Shipbroking Market Idled in October

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Newbuilding orders stay still in the market.

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Allied Shipbroking, in its weekly report stated that the new shipbuilding orders were stagnant for the month in comparison to the last.

The newbuilding market trends:  

Prospective buyers are looking to gain by waiting longer for prices to lower down further.  It is noted that prices for larger crude oil tankers, especially for Suezmaxes, have dipped further, as they almost match those of 5-year-old second-hands.

Hyundai Mipo secured 2 more new shipbuilding orders and is now placed at the top in the newbuilding market.  Their focus on MR sector has helped them secure orders.

According to another report by the Clarksons Platou shipbroking, it was a quiet week with only a few orders in the newbuilding market.  In Tankers, Nippon Yusen Kaisha (NYK Line) secured two orders for 52,000 DWT IMO-II MR Tankers at Hyundai Mipo Dockyard for delivery in 2017.

Lundqvist Rederierna has given an extended order to Sumitomo for one 105,000 DWT Aframax.  This single unit will deliver by the end of 2018 from Yokosuka.  This vessel will  be their 4th in the series.

Fast Passenger / Car Catamaran: 

Incat Tasmania secured an order for one 10,500 GT car carrier.  This ferry can accommodate up to 1000 passengers and also carry 417 cars. It is due for delivery during the beginning of 2017.

Naikai Zosen Setoda have secured an order to build two 3,900 CEU PCTC for Toyofuji Shipping.  These are due for delivery by 2018.

Market for second-hand vessels: 

The markets are flooded with several modern units for the second sale by troubled owners.  Such sale could prove to create a negative influence on pricing, given that the freight market has just begun an upward trend.

Product tankers are more in demand than any other seconds. Two Chinese built modern Aframaxes were sold for US$ 80.0m and a fairly old Japanese built Aframax was recently sold for US$ 10.0m. The oil tankers in terms of value are still moving with a downward trend.

The demolition market front: 

A report from, Allied Shipbroking: The newly formed “cartel” in India seems to have created a significant negative change, resulting in buyers getting “cold feet”. The competitive mood that the market saw these past five years appears to have subdued. This situation may be due to the outcome of several buyers being in financial crisis owing to their previous purchases. The other reason is the low steel prices and the supply glut in the market brought about by the dumping of cheap Chinese steel

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