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Newbuilding activity quiets down - Allied Shipbroking

Logistic News - Published on Thu, 18 Jan 2018

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Ship owners turned their attention to smaller dry bulk carriers available in the S&P market over the course of the past week, while newbuilding ordering activity was lacklustre. In its latest weekly report, shipbroker Allied Shipbroking said that it was “a quiet week in the Newbuilding market with only a couple of orders to report. In Tankers, Hyundai Mipo Dockyard (HMD) have received an order for one 50,000 DWT MR Product / Chemical Carrier from Clients of Chios Navigation. This single unit will be delivered in 1H 2019 from HMD’s Ulsan facility in Korea. It came to light this week that Anders Utkilens have extended their series of 9,900 DWT Ice Class 1A Chemical Tankers at AVIC Dingheng by declaring an option for two additional units. The duo are set for delivery in 2020 and will be the 3rd and 4th vessels in the series”.

On a similar note, Clarkson Platou Hellas commented that it was “a rather quite week, relative to what we have been seeing of late. The new ordering drive seems to still be there for the Dry Bulk sector, with the healthier track in terms of earnings boosting both interest and sentiment allowing for an ever increasing interest to emerge. On the Tanker side things continue to be sluggish, with few and far between orders being noted, with the bearish sentiment noted in the freight market taking a particularly high toll, especially on the larger crude oil carriers. At the same time this sector seems to have been one of the first to be showing an increase in price levels, which is counter intuitive to the level of buying interest being seen. Despite all this, expectations are for a considerably more active market than what we were seeing last year and in 2016. At the same time, given that we are still in the starting point of the year, many are likely holding back for the time being waiting to get a more firm indication of the overall direction markets will take”.

Meanwhile, in the S&P Market, Allied noted that “on the dry bulk side, the focus seemed to be firmly placed on the smaller size segments this past week, with the vast majority of concluded transactions involving either Supramax or Handysize vessels. These have also been the size segments that had seen relatively softer price increases over the past year and are likely still viewed by many buyers as still being at bargain levels. With earnings still holding firm, we may well see the drive in the secondhand market noted last year, continue on into this year. On the tanker side, things continued to be fairly slow, and activity once again has circulated around the product tanker segments, which to many show better possibilities with regards to their earnings and trade. Things have been generally slow for the larger crude oil carriers, both in terms of activity in the secondhand market as well as in terms of earnings in the freight market, while things are unlikely to change drastically any time soon”, the shipbroker concluded.

In a separate note, VesselsValue said that in the tanker market this week, there has been a slight softening in Afra and LR1 values. Aframax Vega Voyager (104,900 DWT, Nov 2003, Samsung) sold to Dynacom Tankers for USD 10.8 mil, VV value USD 10.91 million. In the dry bulk market, VV said that “following a number of sales there has been a slight firming in modern Panamax tonnage. Panamax Azalea Sky (80,600 DWT, Jun 2012, Daewoo) sold to Eastern Mediterranean Maritime for USD 22.2 mil, VV value USD 20.0 mil. Open Hatch Handy Atlantic Ace (28,700 DWT, Jan 1999, Imabari) sold for USD 4.3 mil, VV vale USD 4.0 mil. A sale of interest; following its arrest in Jamaica. Handy Trading Fabrizia (35,000 DWT, Mar 2011, SPP) sold at auction to Bluefin Marine for USD 10.3 mil, VV vale USD 12.57 mil. Poor condition & out of class”.

Finally, in the container segment, it was “a busier week for container sales has resulted in a very slight firming Handy and Feedermax values. Sub Panamax Constantin S (2,450 TEU, Mar 2006, Naikai Setoda) sold to X-Press Feeders for USD 10.3 mil, VV vale USD 10.87 mil. Feedermax Dolphin Strait (1,118 TEU, Apr 2003, Jinling Shipyard Jiangsu) sold for USD 4.0 mil, VV vale USD 3.11 million”, VV concluded.

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Posted By : Nanda Koijam on Thu, 18 Jan 2018
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