Wallenius Wilhelmsen to Lay-Up Part of Fleet
Shipowner Wallenius Wilhelmsen has announced that the coronavirus (COVID-19) pandemic has left the company with over-capacity, and it is preparing to lay-up some of its 125-vessel fleet.
“We now see a situation that is evolving rapidly across the globe. Even as matters improve in Asia, they are escalating in Europe and the U.S., said the company in a statement. “Factories are shutting down, borders are closing, and supply chains are being hit hard. The world has changed dramatically over the past weeks, and we are all feeling the effect. The consequence these events will have on the world economy and global supply chains remains unpredictable, but it is increasingly clear that there will be longer term impacts.”
Wallenius Wilhelmsen is a leading ro-ro shipping and vehicle logistics company, managing the distribution of cars, trucks, rolling equipment and breakbulk cargoes.
The company says it is taking precautionary steps to adjust operations and safeguard liquidity going forward. Measures include adjusting schedules and capacity. “The current situation indicates an overcapacity in the Wallenius Wilhelmsen fleet of 10-15 vessels. This will be solved through a combination of redelivery of chartered vessels to tonnage providers, early recycling and cold-lay-ups. We are making these decisions now, to ensure that we quickly can adjust service and costs as the supply chain and market impacts become clearer.”
The company says that its terminals have strict access and health controls in place and are currently all in operation. “We see disturbances and congestions at some of the ports we call, and as the COVID-19 situation develops and border restrictions take their toll we expect disruptions to increase.”