Newbuilding Market Showing Signs of Renewed Demand

Specialized carriers, like LPGs and LNGs remain the main newbuilding candidates for new investments, undertaken by ship owners, who have returned in the newbuilding scene with renewed vigor. In its latest weekly report, shipbroker Banchero Costa said that “in the gas market, a Greek owner moved for two 38k cu.m. LPG carriers at Hyundai Mipo with delivery for June and December 2021. Always in S. Korea, Hyundai Samho received an order for two 90k cu.m LPG carriers with deliveries fixed for 2nd half of 2021. Furthermore, Maran Gas has exercised an option for an additional very large LNG carrier (around 170k cu.m.) with delivery 1st half 2022. Concerning tankers, Onex DMCC has agreed with Hyundai Samho for the construction of 3x LR2 product carriers (scrubber fitted) at $171 mln ($57 mln each) with delivery set for 2021. In China, Wuhu shipyard received an order for two 22,000 dwt chemical tankers from TB Marine Shipmanagement at around $35 mln per vessel (vessels to be dual fuelled) options may be attached to the order”, the shipbroker said.

Source: Allied Shipbroking

In a separate report, Allied Shipbroking said that it was “another firm week for the newbuilding market, with a robust flow of fresh orders coming to light the past few days. For yet another week, the tanker sector had a good “performance” in terms of volumes surfacing, with interest shifting between the different size segments. Furthermore, the current upward new ordering momentum has been well backed by other sectors such as that of the containerships and gas carriers, with plenty of projects being noted. On the other hand (but inline with previous weeks), the dry bulk sector has remained very quiet, with activity there being on a clampdown. This comes to a sharp contrast with the given rally and overall recovery noted in the freight market. Notwithstanding this, we can expect a vivid newbuilding market to take shape over the upcoming weeks, given that as we are getting closer to the final part of the year, most parties will likely try to finalize their open interest relatively soon”, Allied said.

Meanwhile, in the S&P market, Banchero Costa noted that “the past week showed several operations. The Capesize ‘Harriette N’ (176k/11 blt) was sold to Chinese interests for $24m. The week was also 4 Panamaxes sold, the ‘Clipper Victory’ (77k/15 blt) to Chinese buyers for $20m, the ‘Vitagrace’ (77k/01 blt) for $6.5m, the ‘Unerdog’ (74k/06 blt) to Greek buyers for $8.5m and the ‘Ergina Luck’ (73k/99 blt) for $6.1m. The ‘Naess Intrepid’ (63k/15 blt) and sisterships ‘Naess Absolute’, ‘Naess Endurance’ and ‘Naess Courageous’ were sold to CDBL (HK) in an enbloc deal for a price of $18.75m which is still under subjects due in October. Moreover, the 2 Supramaxes ‘Bomar Amber’ (58k/12 blt) and ‘Lady Mary’ (52k/01) were reported sold for $15m and $5.5m respectively.

Source: Banchero Costa

On Handysizes, the ‘CS Star’ (33k/11 blt), ‘Sam Phoenix’ (34k/11 blt) and ‘Courageous’ (28k/04 blt) were reported sold for $10.3m to Chinese, for $8.2m to undisclosed and for $5.75m to FEastern buyers respectively. The tanker market was mostly characterized by en bloc deals. Frontline agreed for a swoop operation for the 10 scrubber fitted Suezmaxes ‘Marlin Sierra’ (150k/19 blt) and its sisters. The deal includes cash and shares for a total value of $675m, the operation will guarantee the seller Trafigura an 8.48% stake in Frontline along with a T/C back of 3 years for 5 vessels at a rate of $28,400/d with 50% profit share above the base rate. Another leaseback transaction was agreed between Navios maritime and Chinese buyers. The vessels ‘Nave Cielo’ (74k/07 blt), ‘Nave Ariadne’ (74k/07 blt), ‘Nave Atropos’ (74k/13 blt), ‘Nave Equator’ (50k/09 blt), ‘Nave Pyxis’ (50k/14 blt) and ‘Bougainville’ (50k/13 blt) were sold for $90.8m bss a leaseback with a period of 6.4 years. Navios Maritime entered into another deal (sale and leaseback) with Chinese buyers for the ‘Nave Equinox’ (50k/07 blt), ‘Nave Velocity’ (50k/15 blt) and ‘Nave Orbit’ (50k/09 blt). Lastly, the ‘Torm Torino’ (50k/16 blt) and ‘Torm Titan’ (50k/16 blt) were reported sold to Japanese buyers in a deal with a long term leaseback”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide