Newbuilding orders pushing forward, demolition activity slowing down
By total
Published: 2011.07.08
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In its latest report, Clarksons said that “the newbuilding market continues to push forward and we have been seeing further reports of new business being concluded. These reports have, as usual, been largely dominated by the container market, specifically with

the news this week from Maersk announcing they had declared the first set of 10 options for 18,000 TEU containerships. These are set to be built at DSME, and now brings the total number of vessels ordered in this series to twenty.
As we have discussed before, the Korean yards have had a very successful 1H of the year. The resurgent interest in Containerships, Offshore and LNG markets have seen the major Korean secure much of their forward orderbooks throughout 2013, filling out their earlier capacity and allowing them the future luxury over which projects to move forward on. This is in stark contrast to China, wherein a lack of dry bulk ordering, a staple of the yards orderbook last year, has left many yards with a pressing need to fill their forward production lines. Whilst there have been some notable successes in winning container orders, there remains too much early capacity at both the state and private yards and as such would expect a continued softening of pricing as we move into the second half of the year” said Clarksons.
In a separate analysis, this time on the second hand vessel market, Shiptrade Services mentioned that an increasing number of newbuilding vessels is ready for launching and their owners are looking for cash flow although Shipping finance is still very difficult especially for the European Shipowners. “As a consequence the brokers are axpecting that more second hand vessels will become sales candidates as an alternative source of required cash flow. Following the recent sales, together with the softening in prices, brokers and owners expect that this momentum will continue and will create new opportunities during the summer period. We have seen a number of buyers shifting from purchasing vessels built in the 80ies towards 90ies built” said the shipbroker.
Highlights of the week are: The STX owned Handysize Bulkers “New Baroness” – “New Concord” – “NewDiamond” (about 27.000 dwt bilt Japan 1996 – 1997) have been reported sold to Indonesian Buyers for USD 43 mill en bloc. This transaction includes a Bareboat Charter Back to STX for 3 years at USD 7.000 per day, with an option to extend this charter for two more years at the same rates. Geden Owned MR tanker sisters “Buddy” & “Bull” (about 50.000 dwt built STX Korea 2009) are reported to have been bought by Navios Maritime Acquisition Corp for USD 84.8 mill on enbloc basis. Geden seems that has chartered the vessels back for USD 22,490/day for the first year and 21.503 per day for the remaining two.
It also mentioned that “we continue to see firm interest for 80’s built tonnage, especially from Middle, Far East and Greeks buyers. At the same time buyers for 90’s built tonnage are becoming more firm. Buyers for larger modern tonnages, both in the dry and wet sectors are still there, especially with the existing softening feeling and even more for deals with some secured employment. Such business proposals provide better grounds for owners to enter discussions with their financiers at this market which for the moment seems to be volatile both for shipping and the global capital markets” said the shipbroker.
In the demolition market, Piraeus-based shipbroker Golden Destiny said that “the monsoon period in India seems that has put a downward pressure in scrap rates, while there is a general feeling that levels may drop even further as the situation in Bangladesh is still unclear and owners do not appear very confident to commit their vessels under such environment. There are fears that a possible foreclosure of Bangladesh on the beginning of July will bring a large volume of scrap tonnage in the shipyards of Alang, pushing prices downwards. Since the end of April, scrap prices have lowered by $15/ldt-$30/ldt for dry and $20/ldt-$30/ldt for wet cargo with India and Bangladesh offering now $480-$495/ldt for dry and $510-$520/ldt for wet cargo. Pakistan managed to win one more unit this week on the dry market, a panamax unit of 12,067 lightweight for quite firm price at $495/ldt. On the other hand, the activity in China’s Shiprecycling industry has been muted again with prices falling below $460/ldt despite expectations for a firming of the market within the monsoon period.
The week ended at a significantly slower pace of activity with only 9 vessels reported to have been headed to the scrap yards of total deadweight 497,674 tons. In terms of the reported number of transactions, the demolition activity has been marked with a 47% week-on-week decline and in terms of the total deadweight sent for scrap there has been a 30% decrease. Bulk carriers for one
week more won the lion share of scrapping business with two capesizes heading to the scrap yards. In terms of scrap rates, the highest scrap rate has been achieved this week in the liner segment by India for M/V “BM Challenge” 17,422dwt OF 6,555 ldt at $505/ldt, while in the wet market India has paid the firm price of $515ldt for M/T “IRAN RAJAI” of 39,339dwt of 9,974 ldt. At similar week in 2010, demolition activity was up by 68% than the current levels, in terms of the reported number of transactions, 22 vessels had been reported for scrap of total deadweight 683 mil tons with tankers holding 45% of the total scrapping business and India offering the highest levels $375/ldt for dry and $400/ldt for wet cargo” concluded the shiproker’s report.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

 

(Source：hellenicshippingnews）

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