Tonnage oversupply issues has been the biggest problem hindering freight rates across most shipping markets since last year. Despite record breaking scrapping of older vessels, things haven’t improved much. Still, in its latest weekly report,Clarksons said that the worst may be over. As it mentioned, “we may have reached the peak in terms of deliveries last year, with shipyards delivering 96.9 million GT in 2010, compared to our forecast of 95.8 million GT for 2011 and then a further 86.9 million GT forecast for 2012” said the world’s leading shipbroker.
In its report on the newbuilding activity of the past week, Clarksons said that “with the world continuing to spin on its uneasy axis, and our leaders continued inability to bring any kind of stability to the financial markets, we are left wondering how this will affect the shipbuilding industry as a whole. In China, there are signs that the State, in the form of the country's transport ministry, may well step in to try and control the amount of ships that the state controlled yards are able to deliver, as concerns in all quarters grow that the current over supply of tonnage is of no help to anyone within the shipping community. In the long term, this is a laudable decision from the world's largest shipbuilding nation assuming of course that the Ministry is able to implement such measures and if achieved should be welcomed by the wider shipping community. The issue of course for cash hungry shipyards is what measures they are able to take, to not only sustain a certain level of production, but also how they can go about incentivising Owners to place new orders in a market that is currently over supplied, as well as underfunded, with many traditional shipping banks unable to step up to the plate to fund new orders” concluded the report.
Meanwhile, in a separate report from Piraeus-based shipbroker Golden Destiny, the past week ended with new building sentiment returning at firmer levels. According to the shipbroker the week ended with 56 fresh orders reported worldwide at a total deadweight of 2,602,100 tons,. The new building orders reported posted an increase of 115 % week-on-week and annual since similar week of last year.
“The total amount of money invested is estimated at region $1.34 bil while the contract price of 33 orders hasn’t been disclosed yet. Bulkcarrier orders presented a decrease of 33% while tankers showed an impressive 3000% increase from last week’s ordering activity. In the bulk carrier segment, the activity is relative firm with one panamax unit of 76,000 dwt being ordered by Chinese player, Tianjin Zhonghai, in domestic yard at an undisclosed price and three supramax units in Japanese yards, Oshima and Tsuneishi, by a joint venture between Japanese shipowner and Indian steel group, Tata NYK Shipping, for delivery in 2012-2013. In the handysize segment, Harbor Shipping of Greece is said to have placed an order for one 35,000 dwt unit in China’s Cosco Guangdong yard at an undisclosed contract price with delivery at the end of 2013. Japanese shipbuilding industry appeared also active as some business came to light in Oshima with the placement of supramax and panamax units by Saga Shipholding of Norway, N.Y.K. Line of Japan and United Ocean Enterprises of Singapore” said Golden Destiny.
It went on to add that “in the tanker segment, the new building trend towards MR size continues with more units contracted this week by Mexican oil company, Pemex, for six 51,000 dwt units plus an option for six more in South Korea’s SPP Shipbuilding at a price region $34 mil each for delivery in 2013 and 2014. Furthermore, Uniseas Shipping of Greece is said to have placed an order for four 52,000 dwt units in Hyundai Mipo of South Korea at a price region $37 mil with delivery in 2013, the contract includes an option for three more units.
In the container segment, a post panamax order came to light this week by a Chinese player, following a period of non activity since the end of July. China Shipping Container Lines has placed an order for 8 boxship units of 10,000 TEU in domestic yards, Dalian Shipbuilding and Hudong Zhonghua, for delivery in November 2013 at an estimated price of $94,25 mil per vessel, total cost of $754,24 mil. The player holds an option for two more units in each yard for delivery during 2014. In the gas segment, Japan’s leading players, Mitsui OSK Lines (MOL) and Osaka Gas International Transport agreed in a joint ownership for the construction of two LNG units with 153,000 cbm gas capacity in Mitsubishi H.I. for delivery in 2014-2015. The vessels, which Mitsui OSK Lines will manage after delivery, have been secured in a 20-year LNG supply contract between MOL and Osaka Gas” concluded Golden Destiny.