The week ended with high volume of secondhand and demolition S&P transactions, while newbuilding activity is on a downward recession. Overall, 51 transactions reported worldwide in the secondhand and demolition market, up by 155% week on week due to a 300% increase of S&P transactions in the bulk carrier segment. At similar week in 2011, the total S&P activity was standing 31% lower than the current levels, when 35 transactions had been reported and secondhand ship purchasing activity was 54% lower than the ordering business. The highest activity has been recorded in the secondhand market with 29 S&P transactions reported, with the demolition activity standing 70% higher than the ordering business.

SECONDHAND MARKET
The secondhand ship purchasing activity is on high edge during the first days of the New Year with owners seem to revive their purchasing plans stronger after the end of Chinese New Year, when the BDI and asset prices show their new direction. In the tanker segment, the MR buying appetite holds its pace, while in the bulk carrier segment modern and vintage tonnage of all sizes is very alluring for investment. In the container segment, investors remain absent from the S&P scene with the freight market showing signs of revival.
Notable deal of the week in the dry bulk market, the sale of two kamsarmax resales built Tsuneishi Zhoushan for delivery 2012/2013 at price region $32-$33 mil each to Greek buyers, the vessels are said to have been ordered at excess $50 mil each.
In the tanker segment, M/T “MARE DI NAPOLI” 51,371dwt built 2007 SKR reported sold for $27,25 mil, while M/T “SANKO NEPTUNE” & “SANKO NOBLE” of 19,991dwt built 2011 Japan reported sold for $27 mil each.
In the container segment, Diana Containerships Inc. announced the purchase of two panamax container vessels, 4700 TEU from APL, M/V “APL Sardonyx” and M/V “APL Spinel” built 1996 Korea for $30 mil each, icluding 2+1 years time charter back at $24,750/day and $28,000/day.
Overall, 29 vessels reported to have changed hands this week at a total invested capital in the region of US$ 452 mil, 6 transactions reported at an undisclosed sale price, with bulk carriers and tankers being the protagonists by grasping 41% and 24% share respectively of the S&P activity. In terms of the reported number of transactions, the S&P activity is up by 263% from last week’s activity, and up by 7.4% comparable with previous year’s weekly S&P activity when 27 vessels induced buyers’ interest at a total invested capital of about $1,4 billion with tankers holding the lion share, 33% of the total volume of S&P activity. In terms of invested capital, the dry bulk sector appears as the most overweight segment by attracting about 33% of the total amount of money invested and tankers to follow with 24% share.

NEWBUILDING MARKET
New Year opened with fresh business in the bulk carrier and tanker segments being subdued, while offshore ordering activity continues in the frontline. Overall, the week closed with 13 fresh orders reported worldwide at a total deadweight of 153,600 tons, posting a 19 % week-on-week decline. This week’s total newbuilding business is down by 78% from similar week’s closing in 2011, when 58 fresh orders had been reported with bulk carriers grasping 73% share respectively of the total ordering activity. In terms of invested capital, the total amount of money invested is difficult to be estimated as 12 newbuilding orders have been reported at an undisclosed contract price.
In the bulk carrier segment, Chengzi Shipyard in China has won an order for two handymax bulkers of 49,000 dwt by Ningbo Fonwa Shipping for delivery in 2013. The units have been ordered for Chinese domestic coal trading.
In the tanker segment, Stena Bulk of Sweden with its partner Weco Shipping is said to be in discussions for a series of 52,000 dwt product tankers with Chinese yards, Guangzhou Shipyard International and Dalian Shipbuilding, plus a South Korean shipbuilder. The new medium range tankers will operate in the vegoil trade. In the crude market, rumors are circulating for the placement of five VLCC units of 318,000 dwt by Kuwait Oil Tanker in Daewoo of South Korea at a price region $111 mil. Other sources suggesting that Kuwait Oil Tanker has firmed up a contract for four VLCCs and one aframax tanker, while the company is in discussions for four medium range newbuildings with Hyundai Mipo at price region $40 mil. The units will cost more due to company’s high specification requirements.
In the passenger / cruise segment, Viking Ocean Cruises of USA ordered its first deep sea cruise liners of 888 pax in the Saint Nazaire yard of STX France for delivery in April 2014 and 2015.
In the offshore segment, Singapore rig builder Keppel’s US subsidiary Keppel AmFels LLC is said to have secured a contract from Diamond Offshore to construct and upgrade a moored submersible rig for delivery in 3q 2013 at an estimated price region of $150 mil. The rig will be designed to operate in depths of up to 6,000ft and will have a variable deck load of 5,000 long tones, a five ram blowout preventer and quarters capacity for 140 personnel.

DEMOLITION MARKET
In the demolition market, some activity has been witnessed in the Bangladesh region on the news that the green light will be given to the ship recycling industry on January 12th. Scrap prices for dry and wet units remain below $500/ldt with hopes for a firmer rebound on the full reopening of Bangladesh. Pakistan appears to be the most competitive with levels offered $455/ldt for dry and $485/ldt for wet cargo, while China seems to compete with the Indian sub continent region at scrap rates of about $430-$440/ldt.
The week ended with 22 vessels reported to have been headed to the scrap yards of total deadweight 788,248 tons. In terms of the reported number of transactions, the demolition activity has been marked with a remarkable 83% week-on-week increase, due to 233% higher volume of demolition transactions in the bulk carrier segment, whereas there has been a 106% increase regarding the total deadweight sent for scrap. In terms of scrap rates, the highest scrap rate has been achieved this week in the dry bulk segment by Bangladesh for M/V “KANG HUA” with 9,239/ldt at $493/ldt including 500 tons of bunkers. India has attracted 36% of the total demolition activity with China winning 2 bulk carriers at levels xs $400 /ldt. At a similar week in 2011, demolition activity was down by 64% from the current levels, in terms of the reported number of transactions, 8 vessels had been reported for scrap of total deadweight 310,651 tons with bulk carriers and tankers grasping 50% of the total number of vessels sent for disposal. India and Pakistan had been offering $465-$485/ldt for dry and $500-$510/ldt for wet cargo, while Bangladesh market had been inactive from the demolition scene.

GREEK PRESENCE
Greek owners continue their investments in the secondhand market, whereas they are very conservative for new newbuilding transactions. Their total amount of money invested is estimated to be region of $87,7 million for the purchase of two dry bulk handysize units and two small panamax containerships.