Message from CEO

18.03.2020

Dear Colleagues,

The global spread of the coronavirus continues to escalate, with significant consequences for people, businesses and society. Today, we find ourselves in a situation that was impossible to imagine only weeks ago, with countries and infrastructure shutting down in an attempt to decelerate the spread of the virus.

Odfjell is a global organization with global operations, and the situation is very fluid – some countries are physically shut down, others are open. Some countries continue to operate more or less as normal; others don’t. Fortunately, we now see that many of the Asian countries have stabilized the situation and are slowly beginning to improve, while other countries are in the midst of a state of emergency.

Trying to manage a global policy at the moment is impossible. The most important we - as a company and as individuals - can do, is to follow the local authorities’ recommendations. We all need to take a personal responsibility in this uncommon situation, and take measures to protect ourselves, our family, friends, colleagues – everyone around us. Odfjell took early steps to minimize the risk, but the risk picture continues to change and we need to constantly adapt and stay vigilant.  

As per today, our measures have had a positive effect due to the diligence of our seafarers and the dedication from our shore staff in all locations. No one in Odfjell has been infected with the virus.

“Our seafarers safety and health is always of the utmost importance, but these days even more than ever. We urge you to take care, and not take any risks. Follow the regulations, recommendations and advise to avoid being infected. So far, none of our seafarers or ships have had any cases of the virus. I commend you for taking the needed measures in a difficult time, and you have our full support in securing that your crew and ship is safe. If you have any concerns or need any support, do not hesitate to reach out to your Captain or anyone in the shore organization. Anytime. We are ready to support you in whichever way we can. Stay safe!”


In Singapore, South Korea, China and Japan, the number of new cases is declining. In Norway, however, the numbers are rising and strict regulations are implemented, with operations at the headquarters limited to critical tasks that cannot be performed from home. In the Philippines, the Luzon island is placed under enhanced community quarantine from March 17 to April 12. In the US, no Europeans (except the UK) are allowed to enter the country from March 12 and the coming 30 days.

This means that a very large part of our organization is working remotely, all of us aiming to be as available as we can and keep up business as usual as far as possible.

All non-business-critical travel, domestic and international, is postponed or canceled. The planned Crew and Allottee Conference in Bacolod, AFPM (the 2020 International Petrochemical Conference), the Port Captain/MSG seminar and the drydocking course in Bergen are canceled, among other meetings and conferences.   

The coronavirus has a significant effect on the global economy. We follow the situation closely, and are naturally concerned about the long-term effects. We aim to keep business continuity as normal. As per today, status is as follows: 

  • So far, all our voyages have been executed as planned and we are on budget both in January and February. 
  • Fuel cost is one of our biggest expense posts. The current reduced oil price is reflected in lower fuel prices, positively affecting our bottom line.  
  • As the situation in China is stabilizing, the work on our newbuilds at the Hudong yard is ongoing.   
  • Our terminals have good business continuity plans in place and maintain operations. 
     

Remember the most basic and simple, but also the most important advice of them all: Wash your hands frequently and reduce human contact as much as possible!

Take care of yourself and take care of each other. Stay safe!  


On behalf of the Executive Management,
Kristian Mørch