India’s Chambal Fertilisers & Chemicals is selling its shipping division, putting five aframax tankers up for sale.
The company said in a release it requires fund to set up new ammonia-urea project in Rajasthan and the decision was taken to offload its fleet based on “the long-term shipping business outlook”. The decision to jettison its shipping division will require shareholder approval.
In 2004, Chambal acquired India Steamship, one of India’s oldest shipping companies.
Aframaxes are likely to be edged out by larger tanker types going forward, commented UK analysts Maritime Strategies International (MSI) in a tanker outlook carried on this site earlier this week. “Aframaxes are likely to see fewer benefits from strong Middle East output than their larger counterparts and production in established loading regions such as Latin America and the North Sea is vulnerable to low crude prices and competition from larger sizes and long-haul trades,” MSI noted.