Every week more and more new building orders are being contracted for specialized vessels, especially in the container and offshore segments, in sharp contrast to what had been the norm in recent years, with dry bulk carriers and tankers leading the foray. According to the latest report from Clarksons, “following a short period of significant quietness, the container market, once again is dominating the headlines in terms of reported business. Not only have NOL finally signed up to their significant order at Samho, an order fiercely contested by not only the major Korean Yards but also those in China, it is China that have lead the headlines towards the end of the week. They have reaffirmed their position to be open for business and are now offering the same level of support to the German Owners as they have been so vocal in offering to the Greek market over recent times” said the world’s leading shipping researcher.
It went on to mention that “we have seen the State Chinese Bank, the China Development Bank flexing its muscles and offering a reported USD 1 Billion credit line to the Peter Döhle Schiffahrts KG, thus allowing them to put a letter of intent in place with the ever active Jiangsu New Yangzijiang Shipbuilding (JNY) for a long series of 10,000 TEU Vessels. This is a great show of strength by the Singaporean stock listed JNY making their presence even greater in the large container sector, following their potential USD 2.5 Billion order with Seaspan earlier in the month. It will be interesting to see over the coming months if the Chinese Yards are able to win more and more of the Korean Yards bread and butter business of larger container ships.
In terms of reported business; In Containers, Neptune Orient Lines (NOL) are reported to have ordered a series of 10 x 14,000TEU Container vessels which have been placed at Hyundai Samho. The vessels are preliminarily scheduled throughout 2013 & 2014 and are believed to be priced in the region of USD130 Mill per vessel. NOL are also reported to have signed an additional pair of 9,200TEU Vessels at DSME to be delivered in 2013. Sinotrans are reported to have signed a pair of 1,100TEU container ships at Qingshan Shipyard for deliveries in 4Q 2012, though understand these were in fact signed in April 2011. In addition, we also understand that TS Lines have ordered 4 x 1,800 TEU Vessels at CSBC due to deliver from End 2012 and throughout 2013, like the Sinotrans business though we understand this was signed back in April too.
Finally in Wet, Tankers Inc have signed a deal for 2 option 2 x 75,000dwt Product carriers at Dalian Shipbuilding (DSCI). The vessels are all due to be delivered within 2013 and believe pricing will be in the region of USD 45 Mill” concluded Clarksons.
In a similar report, Golden Destiny said that Hellenic investment plans have shown some strength this week in the newbuilding scene, with some market players focusing their interest on more specialized segments. “Greek owner Karlog Shipping Co. has placed an order in the bulk carrier segment for a handysize unit of 35,000 dwt in Chinese yard, Nanjing Dongzhe, for delivery in May 2012 at an undisclosed contact price. In the offshore segment, George Economou’s Ocean Rig is said that is going to expand its drillship newbuilding tally by taking up an option at Samsung Heavy Industries at an estimated price KRW 635bn ($604mil) for delivery in the fourth quarter of 2013. It is worth mentioning, that Greek players have started to reconsider their interest in the LNG segment and some newbuilding activity has seen some time ago by Angelicoussis gas shipping arm Maran Gas Maritime and Dynagas of George Procopiou” said the shipbroker.
In terms of worldwide deals, Golden Destiny mentioned that in the bulk carrier segment, some deals emerged this week with dry units grasping this week’s lion’s share, 32% of the overall contracting activity. In the tanker segment, the MR size seems to have won recently some of investor’s interest and there are some expectations that the high levels of demand for oil and oil products from energy-hungry emerging companies may bring in the future more volume of tanker newbuilding business. Overall, the week closed at similar week’s levels with 22 units reported worldwide, down by 60% from last year’s weekly activity when 55 new orders had reported worldwide with bulk carriers grasping 75% of newbuilding business. In terms of invested capital, it is difficult to estimate this week’s value of investments and which sector is the most overweight, since 50% of the total volume of newbuilding transactions are reported at an undisclosed contract price” said the shipbroker.