S & P 

Although there has been a slowdown in activity this week in terms of recorded sales, there are a number of units being inspected and inviting offers which we expect will turn into confirmed transactions shortly. After being inspected on completion of her dry-docking in China, the Japanese controlled modern Capesize bulker M/V PACIFIC FORTUNE (171,075 dwt 2004 blt Hyundai H.I.) received offers this week from 6 Buyers and we believe is close to being concluded for a price in the US$ 34s.

The Jinhai resale M/V LUO DA (79,600 dwt 2011 blt Jinhai) is reported sold to undisclosed buyers for a price in excess of US$ 28.5m. The STX Panocean controlled M/V NEW ACCORD (27,234 dwt 1996 blt Hanjin H.I.) is reported to have been concluded at a weaker price in the region of US$ 10.5m to Greek buyers.

In the Tanker S+P market, the double hull VLCC, CHIOS (301,824 dwt 1993 blt Hyundai) is understood to have been sold to South East Asian buyers at a price region US$ 27-28m for conversion. In the Aframax sector, the M/T OCEAN LADY (105,579 dwt 2002 blt Sumitomo) is sold to Sinokor at US$ 21.8m while the M/T ESTEEM GRANDEUR (105,426 dwt 1997 blt Namura) is sold to Greek buyers at US$ 12.8m.

NEWBUILDING  

The newbuilding market remains very quiet this week, with the only business to report being that of four x 5,200dwt MPP Vessels to the Dutch based owner, Clients of MK Shipping, at the Bangladeshi Shipyard Western Marine, that being said though there does still remain demand from the Owners in both the conventional and more specialised sectors.

As we have mentioned previously, it is demand on the newly developed ¡°eco¡± type vessels in both Dry and Wet, with improved fuel consumption, that we feel will be the major key to tempting owners to invest in ordering fresh tonnage and it will be interesting to see, as we progress into next year just how much the Yards need to rely on these more specialist sectors to fill their dry dock capacity; or alternatively if they are prepared to compete on the more conventional sectors; and if this is the case, then how low will they consider offering to owners to tempt them to invest fresh capital and fresh orders in the current uncertain financial climate?

Of course the Korean yards (the main beneficiaries of this specialised sector largesse!) have the joy of offering a far more diverse range of products to their Chinese counterparts and it has been this diversity that has enabled them to have a relatively successful year in 2011 and it will be interesting to see whether they are able to carry this success through into 2012.