Odfjell
Odfjell SE is a company specializing in the worldwide seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet comprises some 80 ships. The ships transport more than 600 different kinds of liquids, including organic and inorganic bulk liquid chemicals, acids, animal fats, edible oils, portable alcohols and clean petroleum products. Most of Odfjell’s ships are registered in Norway (NIS) and Singapore, and are primarily manned by Norwegian and Filipino mariners.
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| Societas Europaea | |
| Traded as | OSE: ODF |
| ISIN | NO0003399909  |
| Industry | Shipping |
| Founded | November 17, 1914 |
| Headquarters | Bergen, Norway |
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Number of employees |
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| Website | www.odfjell.com |
The tank terminal division consists of 6 tank terminals, located in Belgium, the USA, South Korea and China. Odfjell Terminals is also part of a network in Brazil, Argentina, Chile + Peru, consisting of another 13 tank terminals partly owned by related parties.
Odfjell has offices in 14 locations around the world, and is headquartered in Bergen, Norway. The company employs some 2,300 people and posted an annual gross revenue of USD 851 million in 2018.
Odfjell has a wide range of customers, from the oil majors and largest chemical manufacturers to smaller logistical companies and traders.
History
Odfjell is among the oldest existing shipping companies in Bergen, Norway. Its roots can be traced back to 1890 when captain Berent Daniel Olsen moves to Bergen to be a part of the modern shipping industry. The first joint ship owning company was registered in 1914 by Olsen’s sons, Fredrik, Abraham and Andreas Odfjell. As their logo, the Odfjell brothers adopt three interlocking rings in red, blue and yellow, to represent each one of them. Fredrik and Abraham incorporate the joint ship management company AS Rederiet Odfjell in April 1915, and in 1917 the brothers take over the shipping company AS DS Storli.
Odfjell during World War II
At the outbreak of World War II, Odfjell manages a fleet of seven ships. The German occupation of Norway splits the Odfjell fleet in two. The three ships in home waters are ordered to serve the German occupants, whilst the four ships on the high seas are controlled by Nortraship, the Norwegian Shipping and Trade Mission, established in 1940 to administer the Norwegian merchant fleet outside of German-controlled areas. The home fleet suffers terrible losses. Two of the three ships are lost and 41 people perish. Three of the four ships in the Nortraship fleet come through the war unscathed.
1945-1969
Fredrik and Abraham Odfjell pass away in 1950 and 1960 respectively. Their sons, Bernt Daniel Odfjell and Johan Odvar Odfjell take over the company. During the 1950s, Odfjell pursues two paths: the general cargo liner trade and the operation of small tankers. The latter ships gradually become more sophisticated and specialized, capable of carrying sulphuric acid.
In the 1960s, the company makes a strategic decision to reposition itself by expanding into the chemical tanker business. MT Lind is Odfjell’s most significant ship during this period. The vessel is built for Odfjell by the Norwegian Stord Verft and is the world’s first purpose-built stainless steel tanker. This is when Odfjell's shift in focus, from general cargo vessels to purpose-built smaller chemical tankers, is completed.
Odfjell also enters new markets: tank terminals and offshore drilling rigs. In 1963, Odfjell starts its own chartering department, Minde Chartering, which is an important step towards making Odfjell a fully integrated shipping company. In 1969, Odfjell opens its first tank terminal, the TAGSA terminal in Buenos Aires, Argentina.
1970-1989
Following the 1973 OPEC oil embargo, the economic health of the shipping industry declines dramatically. Older, well-established shipping companies go under, and abandoned crude oil tankers become a familiar sight in many Norwegian fjords. The situation is no less turbulent for Odfjell. However, having carved out a profitable niche in the chemicals trade market, the company is not as hard hit as shipping companies in other trades. This is in part due to new strict regulatory regimes which make it almost impossible to convert other types of ships into chemical tankers thereby sparing the chemical tanker market of surplus tonnage.
In 1979, differences about the future direction of the company prompt the Odfjell family to split the company in two. The split is effective from March 1, 1980. Bernt Daniel Odfjell and his son Dan Odfjell take over the deep-sea chemical tanker fleet, with Skibsaksjeselskapet Storli as their main corporate entity, plus the terminal business. Johan Odvar Odfjell and his son Abraham Odfjell take over the small tankers, which later becomes Jo Tankers, and the offshore rig business through Odfjell Drilling and Consulting Company (ODCC).
