Ship owners keep enquiring for newbuilding vessels, but actual contracting has slowed down ahead of the Holiday season. According to the latest weekly report from Clarkson Hellas, "as we enter December and the final few weeks of the year, one could be forgiven for thinking that the shipbuilding market would begin to quieten down. Though enquiry does remain a little subdued, the week has seen further reports of new business being concluded, with vessels being ordered across a wide spectrum of sectors and this should provide those (yards) still aiming to hit their yearly order targets a little optimism and potential festive cheer.
In China, the yards continue to remain hungry for business and further ordering has been reported this week in both the tanker and dry bulk sectors. We have seen reports that Cosco Dalian has added to their initial order from last month (at Guangzhou Longxue) by placing a further order for 2+2 x 300,000dwt VLCCs, this time placed with Dalian Shipyard (DSIC). Again pricing is understood to sit in the low/mid USD 80s Mill and deliveries will be from 2H 2014. In other sectors, Precious Shipping is understood to have placed an order at Shanhaiguan shipyard for 2 option 1 x 20,000dwt Cement Carriers. This order is understood to have been signed at a price of USD 24.18 Mill per vessel and delivery is scheduled from 2014 onwards" it noted.
"In Japan, the dry bulk market continues to remain the most oft‐discussed sector with many of the yards understood to be in close discussions for their latest designs ‐ these discussions are understood to be taking place not only in the small and mid‐sized sectors, but up amongst capesizes too. With the yen having weakened against the dollar by over 6% since September, there is certainly some cause for cautious optimism. If this depreciation can continue, then we expect to see a more concerted effort from the yards to compete for new enquiries and will make the next few months very interesting indeed" Clarkson Hellas concluded.
Meanwhile, Piraeus-based shipbroker Golden Destiny noted in a separate report that "overall, the past week ended with 40 fresh order reported on a global basis, for a total deadweight tonnage of 1,572,600 tons, an increase of 33% over the previous week, with the biggest rise coming from the tanker segment. During the same week of 2011, the newbuilding business was standing at 65% higher levels than today with 66 newbuilding orders, 15 for bulkers, 15 for tankers, 3 gas tankers, 5 containers, 1 liner and 23 special projects. In terms of invested capital, the total amount of money invested is estimated at region more than $1,56 bn with 9 orders reported at an undisclosed contract price, said the shipbroker. The offshore and tanker segment appear the most overweight by grasping 38% each of the total amount invested in newbuilding business.
"In the bulk carrier segment, Ariston Navigation of Greece is said to have gove to CSC Jinling Shipyard of China for ordering a seventh Seahorse 35,000 dwt design, including an option for three more. Thailand’s Precious Shipping has placed an order for two cement carriers of 20,000dwt at Shanhaiguan New Shipbuilding for delivery in 2014 at a cost of $24,18mil each. The contract includes an option for one more vessel that would need to be declared by the end of March 2013.
In the tanker segment, D’ AMICO of Italy is on the plans of exercising its option for two MR product tanker vessels in the forthcoming week following its previous orders of four units earlier this year. The company is going to raise equity to fund the newbuildings with expectations to raise about $83mil through the first part of the process. Ceres Hellenic of Greece teamed up with JP Morgan decided to exercise its option for four more 51,000dwt MR product vessels in SPP Shipbuilding of South Korea, from its initial order placed in May. Ceres and JP Morgan have a close relationship through utilization of the Bank’s Global Maritime Investment Fund for private equity requirements. Deliveries are scheduled throughout 2014, but no employment is confirmed. In addition, SPP Shipbuilding of South Korea has won an order from an undisclosed European owner for up to 14 new MR tankers of 50,300dwt at about $33,5mil each with delivery in the third quarter of 2014 to the end of 2015. SPP said: “Additional contracts are expected by the end of this year, since options from previous contracts still left and now we are in talks with shipowners.”
