Almost 100 new tankers are expected to be delivered from shipyards over the second half of the year and overcapacity will continue to be the dominant force in the market.
Around 40 more VLCCs, 25 more suezmaxes, and 30 more aframaxes are scheduled to be delivered by December, on top of the 80 already delivered in the first five months of the year, according to Icap Shipping in its tanker market mid-year assessment.
However, strong rises in oil demand are expected in the second half of the year to ease this oversupply, so long as sovereign debt issues, counter-inflationary measures or other economic problems do not derail economic growth, said Icap.
Saudi Arabia, UAE and Kuwait may be willing to provide additional volumes.
Underscoring this demand rise, the International Energy Agency has predicted an increase in global demand of 1.94m barrels per day in the third quarter from the second quarter, and a further rise of 250,000 bpd in the fourth quarter.
Some $12.5bn has been invested in containership newbuilding orders so far this year, around 49% more than was invested in the whole of 2010, according to Clarksons Research Services.
It estimates that if current trends persist, total investment in new containerships for the full year may exceed 2008 levels by around one-third.
Clarksons estimates that some 116 ships of a combined 859,690 teu were ordered in the first five months of the year.
That includes 23 vessels of a combined 183,000 teu contracted in May, mostly for larger vessels of over 8,000 teu.
It adds that one notable difference from previous years is that current orders are mostly for larger vessels.
It notes that ships of 8,000 teu and over make up 74% of the boxship capacity ordered this year, as compared with just 43% in 2008.
Overcapacity and rising fuel costs in container shipping have driven confidence levels in the industry downwards for the fourth successive quarter to its lowest point in two years.
Accountant and shipping advisor Moore Stephens found that the most dominant theme running throughout the responses to its latest survey was the threat of overcapacity, followed by concern over continuing increases in the cost of fuel.
Last month, the average confidence level (on a scale of 1-10) expressed by respondents was 5.6, compared with 5.8 recorded in February. This is the lowest figure recorded since May 2009, when confidence stood at 5.5.
Moore Stephens found the mood among respondents noticeably downbeat.
“The key word for most companies right now is ‘survival’,” noted one respondent.
And several expected the current slump in confidence to persist for some time.
“The shipping market will be severely depressed for the next three years,” said one, with another predicting markets would not pick up “for the next two years”.
Neither could respondents see any realistic prospect of spending their way out of the current downturn.
However, not all respondents took such a pessimistic view. One believed all maritime sectors would start to pick up in the last quarter of 2011.
But for most the outlook appeared gloomy, with particular concern over overcapacity. One respondent said: “The severe oversupply of tonnage in every sector is biting hard, and supply will remain ahead of demand for at least a couple of years.”
Moore Stephens’ Shipping Partner, Richard Greiner, said: “It is disappointing to find that confidence in the shipping sector has dropped to a two-year low.
“Once again, it was the threat to profitability posed by overcapacity which most frequently exercised the minds of those who responded to the survey.
“Only time will tell how this will play out, but it was noticeable that a number of respondents referred to the important role that ship-breaking could play over the next couple of years.”
He said this was an extreme solution to the problem, and added: “It will never address the true volume of tonnage overhang, especially since demolition prices in Asia appear to be on the slide, to the disappointment of owners hoping to cash in on healthy prices for their old ships.”
GDSA WEEKLY SECONDHAND / DEMOLITION / NEW BUILDING MARKET ANALYSIS
The week ended with some mixed feeling as the secondhand market tries to keep its pace with dry investors waiting further correction in secondhand asset prices. Tankers are still on the spotlight with with smaller size units being more popular. The secondhand ship purchasing activity is standing 68% down the newbuilding volume of transactions. The ordering interest in the main segments, bulk carriers and tankers, seems to follow a slow pace of volume, but gas tankers and containers are still grasping investors’ appetite with positive future prospects on the demand side In the container market, the sliding freight market has put a break on the secondhand ship purchase plans of the players, but the newbuilding market remains unaffected.
