According to Capt. Anurag Mathur, the Managing Director of Commercial Services at Wallem Group, market factors have opened up a notable chance for Wallem to expand its specialized business segment, as reported by Xinde Marine.
Services in the industry
Wallem Commercial Services, launched in 2008, offers a diverse range of services in the maritime industry. The executive appointed in January 2023, Capt. Anurag Mathur has expressed enthusiasm for expanding the company’s portfolio across various vessel types. With his previous experience in senior managing directorships at prominent ship-owning and ship-management companies, Capt. Mathur feels trusted by the Wallem board to drive growth.
Wallem’s commercial services encompass ship and cargo management, broking, chartering, sale and purchase, as well as insurance and advisory financial services. Additionally, they provide loan facilities and distressed asset management. The company’s conventional ship management agreements have already attracted over 200 vessels, indicating an established and growing presence in the industry.
Capt. Mathur highlights that the relationship between Wallem’s commercial services and vessel owners is distinct. Owners rely on Wallem’s expertise in areas that are typically inaccessible to third parties, such as back-office support and asset financing. This unique collaboration sets Wallem apart and contributes to its success in the market.
Long-term interest
Wallem, with its 120 years of shipping expertise, is positioned to assist owners in navigating the challenges of persistent market volatility, sanctions ambiguity, supply chain disruptions, and ship emissions requirements. Capt. Anurag Mathur emphasizes the value of consulting with Wallem’s independent commercial services, which offer financial analysis, project evaluation, and investment project management. Opportunities are particularly strong in the bulk carrier and chemical tanker sectors, while owners in the containership market may seek asset refinancing due to over-ordering and deteriorating rates. Capt. Mathur also highlights the importance of addressing mandatory Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) requirements, urging owners to take action before it’s too late and stressing the need for comprehensive advice to meet these obligations. Additionally, the impending mandatory implementation of the EU Emissions Trading Scheme (ETS) from January 2024 will have a significant impact on ship owners, DOC holders, and their commercial partners, further underlining the urgency for owners to seek the right guidance. The industry-wide focus on reducing carbon profiles over time, as mandated by the GHG & CII framework, requires proactive assessments of asset longevity and evaluating the return on investment of extending the life of older vessels.
In summary, owners can benefit from Wallem’s extensive shipping knowledge and independent commercial services amidst market uncertainties. The company’s expertise is particularly relevant in the bulk carrier and chemical tanker sectors, where prospects are strong, and in addressing regulatory requirements such as EEXI and CII. With the impending mandatory implementation of the EU ETS, ship owners must act swiftly to understand the impact and seek appropriate advice. Additionally, long-term carbon reduction plans necessitate assessing asset longevity and evaluating the ROI of extending the lifespan of older tonnage.
Independent evaluation
Owners in the shipping industry are facing a plethora of options from equipment suppliers, such as energy-saving devices and low-carbon fuels, as well as software solutions claiming to solve sustainability challenges through analytics. However, they are cautious about making the wrong investment choices when seeking Carbon Intensity Indicator (CII) reductions. Capt. Anurag Mathur emphasizes the need for independent technical partners to evaluate the feasibility of new technologies and a commercial partner to assess return on investment (ROI) and explore alternative options like different routes or trading patterns. Wallem Commercial Services aims to be a one-stop shop, providing assessment, financing facilitation, and project management services to help owners implement sustainable measures effectively. The company’s financial consultancy, loan facility management, and transaction support, including connections to Green Funds, are expected to play a significant role in its growth plans.
Capt. Mathur highlights the potential returns for owners who invest in retrofitting older assets to comply with tightening carbon emission limits, citing the success of exhaust gas scrubber technology investments ahead of the IMO 2020 fuel sulfur content restrictions. Furthermore, owners require comprehensive commercial services to adapt to shipping’s era of transparency. Smaller owners may lack the resources to navigate the benchmarking culture or hesitate due to the costs associated with engaging multiple experts. Wallem Commercial Services aims to address these challenges by offering end-to-end solutions, serving as a single point of contact for owners’ commercial and technical needs. The company’s vision is to partner with customers throughout the entire process, providing a seamless and comprehensive service.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: Xinde Marine
