Newbuilding Orders Edging Higher

The newbuilding activity has been growing on a steady pace over the course of the past few weeks, despite ongoing uncertainty. In its latest weekly note, shipbroker Allied Shipbroking said that “newbuilding contract volumes continued on an overall positive tone despite the ups and downs noticed due to the current uncertainty. For the time being, it seems as though the newbuilding market has not escaped the grasp of the situation in the Ukraine, with shipbuildesr already noting losses due to gas carrier contracts effected by the imposed financial sanctions on Russia by the South Korean government. Yet this will likely be but a small bump on the road, as the expectation is for a generous flow of LNG contracts to emerge over the coming months, boosted by the decreased reliance most countries want to have on Russian natural gas pipelines. In terms of overall activity noted, the previous week’s impressive booming activity seen in Containership sector continued for yet another week as the high returns being noted there keep buying interest at high levels. The dry bulk sector has taken a step back this week, possibly following the modest track noted on the freight rate front lately which could be creating a feeling of hesitation amongst potential buyers, though most likely being back tracked from the side of shipbuilders which are still showing a more keen interest in securing more lucrative units for their slots”.

In a separate note this week, shipbroker Banchero Costa added that “in the container market, four units 7,000 teu were placed at Samsung basis delivery starting from 2nd half 2024. Price per unit to be $123.3 mln and to be fitted with dual fuel Main Engine.

In China Starocean Marine agreed with Zhoushan Changong to build 2 x 2,500 teu basis delivery 1st half 2024. Price to rgn $38 mln each. Furthemore Tsuneishi (Zhoushan) has received an order for three 2,800 teu feeders basis delivery end 2023-end 2024. Drybulk In the drybulk business, Japanese owners Tachibanaya was reported to be behind order for an ultramax bulk carrier at NACKS in China with delivery in July 2023”, the shipbroker concluded.

On the dry bulk side, the SnP market closed the week on a bullish tone in terms of liquidity, given the relatively fair number of units changing hands. It seems as though the overall market has found support, given the recent trend from the side of earnings. For yet another week, the focus skewed mostly to the Panamax and Supramax size segments, with many transactions taking place, of different age groups at the same time. On the other hand, the bigger size segment seems to be holding absent at this point. All-in-all, it will take some time before we see how the current turmoil in Europe will affect the overall market’s momentum. On the tanker side, the SnP market moved on a more vivid pace as of the past week, given the relatively healthy activity levels being noted. At this point, while rather surprisingly (to some extent at least), overall volume has found support by a fervent VLCC market, where a strong number of vessels have changed hands as of late, Allied concluded.

Banchero Costa added that “last week Dry segment drove the sale and purchase market with quite few transactions done. Cleints of Lomar Shipping purchased 3 Kamsarmaxes 79,400 dwt Jinhai blt Golden Empress, Endeavour and Enterprise for $52 mln enbloc. Chinese Buyers moved on the Panamax Bulker Goya 75,000 dwt Blt 2008 Rongshen for $15.8 mln with SS/DD due 08/23. Ultramax sisters Hanton Trader II and III 64,000 dwt Blt 2014 Jiangsu reported sold to Hong Kong interest for $25.5 mln each. Tess 58 Sitc Taishan 58,000 dwt Blt 2010 Tsuneishi Zhoushan reported sold to Indonesian interest at $18.25 mln.

Clients of Costamare got 2 x 57,000 dwt Bao Grand and Prosper both blt 2010 respectively Dayang and Hantong at undisclosed levels. The Open Hatch ES Mercury 32,000 dwt Blt 2008 BWTS fitted Kanda reported sold to undisclosed at $15.5 mln. On tanker side, VLCC Eneos Tokyo 300,000 dwt Blt 2004 IHI reported sold to Chinese Buyers at $30.9 mln with ss & BWTS due 7/2024 dd 7/2022. Suex Densa Orca 158,000 dwt Blt 2012 Hyundai achieved $33.2 mln from Greek Buyers. Up to 4 Afras reported sold: Sri Asih 109,000 dwt Blt 2005 Dalian reported sold at $14.5 mln, Blue Power 106,000 dwt Blt 2003 Tsuneishi for $13.5 mln, sister vessel Bunga Kelana 10 and 9 105,000 dwt Blt 2004 Samsung reported sold respectively for $12 and 12.2 mln”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide