Singapore liner company Pacific International Lines (PIL) has laid off employees as it moves ahead with AI-driven automation.
The Straits Times newspaper reported that the greater use of automation has affected PIL’s resource requirements, primarily at its shipping agencies.
The number of job cuts was not disclosed, but a small percentage of its Singapore workforce was reported to be affected.
PIL is collaborating with the Supply Chain Employees’ Union to support the laid-off workers, who will be given enhanced severance packages that include outplacement services, training grants, extended medical coverage and a projected bonus payout for 2025.
PIL increased its employment in Singapore by more than 30% to implement AI-driven technologies to increase its efficiency and competitiveness.
One shipping source thinks the job cuts are not a cost-saving exercise but more of a strategic planning move.
“We think PIL will be logging over $1bn profit for 2024,” said the source.
The company is renewing its fleet with dual-fuel vessels.
It has spent more than $1.65bn in ordering 10 LNG dual-fuel newbuildings this year.
PIL, the 12th-largest liner operator in the world, was established in 1967 by the late Chang Yun Chung.
It underwent restructuring in 2021, with Heliconia Capital Management, a subsidiary of state-owned investment company Temasek Holdings, acquiring a majority stake through a $600m investment.
PIL has set a goal of net zero emissions by 2050.