Overall, the week ended with 25 transactions reported in the secondhand and demolition market, while the highest activity has been recorded in the newbuilding market with 54 fresh orders reported worldwide.
In the secondhand market, 16 vessels reported to have changed hands this week at a total invested capital in the region of US$122.9 million, 5 transactions reported with undisclosed sale price. In terms of the reported number of transactions, the S&P activity is standing at similar levels of last week, while is down by 33% comparable with previous year’s weekly S&P activity when 24vessels induced buyers’ interest with bulk carriers grasping 50% share of the total volume of S&P activity. In terms of invested capital, bulk carriers have attracted almost 79% of the total invested capital with handysize vintage units still being on the frontline.
In the newbuilding market, eventhough a retreat mode of business has been set the last two weeks, a bursting of activity has been revealed again with container business dominating in the scene, grasping 46% of the total volume of newbuilding business. A significant increase of ordering activity has been witnessed also in the bulk carrier segment, 100% week-on-week positive change. Overall, the week closed with 54 new orders reported worldwide, up by 145% from previous week’s activity and up by 40% from similar week closing in 2010 when 40 new orders had reported worldwide with tankers grasping 55% of newbuilding business. In terms of invested capital, the container market appears the most overweight segment due to massive postpanamax units ordered of 18,000 TEU by Danish liner operator Maersk, grasping 52% of this week’s total invested capital.
In the bulk carrier market, one contract emerged this week in the panamax segment for four units by Ocean Agencies, UK placed in China’s yard Dayang at $32,5 mil each for delivery in 2012 and in the handysize segment for two 36,000 dwt bulkers placed in Samjin Shipbuilding Industries of China by undisclosed contractor . Furthermore, Chinese player Shenzhen Ocean Shipping is expanding its coastal fleet by placing four units of 65,000 dwt and four of 50,000 dwt in two Chinese yards under the control of state owned China State Shipbuilding for delivery in 2013.
In the tanker market, some activity has been recorded this week in the crude segment by Knutsen NYK Offshore Tankers for a third shuttle tanker of 129,000 dwt at Hyundai for delivery in October 2013.
In the gas market, Greek shipowner Thenamaris is in talks with Korea’s Samsung Heavy Industries for the construction of two LNG units, but further details of the contract have not yet revealed. Furthermore, the gas shipping arm of Angelicoussis is said to have renewed its order placed on May with Daewoo Shipbuilding and Marine Engineering for two more units of 159,000cbm at a cost of excess $400 mil for delivery in 2014. Options for further two similar ships have been arranged as a part of the contract.
In the container market, the financial shipping arm of Hyundai, HI Investment & Securities has booked three 4,500 TEU postpanamax units for delivery in 2013. HI Investments is said to have already raised $131million to fund the first two vessels. In the post-panamax segment, MITSUI OSK Lines of Japan is said to have ordered two post panamax units of 8,600 TEU in compatriot shipyard Mitsubishi for delivery in 2013 to serve the Asia – Europe trade route. Moreover, Maersk Line exercised its option with Korea’s Daewoo Shipbuilding and Marine Engineering to build an additional 10 triple-E ships, originally order placed on February for another 10 similar units, for delivery in 2014-2015. Maersk line CEO Eiving Kolding said that the ships underline company’s strong commitment to the Asia-Europe trade and fit well with their current ambitions for the future development and trade. The vessels are called the “Triple-E” class for the three main purposes behind this creation – economy of scale, energy efficiency and environmentally improved- the ships will set a new industry benchmark for size and fuel efficiency. The option that the company has for another 10 more units may not be exercised. However, the Danish owner is said to be in discussions for another 10 boxship units of 10,000 TEU for deployment on the fast growing South American trades. Players suggest that the price of the 10,000 TEU units will not exceed the cost of $100 mil each.
In the sub-panamax boxship segment, Middle Eastern energy company Abu Dhabi National Oil Co (Adnoc) is said to have inked a letter of intent to construct 15 units of 2,600 TEU for delivery in 2013 & 2014 in South Korea’s STX Offshore and Shipbuilding at a cost of up to $600 mil.
