Western Bulk runs a flat and decentralized commercial structure. Our seven business units run their own book of vessels and cargo contracts, and have responsibility for a geographical area or a vessel segment.
This means that the business units are fully accountable for their own P&L, and that the units themselves decide on their business model and market exposure, subject to a VaR limit, counterpart approval and limits on contract tenures. This organisational structure is extremely transparent and assigns responsibility for results clearly with the ones making the day-to-day decisions. The result is a strong ownership to the bottom line, rather than (for instance) the top line. The structure also facilitates quick decision making with a local flavour.
The setup requires extensive co-operation between the business units, and the units often share cargoes and/or vessels to incentivise performance when fixing in and out vessels. A vessel trading outside a unit's home turf will be handled by the local business unit to avoid competition and to ensure that trading is done by the ones that best know the market in question.