Maersk Supply Service is divesting up to 20 vessels and reducing its crew pool by 400 offshore positions over the coming 18 months.
The divestment plan is a response to vessels in lay-up, limited trading opportunities and the global over-supply of offshore supply vessels in the industry, the company informed on Thursday.
The first ten vessels are expected to exit the fleet within 2016.
“One of Maersk Supply Service’s prime objectives is to attempt to restore the supply demand balance in the offshore supply market. This is why the vast majority of the divested vessels will be recycled or modified by their new owners to compete outside their present segments,” says CEO of Maersk Supply Service, Jørn Madsen.
In addition, Maersk Supply Service said it will flag its four ‘Stingray’ new-buildings to the Isle of Man registry. A commercial hub will be established in the United Kingdom consolidating ownership and operation of the company’s project vessels. This includes the ‘Stingray’ vessels and five existing project vessels that will also be flagged to the Isle of Man registry.
As a consequence of the fleet reduction and the flagging of existing project vessels to the Isle of Man registry, around 400 crew members will be made redundant.
“We are facing unprecedented market conditions, and regrettably we have to further adjust our crew pool. It is an unfortunate, but necessary step to safeguard the future of our company,” says Madsen.
The redundancy process will be covering all nationalities and is expected to be finalised by the end of September 2016.