Good morning. In this week’s edition: Asia’s Shipbuilding Surge: How a Handful of Giants Are Reshaping the Industry;  Heavy Lift Vessel Driven Ashore on Taiwan During Typhoon; Hapag-Lloyd drops Asia – Latin America Service from Feb next year

MARITIME HEADLINE

Asia’s Shipbuilding Surge: How a Handful of Giants Are Reshaping the Industry

The Asian shipbuilding market is seeing an extraordinary surge in new orders, driven by only a handful of large Western owners. According to the latest from Clarksons, these orders are bringing shipbuilding prices close to the record highs of 2008, with an average price per newbuild nearing $90 million – almost twice the 10-year average.

Prices are high not only due to demand but also because of the specialized nature of the vessels being ordered. Korean and Chinese yards are seeing strong demand for high-value LNG carriers, while container giants are ordering dual-fuel vessels that command top dollar. These factors, along with inflation and full yard schedules, have created favorable conditions for shipbuilders in Asia to negotiate premium prices.

Today, over half of new tonnage orders come from just 50 top shipowners. Giants like MSC lead the way in container ship orders with over 1.2 million TEU capacity in their pipeline, while QatarEnergy is setting records with the largest-ever LNG newbuild program valued at over $30 billion.

While the biggest players place substantial orders, about 90% of shipowners worldwide are sitting out of the current boom. High costs, long lead times, and uncertainties around new fuel technologies are among the factors deterring smaller owners. Without the same access to capital, they’re finding it challenging to commit to today’s elevated newbuild prices.

With a higher concentration of large players leading the charge in newbuild orders, Asia’s shipbuilders continue to ride the wave of high-demand and high-value orders. But as prices stay elevated, smaller players might seek alternatives or wait for prices to stabilize.

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WORLD MARITIME

-🚨Divers have uncovered 300-year-old onion glass bottles from the famed 1715 Treasure Fleet—a fleet that sank in a hurricane, loaded with Spanish gold, silver, and rare items! Found off Indian River County, these bottles are more than artefacts; they’re glimpses into a treasure lost for centuries, now protected by Florida’s Underwater Archaeological Preserves. History, mystery, and adventure all in one story! Even Hollywood has taken inspiration from this fleet with the documentary The Lost Treasure Fleet of 1715 (2016) and the comedy Fool’s Gold (2008).

-🛟A mysterious tanker, Ceres I, involved in a recent collision in Southeast Asia, is now en route to China under a veil of suspicion! Known as part of the “dark fleet,” this tanker is suspected of moving sanctioned oil while dodging detection! Ceres I collided with Hafnia Nile near Singapore, sparking a fire! Fortunately, no casualties occurred. After the crash, it switched off its transponder, only to be detained by Malaysian authorities and later continue toward China. This vessel has been linked with Iran and Venezuela – both under U.S. sanctions.

-🔥In an intense turn of events, Typhoon Kong-Rey – the strongest storm to hit Taiwan in nearly 30 years – forced the Chinese heavy lift vessel Yu Zhou Qi Hang ashore early Thursday, October 31. With power lost, the vessel dropped anchors as a last resort, but the Taiwan Coast Guard had to evacuate all 17 crew members before the storm arrived.

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INDIAN MARITIME

-🎯 Adding to its growing achievements, Garden Reach Shipbuilders and Engineers (GRSE) Ltd signed a significant Rs 490.98 crore contract with DRDO’s Naval Physical and Oceanographic Laboratory (NPOL) on October 29, 2024. This new project involves constructing a cutting-edge Acoustic Research Ship (ARS) designed for oceanographic and acoustic research missions.

-♟️Hapag-Lloyd is closing its JCS Service at the end of February 2025 to shift its vessel to the Gemini Cooperation with Maersk! The 10,000 TEU Seaspan Zambezi will join Gemini’s Asia-Caribbean services! The US2 Service (TP12 for Maersk) will have a double call at Cartagena! The US3 Service (TP15 for Maersk) will also include Cartagena on the westbound route. It’s crucial for the Gemini alliance since Maersk’s APM Terminals owns 51% of the Cartagena Container Terminal!

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