World Wide Supply lays up two PSVs
- Business & Finance
World Wide Supply, a Norwegian offshore service vessel company, has laid up two platform supply vessels due to a weak offshore spot market.
The World Diamond and World Pearl vessels, both PSVs of the DAMEN PSV 3300 CD design, served a contract for GDF Suez in the North Sea through January and half of the February this year, but after that, they have worked in the spot market in the UK sector of the North Sea.
The company also said that a total number of approximately 48 workers will be given notice of termination. At March 31, the company had 192 employees, of which 188 sailors and hired personnel.
World Wide Supply`s fleet currently consists of 6 PSV vessels where four are on long term contracts with Petrobras in Brazil and two will now be laid up. WWS has said that the cash flow from the Petrobras-contracted vessels will cover financial expenses and lay up costs for the World Diamond and World Pearl vessels.
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.
More of the same in Norway
With this move World Wide Supply is taking after its peers. Solstad Offshore reported last week that due to a continued weak offshore market, particularly for the PSV segment, the company laid up the PSVs Normand Skipper and Normand Vester, and as a consequence had to lay off about 50 offshore workers.
Also, earlier this month, Farstad Shipping laid up two of its platform supply vessels, leaving 35 people without work.
Offshore Energy Today Staff