Energy groups are also on the run up of newbuilding plans. BP is expecting to confirm where it would order up to 15 new tankers, up to five suezmaxes and up to ten aframaxes. South Korean yards, Samsung and STX Shipbuilding appear to be the strongest competitors with high specifications demanded by BP. Total France is also in discussions with shipyards for aframax newbuildings that it wishes to secure charter agreements.
In the gas tanker segment, China National Offshore Oil Corporation (CNOOC), one of the largest companies in China is planning to order 14 medium and small sized LNG vessels. Their plans are for four 30,000 cu m LNG vessels and ten 10,000 cum LNG vessels for construction in several medium sized shipyards in China, including Sinopacific Shipbuilding and AVIC Dingheng Shipbuilding" Golden Destiny said.
It added that "in the container tanker segment, further to Jones Act LNG powered containerships being ordered by US based owner Tote, Matson Navigation of US has revealed a project to build a pair of medium size containerships in US at a price of $200mil each. The vessels’ size is understood to be in the region of 2,600 TEU with delivery schedule in the next three to five years, 2015-2017. In the post panamax segment, Seaspan is planning to order four 10,000 TEU boxships at privately owned Yangzijiang Shipbuilding of China with Seaspan boss Gerry Wang saying that the newbuilding cost is likely to be around $90mil each, reflecting very high vessel specifications.
In the offshore segment, Chinese shipbuilder Yangzijiang confirmed that its yard in Jiangyin, Jiangsu, has won an order to construct a self-elevating jack-up rig for the Mena Offshore Investments unit Explorer Ltd. The rig would be based on a Letourneau Super 116E Class design at a value of $170M, including an option of one additional, identical rig. Jiangsu Yangzijiang Offshore Engineering will execute the order, which will be delivered by 2Q15. Executive chairman Ren Yuanlin noted that with this order, Yangzijiang will officially join the offshore oil and gas sector: "We identified offshore as a growing market and have worked hard on adding that exposure to our portfolio for years. “Our perseverance, dedication and commitment have finally paid off with the successful entering of the first rig-building agreement. We will certainly employ our cost and project management expertise into building a track record for offshore products.” Yangzijiang shipbuilding is said also to have been signed a letter of intent with SSP Offshore, a Texas based offshore owner, for the design and construction engineering of a prototype FPSO called SSP. SSP can function as a floating platform storage and offloading ship and can also drill for oil and gas. In addition, China’s Jinhai HI secured its first newbuilding contract in the offshore segment for a self elevating offshore work platform from an undisclosed contractor. The work platform will have 90m legs and an overall length of 78.8m" the report concluded.
"In Japan, the dry bulk market continues to remain the most oft‐discussed sector with many of the yards understood to be in close discussions for their latest designs ‐ these discussions are understood to be taking place not only in the small and mid‐sized sectors, but up amongst capesizes too. With the yen having weakened against the dollar by over 6% since September, there is certainly some cause for cautious optimism. If this depreciation can continue, then we expect to see a more concerted effort from the yards to compete for new enquiries and will make the next few months very interesting indeed" Clarkson Hellas concluded.
Meanwhile, Piraeus-based shipbroker Golden Destiny noted in a separate report that "overall, the past week ended with 40 fresh order reported on a global basis, for a total deadweight tonnage of 1,572,600 tons, an increase of 33% over the previous week, with the biggest rise coming from the tanker segment. During the same week of 2011, the newbuilding business was standing at 65% higher levels than today with 66 newbuilding orders, 15 for bulkers, 15 for tankers, 3 gas tankers, 5 containers, 1 liner and 23 special projects. In terms of invested capital, the total amount of money invested is estimated at region more than $1,56 bn with 9 orders reported at an undisclosed contract price, said the shipbroker. The offshore and tanker segment appear the most overweight by grasping 38% each of the total amount invested in newbuilding business.
