LNG carrier newbuilding orders proved the one bright spot for shipyards in October as most other sectors saw the brakes applied to contracting activity, according to a top broker.
Shipowners registered orders for 14 LNG carriers last month, five more than the total seen in September, according to Affinity (Shipping).
"Ordering activity of LNG carriers continued a pace as the market's growth spurred LNG investments," the shipbroker said in its monthly orderbook report.
"There have been 73 orders for newbuildings in the year-to-date, which compares to 31 units ordered in the same period last year."
Affinity said the current LNG orderbook comprises 157 ships with a total of 23.8m-cbm and represents 22.6% of the LNG trading fleet in cubic metre terms.
Bulkers were reported to have experienced a dramatic drop in ordering levels from a high of 49 contracts placed in September to a relatively moderate level of 16 orders in October.
Affinity (Shipping) said the fluctuation in bulker newbuild demand was likely caused by heady newbuilding prices, which have "discouraged owners" from fighting over the remaining shipyard berths.
Among the orders were six newcastlemaxes, four kamsarmaxes and four handysize vessels as well as two supramax newbuildings.
Whilst container freight rates climbed further to record highs during October, Affinity said containership contracting in October "decelerated almost to a halt".
"Containership newbuild orders placed in October totalled 16 ships compared to the multi-year high of 74 ships seen in September, when liner operators and owners raced to stay ahead of rising asset prices,” Affinity (Shipping) said.
There were six orders for containerships within the 2,000-4,000-teu range, two orders in the 1,000-2,000-teu range, and eight orders split equally between the 5,100-8,000-teu and 14,000-16,000-teu ranges.
Affinity (Shipping) said newbuilding orders in October were at their lowest since the corresponding month in 2020, providing a breather for the sector.
"In the year-to-date, the sector saw 435 ships of a total of 5.2m-teu contracted, representing a hefty 540% increase compared to the same period last year," it said.
"The overall containership orderbook now stands at 712 ships with a total of 5.8m-teu, bringing the containership order book as a percentage of the active fleet to 23.5% in teu terms".
Newbuilding activity in the LPG carrier sector "remained subdued" in October since the strong contracting levels experienced from March-May of this year which averaged 18 orders per month.
Just four LPG carriers were ordered in October, up from two in September, both of which were VLGCs.
"Despite the slowdown in LPG ordering activity in recent months, the overall number of LPG carrier orders made in the first ten months of 2021 still represent more than double the total recorded in the same period last year," Affinity (Shipping) said.
The overall LPG orderbook stands at 156 ships with a total capacity of 8.7m-cbm, or 22.4% of the active fleet in cubic metre terms.
Affinity (Shipping) said tanker newbuilding activity during October "remained tepid" as buyers' bearish sentiment lingered due to the current weak earnings environment, the significant vessel oversupply, and concerns over the long-term outlook of oil.
"The number of contracts placed during the month inched lower from nine ships in September to seven last month," Affinity (Shipping) said.
"In the year-to-date, the overall number of orders placed is 171 tankers, with a combined total of 55m-dwt, which is 21% higher compared to the same period last year in number terms."
As of the end of October, the tanker order book stood at 406 ships of 50.5m-dwt, representing 7.5% of the active tanker fleet in tonnage terms.
