Home / Shipping News / Hellenic Shipping News / Demand for Newbuildings Increases, Despite Higher Prices

Demand for Newbuildings Increases, Despite Higher Prices

Higher prices and lower earnings haven’t deterred ship owners from investing in the newbuilding market. In its latest weekly report, shipbroker Allied Shipbroking said that “with dry bulk, tanker and gas markets remaining firm, and container operators continuing to invest in alternative-fuelled vessels despite waning earnings, last week saw a fair amount of deals across sectors coming to light. Orders placed at Wuhu Shipyard will allow future owners Union Maritime and EGPN to take advantage of growth in the green fuel market, with the shipyard stating that they are specifically designed to transport biofuels and chemicals including methanol. South Korean builders continue to take the majority of gas newbuilding contracts, with an additional three LNG carrier orders in the past week. Focus on these high valued vessels has helped a number of South Korean shipbuilders make good progress towards annual sales targets already. After dry bulk newbuilding prices declining in recent months, prices are beginning to appreciate as yards fill their slots and improving earnings increase interest in the sector. Taiwanese owner Wisdom Marine certainly feels the time is right, ordering two Handysize vessels at Nihon Shipyard having just ordered two at Namura Shipbuilding in March”.

Source: Allied

In a separate note, shipbroker Banchero Costa added that “newbuilding orders kept increasing as prices did, buoyed by a lack of space in the yards and rising costs. Emarat Shipping has reportedly stepped in to take 4 x Ultramax at SUMEC New Dayang which Marine Capital failed to conclude (4 + 4 LOI signed Dec 2022). Deliveries May, June, August and September 2025. Densay signed an LOI for 2 + 2 SDARI 63,500 dwt with deliveries from mid2025 onwards for around $32.5 mln each at CSSC Jinling. A European buyer contracted 2 x TESS 64 Ultramax at Tsuneishi Zhoushan for $35.5 mln.

Source: Banchero Costa

NACKS committed last 2 x Ultramax berths at over $34 mln, still LOI stage for dely Q2 2025. Japanese shipowner Nissen Kaiun is linked to an order for 4 x MR tankers worth a total of $185 mln at Hyundai Mipo Dockyard, bringing their orders at Hyundai yards to a total of 20 MRs. It was reported that Metrostar placed an order for a 115,000 dwt LR2 tanker at Hyundai Vietnam for a price around $67.5 mln, delivery scheduled in 2026. Metrostar has other 3 x LR2s presently under construction at the same yard. Containership owners continue to heavily invest in dual fuel ships: french carrier CMA CGM placed an orders for 16 dual-fuel containerships at CSSC: 12 x 15,000 TEU (methanol powered) and 4 x 23,000 TEU (LNG fuelled). The deal is worth around $3.06 bln. The order for the methanol dual-fuel ships has been spread between Jiangnan Shipyard and Dalian Shipbuilding Industry (DSIC) while Hudong-Zhonghua will build the 23,000 teu units”.

Meanwhile, in the S&P market was quiet this past week. Allied commented that “activity easing down ahead of the Easter holidays. In the dry bulk sector, the volume of transactions was lower week-on-week, with Supramaxes being the main preference for buyers. The average age of vessels sold was 13 years, a year older than the 12 month average. The tanker sector also saw less vessels closing deals, possibly affected by the negative sentiment after the OPEC+ announcement to cut production. Last week was heavily focused in the MR size segment, with two large en-bloc sales sustaining the product tankers SnP activity. Contrary to the usual average age of ships changing hands, last week’s vintage averaged at 13 years”.

Source: Allied

Banchero Costa added that “buying interest was focused on Supramax and Ultramax sizes. The Greek controlled Ultramax Sun 63,000 dwt built 2013 Jinling (SS due 2027 BWTS fitted) was reported sold at $23.25 mln; back in January Petit Charm 63,000 dwt built 2013 Chengix was done at $20.5 mln basis survey due. The Dolphin 57 Haut Brion 57,000 dwt built 2011 Taizhou Kouan (SS due 2026 BWTS fitted) was committed at $14.5 mln, last month the GF Orient 57,000 dwt built 2011 STX Dalian was sold at $13.5 mln.

Source: Banchero Costa

The large, boxed Handysize Eldoris 37,000 dwt built 2011 HMD was purchased at $16.5 mln, the sister vessel Shanghai Pearl was reported back in February at $13.75 mln. In the tanker market, the Greek controlled MR Doric Pioneer 50,000 dwt built 2013 HMD (SS due 2028 DD due 2026 BWTS fitted eco ME ) was sold at $34 mln. Nigerian buyers were reported to be behind the purchase of Norient Saturn 40,000 dwt built 2007 Santierul (SS due 2025 BWTS fitted) at $19.8 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping