Norwegian chemical tanker owner/operator Odfjell is moving forward with a fleet transformation and upgrade program that could see up to 12 new vessels join the fleet in the future.
Odfjell disclosed in its annual report that the company is considering building 6 to 12 large stainless steel chemical tankers to replace some of its older vessels. In the next three to eight years, the company expects to spend US$500 million to US$900 million to upgrade its fleet, depending on the ship configuration, shipyard capacity, new ship construction costs and market factors. Odfjell also pointed out that if the new vessels are chartered on a long-term basis, the company’s investment costs may be reduced.
While the above newbuildings have not yet been committed or ordered from shipyards, construction is expected to commence in 2027, depending on shipyard capacity and market conditions,” Odfjell said. The new vessels will be equipped with stainless steel tanks and will utilize the latest in energy efficiency and fuel technology, but due to their configuration, their cost remains difficult to estimate.
According to Odfjell’s annual financial results, the company achieved its strongest financial performance ever in 2024, with a full-year net profit of $278 million.Odfjell ordered three new vessels in the third quarter of last year, two 25,000 dwt stainless steel chemical tankers from Japan’s Shin Kurushima Dockyard and one 49,000 dwt chemical tanker from Yangzi Mitsui Shipbuilding. The three vessels were ordered by a third party owner and held by Odfjell through long term charter agreements.
By the end of 2024, Odfjell has a fleet of 71 chemical tankers, including 46 owned or chartered vessels, 4 bareboat chartered vessels, 14 time chartered vessels and 3 pooled vessels.
In terms of newbuildings, Odfjell has ordered a total of 18 vessels, of which 16 are under long-term time charter with purchase options and 2 are owned vessels. The 18 new vessels are expected to be delivered between the second quarter of 2024 and 2028, with 17 and 1 to be built by shipyards in Japan and China, respectively.
In addition, Odfjell signed time charters in March this year for two 35,000 dwt stainless steel chemical tankers, each with an eight-year charter period, which are expected to join the fleet in the fourth quarter of 2027 and the second quarter of 2028.
Odfjell has pledged to reduce its carbon intensity by 57% by 2030 compared to 2008 and to have a carbon-neutral fleet from 2050. To achieve its goals, the company says it will only order vessels with net-zero carbon emissions.