A: “The operating environment has become increasingly challenging. The war in Ukraine, escalating tensions in the Middle East following the conflict between Israel and Hamas, and piracy risks off the African coast and in the Strait of Malacca are all serious operational concerns. On top of that, the trade policy of the United States, particularly the uncertainty surrounding tariffs, has added further complexity.”
“To navigate this uncertainty, we’ve been working to strengthen our financial foundation by reducing interest-bearing debt. Compared to the end of 2020, we have reduced our debt by over 40%. Additionally, we’re increasing the share of our cargoes under Contracts of Affreightment (COAs) to ensure more stable revenue. These steps are part of our broader effort to build resilience against unexpected shocks.”
A: “Spot rates for chemical tankers hit historic highs last summer. With limited newbuild supply and rising risks in the Red Sea forcing vessels to reroute around the Suez Canal, voyage distances have increased significantly. Since then, however, we’ve seen spot rates gradually decline.”
“That said, current rates remain around 40% above the 10-year average, and the pace of decline is slowing. Unless geopolitical tensions in the Middle East subside and vessels can resume transits through the Suez Canal, we expect tight supply-demand conditions to persist for some time.”
A: “Tariffs are contributing to the decline in freight rates. Traders dealing in petrochemical products are hesitant to commit, as they don’t know what tariffs will be applied by the time the cargo arrives at its destination. Trade between the U.S. and China has nearly come to a halt. That said, the market seems to have largely priced in the impact, and we don’t foresee a further sharp decline in rates.”
“At the same time, trade flows are shifting. Cargoes that used to move from the U.S. to China are now heading to India. Similarly, shipments from the Middle East to India are being redirected to China. These shifts are causing some disruptions in our operations, largely due to the increased voyage distances.”
“We’ve built a very strong relationship with Japanese shipowners. Currently, about 20 of our vessels are on time charter from Japanese partners. We’ve also agreed to charter 19 more newbuildings from Japan, which are scheduled to enter service by 2028.”
“These 19 vessels are being built by Asakawa Shipbuilding, Fukuoka Shipbuilding, Shin Kurushima Dockyard, and Kitanihon Shipbuilding. We are highly satisfied with both the quality and delivery reliability of Japanese yards. We hope to continue and deepen this relationship. Our share of the global chemical tanker orderbook currently stands at 15%, which puts us in a favorable position.”
A: “We operate four tank terminals in key hubs like Houston in the U.S., as well as in Belgium and South Korea. This is part of our business diversification strategy. While ocean transport is subject to market volatility, tank terminals—much like real estate—provide a more stable revenue stream.”
A: “Global regulations are critical. Norwegian shipowners are highly motivated to develop new solutions for emission reduction—whether it’s hull design, propulsion systems, or energy-saving devices. However, there’s a limit to what shipowners can do alone. Cargo owners often have limited capacity to pay a green premium for low-emission transport services. That’s why international rules and frameworks are essential for pushing decarbonization across the industry.”
“The EU has already introduced carbon pricing for shipping through its Emissions Trading System (EU ETS) and the FuelEU Maritime regulation. However, a system where only shipping lines calling at EU ports bear the cost of carbon is not fair. We believe climate regulation needs to be global in nature.”
A: “True, fuel switching is challenging for chemical tankers due to their specialized design. But there are still effective ways to reduce GHG emissions. Through energy efficiency measures and operational improvements, we’ve reduced the carbon intensity of our fleet by 53% compared to the IMO’s 2008 baseline. We’ve now set a new target of 57% reduction.”
“In March this year, we installed a suction sail wind propulsion system on the 49,000 DWT chemical tanker Bow Olympus. This is our first vessel equipped with wind-assisted propulsion. We paired this with biofuel derived from waste and completed a transatlantic voyage between Europe and North America. It proved that even with today’s technologies, a zero-emission voyage is achievable.”
A: “The Odfjell family, who founded the company, came from a small town at the southern tip of Norway. At a time when the transition from sail to steam was taking place on the west coast, they made the bold decision to move to Bergen and embrace maritime innovation.”
“In the early 1960s, they saw an opportunity in transporting liquid chemicals. They believed tankers would be more efficient than drums and went on to build the world’s first chemical tanker.”
“They also recognized the importance of stainless steel tanks for easier cleaning and developed the first stainless steel chemical tanker. To support cargo operations, they entered the tank terminal business as well, realizing the need for reliable shore-based infrastructure.”
“The spirit of innovation continues today under our Chairman, Laurence W. Odfjell. He is driving our efforts in decarbonization—adopting advanced propulsion systems, smart technologies, and wind-assist solutions. I believe he embodies the same forward-thinking vision his father had in the 1960s and ’70s.”