In the passenger / cruise sector, market sources reveal that South Korea is poised to seal its first cruise ship contract of region $1 bn deal for Utopia Residences of the U.S. The shipbuilding nation was trying for more than a decade to secure a cruise ship contract and some believe that this deal will open the door for more similar contracts in the future.
In the offshore segment, players are placing every week new orders. Following the high valued orders by Dryships for another drillship and Seatankers Management for platform supply vessels, this week Havila Shipping of Norway has placed an order for a platform supply vessel in its own shipyard at Leirvik at $64 mil and Keppel FELS of Singapore has clinched a deal with Norway’s Standard Drilling for four jack up drilling rigs at $193 mil each.
In the demolition market, the monsoon period in India seems that has put a downward pressure in scrap rates, while there is a general feeling that levels may drop even further as the situation in Bangladesh is still unclear and owners do not appear very confident to commit their vessels under such environment. There are fears that a possible foreclosure of Bangladesh on the beginning of July will bring a large volume of scrap tonnage in the shipyards of Alang, pushing prices downwards. Since the end of April, scrap prices have lowered by $15/ldt-$30/ldt for dry and $20/ldt-$30/ldt for wet cargo with India and Bangladesh offering now $480-$495/ldt for dry and $510-$520/ldt for wet cargo. Pakistan managed to win one more unit this week on the dry market, a panamax unit of 12,067 lightweight for quite firm price at $495/ldt. On the other hand, the activity in China’s Shiprecycling industry has been muted again with prices falling below $460/ldt despite expectations for a firming of the market within the monsoon period.
The week ended at a significantly slower pace of activity with only 9 vessels reported to have been headed to the scrap yards of total deadweight 497,674 tons. In terms of the reported number of transactions, the demolition activity has been marked with a 47% week-on-week decline and in terms of the total deadweight sent for scrap there has been a 30% decrease. Bulk carriers for one week more won the lion share of scrapping business with two capesizes heading to the scrap yards. In terms of scrap rates, the highest scrap rate has been achieved this week in the liner segment by India for M/V “BM Challenge” 17,422dwt OF 6,555 ldt at $505/ldt, while in the wet market India has paid the firm price of $515ldt for M/T “IRAN RAJAI” of 39,339dwt of 9,974 ldt. At similar week in 2010, demolition activity was up by 68% than the current levels, in terms of the reported number of transactions, 22 vessels had been reported for scrap of total deadweight 683 mil tons with tankers holding 45% of the total scrapping business and India offering the highest levels $375/ldt for dry and $400/ldt for wet cargo.
Greek players seem to have strengthened their position in the LNG segment with some activity coming to the light by the Greek owner Thenamaris and the gas shipping arm of Angelicoussis, while in the secondhand market they have purchased two small size units at a total invested capital of $14,4 mil.
Shipowners are scrapping capesize vessels at a record pace after rates plunged about 50 percent in a year. It’s still not enough to end losses.Forty-eight capesizes, usually used for hauling iron ore or coal, have been demolished this year through June 24, compared with 18 in the whole of last year, according to shipbroker Clarkson Plc. Rates will remain below about $11,000 a day for the rest of the year, compared with a breakeven point of about $23,000, according to Johnson Leung, head of regional transport at Jefferies Group Inc. in Hong Kong.
The surge in scrapping has failed to revive capesize rates because 117 new vessels have been launched this year as yards work through orders placed in anticipation of a surge in iron ore and coal shipments to China. Instead, China is paring commodity imports to help cool growth, while Vale SA, the world’s largest iron-ore miner, is adding vessels larger than capesizes to cut its reliance on the charter market.
“The capesize sector is just a nightmare for shipowners,” said Shin Ji Yoon, an analyst at KTB Investment & Securities Co. in Seoul. “Lines went on a buying frenzy and business just hasn’t panned out as they hoped.”
The capesize fleet may rise to about 1,300 by year-end from 1,218 as of May, according to Osuke Itazaki, an analyst at SMBC Nikko Securities Inc. in Tokyo. That follows a net increase of 195 vessels in 2010 and 103 a year earlier, he said. Capesizes carry about 170,000 tons of cargo on average.
The growing supply of ships has pushed capesize rates to about $6,405 a day on the spot market compared with an average of $30,587 for the whole of last year, according to London-based Clarkson, the world’s biggest shipbroker. Its Baltic Capesize 4TC Index was at 12,898 yesterday compared with 24,237 a year earlier.
Forward-freight agreements, traded by brokers and used to bet on or hedge future transportation costs, anticipate rates no higher than $18,230 a day through 2016, Baltic Exchange data show.
“The bulk market will probably be bearish for as long as five years because of the overcapacity issue,” said Um Kyung A, an analyst at Shinyoung Securities Co. in Seoul. “Shipping lines have been quite reckless in ordering new vessels in the last three years.”
Jefferies Group’s Leung said he expects about 80 capesizes to be scrapped this year. Shipbroker Lorentzen & Stemoco AS predicted as many as 100 earlier this month. That compares with a record 25 in 1998, according to Clarkson data.
Mitsui, Grand China
As of June 1, 570 new capesizes were on order, according to the shipbroker. The vessels accounted for 45 percent of the 249.3 million tons of bulk ships on order. Mitsui O.S.K. Lines Ltd. had the biggest backlog with 30, followed by 22 for Grand China Logistics, according to Clarkson.
Mitsui expects daily rates for capesizes to average $15,000 in the six months ended September and $25,000 in the following six months, according to a statement last month. The Tokyo-based shipping line had 109 capesizes as of March.
The company has no intentions of changing its fleet plans, said Kazumi Nakamura, a spokeswoman. Calls to Grand China, which is backed by the investment arm of China’s Hainan province, went unanswered yesterday.
Orders for dry-bulk vessels jumped from 2007 through the first half of 2009 alongside a surge in freight rates. The Baltic Dry Index, a benchmark for commodity-shipping costs, hit a record 11,793 in May 2008, after rising fourfold in two years.
The index has since tumbled 88 percent, partly because of a 22 percent increase in the size of the global bulk fleet in the past three years.
Demand has also slowed as China, the biggest customer for bulk-shipping lines, curtails commodity purchases from Brazil and Australia because of rising prices and concerns about its economy overheating. Imports of coal and iron ore rose 2.8 percent this year, compared with a 21 percent increase last year and a 30 percent jump in 2009.
“Overseas iron-ore prices are still very expensive,” Leung said. “That’s why domestic iron-ore production in China is picking up.”
Rio de Janeiro-based Vale has also hurt charter rates as it begins to take delivery of 19 Chinamax ships, which are almost as big as the Bank of America Tower in New York and can haul twice as much cargo as a capesize. The miner is adding the vessels as it seeks greater control over shipping costs, particularly on routes to China, its biggest customer.
“Vale wanting to do its own thing has certainly contributed to the plunge in the spot market for capesize ships,” Shinyoung’s Um said.
Alongside the decline in rates, rising metals prices are boosting the appeal of scrapping because shipowners can get higher prices. Some capsize owners were able to get as much as $10 million selling ships for scrap this year, an amount it would take three years to earn in the current charter market, according to Braemar Shipping Services Plc.
Shipowners have scrapped capesizes as new as 15 years old because of the rates plunge, compared with traditional ages of about 25 years or more, said Nitinbhai Kanakia, joint secretary of the Ship Recycling Industries Association, which represents shipbreakers in Alang, the western India city that’s home to the world’s largest scrapping industry. Seven capsizes are currently being taken apart on the city’s beaches, he said.
“Capesizes are sure to be a big proportion of business moving ahead,” said Kanakia. “Shipowners just don’t have sufficient cargoes.”
Ordering activity for new Very Large Crude Carriers has ground to a halt this year although newbuilding prices are very 'competitive'.
Industry sources say South Korean yards are offering a price tag of $105m for a new VLCC while Chinese offer less than $100m.
However, historic level of new VLCC deliveries along with long-running slump in the VLCC shipping market has prevented shipowners from putting pen to paper for building new VLCCs worldwide.
