Wilh. Wilhelmsen sees extended Weak RO/RO Market
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.
Reporting By Terje Solsvik, Ole Petter Skonnord
