Greeks quiet on newbuilding front

Greek shipowners have continued their stance of wait-and-see approach regarding newbuilding orders during March according to the latest report by shipbroker George Moundreas & Co. Only 17 vessels were contracted in March by Greek interests, representing an estimated value of $424 million, a sum even lower than the previous month, when orders? value stood at $517 million. These figures pale into insignificance when compared to the frenetic pace of investment activity in newbuildings during the course of 2007, when an average of 30-35 vessels and sometimes even more were contracted on a monthly basis, with values exceeding $2 billion per month.

The latest month?s report highlights another significant development, since it?s the first time in months that no dry bulk carrier was ordered. According to Moundreas, the only known order involves 10 multipurpose vessels of 5,500-dwt each. But it wasn?t included in the report, because of the unknown identity of the buyer. The only orders worth mentioning concern Naftomar?s latest venture in the LPG segment of the market. The company, mainly active in the cement transportation trade, placed an order with Korea?s STX Shipyards for four LPG carriers of 9,000 m3 each, at an estimated price of $45 million, which the total investment at $180 million.

Seaworld was another active investor, ordering 4+1 product tankers of 50,000-dwt each at SPP. The vessels have an expected delivery during the years 2009/2010 and represent an investment of $204 million.

One of the reasons for this development in the market is considered to be the shortage of available berths in the largest and most popular shipyards around the world, which means longer delivery dates of 2011 and, in some cases, 2012. Another important reason is also the global credit crunch, which has made many banks stricter in approving loan credit facilities, while those approved come at a higher price for ship owners.