Farstad lays up two PSVs. Cuts workforce
- Business & Finance
Norwegian offshore vessels owner Farstad Shipping has laid up two of its platform supply vessels, leaving 35 people without work.
The company has laid up PSV Far Server and PSV Far Spica citing a continued weak offshore market.
“We are currently experiencing a very demanding offshore market. Consequently, we have to lay up two vessels and give notice to competent employees. We regret this. Our focus onward is to secure new contracts for our crews and vessels,” says Karl-Johan Bakken, CEO of Farstad Shipping.
Thirty five offshore workers have been informed they will be laid off. Farstad Shipping now has 3 vessels laid up.
What is lay-up?
In shipping, the term lay-up or laid-up, refers to the practice of taking a ship “out of service” in times of economic downturn when the supply of ships exceeds demand, a definition by Lexology explains.
It is distinct from taking a ship temporarily out of service for dry-docking or for repairs or simply idling a ship for short periods waiting for a cargo or waiting for orders from a charterer.
The objectives of lay-up are, first, to reduce daily operating costs during the period of lay-up and, secondly, to maintain the safety, security and protection of the ship and the marine environment.
Offshore Energy Today Staff