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Odfjell Inks Long Term Charters for Two Newbuildings

Odfjell Inks Long Term Charters for Two Newbuildings
As part of its fleet renewal and growth strategy, the Norwegian shipowner Odfjell has finalized long term bareboat charter deals for two chemical tankers, which will be built at a Japanese shipyard.

The bareboat charter agreements include two vessels of 36,000 dwt with 28 stainless steel cargo tanks.

Scheduled for delivery in the fourth quarter of 2019 and the second quarter of 2020, the chemical tankers’ charter agreements run for a minimum of ten years.

“These charter agreements are further steps in the renewal program of our large sophisticated chemical tankers. We believe the timing is good, and these charter agreements is a capital efficient way to achieve part of our replacement- and growth targets,” Kristian Mørch, CEO of Odfjell SE, said.

Additionally, Odfjell said that it exercised a purchase option for the 2005-built Bow Architect, a 30,000 dwt stainless steel chemical tanker with 28 cargo tanks.

The vessel, which has been on a long term charter to Odfjell since 2005, will be bought for a price of USD 16.7 million.

In late February, Odfjell entered into another long term charter agreement for two 35,500 dwt stainless steel chemical tankers, for construction at the Shin-Kurushima dockyard in Japan. These charter agreements will run for a minimum of eight years, and the vessels are scheduled for delivery in the fourth quarter of 2018 and the first quarter of 2019.

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