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Ship Owners Load up on Newbuilding Bulk Carriers

The current market sentiment appears to be rather bullish when it comes to dry bulk newbuildings. In its latest weekly report, shipbroker Allied Shipbroking said that “this was another impressive week for the dry bulk newbuilding market, with buying appetite seemingly being refreshed, reflecting the enhanced sentiment and the improving fundamentals. Focus was given last week on the Kamsarmax and Ultramax segments, with 12 new units being added to the orderbook. The rising momentum noted in freight rates, the healthier overall balance between demand and supply and the hope that a major part of the pandemic implications have now been passed, have all seemingly contributed to the revival in interest for new orders. We expect to see more activity take place in the coming weeks, given that we are still riding off the positive overall trend. On the tanker side, things were much quieter last week, following the subdued interest that has been noted of late. Here, things were slightly different, as buyers are not yet confident that demand will bounce back relatively soon, while prices are not yet attractive in the eyes of most. However, this may all change as we proceed further into the first quarter of 2021 and we start to see improved supply side fundamentals taking shape”.

Source: Allied Shipbroking

In a separate note, shipbroker Banchero Costa added that “in general, a quiet start to the year for newbuilding orders, mainly also driven by high steel prices and strong local currencies against the US Dollar. An interesting order was placed across the new year with Bangladesh-based messrs Meghna firming 4x Ultramax 66.000 dwt design with Yamic for delivery in the 2nd half of 2022 to 1st half of 2023, Tier III at price of about USD 25.5 mln each.

Source: banchero costa &c s.p.a.

The Containership orderbook, being supported very much by present firm rates, is filling the lines with several contracts signed in China, amongst which a Chinese company part of Jiangsu Port Group booking 3x feeder abt 1100 teu at Tsuneishi Zhoushan for about USD 20 mln each and deliveries within 2022”, the shipbroker said.

Meanwhile, in the S&P market this past week, Allied said that “on the dry bulk side, we witnessed another active week, as buying interest seems to have further intensified as of late due to improved sentiment. Activity is further fueled from the rising momentum of freight earnings and positive momentum noted in terms of prices. Focus was spread last week across all sizes, but the worthiest figure to be stated is the 5 Capes that changed hands. Another noteworthy fact is that buyers are not focusing anymore only on more vintage units, but have expanded their interest to younger units as well.

Source: Allied Shipbroking

On the tankers side, it was also an impressive week in terms of activity taking place, with low second-hand prices and increasingly keen sellers helping ramp up activity and feeding the appetite of many bargain hunters. Action was spread among different size classes here as well, but the majority of transactions focused on oil product carriers. This is a reflection in part of the more positive stance taken by most on this sub-segment compared to that of the crude oil market”.

Banchero Costa added that “in a rallying Dry Cargo market, many buyers have taken the opportunity of raising rates, which has reflected in a plethora of sales last week, leading to about 10 Capesize, 10 Panamaxes/ Supras, and 6 Handies changing hands. Buyers are notably coming from Greece and Far East, China the most. For Tankers, the sentiment is opposite to the one for Bulkers. Nevertheless 3 VLCCs have changed hands, with the most modern being ‘HUA SAN’ abt 318,000 dwt 2008 SWS, distressed sale ex Ocean Tankers, which ended up with Greek buyers at USD 29.5 mln.

Source: banchero costa &c s.p.a.

The Aframax ‘ESTEEM BRILLIANCE’ abt 110,000 dwt 2006 is now sold at USD 13.2 mln, definitely lower than any last done (for instance ‘BERGINA’ abt 105,000 dwt 2007 Tsuneishi was sold 2 months ago at USD 17.2 mln) however she has SS/DD promptly due and she just turned 1 year older. In the MR2 segment, Eastern Mediterranean have taken over 3 resales abt 50,000 dwt ex Hyundai Mipo for delivery 2021, at an opportunistic price of USD 35 mln apiece”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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