Eimskip will by mid-October change the company’s container sailing system to increase service level and lower fixed operating cost. The changes are an important milestone in the company’s journey to improve profitability and strengthen its core operation. Furthermore, the changes pave the way for the Royal Arctic Line (RAL) cooperation scheduled to commence in Q1 2020.
The new system will simplify the European and Scandinavian sailing routes and enables the Company to offer both one day later departure and shorter transit time from Rotterdam and Aarhus to Iceland. Eimskip will continue to provide express services for the export and import of fresh products to and from Iceland and Faroe Islands.
The Company will reduce the number of vessels by one on the European routes and at the same time start operating larger vessels maintaining similar capacity at lower unit cost. Recent investments in the port of Sundahöfn with extended container terminal, new gantry crane and larger quay enable larger and more efficient vessels in operation.
Eimskip will formally start to operate the new sailing system by mid-October.
The key highlight for the changes include increased and better service to import customers in Iceland with a day later departure and shorter transit time from main ports in Europe. This will create additional opportunities in the import of fresh products. There will also be simplified sailing routes and larger vessels increase reliability in the sailing schedule. The Scandinavian line (Red line) will be ready for RAL cooperation under the Vessel Sharing Agreement (VSA) once the two 2150 TEUS new-buildings will be delivered. Furthermore, the number of vessels in the container liner system reduced will be reduced by one but the capacity will be maintained at a similar level with larger vessels and which will have the further benefit of lower unit cost per TEUS.
Eimskip is target net operating cost reduction with the overall changes, including the cooperation with RAL, is in the range of EUR 7.0-9.0 million on an annual basis but will not be fully realized until after the RAL cooperation commences and is subject to various important operational factors
Vilhelm Már Þorsteinsson, Eimskip's CEO, stated: “Eimskip has in recent months been on a journey to increase profitability and strengthen its core operation. We are pleased to be able to offer services with shorter transit time from main ports in Europe to Iceland and a day later departure creates additional opportunities for importers of fresh products. Additionally, the new system strengthens the export service from the Faroe Islands and is well suited to support further growth in Trans-Atlantic services."
"The Company’s target net operating cost reduction of the new sailing system, and the cooperation under the VSA with RAL, is in the range of EUR 7.0-9.0 million on an annual basis. However, it is important to note that the target is subject to various critical factors such as, operational efficiency and reliability of the new-buildings and chartered vessels, efficient port operation, the cooperation with RAL and development of oil markets,” he concludes.
For more information: 
Edda Rut Björnsdóttir
Eimskip
Tel: +354 825 3399
Email: investors@eimskip.is
https://www.eimskip.com/