According to the company, its overcapacity was equal to a fleet of 10-15 vessels net of already planned redelivery of charter vessels. For this reason, it decided to recycle older vessels, while at the same time cutting operational costs.

Commenting on this decision, the company explained that the ships will undergo green recycling, and they will reported accordingly to the Ship Recycling Transparency Initiative.

In addition, up to 10 ships will be placed in cold lay-up, ensuring additional cost reductions.

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What is more, Wallenius Wilhelmsen added that of the 11 vessels that are available for redelivery at the start of the year, four have been redelivered, with three more being redelivered before the end of June. Moreover, one ship has been extended and the rest are under consideration.

Additionally, two newbuildings that are being constructed will be further delayed.

Furthermore, due to the uncertainity by COVID-19, the company's management has reduced capex spend to a minimum.

This includes deferring some larger expansion projects in the company’s landbased operations, while it also cancelled four scrubber retrofits.