Maersk Supply Service Will Release 400 Crew Members and Here Is Why

Maersk Supply Service has disclosed that over the next 18 months, it will sack 400 crew members as it cuts its fleet by 20 vessels. According to the company, this move is not a direct reaction to the current situation in Nigeria.

Rather, according to information made available to the Guardian, the company has had to react to vessels in lay-up, limited trading opportunities, and the global over-supply of offshore supply vessels in the industry.

In addition, Chief Executive Officer of Maersk Supply Service, Jørn Madsen, said: “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,”

With 10 of these vessels to be divested in 2016, the divestment exercise will result in rendering about 400 crew members redundant. This redundancy, Madsen said, would be cutting across all nationalities and will end in September this year.

“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.

Parts of this article originally appeared in Guardian Newspapers.