Newbuilding Activity: Dry Bulk Carriers in Demand

Orders for dry bulkers have grown over the past week, with more owners investing in the market’s long term prospects. In its latest weekly report, shibproker Allied said that “ordering activity lost some of its pace last week, but dry bulkers remained in focus for owners. While SnP activity remains healthy, some have noted that interest has been shifting towards Newbuildings as of late. On this front, more details have emerged of Densay Shipping’s contracting activity in China, which constitutes 6 ammonia-ready vessels across three Chinese yards (of which we reported four last week). Seatanker’s order for up to 8 vessels represents the third substantial Kamsarmax order this year, following on from last week’s order from Oldendorff Carriers for up to 9 vessels and Shandong Shipping’s order for 12 back in April”.

Meanwhile, Allied added that “in the tanker sector, Nissen Kaiun has secured yet more MR vessels, with at least 12 ordered so far this year. Hyundai yards are proving themselves to be the top choice for MR projects, accounting for over half of the vessels ordered this year, with the total heading steadily towards 40 vessels. MOL has contracted a methanol carrier able to run on both methanol or conventional fuel. The deal is backed by long-term employment, but the 17% premium over the price of a standard MR highlights that these are early days for methanol as a fuel”, the shipbroker concluded.

In a separate report, shipbroker Banchero Costa said that it was “an active week in the newbuilding market with many deals reported in the bulker sector. Friedriksen-controlled Seatankers Management is reported behind an order of 4 + 4 Kamsarmax at Qingdao Yangfan; the price reported $33 mln each and deliveries in 2025 and 2026. Also the Chinese Owner Fortune Ocean Shipping ordered 4 Kamsarmax (firm), they shipyard selected is Hengli Heavy Industries, the price reported $32.5 mln.

In the Ultramax segment, Turkish Owner Densay added more 63,000 dwt units for a total of 8 units now on order at CSSC Jinling, New Dayang and Nantong Xiangyu. The price reported is $32 mln each, deliveries between 2025 and 2026. In the tanker market, Canada based Algoma Tankers is behind an order of 4 ice class 37,000 dwt Handy at Hyundai Mipo at $46.5 mln, deliveriesthroughout 2025. SteelShips booked an order at K Shipbuilding for 2 scrubber fitted 50,000 dwt MR2 product carriers. The vessels will be dual fuel LNG and the price reported $46.3 mln each, dely in 2025”.

In the S&P market, Allied added that “on the dry bulk side, activity appeared more subdued during the past few days or so. Thinking about the disconnection in terms of momentum between freight and SnP markets, the periodical standstill in volume of transactions seems unavoidable for the time being. On the tanker side, the momentum prevailed fairly “strong” for yet another week, given the numerous transactions taking place during the same time frame.

This market’s behavior, when combined with the overall bullish regime in terms of freight earnings, explain firmly the upward momentum in asset price levels for some time now. At this point though, only the VLCC market indicates some slight signs of stagnation, with prices remain flat for over 3 months now. For the time being, given the prevailing conditions, we can hardly expect any considerable shift in trend”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide