Wilh. Wilhelmsen sees extended Weak RO/RO Market

Posted by Joseph Keefe September 15, 2016

Car and truck shipper Wilh. Wilhelmsen Asa made the following remarks and announcements on it's capital markets day on Thursday:

* Expects fundamentals in car/truck carrier shipping market (PCTC) to remain weak for another 2-3 years

* CEO Jan Eivind Wang says capacity utilisation globally is around 80 pct

* CEO says 80 pct is not good enough and we need to operate around 90 pct (to have good rates)

* Lower utilisation is a combination of a drop in the market, specially in the high and heavy which are hit by the collapse in the commodity market leading to cut in investments (like in the mining industry)

* In addition there are more newbuildings

* Expects activity in mining industry to pick up gradually but not to the level seen at the peak in 2012

* CEO says WWASA has somewhat higher utilisation than the 80 pct average globally

* Due to weak and rapid change in the market WWASA has decided to merge its companies with Wallenius, announced on September 5.