Fearnleys Weekly - Newbuilding

General comment

Newbuilding activity is firm, with 29 new orders plus 10 options. In the dry bulk segment, the activity is continuing at the same pace as last week. Nissen Kaiun orders ten Kamsarmaxes at the Japanese yards Imabari and Tsuneishi Zosen Shipbuilding, five at each, all Tier II vessels. The Greek tanker company Aegean has returned to Cosco Zhoushan with a debut order in the dry bulk segment containing four kamsarmaxes, with four options. The low market price for VLCC facilitates two large orders this week. HMM orders five VLCCs at DSME, including five optional vessels, while NYK has ordered three VLCCs at Japan Marine United and one unit at Nippon. Despite an increase in the steel prices, we see little change in newbuilding prices.

Activity level

Tankers Dry Bulkers Others
Moderate Stable Low

Prices

Average Far Eastern Prices
PRICES (mill usd) This week Last week Low 2017 High 2017
VLCC 300'dwt 81.00 81.00 81.00 82.00
Suezmax 150'dwt 54.00 54.00 53.00 54.00
Aframax 110'dwt 44.00 44.00 44.00 45.00
Product 50'dwt 33.00 33.00 32.00 33.00
Capesize 180'dwt 44.00 44.00 41.00 44.00
Kamsarmax 82'dwt 25.00 25.00 23.00 25.50
Ultramax 64'dwt 23.00 23.00 21.00 23.00
LNGC 170'cbm - MEGI 184.50 184.50 184.00 184.50

Newbuilng contracts

Type No Size Yard Buyer Del Price Comm
BC 1 20,500 dwt Fujian Southeast Fujian Anda 2019
BC 2 62,000 dwt Cosco Dalian Cosco Shipping 2019 abt. 34 mill USD + 1 option
BC 4 82,000 dwt Cosco Zhoushan Aegean Shipping 2019 + 4 options
BC 10 85,000 dwt Imabari (5) and Tsuneishi Zosen Shipbuilding (5) Nissen Kaiun 2019 / 2020 27 mill USD Tier II
CON 2 11,000 teu Hanjin Heavy HMM 81 mill USD
PC 1 15,000 dwt Fujin Mawei CNAF Haixin Shipping 2019
VLCC 5 300,000 dwt DSME HMM 2019 - abt. 84 mill USD + 5 options
VLCC 4 Japan Marine (3) and Nippon (1) NYK 2019 / 2020