The family dispute and challenging market conditions during the 1970s and early 1980s, leave the company considerably smaller and financially rather strained. To regain their dominant position in the chemical tankers market, the strategic focus is set on consolidation and growth. The company partners with Westfal-Larsen, establishes a new tank terminal in Houston, Texas, and invests in new orders and acquisitions of second-hand tonnage. To fund these investments, Skibsaksjeselskapet Storli goes public, and in 1986 the Storli share is listed on the Oslo Stock Exchange.
1990-2019
During the 1990s, the company continues to expand. National Chemical Carriers (NCC) of Saudi-Arabia replaces Westfal-Larsen as chemical tanker partner. The company enters the Asian tanker market and becomes a player in the regional short-sea markets in Asia and the Americas. In February 1998, the company changes its name from S/A Storli to Odfjell ASA and with the name change, a new logo is devised and adopted which is still in use today. The three interlocking rings are retained as the ships’ bow mark, a salute to the original Odfjell brothers.
The expansion continues into the new millennium, both in the deep-sea and short-sea segments, as well as tank terminals. In the year 2000, Odfjell announces the merger between Odfjell Tankers and Seachem, and adds 20 new ships to the fleet. At the time of the merger, Odfjell is the world’s second largest operator of chemical tankers, Seachem the fourth. Later that same year, Odfjell acquires the Botlek Tank Terminal in Rotterdam, Netherlands, and renames it Odfjell Terminals Rotterdam. Thereafter, the involvement in tank terminals increases rapidly. In 2012, Odfjell re-enters the gas carrier business through the acquisition of two second-hand 9,000 cbm LPG/Ethylene carriers.[1]
In 2015-16, Odfjell goes through a transition phase, focusing on building strength and preparing the company for growth. The Board of Odfjell SE launches a cost-cutting program in January 2015 to improve the financial performance of Odfjell’s chemical tanker business. Two years later, the company shows positive results and significant improvements in performance and competitiveness, despite a challenging global market.[2]
Towards 2020, Odfjell takes a strategic decision to focus on terminals where the company has operational control, and where synergies with Odfjell Tankers can be realized. From 2016 to 2019, Odfjell exits the terminals in Oman, Singapore, Rotterdam and Jiangyin, China, and restructures the Odfjell Terminals organization. The company also exits the gas carrier segment. Simultaneously, an ambitious fleet renewal program is initiated and realized, including a newbuilding contract of four 49,000 dwt vessels - the world's largest stainless steel chemical tankers. From 2017 to 2020, the company welcomes 30 newbuild vessels, which in combination with extensive upgrades of the older ships, make the Odfjell vessel pool one of the world's most advanced, eco-friendly and energy-efficient fleets.
Organisation
Odfjell SE
Odfjell SE is the ultimate parent company of the Odfjell Group, and is a public limited company traded on the Oslo Stock Exchange. The Odfjell Group includes Odfjell SE, subsidiaries incorporated in several countries and the share of investments in joint ventures. Odfjell SE provides an in-house management, Odfjell Ship Management (SM).
Odfjell SM offers a fully integrated service, with fleet management, crewing, procurement- and logistics, technology support, newbuilding and QHSSE (Quality, Health, Safety, Security and Environment). SM provides direct support to ships operating in regional trades, and ships in the deep-sea fleet, as well as professional crew management.
Odfjell Tankers AS
Odfjell Tankers AS, a subsidiary of Odfjell SE, controls and operates a fleet of around 80 ships, including owned, time- and bareboat chartered vessels, and newbuildings on order. With offices at strategic locations around the world, Odfjell Tankers operates globally and regionally with tonnage ranging from 5,000 DWT to 75,000 DWT. The majority of tonnage is owned and managed by Odfjell.
Odfjell Terminals
Odfjell operates five tank terminals at strategic locations in China, Korea and USA, and is in addition a non-operating partner in the Noord Natie terminal in Antwerp, Belgium. Odfjell Terminals offers a total 1.5 million cubic meters of storage space in 533 tanks. In addition, Odfjell Terminals has a cooperation agreement with another 13 terminals in South America, including Peru, Brazil, Argentina and Chile. These terminals are partly owned by related parties.
Sources
- "Odfjell History". www.odfjell.com. Retrieved 2017-08-15.
- "Annual Report 2017" (PDF). www.odfjell.com. Retrieved 2017-08-15.