Tanker newbuilding activity in the second quarter of the year is showing signs of slowing down compared to the first quarter, though the market remains ”robust in terms of numbers,” the London-based shipbroker Gibson said in its tanker report.
The first quarter of the year saw the highest tanker newbuilding activity since 2007, but the second quarter has shown a more tentative approach, Gibson says.
However, this aside, newbuilding prices across all sectors have been softening with the fall off in orders from other sectors, particularly dry cargo. Again the emphasis remains focused towards the crude sector with Suezmaxes still very much in vogue, according to Gibson.
Orders for VLCCs placed this year have ranged between USD 90-100 million in price with some owners paying an additional premium for higher specifications.
The price for a newbuild VLCC has fallen by around 5% since last June to around USD 95 million today, considerably lower than the USD 160 million price quoted in January 2008, according to Gibson.
With shipyards forward orderbooks shrinking, pressure remains on builders to further lower their prices with empty slots still available for 2017.
In contrast, secondhand prices have not risen as fast for product carriers but remain firm for crude tankers, particularly for the 15 year old units and despite falling lightweight prices.
The recent strength of the crude tanker market has added around USD 7 million to the value of second-hand VLCCs since the start of the year.
At the other end of the spectrum, there has been a considerable amount of yard re-sale activity since the start of the year, particularly demand for product tankers, with numerous pre-delivery sales of both LR1 s and LR2s at just below newbuilding price.
The summer period is usually a quiet time for tanker ordering on the basis on softening freight rates, Gibson says.
With OPECs recent decision not to step in and make any ”correction” to current crude production output and given pressure on shipyards to lower newbuilding prices, Gibson says it could be interesting to see if a new wave of investment will be forthcoming.
There are certainly a large number of keen market watchers looking for investment opportunities either on newbuild or second-hand and Gibson does not see an immediate end to some more large deals through the remainder of 2015.
Source: Gibson/Tanker Weekly Report