A small update on the takeover of the four Sinochem vessels that will be under Odfjell management: The takeover has regrettably been significantly delayed. This is particularly unfortunate for our seafarers who have been waiting for this opportunity since early 2018 and it is also a distraction for our shore organization who are constantly pushing operational and commercial plans ahead of them. It is also a costly delay as we now have the first Odfjell officers on standby wages until they can travel to the vessel.
Sinochem is a multi-billion state-owned Chinese chemical company. The delay is caused by Sinochem’s sale of their Shipping department to another Chinese entity named Junzheng. This sale has been significantly delayed and we are not permitted to take over the vessels before the sale is concluded.
The good news is that the latest reports from China say that the sale is now very close to be concluded. We are therefore (again) preparing for takeover at first opportunity. Right now we are aiming at first transfer early September.
There have been some rumors that the vessels will be put on external management. These are completely unfounded. Management of supersegregators is Odfjell’s core competence and will never be outsourced to a third party. I guess the best evidence that this is true is the fact that we already have Odfjell crew on standby wages. That would of course not be the case if we were considering outsourcing.
Once again: I sincerely regret the delays and the consequences this delay have had for our seafarers and shore-based colleagues. Unfortunately, the reasons are completely out of our control or influence.
Best regards,
Harald Fotland
Chief Operations Officer
