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More Newbuilding Deals Reported, As Ship Owners Proceed With Investment Strategies

More Newbuilding Deals Reported, As Ship Owners Proceed With Investment Strategies

Newbuilding activity remained on a healthy track during the course of the past week, as more owners moved ahead with contracting. In its latest weekly report, shipbroker Allied Shipbroking said that “the newbuilding market remained on a relatively “good” track, given the fair number of fresh deals coming to light. Things were very interesting in the dry bulk sector, with relatively firm new order activity being noted. This came partially as a surprise, given the considerable pressure noted in the freight market during the past few weeks or so. However, as we approach the last leg of the year, with many seemingly being on a small “rush” to finalize pending projects before the year’s close, the expectation is that more such deals could come to light. In tanker sector, the pace was far more sluggish, somehow though inline with the uninspiring track noted in terms of freight rates. All-in-all, with other sectors showing some signs of life, as well as the price stability of late, we may well witness a more robust new order market for the rest of this quarter”, Allied noted.

In a separate note, shipbroker Banchero Costa said that “in the tanker sector, it was rumoured about a Project Apollo that could lead to the construction of 40 new tankers that will include 4 + 4 VLCC units, 8 + 8 Suezmax units and 8 + 8 Aframax units: no more details unfortunately were disclosed. Furthermore, Nissen Kaiun was reported to be behind an order for 2 + 2 MR2 50,000 dwt units at Hyundai Mipo with delivery 1st half 2022 at $35.0 mln each. In the dry bulk segment, Shanghai Waoqiao Shipyard (SWS) received an order for 2 x Newcastlemax 210,000 dwt units with delivery during 1st half of 2022: vessels to be priced at $67 mln each. In the gas segment Eastern Pacific added a fourth LPG Carrier 37,500 cbm at Hyundai Mipo: vessel will be delivered in 2022 for a price of $52 mln. Vessel to have dual fuel propulsion”, the shipbroker said.

Meanwhile, in the second hand market, Banchero Costa said that “in dry bulk sector, Kurenai 86,000 dwt built in 2007 at Oshima was sold at $10.2 mln and Crimson Monarch 77,000 dwt built in 2014 at Imabari at $17.5 mln, both to Greek buyers. A strong appetite was recorded for modern (5 years younger) Ultramaxes: sisters GH Citation and GH Black Caviar 63,292 dwt built in 2016 at Guangzhou Huangpu were sold at $17 mln each to Omani buyers, West Treasure 61,000 dwt built in 2014 by Iwagi was sold at $15.85 mln to Japanese buyers. Scorpio kept selling dry bulk tonnage: SBI Hyperion 61,000 dwt built in 2016 at Nantong COSCO was sold at $17.5 mln to Far Eastern buyers and SBI Zeus 60,000 dwt built in 2016 at Mitsui at $18.5 mln to Greek buyers. In the Handysize segment, after offers were invited previous week Andalucian Zephyr 34,000 dwt built in 2014 at Namura was sold at $12.8 mln. Last similar Handysize sold was the Alam Setia 36,000 dwt built in 2013 at Shikoku for $10.5 mln. A Pacific Basin controlled vessel Champion Bay 32,000 dwt built in 2000 at Kanda was sold at $3.7 mln (SS/DD due end 2020). Three months ago, Seattle 31,000 dwt built in 2000 at Saiki was sold for $3.9 mln. In the tanker sector, strong interest was recorded in the VLCC segment: the modern VLCC Takaoka 311,000 dwt built in 2011 at IHI was committed at $44.5 mln to client of Dynacom. Some weeks ago, Pantanassa 317,000 dwt built in 2011 at Hyundai was done at $46 mln. Three others vintage VLCCs were sold: Olympic Legend 309,000 dwt built in 2003 at Samsung was sold at $26 mln, Sealion 318,000 dwt built in 2003 at Hyundai was sold at $27 mln and Ads Page 300,000 dwt built in 2002 at Hitachi at $25.5 mln to Middle Eastern buyer”, the shipbroker concluded.

Allied added that “on the dry bulk side, another strong push in terms of activity noted was due. With a plethora of transactions, especially for the Panamax and Supramax size segments, with no specific direction in age groups at the same time, the overall sentiment in the SnP market remained on a bullish territory. With all other sizes moving considerable attuned, it seems that buying appetite is also on the rise. However, given the significant pressure from the side of earnings, as well as the general uncertainty since the start of the ongoing pandemic situation, it is highly unlike this trending of late to be sustained for a long time. On the tankers side, it was a very interesting week in terms of volume taking place. This can be mostly seen as a very firm VL market, where a strong number of transactions took place. Notwithstanding this, given the uninspiring trend noted in freight returns, we can’t expect this to be sustained even on a short-term basis”.

Source: Nikos Roussanoglou, Hellenic Shipping News Worldwide

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