Shipbuilding

 

Email to a friend Email to a friend Printable version Printable version
16/8/2012

SwissMarine & Iolcos Hellenic place bulker orders


Active dry bulk newbuilding market this week, with all together 10 ships reported. The entire collection of bulkers was ordered at three Chinese shipyards. Despite of the encouraging weekly report, the newbuilding market is not showing any signs of improvement, the competition for any contract is fierce. Some of the major yards have taken measures in reducing the number of shifts, and reducing the number of subcontractors.
ACTIVITY LEVEL
Tankers Dry Bulkers Others
Low Active Low
Average Far Eastern Prices
PRICES
PRICES (mill usd) This
week		 Last
week		 Low
2012		 High
2012
VLCC 300'dwt USD 90.0 m USD 90.0 m 90.0 97.0
Suezmax 150'dwt USD 58.0 m USD 58.0 m 58.0 62.0
Aframax 110'dwt USD 47.0 m USD 47.0 m 47.0 52.0
Product 47'dwt USD 33.0 m USD 33.0 m 33.0 36.0
Capesize 180'dwt USD 47.0 m USD 47.0 m 47.0 50.0
Panamax 76'dwt USD 27.5 m USD 27.5 m 27.5 30.0
Handymax 56'dwt USD 26.5 m USD 26.5 m 26.5 28.0
Prices are based on payment terms 40/60
NEWBUILDING CONTRACTS
Type No Size Yard Owner Del Mill$ Comm
BC 6 43500 dwt Qingshan TMS 2014-2015
BC 2 64000 dwt Jinling Swiss Marine 2013
BC 2 75500 dwt Hudong Iolcos Hellenic 2013

TANKERS

CHARTERING - Crude
With the appearance of late August stems activity in the VLCC market increased. Although owners tried hard to force rates upwards, charterers successfully sidestepped these efforts by fixing ‘weaker’ candidates such as vessels ex DD, with limited approvals, or older units, etc. One would believe that fewer such vessels would be around, but the position list was more than ample, and thus, charterers saw little need to change their approach. The WAF Suezmax market remained quiet with few requirements emerging so far this week. Rate levels in this area have bottomed out, and an adequate supply of tonnage will most likely maintain rates at their current levels. For Suezmaxes in the Med/Bsea the market was also slow, and with most August cargoes now covered we would expect rates to remain stable for the balance of the week. There were no significant rate changes for Nsea and Baltic Aframaxes, and rates are likely to languish at current low levels due to a surplus of available tonnage for cargoes being quoted. Even though the Med/Bsea Aframax market experienced a bit more activity last week, this was, unfortunately for owners, not enough to trigger any recovery in rates; the market remained as low as ws80 for fixtures concluded in both areas. For Aframaxes trading in the Caribs the market was also slow, and with the arrival of more tonnage in the area, rates declined by about 5/7.5 ws points during the last week.
CHARTERING - Product
The Continent market continues to pick up steam and is now firmer at ws125 for UKC/USAC basis 37kt. Whilst it’s hard to shrug off the current bullish sentiment, we expect the rally to be somewhat short lived as more vessels will be redirected to the Continent from a USAC position as the backhaul leg is soft. Activity on the larger ships is decent but the LR1s have not moved in terms of freight rates. Recent fixtures are being done at ws100 for Baltic/USAC basis 60kt, however should the MRs firm further it could create additional interest in the LR1s and potentially firm rates slightly. Smaller ships are stable for the cross-Continent trade. Handysize vessels are fixing ws125 bss 30kt with some potential for firming and Flexis are stable at ws170 bss 22kt. There isn’t much positive to say about the backhaul market; it’s still looking soft at around ws65 bss 38kt USG/UKC-Med. The softening trend we mentioned last week followed in to this week. LR2s are where we have seen the biggest drop by almost ws5 points and LR1s fixtures are being confirmed at ws117.5 level for voyage MEG to Far East destination, while LR2s are being done at ws102.5. The position list is building up and we expect a further drop in the rates. There are still less interest for moving cargoes direction Europe, however we have seen some increase in moving cargoes to USAC, but rates also here are softening. MRs in the East has stabilized around ws121.5 level for Singapore/Far East discharge basis 30,000 mt.
ACTIVITY LEVEL
VLCC Suezmax Aframax P. E. of Suez P. W. of Suez
Stable Slow Soft Soft Firmer
RATES
DIRTY (Spot WS) This
week		 Last
week		 Low
2012		 High
2012
MEG / West VLCC 24.0 24.0 22.0 45.0
MEG / Japan VLCC 36.0 37.5 34.0 70.0
MEG / Singapore 260,000 38.0 37.5 34.0 72.5
WAF / USG 260,000 41.5 41.5 41.5 70.0
WAF / USAC 130,000 57.5 57.5 57.5 97.5
Sidi Kerir / W Me 135,000 60.0 60.0 60.0 110.0
N. Afr / Euromed 80,000 80.0 80.0 80.0 127.5
UK / Cont 80,000 85.0 85.0 82.5 110.0
Caribs / USG 70,000 90.0 95.0 10.0 140.0
CLEAN (Spot WS)
MEG / Japan 75,000 102.5 105.0 80.0 107.5
MEG / Japan 55,000 117.5 122.5 97.5 132.5
MEG / Japan 30,000 122.5 125.0 105.0 130.0
Singapore / Japan 30,000 122.5 125.0 115.0 130.0
Baltic T/A 60,000 100.0 105.0 92.5 135.0
UKC-Med / States 37,000 125.0 102.5 90.0 190.0
Caribs / USNH 38,000 100.0 100.0 100.0 185.0
1 YEAR T/C (usd/day) (theoretical)
VLCC (modern) 19,000 19,000 17,000 22,000
Suezmax (modern) 16,000 16,000 15,000 16,500
Aframax (modern) 12,000 12,000 12,000 13,500
LR2 105,000 13,500 13,500 13,500 13,750
LR1 80,000 12,500 13,250 12,500 13,500
MR 47,000 13,000 12,500 12,500 13,750
VLCCs fixed all areas last week:  41 previous week:  35
VLCCs avail. in MEG next 30 days:  95 last week:  93
(incl. vessels on subjects excl Tankers UK and Frontline)


