Wellard, once a dominant force in Australia’s livestock shipping industry, has reached a pivotal turning point. After decades of transporting live animals across the globe, the company has made a significant decision that will reshape its future. Facing mounting challenges, shifting market dynamics, and increasing regulatory pressures, Wellard is now charting a new course — one that signals the end of an era and the beginning of an uncertain yet strategic transition.
Wellard Sells Last Ship
Wellard Ltd, a household name in livestock shipping, was renowned for its state-of-the-art vessels designed to transport live animals across the globe. At its peak, Wellard operated five specialised ships, facilitating Australia’s booming live export trade. However, recent years have seen the company grapple with mounting challenges and the fleet was sold one by one starting in 2017. A company strategic review was also begun in September 2024.
On 14 January 2025, Wellard notified the ASX that a Turkish agriculture company, Göktaşlar, had agreed to buy its very last ship, the large livestock carrier MV Ocean Drover, for the US-dollar equivalent of $81.2 million. A Memorandum of Agreement for Sale and Purchase of Ships required by the Norwegian Shipbrokers’ Association mandates that Göktaşlar must pay five per cent of the sale price by 17 January 2025 and another five per cent after the agreement is in effect.
The 23-year-old MV Ocean Drover has been seen as the crown jewel in Wellard’s fleet. At 176 metres long and boasting 13,500 DWT, it had a capacity to transport 20,000 cattle or 75,000 sheep.
The plan calls for Wellard to finish Ocean Drover’s remaining charter bookings through June 2025, as the sale undergoes shareholder approval at Wellard. If that is approved, the official handover to Göktaşlar will take place in July 2025, after which the ship will be under the control of a subsidiary based in the Marshall Islands, Meteors Shipping SA. It will also mark the end of Wellard’s 46 years as a livestock shipping firm.
The road to the Drover’s sale has not been all calm waters. In November 2023, Wellard was engaged in a dispute with the ship’s financiers in Singapore, Ruchira Ships Ltd, over a bareboat charter for the Drover it was mandated to handle until 2032. UOB proceeded to wind up Ruchira in January 2024, with KPMG assigned as liquidators; Wellard finally assumed control of the vessel in September 2024.
Wellard’s Next Chapter: Life After Shipping
With its ships sold, Wellard faces a pivotal moment in its history.
Wellard officials said shareholders would be given the net sales from selling the Ocean Drover – at $0.15 per share – plus additional surplus money. At the same time, Wellard is also moving to delist from the ASX and keep working as a public unlisted firm, ending a decade-long run that started with an IPO estimated at $556m. Trading was paused on 10 January 2025 pending the announcement of the Drover sale.
Wellard officials also noted that there’s still one last potential source of income it can rely on before considering other moves – compensation from a class-action lawsuit against Brett Cattle Co. The company was one of the claimants in the case, which the Federal Court of Australia ruled in their favour back in 2020, but it has not listed the claim as an asset because the federal government has rejected the ruling pending resolution of claims aside from Brett.
The company’s decision to sell all its ships marks a significant pivot in its business strategy. With no hulls left to its name, Wellard must now reimagine its future. This dramatic shift underscores the impact of external pressures, including Australia’s increasing scrutiny of live exports and a volatile global shipping market.
Live Export Ban Push Reshapes Wellard’s Future
A major factor influencing Wellard’s strategic decision has been the growing push to ban live exports in Australia. Animal welfare concerns have driven public sentiment and political action against the trade, leading to tighter regulations and increased compliance costs for exporters. This shift has had a profound impact on companies like Wellard, whose primary business relied on the live export market.
A live export ban set to take effect in May 2028 has not only challenged the viability of livestock shipping companies but also raised questions about the future of Australia’s agricultural exports. For Wellard, the diminishing prospects of live export profitability likely played a pivotal role in its decision to exit the shipping industry.
Wellard’s Ship Sales: Survival or Strategy?
The sale of Wellard’s ships may be viewed through two lenses: a response to financial strain or a deliberate strategic move. The company has experienced financial difficulties in recent years, exacerbated by operational losses, variable demand, and rising regulatory costs. Selling the fleet provided an opportunity to liquidate assets, reduce debt, and stabilise its financial position.
On the other hand, the divestment of its fleet could signal a strategic pivot. By shedding the high costs associated with owning and maintaining ships, Wellard might be positioning itself to explore new business opportunities that align with evolving market trends.
Wellard’s Exit Signals Industry Challenges
Wellard’s decision reflects broader challenges facing the Australian shipping and live export industries.
Regulatory Pressures
Increased scrutiny of live exports has led to stricter welfare standards and higher compliance costs, making the trade less profitable.
Market Volatility
Global economic instability and trade tensions have created an uncertain environment for shipping companies.
Environmental Concerns
Growing awareness of environmental sustainability has led to calls for greener shipping practices and alternatives to live exports.
For other players in the industry, Wellard’s transition serves as a cautionary tale. Companies must adapt to shifting market conditions and regulatory landscapes to remain competitive.
Conclusion
The sale of Wellard’s fleet marks the end of an era for one of Australia’s most prominent livestock shipping companies. While the decision reflects the challenges of operating in a shifting industry, it also highlights the importance of resilience and strategic thinking in navigating change.
As the live export industry continues to evolve, Wellard’s next moves will be closely watched. Whether the company reinvents itself or steps away from the market entirely, its story serves as a powerful reminder of the need for businesses to adapt in the face of adversity.
DISCLAIMER: This article is for informational purposes only and is the opinion of the author. The information is based on the most accurate data at the time of writing. AVANTE PARTNERS has no financial interest with companies mentioned in the article and is not involved with any of their strategic plans.
