Newbuilding activity picks up pace

Newbuilding activity picks up pace

ALLIED Shipbroking reports news of fresh deals. In the dry bulk market, the positive momentum that has been shaped in the freight market and given that the worst part of the pandemic situation has already passed, have all helped boost interest amongst potential buyers.

The moderate growth noted in the fleet over the last couple of years in combination with the anticipated revival of the global economy in the coming years has left some space for speculative ordering to take place.

Eleven new units were added to the global order book recently, with the main focus given to Ultramaxes and small bulk carriers. In the tanker market, the current fundamentals may not be as positive, but what seems to be a market floor, buyers are seemingly preparing for the coming rebound. Meanwhile, the gradual drop in newbuilding prices has also helped in reviving interest in the market.

However, sentiment is still raw and it will take some time before interest finds a stable foothold. An impressive number of VLCCs have been being ordered recently (15 units), with most of them though being at the LOI stage.

Spokesman Banchero Costa added that “South Korean yards were busy with order for tankers. Daewoo signed a LOI for 10 x VLCCs with delivery from end 2022: vessels to be LNG fuelled and priced at $100 -m. Vessels will be employed against long TC to Shell.

Hyundai received an order for 2 + 2 VLCCs from Athenian Sea Carriers with deliveries during end of 2022. With increasing demand for tonnage, container players started to place more newbuilding orders. MSC has ordered 6 x 23,000 teu ULCCs to be built by Hudong Zhonghua, Jiangnan Shipyard and Jiangsu New Yangzijiang.

From Hellenic Shipping News