SALE AND PURCHASE
Vessel Size Built Buyer Price Comm.
Samho Topaz 5 646 2008 Undisclosed 7,45
Samho Amber 5 631 2008 Undisclosed 8,40

DRY BULK

CHARTERING - Handy
Last week, again slow activity and number of holidays in different countries which adversely affected the market. The value of voyages from USG to Continent or Med have gone further down, and now are close to the level of USD 10k/day. You can get premium for dirty cargoes and then price could go up to 13k daily. The tonnage would get the same, around USD 13k hire for the ECSA/FE employments. No period activity. The Pacific market falling and remains quiet. Indo-India rounds now fixed at USD 5k basis south China. Nopac rounds now fixed at APS at USD 7k + BB 250k. Indian iron ore remain quiet and not much cargoes seen on WCI and ECI. WCI rates around USD 7k and ECI rates around USD 5k. RBCT rounds fixed on APS at USD 8k + BB 250k. Short period activity was negligent and rates were around USD 9500.
CHARTERING - Panamax
No radical changes in the overall low activity and volumes following the successful Olympics in London. However, some fresh requirements from USG injected a feeling of balance in the Atlantic market. Rounds concluded in the 6000 range, and takers show interest to take tonnage for 2 legs or more in the 7000’s. Fronthaul is limited but seems on the rise with levels in the mid teens. Lack of activity and a growing list of open positions maintain the negative trend in a sluggish Eastern Hemisphere. USD 6000 or worse obtainable for Owners mid-week. The period market is suffering from takers studying a non-moving low and flat forward curve with newbuildings still pouring out of the yards. All above combined with holiday seasons in Europe gives room for significant upside in activity if not the levels.
CHARTERING - Capesize
Unprecedented lows are reached as average daily earnings now stand at USD 3k - and no immediate recovery is expected. In Far East, a considerable and growing tonnage surplus has resulted in actual net income on the main trade West Australia/China in many cases being USD +/- 0,-. In Atlantic, Colombian rail workers on strike has kept coal trading at a low - and owners have had to accept a 20% cut w-o-w in fronthaul levels to come in at USD 18,250. On-going worries on world economy, industrial slowdown and a spiralling FFA market have so far brought short period to a minimum and numbers down some 10% over the last week, with present value being around USD 8500 for good modern units basis 4-7 months.
ACTIVITY LEVEL
Capesize Panamax Handysize
Low Weak Low
RATES
CAPESIZE (usd/day, usd/tonne) This
week		 Last
week		 Low
2012		 High
2012
TCT Cont/Far East (172' dwt) 18,250 21,300 18,250 43,000
Tubarao / R.dam (Iron ore) 6.90 7.17 6.90 12.70
Richards Bay/R.dam 6.00 6.10 6.00 11.00
PANAMAX (usd/day, usd/tonne)
Transatlantic RV 5,800 6,050 4,250 16,400
TCT Cont / F. East 15,500 15,550 13,950 23,900
TCT F. East / Cont       2,900
TCT F. East RV 5,800 6,300 4,950 12,300
Murmansk b.13-ARA 15/25,000 sc 7.05 7.05 6.95 10.15
Murmansk b.13-L.pool 15/25,000 sc 7.80 7.80 7.70 11.20
HANDYSIZE (usd/day)
Atlantic RV 8,000 9,750 5,000 17,000
Pacific RV 6,250 7,000 4,180 11,725
TCT Cont / F. East 19,000 20,500 11,500 24,150
1 YEAR T/C (usd/day)
Capesize 150,000 dwt 8,000 8,400 8,000 15,000
Capesize 170,000 dwt 9,300 9,750 9,300 17,000
Panamax 75,000 dwt 9,200 9,000 9,000 12,000
Handysize 53,000 dwt 9,000 9,500 9,000 12,250
Baltic Dry Index (BDI): This Week: 728 Last Week: 812


