Odfjell Sells Second Chemical Tanker for Scrap Amid Weak Recycling Markets
Bergen, Norway — In a move that underscores both the ageing profile of its fleet and the challenging dynamics of the ship recycling industry, Norwegian chemical tanker operator Odfjell has sold its second chemical tanker for scrapping. The transaction marks a further step in the company’s fleet renewal efforts, although the patchy nature of current recycling markets clouds the prospects of such dispositions.
The vessel in question, the 29-year-old Bow Cedar, has been sold to recyclers at Alang, India, at a rate of US$940 per light displacement ton (ldt) — a strong scrap price in today’s subdued market environment. Lloyd’s List+1 The Bow Cedar represents the fourth Kvaerner-class “supersegregator” chemical tanker from Odfjell’s fleet that is being phased out and sent for recycling. Tradewinds News
This latest sale comes amid reports that the global ship recycling market is experiencing a mix of low supply and weak demand, making every high-value scrapping deal noteworthy. X (formerly Twitter)+1 Whereas some buyers are careful about committing to green or compliant recycling yards, sellers are under pressure to extract maximum value from ageing tonnage. Odfjell’s ability to secure a relatively robust price in this setting reveals both its negotiating strength and the fragility of the wider market.
Industry observers point out that while scrapping activity had recently been muted, modest upticks are emerging in certain sectors. Lloyd’s List+1 Still, the uneven demand and constrained yard capacity in India and Bangladesh leave many shipowners reluctant. In this uncertain landscape, Odfjell’s disposal of Bow Cedar offers a case study in balancing vessel decommissioning with market timing.
For Odfjell, the sale fits into a broader strategic pattern. The company has been actively modernizing its chemical tanker fleet, adding newbuilds and securing tonnage on time charter. Shipping Telegraph+2Tradewinds News+2 As of mid-2025, Odfjell had 18 vessels on order, of which two would be owned directly and 16 under long-term charter arrangements. Shipping Telegraph The Bow Cedar’s removal thus aligns with the firm’s push to retire older, less efficient tonnage.
TradeWinds notes that Odfjell has again succeeded in obtaining a “top-dollar” scrap rate for this ageing vessel, illustrating that even in a weak recycling environment, attractive deals can still be struck. Tradewinds News Still, the overall sentiment among recycling yards and buyers remains cautious: many are reluctant to expand capacity or commit large capital in the absence of consistent tonnage flow and price stability.
In effect, Odfjell’s sale of Bow Cedar demonstrates both an opportunity and a risk in today’s scrapping sector. On one hand, the company turned an aging asset into tangible value at a premium scrap rate. On the other, it exposes itself to market swings: had the recycling demand weakened further, the returns might have been far less generous.
For shipowners contemplating disposal of older vessels, the Bow Cedar deal could serve as a bellwether. It suggests that securing peak value from marine recycling still hinges on deft timing, rigorous negotiation, and a readiness to transact when conditions, however fragile, align. Yet with the recycling market’s instability, such windows may be fleeting.
In conclusion, Odfjell’s sale of its second chemical tanker for scrap underscores the dual reality of its fleet transition and the uncertainty enveloping global recycling markets. By removing a nearly three-decade-old vessel at a strong unit price, the company reaffirms its commitment to modernization. But with patchy demand and constrained yard capacity, it also risks exposing itself to volatility in a sector where margins are fragile and timing is everything.
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