From the beginning of the year only three VLCC orders came to surface.
China's Jinhai Heavy Industry won an order for two VLCCs from Dubai-based Gulf Navigation while Shanghai Waigaoqiao Shipbuilding inked one with Greece's Thenamaris.
Rates for VLCC are hovering around $17,000 per day which is way below breakeven level of over $30,000.
Massive newbuilding deliveries are scheduled with 79 set for hand over in 2011, 59 in 2012, 40 in 2013 and 10 in 2014, according to Frontline data.
The absence of sufficient business to make the owners´ world go round is weighing heavily on the market and threatens to weaken the already waning resolve owners have left. The supply of VLCC tonnage in the MEG appears more than sufficient with about 50 MEG fixtures done for July and about 95 VLCCs still remaining for the next 30 days. It still remains to be seen how many cargoes will be fixed for July lifting. If what has happened previously in 2011 is any indication, however, it appears likely that we shall continue with somewhat less than 120 VLCC cargoes per month from the MEG, and this provides a bleak prognosis for owners´ fortunes. Suezmax rates remained flat in all areas during the last week, and there was little activity to report in an already low market. Aframax rates in the Nsea/Baltic remained essentially unchanged from recent levels whilst a further decline in Aframax activity in the Med and the Caribs occasioned a build-up of tonnage which forced rates downwards in both these areas.
In the West, after last week´s firming market, activity has slowed down and subsequently so have the rates. On the MR transatlantic fixtures, rates have declined, and are now at WS 170 for UKC/USAC basis 37kt. On the larger vessels, there is still a surplus of tonnage. Activity seems flat, and rates have moved sideways; LR1s trading Baltic/USAC are fixing at WS110 basis 60kt. On the smaller vessels rates have moved up slightly, with Handies trading across NWEurope fixing at WS160 basis 30kt, and Flexis at WS200 basis 22kt. Caribs and USG activity seems to have slowed down again, with upcoast voyages fixing at WS175 basis 38kt and backhaul voyages USG/ UKC-MED at WS110 basis 38kt. East of Suez; activity remain relatively firm, but with the tonnage availability on the LR1s, rates remain unchanged from last week. LR1s trading MEG/JPN are fixing at WS125 basis 55kt. For the LR2s activity has improved, and several vessels have disappeared from the position list. Subsequently, rates have improved and LR2 fixtures on the route MEG/JPN are being concluded at WS 120 basis 75kt. For LR1s fixing Jet fuel MEG/UKC, the market has softened slightly, and now fixing at USD2 million basis 65kt. MRs trading Spore/JPN are seeing rates around ws145 basis 30kt, whilst MRs trading MEG/JPN are seeing rates around ws145 basis 35kt.
The Atlantic seems over supplied with tonnage on prompt positions. The sentiment is nervous but it could be better balance for mid July positions onwards. EC South America also softening assisted by ballasters from Indian Ocean. West coast India remains inactive due to monsoon in India. There has been no change in India, good vessel in EC India may see around USD10k for an Indonesian round voyage and Richards Bay will see the same. Handymax/Supramax may see low/mid USD 20 for Red Sea/India business. In the Pacific large Supras are able to secure 10k for NoPac rounds with an underlying weaker tone for forward positions.
The Panamax market continued its downward pointing curve this week with rates knocking off ard USD 1,000 in both hemispheres. It seems the Pacific has dried up with cargoes as rates just keep on declining. Several ows are now ballasting towards the ECSA grain cargoes to secure employment for their ships. In the Atlantic owners are getting more and more reluctant to leave the basin and this puts pressure on the rates. The Tarv´s are now being fixed in the region of USD 15k while the Fhauls are fetching around USD22k. In the Pacific, rounds are being fixed at tick below USD 10k while the backhauls are getting a poor 5k level. The period market also took a dive this week with the MV CLARE 74,759 dwt/blt´05 being fixed with delivery Mizushima for 11/14 months at USD 12,750.
