Newbuilding Activity Lacklustre, But Second Hand Ships Sales Rather Vivid
With Easter Holidays expected to dominate a large part of the ship owning community in the next couple of weeks, newbuilding activity appears to have slowed down, compared to the past couple of weeks. In its latest weekly report, shipbroker Allied Shipbroking said that it was “a rather mediocre week for the newbuilding market in terms of activity, with just a handful of fresh orders coming to light these past few days. The increased level of uncertainty being expressed by most market players across all the main sectors continues to derail interest for fresh orders. Given its vulnerability to the ups and down noted in the freight market, as well as the tighter finance conditions, it seems self evident and of little surprise if this trend continues on for most of the first if not the second half of the year. Now, more specifically, for the dry bulk sector, we noted a fairly interesting week (or at least more interesting than the week prior), with a good flow of new order being placed, especially for the Kamsarmax size (which has shown increased new ordering appetite amongst owners this year). Things on the tanker side were relatively subdued, with the market still struggling to sustain a more stable sentiment as to the future prospects”, Allied said.
In a separate newbuilding note, shipbroker Banchero Costa added that “in the dry segment, ICBC placed an order for 4 additional Kamsarmax at COSCO Yangzhou. Vessels will be SDARI design 82,000 dwt. In Japan, 2 x Ultramax (around 66,000 dwt) were signed by Doun Kisen at Mitsui for delivery end 2020 and beginning 2021. Furthermore, Hakodate received an order from Kobe Shipping and Sato Steamship with delivery during October 2020 and January 2021. In the gas sector, NYK Lines has ordered a 174,000cbm LNG carrier at Hyundai Samho with delivery during July 2022. She has secured an employment for 20 years from Edison Utility. In the tanker segment, Greek Owners Pantheon Tankers has signed a letter of intent for 2 + 2 (optional) Aframax tankers with delivery in 2021 at Shanghai Waigaoqiao. Price to be around $44 mln. Finally, Japan’s Shoei Kisen Kaisha exercised the option for 4 additional 11,000 TEUs units at Imabari for delivery 2022, in agreement with YANG Ming Marine Transport that will charter them for a long period”, the shipbroker said.
Meanwhile, in the second hand market, Banchero Costa said that “it was a fairly active week both on tankers and bulkers across the different segments. In the drybulk, the largest tonnage reported sold is a Chinese Panamax “SILVER DRAGON” around 75,000 dwt 2006 built, which was sold to Modion region $8.2 mln. An interesting deal for the structure of the sale was the “SOFIE VICTORY” around 63,000 dwt 2016 built New Time, which was purchase by Belships (active buyer in the market) in a cash and share deal; with a reported price of $24.15 mln, it looks very firm compared to other similar opportunities. Same Buyers purchased also the “AMIS LEADER” Tess 58 2010 built Tsuneishi Zhoushan for a more comparable market price of about $13.5 mln. In the Handysize segment, PCL sold the “GLORIOUS SUNRISE” around 38,000 dwt 2015 built Imabari logger Handy BC to clients of Pola. Tanker-wise, the most interesting deal was for a fleet of 3 product tankers: a block deal was concluded for 3 x MR2 with Celsius shipping being the buyer of “ALPINE ETERNITY“ around 46,000 dwt 2009 built HMD, “ALPINE LOYALTY” around 46,000 dwt 2010 built HMD and “ALPINE VENTURE” around 46,000 dwt 2010 built HMD for enbloc price of region $54 mln. In the crude sector, the only sale we recorded was the “MARAN CAPELLA” around 160,000 dwt 1998 built Daewoo, Buyers and price are not available (we should be able to report you in the next edition)”, the shipbroker noted.
Allied added that “on the dry bulk side, we witnessed a slight easing in terms of secondhand transactions these past couple of days. This can be seen somehow as a disconnection in respect to the slight improvement noted of late in the freight market. Notwithstanding this, buying appetite is holding at rather healthy levels, while we can expect a gear up in activity in the short run, especially for the medium size units, which have shown the most potential as of late. On the tanker side, a fair amount of activity was noted during the past week, holding on track with the average volume noted of late. Interest here seems to be constantly shifting between the different size segments, as well as, different age groups. However, once again, it was the MRs that took up the lion share of reported activity, with buying appetite for these smaller product tankers having returned and apparently in force”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide