Newbuildings Edge Higher This Past Week

Newbuilding ordering activity moved higher this week as more ships were contracted. In its latest weekly report, shipbroker Allied Shipbroking said that “the shipbuilding market managed to regain its vivid activity to some extent, in contrast to the previous week’s modest market mood. Contracts for gas carriers gained a fair bit of market share with orders for up to 11 LNG units surfacing this past week and all being placed at South Korean shipyards, underlying the optimistic and bullish market sentiment as well as the very positive indications for the LNG sector’s trajectory over the upcoming period. Signs of a recovery were reflected on the dry bulk front, as we saw a fair increase in the number of fresh projects that came to light during this week, which is probably driven by the renewed positive movements noted in earnings as of the past few weeks or so. Despite having note a slight drop during the previous week, the containership market seems to have gained traction once more with a couple of fresh orders coming to light for 7.000 teu units. On the tanker side, we are still seeing relatively subdued activity, especially when compared to the other main sectors. Given the recent trend noted as of this past week in terms of earnings, while also taking into account the fact that buying appetite has been holding on positive tone, we may well see things improve slightly over the coming weeks”.

Banchero Costa added that “in the LNG market, Samsung shipyard received order for four very large LNG carriers (abt 174k cbm). Vessels to be priced at $209 mln each. Deliveries during 2024-2025. Seaspan Corporation placed an order at Nantong CIMC SOE, China for 2+1 optional 7,600 cu.m. LNG bunkering tankers. Deliveries are expected during 2024. Both units will be employed by Canada. Container In the container business, CULinese China agreed with SWS (Shanghai Waiqaoqiao Shipyard) for the construction of two 7,000 teu units at $72.5 mln apiece.

Always in China Huanghai received order for two 1,800 teu units by Asean Sea Lines based in Hong Kong and deliveries will be expected from August 2023 at a per unit price of $32.6 mln. MSC exercised two additional 15,576 teu at Hyundai Samho bringing the order to six units. Deliveries are due during 1st half 2025. Price reported to be around $182.4 mln per vessel. Drybulk Tsuneishi shipyard will build on speculative basis eight Ultramaxes abt 66,200 dwt at Cebu facilities with deliveriesfrom end 2023 to 2025”.

Meanwhile, in the S&P Market, Allied said that “on the dry bulk side, the SnP market moved on an impressive track as of the past week, given the firm flow of vessels changing hands. This, at the same time, came rather inline with the recent improved sentiment from the side of freight earnings, that seemingly support the current buying appetite levels being noted. At this point, we see transactions varying equally across all size segments and age groups, underlying further the robust interest for this sector. Notwithstanding this, given the recent events in Europe, we could see a temporary shift in this current trend in the short run. On the tanker side, the overall volume of transactions has been fairly volatile for yet another week, with the current momentum seemingly being on the bearish side. However, thinking about the recent spikes noted in freight rates, which reached levels not noted for some time now, we may well expect things to gear up in the SnP market too in the near term”.

Similarly, Banchero Costa noted that “a pretty active dry market last week over all the different segments. Starting from Cape business, Dong-A Tanker reported having disposed 3 Korean built cape mv DONG-A EOS blt 2009, DONG-A ASTREA built 2010, DONG-A OKSON blt 2010 of all about 180,000 dwt to Greek Owner Minerva for a price of about $81 mln enbloc. A more vintage cape owned by Bocimar called mv MINERAL BELGIUM 173,000dwt blt 2005 SWS is also reported sold to Chinese Buyer for about $15.5 mln. In the Kmx-Ppmx sector, there is an interesting sale to register and reconfirm, the NEXTER 95 design mv DOUBLE FORTUNE 95,790 dwt blt 2010 Imabari is rumoured sold to Chinese Buyer for region $20.5 mln which looks pretty soft compared to prevailing market price of similar Japanese tonnage. On a different note, it emerged that the BOTTIGLIERI FRANCO VELA 92,500dwt blt 2010 Jiangsu Newyangzi (BWTS fitted) and BOTTIGLIERI GIULIIO BORRIELLO sister blt 2011 (BWTS fitted) may be now sold for a price between $16.5 and $17.5 mln for the age difference.

A Korean build Kamsarmax was inviting offers, mv DARYA KIRTHI about 80,000dwt blt 2012 STX Korea and we so far understand they have received interests in excess of $24 mln which looks pretty strong (wog). Also, the Supramax market was predominantly active; Mv KARIMU 57.000dwt blt 2010 STX (BWTS fitted) is sold for region $19 mln basis delivery at completion of present TC (July) – on TC at $21,000/d to Bunge. Another Korean Supramax mv WP BRAVE 58,600 dwt blt 2012 SPP (Tier II) is reported committed for $18 mln which is soft but considers the class due in July 2022. The same owners may have sold also the WP AMBITION 56,000 dwt blt 2015 Mitsui (BWTS) for $25.5 mln. In the Handy market, a few sales of vintage bulkers occurred, but the headline is for a combined deal of resale and NB handy ex JNS that includes 2 ships for delivery in May and July 2022 priced at around $31 mln and NBs for later delivery priced at around $29.5-30 mln. All ships are 40,000 dwt and based on a previous order completed at the same yard”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide