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Fresh Ordering Keeps Feeding Into the Market

Newbuilding orders have been steadily on the rise during the past few weeks and last week was no exception to this trend. In its latest weekly report, shipbroker Allied Shipbroking said that it was “a rather interesting week for the newbuilding market, given the fair number of fresh orders coming to light. In the dry bulk sector, buying appetite seems to be on the rise, nourished by the general improved sentiment, as well as, the relatively firm freight returns (especially for the medium and smaller sizes). During the past week, we saw new ordering activity being somehow skewed solely for smaller size units. Notwithstanding this, if newbuilding price levels manage to hold fairly stead, we can expect things to remain lively in the newbuilding market for dry bulkers. In the tanker sector, we witnessed a modest flow of newbuilding orders for yet another week. Seeing a relatively “good” buying interest came as a surprise for some market participants, given the general uninspiring trends being noted rom the side of earnings right now. We have however started to see a slowly emerging optimism for the longer-term prospects of this market, something that has likely driven many buyers to look for the opportunity to order now at these prices rather than wait for later. All-in-all, with the Containership and Gas sectors moving on a positive tone in terms of activity noted, this could lead to a further and quicker price hikes to be offered down the line”.

Source: Allied Shipbroking

In a separate note, shipbroker Banchero Costa commented on the newbuilding market that “the tanker segment has seen Atlas Maritime of Greece adding 1 more Aframax 115,000 dwt by declaring an option at Daehan Shipbuilding, South Korea for delivery in 2023. Price in the range of USD 46 mln. Nanjing Tankers, China have ordered 4 x 49,700 dwt MR2 (two units will fly Chinese flag and two units a nonChinese one) at GSI (Guangzhou Shipyard), China for delivery 2022- 2023.

Source: banchero costa &c s.p.a.

Total price approx USD 140 mln. Finally Raffles Shipping Group, Singapore has declared its option for one more MR2 with Penglai Jinlu, China for delivery end 2022 at around USD 33 mln. A special word goes to the container newbuilding market, where there is strong demolition activity, the passage to the new – low emissions – era and major charterers looking for green ships push Owners to new investments”.

Meanwhile, in the S&P market, Banchero Costa said that “in the dry sector, a resale SWS scrubber fitted Newcastlemax Atlantic Bear abt 210k blt 2020 SWS has been purchased by C. of Maran Dry at USD 53 mln. Due to the strong chartering market a strong appetite was recorded for Supramax and Handysize tonnage. Two Winning controlled Supramaxes Winning Angel and Winning Bright abt 58k blt 2012 Nacks were sold at USD 14.4 mln each while a Japanese controlled Mitsui 56 Luminous Nova abt 56k blt 2013 (Tier II no BWTS) has been sold at USD 15.25 mln to Indian buyers. Back in January Western Seattle abt 58k blt 2014 Tsuneishi Zhoushan was reported sold at USD 14.5 mln. A Tier II Dolphin 57 Eastern Edelweiss abt 57k blt 2012 Jiangsu was reported at USD 11.8 mln, in the past weeks Nordic Tinajin and Nordic Harbin abt 57k blt 2012 Yangzhou Guoyu were done at USD 18.55 mln. In the handy segment Alam Sejathera abt 33k blt 2016 Shin Kochi (BWTS fitted) is reported sold to Greek buyers at USD 14.9 mln.

Source: banchero costa &c s.p.a.

Back in January Furness Fortland abt 37k blt 2014 Saiki was done at USD 13.25 mln. In the tanker sector more activity was recorded during the week. When it comes to crude tankers, two ten years old Suezmaxes Suez Hans and Suez Rajan abt 160k blt 2011 HHI have been sold en bloc to Greek buyers at USD 50 mln two weeks ago. SksSegura abt 158k blt 2007 Hyundai Samho (coated) was reported at USD 20 mln while a vintage Aframax Aegean Freedom abt 106k blt 2003 HHI (CAP 1 SS/DD due 2023) was purchased by C. of Spring Marine at USD 10.75 mln. In the product tanker sector, MR Pat Brown abt 50k blt 2009 SPP (BWTS fitted) was reported committed at USD 14.25 mln and a zinc coated MR FPMC 24 abt 50k blt 2010 STX was sold to Greek buyers at USD 12 mln”, the shipbroker concluded.

Source: Allied Shipbroking

In a separate note, Allied Shipbroking added that “on the dry bulk side, the SnP market seemingly took a small “pause”, after a prolonged period of relatively “excessive” volumes taking place. Notwithstanding this, both activity and buying appetite remains at strong levels. This is also evident by the recent upward pressure in asset price levels across all sizes and age groups. Moreover, given the general bullish sentiment, especially in the medium to smaller size segments, we can expect overall activity to stay firm. On the tankers side, interest was on the rise this week, with the activity seen as a mere reflection of this. Given the poor earning levels faced for a fair while now, this increased activity has been of a slight surprise, though much seems to be down to improved optimism for the second half of the year. At this point, we see activity mainly focused on the MRs, though a big portion of this was the large enbloc sale that took place this week. All-in-all, it looks as though buying appetite is on the rise, albeit with a bargain deal focus”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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