Maersk Supply Service is planning to reduce its offshore vessel fleet by up to 20 vessels and axe 400 jobs over the next 18 months, the AP Moller-Maersk Group subsidiary revealed this week.
The company says the deep cuts come as part of a divestment plan in response to vessels in lay-up, limited trading opportunities, and the global over-supply of offshore supply ships, all the result of the prolonged downturn in the offshore oil and gas market.
“One of Maersk Supply Service’s prime objectives is to attempt to restore the supply demand balance in the offshore supply market. This is why the vast majority of the divested vessels will be recycled or modified by their new owners to compete outside their present segments,” said CEO of Maersk Supply Service, Jørn Madsen.
“We are facing unprecedented market conditions, and regrettably we have to further adjust our crew pool. It is an unfortunate, but necessary step to safeguard the future of our company,” he added.
As a result of the cuts, the company said around 400 crew members will be made redundant. The redundancies are expected to be completed by the end of September, while the first vessels are expected to leave the fleet by the end of the year.