Clipper Bulk reduces cost base
Clipper Bulk A/S, a global operator of Handysize, Supramax and Ultramax vessels, has announces initiatives to reduce costs amid historically low freight markets, caused by the Covid-19 virus pandemic. Initiatives include organizational downsizing, the company said in its release.
To optimize its cost base, Clipper Bulk cuts 24 out of 91 jobs ashore end April. Changes will predominantly be introduced to the head office in Copenhagen.
“The dry cargo market has struggled with unsustainably low freight rates for years, but the Covid-19 pandemic has made matters worse and caused a steep downturn in demand and freight rates. We need to adapt to this new reality, and we are making these changes to stay ahead of the situation. While we deeply regret the implications for staff, the downsizing is essential to adjust costs to prevailing markets,” says Clipper Group CEO Peter Norborg.
Business focus will primarily be on Clipper Bulk’s profitable niche operations, such as Clipper Steel (service to/from the US and the Mexican Gulf with the part-owned IPA Steel Terminal), 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 to Clipper Steel), etc.
Income from these niche operations is expected to fully cover Clipper Bulk’s cost base after the downsizing. Furthermore, Clipper Bulk will continue to approach the spot market cautiously to serve long-standing customers and partners.
Clipper Bulk’s integration of the newly acquired Bulkhandling Pool continues unaffected by the organizational changes.
Clipper Bulk recently took over rights, trademarks and key people in order to merge the Bulkhandling Pool with Clipper’s own Ultra Pool. Members are currently joining the new Clipper Bulkhandling Pool and vessels will be transferred within the near future.
Clipper Bulk operates 65-85 vessels, including tonnage operated by the two Clipper Bulk-managed pools: The Clipper Handy Pool (28-38,000 dwt vessels incl. fully fitted loggers and grabs-fitted vessels) and The Clipper Bulkhandling Pool (57-64,000 dwt, grabs-fitted vessels).
ABOUT CLIPPER
Clipper Bulk A/S is an industry leader in dry bulk operating a fleet of modern vessels, transporting a wide range of cargo from dry bulk to break bulk. The office network includes hubs in Copenhagen, Houston and Hong Kong as well as a local office in Barranquilla, Colombia. Clipper Bulk A/S is a subsidiary of Clipper Group Ltd., a shipping group founded in 1972 by Torben G. Jensen and still controlled by the Jensen family. Clipper Group has strong complementary businesses in the ro-ro segment through Seatruck Ferries.