Sinotrans&CSC Jinling Shipyard under China's state-owned enterprise Sinotrans&CSC Holdings Co., Ltd. launched a 49,500dwt bulk carrier being built for compatriot shipowner Ningbo Marine Company Limited on May 26, according to the yard's website.
The newbuilding is the first one of a series of three the shipowner contracted the yard to construct.
The vessel measures 199.99m in length overall, 32.26m in breadth moulded, and 16.40m in depth moulded. It is being built in accordance with the standards required by CCS.
The bulker is expected to be delivered this October.
Tokyo-based Kawasaki Kisen Kaisha, Ltd. (K Line) has expanded its coal carrier fleet with the latest addition of an 88,000 dwt-type special coal carrier Corona Victory on May 24.
Featuring a length of 230 meters and a width of 38 meters, Corona Victory was handed over at the Japanese Marugame Shipyard, a part of Imabari Shipbuilding Co., Ltd.
At 49,721 gross tons, the vessel belongs to the company's Corona-series fleet for transport of thermal coal.
The Corona-series, which now consists of 19 carriers, is equipped with wide beam and shallow draft.
In April, K Line said that it closed the fiscal year in the red with JPY51.1bn (US$457m) net loss, while the company's operating revenues for the period were at JPY1.2tn, as a result of severe market conditions.
What's more, K Line's operating income was at JPY9.427bn, down 80.4% year-on-year.
The company said that the losses were also attributed to business structural reform aimed at reducing the risk of exposure to market conditions and further accelerating the reduction of fleet scale, focused on small- and medium-size vessels, in the dry bulk business.
Shipyards in Europe received in the first quarter of 2016 more orders than their competitors in Asia, German Shipbuilders and Ocean Industries Association Verband für Schiffbau und Meerestechnik (VSM) reports.
Namely, out of US$6.5bn worth orders on a global scale placed in the first quarter of this year, European shipyards won orders worth US$3.7bn, more than 50 percent, with the majority orders booked by the cruise ship construction sector in Europe.
Yards in Germany have experienced a major boost, with Meyer Werft winning an order from Saga Cruises and Disney Cruise Line for up to four ships in total. Italian shipbuilding major Fincantieri also kept itself busy working on deliveries of four new ships to Carnival and receiving orders for four new cruise ships, to be built for Costa Asia for deployment in China, and one for P&O Cruises Australia and Princess Cruises respectively. In addition, at the end of March, Norwegian Cruise Line Holdings placed an order to construct a sister ship to Seven Seas Explorer for its Regent Seven Seas Cruises with Fincantieri.
The ordering streak continues into the second quarter as well. Earlier this month, Malaysian Genting Group ordered ten cruise ships from three German shipyards – Wismar, Warnemünde und Stralsund. The contracts' value amounts to EUR3.5bn (US$3.93bn).
According to Reinhard Lüken, VSM's CEO, this is the first time the turnaround in newbuilding orders has happened in a long time.
The situation in the shipbuilding market has drastically changed when compared to 2015. Specifically, South Korea, the world's top shipbuilding nation won 30 percent of US$80bn worth newbuilding orders in the previous year. However, the slowdown in the global maritime industry has prompted owners to abstain from new orders as they work to cut costs. As a result, in the first quarter of 2016, Korea won only six percent of total orders.
The nation's Big Three shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy Industries have booked losses of up to US$6.7bn.
Due to the heavy losses, the three yards have launched massive restructuring programs which include layoffs and asset sale aimed at bolstering their liquidity as they struggle to secure more orders.
Navig8 Product Tankers Inc has received the Navig8 Grace, a 113,000dwt LR2 tanker from China-based CSSC Offshore & Marine Engineering Company Limited, formerly known as Guangzhou Shipyard International Company.
The Navig8 Grace is the first of eight vessels contracted at CSSC Offshore to be delivered to the company and is the first vessel to be delivered under the sale and leaseback agreements entered into with CSCC (Hong Kong) Shipping Company Limited (CSSC) announced on June 25, 2015.
Following delivery from CSSC Offshore, the Navig8 Grace was delivered to CSSC under the terms of the Sale MOA and then delivered back to the company under bareboat charter.
The Navig8 Grace will be entered into and operated in Navig8 Group's Alpha8 commercial pool.
Thus far the company has taken delivery of eight LR1 and seven LR2 product tanker newbuildings and anticipates that its entire newbuilding fleet will be delivered by the end of 2016.
Navig8 Product Tankers, established in 2013 as a joint venture between the Navig8 Group and DVB Bank, maintains an orderbook of long-range (LR), eco-design product tankers, comprising 15 LR2 and 12 LR1 vessels. The company's fleet is contracted to operate in various product tanker pools managed by the Navig8 Group.
The vessels of the SX157 design are a part of the ALP Future class. Service speed is 13 knots, while their top speed is 19 knots. With a fuel capacity of more than 3,500t, they can tow at full power for 45 days, sufficient for non-stop Trans-Atlantic/Indian, Pacific Ocean towing operations without fuel calls. The vessels are constructed by Niigata Shipbuilding & Repair, Japan.
The vessels were developed especially for this project in close collaboration between ship designer Ulstein Design & Solutions AS and ship owner ALP Maritime Services, the latter a subsidiary of Teekay Offshore Partners L.P.
A vessel of this type typically tow oil rigs, or FPSOs, from the building yards to the installation site at the oil field. Additionally, these vessels are outfitted with DP2 and anchor handling capacity in order to assist during the installation/hook-up phase for the towed objects. The vessels are 88.9 metres long and 21 metres wide.
Chinese domestic container shipping firm Zhonggu Shipping has signed a shipbuilding contract with CSSC-affiliated Shanghai Shipyard for the construction of one 2,500teu container vessel.
The order is Shanghai Shipyard's first ship order in 2016.
Zhonggu Shipping ordered six 2,500teu containerships at Zhoushan Wuzhou Shipbuilding in 2013. However, the shipyard only delivered one of the vessels before it went bankrupt earlier this year. Last month, Zhonggu Shipping turned to Zhoushan Changhong International to order a single 2,500teu containership.
It is essential that new orders are placed within the next three to six months for the yard industry to fill up its orderbooks for 2017, according to Danish Ship Finance.
The orderbook is rapidly approaching the low levels seen at the start of 2013, but 2016 looks to be a reasonable year for shipbuilding based solely on the amount of scheduled orders for the year. However, the prospects for 2017 are not that promising, seeing that 45% of the current orderbook is scheduled to be delivered during the last three quarters of 2016.
As of April 2016, scheduled orders for 2017 are only capable of employing 69% of current active newbuilding capacity, the ship finance institute said in its market review for May 2016, adding that if it is assumed that the usual number of orders are either postponed or cancelled, global yard utilisation could fall below 50% in 2017.
If the orderbook for 2017 is not filled, China will be hit the worst, because 57% of the Chinese orderbook is scheduled to be delivered during the last three quarters of 2016. Orders for 2017 are currently only capable of employing around 52% of Chinese active yard capacity, the review finds.
Bulk, container and offshore orders currently constitute 51% of the total orderbook. Due to the current market conditions in these segments, more orders could continue to be postponed and the orderbook for 2017 could be "filled up" solely by postponed orders.
In 2015, 95% of the orders that were postponed for later delivery were pushed into 2016.
"Hence, in a scenario where we assume that the same percentage of orders will be postponed from 2016 to 2017, the orderbook for 2017 could actually increase by 17 million cgt to just above 50 million cgt. Moreover, if we adjust for the new orders that will most likely be placed during 2016 for delivery in 2017, scheduled orders for delivery in 2017 could end up at a similar level as in 2015 and 2016, which would support yard utilisation," said the institute.
However, the problem is that if the orderbook is filled up with postponed orders, the shipyards do not receive any new capital or liquidity, as final payments are solely delayed. Therefore, there is a reasonable risk that orders will continue to be postponed, and consequently the already financially troubled yards will remain under pressure, the institute adds.
"Currently, there are around 340 yards that have less than one year of order cover. After having entered into the second quarter of 2016, three-quarters of these yards have already emptied their orderbooks and we expect them to close in 2016," DSF says.
By the end of 2016, Danish Ship Finance expects that the number of active yards could drop to around 530 – and that is only counting those that are currently running out of orders.
Based on the institute's estimates, around ten first-tier yards will close down in 2016 and 190 second-tier yards. Some of the first-tier yards that are exposed to close down are primarily occupied with repairs and therefore will probably not close down entirely but will put their newbuilding operations on hold. If yards also start to close as a result of financial problems, the amount of yard capacity could go even lower.
"We see no easy solution for the shipbuilding industry. The coming years will be extremely difficult and a lot of yards will have to close down. However, in some ways the demise of the shipbuilding industry is a necessary evil in order for shipping to return to a more normalised state," the institute concludes, adding that the industry needs to adjust active yard capacity for lower future demand in order to balance the declining orderbook, increase newbuilding prices and avert the growing liquidity crisis.
Sinotrans&CSC Jinling Shipyard under China's state-owned enterprise Sinotrans&CSC Holdings Co., Ltd. launched a 9,900dwt cement carrier for its UK-based shipowner on May 17, according to a domestic shipping news report.
The vessel measures 124.7m in length overall, 20m in breadth moulded, and 10.80m in depth moulded, the report added.
Greece's Super-Eco Tankers has placed an order for two firm 40,000dwt IMO-II product tankers at South Korea's Hyundai Mipo Dockyard.
The two newbuildings are scheduled to be delivered in 2017 and 2018 from Ulsan. No price has been revealed.
Super-Eco Tankers fleet currently includes 11 ships trading and an additional two 37,500dwt tankers under construction.
Chinese shipyard Zhejiang Zengzhou Shipbuilding Co., Ltd. successfully delivered a 39,000dwt bulk carrier "INTERLINK AFFINITY" to a US-based shipowner in May 9, according to a domestic shipping news report.