Odfjell offloads shortsea fleet

Norwegian owner Odfjell has agreed to sell the last three 9,000 dwt shortsea vessels that have operated in the company’s regional trade in Asia. 

The sale marks an exit from Odfjell’s shortsea regional trade in Asia as the remaining vessel on a timecharter to Odfjell will also be redelivered to its owners in January 2022. The delivery is scheduled for January/February 2022, and net cash proceeds after repayment of loans and commission are around $1m.

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

The transaction will result in a $21m impairment in Odfjell’s third-quarter results as the vessels are reclassified as assets held for sale.

Earlier in August, Odfjell exited the gas segment after reaching an agreement with BW Epic Kosan to sell two 9,000 cu m ethylene carriers for cash and around a 4.3% stake in the company. The Bergen-based company has a fleet of approximately 90 chemical tankers.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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