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Newbuilding Activity Could Soon Pick Up the Pace

The shipbuilding market could soon start to pick, as China’s major cities are emerging from the lockdowns of the previous weeks. In its latest weekly report, shipbroker Allied noted that “the newbuilding market may well be slowly on the verge of a shift , with the lockdown measures in Shanghai about to end this week and many predicting that this event may bring about an onset of intense NB activity. This coupled with the positive seasonal effect brought about every two years during the Posidonia exhibition in Greece, could see the first half of June with an increased level of new orders coming to light. Already the sentiment in the market appears positive as this week’s activity was held on a vivid tone. Unlike last week, a fair share of the orders that came to light were placed at Chinese shipyards with the LNG and Dry bulk sectors acting as the main market drivers at this point, while the contribution of containership units was stable for yet another week. Prices are still high, which has allowed shipyards to maintain their margins despite the pace of increases noted in shipbuilding costs. Given the still overall positive freight market performance noted across the main sectors, there is little deterrent faced right now from the side of owners when faced with these increased prices and longer delivery schedules”.

Source: Allied Shipbroking

In a separate note, Banchero Costa said that “gas dominated the scene with further LNG New buildings ordered. Adnoc booker 4 x 175,000 cum LNG at Jiangnan (China) for delivery mid 2026 end 2027 at price of $200 mln per unit. Vessels willl be membrane type. Hong Kong based Chellaram Shipping went to Yangzi-Mitsui for Ultramax Bulker 2 x 64,000 dwt for delivery start 2024 at price level of $35 mln per unit.

Source: banchero costa &c s.p.a

Shanghai Waigaichao got order for 2 x 7,000 teu from regional Container Thailand, vessels will be for delivery end 2025 at price of $85 mln per unit. Kumiai Navigation are at Letter of Intent stage for 2 x 86,700 cum LPG at Kawasaki for delivery mid/end 2025 at undisclosed level”.

Meanwhile, in the S&P market, Allied said that “on the dry bulk side, SnP activity was kept at decent levels with most transactions taking place and focused on the smaller size segments in which we have seen less freight market volatility. In general, we see shipowners being intimidated by the fluctuations seen in earnings, with most still showing strong optimism for the market, a mere fact that has further boosted their appetite for acquisitions in short term. On the tanker side of things, the market’s performance appeared reduced, especially when seen in terms of the number of transactions that took place compared to the week prior. Buying interest covered the entire spectrum of the sector while there was increased focus being placed on the MRs and Aframaxes, which also recorded a significant increase in their earnings of late. Similarly, these segments have reached their 5-year highs in terms of values, while in the rest of the size segments, prices are holding at high levels as well”, the shipbroker concluded.

Source: Allied Shipbroking

Banchero Costa added that “in the dry market, after offers were invited last week for the Majullah Harbourfront abt 82k blt 2014 Tsuneishi Zhoushan (BWTS fitted Eco ME ) she has been committed for $31.65 mln. after 2-3 offers were submitted. German controlled Rio Tamara abt 75k blt 2014 Taizhou Kouan (ice class 1C and BWTS fitted)was sold at $24 mln, one month ago sister vessel Rio Grita abt 75k blt 2014 Taizhou Kouan was reported at $22.5 mln.

Source: banchero costa &c s.p.a

After offers were invited last week, Japanese controlled Supramax Xin Xiang Hai abt 56k blt 2012 Mistui (SS/DD due July 2022 BWTS fitted)gone for $23.5 mln basis surveys due. Few weeks back Bulk orion abt 56k blt 2012 Mitsui was done at $22 mln. A vintage handysize Lion abt 28k blt 1996 Naikai (SS due 2026 Open Hatch boxed BWST fitted ) has been sold at $8.3 mln. In the tanker market, German buyers were behind purchase of two LR1 BW Orinoco and BW Lena abt 76k blt 2007 Dalian at $12 mln each , two weeks ago Amalia abt 73k blt 2006 New Century was reported at $10.5 mln. Cido controlled MR1 Claxton Bay avt 37k blt 2010 HMD (SS due 2025 DD due 2023) sold at USD $15.5 mln basis prompt delivery”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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