The world is experiencing a severe recession, with a global scope and impact which is larger than most expected. The automotive market has been severely impacted and automotive volumes shipped have by now decreased with 30-40 per cent compared to the same time last year. 

Volumes are down for High & Heavy and NCC cargo as well, but the picture here is much more mixed between regions and industries. This of course has a significant impact on Wallenius Wilhelmsen Logistics (WWL). 

Arild Iversen, CEO of WWL, comments: "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 per cent of our capacity in lay-up during the year." 

Laying up the least efficient vessels, will allow higher utilisation of the remaining WWL fleet and substantially reduce operating costs of the laid-up vessels. 

This capacity reduction is planned in close dialogue with customers. WWL will still be maintaining its trades and port coverage, upholding service levels to customers despite the lower volumes. 

The first vessel lay-ups are currently under way at different locations in Europe and Asia, starting with two vessels in Lyngdal, Norway. 

WWL is committed to working in an environmentally and socially responsible way, and will ensure that all laid-up vessels are kept in a safe, secure and economically efficient and environmentally sound manner.