Toronto-based bulker owner Norvic Shipping is conducting changes to its management structure and is moving key roles to New York, chief executive Peter Borup confirmed.
Former chief operating officer Mudit Paliwal and Henrik Jeremiassen, previously managing director in Denmark, have left and their positions have not yet been filled.
We did one or two one-year deals, but in this demanding market, it makes sense to go short on tonnage
CEO Peter Borup
Norvic stressed that the two left “by mutual agreement”.
Restructuring concept
Borup said the shift of management functions to the Big Apple is aimed at moving closer to its business activities and commercial environment.
The company operates about 100 bulkers, of which about 55% are supramaxes, 25% handysizes and 20% panamaxes.
Norvic is not contemplating investing in ships, aiming to remain a pure operator of bulkers. The company has even avoided taking ships on long-term charters in its core fleet.
“We did one or two one-year deals, but in this demanding market, it makes sense to go short on tonnage. There are not many period charters available that would give us contract coverage,” said Copenhagen-based Borup, who was appointed chief executive of the company last year.
He added that Norvic is not ruling out taking longer positions at a later stage.
Tougher market
Borup described the bulker market as “a bit tougher” than of late and he is comfortable with the current situation the company is in. He said the firm was profitable in 2018, although the figures are not yet available.
Norvic has a policy of company growth, but Borup stressed that a key goal is to be able to work “more efficiently with our teams”. The company has offices in Copenhagen, Toronto, New York, Houston, Dubai, Singapore, New Delhi and Dubai.
Norvic was founded in Toronto in 2006, initially focusing on the aframax and suezmax segments. It still has a minor involvement in the tanker side.
In 2012, it went into the bulker business and has since significantly grown the fleet. Norvic last year generated more than 25,000 ship days during the calendar year and doubled its turnover.
Borup was the head of Lauritzen Bulkers in 2017. He is a 26-year shipping veteran and lists former senior positions at Norden and Maersk Broker on his CV.
