Newbuilding Market Activity on the Rise

EITHERBulk newbuild orders have appeared on the market once again this past week, despite the lackluster state of the cargo market. In its latest weekly report, shipping broker Allied Shipbroking said that “the newbuilding market resumed in relatively modest fashion for another week, consistent with the flow of new projects reported as per the table below. More specifically, in the dry bulk cargo sector, new orders appeared in the market again (biased, however, towards medium to small size segments), despite the considerable pressure that is present in cargo numbers during an extended period now. With buying interest remaining strong, we can anticipate a lot of strong projects coming forward, especially as we move into the latter part of the year. In the oil sector, things did not prevail so lively. That can seemingly be seen as disconnected at this point, given the incremental recovery in terms of freight earnings that has been taking place for many months. On the other hand, this does not necessarily reflect the general appetite and positive sentiment surrounding this particular market at the moment. Overall, given the market state of the other main sectors as well, we can expect a fairly fervent new orders market for the coming period.

Source: Allied Shipping Brokerage

In a separate report, ship broker Banchero Costa said that “in bulk carriers, Polish Steamship added 4 x 37,000 dwt Lakers in Dalian, who ordered construction at sister shipyard Shanhaiguan. Deliveries planned for the end of 2025. Dalian Shipbuliding received an order from CITIC Leasing for the construction of 5 x 65,000 dwt Ultramax, deliveries will be during 2025. Doun Kisen Japan went to Jiangmen for the construction of 2 + 2 x 40,000 dwt Bulkers, deliveries at the end of 2025.

Source: banchero costa &c spa

Hyundai Mipo has received an undisclosed owner order to build 2 x 45,000 cbm LPG for delivery in late 2024 and early 2025, priced at around $69 million per unit.”

Meanwhile, in the S&P market, Allied Shipbroking said that “on the dry bulk side, things continued on a relatively slow tone for another week given the limited number of units changing hands. Thinking about the recent trend from the earnings side, this doesn’t seem that disconnected. At the same time, asset price levels are also under pressure, widening the bid-ask spread in the SnP market. At this point, we can anticipate that a more volatile market will prevail, skewing trading volumes significantly from time to time. On the tanker side, it is quite evident that things have been moving on a stronger trajectory for some time now, given the good levels of activity seen in the market. Notwithstanding the foregoing, as of last week there was a small setback, in accordance with the considerably lower number of boats reported as sold. Overall, given the recent momentum in terms of earnings, coupled with the overall positive sentiment that has surrounded this market for some time now, we can expect a relatively fervent SnP market in the coming period.”

Source: Allied Shipping Brokerage

Banchero Costa added in S&P Market that “during the week, the second-hand dry market was quiet with most of the active players waiting for new developments in the charter market. C. of Panagea was reported to be behind the purchase of the Clarke Quay 55,000 dwt built in 2010 by Hyndai Vinashin at $17.1 million. A Japanese-controlled Handysize, the 28,000 dwt Malto Hope built in 2013 by Imabari (BWTS-equipped and log-fitted), was rumored to be selling for $13.6 million. A strong appetite for product carriers was clearly detected in the tanker market. C. de Tufton purchased 2 x ECO MR Alkaios and Archon around 50,000 DWT built in 2016 by Samsung for $36.5 million each. Two ice-class 1A Super equipped 16-year-old MRs, the 53,000 dwt Gotland Carolina built in 2006 by GSI and the 47,000 dwt FSL Singapore built in 2006 by HMD sold respectively for $18.5 million and $18 million. Dollars. A modern VLCC, the 300,000 dwt G Dream built in 2022 by Hyundai (equipped with Scrubber) was sold to Korean buyers for $108 million.”
Nikos Roussanoglou, Hellenic Shipping News Worldwide

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