SALE AND PURCHASE
Vessel Size Built Buyer Price Comm.
China Act 151 688 1995 Courage Marine 6,65
2 x YZJ Resales 34 000 2012 Undisclosed 19,50

GAS

CHARTERING
Due to vessels being delayed in Brazil in particular, Charterers in the Atlantic basin are generally struggling to find candidates on their dates, so the situation is even tighter now compared to last week. In the East the activity in the VLGC spot market have slowed down somewhat this week, with Charterers focusing on the final August cargoes with a fairly short tonnage list. A few fixtures have been concluded though, absorbing more-or-less all the remaining candidates. The result of this has been a further increase on the Baltic VLGC index, where the reference voyage is assessed in the mid/high 70’s. August spot cargoes in the MEG are now all probably done, but the overhang of vessels to the September line-up is very limited compared to previous months. We expect the market to continue with its currently firm levels and activity expected to pick-up further next week after acceptances are out.
ACTIVITY LEVEL
COASTER 15-23,000 cbm 82,000 cbm
Slow Moderate Moderate
RATES
SPOT MARKET (usd/month***) This
week		 Last
week		 Low
 High
82.000 cbm / FR 1,550,000 1,465,000 185,000 1,550,000
57.000 cbm / FR 1,050,000 1,050,000 725,000 1,050,000
35.600 cbm / FR 800,000 800,000 750,000 875,000
20.000 cbm / SR* 860,000 860,000 740,000 860,000
10.000 cbm ETH** 610,000 610,000 570,000 620,000
6.500 cbm / SR 440,000 440,000 435,000 520,000
COASTER Europe 190,000 200,000 190,000 345,000
COASTER Asia 235,000 235,000 235,000 240,000
* 20,000 cbm s/r reflects average spot market, LPG and Petchems (segment 15,000 / 23,000 cbm)
** 10,000 cbm eth reflects average spot market, Petchems and LPG (segment 8,200 / 12,500 cbm)
*** Excl. waiting time, if any


LNG
SPOT MARKET (usd/day) This
week		 Last
week		 Low
 High
East of Suez 138-145'cbm 130,000 128,000 105,000 150,000
West of Suez 138-145'cbm 134,000 132,000 110,000 152,000
1 yr TC 138-145'cbm 155,000 155,000 148,000 165,000


LPG/FOB prices (usd/tonne) Propane Butane ISO
FOB North Sea / ANSI 764.00 710.50  
Saudi Arabia / CP 775.00 775.00  
MT Belvieu (US Gulf) 493.65 665.91 756.70
Sonatrach : Bethioua 765.00 760.00  

Fearnleys Weekly

Shipbuilding News

SinOceanic Shipping ASA has entered into a contract with Jinhai Heavy Industries, China, to build 10 x 8800 TEU state-of-the art super eco containerships for delivery from mid 2015. Upon delivery, all vessels will enter into long term, fixed charter parties, a company press release reads.
High contracting activity in the dry bulk segment continues also this week, with totally 18 ship orders. This includes the order from Eitzen Eco Bulk for up 9 handysize bulk carriers at the private owned Yangzhou shipyard in China. Also Oldendorff is taking advantage of low shipbuilding prices to build up its fleet, latest with declared options for further 2 handysize bulk carriers at Samjin.
Paragon Shipping has placed an order for two 4,800 TEU containerships with Zhejiang Ouhua, China to be delivered in 2014, according to the latest Intermodal Market Report. The price was not disclosed.
In addition to the announcement covering three newbuilding units made by Ultrabulk on March 19th, Ultrabulk now confirms having added five further units to its long term fleet.The new units are one additional 61,000tdw Supramax bulker to be built at a Japanese yardand scheduled for delivery 2016, joined by another 81,000tdw Kamsarmax bulker for delivery in 2015.
More Articles




Market Reports

Search

Enter Keyword
Filter by Category
 


News

Markets

Opinion
The Wire Shipbuilding Shipping News Commodities Market Reports Analysis
Dry Cargo Ports Containers -Oil Currencies Interviews
Tankers Environment Finance & Economy -Metals Dry
Gas Insurance -Food Wet


Terms of Use