Press digest

2018 April 19

Newbuilding focus turns to bulkers - Allied Shipbroking

The tide has turned in the newbuilding market this week, as the focus seems to be the dry bulk segment, as opposed to tankers, which “stole the day” last week. In its latest weekly report, shipbroker Allied Shipbroking said that “we are still seeing a fair amount of activity take place this week, albeit that much of the volume was expressed through deals involving an increased number of firm and optional units. Things seemed to have scaled back in terms of orders being placed in the tanker sector, although we are still seeing a few deals trickle through and there still seems to be interest holding amongst some buyers.

The main switch this week has been the focus over to the dry bulk side, with two notable orders helping reaffirm the markets commitment as to the overall future prospects being expressed. It will be interesting to see to what extent more owners will flock over to the new ordering side, rather holding all their buying interest on the second hand market. To this end a lot will be played out on the pricing front, something that is surely acting as a back stop right now given the fact that we have seen hardly any shifts in asset prices for second hand tonnage over the past couple of weeks, while for new orders shipbuilders have already pushed their levels and are showing appetite for further price hikes now that buying interest has returned”.

In a separate note, Clarkson Platou Hellas added that it was “a quiet week in the Newbuilding market with only a couple of orders to report. In Tankers, Keppel have announced winning an order for one firm plus one optional 7,990 DWT Dual-Fuel Bunkering Tanker from domestic owner Sinanju Tankers. This will be the first LNG-fuelled bunkering vessel for Singapore and will delivery in the 2nd half of 2019. In other sectors, Jiangsu Dajin Heavy Industry has received an order for two firm 8,000 DWT General Cargo Vessels from Aston Enterprise in Russia. The duo are set for delivery in 1H 2019 from China”.

Meanwhile, in the S&P market, Allied Shipbroking said that “on the dry bulk side, there still seems to be a fair amount of activity taking place, with once again the mid size segments taking the lion share. There was a fair amount of tonnage changing hands in the Supramax size, even when taking out the enbloc sale of the four Yangzhou built vessels. A fair amount of focus seems to have been placed on the close to ten year old assets out there, though we don’t seem to have had yet any significant shifts in terms of pricing, despite the increased level of buying interest.

On the tanker side, things were fairly more active this past week, though a large portion of the reported deals involved enbloc sales. The MR tanker range seems to have been the exclusive focus for buyers this past week, something of a switch compared to what we had been seeing a couple of weeks back. In most of the reported deals, prices were showing to be at relatively competitive levels, while we did see a fairly spread out range in terms of age”.

In a separate note, VesselsValue said this week that values have softened in the tanker sector this week, across all classes, most notably in MR tonnage. “An en bloc deal of two MR2 vessels to Shandong Shipping Corporation for USD 33.0 mil, VV value USD 33.16 mil included; High Enterprise & Silver Express (46,000/47,400 DWT, Mar/Aug 2009, Shin Kurushima Ujina/ Onomichi Dockyard). MR2 Tanker Star Express (45,800 DWT, Mar 2009, Shin Kurushima Ujina) sold for USD 11.46 mil, VV value USD 11.1 million”, said VV.

In the dry bulk sector, VV added that there was “very slight softening across the sector, except for Panamax tonnage which has seen slight firming. Panamax Double Prosperity (76,600 DWT, Jul 2005, Imabari) sold for USD 12.53 mil, VV value USD 12.5 mil. Supramax Aquarius Ocean (53,500 DWT, Sept 2005, Imabari) sold for USD 10.3 mil, VV value USD 11.36 mil. SS due”, the ships’ valuations expert concluded.