Ship owners enquire about new buildings, but hesitate to place orders
The trend established so far in the year in the newbuilding markets calls for ship owners investing in new niche markets, like LNG and LPG shipping, more fuel efficient vessels and only place orders for more conventional carriers, like bulkers, in the event of some very aggressive pricing policy from a shipyard.
In its latest weekly report, Clarkson Hellas noted that "with Gastech taking place this week, all of the major Yards from Korea and Japan have had their senior representatives in London to not only have discussions with their existing customers about current and future projects, but also looking to discuss new business with others.
Unlike last year in Holland where we saw a number of contracts being finalised, this week we have only so far seen one signing ceremony, for that of a singular 170k cbm FSRU at HHI for Clients of Höegh LNG at a reported USD 270 Mill to take their current series of such sister vessels to four" the report said. It added that "in the more conventional markets, there seems to be a little more general enquiry, with new business concluded in various asset classes.
This increase in activity will no doubt be music to the ears of the shipyards who typically look to the beginning of the fourth quarter of the year as one of their busier periods for new business. We expect over the coming weeks that the dry and container sectors especially will see further concluded contracts being reported" Clarkson Hellas noted.
In terms of reported business in dry,"clients of Oldendorff Carriers have placed an order at CSC Jinling Shipyard for three 39k dwt Handysize bulkers and a brace of SDARI 82k dwt Kamsarmaxes at a price understood to be circa USD 22 Mill per vessel and circa USD 26 Mill respectively, with delivery set to commence from the 3Q 2014.
It is also understood that the Buyers have options for a similar number of repeat vessels to be declared next year. In the Container sector, Clients of B Schulte, along with their investment partners at JP Morgan, have ordered two firm ships each of their own modified 2,700 TEU design, along with two optional Vessels at the Chinese Yard Zhejiang Yangfan, at a price understood to be circa USD 26 Mill.
The size of the ships are slightly larger than the 2,200 TEU orders we saw earlier in the year from various Greek Owners as we understand that the Chinese design house SDARI have lengthened the vessel in order to load more containers as well as to accommodate the new G type engine.
Delivery will commence from July 2014 and if all the options are declared, the final ship will deliver in September 2015. In Gas, the Swiss based Clients of Geogas have ordered one option one 9,000 cbm semirefrigerated LPG ships at STX’s smaller Busan facility in Korea. It is understood that the pricing is USD 27 Mill with delivery for the firm Vessel within 3Q 2014, with a yet to be decided date in 2015 for the optional Vessel. Hyundai Mipo have been successful in winning an order for two stainless steel fruit juice carriers from Clients of Atlanship of Switzerland.
We understand the ships are costing circa USD 40 Mill each and delivery for the first vessel will be within the end of next year. Finally Compagnie Polynesienne de Transport Maritime (CPTM) have placed an order for a single 5,000 dwt MPP vessel with passenger capacity at Shandong Huanghai Shipyard in China with delivery penned for July 2014 for an undisclosed price" the report concluded.
In a separate report yesterday, shipbroker Fearnleys noted that "activity is picking up with 15 firm orders confirmed this week. One of the major car carrier operators, namely NYK, placed orders for 4xPCTCs at two Japanese shipyards, no price reported. The new size of about 7000 cars is with a post Panamax beam, exceeding the 32.2m standard. Although high activity this week, the newbuilding market is still slow, creating some worry among the shipbuilders" it said.
Finally in the demolition segment this week, Lion Shipbrokers said that " Subcontinent market remains firm as last week paying levels between $380-$415 for bulkers, $390-$435 for tankers & $390-$420 for container vessels. China is still hungry for tonnage, paying $5-$10 per LT more than last week.
China rates are $320-$330 for bulkers, $340-$345 for tankers, $335-$340 for containers. Last but not least, Turkish market has softened for third consecutive week, paying $270-$280 for bulker, $290-$300 for tankers and $285-$295 for containers".
