Despite the recent reports indicating a decline in newbuilding oderding activity since the start of the year, ship owners appeared determined last week to reverse the trend, seeking to capitalize on lower prices offered by shipyards, in their attempt to boost business. In its latest report, Clarksons Hellas noted that «after last week’s report bemoaning the decline of the orderbook by 19 percent in terms of dwt, it appears that the market has hit back with a series of orders to help bolster the yards, the most significant of which being the 10 x 13800 teu containerships ordered by clients of Enesel at HHI shipyard. So perhaps it is not all doom and gloom for shipyards and there may even be positive signs for some sectors! We may have only seen USD 22 billion invested in new orders so far this year, which is a significant fall when compared to previous years, but in certain sectors such as tankers and in particular the products market, we have seen investment increase over 14% compared to 2011, which in turn equates to around USD 3 billion of investment.
It is probably far too early to say that any type of corner has been turned for the shipyards yet, but at least from their point of view they can continue to see that there are still Buyers in the marketplace that are prepared to invest significant sums in shipping and that there still remains the opportunity for yards to win new orders, if they are prepared to offer a more diverse product range as well as continuing to be price competitive” said Clarksons Hellas.
In a sepatate note though, Golden Destiny noted that «in the newbuilding market, there has been a 67% decline in the volume of new contracts from last week’s activity from 53% slower business in the offshore segment and 71% less contracting activity in the bulk carrier segment. The week ended with 12 fresh orders reported worldwide at a total deadweight of 350,400 tons, with negative volume of business in all main vessel types. This week’s total newbuilding business is down by 64% from similar week’s closing in 2011, when 33 fresh orders had been reported with bulk carriers grasping again the lion share, 47% of the total newbuilding business compared with 17% today’s levels. In terms of invested capital, the total amount of money invested is estimated at region $172,2 mil with 66% of the total number of orders being reported at an undisclosed contract price. The offshore segment is the most overweight by holding 68% of this week’s total amount of money invested, while there has been no fresh contracting activity revealed in the tanker segment for a second consecutive week and only one fresh contract of two kamsarmax units in the dry bulk carrier segment at Chinese yard by Taiwanese owner, Sincere Navigation, at a price in the region of $27,5mil each. At the end of June 2008, a kamsarmax newbuilding order at Chinese yard was costing around $57mil.” said Golden Destiny.
The shipbroker added that “in the container segment, Greek shipowner Enesel, part of the NS Lemos group of companies, is confirmed to have contracted 10 ultra-large container ships for long-term charter to Evergreen Line of Taiwan. The deal was confirmed to Fairplay by Evergreen: "Based on the tonnage demand needed to launch joint services with vessels of similar sizes, Evergreen Line decided to charter the gigantic vessels. “With the delivery of these new ships, Evergreen Line will concurrently return chartered vessels upon their expiration dates," an Evergreen statement said. The 13,800teu ships are due for delivery from 3Q 2013 to 4Q 2014, with the order having been placed with South Korean builder Hyundai HI. Evergreen would not comment on the financing arrangements or the charter rates. Rumours regarding this order were initially reported in Daily Newbuilding News on 16 April, with finance between Evergreen and Korea Infrastructure Investments Asset Management. However, this deal was not finalised as Korea Infrastructure Investments Asset Management was unable secure the necessary fund and parties could not reach consensus on some technical issues within a mutually agreed time limit.
In the gas tanker segment, Mitsui O.S.K. Lines, Ltd. announced the signing of a long-term contract for two new liquefied natural gas (LNG) carriers with Kansai Electric Power Inc. At the same time, MOL concluded contracts to build the ships in Kawasaki Heavy Industries, Ltd. and Mitsubishi Heavy Industries, Ltd. The ships are slated for launching in 2016 and 2017. MOL will manage and operate the vessels, with which transport LNG for Kansai Electric Power. The first vessel is a Moss-type carrier with a 164,700m3 cargo tank capacity, based on a new design from Kawasaki Heavy Industries. It will be the largest ship in its class that can pass through the expanded Panama Canal which is scheduled for completion in 2014, while maintaining a hull size allowing it to call at major LNG terminals around the world. The second vessel has a 155,300m3-class cargo tank capacity, and is one of the Sayaendo series carriers developed by Mitsubishi Heavy Industries, featuring a continuous cover over its four Moss-type spherical tanks. The peapod-shaped continuous cover is integrated with the ship's hull, achieving weight reduction while maintaining overall hull rigidity. This will increase fuel efficiency. Both vessels adopt a new steam turbine engine that reuses steam for heating. This will also reduce fuel consumption. They also feature an advanced heat insulation system that offers the lowest LNG vaporization
rate – 0.08% – of any LNG carrier in the world. Its environment-friendly, economically-advanced design also effectively controls surplus boil-off gas” said the shipbroker.
It added that “in the LPG segment, Frontline confirmed to have contracted the largest LPG carriers ever to be ordered in China. The John Fredriksen-controlled shipowner has initially ordered two 82,000m³ vessels at the CSSC-controlled Jiangnan Changxing HI, with delivery due in June and September 2014. However, the order could ultimately total six ships should all options be taken up. The Lloyd’s Register-classed ships will feature a length overall of 226m, a beam of 36.60m and a hull depth of 22.20m. In the offshore segment, Japan’s’ Universal Shipbuilding confirmed that it secured orders for six platform support vessels from Singapore offshore player Swire Pacific Offshore. The high-specification 3,700dwt PSVs, which come with options for four more vessels, will be built in USC’s Keihin Shipyard and will be delivered “progressively” from the third quarter of 2014” the report concluded.