London: Western Bulk’s panamax chartering unit has closed with immediate effect, sources at the company have confirmed to Splash.
The company says its panamax activities, estimated at between 5% to 7% of the group’s business, will be absorbed into other business units.
Sources in the department declined to comment on the market developments that led to the desk’s closure when approached by Splash today, but it is believed that the unit had been struggling.
Western Bulk began building up its panamax business in 2013, which gathered pace in March 2014 when the company acquired Oslo-based K2 Shipping.
Sources confirmed the closure will result in some redundancies, but it is unclear how many.
The panamax unit currently employs 10 people, according to Western Bulk’s website, of whom nine are former K2 Shipping staff.