Greek newbuild orders slow but shipowners taking advantage of resale

By mid-October Greek shipping interests had a confirmed 303 ships on order, research into Greek shipping orderbook by Naftiliaki / Newsfront revealed. The contracted newbuilding projects was likely larger as a handful of the 72 companies believed to have ships on order would not confirm, or more interestingly deny, they had ships inked to be delivered over the next three years.

At the same time, at least three mayor projects were known to be under negotiation, involving up to a dozen more ships.

As drivers of the world shipping industry Greek owners presently control the largest commercial armada ever, which is powering ahead on a strengthening foundation of modern tonnage.

Greeks are major customers of shipyards around the globe and in October 2016 some 33m dwt was on order in China, Japan, South Korea, Finland, Philippines, Romania and Vietnam, worth an estimated $22.6bn to the shipbuilders, with more in the pipeline. By comparison at the same stage of 2010, 127 companies had 698 ships on order of a total 61.2m dwt worth an estimated $55bn.

Continuing the fleet’s diversification, the orderbook included all ship types; VLCC, suezmax, aframax, LNG and LPG carriers, dry bulk carriers, multi-purpose vessels and container ships, drillships, offshore supply vessels and ro-pax units.

At the same time Greeks are leaders in the sale and purchase market as they upgrade and expand their fleets through the purchase of newbuilding re-sales. In 2016 to beginning of November some 23 vessels had been purchased off the berth from VLCCs downwards for delivery in 2016 and 2017.

In the same period the potential Greek orderbook has been stripped of 16 newbuildings which have been sold before, or on, delivery. Another four ships have been sold by the Greek contracting company to another company under the same controlling owner.

This is particularly in the case of companies listed in the US, with interests of 14 of the 32 Greek US quoted companies involved in new ship projects, with 19 VLGC obvious drop-down candidates.

Reflecting the needs of the marketplace plus the demands of the regulators, it is hardly surprising energy carrying ships dominate this orderbook. There are 132 tankers of various types on order, plus 32 LNG carriers and 21 LPG carriers. In the past bulkers have been the vessel of choice, but today there are just 119 on order.

There are 31 container ships, from the maxi to the mini-size,18 offshore supply vessels, three drillships and two vehicle carriers also on the orderbook.

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Greek newbuild orders slow but shipowners taking advantage of resale deals