As uncertainties around the future growth of world trade and the economy are growing, ship owners appear to be more reluctant to place long-term bets, such as a newbuilding contract commitment. In its latest weekly report, shipbroker Allied Shipbroking said that “activity softened last week in the newbuilding market, as ship-owner seem reluctant to add new orders in their orderbooks seemingly deterred in part by the increased uncertainty noted in the freight market as of late. In the dry bulk side, market participants saw a sharp correction in rates over the past couple of weeks and took a step back from any new orders’ plans. The only reported activity in this sector was the order of two Ultramax vessels at Chinese shipyards from domestic owners. At the same time, the tanker sector fell quiet last week, as only one new order came into the spotlight and this was for 4 small tankers from Chinese interests. Uncertainty in the tanker market remains relatively strong, despite the improved market fundamentals and earnings witnessed of late. However, despite all this, there is still a feel that there will be a fair more activity to be noted before the year comes to an end”.
In a separate newbuilding report, Clarkson Platou Hellas added that “in dry, Japanese JV yards NACKS and DACKS both added two 61k Ultramax each from Jiangsu Ocean Shipping – with all four units due for delivery in 2020. The focus of ordering in tankers this week is on the specialized products space. Wuchang Shipbuilding signed contracts with Sinochem Shipping for two firm plus two option 7,200dwt stainless tankers, with both firm vessels due for delivery in 2020. Daitoh Trading are understood to have ordered a series of 16k stainless tankers with three vessels at Fukuoka and two at Usuki. Delivery is due from end 2020. SITC added to their container orderbook at Yangzijiang with the addition of three 2,700 TEU feeders for delivery end 2020 and into early 2021. Dae Sun also took an order for a single firm (plus one option) 1,000 TEU vessel from domestic owner Namsung Shipping to deliver in 2020. In Gas, clients of Cardiff have added a fifth 174,000cbm LNG carrier at HHI with the latest vessel due for delivery in 2021”.
Meanwhile, in the S&P market this week, Allied Shipbroking said that “on the dry bulk side, a fair volume of transactions took place the past week, despite the turbulent scene noted in the freight market. With spot earnings being on a steep downward correction, especially on the Capesize segment, things are rather uncertain on the SnP front, in terms of what to expect next. Notwithstanding this, given that buying appetite remain ample, we can expect the overall sentiment to return to the positive side and a fair number of deals to take shape before the closing of this year. On the tanker side, activity here showed a slight softer face, at least on a w-o-w basis, in contrast somehow with the overall better state of the freight market. At this point, we see buying interest is mostly concentrated on the more vintage units, given that these units offer relatively higher “discounts” and subsequently positioned to a lower risk regime”.
Ships’ valuations expert VesselsValue added this week that “tanker values have remained stable, with the exception of older Suezmax tonnage which has firmed. Suezmax newbuilds Hull 5043 and Hull 5044 (158,000 DWT, Jul – Aug 2020, Daehan) sold to Maran Tankers for USD 61.5 mil each. Both Scrubber fitted. Aframax HS Tosca (115,000 DWT, Oct 2004, Samsung) sold to Greeks for USD 13.5 mil, VV value USD 13.11 million”. In the dry bulk market, “mid age Supramax and mid to old age Handy values have softened. Panamax Olga V (81,700 DWT, Mar 2017, Namura) sold to ArcelorMittal Shipping for USD 30.0 mil, VV value USD 28.91 mil. Panamax Taurus Ocean (78,800 DWT, Feb 2008, Sanoyas) sold to Greeks for USD 14.5 mil, VV value USD 14.85 mil. Supramax Gemini Pioneer (55,600 DWT, May 2008, Mitsui Tamano) sold to Greeks for USD 13.6 mil, VV value USD 13.50 mil. Supramax New Kosmos (56,000 DWT, Aug 2005, Mitsui Tamano) sold for USD 11.15 mil, VV value USD 11.56 million”, VV concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
