Newbuilding demand maintained momentum through April, particularly in the supramax and handysize segments, as buyers jostled to place low cost orders. Japanese builders have secured enough contracts to maintain production to the end of
2015 and in many cases 2016, allowing them sufficient breathing space to increase prices as they moved into the new fiscal year. As a result interest has shifted to top tier yards in China who have managed to cover their positions for 2014 and FH 2015 allowing them also to increase prices.
We have seen increased interest in the ultramax SDARI 64 design following the release of sea trial data from CSSC Chengxi. Recent buyers include Wah Kwong who have signed 4+4 paying $25.25m at Chengxi (this could become 8+4), Oceanbulk with 4+4 at Jiangsu New YZJ on a BBHP basis and Nisshin taking 3 firm vessels at Hantong. In the handysize segment, numbers of ships being ordered are much smaller but details from Japan, who are notoriously secretive about their
orderbook, slowly emerged with reports of Namura/Hakodate taking in excess of 20 orders including reports of MUR taking up to 8 units. Prices for handysize in Japan have risen to over $23.00m for standard designs with Uni-Asia reported as paying
$24.30m for 37,000-dwt bulkers at Imabari.
Korean builders are seeing an increased level of activity in the conventional sectors, despite their focus on offshore. HHI are rumoured to be taking 3 x 250,000-dwt bulkers (against POSCO charters) and up to 6 x Newcastlemaxes for
Oldendorff at over $50.00m.
Following last month’s success, Sungdong have secured further capesizes with a two option two order from Quintana. The capesize orderbook remains unclear as Fredriksen is reported to have withdrawn from his cape contracts at YZJ, Hanjin Subic
and STX Dalian - it remains to be seen whether these orders are rekindled as Newcastlemaxes.
In addition to large bulkers, the big three yards are seeing a continued moderate level of activity in post-panamax box ships with CSAV declaring board approval on their 7 x 9,300-teu vessels at Samsung and HHI securing an order for 2 x 9,000-teu
vessels for International Maritime Enterprises. China Shipping Container Lines has released plans to order 5 x 18,000-teu vessels at a South Korean yard; Hyundai H.I. is rumoured to be the most aggressive on pricing. Following the problems with
STX Dalian, buyers wait to see the outcome of discussions regarding the main facility in Korea where a large number of contracts are still pending waiting refund guarantees.
In the tanker sector focus has been on LR2s with Teekay placing 4+8 at STX, Densa signing one at HHI, Lundqvist R. signing one vessel at Sumitomo and Eastmed taking two from Daewoo Mangalia, Romania. MR contracting activity has slowed as the
major MR builders increase prices for 2016 berths.
Overall, shipyards are taking every opportunity to raise prices – some with good reason and varying degrees of success. It remains to be seen whether this can be sustained.
