Odfjell, a Norwegian owner of chemical tankers, has ordered two new 40,000 dwt stainless steel tankers in Japan. These contracts have been signed as part of the company's fleet renewal program, and it is expected that these tankers will be added to Odfjell's fleet in 2029 as per the contract.
Contract Details
Odfjell announced these agreements in its third-quarter report and confirmed that the tankers will be built at Kitanihon Shipbuilding. The exact date of the contract signing and the names of the ship ownership partners have not been disclosed, nor have the rental rates and contract duration been specified.
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Expansion of Fleet Renewal Program
These two new tankers will be added as separate commitments for lease to Odfjell's fleet, thus continuing the company's expansion program for super-segregator tankers without the direct purchase of another new tanker. As of the end of September, Odfjell had 18 tankers in its pipeline, including four super-segregator tankers for ownership.
Odfjell's services also include the retirement of older tankers. The company has confirmed that two chemical tankers named Bow Elm and Bow Lind, built in 2011, have been sold. This transaction, previously reported, will result in an increase in capital of $9.6 million and approximately $34.7 million in positive cash flow.
Odfjell's CEO, Harald Fotland, stated that the chemical transportation market remains unstable, and cargoes of vegetable oils and biofuels are helping to compensate for weak chemical transport. Additionally, higher revenues from MR (Medium Range) tankers are causing swing vessels to move towards chemical trades.
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