The company says freight demand may be as much as 10% lower in the first quarter. Image Credit: Wallenius Wilhelmsen
Ro-ro shipping company Wallenius Wilhelmsen has cancelled four scrubber installations as it seeks to cut costs while the COVID-19 pandemic reduces its income.
The company has withdrawn a proposal for a dividend to shareholders for 2019, and is planning to recycle four ships and place up to ten more in cold layup, it said in an emailed statement Monday.
"Given the situation and to preserve cash until we have more certainty, management has reduced capex spend to a minimum, prioritizing safety and maintenance critical expenditures," the company said.
"This includes deferring some larger expansion projects in our landbased operations as well as the cancellation of four of the remaining scrubber installations."
In a March 6 statement the company said the coronavirus pandemic could cut freight demand for the first quarter by as much as 20% compared with the same period a year earlier.