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Dry Bulk: Newbuilding Prices Inch Higher

A slight increase in demand, at least in terms of enquiries, has prompted shipbuilders to try to move newbuilding prices for dry bulk units to higher ground. In its latest weekly report, Allied Shipbroking noted that “despite the slight slow down in activity partly due to the Easter holidays, it seems as though the underlining trend in prices offered by shipbuilders is still on a gaining path. Quotes especially for dry bulk units are rumored to be on the increase, with many shipbuilders finding the opportunity that has been presented by the fact that we have seen a slight improvement in interest from potential buyers and considerable increases in secondhand asset prices. It seems as though the later has played a more important role in this regard, given that we haven’t seen similar trend evolving for tanker units nor other vessel types for now. It looks as though these trends will follow through to at least the start of the summer season, though at the same time, in terms of volume of new orders we don’t expect anything spectacular but surely more then what we have been seeing over the past twelve months”, the shipbroker said.

Meanwhile, in a separate newbuilding repot, Clarkson Platou Hellas said that “during the previous week Odfjell announced that they have now signed contracts for two firm 38,000dwt ‘super-segregator’ stainless units (40 tanks) with Hudong Zhonghua (part of the CSSC Group) in China. Delivery of the first unit is due in June 2020 and second in September. Odfjell are understood to have options for further vessels. Whilst finalised in February, it has now come to light that Lundqvist have added a 112,000dwt Aframax to their orderbook at Sumitomo. Remind you that the owner already has two 106,000dwt units on order for delivery in the second half of 2018. The latest vessel is due to delivery in early 2019”, Clarkson Platou Hellas said.

In the S&P market, things kept up pace, despite the Easter Holidays. According to ship valuations’ specialist VesselsValue, “tanker values have remained stable this week, with no sales to report. However, in the dry bulk market, VV said that “the Capesize Mount Meru (179,100 DWT, Jul 2009, Hyundai HI) sold for USD 28.2 mil, firming values. The Panamax vessel United Galaxy (82,100 DWT, Jul 2012, Tsuneishi Zosen) sold SS Due for USD 20.5 mil, vs VV value USD 21.15 million. Supramax values firmed this week, the JS Bandol and JS Pomerol (58,000 DWT, Jan 2010/May 2011, Dayang Shipbuilding Co) sold en bloc for USD 24.0 mil vs VV value USD 23.56 million” VV said. Finally, in the container ship segment values have remained stable this week. The Panamax Rio Charleston (4,300 TEU, Jan 2008, Hyundai Samho HI) was sold for USD 10.6 million.

Allied Shipbroking added that “on the dry bulk side, activity continues to keep pace, with further prices now being noted across most size and age groups. With the buying frenzy having taken hold of the majority of the market, we are seeing a greater rush to secure the higher spec units that do emerge as sales candidates, while sellers are s”ll holding back their units as they have started to feel that delaying the decision to sell by only a few weeks could fetch a considerable gain. On the tanker side, things have started to look slightly more promising despite the fact that activity still remains limited at this point. The number of available sales candidates circulating the market at this point is minimal, while the fact that we have gone through the first quarter of the year, with activity still remaining fairly buoyant and rates having held to considerably good overall levels has created a renewed confidence amongst buyers albeit only a marginal one”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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