Newbuilding ordering activity tumbling, despite deals being concluded

Source Hellenic Shipping News vom 14.12.2011

Hellenic ship owners were the main contributors to this week's newbuilding ordering activity, as things appear to be cooling down more than ever in the market, as we head towards the end of the year.According to the latest weekly report from Clarkson Hellas, "as we move further into December and the festive period, activity in the Newbuilding market continues to gradually wind down, as evidenced by the lower levels of new enquiry now being witnessed. The week has however seen some new business being concluded, as certain buyers have looked to tie up their various negotiations before the end of the year. Whilst the second half of the year has certainly seen a slight decline in the number of orders being placed at the Korean yards, it can in no way detract from what has for the most been a very successful 2011 for the major yards in Korea. The "Big Three" yards in particular have led this ordering drive throughout the year, winning orders across the Container, Offshore and LNG sectors. A continued demand across these sectors would no doubt be well received by the yards in 2012 however with the turmoil within the European financial markets continuing to look like it will restrict owners access to financing, it will likely be some time before the forward picture for 2012 can be established. It is well known that the yards in China have faced a far more challenging year, with the beginning of the year in particular being especially quiet. Fortunately for the yards, activity has picked up a little during the second half of the year, at least amongst the major State and Private yards, with some ordering again beginning to take place in the Dry Bulk sector. This being said however, there still remains a large amount of 2013 capacity available amongst the majority of the yards and how they attempt to fill this will remain an interesting story going forward into 2012, especially given the challenges that potential owners will have face, as alluded to above" said Clarkson Hellas. In a separate report, Piraeus-based shipbroker Golden Destiny, said that November showed a silent ordering momentum with the offshore business booming, while the year seems to end with weaker levels of contracting activity in the bulk carrier and tanker segment from 2010 and a renewed ordering interest in the LNG, container and offshore vessels. "However, the second week of December closed with very firm newbuilding appetite for bulk carriers and tankers and a record newbuilding activity not seen since the beginning of November, showing a 288% remarkable weekly increase for 66 fresh orders reported worldwide at a total deadweight of 3,910,000 tons.The total invested capital is estimated to be in excess of $2,1 billion with 53% of the total number of reported at an undisclosed contract price. Bulk carriers are in the first rankings by holding 29% of the total contracting activity. Offshore vessels are again on the spotlight and tankers to follow by grasping 35% and 23% respectively of the total number of units ordered. At similar week in 2010, the ordering momentum was 120% higher with 99 total bulk carriers' contracts being recorded and only 4 offshore vessels" said Golden Destiny. Detailing the market activity, the shipbroker said that "in the bulk carrier segment, notable order of the week has been the placement of a capesize order by Greek player, Polembros Shipping, for two 206,000 units at Shanghai Waigaoqiao for $53 mil each with delivery in 2013. Polembros signed an original two 206,000dwt vessels order at SWS in August this year. Furthermore, market rumors suggested that Minerva Maritime may have ordered two 176,000 dwt units from the same yard at $43 mil each, but the order has been denied by the owner. An order has also been revealed in the kamsarmax segment by a Chinese player, Qingdao Da Tong International at a domestic yard, Jinling, for three 82,000dwt units at an undisclosed contract price with delivery in 2013. Furthermore, China's Shanghai Waigaoqiao has won its first kamsarmax orders by Singapore based player related to Chinese steel mill Rizhao Steel for two 82,000dwt newbuildings, plus two options, for delivery in 2013. Sources reveal that the owner is paying around $30,5 mil each for the units. In the handysize segment, Arklow Shipping of Ireland, which is specialized in mini bulk carriers, made a step forward by ordering two 35,000dwt units from Daesun with delivery in 2013 at a price of region $25,5 mil each. In addition, Pyrsos Management of Greece has placed an order for six handysize unit of 37,000dwt in Jinling of China for delivery in 2013-2014" said Golden Destiny. It went on to mention that in the tanker segment, "Tomasos Brothers of Greece has placed a order for four product carrier units of 37,000 dwt at Chinese yard, Guangzhou, for $36 mil with delivery in 2013-2014. In the crude tanker segment, South Korean shipbuilder has won a shuttle tanker order from Knutsen NYK Offshore Tankers for a 112,000dwt, DP2-class vessel for delivery in 1h 2014 to service a long term charter with Exxon Mobil. Notable order of the week has been the announcement from China Rongsheng Heavy Industries for receiving a ten plus ten 157,000 dwt suezmax tankers order from Global Union Shipping with delivery the year end of 2013 and 2014 with a total estimated cost around $1,2 billion" said the report. Similarly, "in the gas tanker segment, Maran Gas Maritime, the gas carrier arm of the Greece based Angelicoussis Shipping Group, has exercised its options with Hyundai Heavy Industries for two more LNG units at $200 mil per vessel for delivery in December 2014 and April 2015. Maran had also ordered five similar sized LNG carriers from another South Korean shipyard, Daewoo Shipbuilding. The two South Korean shipyards, DSME and HHI, had signed a letter of intent in June 2011 to build eight gas carriers for Maran Gas, including an option for four more units, at an expected cost of $1,6 billion. Furthermore, rumors have been circulated in the market that Greek owner Dynacom has converted its VLCC newbuildings into LNG carriers, but this movement has not been confirmed by the owners. It has been revealed that the owner is under discussions with Hyundai Heavy Industries to swap one of its VLCCs on order for a LNG unit, but no agreement has been reached yet. In the container segment, China Shipping Container Lines has declared options for four post panamax containerships of 10,000 TEU, from an earlier order placed in October for eight similar units, as an order split equally between two Chinese yards, Dalian Shipbuilding Industry and Hudong Zhonghua. Additionally, Israel based Ofer Brother is behind a large panamax order for two 6,600 TEU ships for delivery starting in 2013 at China's Jiangsu Rongsheng Heavy Industries, the order is said to have been placed some time ago and now came to light" concluded Golden Destiny.