Newbuilding Market Picks Up as Tankers Steal the Show

Shipowners and other market players appear to be loading up on newbuildings. In its latest weekly report, Allied Shipbroking said that “we still seem to have a market mainly driven by major deals, with this week information emerging regarding Trafigura’s large tanker order as part of a leasing deal with China’s Bank of Communications Financial Leasing. Overall however and even when one excludes these large enbloc deals, activity has been strengthening somewhat over the past couple of weeks. We are still seeing evidence of this on the pricing front as well, with quoted prices seemingly on the rise as demand starts to gain further traction. There is still a considerable amount of uncertainty overshowdowing all of the main shiptype freight markets, which does in turn keep things under check. However with asset prices having shown an improvement and with China’s financial houses making a more prominent push into the shipping finance market, we are likely to see the ordering spell improve even further in the second half of 2017”, Allied said.

In a separate note in the S&P market, in the dry bulk segment, ship valuations’ specialist VesselsValue said that prices have remained stable this week. “The Capesize TRF Charleston (209,000 DWT, Jan 2017, China Shipping Industry) sold to Polaris for USD 46.2 mil. The Panamax BC Maroulio S (72,300 DWT, Sept 1999, Imabari) sold for USD 6.3 million”, said VV. In the tanker segment, VV noted that “tanker values stayed the same over the past week. The VLCC Irene SL (319,200 DWT, Oct 2004, Hyundai Samho HI) sold to Sinokor Merchant Marine for USD 30 mil vs VV USD 29.59 mil. The VLCC Gener8 Poseidon (305,800 DWT, Mar 2002, Deawoo) sold SS freshly passed for USD 22.5 mil vs VV USD 22.12 mil. The Suezmax Front Brabant (150,000 DWT, Jan 1998, Hyundai HI) sold for USD 9 mil vs VV USD 8.15 mil. The Aframax Nissos Santorini (115,700 DWT, Mar 2012, Samsung) sold SS freshly passed to Zodiac Maritime for USD 30.3 mil vs VV USD 29.78 million”, said VV.

In the container segment, VV noted that “modern Post Panamax and Panamax values have firmed. Handy and Feedermax values have remained stable. The Panamaxes SCT Oman & Qatar (4,860 TEU, Feb/Apr 2010, Daewoo-Mangalia) sold en bloc for USD 19.2 mil vs VV USD 18.99 mil, firming Panamax values for mid aged ships. The Sub Panamaxes Cordelia & Carpathia (2,824 TEU, Aug/Nov 2003, Hyundai Mipo) sold en bloc for USD 12.5 mil vs VV USD 12.66 million”, said VV.

In a separate note on the S&P market, Allied Shipbroking noted that “on the dry bulk side, we are still seeing a subdued activity level, in part reflecting the increased uncertainty and lack of confidence as to the true market direction and future market potential. It is no surprise therefore that a good number of sales reported this week are non-typical deals which do not even indicate normal sale price levels. There is also the factor of pricing, with the fast paced price having essentially brought a brake amongst buyers when compared against the freight market movements of late. On the tanker side, and in contrast to the trends that are being noted of late in the dry bulk sector, we have started to see a considerable revival in activity, with prices for secondhand assets having somewhat found a floor and even starting to show some signs of strengthening slightly. This past week we witnessed sales across all size segments, with some of the larger crude oil sizes having broken a long period of silence”, the shipbroker concluded.