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Market Optimism Boosts Investment in Modern Tonnage

Ship owners are in full swing these days, when it comes to newbuilding and S&P investments alike. Over the course of the past few weeks, activity in the newbuilding ordering market has increased considerably and the same has occurred in the second hand market as well.

In its latest weekly report, shipbroker Banchero Costa said that “in China, three Kamsarmaxes were ordered to the Yangzijiang shipyard, the price is unknown but it was reported that the buyer of one of the vessels is Kambara Kisen. It has emerged that the German owner Vogemann ordered 4 x 38k dwt open hatch bulk carriers GREEN 38 design recently. Following this order, the German owner exercised the option to extend the total order to 8 firm units. The latter 4 units’ design will be an upgraded version of the GREEN 38 design. In the tanker segment, Capital Marine and Trading ordered to Hyundai HI 10+4 x 300k dwt dual fuel VLCCs for region $110 mln each. Keeping the focus on the big tankers, the Greek owner Lykiardopulo has ordered one VLCC to Hyundai Samho for a price of $91.5 mln that will be delivered during Sep ’21. Teekay Shipping ordered to Samsung a DP2 Suezmax shuttle tanker, price is considered to be above $132 mln due to the particular characteristic of the vessel including its expensive dynamic positioning system. Another order in the tanker segment was made by Masumo Kaiun, which exercised the option for the construction of a third MR 50k dwt for delivery in Jun ’20. Moving to the gas sector, Hyundai HI received an order for a LNG carrier 174k cbm. The vessel cost to the buyers around $189 mln and it will be delivered in Jan ’22. Kumiai Senpaku ordered to a Chinese shipyard the world’s first LPG carrier which will dispose of a four stroke dual fuel engine burning LPG. Hyundai Mipo received two different orders for a total of 4x38k cbm LPG carriers. The first two vessels were ordered by Nieto for a price of $52 mln each, whereas the second two vessels were ordered by Thenamaris who paid a region price of $49 mln each. To conclude the week, Petredec returned to Jiangnang shipyard for 2+2 22k cbm ethylene carriers. The reported price amounts to $50 mln per vessel and the delivery set for Jul ’21 and Jan ’22”, said the shipbroker.

In a separate newbuilding report, shipbroker Allied Shipbroking added this week that “the consistent positive momentum that has been noted during the last months seems to have enticed the possibility for fresh new orders. However, despite the overall bullish sentiment taking hold of the market, newbuilding activity has been reasonably soft up to now. It will be interesting to see if this pattern continues during the final quarter of the year, as we expect freight rates to remain relatively encouraging, even given the latest losses posted. Last week, 11 new dry bulk units were ordered, all of them at Chinese shipbuilders. Meanwhile, interest for new orders on the tankers side remains robust, with interest remaining positive even if freight rate prospects having underperformed. However, given that trade demand is expected to increase during the coming months, the question is if this growth will be enough to justify the 3.3% fleet growth noted YTD. Last week, we saw 15 fresh units ordered, with the majority of them though being still at an LOI stage”, Allied said.

Source: Banchero Costa

Meanwhile, in the S&P market this week, Banchero Costa said that “in the dry market, a modern Capesize “Bulk Success” around 175k dwt built 2014 Jinhai was sold basis SS/DD due at $24.3 mln. Furthermore, two resale Ultramax (H3731 and H3732) built 2019 Shin Kurushima were bought by Japanese investors at $28 mln. Vessels will be given on BBHP to Belships for a period over 7 years. In the Supramax segment, we understand that two Turkish controlled units “Yasa Gulten” around 56k dwt built 2005 Mitsui and “Yasa Ozcan” around 56k dwt built 2006 Mitsui were done at $10.65 mln and $11.3 mln respectively.

Source: Banchero Costa

In addition, C.of Am Nomikos were reported to be behind purchase of two Japanese built units “K Garnet” and “K Opal” around 55k dwt built 2010 IHI at $12.5 mln each. In the handy segment, three units “Emile Bulker”, “Orchard Bulker” and “Sentosa Bulker” around 32k dwt built 2010 Jiangmen Nanyang were bought by c. of Clipper at $7.2 mln each, while last week “Sam Phoenix” around 34k dwt built 2011 Zhejiang Jingang was reported done at $8.2 mln. In the wet market, three VLCC resale (“Hunter Atla”, “Hunter Laga” and “Hunter Saga”), ready for delivery at Daewoo shipyard, will be sold through a sale and lease back deal for 5 years at $60 mln each (including purchase option). Two older MRs “Energy Protector” (around 51k dwt built 2004 Stx) and “Ceylon” (around 46k dwt built 2002 Shin Kurushima) were sold at $11 mln and $7 mln respectively. Back in July, “Torm San Jacinto” around 47k dwt built 2002 Onomichi was reported at $8 mln”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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