Latest news from Heavy Lift & Project Forwarding International Magazine

Wallenius Wilhelmsen outlines Covid-19 contingency

Wallenius Wilhelmsen will recycle up to four vessels as the shipping company prepares “for a challenging time ahead” as a result of the Covid-19 crisis.

Preparations are also under way to place up to 10 vessels in cold lay-up. The dividend for 2019 proposed in February, which would have been equivalent to approximately USD60 million, has been withdrawn. 

With regard to the fleet, Wallenius Wilhelmsen said that the current situation indicates an overcapacity of 10-15 vessels. 

Wallenius Wilhelmsen is working to recycle up to four vessels, all 24 years or older. The move reduces operational cost for the fleet going forward, as older vessels generally have higher running costs and are less fuel efficient. The early recycling is expected to lead to a potential impairment of up to USD40 million. 

Reducing the size of the fleet will further reduce operational costs, added Wallenius Wilhelmsen. Of the 11 vessels available for redelivery at the start of the year, four have been redelivered and another three will be redelivered before end of June. One vessel has been extended and the remaining three are under consideration. 

Meanwhile, Wallenius Wilhelmsen has two newbuildings under construction that will be further delayed due to the disruption Covid-19 is causing.

“Given the situation and to preserve cash until we have more certainty, management has reduced capital expenditure spend to a minimum, prioritising safety and maintenance critical expenditures. This includes deferring some larger expansion projects in our land-based operations as well as the cancellation of four of the remaining scrubber installations,” said Wallenius Wilhelmsen.

www.walleniuswilhelmsen.com

Heavy Lift | News

Covid-19 shakes up Sulphur 2020 thumbnail image

Covid-19 shakes up Sulphur 2020

April 3 - The rapid spread of Covid-19 has had a multi-faceted impact on global shipping. HLPFI takes a look at how the outbreak has caused shockwaves in bunker prices and what this means for the implementation of the sulphur 2020 regulations.
Views: 754
AqualisBraemar taps northern talent thumbnail image

AqualisBraemar taps northern talent

April 2 - Global marine, energy, and offshore consultancy service provider AqualisBraemar has established an office in the port of Tyne, to support growing services and clients in North East England.
Views: 501
Boskalis issues Covid-19 update thumbnail image

Boskalis issues Covid-19 update

April 2 - Royal Boskalis Westminster has suspended crew and project staff rotations in response to the outbreak of Covid-19, but cargo is still moving.
Views: 765

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.