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More Newbuilding Orders Pouring into Shipyards

Posted on January 10, 2024

In More newbuilding orders have been reported over the past week, despite the Holiday season. In its latest weekly report, shipbroker Allied said that ‘while the Christmas and New Year period typically signals a holiday for many, there was no such rest in the newbuilding market as we begin 2024 with a very healthy list of orders, totalling roughly 50 firm orders over the past few weeks if including the declaration of some previously held options. COSCO led the way with their contracting of 2 VLOCs, backed by TC to Vale, 3 Aframaxes, 2 LR1s, and 1 MR tanker, all set for construction across two COSCO Shipping Heavy Industry (CHI) yards. The vessels will all be either Methanol DF or Methanol ready and demonstrate the confidence in the fuel playing a role in a lower carbon future that was evidenced by contracting throughout 2023. Union Maritime has also been active recently, with two completely new deals coming to light in the form of 2 LR2 vessels contracted at CHI and 2 stainless-steel chemical tankers from Fukuoka Shipbuilding, which come in addition to the declaration of options for 2 chemical tankers at Wuhu Shipyard and 1 at Fujian Mawei”.

In a similar note, shipbroker Banchero Costa added that “a little note on 3 trends 2023 showed in the NB sector: – China has been leading the way with the larger number of orders – Most of the delivery slots have been filled till 2027 (for some specific segments even longer) – Decarbonisation is contributing to a large number of NB orders. The strong tanker market pushed owners to take more commitments. Cosco Shipping Energy Transportation placed 3 x 115,000 dwt LR2 at Cosco Yangzhou for a reported price around $82 mln each, the vessels are dual fuel methanol. They also signed an order for a single MR2 50,000 dwt at Dalian for a price around $49 mln and 2 x Panamax tanker around $58.5/59 mln. Deliveries are expected towards 2H 2026. The Greek owner Cape Shipping was rumoured signing an LOI with SWS for 2 x LR2 for delivery during 2026. The duo will be built at subsidiary Hantong H.I., the price reported at $66 mln each.

Another Greek Owner, Minerva Marine was reported ordering 2 x 115,000 dwt at New Times, dely in 1H 2027, the vessels were rumored LNG DF capable. In the dry market a revive for larger units emerged. Mitsui OSK selected Qingdao Beihai for the construction of 3 x 218,000 NewCastlemax for dely from end 2026, price around $86 mln each. Eastern Pacific optioned 4 additional similar vessels at the same yard having now firm ten units of 210,000 dwt with the last options rumoured price around $80 mln each. The gas NB market sees no end for fresh orders. The Greek owner TMS ordered for 2 x 93,000 cbm LPG Ammonia carriers at Samsung for a priced of $120 mln each, dely across 2026 and 2027. Mitsui OSK was also busy with an order for 3 x 98,000 cbm LPG Ethane carriers at Hyundai which are going to be fixed on long term to Reliance. The NB price is understood to be around $167 mln per ship”, Banchero Costa said.

Meanwhile, in the S&P market, Allied said that “on the dry bulk side, we have seen the typical lull during the closing of the year followed by a modest gear up in the snp market, with the numerous transactions coming to light. At the same time, we noticed a presence across all the main size segments, with the age groups of sales varying as well, underlying that a solid buying appetite prevails in the market. Reflecting this, the year started with modest upward pressure on asset price levels, perhaps signaling to the market that 2024 is to be dynamic over the upcoming period. On the tanker side, we did not experience a similar trajectory to that in the dry bulk sector, with the first week of the year having started with a relatively limited number of units being reported as sold. In the absence of an active MR market, only the Suezmaxes have made a modest appearance as of late”.

Banchero Costa added that it was “a busy first week of the year in the dry market: starting from a very substantial deal in the Capesize segment, with the Danish owner Norden A/S reported as the buyer of the CAPT TASOS 182,000 dwt 2023 built Namura for $70.5 mln. Chinese Buyers were rumoured behind the sale of the HIGHLAND PARK 174,000 dwt 2006 built SWS for a price in the low $15s mln. The Japanese built PostPanamax FLAG TRIAS 93,000 dwt 2007 built Namura was rumoured sold at $14.5mln, while the Chinese built SKAFIA WAVE 87,000 dwt 2011 Hudong Zonghua was reported sold to Chinese for $16 mln. The Greek Owner Star Bulk was rumored as the seller of the STAR BOVARIUS 61,000 dwt 2015 DACKS for a price in the low $25s mln; as comparison, in November the CP GUANGZHOU 63,000 dwt 2015 Chengxi was reported sold for $23 mln. 2 other DACKS built Ultramaxes were reported sold: Clients of the Chinese Owner Fortune Ocean were reported having sold the XING HE HAI 61,000 dwt 2016 built DACKS and the XING HAO HAI 61,000 dwt 2016 built DACKS to Chinese for $52 mln enbloc. In the Supramax segment, the Dolphin57 design IKAN PARANG 57,000 dwt 2011 Taizhou Kouan was reported sold at high $11s mln. Recent transactions in the tanker market have witnessed noteworthy sales across different segments.

In the Suezmax segment the SERENEA 159,000 dwt 2009 built Samsung HI (Scrubber fitted, next DD June 24) was reportedly sold to Eurotankers at $ 46 mln. The Aframax S-TRUST 106,000 dwt 2005 built Hyundai Samho, was reportedly been sold to undisclosed buyers for $32 mln. The sale follows that of its sister vessel, S-TREASURE (now renamed Aquatica), in December, at the same price. In the LR1 segment, Advantage Tankers was reported as the buyer of 2 x 74,000 dwt Hyundai Mipo: ALPINE PEMBROKE (2010) and ALPINE PIONEER (2011) for a total price of $65 mln. Canna International, a newly established Turkish entity, has emerged as the buyer of 2 x LR1 sold by Chemikalien Seetransport: CHEMTRANS MOON and CHEMTRANS SEA, both 72,000 dwt 2004 Hudong-Zhongua Shipbuilding. The two vessels have been reported sold at high $16s mln each”, the shipbroker concluded.


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