In Hellenic Shipping News 18/03/2015
Ship owners keen to capitalize on deeping discounts from shipbuilders, but also to book a spot in the tanker market’s upward cycle, have started to make ways in the global market over the course of the past few days. In its latest weekly report, shipbroker Allied Shipbroking noted that “with commodity prices still on the downward slide and the U.S. Dollar gaining in strength, it seemed to be the right opportunity for ship-builders to offer some further discounts, as they try to gain some traction amongst potential buyers”.
However, the shipbroker also noted that “activity continues to remain relatively subdued while there is little optimism to push for further new ordering now. Yet, amongst the limited orders being placed we did have some speculative ordering this week, with Japanese investment house Orix in the process of completing a very large order for around 21 high spec handysize bulkers and nearly tripling its current fleet in the process. While this might not be indicative of the overall market conditions, it is a likely pattern that we will continue to see, as some try to take advantage of the seemingly low prices on offer now. What is more likely to continue however is the ordering spree that has been noted in the crude oil carrier segments, as the bullish sentiment con-tinues to feed through to potential investors and while secondhand asset prices are not what you would say uncompetitive, the lack of available candidates is something that will continue to push most onto the new ordering path”, Allied Shipbroking said.
Meanwhile, in a separate report, shipbroker Clarkson Hellas said that “the tanker market has seen a number of orders this week. Clients of Arcadia Shipmanagement have extended their order at Hyundai Heavy Industries (HHI) to six vessels by contracting two firm 159,000 DWT Suezmax tankers for delivery in 2016. HHI have also taken an order from Clients of Thenamaris for a single 159,000 DWT Suezmax tanker which will be delivered within 2016. Although the original contracts were signed last year, it came to light this week that New Times Shipbuilding have received an order for four firm 160,000 DWT Suezmax from Clients of Dynacom Tankers Management. This new set of units are scheduled to deliver from 2017 onwards. Clients of Thenamaris are reported to have also declared an option to build two 115,000 DWT LR2 tankers at Sungdong for delivery in 2016, which will extend their series at the Korean shipyard to six vessels. Clients of Transpetrol Services have announced an order at HHI for two firm 115,000 DWT Crude Aframax for delivery in 4Q 2016. It also came to light this week that Wah Kwong Shipping Agency have contracted a duo of 112,000 DWT Aframax Tankers at Sumitomo Heavy Industries. Although pricing was not disclosed these units are understood be delivering throughout 2017 and 2018 from Sumitomo’s Yokosuka yard”, said the shipbroker.
It added that “in Dry, only one order to report this week, with it coming to light that Navigation Maritime Bulgare (Navibulgar) have extended their series at Nantong Hongqiang Marine Heavy Industry to six vessels, by declaring their two optional 42,300 DWT bulk carriers for delivery within 2016. Finally in other sectors, JT Cement AS are reported to have declared an option for one 7,200 DWT Cement Carrier at the Dutch shipyard Ferus Smit. This will be the second unit in the series at Ferus Smit’s Westerbroek yard and will be delivered in 2016″, it concluded.
Meanwhile, in terms of demolition activity this week, Allied Shipbroking noted that “despite the continual strengthening of the U.S. Dollar this week, there was little to reflect this in terms of offered prices by breakers. The previous week’s levels seemed to still be holding for the time being, but as all is now we may well be set for a further reduction during the coming days, especially in the case were the exchange rate move-ments favor ever lower levels. Demand is still there and is fairly well balanced by the number of demo candidates seen in the market so far, even though we have seen the number of dry bulkers being beached reach levels well beyond what has been seen over the past couple of years, and with such momentum being seen many are hoping that we will see similar levels to those seen in the previous boon (2012) where we reached a total of 576 dry bulkers being removed from the market equal to approximately 34 million dwt. This would be a welcome out-come, yet how easily would this outcome be viable under a pricing policy well bellow the average of what has been seen during the past five years. With many estimating a sharp drop in the price of scrap during the remainder of the year, as expected, it will be the freight market which will be primarily dictating the volume of activity noted during the remaining 9 months of 2015″, it concluded.
