Merger starts trend

Union of companies heralds a trend as ISM Code and poor trading bites.

At the end of October two well-established names in ship management – V Ships and Celtic Marine – merged. The primary reason given behind the merger was the increased regulatory pressures, although there were other factors.

Noted Tullio Biggi, president of the parent company Vlasov Services Corp: “In the face of increasing regulatory pressures and worsening shortages of experienced and qualified manpower, and at a time when many shipowners are exposed to very poor freight markets, this merger increases our ability to offer services of the highest standard.” One major impact affecting the market has been the effect of the ISM Code, and V Ships believes that the full impact of this legislation will not be felt for another year.

With the merger the company will manage a fleet of some 400 ships for about 100 clients. Of these, about 150 ships are under full technical management. Celtic is seen as offering added value to V Ships because of its strength in manning, while V Ships is known for its skills in technical management. Under the terms of the merger the name Celtic will continue as a separate division, with primary responsibility for offering manning services.