Shipbuilding Orders Down 15% So Far This Year

Despite the rise in newbuilding ordering activity over the past couple of months, overall contracting so far this year is lagging compared to the past year. In its latest weekly report, shipbroker Allied Shipbroking said that “orders placed across Hyundai’s yards made for the biggest piece of news last week. While contracting activity remains well below levels of 2022, down over 15% y/y, anticipation of the growth in the seaborne gas trade and expectations that trade-flows altered by the war in Ukraine will become a feature of the market have prevented a complete collapse in investment in the face of everrising newbuilding prices. HD KSOE has now secured a total of 110 new vessels this year, and the yard’s focus on high-value vessels has allowed it to achieve over 90% of its order target for the year already. Last week saw two additional 174,000 cbm LNG carriers ordered by NYK which topped $260m for the first time and brought the yard’s total LNG carrier orders to 18. Fetching an even greater price, Hyundai HI Ulsan is set to construct the $1.2bn FPU for Woodside Energy. Other sales include 11 feeder vessels order by five German owners and 4 new orders for MR, two apiece for Chengxi and Minami Nippon”.

In a separate note, Banchero Costa added that “activity was focused on tankers and containers during the week. Greek based Evalend placed an order for 4 x LR1 75,000 dwt at Yangzijiang Shipbuilding, the price reported at $50 mln each basis conventional fuel. The vessel will be delivered end 2025 and 2026. Zhoushan Changong received from Navios Maritime an order for 4 x LR2 product tankers, deliveries during 2026.

Hafnia agreed with GSI to build 2 + 2 MR tankers dual fuel methanol, deliveres during 2H 2026. The French owners CMA-CGM placed an order for 10 x 24,000 teu ULCC at YAMIC shipyard with deliveries 2026 and 2027. Yangangzijiang Shipbuilding agreed with Danaos Shipping to build two 8,000 teu units basis delivery in 2nd half of 2025”.

Meanwhile, in the S&P market, Allied said that “on the dry bulk side, a slight improvement took place as of the past week, given the relatively improved number of vessels being reported as sold. At the same time, Capesize market prevailed more fervent in terms of the 4-week market trend, given that it has been the only size segment with spot TCE above the US$ 10,000/day territory. In terms of asset prices, the incremental correction carries on across all age and size groups, a situation that can potential trigger fresh interest amongst some interested parties in the near term. On the tanker side, the sluggish period progressed further as of the past week, given the minimal activity taking place during the same time frame. With spot freight rates being under pressure, it is hard to argue how quickly and to what extent things can shift considerably in the short run”.

In a separate note, Banchero Costa said that “pressure on dry charter rates started to filter to values with signs of softening also for modern tonnage. In the Supramax sector, we have been seeing an increasing number of Dolphin57 proposed for sale. The sale of the CHRIS 57,000 dwt built 2010 Cosco for $12.5 mln was softer compared to recent sales. The MARYLISA V 52,000 dwt built 2003 Tsuneishi Japan was sold around $7.5 mln basis SS/DD due in Q4 2023; at the end of May the sistership ELLA was reported sold at $9.7 mln.

In the tanker market activity slowed, there are definitely a larger number of ships for sale especially between 15/20 years of age, but the feeling is that the pace is kind of stable or softening. There are not many sales to report, but a few are significant; the MELODIA 158,000 dwt built 2011 Samsung was reported sold at $47.5 mln to Middle Eastern Buyers and the LR2 EPANASTASEA 110,000 dwt built 2008 Dalian at $37.5 mln, the ship is fitted with rotor sails”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide