Newbuilding Orders Still Scarce As 2019 Edges Closer
Newbuilding contracting was once again far from brisk over the course of the past week, following the trend set recently. In its latest weekly report, shipbroker Allied Shipbroking said that “limited newbuilding activity this past week for the dry bulk sector, as sentiment seems to have been negatively affected by the current market volatility and poor freight rate performance. Two new orders (for 2 Supramax and 2 Kamsarmax respectively) were the only bulk carriers orders that were reported last week, ordered in Japanese and Chinese shipyards respectively. Concerns for temporary slumps such as the one seen over the previous couple of weeks, coupled with the fair discount still present between newbuildings and secondhand vessels, has kept owners restrained and far from any excesses in new ordering. Low interest for newbuildings was seen in the tanker sector as well last week, with only one Suezmax order being placed by Turkish owners and one small taker ordered by Chinese owners. Due to improvements in sentiment and market fundamentals though, expectations are for newbuilding activity to improve over the coming months. Prices in both dry bulk and tanker spaces remain relatively stable for now, though with a still fair upward pressure being seen under the surface”.
In a separate newbuilding note, Clarkson Platou Hellas added that it was “a quiet week in the newbuilding market with no dry or wet orders to report. In gas, HHI announced contracts with clients of CMM for two firm 174,000cbm LNG carriers for delivery in 2021. It also came to light that Flensburger (FSG) took orders for two further 4,000lm RoRos for Siem. Delivery of both vessels is due within the second half of 2019. Lastly Pola Rise, Russia ordered four 8,000dwt MPPs at domestic shipyard Krasnoye Sormovo for delivery in 2019. Container capacity is understood to be around 250 TEU”, the shipbroker noted.
Meanwhile, in the S&P market this week, shipbroker Banchero Costa said that “in the Dry Bulk segment, market’s uncertainty was pointed out by few transactions last week. Rumors giving Capesize “Euro Fortune” around 177,000 dwt 2005 built Mitsui as sold to region $15,5 mln were apparently false as Owners were holding out for much higher levels and may withdraw now the ship. The older Panamaxes “Genco Knight” and “Genco Vigour” around 74,000 dwt 1999 built Oshima have found buyers in China at $6,7 mln each. In the Supramax sector, there was another example of the difference in price between quality and Chinese tonnage. TESS Supramax “PM Hayabusa” around 58,065 dwt 2011 built Tsuneishi Cebu was sold for $17 mln to undisclosed buyers whilst a just 1,000 DWT smaller “Nautical Amethyst” around 56.900 dwt 2011 built Jiangsu New Hantong was sold to c. of Loadline Shipping for $11.3 mln only. Dazzling tanker rates were driving second hand market prices northbound. The resale Suezmax ex Yangzijiang was finally flipped to Delta Tankers at $49,5 mln for delivery September 2019. We would remind that the original order for this tanker was placed by Frontline with China Rongsheng s/y (Hull no. H1161 for delivery end 2018) but due to disturbances at said shipyard the vessel couldn’t be completed and hull was shifted to Yangzijiang. Payment terms were 25% deposit and 75% balance on delivery. The Suezmax “SCF Altai” failed and has been withdrawn from the market as Sellers were unable to lift subjects. Also the MR sector had its momentum allowing Sellers to find better prices. The two “Gan Tribute” & “Gan Triumph” around 49,999 dwt 2010 built HMD were sold at $19,5 mln each to Jo Tankers. Following the sale of “Alpine Minute” and “Alpine Mystery” around 49,999 dwt 2009 built HMD to c. of Norden, also the sister ships “Alpine Moment” & “Alpine Magic” same year were sold at same the price, namely region $17 mln each, but we are unable to confirm Buyers entity yet. The older MR2 “Ardmore Seatrader” around 47,000 dwt 2002 built Onomichi found Buyers in India for just in excess of $8 mln”, Banchero Costa concluded.