This year’s curb of ship owners’ appetite for newbuilding dry bulk carriers, not to mention tankers, is expected to prove a long-term ally in the battle for the recovery of the dry bulk market in the years to come. Still, since the start of 2011, the losses are apparent and hurtful, as more and more newbuildings are entering the water.
This past week was yet another of limited volumes of ordering activity in both the dry bulk carrier (despite a surge in numbers week-on-week) and tanker markets, with gas tanekrs and containers being now the main focus. In its latest weekly report, shipbroker Golden Destiny said that “eventhough a retreat mode of business has been set the last two weeks, a bursting of activity has been revealed again with container business dominating in the scene, grasping 46% of the total volume of newbuilding business. A significant increase of ordering activity has been witnessed also in the bulk carrier segment, 100% week-on-week positive change. Overall, the week closed with 54 new orders reported worldwide, up by 145% from previous week’s activity and up by 40% from similar week closing in 2010 when 40 new orders had reported worldwide with tankers grasping 55% of newbuilding business. In terms of invested capital, the container market appears the most overweight segment due to massive postpanamax units ordered of 18,000 TEU by Danish liner operator Maersk, grasping 52% of this week’s total invested capital” said the Pireaus-based shipbroker.
The report said that in the bulk carrier market, one contract emerged this week in the panamax segment for four units by Ocean Agencies, UK placed in China’s yard Dayang at $32,5 mil each for delivery in 2012 and in the handysize segment for two 36,000 dwt bulkers placed in Samjin Shipbuilding Industries of China by undisclosed contractor . Furthermore, Chinese player Shenzhen Ocean Shipping is expanding its coastal fleet by placing four units of 65,000 dwt and four of 50,000 dwt in two Chinese yards under the control of state owned China State Shipbuilding for delivery in 2013. In the tanker market, some activity has been recorded this week in the crude segment by Knutsen NYK Offshore Tankers for a third shuttle tanker of 129,000 dwt at Hyundai for delivery in October 2013.
Golden Destiny also mentioned that in the gas market, “Greek shipowner Thenamaris is in talks with Korea’s Samsung Heavy Industries for the construction of two LNG units, but further details of the contract have not yet revealed. Furthermore, the gas shipping arm of Angelicoussis is said to have renewed its order placed on May with Daewoo Shipbuilding and Marine Engineering for two more units of 159,000cbm at a cost of excess $400 mil for delivery in 2014. Options for further two similar ships have been arranged as a part of the contract.
In the container market, the financial shipping arm of Hyundai, HI Investment & Securities has booked three 4,500 TEU postpanamax units for delivery in 2013. HI Investments is said to have already raised $131million to fund the first two vessels. In the post-panamax segment, MITSUI OSK Lines of Japan is said to have ordered two post panamax units of 8,600 TEU in compatriot shipyard Mitsubishi for delivery in 2013 to serve the Asia – Europe trade route. Moreover, Maersk Line exercised its option with Korea’s Daewoo Shipbuilding and Marine Engineering to build an additional 10 triple-E ships, originally order placed on February for another 10 similar units, for delivery in 2014-2015. Maersk line CEO Eiving Kolding said that the ships underline company’s strong commitment to the Asia-Europe trade and fit well with their current ambitions for the future development and trade. The vessels are called the “Triple-E” class for the three main purposes behind this creation – economy of scale, energy efficiency and environmentally improved- the ships will set a new industry benchmark for size and fuel efficiency. The option that the company has for another 10 more units may not be exercised. However, the Danish owner is said to be in discussions for another 10 boxship units of 10,000 TEU for deployment on the fast growing South American trades. Players suggest that the price of the 10,000 TEU units will not exceed the cost of $100 mil each.
In the sub-panamax boxship segment, Middle Eastern energy company Abu Dhabi National Oil Co (Adnoc) is said to have inked a letter of intent to construct 15 units of 2,600 TEU for delivery in 2013 & 2014 in South Korea’s STX Offshore and Shipbuilding at a cost of up to $600 mil.” concluded Golden Destiny.
Finally, in the offshore segment, players are placing every week new orders. Following the high valued orders by Dryships for another drillship and Seatankers Management for platform supply vessels, this week Havila Shipping of Norway has placed an order for a platform supply vessel in its own shipyard at Leirvik at $64 mil and Keppel FELS of Singapore has clinched a deal with Norway’s Standard Drilling for four jack up drilling rigs at $193 mil each.