Odfjell Exits European Short Sea Market

zoom Norwegian shipping and tank terminal company Odfjell has inked a deal to sell the three remaining vessels within its trade in the European short sea market. The three vessels in question are Bow Balearia, Bow Bracaria and Bow Brasilia, all 5,800 dwt, built in 1997/1998. Odfjell said that the vessels were being divested as a part of the company’s cost-cutting and efficiency program, which includes exiting from unprofitable trades. The sales will result in an accounting loss, but will have a positive effect on the group’s liquidity and profitability, the company said in an announcement. The companys cost-cutting and efficiency program has now been running for three months. The program includes headcount reductions and other cost-cutting initiatives related to fleet optimization. Through these initiatives Odfjell aims to improve its net result by in excess of USD 100 million on a yearly basis within end of 2016.