S& P 

M/V CLIPPER MERCURY (27,001 dwt 2004 blt New Century) and her 2002blt sister vessel M/V CLIPPER MORNING have been sold for region US$ 23m en bloc to undisclosed buyers.

The semi box type M/V ALADDIN RAINBOW (32,260 dwt 1999 blt Kanda S.B.) reported sold to Greek buyers for a price in the region of US$ 10.5m. Turkish interests are reported to have purchasedM/V DIAMOND GLORY (28,515 dwt 1997 blt Tsuneishi Zosen) for US$ 9.2m, the vessel has her SS/DD due in August 2012 while the logs fitted M/V KEN ANN MARU (32,115 dwt 1997 blt Onomichiwhich has SS/DD due in July 2012 has been sold at around US$ 9.4m.

The Tanker S&P market is quite active this week with a number of sales of modern tonnage to report.

Suezmax M/T MONTE GRANADA (150,581 dwt 2004 blt Universal) has been sold to Tanker Pacific at US$ 33.7 million a level which slightly surpassed market expectations as in an earlier effort to sell the vessel buyers had been unwilling to pay above US$ 30m. In the Handysize sector, the product carrier M/T STI CONQUEROR (40,158 dwt 2005 blt Shina) and her two older sister vessels M/T STI MATADOR and M/T STI GLADIATOR (40,081 dwt, Built 2003) reported sold for US$ 21m, US$ 16.2m and US$ 16.2m respectively to undisclosed buyers. Finally, The fully stainless M/T OAK GALAXY (19,997 dwt 2005 blt Shin Kurushima) has been purchased by Wilmar International, Singapore for US$ 19m.

DEMOLITION 

A stable market is the best way to describe the current situation. It is evident that Buyers remain interested to acquire units, however, we have turned the tide and they are no longer willing to accept Owners demands. With the continuing supply still exceeding actual demand, Buyers are now able to ‘pick and choose’ their preferred candidates.

We see evidence of this changed attitude in the reported sales this week. Several units that have been sold this week have been circulating for quite some time. Owners had been pushing to achieve the high numbers seen in previous months, but were forced to come to the realization that the market was not there to support such prices. The market has not bounced back to the previous highs and subsequently Owners have had to sell their units at the new, reduced rates.

Chinese rates have been stuttering along this week as the domestic market saw steel prices falling daily. As a result it has proved difficult to achieve positive offers. This is further affected by local owners’ tonnage being paraded into the local market.

Elsewhere, Indian breakers continue to show their eagerness to acquire new tonnage, although it is worth highlighting that most breakers are not offering at particularly aggressive rates.

NEWBUILDING  

The Newbuilding market continues to maintain a relatively healthy level of activity, with further reports of new business being concluded across Dry, Tanker and Gas segments of the market.

In Korea - they Big 3 continue to place an emphasis on Offshore and LNG, veering away from a focus on conventional tonnage and leaving this segment of the market open to the Mid-Sized yards, who are now competing hard for the remaining pockets of enquiry that exist. Such requirements continue to be design led and efficiency remains a critical consideration for buyers in what is remains, in broad terms, a tight trading environment.

In China, appetite for new business from the State and Private sectors shows no sign of relenting ¨C and pressure continues to mount against what is becoming an ever more imminent exposure, in terms of vacant 2H 2013 capacity. There are moves to increase the diversification of existing product mixes and step away from a pure dependence on Dry ¨C however ¨C it remains clear that China remains most competitive on the sector on which it has built its market position ¨C and with time and money invested into the advancement of the full spectrum of Dry designs they remain by far the most compelling commercial avenue in the market.

Japan also continues to warm up and with further reports of business being concluded ¨C we may well see the Japanese push a little harder on Dry as the year evolves.

In terms of reported business; In Tankers, Scorpio Tankers are reported to have ordered a further 1 x 52K MR tanker at Hyundai Mipo, which brings the total number units they have contracted in the past year to 7. This latest unit is expected to deliver in 2Q 2013 and is reported to have been signed at a price of USD 36 Mill. In Dry, Imabari Shipyard are reported to have won an order for a pair of 80,000dwt Kamsarmax newbuildings from one undisclosed owner. Though the price of these units remains unknown, it is understood these vessels will deliver in the second half of 2014. Finally, Dryships have announced that they have ordered a series of 4 x ICE 1A 75.9K Panamax bulkers at an established shipyard in China. . As per their announcement, this contract is understood to have been placed at the yard towards the end of last year and we understand has been placed at Rongsheng H.I. These vessels are provisionally scheduled to deliver from 1H 2014 onwards