Growth is still evident in the container ship newbuilding ordering activity, as was the case in the previous week, while the Nor Shipping fair held in Oslo, also contributed to a weaker activity in most other shipping segments as well. According to the latest weekly report from Golden Destiny, despite the the significant slowdown of business during the last days in the dry bulk sector, this week was one more week with quite high activity, up 80% from last week’s volume of transactions with panamax vessels being on the spotlight.
“The week ended with 58 orders reported in total (all ship types), equalling a total deadweight of around 3,5 mil tons at a total invested capital of region $3,5 bn, with containers winning the 50% share of the total ordering activity, while containership0s have gained 30% share. In terms of invested capital, the most overweight segment appears to be the offshore and container segment, since the overbooked bulk carrier and tanker segment seem to have faded as fashionable ordering investments. At a similar week in 2010, the newbuilding activity was down by 60% than current levels with 20 new contracts to had been reported worldwide and bulk carriers winning 70% share of the total volume of reported contracts” said the shipbroker.
In a separate weekly report from Clarksons, the newbuilding market was reportedly quieter last week, with much of the market’s attention drawn to the biannual Nor Shipping. “One of the key themes to emerge from week has been the need for the market to embrace technological innovations. Both MAN B&W and Wartsila have recently announced newly developed engines running on alternate fuels, such as Gas or Bio fuels. These allow for significant reductions in emissions and in addition, are more economical than the standard fuel oil engines. Whilst concerns remain over the implementation of these engine types, due to current refueling constraints, their development at least allows for yards/owners to get a glimpse of the future and how designs may change going forward. These are not however the only developments - conventional fuel oil engines continue to evolve with newer more efficient models being developed. We are beginning to see these being incorporated into the latest designs, across most of the sectors and the interest in them is beginning to grow.
With regulations on emissions becoming stricter and bunkering costs continuing to rise, these new efficient designs will become increasingly important and could be expected to be a more prominent feature of future ordering” said Clarksons.
As for ordering activity in the tanker segment, Golden Destiny said that “following the order of Scorpio Tankers last week one more order came to light in the MR segment by Greek owner Thenamaris for two product carriers of 51,000 dwt in STX Shipbuilding for delivery in 2012, at an estimated price of $35-$37 mil each with options attached for two more units.
In the gas tanker segment, Hyundai Heavy Industries is said to have won a Pertamina newbuilding tender for an 84,000 cbm VLGC, which is expected to cost around $73-$75 mil.
In the container segment, German owners Peter Dohle and Bernhard Schulte have placed a contract in Hyundai Samho for 10 boxships of 5,600 TEU for delivery in 2013 and 2014, which all have secured employment from Mitsui OSK, Japan for over 10 years at just under $39,000/daily. In addition, Hanjin Shipping is said to have finalized an order for three 4,700 TEU newbuildings at compatriot yard Samsung Heavy Industries, at a cost of around $60 mil each for delivery in late 2012 and early 2013. German owner Reederei Stefan Patjens after many years of absence is in talks with South Korea’s Sungdong Shipbuilding and Marine Engineering for 6 firm ships, of 4,700 TEU, worth $360 mil plus four options.
In the post panamax segment, the ordering spree seems to have no end by major liner operators. The Singapore’s Neptune Orient Lines is planning to book 10 vessels of 13,000 TEU and two of 10,000 TEU at yards in South Korea and it is estimated that the 13,000 TEU vessels will cost to NOL more than $130 mil each, while the smaller ships will cost around $115 mil each. CMA CGM has confirmed that the group is going to enlarge its order in South Korea from 13,000 TEU to 16,000 TEU and said that CMA CGM is not ready to follow the example of Maersk in ordering 18,000 TEU units, unless they do it in partnership. Israel Ofer Global Holdings Group, will build four 9,000 TEU boxships for delivery by the end of 2013, with an additional option for more four units in the Romanian subsidiary of Korea’s Daewoo Shipbd. that is going to build the largest containerships in Europe” concluded the report.