The Pacific market has continued to rise on the back of last week´s strength. Driven by vessels delays the majors had to scramble to cover early positions and driving the West Australia freight rate up from a conference level in the mid/upper USD 7.00´s to high USD 9.00. Since then it has pulled back a bit but still trading in the upper USD 8.00 level. The Atlantic has also proven to be robust with levels now north of USD 14k daily on timecharter, and tonnage is still in tight supply. There were a few period deals done in the upper USD 11k´s for short period, and around USD 11k for a one year deal. Presently the market seems stable at today´s improved levels.
The end of last week was eventful in the VLGC market, and despite jumpy crude prices a dozen sub fixtures was counted in the East, although not all were confirmed. Some claim that this increased activity was fuelled by several short positions made earlier this year that were due now. Rates reported ranged from the low USD 40´s to 45 and as a result the Baltic reached USD 44 yesterday, an increase of 1.75 USD since Wednesday last week. The start of this week has been very quiet indeed, mostly due to the waiting for and absorbing of the announcement of the July CP prices. The Far East Index is falling as well and chartering activity will most likely halt for the remainder of this week. The west of Suez market has been less active than the East, nonetheless a second vessel is rumoured to be repositioned for trading in the West. To summarize, talked and fixed freight rates improved quite a bit over the last week and there seems to be ample supply of fob cargoes in the MEG ahead. Vessels available to the sport market are at large in control of independent owners, therefore higher sport rates are expected into next month.
The major box operators continue to add more tonnage into the orderbook. This week, the total is 25 ships, all container carriers (10 of which are declared options). In addition to box activity, we still hear of numerous inquiries for LNG slots, however, most of the major yards are now quoting end 2014 deliveries and somewhat higher prices.
The ship demolition rate differential between the Indian subcontinent and China continued to narrow last week, against the background of yet another round of bulk carriers and reefers sold for scrap.
Dry vessels are now fetching well below $500 per ldt from buyers in India, Bangladesh and Pakistan, while rates for tankers are hovering at that benchmark.
The wide expectation is that rates will fall further in the short term, perhaps as low as $450 per ldt.
In China, meanwhile, prices have remained steady in the mid-$400s per ldt, sometimes higher depending on the ship.
“Whilst prices were never expected to dip below the $450 per ldt mark, they have still come off some $25 to $30 per tonne over the last couple of weeks and hits across the board have been felt for vessels being delivered post decline,” said US-based cash buyer GMS.
In a recent spurt of orders for ultra-large containerships (ULCS), Maersk has exercised its first option with South Korea’s Daewoo Shipbuilding & Marine Engineering to build an additional 10 Triple E-class 18,000teu vessels, the world’s largest.
Meanwhile, Neptune Orient Lines (NOL) today confirmed that it has signed contracts with the Daewoo and Hyundai Samho Heavy Industries for two 9,200teu and ten 14,000teu vessels, respectively, in a deal worth US$1.54 billion.
And MOL has announced an order for two 8,600teu containerships from Mitsubishi Heavy Industries, with delivery slated for 2013. Along with eight 8,100teu ships already in operation, the new vessels will be deployed on Asia-Europe routes.
The announcement from Maersk follows an order in February this year for 10 Triple E-class vessels with two options – each for an additional 10 ships.
The deadline for exercising the second option is 31 December, and Maersk said that at this point it did not intend to exercise it.
CEO Eivind Kolding said: “We now have 20 Triple-Es on order. They underline our strong commitment to the Asia-Europe trade and fit well with our current ambitions and expectations for the development of the trade.
“We believe the Triple-E ships with their record capacity and energy efficiency will enable us to deliver on the commercial and environmental expectations of our customers and also give us a significant competitive advantage in the market.”
Maersk expects demand on Asia to Europe to increase 5-8% a year during 2011-2015.
The first 10 vessels are scheduled for delivery between 2013 and 2014 and the second series of vessels will be delivered between 2014 and 2015.
Meanwhile, Singapore-based NOL, parent of shipping line APL, also announced that it had agreed to charter five of its newly ordered 14,000teu vessels to fellow New World Alliance member MOL after they are delivered in 2013 and 2014.
Every week more and more new building orders are being contracted for specialized vessels, especially in the container and offshore segments, in sharp contrast to what had been the norm in recent years, with dry bulk carriers and tankers leading the foray. According to the latest report from Clarksons, “following a short period of significant quietness, the container market, once again is dominating the headlines in terms of reported business. Not only have NOL finally signed up to their significant order at Samho, an order fiercely contested by not only the major Korean Yards but also those in China, it is China that have lead the headlines towards the end of the week. They have reaffirmed their position to be open for business and are now offering the same level of support to the German Owners as they have been so vocal in offering to the Greek market over recent times” said the world’s leading shipping researcher.
It went on to mention that “we have seen the State Chinese Bank, the China Development Bank flexing its muscles and offering a reported USD 1 Billion credit line to the Peter Döhle Schiffahrts KG, thus allowing them to put a letter of intent in place with the ever active Jiangsu New Yangzijiang Shipbuilding (JNY) for a long series of 10,000 TEU Vessels. This is a great show of strength by the Singaporean stock listed JNY making their presence even greater in the large container sector, following their potential USD 2.5 Billion order with Seaspan earlier in the month. It will be interesting to see over the coming months if the Chinese Yards are able to win more and more of the Korean Yards bread and butter business of larger container ships.
In terms of reported business; In Containers, Neptune Orient Lines (NOL) are reported to have ordered a series of 10 x 14,000TEU Container vessels which have been placed at Hyundai Samho. The vessels are preliminarily scheduled throughout 2013 & 2014 and are believed to be priced in the region of USD130 Mill per vessel. NOL are also reported to have signed an additional pair of 9,200TEU Vessels at DSME to be delivered in 2013. Sinotrans are reported to have signed a pair of 1,100TEU container ships at Qingshan Shipyard for deliveries in 4Q 2012, though understand these were in fact signed in April 2011. In addition, we also understand that TS Lines have ordered 4 x 1,800 TEU Vessels at CSBC due to deliver from End 2012 and throughout 2013, like the Sinotrans business though we understand this was signed back in April too.
Finally in Wet, Tankers Inc have signed a deal for 2 option 2 x 75,000dwt Product carriers at Dalian Shipbuilding (DSCI). The vessels are all due to be delivered within 2013 and believe pricing will be in the region of USD 45 Mill” concluded Clarksons.
In a similar report, Golden Destiny said that Hellenic investment plans have shown some strength this week in the newbuilding scene, with some market players focusing their interest on more specialized segments. “Greek owner Karlog Shipping Co. has placed an order in the bulk carrier segment for a handysize unit of 35,000 dwt in Chinese yard, Nanjing Dongzhe, for delivery in May 2012 at an undisclosed contact price. In the offshore segment, George Economou’s Ocean Rig is said that is going to expand its drillship newbuilding tally by taking up an option at Samsung Heavy Industries at an estimated price KRW 635bn ($604mil) for delivery in the fourth quarter of 2013. It is worth mentioning, that Greek players have started to reconsider their interest in the LNG segment and some newbuilding activity has seen some time ago by Angelicoussis gas shipping arm Maran Gas Maritime and Dynagas of George Procopiou” said the shipbroker.
In terms of worldwide deals, Golden Destiny mentioned that in the bulk carrier segment, some deals emerged this week with dry units grasping this week’s lion’s share, 32% of the overall contracting activity. In the tanker segment, the MR size seems to have won recently some of investor’s interest and there are some expectations that the high levels of demand for oil and oil products from energy-hungry emerging companies may bring in the future more volume of tanker newbuilding business. Overall, the week closed at similar week’s levels with 22 units reported worldwide, down by 60% from last year’s weekly activity when 55 new orders had reported worldwide with bulk carriers grasping 75% of newbuilding business. In terms of invested capital, it is difficult to estimate this week’s value of investments and which sector is the most overweight, since 50% of the total volume of newbuilding transactions are reported at an undisclosed contract price” said the shipbroker.