, allowing Clipper Bulk to fully concentrate its business in 3 hubs – Copenhagen, Houston and Hong Kong – supported by a local office in Barranquilla, Colombia.
”While we deeply regret the implications for competent and loyal staff, the downsizing is essential to adapt both costs and structures to prevailing market conditions. We will do our best to support the ones affected,” says CEO Peter Norborg. Hence, Clipper Bulk offers various mitigating measures, such as severance payment, individual guidance on job seeking and career planning, etc.
Additional initiatives will be launched to tightly manage costs and prioritize resources.
In continuation of the changes, Clipper Bulk announces a new Senior Management Team, comprised of Peter Norborg (CEO), Amrit Peter Kalsi (COO, Head of Chartering & Operations), Thomas Martinussen (Head of Legal), Britt Jørgensen (Head of HR & Comms) and Anders Bruun (Head of Business Development). A Head of Finance & Accounting will be named later.
The new Senior Management Team will put great emphasis on making Clipper a more focused and specialized dry bulk operator, by leveraging Clipper’s positions of strength in various trades and routes as well as its long-term partnerships with clients, technical and commercial managers and other stakeholders. Hence, Clipper will continue to develop its niche businesses, such as Clipper Steel (service to and from the Mexican Gulf with the part-owned IPA Steel Terminal and its rail, road and sea links as focal point), Compass Rose (joint-venture with a Colombian manufacturer of fertilizer), China Parcel (cargoes from more consignors into China, combined with back-hauls into the Atlantic), Brazil Steel (associate with Clipper Steel), etc.
“There are routes, trades and geographies where we definitely want to grow our business and our fleet. In terms of the general market, we will take a more opportunistic approach and only pursue those cargoes and customers that offer reasonable profitability,” says Peter Norborg.