Wellard Sells Last Ship, Ends Business with Live Export Under Pressure
Once described as Australia’s largest live export business, Wellard announced the sale of its final ship as it shuts down shipping operations. The move comes as live export continues to be under pressure and is scheduled to become illegal in Australia and elsewhere.
Wellard traces its origins to Italy and the first shipment of livestock in 1950. Its first shipment from Australia took place in 1979 and the following year it was incorporated as Wellard. In an industry known for old, dilapidated vessels, the company turned to purpose-built newbuilds including Ocean Drover (13,500 dwt) which when built in 2002 was the largest purpose-built livestock carrier. The company highlighted its capability of transporting 75,000 sheep or 20,000 cattle along with advanced ventilation, feed, and water systems.
The vessel which is registered in Singapore carried its one-millionth head of cattle in October 2015, and by late June 2022, marked its 200th journey. The company reported the vessel had transported nearly 1.8 million cattle and more than 5 million sheep, traveling over two million nautical miles as it turned 20 years old.
Pressure on the industry grew and in recent years there has been an increased focus from animal rights activists which documented poor conditions in the industry. After years of pressure, New Zealand banned live export in 2023 followed by moves in Great Britain. Australia has limited the trade and is scheduled to end the export of sheep in 2028.
Wellard which had recently had a fleet of five vessels began selling capacity in 2017. Down from five ships, they reported the sale in 2024 of the Ocean Ute (7,300 dwt) leaving it with a single ship, Ocean Drover. The business in 2020 had reduced operations and transitioned to chartering and logistics working with importers and exports.
In September 2024, Wellard’s board reported it was commencing a strategic review. They said they would explore the long-term future of the company as well as the future and future commercial environment.
The Ocean Drover was cited as its flagship and the best in terms of profitability and capacity. The ship was operating between South America and Turkey with the company reporting it has charter commitments till June 2025.
Wellard agreed to sell the Ocean Drover for $50 million to Meteors Shipping, a Marshall Islands company controlled by Göktaslar Et-Et Ürünleri Yan Sanayi ve Ticaret Limited Sirketi, a significant Turkish agribusiness with which Wellard has conducted business for some time. As the last asset of the company, the sale will require the approval of Wellard shareholders and is expected to be completed in July 2025.
The company plans to distribute the proceeds to shareholders. The board said it was exploring the future and was also considering delisting the company from the ASX (Australia Securities Exchange). They highlight the sale price of the vessel is substantially above the current net book value.
Once having highlighted the growing international demand for beef, sheep meat, and dairy products, Wellard is bringing an end to its 46-year involvement in the global live export industry.