Tankers and Bulkers in Demand in the Newbuilding Market


Newbuilding ordering activity remains in high ground, especially when compared to the same period of 2016. In its latest weekly report, shipbroker Allied Shipbroking noted that “we continue to see a fair flow of activity emerging once more this week, with a number of dry bulk and tanker contracts coming to light this week. Overall interest seems to have slightly eased however now something that may well lead to a drop in new ordering activity over the rest of the summer period. This will be primarily driven by the performance of the dry bulk freight market, given that the biggest increase in interest this year has been primarily triggered by the vastly improved sentiment noted in this sector in the first quarter of the year. On a further note it seems as though prices will also continue to increase further given that most shipbuilders find the current levels unsustainable for their operations, while at the same time the increases seen in the secondhand market have provided shipbuilders further room to push for better levels and balance their cash flows once more”.

In the S&P market, VesselsValue said that tanker values have remained stable this week. According to VV, “activity remained slow in the VLCC fleet this week, however, 2 Suezmax resale vessels the Dong A Capella & Dong A Spica (157,500 DWT, Jun/Jul 2017, New Times Shipbuilding) were sold en bloc for USD 102 mil. Two MR2 tankers Orient Emerald & Orient Ruby (50,400 DWT, May/Aug 2005, SLS) sold en bloc for USD 21 mil to Avin International. The MR1 Maersk Rapier (35,000 DWT, Jan 2000, CSSC OME) sold for USD 6.5 mil vs VV USD 6.13 mil keeping values stable”, it noted.

Similarly, bulker values also remained stable. The ship valuations expert said that “the Capesize Golden Opus (180,700 DWT, Apr 2010, STX Offshore) sold for USD 28.85 mil vs VV USD 27.57 mil. The Ocean Phoenix I (82,500 DWT, Nov 2007, Tadotsu Tsuneishi) sold for USD 13.5 mil vs VV USD 13.91 mil keeping Panamax values stable. The Supramax Precious Wind (52,600 DWT, May 2001, Shin Kurushima Ujina) sold for USD 6.6 mil vs VV USD 6.29 mil keeping values stable. The Handymax Astra (48,800 DWT, Jan 2004, IHI) sold for USD 8 mil vs VV USD 7.86 million”, it concluded.

In a separate note, Allied Shipbroking added that “on the dry bulk side, activity has continued to remain relatively slow again this week, though slightly better then what we were seeing some weeks back. With the slowdown in buying interest and the much lower freight rate levels that have now been reached, prices have also shown some slight downward correction. This is especially true in the modern Panamax and Supramax sizes which were the size and age groups that had noted some of the biggest increases since the start of the year. On the tanker side, we are still seeing a fair amount of revival in terms of activity, though this latest week the focus was primarily on the product tanker ranges with a fair number of MRs changing hands. Prices have yet to shift as the uncertainty still overshadows the market and it seems as though buyers are not willing to make any highly speculative moves just yet in order to prop up secondhand values”, Allied concluded.

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Source: Allied Shipbroking


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