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 The dividend for 2019 proposed in February, which would have been equivalent to approximately USD60 million, has been withdrawn.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.

Heavy Lift | News

Reactivating economies with renewables thumbnail image

Reactivating economies with renewables

June 1 - According to Arjen Vergunst, Sarens general manager – wind, the impact of the Covid-19 outbreak on the wind energy industry has been largely temporary. He is positive about the sector’s long-term development.
Views: 426
Urgent action needed on keyworker designation thumbnail image

Urgent action needed on keyworker designation

May 29 - The heads of the maritime, labour and aviation organisations of the United Nations have issued a plea for urgent action on crew changes and for keyworker designation.
Views: 671
BIFA repeats its call for Brexit extension thumbnail image

BIFA repeats its call for Brexit extension

May 28 - A recent survey of members of the British International Freight Association (BIFA) has revealed that the majority of freight forwarders believe an extension to the Brexit transition period is desirable.
Views: 847

Heavy Lift Across The World

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