French orders to foreign shipyards

44
between 160,000 and 170,000 dwt, and towards scrapping
older vessels was confirmed.
Since January 1999, 28 ships totalling 4,440,000 dwt have
been delivered and 41 units have been ordered, a total
of 6,674,000 dwt. For the record, in 1998 15 ships, representing
2,256,000 dwt, were delivered and 29 units totalling
4,400,000 dwt were ordered. Age of Capesize vessels
remain remarkably low with relation to other sizes of dry
bulk carriers, averaging 10 years. With regard to total vessels,
37% of the fleet was built after 1993 and fewer than 60
ships that were built before 1979 are still trading today.
Since the beginning of December, we have noted 29 Capesize
dry bulk carrier sales (ships 80,000 dwt and greater) and
one combined carrier sale.
The following chart shows estimated values and price trends,
all concerning vessels fully-classed and in good seaworthiness:
Size in Year where Price in Price in
(dwt) built built (Dec 99) (Dec 98)
150,000 1995 Japan 27-28 23-25
150,000 1990 Far East 20-21 17.5-18.5
165,000 1983 Europe 10-11 9-10
The Panamax market
• Chartering
In early January 1999, the Panamax market was at a low with
Atlantic round voyage rates close to $4,000/day and rates
not exceeding $6,000/day, that fell to around $4,500 in
February. US Gulf/Japan rates of $12.50/tonne were an
all-time record low. Nonetheless, the 1998 scenario was not
repeated and, as of February, strong Asian demand for
American grain brought Atlantic round voyage rates above
32.5 US$/tonne
27.5
22.5
17.5
12.5
7.5
2.5
Jan 96
Mar 96
May 96
Jul 96
Sep 96
Nov 96
Jan 97
Mar 97
$8,000, then up to the $9,000-10,000 range in May. US
Gulf/Japan rates were near $20/tonne during the same
period. After a fall of about 35% on the spot market in
June, a turnaround began during the second half of the
year that benefited from the Capesize market events.
With the boom on for large sized vessels, many charterers
were looking to split their coal cargoes in two (Capesize
rates for Richards Bay/Rotterdam route were almost the
same as Panamax rates at the end of October). Rates in
the Atlantic, however, never exceeded $10,000/day.
The Pacific market did not experience the same fate.
The arrival of 28 newbuildings delivered to Far Eastern
owners, coupled with the influx of ships available on the
market after discharging their grain cargoes, caused
much weakness in the market, with round voyage rates
fluctuating between $5,000 and $7,000 for most of the year.
• The fleet
Sixty-six Panamax, representing 4,628,000 dwt, have
been delivered since January. Forty-four units, for a total
of 2,685,000 dwt were withdrawn from the fleet, a net
increase of 1.9 million dwt. The average age of scrapped
vessels was 24 years. An extremely high number of
newbuilding orders were placed in 1999 for this type of
vessel. More than one hundred contracts, many of which
included options, were signed this year, compared to
only 60 the year before.
The Handysize market
Dry cargo freight rates - Panamax
May 97
Jul 97
Oct 97
Dec 97
• Chartering
Similar to the Panamax market, rates for Handysize vessels
went into free-fall after the autumn of 1998, and
bottomed in January 1999, dropping below the level of
$5,000/day in the Atlantic and approaching $4,000/day
Feb 98
Apr 98
Jun 98
Grain Panamax US Gulf / Japan
Panamax Richards Bay / Le Havre - 70,000 t
Aug 98
Oct 98
Dec 98
Feb 99
Apr 99
Jun 99
Aug 99
Oct 99
Dec 99