Asian shipyards looking to increase newbuilding orders until the end of the month
With this year's holiday period in Asian markets not expected until the start of February (Lunar New Year), shipyards across the region are looking to capitalize on the extra time given, in order to increase their bookings and take advantage of the heightened activity noted during the final weeks of 2012 and the early ones of 2013, Hellenic Shipping News Worldwide reports. Still, the newbuilding market has quietened down during the past week, against the backdrop of the various orders placed during the past few weeks. According to Clarkson Hellas, "unlike last year with with its early Lunar New Year, this year’s festivities are not set to begin in the Far East until the first week of February. We would expect to see yet further orders placed in the near future as the yards look to take advantage of these extra few weeks and continue the momentum generated towards the end of last year" said the company in its latest weekly report.
It added that "in Japan, the past two weeks have seen some interesting developments which include the conclusion of the long awaited merger between IHI Marine and Universal Shipbuilding, forming the new corporation Japan Marine United. With its potential for improved economies of scale and the interesting mix of expertise between the two yards helping them to pursue a broader product spectrum, it will certainly be interesting to see how the yard takes on the challenges of the current market. This will no doubt be aided by the continued depreciation of the Yen, which is now trading at circa 89 Yen to the US Dollar. The Yen has depreciated by approx. 12‐13% in the past three months and potentially looks set for even further movement due to the recently announced Y10.3tn (USD 116bn) economic stimulus package, designed to boost Japanese GDP by 2%. Assuming this stimulus is successful, then there could be more positive times ahead not only for JMU but all Japanese Shipbuilders as they look to compete in the global market" Clarkson Hellas concluded.
In a separate report, Golden Destiny noted that the "flurry ordering activity of December keeps going for the opening of New Year with significant emerged business for the construction of large sized vessels in the bulk carrier and tanker segments. Overall, the week closed with 45 fresh orders reported worldwide at a total deadweight of 3,368,320 tons, posting a 10 % week-onweek decline from the first week of January due to non reported activity in the gas tanker and container segments. In the bulk carrier segment, there has been a remarkable 800% week-on-week increase from strong capesize orders placed at Chinese yards, while offshore vessels still keep the lion share, 49% of the total newbuilding volume. This week’s total newbuilding business is up by 246% from similar week’s closing in 2012, when 13 fresh orders had been reported, 2 for bulkers, 5 for tankers, 1 liner, 2 passenger/cruises and 3 special projects. In terms of invested capital, the total amount of money invested is estimated in the region of more than $1,34bn, 25 newbuidling deals reported at an undisclosed contract price, with a hefty amount invested in the construction of capesize and very large crude carrier newbuildings" said the shipbroker.
It added that "in the bulk carrier segment, Chinese Shipbuilder Nantong Cosco KHI has won a new order for two ultramax bulkers of 61,000 dwt from a compatriot shipowner, Jiangsu Ocean Shipping with delivery during the first half of 2014. The newbuilding price is estimated in the region of $25mil each. In addition, Oldendorff Carriers of Germany is said to have booked two 61,000dwt bulkers at Nantong Cosco KHI for delivery at the end of 2014, including an option of two more vessels, at a price of about $24-$25mil per vessel. In the capesize segement, Frontline of Norway and Thenamaris of Greece have placed firm contracts, while South Korea’s biggest shipping companies have organized themselves into consortia to build nine capesize bulkers with a value of 1,8 trillion won ($1,6 bn). The ships would service coal cargoes to Korea Electric Power Corp and the successful consortium will be obliged to build the ships in compatriot yards.
In the tanker segment, Hyundai Samho HI has won an order for four very large crude carriers of 320,000dwt from South Korean shipping fund, Kukje Maritime Investment Corp, at a price in the region of $100 mil each for delivery from 2014. The vessels will be chartered to South Korean Hyundai Glovis to service a consecutive voyage contract with Hyundai Oil from 2014. In the suezmax, Venezuelan energy major PDVSA is said to be planning a suemaz newbuilding following the order of BP Shipping in order to exploit the low newbuilding costs" the shipbroker concluded.