New marine fuel requirements boost newbuilding ordering activity

Things are heating up again in the newbuilding ordering market, despite the relative slowdown over the course of the past few weeks, which was deemed as a mainstay, at least until the end of August. In its latest weekly report, Allied Shipbroking noted that “despite being well into the summer period which notes a typical slow down in new ordering and despite the fact that we had seen a fair softening in activity over the past couple of weeks, things seemed to have sparked back into life this past week, with a fair amount of deals emerging. A number seemed to be still on the LOA stage though it is clear that in their majority potential buyers are seeking to secure any TIER II slots that they came looking to take advantage of the lower price being offered against what is being offered for the newer TIER III designs. Beyond this, it has become ever more clear that appetite has re-emerged amongst owners, though hopefully it is still under a fair amount of conservatism and that the volume of orders that will be amounted during the remainder of 2017 will still be limited in number compared to what we had seen in previous years. The demand/supply balance in the freight market is still relatively fragile and it is vital that the future orderbook does not become once again an overshadowing burden for the market”, the shipbroker said.

In a separate weekly note, Clarkson Platou Hellas said that “in Tankers, STX have won a series of 11,200 DWT Chemical / Product Tankers from domestic owners. Woolim Shipping have extended their series by ordering two further vessels and Sambong D&C have also added one vessel by declaring an option, all for delivery within 2019. Woolim and Sambong had ordered two units and one unit respectively in April this year. It came to light this week that Jinglu Shipyard have won an order for one firm 11,500 DWT Product Tanker from Rongcheng Xinrun in China. This single unit is set for delivery in 2019. In Dry, Wuhu Shipyard have received an order for one firm plus one optional 61,000 DWT Bulk Carriers from Anhui Zhonhui Shipping for delivery in 2019. Although contracted some time ago, it has been reported this week that Saiki Heavy Industries have signed a contract for two firm 37,000 DWT Bulk Carriers with Clients of M/Maritime for delivery in 1H 2019. In the Passenger / Cruise market, Disney Cruise Lines have placed an additional an order for one 135,000 GT Cruise Ship at Meyer Werft for delivery in 2022. Being the 3rd unit in the series, this vessel will be able to carry 2,500 passengers. Finally, West Sea Viana Shipyard are reported to have won an order for one firm approx. 10,000 GT Cruise Ship from Mystic Invest for delivery within 2018”, Clarkson Platou Hellas concluded.

Meanwhile, in the S&P market this week, Allied Shipbroking said that “on the dry bulk side, the slower activity continues to hold with minimal reported sales this week and prices still holding at their corrected levels. Despite this, there is a sense that the market is on the verge of a shift, with the positive movements in the freight market helping once again boost buying sentiment, while at the same time as we approach closer to the final quarter of the year things should start to heat up ever more. On the tanker side, things were equally quiet, with minimal transactions here too, though as a break from the market norm we did see action mostly in the larger crude oil carriers with 1 VL and 2 Suezmaxes changing hands”, the shipbroker concluded.