Newbuildings Back in the Foray

Ship owners appear to be making a final push in the newbuilding market, prior to the end 2020, in anticipation of improving market conditions, moving forward. In its latest weekly report, shipbroker Allied Shipbroking said that “a strong push was noted in the newbuilding market during the past week or so, given the plethora of fresh deals coming to light. This came hardly as surprise, despite the step back in volumes seen just the week prior. Thinking though that we are just a breath before the year’s end, we can expect a vivid new order market (even if it be with its fair share of volatility). For the dry bulk sector, the focus stayed solely on Kamsarmax units, given the firm number of vessels being placed. In the tanker sector, there was a higher “variety” in new orders, with presence of both larger and smaller size units. It is true, that the prolonged bearish mood in freight earnings hasn’t been of much help in providing a more stable trend in the newbuilding market for all the different size segments. As for the other main sectors, the container market pushed things further as of the past week, with a seemingly strong appetite at this point. While in the Gas market things where following closely, while we expect things to continue on the positive foothold they have now established”, Allied said.

In a similar note this week, shipbroker Banchero Costa added that “a massive order for up to 10 x VLCCs (4 + 6) was placed in China. The contracts were signed between CSSC Shipping, Hong Kong and two shipyards, Dalian Shipbuilding Industry and Shanghai Waigaoqiao who were selected for construction with equal shares. Deliveries for the firm 4 units are due in 2nd half 2022 at a price of $85 mln each: orders were placed against 10 year TC from Rongsheng Petrochemical, an affiliated of CSSC. Unisea Shipping, Greece exercised an option for a 156,000 dwt Suezmax tanker at Samsung at a price of $60 mln for delivery May 2023.

Golden Energy Management exercised an option for MR2 at STX Offshore, S. Korea at a price of $36.5 mln for delivery November 2021: vessel to be scrubber fitted and tier III complying. In the gas segment Maran Gas ordered 1 + 2 174,000 cbm LNG carriers at Samsung, S. Korea at a price of $185 mln, with delivery in July 2023. Vessel will be gas fuelled and will have reliquefication system: owners have secured a TC contract from Total. Evalend of Greece ordered 2 x 40,000 cbm LPG carriers at a price of $45.7 mln each”.

Meanwhile, in the S&P Market this week, Allied noted that “on the dry bulk side, it was another interesting week for the SnP market, despite the sluggish pace being reflected in the freight market right now. At this point, there is no clear trend being established in either activity nor buying interest. We experienced a rather healthy sales market across most type of vessels (size, age, design, etc.).

With all that being said, we may well encounter a firm volume of activity take place throughout the remainder of the year. On the tankers side, it was a surprisingly strong week in terms of activity being noted, with current buying appetite seemingly varying across most of the different size segments and age groups. However, thinking about the uninspiring trends being seen from the side of earnings for some time now, it remains to be seen whether this trend of late can be sustained. Notwithstanding this, given that we are a breath before the closing of the year, we could expect many more interesting deals to come to light”.

Banchero Costa added that “in the dry bulk segment, after offers were invited on 1 st December 2020 a Japanese controlled ore carrier Gaia Celeris 229,000 dwt built in 2006 at Namura was sold at $11.7 mln to Spore based buyer. Furthermore Wookie 81,000 dwt built in 2012 at Guanzhou was sold at low $12 mln to Modion Maritime. Scorpio continued with the offloading of tonnage from its dry bulk fleet: 3 x Ultramax units Sbi Gemini 63,000 dwt built in 2015 at Chengxi (BWTS fitted, Scrubber fitted) and Sbi Poseidon and Apollo 60,000 dwt built in 2016 at Mitsui (BWTS and scrubber fitted) were respectively sold at $16 mln and the last two at $38.4 mln en bloc. In the Supramax segment, Chinese buyers were reported to be behind purchase of Glovis Madrid 57,000 dwt built in 2013 at Xingang sold at $9.5 mln (BWTS fitted); two weeks ago it was reported Kavo Platanos 56,000 dwt built in 2011 at Jinling gone always to Chinese buyers at $9.4 mln. Another Japanese Supramax Orient Iris 55,000 dwt built in 2014 at Kawasaki (SS 03- 2024 / DD 02-2022 / Techcross BWTS fitted) was reported sold to Greek buyers around $14.5 mln.

Three months ago Western Seattle 58,000 dwt built in 2014 at Tsuneishi was reported at $14.5 mln. In the tanker market, VLCC Najaf 308,000 dwt built in 2000 at Hyundai (SS/DD due) was sold to Greek buyers at $19.7 mln: she was classed as FSU. Few months back Chryssi 300,000 dwt built in 2000 at Kawasaki was reported at $22 mln. Furthermore a Stolt controlled St/St chemical tanker Stolt Botan 11,000 dwt built in 1998 at Fukuoka (18 cargo tanks) was sold at $3 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide