Newbuilding: Dry Bulkers In Demand

NEWBUILDING

Despite the overall uncertainty prevailing the global economy, it seems that interest for new orders in the dry bulk sector has started to rebound. This past week we noticed three new orders being placed, depicting the slow but steady return of confidence in this sector. The healthy status of the freight market as of late and the recent balance that has been shaped between demand and supply, have helped increase appetite amongst potential buyers. However, the fact that concerns regarding the future trading conditions have not yet been fully alleviated, has led many to prefer more versatile sizes, such as that of the Ultramax and Handysize. In the tanker market, newbuilding activity has been less inspiring as of late, with very few new transactions being witnessed. This past week, there was no newly reported transaction across all key size class, a trend that is expected to hold given the current market fundamentals. The limited demand and the recent performance in freight rates, has curbed appetite for the time being. However, interest for product tankers has been much more resilient in the year so far (in contrast to crude oil tankers), something that could leave a possibility for further new orders to emerge in the weeks ahead.

In the dry bulk market, Mitsui Trading ordered 2 x 82,000 dwt Kamsarmax units at YAMIC (Yangzijiang facilities) with delivery during 2H of 2021: price reported to be $27.0 mln each. Always in China, Densay Shipping inked 2 + 1 63,500 dwt units (tier II) with Jinling shipyard for delivery in 2021-2022. In Japan, domestic owners Noma Kaiu placed an order for 2 x 64,000 dwt Ultramax units at Tsuneishi Cebu, Philippines with delivery in 2022. Concerning container market, SITC China gave an order for 6 x 1,800 teu feeder containerships to Yangzijiang with delivery starting from the beginning of 2022.

S&P
On the dry bulk side, activity slowed down this past week, but we still noted a considerable number of units changing hands. The gradual improvement in sentiment has helped increase appetite amongst buyers, who see the worst part of the pandemic having passed. Meanwhile, the healthy status of freight earnings being witnessed as of late has helped trigger even more interest amongst buyers, despite the level of uncertainty still looming over the global economy. Meanwhile it was another week were focus was placed, in its majority, on the smaller size units such as Supramaxes and Handysizes. On the tankers side, moderate activity levels resumed this week. The hurt sentiment in the market from the resuming downward pressure being noted on the freight market has curbed buying interest. Last week, transactions in the crude oil market were mainly focused on Aframax units, while there were several deals noted in the MR and smaller oil product tanker segments.

Few interesting sales to report during the week: Misuga Kaiun from Japan sold the LOWLANDS KAMSAR 82,000 dwt built in 2010 (SS freshly passed and BWTS fitted) to Chinese buyers for region $15.1 mln which was fairly strong if compared to the KEY CALLA 83,000 dwt (basis SS due) built in 2010 at Sanoyas which was inviting offers previous week and apparently saw levels region $13 mln (wog). Another interesting sale is the ANDANTE 82,000 dwt built in 2012 at SPP which was sold to Norsul for a price well in region of $16 mln. A bit more vintage Panamax ELENA II 77,000 dwt built in 2006 at Sasebo was sold for $8.1 mln. In the Supramax/Ultramax segment Japanese owners disposed the IKAN SEMBAK 61,000 dwt built in 2012 at Imabari (no BWTS fitted) for a reported price of high $13 mln whilst the Dolphin 57 type WATFORD 57,000 dwt built in 2010 basis SS passed and BWTS fitted was sold for tick below $9 mln. In the older side of the spectrum Eagle Bulk managed to sell the SKUA 53,000 dwt built in 2003 at Toyohashi for a price of $5.4 mln. A modern Japanese Handysize was inviting offers last week and trading, the ANGELIC ZEPHYR 32,000 dwt built in 2014 at Kanda which rumoured to have seen or being sold for region $14 mln (BWTS Panasia fitted). In the tanker market 2 x modern Suezmax built in 2020 at Hyundai Heavy 158,000 dwt were reported sold by Ciner to CSSC Shipping including a long BB charter back for 10 years each and purchase obligation. In the Aframax sector the Libyan controlled EBN BATUTA and INTISAR 112,000 dwt built in 2002 at Samho were reported sold to UAE Buyers for region $10.5 mln each

Nikos Roussanoglou, Hellenic Shipping News Worldwide