Eastern Pacific Shipping Announces Strategic Exit from Chemical Tankers
In a surprise development, Singapore-based Eastern Pacific Shipping announced its immediate exit from the chemical tanker segment. It follows the trend for consolidation in the segment after several other large transactions, while the company says it will permit it to focus on growth in its core businesses.
The company owned by well-known shipping magnate Idan Ofer reports that it expects this week to complete the sale of its fleet of 14 vessels, including three newbuilds. The vessels range in size between 19,000 to 26,000 dwt and are currently commercially managed through the Ace Quantum Chemical Tanker pool.
The agreement is a combined en-bloc transaction with seven of the vessels going to Ace Tankers. The other seven, including the three newbuilds, will go Womar Tankers. The vessels will be renamed under their new ownership.
“The transaction marks EPS’ departure from the chemical tanker sector, enabling the group to further concentrate its resources and investments on its core business segments and future growth opportunities,” the company said, announcing the sale. While a small portion of the company’s current fleet of 350 managed vessels, it called the transaction a “strategic exit.”
EPS is pursuing a strong growth program focusing on its four primary areas, containerships, dry bulk, gas, and tankers. It pointso ut that it currently has more than 150 vessels on order across its multiple segments. It has also recnelty move to expand in areas such as car carriers. Last year, it also completed the consolidation of CoolCo, an operator of LNG carriers.
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The company is also at the forefront of the green transition. It has been testing biofuels and carbon capture. It recently also installed wind-assisted propulsion with Bound4Blue wing sails on one of its MR tankers.
The exit from chemical tankers follows other consolidation moves in the sector, including last year, as MOL Chemical Tankers acquired Fairfield Chemical Tankers and Stolt-Nielsen bought out Odfjell’s share of a joint venture.