Cargill to close London shipping unit as sector crisis worsens

LONDON, Jan 21 (Reuters) - Global commodities trader Cargill
CARG.UL 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 .BADI , 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. ID:nL1N14R189
Separately, Danish dry bulk shipping company D/S Norden
DNORD.CO warned on Thursday it expected to report a loss for
2015 because of low freight rates and sluggish demand.
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