Newbuilding Activity Erupts

The newbuilding market has erupted over the past week, with reports of over 50 new vessels being contracted. In its latest weekly report, shipbroker Allied Shipbroking said that “the newbuilding market is strong with news of over 50 vessels contracted, and more if all options are declared. It was a good week for tanker contracting with Zhoushan Changhong yard looking at over 10 LR2 type tankers, if all options are declared. Stamford Shipping of Singapore are behind two firm orders from the yard, while there are mixed reports about the identity of the other owner. Dynacom, flush with cash, have ordered two VLCCs from New Times Shipbuilding and eight Kamsarmaxes from Huangpu Wenchong. Including their ten firm and four optional LR2 order back in April, this makes for $1.1bn+ of investment in the year so far. Gas carriers were represented by a sole order from Avance Gas at CIMC at a price slightly lower than some deals that we have recently seen at South Korean yards for a similar capacity vessel. In the container sector, fourteen firm feeders have been ordered for construction at Chinese yards, all to be methanol DF. Containership contracting is lagging, with just 20% of the number ordered last year, despite being almost at the end of Q2”.

In a similar note this week, Banchero Costa added that “contracting activity remained high despite long delivery dates. Tanker activity has been strong and LR2 tankers were dominating affairs. China was leading the way with nine units being ordered to Chinese builders: Zhoushan Changhong recently secured a significant order for 6 x LR2 tankers. Four of these will be constructed for an undisclosed Turkish Owner while the remaining two will be for Stamford Ship Management in Singapore. Additionally, Guangzhou Shipyard received an order for 2 x LR2 tankers from Eastern Pacific Shipping.

The Turkish owner has also included 4 options while Eastern Pacific added 2 indicating a forthcoming increase in orders from China. Mitsui O.S.K. increased its order at Dalian Cosco KHI for VLCCs from 2 to 4, while Samsung confirmed the order for 2 x Suezmax from Teodor Shipping at $86 mln each. In the dry sector, TMS Dry placed an order for 2 x Capesize from Cosco Yangzhou while Japan’s Lepta Shipping sealed a deal with Yangzi Mitsui shipyard for 10 Kamsarmax, prices remained undisclosed”.

Meanwhile, in the S&P market, Allied added that “on the dry bulk side, the SnP market moved on its ordinal levels of late for yet another week, with the number of units changing hands appearing relatively stringer. Whether this lack of liquidity in the market will further nourish the downward pressure in asset price levels of over a month now, is yet to be seen.

Furthermore, despite the upward growth of the past week in freight figures of the bigger size segments, the general incremental negative correction on year-to-date basis, will add volatility in volume of deals in the upcoming weeks as well. On the tanker side, things prevailed in a state of clampdown as of late, with a very tight number of vessels being reported as sold. Whether we are reaching a state of maturity of overall buying appetite, at least in the current asset pricing regime, seems still unclear for now”.

“In the dry market, Norwegian controlled Ultramax Belvedere 66,000 dwt built 2015 Mitsui (SS due 2025 BWTS fitted) was sold in excess of $27 mln, a few weeks ago the sistership Bulk Electra was reported sold at high $26 mln. After offers were invited last week CF Diamond 58,000 dwt built 2016 Tsuneishi (SS due 2026 BWTS fitted) has been committed in excess of $24 mln. One resale Handysize 40,000 dwt with delivery August 2023 under construction at JNS was purchased by a German buyer at $32 mln. In the tanker market UAE controlled LR1 Gulf Coral 75,000 dwt built 2009 HMD (SS DD due Sept 2024 Epoxy coated ) was reported sold at $28.5 mln. The pumproom MR Super Ruby 50,000 dwt built 2006 Shina (SS/DD due 2026 BWTS fitted) was sold at $24 mln to Middle Eastern Buyers, a month ago the Atlantica Brave 51,000 dwt built 2008 STX was reported at $22 mln”, Banchero Costa conconcluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide