The new pool agreement with Navig8 was launched at the presentation of the 3Q20 results on November 5. The very next day, CEO Kristian Mørch could announce another agreement with NY-based TRF (Transportation Recovery Fund). “Odfjell has wasted no time in bringing more ships into its new chemical tanker pool,” Tradewinds commented.
“By establishing this pool, we take another step in consolidating the chemical tanker market. The pool will strengthen our platform in a capital-efficient way, and with little downside risk. The fact that Navig8 and TRF trust us with their vessels is another testament to Odfjell’s strong platform, and it underlines the quality of the Odfjell team’s expertise”
Kristian Mørch, CEO
On board Navig8 Tourmaline. Photos: Marlo Salayo
Two pools
The ships are coated tankers and comprise a total of six vessels from Navig8, six Odfjell vessels and seven from TRF. The vessels will be organized as two pools: The Odfjell Coated MR Pool, 45k dwt+, and the Odfjell Coated Handy Pool, 35-40k dwt. The MR Pool will count 13 vessels (4 MIPO’s and 2 SLS) including a tonnage contribution from Odfjell of six vessels, while the Handy Pool will count six of the TRF vessels.
“We are excited to welcome the Navig8 and TRF vessels to the Odfjell Tankers fleet. This is an important milestone in our strategy to increase our presence in the coated chemical market and is an excellent addition to our existing trading platform. In total, this gives Odfjell an increased market share and improved competitive positioning overall, a flexible cost structure with lower risk than conventional TC tonnage, and also an improved position in contract negotiations”
Bjørn Hammer,
Global Head of Tanker Trading
The Navig8 ships
Four of the Navig8 ships are built in 2015 at STX in Korea. The ships are named after gems: Tanzanite, Tourmaline, Topaz, Turquoise. All 49,000 dwt IMO2 chemical tankers, with 18 coated tanks. Coating is mainly Interline 9001.
The last two, Violette and Victoria, are also 49,000 dwt and IMO2, but with 22 coated tanks and mainly epoxy coating (Sigma Phenguard) – and two stainless steel tanks. Violette and Victoria are built in 2015 at the Hyundai-MIPO yard in Vietnam. The four T-vessels are already delivered, while Violette and Victoria are expected in the coming three weeks.
The TRF ships
TRF contributes with six 37,000 dwt IMO2 Chemical Tankers with coated tanks. Coating is mainly Interline 9001. The vessels are built in 2016 and named after locations in Norway and the US: Mobile, Mongstad, Mandal, Marquette and Memphis and Moss. The latter has Marine Line 784 coating.
The seventh is the 49,000 dwt TRF Bergen, an IMO2 chemical tanker coated with epoxy (Sigma Phenguard), built in 2015 at the Hyundai Vinashin Shipyard in Vietnam. TRF Bergen also has two stainless steel tanks – and is, as faith would have it, sister ship of Navig8’s Violette and Victoria.
The six Odfjell ships to be included in the pool are Bow Elm, Bow Lind, Bow Triumph, Bow Trident, Bow Trajectory and Bow Tribute.
The vessels will mostly carry commodity chemicals and larger parcels, which are typically growth markets these days. The first contracts are in place, and the pool is expected to be completed with all vessels by February 2021.
The Navig8 and TRF ships will continue to be technically managed by external parties, while the Odfjell ships will continue to be operationally managed by our in-house ship management. All ships will be commercially managed by Odfjell Tankers.
