Newbuilding Activity Focused Around Larger Ships

The newbuilding market has been led by orders for larger ships. In its latest weekly report, shipbroker Allied said that “reports of TMS contracting across the tanker and bulker sectors lead the news this week. As has been widely reported, two Suezmaxes have been contracted at Jiangsu Hantong, one LR2 at New Times Shipbuilding, and, on the dry side, four Kamsarmaxes at Nantong Xiangyu. These most recent deals follow the trend for Chinese yards, with an exception made for gas carrier orders placed at South Korea yards last year. On the gas side, we see yet more Ethane carriers contracted, taking the total for November and December to 14 vessels, mostly of size 98,000cbm, but including 24,000 and 9,000 cbm contracts as well. While South Korean builders such as HD KSOE are sitting at the top of the gas carrier market, the fact that 9 of the 14 vessels have been placed at Chinese yards demonstrates that this can’t be taken for granted, something which has become increasingly apparent over 2023. Chinese builders have managed to more than double its share of gas carrier vessels contracted this year versus the percentage it accounted for in 2020”.

In a similar note this week, shipbroker Banchero Costa said that “with the end of the year approaching there was a decline of activity. Most of the orders were focused on large-sized vessels. From Greece, Economou’s TMS reached 40 vessels on order by adding: ? 2x 157,000 dwt conventional fuel Suezmax ordered at Jiangsu Hantong at $84.5 mln each, dely set in 2026. The shipyard will build this ship for the first time ever. ? A third 115,000 dwt LR2 added to their previous order at New Times at $63 mln, dely in 2025. ? 4 x 82,000 dwt Kamsarmax at Nantong Xiangyu for delivery throughout 2026 at $35.5 mln.

UAE-based Kurow Shipping has doubled its order at Zhoushan Changhong to 8 x 115,000 dwt LR2 at a price of $61 mln with delivery of last four starting from October 2025 On the gas side, Pacific Gas has added 6x 99,000 cbm capacity LPG/Ethylene carriers to its order with Jiangnan Shipyard, which now totals 14 units of the same size. The last six will be delivered Q1 2028 and are priced at $160 mln each”.

Meanwhile, in the S&P market, Allied said that “on the dry bulk side, snp activity remained on a robust pace for yet another week, underlying further the general good momentum in both buying interest and price levels. As was expected, Capesize sales volume slowed down as of late, after the hefty rally noted the past few weeks or so. On the other hand, the Panamax segment took the front seat, nourishing the overall market with fresh transactions. While the Handysize market has remained on an upward path in terms of snp liquidity too, we may well expect things remained on fair levels in the near term. On the tanker side, it was rather a mediocre week in terms of activity taking place, with the MR segment seemingly the only one to support market’s liquidity for the time being. As we approach a typically quiet time of the year, things may prevail more sluggish in the following weeks”.

Banchero Costa added that “in a dry market driven by firmer rates, Capesize sales dominated the scene: the Japanese controlled IRON MIRACLE 180,000 dwt 2011 Tsuneishi Cebu was rumoured sold to Greek buyers at $27.2 mln, while the MAGIC ORION 180,000 dwt 2006 Imabari was reported sold to Chinese buyers for $17.8 mln. Huge Capesize sell-off in two separate deals for Belgian owner Bocimar; the bulker arm of CMB was reported sold; the MINERAL NINGBO 178,000 dwt 2009 SWS to Hong Kong Based Owner Agricore for $20 mln, while the MINERAL DESTERLBERGEN 176,000 dwt 2010 New Times, the MINERAL TEMSE 176,000 dwt 2010 New Times and the MINERAL BRUGGE 176,000 dwt 2011 New Times were reported enbloc to Chinese owner EGPN for $62 mln. The MELODIA 80,000 dwt 2013 JMU was rumoured at $22 mln; buyers remained undisclosed.

On smaller sizes, the SHINSUNG CLEVER 37,000 dwt 2014 Saiki was reported at $18.2 mln basis TC attached at $11,250/d until November 2024, while the GLOBAL HERO 35,000 dwt 2015 Hakodate was rumored sold to Greeks at $17.5 mln. Limited activity reported in the tanker market, although prices remained very firm: the Greek owner Athenian Sea Carriers was reported to sell the ATHENIAN FREEDOM 300,000 dwt 2013 Hyundai , allegedly to Thenamaris, for $73.5 mln. In the Aframax segment, the AEGEAN POWER 114,000 dwt 2007 Samsung was reported sold by Arcadia Shipmanagement for $41 mln, basis very prompt delivery in Cont. The Japanese built MR2 CENTENNIAL MATSUYAMA 47,000 dwt 2008 Onomichi was rumoured sold in the low/mid $23 mln”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide