Strategic thinking from Wallem Commercial Services

Financial advisory and asset managing functions help smaller owners and industrial groups alike rise to changing market complexities, writes Capt. Anurag Mathur, Managing Director, Wallem Commercial Services.

Launched in 2008, Wallem Commercial Services initially focused on commercial ship and cargo management, chartering and sale & purchase, but our offering has subsequently developed to include insurance and advisory financial services, loan facility and distressed asset management.

Today, the division offers a one-stop service, and can even act a shipowner’s commercial arm on behalf of companies that do not have the necessary expertise or contacts in-house. In doing so, we leverage Wallem Group’s experience in areas usually closed to third party managers – such as back-office support and asset financing.

In Asia, our expansion has been strongly encouraged by the entry of multinational conglomerates into operational shipping, which they see as providing a lever for growth.

Our partnership with BYD provides a case in point. Wallem started providing BYD with day-to-day operational support when the group chartered its first PCTC - in cargo stowage, route and bunker planning. We went on to work closely with BYD to support other functions, including cargo bookings and vessel performance management; now we are helping BYD manage its owned fleet.

It takes expertise as well as effort for an industrial group to become a ship owner, and Wallem Commercial Services is proud to have helped its larger clients make the transition, by supporting the strategy to lay foundations and by building professional teams.

At the same time, our unique portfolio of capabilities puts Wallem Commercial Services in a position to help smaller shipowners overcome other market challenges and complexities that may otherwise prevent growth. We can provide the expertise to help owners expand into new markets, develop new routes or vessel type expertise, or grow from a local base into a global operation.

Wallem Group also has historic relationships with oil majors and big commodity players. If a regional Asian owner wants to work their ships worldwide, for example, Wallem Commercial Services can facilitate discussions with big name charterers who only work with a proven ship manager partner.

Meanwhile, based on its group activities, Wallem has experienced strong growth in alternative financing, as appetites for shipping among traditional bankers has softened. We have also developed a growing niche position with Asian financiers due to our close relationship with Chinese and Japanese leasing houses.

But the changing complexion of investments does not change investor preoccupations: in 2025, value for money continues to dominate decisions on vessel efficiency, the impact of digital technologies and the alternative fuels that promise decarbonisation.

For these reasons Wallem itself has invested in in-house software which helps evaluate whether and how vessels achieve best environmental ratings under the CII regulations. We can also work with owners’ own IT systems to ensure regulatory compliance with mechanisms such as the EU ETS.

By expanding its range of capabilities, Wallem Commercial Services continues to work alongside its partners to boost their performance. Increasingly our discussions with owners - whether on investments and fleet renewal, or digitalisation and decarbonisation - are at the strategic level and based on 10-15 year horizons.

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