"In the bulk carrier segment, Ariston Navigation of Greece is said to have gove to CSC Jinling Shipyard of China for ordering a seventh Seahorse 35,000 dwt design, including an option for three more. Thailand’s Precious Shipping has placed an order for two cement carriers of 20,000dwt at Shanhaiguan New Shipbuilding for delivery in 2014 at a cost of $24,18mil each. The contract includes an option for one more vessel that would need to be declared by the end of March 2013.
In the tanker segment, D’ AMICO of Italy is on the plans of exercising its option for two MR product tanker vessels in the forthcoming week following its previous orders of four units earlier this year. The company is going to raise equity to fund the newbuildings with expectations to raise about $83mil through the first part of the process. Ceres Hellenic of Greece teamed up with JP Morgan decided to exercise its option for four more 51,000dwt MR product vessels in SPP Shipbuilding of South Korea, from its initial order placed in May. Ceres and JP Morgan have a close relationship through utilization of the Bank’s Global Maritime Investment Fund for private equity requirements. Deliveries are scheduled throughout 2014, but no employment is confirmed. In addition, SPP Shipbuilding of South Korea has won an order from an undisclosed European owner for up to 14 new MR tankers of 50,300dwt at about $33,5mil each with delivery in the third quarter of 2014 to the end of 2015. SPP said: “Additional contracts are expected by the end of this year, since options from previous contracts still left and now we are in talks with shipowners.”
Energy groups are also on the run up of newbuilding plans. BP is expecting to confirm where it would order up to 15 new tankers, up to five suezmaxes and up to ten aframaxes. South Korean yards, Samsung and STX Shipbuilding appear to be the strongest competitors with high specifications demanded by BP. Total France is also in discussions with shipyards for aframax newbuildings that it wishes to secure charter agreements.
In the gas tanker segment, China National Offshore Oil Corporation (CNOOC), one of the largest companies in China is planning to order 14 medium and small sized LNG vessels. Their plans are for four 30,000 cu m LNG vessels and ten 10,000 cum LNG vessels for construction in several medium sized shipyards in China, including Sinopacific Shipbuilding and AVIC Dingheng Shipbuilding" Golden Destiny said.
It added that "in the container tanker segment, further to Jones Act LNG powered containerships being ordered by US based owner Tote, Matson Navigation of US has revealed a project to build a pair of medium size containerships in US at a price of $200mil each. The vessels’ size is understood to be in the region of 2,600 TEU with delivery schedule in the next three to five years, 2015-2017. In the post panamax segment, Seaspan is planning to order four 10,000 TEU boxships at privately owned Yangzijiang Shipbuilding of China with Seaspan boss Gerry Wang saying that the newbuilding cost is likely to be around $90mil each, reflecting very high vessel specifications.
In the offshore segment, Chinese shipbuilder Yangzijiang confirmed that its yard in Jiangyin, Jiangsu, has won an order to construct a self-elevating jack-up rig for the Mena Offshore Investments unit Explorer Ltd. The rig would be based on a Letourneau Super 116E Class design at a value of $170M, including an option of one additional, identical rig. Jiangsu Yangzijiang Offshore Engineering will execute the order, which will be delivered by 2Q15. Executive chairman Ren Yuanlin noted that with this order, Yangzijiang will officially join the offshore oil and gas sector: "We identified offshore as a growing market and have worked hard on adding that exposure to our portfolio for years. “Our perseverance, dedication and commitment have finally paid off with the successful entering of the first rig-building agreement. We will certainly employ our cost and project management expertise into building a track record for offshore products.” Yangzijiang shipbuilding is said also to have been signed a letter of intent with SSP Offshore, a Texas based offshore owner, for the design and construction engineering of a prototype FPSO called SSP. SSP can function as a floating platform storage and offloading ship and can also drill for oil and gas. In addition, China’s Jinhai HI secured its first newbuilding contract in the offshore segment for a self elevating offshore work platform from an undisclosed contractor. The work platform will have 90m legs and an overall length of 78.8m" the report concluded.