Royal Arctic Line and the Icelandic shipping company Eimskip have today received the formal approval from the Icelandic Competition Authority (ICA) to enter a Vessel Sharing Agreement. This means that a West Nordic cooperation can now be established with sharing of vessel capacities, amongst others between Greenland and Iceland, to the benefit of all parties.
“It is a historic event for Greenland, Iceland and for that matter Faroe Islands to see this approval from the Icelandic Competition Authority today. It allows for an implementation of an agreement which will make the seaborne trade of the West Nordic more efficient. It is very good to see that we are now able to operate to and from Iceland in the same manner as in the rest of the world, where companies can compete on service while sharing expensive capacity. This reduces both costs and the environmental footprint” says CEO of Royal Arctic Line, Verner Hammeken.
The intended capacity sharing is an important part of the transformation of Royal Arctic Line, and the news about this last piece of required to commence the vessel sharing agreement has been received with great satisfaction.
“Vi look forward to offer our customers stronger rate development and weekly service all year around. This is made possible by the economy of scale of this agreement that allows for more cost effectiveness while providing a better service” continues Verner Hammeken, CEO of Royal Arctic Line.
Today, both Royal Arctic Line and Eimskip operate in the relatively small markets between Greenland, Iceland, Faroe Islands and Europe, and here in particular it is interesting to cooperate on the basic maritime services. The decision of the Icelandic Competition Authority therefore creates great excitement.
- · The Vessel Sharing Agreement means that Royal Arctic Line will now also offer transportation between Iceland and Europe. According to current plans the first departure in vessel sharing will be in December 2019.
- · Now that the final conclusion has been received from the Iceland Competition Authorities, Royal Arctic Line can now focus on the continuation of the important transformation of the company, and the service to and from Greenland.
- · During the fall of 2019, three new ocean going container vessels are expected to be delivered, one owned by Royal Arctic Line and two owned by Eimskip. The vessels were ordered at a time where oil and steel prices were favourable to ship owners.
For more information please contact
CEO Verner Hammeken
Phone: +299 34 91 00