Odfjell exits short-sea ship business

Norwegian shipping and tank terminal company Odfjell SE has entered into a sales agreement for the last three 9,000 dwt short-sea vessels that have operated in the company’s regional trade in Asia.

The three units — Bow Dalian, Bow Fuling and Bow Nangang — have been reportedly sold to German shipping company Essberger.

As informed, 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 re-delivered 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. Odfjell has, through this transaction, completed the transition to a sole focus on deep sea logistics within our shipping segment,” the company said.

The transaction will result in a $21 million one-time impairment in the Norwegian company’s 3Q21 results as the vessels are re-classified as assets held for sale.

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

Earlier this year, Odfjell also sold two LPG-ethylene carriers, exiting the gas carrier business.