[100719.EN.SEA] Newbuild Cargo Vessel Orders Down Across All Segments, Including Box Ships

ORDERS for new containerships fell 49 per cent year on year in the first half of 2019, following a similar downwards trend for orders for other newbuild cargo vessels, according to VesselsValue.

Of the 48 box ships that were ordered, 28 were by South Korea, leading the container newbuild market and "vastly improving on their two orders from the first half of 2018," said VesselsValue's analyst Olivia Watkins reported Hellenic Shipping News.

South Korea's Sinokor ordered 16 Feedermaxes (1,100 TEU, 2020) from Chinese shipyards and four Handy containerships (1,800 TEU, 2020) from South Korea's second biggest shipyard, Hyundai Mipo. The Sinokor orders account for 42 per cent of all container vessels ordered so far this year.

The bulker vessel segment saw newbuild orders drop 73 per cent in the first six months of the year when compared to the same period in 2018.

The most popular size to order has been panamaxes with an "interesting" order placed by Klaveness Combination carriers for two panamax caustic/bauxite combination carriers (CABU) of 83,600 dwt (2020, Jiangsu New Yangzijiang). These newbuilds will raise the global fleet to a total of 19 caustic soda/bulk carriers, of which 17 are owned by Klaveness.

In spite of the capesize sector suffering the low earnings earlier this year, Cosco bulk placed 13 orders for 208,000-dwt vessels at Cosco Shipping HI, with each vessel priced at US$54 million. In comparison to the 45 orders placed this time last year for capesizes, the 13 seems minimal.

Total tanker newbuild orders declined 47 per cent year on year in the first half of 2019.

Most orders were placed by Greece and Singapore. The Greeks have been ordering any tanker size ranging from very large crude carriers (VLCCs) down to medium range 2 (MR2s) with 90 per cent of the orders received by South Korean shipyards. Eastern Pacific ordered four option large range 2s (LR2s) of 110,000 dwt (2021, New Times Shipbuilding) with each costing $48 million.

Out of the 33 MR2 orders placed since the start of the year, 23 orders were received by Hyundai Mipo, equivalent to 70 per cent of all newbuild orders.

Year to date VLCC orders fell 60 per cent compared to the same period last year, despite having a "good winter for rates".

Liquefied natural gas (LNG) newbuild orders fell 39 per cent in the first half of this year.

Greeks led the way with orders placed. Since January, Maran Gas Maritime has ordered five vessels (174,000 cubic metres, 2021, Daewoo Shipbuilding & Marine Engineering).

This year the total number of liquefied petroleum gas (LPG) newbuild orders plummeted 73 per cent year to date compared to 2018, with only six orders.

Mitsui and Co ordered a very large gas carrier (VLGC) LPG (84,600 cbm, 2020, Hyundai Heavy Industries) in January. A significant uptick in rates throughout the spring months culminated in KSS Line placing an order of one option VLGC LPG (86,000 cbm, 2021, HHI) for $76 million in the middle of the year.

Source : HKSG.