Dry Bulk Ships: Firm Interest in S&P Market Could Trigger More Newbuilding Orders in the Future
Although it’s still very early days, shipbrokers are starting to see potential signs towards more newbuilding activity, which could be triggered as a result of the strong demand for dry bulk carriers in the second hand market. In its latest weekly report, Allied Shipbroking noted that “there continues to be rumors of the market starting to see some sparks of interest and in turn activity. It is still too early to tell to what degree this is actually a revival of demand in the market or just a small temporary blimp of interest and will inevitably fade out once again. There is a sense that things may well be heading more towards the former, especially given the situation being noted in the dry bulk secondhand market, with the fast paced increases being seen likely to push more and more buyers to once again look at the newbuilding option more favorably. There is a long way to go however, and it will be a while before prices reach such levels that they will push another rush to the shipbuilders”.
In a separate note in the newbuilding market, shipbroker Clarkson Platou Hellas said that “in Tankers, Hanjin Heavy Industries and Construction have signed a contract with Clients of Cardiff Marine for four firm 320,000 DWT VLCC Tankers. Delivery for the four units is slated for 2019 from Hanjin’s Subic yard in the Philippines. Hyundai Heavy Industries (HHI) are reported to have won an order for four firm 114,000 DWT Aframax Tankers from Sovcomflot JSC for delivery throughout 2018 and 2019. Being built to be LNG fuelled and Ice Class 1A, the vessels will be delivered from HHI’s Samho facilities and it is understood that Sovcomflot have options for additional units. From Japan, there has been an order placed for two firm 36,000 DWT IMO 2 SUS Tankers by unknown owner against a long time charter to Odfjell. The duo are scheduled for delivery in 4Q 2019 and 2Q 2020, respectively. Dae Sun have received an order for a single 3,500 DWT IMO 2 SUS Tanker from Shokuyu Tanker in Japan for delivery within 2018.
In other sectors, Spliethoffs Bevrachtingskantoor BV in the Netherlands have announced an order for six firm 18,000 DWT Ice Class MPP/Heavy Lift vessels at Zhejiang Ouhua Shipbuilding. The vessels will have container capacity of 1,000 TEU each and will deliver within 2019. Finally, Triyards in Vietnam have signed a contract for one 3,000 GT Passenger/Car Catamaran Vessel which can carry 430 passengers and 98 cars with Pentland Ferries (Scotland) and another contract for one 300 GT Passenger Catamaran Vessel which can accommodate 418 passengers with an unknown Asian owner. Both vessels will be delivered within 1H 2018”, Clarkson Platou Hellas concluded.
Meanwhile, in the S&P market, things are still mainly focused on the dry bulk market, where demand for bulkers is strong. In its latest weekly analysis, ship valuations’ expert, VesselsValue, noted that values across all bulker types and ages have firmed. “Capesize values have firmed significantly this week. The Hanjin Esperance (179,100 DWT, 2012, HHI) was sold to JP Morgan Global Maritime for USD 29.5 mil vs VV value day of sale of USD 27.2 mil. The Hanjin Rizhao (179,200 DWT, 2010, Hyundai Samho Heavy Ind) and Hanjin Dangjin (179,300 DWT, 2010, Hyundai Samho Heavy Ind) sold en bloc to Korea Line Corp for USD 26.5 each vs VV values day of sale USD 23.5 mil respectively. Modern Panamax values have also firmed significantly. The Hanjin Port Kamsar (82,200 DWT, 2012, Tsuneishi Zosen) and Hanjin Hadong (82200 DWT, 2012, Tadotsu Tsuneishi) sold en bloc for USD 21 mil each vs VV value of USD 19 million”, said VesselsValue.
In a similar note, Allied Shipbroking said that “on the dry bulk side, after a temporary pause having been see in the market the week prior, things seemed to have been set alight, with the mass activity being characterized by strong price increases. It seems as though further price increases will be quick to follow, while buyers’ sentiment has taken a bit of an “avalanche” effect. Sellers have now been more willing to act, though we could see another pause in activity as sellers delay decisions in hope of pushing for slightly better levels as the balance in the market starts to shift further onto their side. On the tanker side, things were slight more active, though nothing to write home about. Here we are still seeing a completely opposite picture of what we have been seeing in the dry bulk market, with sellers backing out of the market due to prices being too “soft” for their taste”, the shipbroker concluded.
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Source: Clarksons Shipping, Allied Shipbroking
