Maersk Supply Service announced plans to divest up to 20 vessels and cut down its workforce by 400 offshore jobs.
According to the marine services provider, the changes will be implemented over the coming 18 months, media sources reported.
“One of Maersk Supply Service’s prime objectives is to attempt to restore the supply demand balance in the offshore supply market,” Maersk Supply Service CEO, Jørn Madsen, was quoted as saying.
Maersk Supply Service Cuts 400 Offshore Jobs
“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,” he explained further.
The divestment plan comes as a response to several factors, including vessels in lay-up, limited trading opportunities and global oversupply in terms of offshore supply vessels.
According to Maersk Supply Service, the first ten vessels are expected to exit the fleet by the end of this year.
Four of the company’s “Stingray” new-builds will be flagged to the Isle of Man registry.
As well as this, a commercial hub will be set up in the UK to consolidate ownership and operation of the company’s project vessels, including the “Stingray” vessels.
Fleet Reduction Forces Job Cuts
Following the reduction of the fleet and the flagging of existing project vessels – “Stingray” and five other vessels – to the Isle of Man registry, the company expects to have to make approximately 400 crew members redundant.
The lay-off process will cover all nationalities and should be finalised by the end of September 2016.
“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,” Madsen explained further.
The CEO told media sources that the expected decline in the utilisation of offshore supply vessels should lead to a rising oversupply in the segment.
Maersk Supply Service owns more than 60 vessels designed to work on a wide range of offshore support tasks.