Once frozen newbuilding capesize bulker projects are slowly melting down, shipbuilders in Korea, China and Japan are getting swamped with capesize inquiries.
Shipowners seem to judge that newbuilding prices have reached a bottom and forecast charter market would improve after 2014.
China's state-owned Shanghai Waigaoqiao Shipbuilding (SWS) revealed that it was awarded an newbuilding order for six 180,000-dwt capesize bulkers with additional four options from European shiponwer on the end of December 2012. Also, Thenamaris is said to have awarded two plus two (including ship type switch for one vessel) newbuilding 180,000-dwt bulkers, valued in around $46m apiece, at the Chinese shipyard.
John Fredriksen-led Frontline 2012 signed a letter of intent with SWS for four plus two 180,000-dwt bulkers, as well as with STX Dalian for four plus four same-size bulkers.
SWS' recently contracted 180,000-dwt bulker is its self-developed sixth generation capesize, which reduce fuel consumption by 20% comparing with its existing vessel.
Korea Electric Power Corporation (KEPCO)'s newbuilding and charter projects for nine 150,000-dwt capesize bulker are now in progress. Newbuildings cost around $450bn in total, with chartering due 18 years. However, the project bidding foundered in the end of last year and as did the recently conducted second tender.
Japanese shipbuilders see increasing inquiries for capesize newbuildings from the end of 2012. In November 2012, Safe Bulkers placed an order for one 181,000-dwt buker at Japanese shipyard.