Fearnleys: Newbuilding Prices Stabilized

Newbuilding prices seems to have stabilized somewhat. A shortfall and bleak outlook for offshore newbuilding orders forces yards to look harder at pure shipbuilding activity, shifting their exposure to their core business.

Although too early to say, prices might be taking a breather after the hefty contracting activity in 2nd half of 2013, going sideways for the rest of the year. On the other side, there is an impressive list of ships reported this week, many of which are options declared by owners who signed contracts back in 2013.

ACTIVITY LEVEL Tankers Dry Bulkers Others Stable Active Slower

Average Far Eastern Prices

PRICES

PRICES (mill usd) This week Last week Low 2014 High 2014   VLCC 300’dwt USD 102.0 m USD 102.0 m 96.0 102.0   Suezmax 150’dwt USD 68.0 m USD 68.0 m 64.0 68.0   Aframax 110’dwt USD 54.0 m USD 54.0 m 52.0 54.0   Product 50’dwt USD 37.5 m USD 37.5 m 36.0 37.5   Capesize 180’dwt USD 56.0 m USD 56.0 m 55.0 56.0   Panamax 82’dwt USD 31.5 m USD 31.5 m 30.0 31.5   Handymax 64’dwt USD 28.0 m USD 28.0 m 28.0 28.0 Prices are based on payment terms 40/60

NEWBUILDING CONTRACTS

Type No Size Yard Owner Del Mill$ Comm BC 1 33000 dwt Shin Kurushima Sesoda 2016 BC 3 38500 dwt Huatai Interlink 2016 BC 3 37300 dwt Nanjing Dongze Nordic Hamburg 2015 options declared BC 2 82000 dwt YZJ T. Klaveness 2014/2017 options declared BC 1 80500 dwt Zhejiang Ouhua T. Klaveness 2017 BC 2 84000 dwt Sasebo Santoku 2016 CO 2 10000 teu Jiangsu Yangzi Xinfu Seaspan 2016 100 options declared CO 2 10000 teu YZJ Seaspan 2016 100 options declared Chem 5+5 25000 dwt Dingheng Genmar 2016 42/43 LPG 1 83000 cbm MHI Astomos 2016 MT 4 112700 dwt DSME Mangalia Tsakos 2016-2017 51

Fearnleys, April 3, 2014; Image: HHI