Heads roll at CECO

Camillo Eitzen is to axe 16% of its shore-based staff as it fights a decline in shipping markets.

Shipowner, Axel Eitzen.

The jobs will be lost at its Oslo and Copenhagen offices, a statement says.

Peter Knudsen, CEO of Camillo Eitzen, said: "We sincerely regret to have to let go of our committed and loyal employees.

“These and other measures are a consequence of the markets in which we operate, and we are implementing changes to the organization that have been approved by our board of directors.

“Under the present situation, our stakeholders expect us to adjust our ambition level - to focus on our key shipping segments (Bulk, Gas and Chemical), and develop a business model that is sustainable and adjusted to the present business climate.”

The cuts will see 17 out of Camillo Eitzen’s 106 shore-based employees lose their jobs by the end of this month.

Knudsen told TradeWinds: “It is fair to say that in good times it is easy to put on a bit of fat. In more dire times you try to become leaner. There is a potential to slim down in several areas.”

He says the cuts will sweep through the company’s operations, administrative, IT and technical departments. Redundancies will be spread "relatively evenly" between Denmark and Norway, but the Copenhagen office will be hit harder as it is the larger operation.

Coupled with other cost cutting measures the Oslo-listed shipowner says the move will slice its costs by 20%. This equates to about $6m, Knudsen says.

Camillo Eitzen is also reducing costs by amending its staff travel policy, entertainment, communications and purchasing, Knudsen explains.

“Obviously, we will also try to be even more focused on the operation of vessels to do that in a more cost effective way,” he said.

Earlier this month Camillo Eitzen reported a $287.2m loss for the fourth quarter following a series of write downs and tumbling revenue.

A crash in the value of its fleet during the period led it to write off $241.3m while a provision for cargo delays sent its dry-cargo operation into the red.

“Without corrective measures, the CECO liquidity will gradually become tight unless cash flow from operations or divestments improves,” it said.

The shipowner is also looking to cut an order for six vessels in Japan but wants to upgrade those which survive the cull.

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