Odfjell Sells Its Last Short-sea Vessels

Norwegian shipowner Odfjell SE said it has sold off the last of its short-sea chemical tankers as it sharpens its focus on larger ships in the deep sea segment.

The company announced Tuesday it has entered into a sales agreement for the last three 9,000 dwt short-sea vessels—Bow Fuling, Bow Dalian and Bow Nangang—that have operated in the company’s regional Asian trade. The sale marks an exit from Odfjell’s short-sea regional trade in Asia as the remaining vessel on a time charter to Odfjell will also 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 in a press release. "Odfjell has, through this transaction, completed the transition to a sole focus on deep sea logistics within our shipping segment."

Odfjell said the transaction will result in a $21 million one time impairment in its third quarter 2021 results as the vessels are re-classified as assets held for sale.

Closing and delivery is scheduled to January/February 2022 and net cash proceeds after repayment of loans and commission is approximately $1 million.