Odfjell eyes up to a dozen newbuilds in fleet renewal drive

Norwegian chemical tanker owner and operator Odfjell is forging ahead with fleet transition plans that could likely see up to a dozen additional newbuildings join the fleet in the future.

The Oslo-listed company revealed in its annual report it is considering a potential construction of between six and 12 large stainless steel units to replace part of its ageing vessels.

“While these vessels are not yet committed or ordered, we anticipate commencing construction in 2027, contingent on shipyard capacity and market conditions,” Odfjell said.

The company estimated the initiative could potentially cost between $500m and $900m over the next three to eight years, subject to vessel configurations, shipyard availability, pricing and market considerations. Odfjell noted, however, that the investment on its part may also be lower if some of the newbuilds are brought in via long-term time charters.

“We recognise that the replacement of our supersegregators will need to form part of our owned and controlled fleet,” the company said, adding that these vessels, which feature multiple segregations and stainless steel tanks, will incorporate the latest in energy efficiency and fuel technology, but that their cost remains difficult to estimate due to their configurations.

At the end of 2024, Odfjell’s chemical tanker fleet counted 71 vessels, including 46 owned or leased, four on bareboat charters, 14 on time charters, and three pool vessels. The company has 18 newbuildings on order, of which 16 are contracted under long-term time charters with purchase options, and two will be owned. Of these vessels, one is under construction in China, and the remaining 17 are being built in Japan for delivery between the second quarter of 2024 and 2028.

In March this year, the group also sealed a deal to bring in two 35,000 dwt stainless steel vessels on time charter for eight years each. These should join the fleet during the fourth quarter of 2027 and the second quarter of 2028.

Odfjell has committed to reduce its carbon intensity by 57% by 2030, compared to 2008 levels, and to have a climate-neutral fleet from 2050. In line with these targets, the company said it would only order net-zero-capable ships.