Further Deals Reported in Newbuilding Market

It seems that there are still deals to be made in the newbuilding contracting market, as several ship owners are looking to commit to new vessels. In its latest weekly report, shipbroker 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 LOI stage though it is clear that in their majority potential buyers are seeking to secure any TIER II slots 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 the volume of new orders that will amount in total 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”.

In a separate newbuilding note, Clarkson Platou Hellas this week said that “there is one tanker order to report this week, with Torm signing a contract for four firm plus four optional 50,000 DWT MR Tankers with CSSC Offshore Marine (GSI). It is understood that the deliveries for the four firm units will be within 2019. In Dry, Jiangsu New YZJ have received an order for three firm plus three optional 180,000 DWT Capesize Bulk Carriers with a JV between Cargill and Mitsui, Great Wave Navigation. Delivery of the firm vessels is similarly due in 2019”, the shipbroker noted.

Meanwhile, in the S&P market, Allied said that “on the dry bulk side, activity was on the rise this week, showing a complete turn around in market conditions, with buying interest once again on the rise. Prices have yet to reflect this with most sales still remaining fairly in line with similar transactions that we have been seeing. On the tanker side, limited activity to be seen, with only a handful of MR tankers changing hands this week. With a notable amount of difficulties still being noted in the freight market and uncertainty as to the future prospects currently prevailing amongst owners and potential buyers, it seems as though most have put things on hold for now”.

VesselsValue, a ship valuations’ expert noted that “tanker values have remained stable this week. Suezmax vessels Gener8 Horn (159,500 DWT, Jun 1999, Daewoo) and Gener8 Phoenix (153,000 DWT, Aug 1999, Halla) were sold en bloc for USD 20.4 mil vs VV USD 20.4 mil keeping values stable. The MR2 Tamarin (51,000 DWT, Nov 2008, SPP) sold for USD 17 mil vs VV USD 18.2 mil which has softened mid age MR tonnage”.

In the dry bulk market, VV added that “bulkers values have firmed this week. The Capesize Blue Island (152,400 DWT, May 2000, Koyo Dock) sold for USD 8.2 mil vs VV USD 6.0 mil. The Panamax Atlantic Prime (82,200 DWT, Sept 2011, Tsuneishi Zosen) sold for USD 19 mil vs VV 18.5 mil, firming values. In older tonnage the CSE Harmony Express (76,700 DWT, Nov 2002, Imabari) sold for USD 9.0 mil, VV value USD 8.15 mil. The Supramax Christine B (58,100 DWT, Dec 2009, Tsuneishi Zhoushan) sold for USD 13.8 mil, VV value USD 12.32 mil. Firming values for mid age tonnage. Handy values have remained stable this week. The Ephesus III (31,800 DWT, Oct 2004, Hakodate Dock) sold to Manta Shipping Transport for USD 6.75 mil, VV value USD 5.83 million”, VV concluded.