In Hellenic Shipping News 06/05/2015
With banks more and more reluctant to finance dry bulk newbuildings, in the back of the market’s worst rout in decades and ship owners finding it hard to justify such moves, which would eat through cash liquidity, it is only natural that prices offered from shipyards have started to retreat. Newbuilding ordering activity remains lukewarm at best, note shipbrokers, which in turn leaves yards with a great desire to fill out empty berths, even if this means heftier discounts.
According to the latest weekly report from shipbroker Allied Shipbroking, “prices offered for Dry Bulkers seem as though they are having a tough time keeping up with the discounts offered by secondhand tonnage, as they are still finding it difficult to entice interest from buyers despite rumors of lower price ideas on offer. In general though, difficulties seem to be more widespread for shipbuilders, as with the exception of a few ma-jor deals struck which were backed by lucrative long-term TC con-tracts, there is little else of interest going on in all sectors. For many of the major shipbuilding groups, things haven’t become dire just yet as their current orderbook still provides a fairly good buffer. However as things move forward something has to give. One of the most notable deals that came out early last week was that made by Seaspan for five Super Post Panamax (11,000teu) container-ships at HHI’s Philippines facility for a price of US$ 93.5m each includ-ing a 17 year TC with purchase obligation, while they also placed at around the same time, two 10,000teu units at Chinese yards (one at Jiangsu Xinfu and one at Jiangsu New Yangzi), at a price of US$ 93.0m each”, said Allied Shipbroking.
Meanwhile, in a separate report this week, Clarkson Hellas said that there was “one newbuilding order to report in the Tanker market this week, with D’Amico announcing an order at Hyundai Vinashin for two firm 75,000 DWT LR1 product tankers for delivery in 2Q and 3Q 2017. D’Amico currently have four 50,000 DWT MR product tankers and four 39,000 DWT Handysize tankers on order at Hyundai Vinashin, and have already taken delivery of two 50,000 DWT MR product tankers last year”.
It added that “in dry, Tsuneishi Cebu are reported to have taken an order from a yet to be confirmed Japanese owner for six firm 38,300 DWT Handysize bulk carriers. This new set of vessels are scheduled to deliver within 2017 and will be logs fitted. Looking at the container market, Seaspan have extended their order at Jiangsu New YZJ by declaring two further optional 10,000 TEU container carriers for delivery within 1H 2017. This takes the owner’s total orderbook at the yard to 12 vessels, with the latest two additions due to deliver in 2017.
It came to light this week that Zhongfu Shipping have declared an option for two 2,100 CEU PCTCs at Xiamen Shipbuilding. Being the 2nd and 3rd rvessel in the series, this duo will deliver in 2016 and 2017 respectively. In other sectors, Jindal Steel & Power are reported to have ordered ten firm 8,000 DWT Mini Bulkers at Western Marine for delivery in 2017 and 2018 from Bangladesh. Russian shipyard Vyborg are reported to have signed a contract with Atomflot FSUE for one firm 3,000 GT Icebreaker which is set to deliver in 4Q 2018″, Clarkson Hellas concluded.
In second hand sales, Allied Shipbroking noted that “activity continues to gain ground, with a lot of interest gathering around fairly modern and resale Capesize units this week. In general though there are still a number of deals that seem to be finding it difficult to cope with the new price reality being made every day and although price drops have slowed compared to what was being witnessed in the first quarter of the year, there still seems to be room for further discounts to be seen”.
On the tanker side, the shipbroker added that “we finally started to see some activity emerge in the larger crude oil carriers, with prices starting to reflect a slow firming trend which could follow further if buying interest starts to mount. The reality is that there are few sellers right now in the market for these type of units and even they are not keen by any measure, given that the freight market is still “burning hot”, Allied concluded.
