Cargill to Close London Shipping Unit as Sector Crisis Worsens

Posted by Eric Haun
Thursday, January 21, 2016

Global commodities trader Cargill will close its London shipping office in another sign of the worsening crisis battering the dry freight market, the company said on Thursday.

 
Financial markets have been in turmoil since the start of the year due to worries over the health of the world economy, China's finances and the fallout from low oil prices.
 
The dry bulk sector -- which transports commodities such as coal and grain -- has been particularly hurt by slower Chinese business at a time when the sector is struggling with huge overcapacity.
 
Cargill, a leading shipping player, said the move to shut the London office of its ocean transport business was because the dry freight market, "is in its most distressed position since the mid-1980s, a situation that looks likely to continue for the foreseeable future".
 
It added that the market rout forced Cargill "to adjust its organisation to be as efficient as possible".
 
"This has been a difficult decision, given the track record of our London office, which has played a very important role over the years, particularly in developing our relationship with the ship-owning community in the London market," said Roger Janson, head of Cargill's ocean transportation business.
 
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, stretched its run of record lows to the 13th straight session on Thursday.
 
Cargill said it had begun consultations with its 10 staff members in London and would consolidate freight activities from Geneva.
 
The privately held group announced earlier this month a drop in profits for the quarter ending end November. It is in the midst of a restructuring aimed at making the company more responsive to commodities market swings.
 
Separately, Danish dry bulk shipping company D/S Norden warned on Thursday it expected to report a loss for 2015 because of low freight rates and sluggish demand.
 
 
(Reporting by Jonathan Saul; Editing by Katharine Houreld)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Bulk Carrier Trends

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize

Star Bulk Carriers Reports 1Q Loss, Adds 3 Vessels.

The Athens, Greece-based Star Bulk Carriers Corp. (SBLK) has reported a loss of $48.8 million in its first quarter. The shipping company posted revenue of $46.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

News

US Provides $100 Mln in Port Security Grants

Homeland Security Secretary Jeh Johnson announced final allocations of $275 million for six fiscal year 2016 U.S. Department of Homeland Security (DHS) competitive preparedness grant programs,

Solstad CSV Gets Propulsion Overhaul at Gibdock

Gibraltar’s Gibdock shipyard has completed its scope of work on Solstad Shipping’s Normand Cutter, a 127-meter-long, 10,979grt construction support vessel (CSV)

Tanker Allision on the Piscataqua River

The U.S. Coast Guard says it is continuing to monitor the condition of the chemical tanker Chem Venus, after it allided with three unoccupied, moored sailboats

Logistics

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

MAST, AMSA Partner for Risk Management Services

Maritime security company Maritime Asset Security Training (MAST) has announced their partnership with Astbury Marine Services & Associates (AMSA), a specialist

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1361 sec (7 req/sec)