Dynamic Newbuilding Activity Focused on Container and LNG Ships

The newbuilding market is exceeding expectations so far this year, with slots being snapped up quickly mainly for the construction of LNG and Container ships. In its latest weekly report, shipbroker Allied said that “the newbuilding market recorded a strong performance for yet another week with the containership sector still taking up the lion share of fresh projects reported. With containership earnings still showing a fair bit of strength, we continue to see a fairly well distributed diversity in the orders being placed, with this weeks orders indicative of this trend. Also noteworthy is the upward course of the dry bulk sector and especially in the smaller sizes, which can be attributed to a fair degree to the positive momentum seen in their respective freight markets. Newbuilding prices remain at five-year high levels. Compared to the rest of the main sectors, the tanker market is still holding inactive for the time being, held back by the persisting poor performance still being seen in the freight market. Overall this could well be in the midst of change as well, given the slight positive tone noted of late, especially for the small product tankers. However, given the high volatility, it remains to be seen whether this condition will be able to change in the upcoming period and be able to drive an increase in buying appetite”.

In a similar note, Banchero Costa added that “this week total number of Newbuildings ordered is much lower that previous week. For sure the war in Ukraine will affect the NB market. Prices could rise even higher with shortages of materials. Celsius Shipping added 1 more LNG 180,000 cum at Samsung bringing at 9 the order for sister vessels. Vessel will be delivered 1st half 2026 (twin engine, gas fuelled) and price level is $208 mln. Vessel already fixed for long period to major charterer. Still in LNG, Knutsen OAS Shipping ordered 2 x 174,000 cum at Hyundai Samho (twin engine, gas fuelled) for delivery 3+6/2025 at $224.5 mln per unit.

Vessels are chartered out to Polish charterers. Containers Hyundai Samho got order for the 1st Neo-Panamax container vessels from Cido Shipping. Total vessels ordered is 7 x 7,700 teu (LNG dual fuelled) for delivery 2nd half 2024 at price level of $120 mln each. Huaxia Financial Leasing China ordered 2 x 63,500 dwt at Nantong Xiangyu for delivery 2024 at reg $32 mln per unit”.

Meanwhile, in the S&P market, Allied commented that “on the dry bulk side, the SnP market moved on a fair trajectory, given the ample activity levels taking place during the past week or so. At the same time, we see activity taking shape across all the different size segments and age groups. This underlines the robust sentiment that is surrounding the dry bulk sector right now, despite the slight negative pressure noted of late in terms of freight earnings. All -in-all, the general momentum still supports the idea of a fervent SnP market in the near term at least. On the tanker side, things continued on a positive trend as of the past week, given the relatively fair number of transactions taking place. For yet another week, we saw activity skewed in favour of the MR size segment, somehow inline with the recent trend from the side of earnings. Moreover, thinking about the steep upward movement in freight rates across all sub-markets, it is yet to be seen how interested buyers will respond to this shifting market regime”.

Banchero Costa said that in drybulk, “Chinese Buyers for region of $22 mln whilst the korean built DARYA KIRTHI 80,000 dwt blt 2012 STX, freshly docked and BWTS fitted, achieved a price of $26.5 mln. A further comparative sale is the Japanese controlled CORAL CRYSTAL 78,000 dwt blt 2012 Shin Kurushima (BWTS fitted / SS due 2025) which was inviting offers last week and reported now sold at price close to $26 mln. We reported in the previous weeks the ULTRA INITIATOR 61,000 dwt blt 2019 Oshima (eco engine – BWTS fitted) sold to Bangladesh, that sale apparently failed and we hearing now the ship is sold to Chinese buyer for region $37-37.2 mln. The Supramax sector was very active, several chinese built ship between 10-12 years old were sold at relatively interesting prices.

The latest and more relevant one being the ASIAN CHAMPION dolphin 57 design blt 2012 Cosco Zhoushan which invited offers last week and it’s closely negotiating in excess of $19 mln basis SS due this summer. The Japanese built NEW ABLE 55,800 dwt blt 2014 Oshima (OHBS design, BWTS fitted) was inviting offers last week and reported now sold to undisclosed European Buyer for $26.5 mln. There was a decent activity also in the handy sector, mainly ships region / over 10 years old got sold. The NILE CONFIDANTE 37,000 dwt blt 2012 Shandong Huahaiwas sold at very cheap price of $12.8 mln to Asian Buyer but this include a strong discount for the poor conditions and the SS due soon which requires a huge investment. To compare with the SEASTAR EMPRESS 35,000 dwt blt 2011 Nantong Jinghua was for $16.5 mln”.

The shipbroker added that “the Tanker activity is coming up strongly, more and more interests are lining up and offering on ships which prices’ trend are on the growth. A major deal was registered last week with clients of GNMTC buying 2 Aframax blt 2022 sister mv PHILADELPHIA STAR and NEW YORK STAR both 115,000 dwt blt Daehan for a price of about $61 mln each. Very interesting transactions also in the MR tanker segment for modern eco type ships, the JP Morgan controlled mv LARGO SEA 51,000 dwt blt 2016 SPP (eco engine / BWTS fitted) got sold shade over $30 mln”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide