Wallenius Wilhelmsen Logistics will lay-up vessels in response to the continuing severe trading conditions in the vehicle carrying trades.
According to WWL, the global recession has severely impacted automotive volumes, which have dropped by 30% - 50% from this time last year.
Also having significant impact on WWL is the drop in volumes for High & Heavy and NCC cargo, but the picture here is much more mixed between regions and industries.
WWL's CEO Arild Iversen commented: "Like our customers, we have to adjust our capacity. Since we do not predict any significant up-turn in the market until 2010, we will start to put vessels in cold lay-up. We are keeping a very close eye on market developments and will be adjusting our capacity in response to this. With our current planning, we expect to have 15% - 20% of our capacity in lay-up during the year."
Laying up the least efficient vessels will enable WWL to optimise usage of its remaining fleet and substantially reduce operating costs of the laid-up vessels.
The first vessel lay-ups are currently underway at different locations in Europe and Asia, starting with two vessels in Lyngdal, Norway.
WWL says it will maintain its trades and port coverage, and uphold service levels to customers despite the lower volumes.
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