Norway's Wallenius Wilhelmsen is set to reduce its fleet by recycling four of its vessels and placing another 10 in cold lay-up, the company said on Monday, March 23.
Four vessels, all over 24 years old, have been slated for recycling to help reduce overcapacity in the market. The move is also expected to reduce operational cost for the fleet going forward as older vessels generally have higher running costs and are less fuel efficient.
Meanwhile, the cold lay-up of the 10 other ships is expected to generate an estimated US$3,000 to US$4,000 in cost savings per day depending on the length of lay-up.
Wallenius Wilhelmsen said that, although it has been enjoying a "strong liquidity position" for a number of years, the fleet reduction is one of a number of precautionary steps to further preserve cash amid the unpredictable situation of the global economy and a "challenging time ahead" as a result of the coronavirus pandemic.