Clipper Bulk is cutting 40 out of 140 shore-based staff and closing its Tokyo office as seeks a more focused market approach to return to profitability.

The company is closing its Tokyo office and transferring the duties of its Nassau office Owners’ local representation. As result of the restructuring 12 staff in Houston, Hong Kong, Tokyo and Nassau are being being laid-off and a further 28 at its head office in Copenhagen.

”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,” said Peter Norborg, ceo of Clipper Bulk.

The company will focus its business on its offices in Copenhagen, Houston and Hong Kong with support from a local office in Barranquilla, Colombia.

Norburg said: “We have been challenged by the steep, unexpected market downturn. We are establishing a platform, which will allow us to fully benefit from Clipper’s positions of strengths in various trades and geographies.”

Clipper aims to keep developing niche business such as Clipper Steel - a service to and from the Mexican Gulf with the part-owned IPA Steel Terminal as a focal point, Compass Rose - joint-venture with a Colombian manufacturer of fertilizer, and China Parcel - cargoes from more consignors into China, combined with back-hauls into the Atlantic.

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,” said Norburg.