Odfjell Exits Short-Sea Asian Chemical Tanker Trade

Chemical tanker operator Odfjell has disposed of its last short-sea vessels in the Asia-Pacific market, tightening up the firm's focus on deep-sea trade. 

The firm said that the sale marks Odfjell's exit from the short-sea regional trade in Asia. It has one last chartered-in vessel in the segment, which will be redelivered to its owners in January 2022. 

"These vessels have not been able to deliver satisfactory results and we have consequently taken the decision to exit this niche market," the company said. "Odfjell has, through this transaction, completed the transition to a sole focus on deep-sea logistics within our shipping segment."

Closing and delivery are scheduled for the first quarter of 2022, and the net proceeds (after paying off loans and commissions) will come to about $1 million. Going forward, Odfjell expects that the sale will improve the bottom line. 

The vessels sold include the Bow Dalian, Bow Fuling and Bow Nangang. Bow Dalian was the vessel moored alongside the chemical tanker Stolt Groenland when the Groenland exploded at port of Ulsan, South Korea in September 2019; the Bow Dalian escaped damage. 

Odfjell retains a fleet of about 80 oceangoing chemical tankers of up to 75,000 dwt, cable of carrying bulk liquid chemicals, acids, edible oils, potable alcohols and clean petroleum products. It also maintains a small regional fleet in the Brazilian cabotage trade through its subsidiary Flumar.

The firm has been consolidating its focus on its core deep-sea chemical tanker business for some time. In August, Odfjell announced its final exit from the gas carrier segment with the sale of the LPG/ethylene carriers Bow Guardian and Bow Gallant.