A few years back, LPG and LNG shipping were considered - and in large part still are - a niche segment of the market, reserved for specialists. Today, more and more ship owners are looking to get a piece of the action, as these segments offer the best growth opportunities and for the moment they present no issues of oversupply, rather the opposite. As a result, owners stuck with the dry bulk, tanker or container oversupply issues, are looking to expand their business in new and more promising areas of the shipping market. According to the latest weekly report from Clarkson Hellas, "whilst the headline ordering in the gas market over the past twelve months has very much been in the LNG sector, this week we have seen a resurgence of ordering in the LPG sector with the penning of both small fully pressurised and midsize fully refrigerated vessels. Whilst the LNG market and especially the larger sizes filling the Yards big berths, the small to midsize LPG sector is showing some signs of resilience because of attractive pricing from Yards keen to fill early slots combined with relatively stable earnings. Also this week we have seen the number of container ships having been ordered so far this year being trebled to take the firm number of vessels ordered so far this year to the sum total of three Vessels! With the design houses in China spending a considerable amount of time now focusing on improving the smaller to mid-size designs not only in terms of fuel consumption, but also that of homogenous intake to nominal size, it will not be too much longer before we see others ordering in this important sector and allow the operators to enjoy the benefits of lower slot cost per TEU with improved efficiencies" said Clarkson Hellas.
In a separate report, shipbroker Golden Destiny stated that “in the newbuilding market, business remains strong from last week’s high levels with bulk carriers and gas tankers attracting the majority of the business. In the tanker segment, MR product size of 52,000 dwt is still on the centre of investors’ focus on the back of firmer product demand prospects, while in the container market the post panamax newbuilding appetite seems to have disappeared for this year with some fresh activity being reported for an order of two sub-panamax units. Overall, the week closed with 40 fresh orders reported worldwide at a total deadweight of 1,174,000 tons, posting an 8% week-onweek increase. This week’s total newbuilding business is up by 264% from similar week’s closing in 2011, when 11 fresh orders had been reported with only one newbuilding contract in the bulk carrier segment, one in the tanker and four in the container. In terms of invested capital, the total amount of money invested is estimated at region $402,5 mil with 55% of the total number of orders being reported at an undisclosed contract price. Notable ordering business has been in the bulk carrier segment, the construction of ten supramax units of 51,000dwt by an undisclosed Chinese contractor in domestic yard, Taizhou Kouan Shipbuilding” said Golden Destiny.
It went on to mention that “in the bulk carrier segment, the supramax size is on the spotlight on the back of firmer vessel returns amid the distressed capesize freight market status. In the panamax segment, Greek player Diana Shipping announced that it has signed, through separate wholly-owned subsidiaries, two shipbuilding contracts with China Shipbuilding Trading Company, Limited and Jiangnan Shipyard (Group) Co., Ltd, for the construction of two Ice Class Panamax dry bulk carriers of approximately 76,000 dwt each for a contract price of US$29 million per vessel. The Company expects to take delivery of the vessels during the fourth quarter of 2013.
In the tanker segment, Italian player Scorpio Tankers has confirmed an order for one MR 52,000 dwt product tanker with delivery in 2013, increasing the tally of its orderbook to eight product tankers for delivery between July 2012 and May 2013, at a contract price of region US $36 mil.
In the gas tanker segment, Exmar is pleased to announce the order of up to 8 LPG-vessels of 38,000 cum capacity at Hyundai Mipo for delivery from the First Quarter of 2014 onwards. These vessels will be dedicated to strengthen EXMAR’s already substantial commercial portfolio in the mid-size segment and designed to stay ahead of the upcoming amendments in environmental legislation. In addition, Greek player Brave Maritime has placed 4 LPG units in STX Busan of South for delivery 2014-2015 with a capacity of 6,500 cum and 5,000 cu.m. In the LNG segment, executives at Greece’s Tsakos Energy Navigation confirmed that it would order its first diesel electric powered LNG vessel of 162,000 cbm, for delivery in late 2014-2015, with an option for a second. It is understood that it have signed a letter of intent with Hyundai Heavy Industries with expected final confirmation next week.
In the container segment, Long Greek Lomar has signed an order with the Guangzhou Wenchong Shipyard in South China, for two sub-panamax units, 2,190 TEU, with an option for four more, scheduled for delivery starting from early 2014. The vessels have been designed by leading Chinese design institute SDARI (Shanghai Merchant Ship Design and Research Institute) and meet the highest standards for fuel efficiency and environmental compliance. The investment restates Lomar’s dedication to container shipping with renewals and additions to the fleet which benefit from the latest fuel-efficient designs, and follows the company’s order earlier this year for up to six new bulk carriers from China’s COSCO Group. “We are re-investing in our fleet with these new vessels,” said Achim Boehme, CEO of Lomar. “Wenchong has a very strong reputation for delivering excellent quality container vessels and being among the best shipyards in the ‘feeder’ size sector. We look forward to taking delivery of these newbuildings which will enhance our existing portfolio and allow us to stay competitive, continuing to offer a comprehensive service across the whole of Lomar with a modern, fuel-efficient fleet”, concluded Golden Destiny.