Oslo-listed car carrier company Wallenius Wilhelmsen is reactivating part of its idled fleet to replace vessels it had chartered in on a short-term basis.
The company is bringing back nine of the 16 ships it has in cold lay-up, following the steep reduction in demand experienced earlier last year.
This will take place during the first quarter, as charter costs rise.
"Flexibility in the fleet has been a core strategic choice since the inception of Wallenius Wilhelmsen, ensuring our ability to adjust the fleet to our needs and shifting market demand," the company's chief executive Craig Jasienski said.
At the onset of the Covid-19 pandemic, Wallenius Wilhelmsen took decisive action to meet challenging market conditions by cancelling dividends, as well as recycling and laying up vessels to preserve cash and reduce costs.
In March, the company said it would remove up to 15 vessels from its fleet via a combination of scrapping and lay-ups to prepare for what it described as a challenging time ahead.
Cautious outlook
While the operator maintains its cautious volume outlook, scarcity of capacity and increasing rates in the time charter market make reactivation of vessels in layup a more cost-competitive option, the company added on Tuesday.
Wallenius Wilhelmsen operates about 123 carriers servicing 15 trade routes to six continents.
The company returned to profit in the third quarter as volumes picked up, helping it to better analyst predictions.
Earnings were $4m in the quarter ending on 30 September.
The company sold a $224m bond in Oslo last year to maintain liquidity.
