Newbuildings In Demand Once Again

With the lack of available berths threatening to limit options for the future, more and more ship owners are looking to secure more slots for future newbuildings, increasing their investment activity. In its latest weekly report, shipbroker Allied Shipbroking said that “newbuilding orders continued to flow last week, with tanker investment coming to the fore. Chinese yards have retained their status as the top location for the construction of tankers – over the past 12 months over 45% of additions to the orderbook have been deals with Chinese yards.

In a week in which VLCC spot rates shot up 150%, Belgian owner CMB joins MOL and Dynacom in securing two such vessels bring the total number of VLCC orders in June to six already, double the total ordered throughout 2022. Up to fourteen vessels were ordered at Cochin Shipyard by the Norwegian short-sea player Wilson ASA, with the vessels’ design such that they can be easily adapted to green fuels and wind technologies in the future. Cochin Shipyard, the largest in India, appears to be an increasingly attractive yard for European owners seeking more non-standard vessels with eco-features. For instance, this year the yard had already received up seven orders for small, hydrogen-fuelled vessels from Norwegian and Dutch buyers”.

In a similar note, shipbroker Clarkson Platou Hellas said that “tankers this week, Clients of Polembros Shipping announced ordering two firm 157k dwt Suezmaxes at New Times, with delivery of the vessels slated for April and May 2025. In dry, it has been reported that CSSC Chengxi Shipyard took orders for two firm 82k dwt Kamsarmaxes from domestic counterpart Guangdong Yudean, with the vessels expected to deliver in February and April 2027. In the gas carrier market, Samsung announced contracting two firm 174k CBM LNG Carriers for an unnamed North American owner, reported to be Chevron, with the vessels delivering in 4Q 2027 and February 2028. It is understood that Cochin Shipyard took orders for six firm plus eight optional 3.8k dwt general cargo vessels for Wilson ASA, with the firm vessels delivering in 2025”.

Meanwhile, in the S&P market, Allied commented that “on the dry bulk side, the SnP market did not rouse any excitement for yet another week, with overall activity prevailing sluggish for some time now. At the same time, asset price levels are already in a downward mode, especially in the more vintage units. When thinking about the current state in spot freight figures, this trend of late can hardly bedazzle parties being involved. The market is an phase of rebalancing, and more sales will resurface as the spread on price ideas narrows. On the tanker side, things did not escape excessively from its recent tardy phase, with the number of vessels being reported as sold prevailing at limited numbers. At the current inflated market regime, we may as well witness a periodical “celling” in overall buying appetite”.

In a separate report, shipbroker Banchero Costa added that it was a “slow week in the dry market, with poor activity reported. In addition to the ZAMPA BLUE 178,000 dwt 2011 Mitsui (BWTS fitted), which seems sold to Greek buyers around $30 mln, most of the sales have been reported in the Kamsarmax and Panamax segments. The modern eco Kamsarmax controlled by BOCOM leasing JY BULK 81,000 dwt Chengxi (BWTS, Scrubber fitted) has been sold at on line auction at $28.49 mln; the winning bidder still remain unknown. The Korean built MAGIC TWILIGHT 80,000 dwt 2010 STX Korea (BWTS fitted) has been sold by Castor Maritime to undisclosed Buyers at $17.5 mln. In the Panamax segment, the Japanese controlled SANTA BARBARA 76,000 dwt 2011 Oshima (BWTS fitted) was rumoured sold to Greek Buyers for a price around mid $17s mln.

The Handysize AMERICAN BULKER 36,000 dwt 2016 Shikoku (BWTS fitted) was reported sold at mid/high $22 mln. Little activity also in the tanker market, where only a few sales were reported. In the MR segment MTM POTOMAC 51,000 dwt 2004 STX (BWTS fitted) was sold to undisclosed Buyers around $18 mln, while EAGLE BAY 47,000 dwt was reported sold at $24.2 mln, buyers remained undisclosed. RT STAR 26,000 dwt 2011 Shin Kurushima (stainless steel, BWTS fitted) was reported sold at $24 mln to undisclosed buyers”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide