Orders for newbuild vessels have stabilized so far this year, with the outlook for the Supramax sector boosted by better than expected rates, according to consultancy Allied Shipping Research.
The firm states that 2017 has proven to be “more resilient” than previous years with optimism driven by renewed dry bulk activity in the Pacific basin after the end of the Chinese New Year festivities.
“Up till now the year has shown considerably better activity levels in the newbuilding front than what had been seen over the majority of 2016 … new financing structures on offer and considerable price discounts has started to attract the attention of some owners, although they are still relatively few in number,” said George Lazaridis, head of market research and ssset valuations at Allied Shipbroking.
The firm notes that despite activity and fresh inquiries in the Supramax sector remaining low, rates have held off better than expected thanks in part to “positive movements” in Pacific markets while Atlantic trade has suffered.
“The market is no longer facing the same amount of newbuilding delivery pressure as it was … providing as such more stability to the balance in the freight market,” a spokesperson for Allied Shipping Research said.
Photo: Newbuild orders have been better than expected in 2017. Credit: Wikimedia