Torvald Klaveness is transferring its Bulkhandling pool to Denmark's Clipper Group as it focuses on its bigger vessels.
The deal to sell the world's oldest shipping pool, which comprises supramaxes and ultramaxes, brings to an end the reorganisation of its bulker operations.
In January, Klaveness had created the biggest global panamax pool by merging its Baumarine operation with Japanese trading house Marubeni's managed bulkers.
The Norwegian shipowner and operator said on Tuesday that it will transfer the Bulkhandling trademark, governance and key staff to Clipper from 1 April.
All current pool members have been offered the chance to join the new combined entity, while management will open talks with the owners to agree a strategy for further growth and expansion.
A spokeswoman for the Norwegian company told TradeWinds that the pool will initially have between 15 and 20 vessels, depending on how many ships stick with Bulkhandling.
"There is interest beyond this and it has good prospects of growing further. It will have both supras and ultras, with a majority of ultras," she added.
The deal marks an expansion for Clipper Bulk, which has been selling off ships in recent years to focus on being asset-light through chartering in tonnage.
The combined pool will be "one of the leading pools for supramax and ultramax dry bulk tonnage in the world", the companies said.
Change of focus
Bulkhandling dates back to 1963. It was started as a cooperation between Norwegian shipowners Klaveness, Havtor and Gill-Johannessen.
Klaveness had already announced in November 2019 that its Klaveness Chartering arm would scale down its activity in the supramax segment and that it was looking for partners in the pool business.
"The Bulkhandling pool is seen as market-leading and has significant potential for growth, said Lasse Kristoffersen, chief executive of Klaveness.
By combining the best of Bulkhandling and Clipper Bulk, we believe we will offer a unique product to the dry bulk market.
Peter Norborg
"We believe this can best be achieved under the wings of Clipper and we are confident that they will be able to deliver an even better product to more owners in the future."
Clipper Bulk said it has "strong growth ambitions" in the supramax and ultramax segments.
"By combining the best of Bulkhandling and Clipper Bulk, we believe we will offer a unique product to the dry bulk market," group chief executive Peter Norborg added.
"The legacy of Bulkhandling and the commercial craftsmanship of Clipper Bulk will secure the owners premium earning, full transparency and robust governance."
The dry bulk market is currently going through a very challenging time, the companies said.
"Seasonal lows, coupled with significant uncertainty connected to the Covid-19 virus, has caused a historically low market," Kristoffersen said.
"For owners of vessels, it is very challenging to find good opportunities in the time charter market, and the pool offering is seen as very attractive by many."
Consolidation is key in tough times
Norborg said that now is the time to join pools.
"And with the integration of the Bulkhandling owners, experience and governance into our pool, we know that several other owners are close to joining. We look forward to announce new pool members in the near future," he said.
Both companies are already working to ensure a smooth transition.
Norborg added: “We are ready and will not wait until April 1 to get moving. We have something to offer and now it is time to show that to the market.”
Clipper operates 75 handysize and supramax vessels.
Klaveness also owns combination carriers operating in dry and wet trades, as well as feeder containerships.
The panamax pool is overseen by joint venture Maruklav Management and will oversee 30 ships operated by Marubeni's MG Harrison Shipping and Baumarine from early April.
Data insights and analytics will be the main drivers for decision making and positioning of the pool vessels, the two sides said.
It is aiming to expand to 45 bulkers by the end of this year.
