Newbuilding Activity Showing Signs of “Life”

Most of the activity these days is centered around the S&P market, with ship owners looking for quality tonnage, mainly in the dry bulk market. However, some activity was also evident in the newbuilding market as well. In its latest weekly report, shipbroker Allied Shipbroking said that “it seems as though we have seen some sort of revival in buying interest in newbuilding projects as of late, as a series of fresh orders came to light during this past week. In the dry bulk sector, the increased activity of previous week resumed, with orders amounting to a further 6 units being added to the orderbook. Given the relatively encouraging scene that we were witnessing in the freight market during the previous couple of months, we are starting to see higher conviction that the worst part of the drop in demand has passed. All this has led to a mounted interest, which could well continue during the final two months of the year. On the tankers side, it was an impressive week as well, given the discouraging freight market that has been noted as of late. This past week, we saw 10 units being added to the orderbook. It is likely, that many are seeing the market reach close to a temporary floor with regards to earnings, betting on a much-improved demand-supply balance being reached in the coming years. However, given the immense uncertainty still overshadowing this sector, we do not expect the ramp up of activity noted this past week to continue on a similar pace in the coming weeks”, Allied noted.

Banchero Costa added that “the focus was still on the tanker segment: CIDO Shipping Hong Kong made return to newbuilding market by ordering 2 x VLCC 300,000 dwt units at Hyundai Heavy, Korea for delivery in 2022 at en bloc price of $177 mln (or $86.5 mln apiece). Unisea of Greece inked its first duo of Suezmax orders with Samsung HI: the cost is approximately $55 mln each and deliveries are set for December 2022 and March 2023. Finally Viken Shipping of Norway added 2 x high specs LR2 110,000 dwt units at GSI (Guangzhou Shipyard International), China with delivery in 2023: units to be dualFuel, Tier-III, latest ME generation and will go against TC to Total. The price rumoured was around $60 mln each”, the shipbroker concluded.

Meanwhile, in the S&P market this past week, Allied said that “on the dry bulk side, for yet another week, we experienced a very firm Secondhand sales market, given the relatively “excessive” number of units changing hands. At this point, we are witnessing some sort of attuned buying appetite across the different size segments and age groups (with most though concentrated around the 10 year old level). During the past week, we saw a boost in the bigger size segments too, despite somehow the steep downward correction in freight returns of the past few weeks or so. All-in-all, given the general uncertainty since the onset of the Covid-19 pandemic, it is highly unlike this trending of late to be sustained for a prolonged period. On the tankers side, we witnessed a vivid market as well, with a good number of tonnage being concluded. This came rather as a surprise, taking into consideration the uninspiring track in terms of freight earnings. Given all this, it is hard to see how this level of activity can be sustained for long”, the shipbroker noted.

Banchero Costa added that “4 x 180,000 dwt Capesize units Beihai built went to Greek buyers for $64 mln enbloc (all SS due in 2021): TIGER JIANGSU built in 2010, TIGER LIAONING, TIGER SHANDONG and TIGER GUANGDONG built in 2011. The similar AQUA VISION 180,000 dwt built in 2011 at Dalian was sold to a Greek buyer for $15.75 mln. As a comparison, the Japanese KING ORE 177,000 dwt built in 2010 at Namura (scrubber fitted) was sold to UK based buyers for $19.5 mln: apart of the scrubber premium this highlights the difference between Chinese and Japanese tonnage. The only relevant sale to confirm in the Panamax/Kamsarmax segment is the GEMINI OCEAN 82,000 dwt built in 2017 at JMU reported at mid $20 mln. A Chinese Panamax DEWI PARWATI 75,700 dwt built in 2011 at Guangzhou Huangpu was sold for $9.4 mln to Chinese. The Handysize segment was the real driver of second-hand activity: NEW EVEREST 35,000 dwt built in 2009 at Shikoku (BWTS fitted) was sold between $9.5-high $9 mln. The comparable RAINBOW QUEST 35,000 dwt built in 2011 at Shanhaiguan was sold to undisclosed for $7 mln, again evidence of the discount of Chinese tonnage versus the Japanese. GLORIOUS SUNLIGHT 28,000 dwt built in 2013 at Imabari was sold to Greeks at $7.2 mln. The PANVISION 28,000 dwt built in 2011 at Shimamani was sold to Greek/Cypriot at $6.5 mln and the FAIR WINDS 28,000 dwt built in 2009 at Shikoku was sold to undisclosed for $6.5 mln. In the tanker sector, the 2005 VLCC OLYMPIC LOYALTY II 307,000 dwt built by Samsung was sold at $32.5 mln. In the product tanker segment Marflet rumoured buying the GLAFKOS 50,000 dwt built in 2013 at STX for price of $23 mln and the ATLANTIC MIRAGE 51,000 dwt built in 2009 at STX for $16.3 mln”, the shipbroker said.

Nikos Roussanoglou, Hellenic Shipping News Worldwide