International Shipholding Corporation (NYSE: ISH) announced today that LMS Shipmanagement, Inc., a wholly-owned subsidiary of International Shipholding Corporation, and Wallem Group Ltd. have agreed to form an alliance encompassing the ship management, crewing, and marine technical services for ISH’s International Flag vessels. While LMS and Wallem will continue to operate independently, the alliance provides that, based on expertise, the daily functions will be divided between the two companies. Thus, the alliance will allow ISH to take advantage of the economy of scale of a larger ship management organization.
International Shipholding Corporation’s U.S. Flag vessels will not be managed by this alliance and will continue to be operated from Mobile, Alabama.
“We have a long history of partnering with international companies to enhance our position in niche markets and while we entertained discussions with a number of ship managers, it became quite clear that the Wallem Group provided the right platform for our International Flag ship management,” International Shipholding Corporation’s Executive Vice President, Peter Johnston, said.
Through its subsidiaries, International Shipholding Corporation currently operates 37 vessels with cargo carrying capabilities including tankers, bulk carriers and PCTC’s.
Wallem Group’s ship management companies manage more than 400 vessels from its offices in Asia and Europe.
“In the current financial environment, Wallem offers ship owners a unique opportunity to utilize any or all of the services offered by Wallem and take advantage of a large fleet, no matter the size of their own,” Wallem Group Managing Director Simon Doughty said.
It is expected that the changes associated with the alliance will be fully implemented by the end of 2012.
About International Shipholding Corporation
International Shipholding Corporation, through its subsidiaries, operates a diversified fleet of U.S. and international flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers primarily under medium to long-term charters and contracts.