Increased levels of enquiry across all ship sectors has kept newbuilding activity in high levels during the course of the past week, according to the latest weekly report from Clarkson Hellas. The report noted that this activity has been highlighted by the continued levels of ordering, with reports of business being concluded in each of the major conventional markets including; Dry Bulk, Tanker, Container carriers and LPG amongst others. "With enquiry & ordering across the major yards continuing to build, it will be interesting to see which buyers will look to take advantage of existing market levels, before some of the earlier capacity is absorbed and the supply/demand dynamics of the newbuilding market again begins to exert some upward pressures on pricing", Clarksons Hellas noted.
In a separate report, shipbroker Golden Detiny noted that the past week ended with a softer ordering activity from the previous weekly high levels, attributed to a rise in order for capesize bulk carriers. "Ordering appetite for medium range product tankers persists also this week with 6 fresh new orders reported, while in container segment, a new order reported by an undisclosed European owner for the construction of eight fuel efficient large panamax containerships and four sub-panamax vessels from German group at Chinese yard" the shipbroker said.
It added that "overall, the week closed with 28 fresh orders reported worldwide at a total deadweight of 1,736,000 tons, posting 30% week-on-week decrease from previous week with significant lower volume of contracts in the bulk carrier segment and hot business in container and tanker segments. In the offshore segment, the newbuilding business remains very quiet for a second week with containers holding this week the lion share of the total ordering activity, 43%. This week’s total newbuilding business is 86% up from similar week’s closing in 2012, when 15 fresh orders had been reported, 14 for special projects and 1 for small tanker. In terms of invested capital, the total amount of money invested is estimated in the region of about $374mil, 16 newbuilding contracts reported at an undisclosed contract price. A hefty amount of money was invested in all main conventional vessel segments, bulk carriers, tankers and containers. In the bulk carrier segment, the invested capital is estimated in the region of more than $184mil and in the container segment of more than $104mil, while in the tanker segment medium range product newbuildings are grasping the invested capital of shipping players" Golden Destiny said.
Breaking down the ordering activity by market, the shipbroker stated that "in the bulk carrier segment, more details emerged this week for the capesize newbuilding order by Norwegian Frontline 2012. The owner is reported to have placed an order for the construction of four 180,000dwt vessels, with an option of two more, at Shanghai Waigaoqiao for delivery in 2016. The newbuilding cost is estimated in the region of $46mil each vessel. In the handymax segment, Strategic Bulk Carriers of Singapore exercised its option for the construction of two 40,000dwt vessels at Tianjin Xingang Shipbuilding Heavy Industries for delivery in 2014 at an undisclosed newbuilding cost" it said.
In the tanker segment, "Italian D’ Amico International Shipping SA announced that its operating subsidiary has proceeded with contracts for the construction of two additional medium range product/chemical tankers of 50,000dwt with Hyundai Mipo Dockyard-Korea at a cost of less than $29mil each. The vessels are going to be delivered at the end of fist half 2014 with an option for two further vessels to be exercised by April 2013. The above two newbuildings vessels are the latest IMO II MR design with the highest fuel efficiency.
In the MR segment, one more order reported this week by Sweden owner Wisby Tankers for the construction of four 49,000dwt vessels at Treji Maj of Croatia for delivery in 2015 and 2016. Letter of intents has been signed at this stage, including an option of two more vessels. In addition, Hellenic owner Dorian Hellas is said to have placed also an order for two very large LPG carriers at South Korean Shipyard, Hyundai Heavy Industries, at a higher newbuilding cost of about $72mil each for delivery in 2015.
In the gas tanker segment, Norwegian Frontline 2012 is reported to have exercised its option for the construction of two very large LPG carriers at Jiangnan Shipyard of China for delivery mid-2015 at a newbuilding cost of about $63,5mil each" it said.
Finally, "in the container segment, Hanjin Heavy Industries of South Korea has signed a letter of intent with an undisclosed European owner for eight fuel efficient 5,400teu box ships to be built at its Subic Shipyard in the Philippines. No costs or delivery schedules have been disclosed. In the small sub-panamax segment, German group, Deutsche Afrika-Linien (DAL)/ John T Essberger Group is said to have placed an order for four 2,200 TEU vessels, with an option of two more, for construction at Zhejiang Yangfan shipyard of China for delivery from 2015. The newbuilding cost is estimated about $26mil each, which is considered to be higher due to an upgrading of the standard SDARI design" the report concluded.