S & P
Confirming our announcement earlier this week, our Group has been appointed officially by the Korea Deposit Insurance Corporation (“KDIC”) in conjunction with a Korean partner to exclusively manage the sales and related consultancy of 7 modern bulk carriers namely ”SEA OF HARVEST” (81,508 dwt, built 2009 Universal), “GRAND CHALLENGER” (82,992 dwt, built 2006 Tsuneishi Zosen), “SEA OF FUTURE” (76,454 dwt, built 2005 Tsuneishi Zosen), “SEA OF GRACIA” (about 76,015 dwt, built 2003 Tsuneishi Zosen), “SEA OF HARMONY” (about 76,379 dwt, built 2001 Tsuneishi Zosen), “SUNNY PRIDE” (about 74,078 dwt built 2000 Imabari) and “ATLANTIC ADVENTURE” (about 55,709 dwt, built 2006 Oshima, C4x30T). At present, we are preparing further information, and discussing the time frame of the sale with the controlling interests, and will be able to revert with further information on how the sale will proceed in the coming week.
In the Dry S+P market this week;
The ore carrier M/V BAOSTEEL EDUCATION (228,527 dwt 2009 blt Namura) is changing hands within Japan at a price of US$ 45m. The buyers are reported to be MOL to whom the vessel was under time charter until 2029 at US$ 20,000 per day.
In the post panamax sector, clients of Diana Shipping are reported to have committed a resale controlled by Kambara interests from Tsuneishi Zhoushan Shipyard Hull SS-118 (97,988 dwt) for a price in the region of mid US$ 20’s.
In the supramax sector, a resale from Hyundai Vinashin Shipyard the Hull S010 (55,783 dwt 2012 blt Hyundai Vinashin), originally contracted by clients of E.R.Schiffarht, has been sold by the yard to clients of Thailand’s Precious Shipping at a price reported to be as low as US$ 20.5 million.
In the older handysize sector, the M/V BRAVE JOHN (39,230 dwt 1983 blt Kanasashi) has been sold by clients of P&P Shipping to Ukrainian buyers for circa US$ 3.7m. Chinese buyers are reported to be behind the purchase of the M/V BARCELONA (27,573 dwt 1984 blt 1984 Mitsui) from clients of Nordstrand Maritime at region US$ 1.9m while the Thai Pacific Maritime controlled M/V SIAM TOPAZ (26,587 dwt 1985 blt Kanasashi) has been sold to Greek interests for region US$ 2.45m.
In the Tanker S+P market, an interesting deal we can report is the sale of four German controlled 1998 built Aframaxes to South Korean interests - namely, M/T CAPE AVILA (105,237 dwt 1998 blt Halla) and sisters M/T CAPE AKROTIRI; M/T CAPE ASPRO and M/T CAPE ANCONA. The sale was committed on a subject inspection basis at region US$ 10.5m per Vessel and delivery will be later this year. The D’ Amico’s older Aframax, M/T SCORPIUS (94,225 dwt 1994 blt Fincantieri) has achieved US$ 13m. The IMO II/III M/T BALLAD (44,999 dwt 1996 blt Halla) reported sold to Nigeria based buyers at US$ 10.25m.
The Newbuilding market has seen some further activity this week with orders reportedly placed in both the dry and container/ro-ro sectors. Enquiry has continued to remain relatively subdued however and we do not anticipate this changing over the coming weeks, especially with the summer shipyard holidays in Korea on the near horizon.
This latest ordering has followed the trend of the year so far, with these orders being placed at the yards for their recently developed fuel efficient designs. This efficiency continues to give the yards a key selling feature when working with potential buyers and whilst it is true that financial liquidity remains limited in the market - there do remain some buyers with the capacity to order, as highlighted by these latest contracts.
With demand continuing to remain limited across the conventional sectors, it is of little surprise that the yards continue to try and broaden their product ranges. For the first time on record, investment into the offshore sector is understood to have outpaced that of investment in the conventional shipping sectors, during the first half of 2012. Fortunately for many of the shipyards, not only just in Korea, but in China and Japan too, this broadening of their traditional product ranges into offshore, has helped alleviate some of the pressures in the current market and will be a story to follow as to whether this continues on throughout the second half of the year.
In terms of reported business; In Dry, clients of Ultrabulk are reported to have followed up their order last week at Oshima by placing a further order at Weihai Samjin for 1 option 1 x 36,000dwt Handysize bulker. Delivery of the firm vessels is provisionally scheduled to deliver from the beginning of 2014 and pricing is understood to lie in the low USD 20s Mill. HI Investments & Securities are reported to have placed an order at Hantong Shipyard for 2 x SDARI 64K Supramaxes. These vessels are due to deliver in 2014 and pricing is understood to stand at circa USD 26 Mill. Clients of LT Ugland meanwhile are understood to have taken a pair of Tsunieshi Zhoushan supramaxes with delivery in 1H 2014. Pricing is not disclosed.
Finally in other sectors, STX are understood to have won an order from clients of Italian owner, Ignazio Messina for 4 hybrid container/ro-ro vessels. These will deliver throughout the 2H of 2014 and are understood to have cost circa USD 73.5 Mill per vessel.