S & P

Due to various holidays in the Far East, it has been a quieter week in the Sale and Purchase market, however despite depressed freight rates levels of enquiry remain relatively high and we anticipate a number of sales in the forthcoming weeks.   A resale Kamsarmax M/V TSUNEISHI FUKUYAMA 1454 (82.100 dwt July 2011 blt Tsuneishi) reported sold to Greek interests for US$ 42m. In the Panamax sector, the Greek controlled M/V GEOSAND (74,432 dwt 2005 blt Hudong Zhonghua) is acquired from clients of Globus Maritime for US$ 31.4m including a 2 year charter back to the Sellers at region US$ 18,000 per day. In the Supramax sector we understand that the Wah Kwong controlled Diamond 53 type M/V SHANGHAI VENTURE (53,410 dwt 2007 blt Shanghai Chengxi) has been sold to IPO interests at a firm price in the region of US$ 26m. Not much to report in the tanker S+P market; The M/T EAGLE HOPE (73,965 dwt 2008 blt Onomichi, coated, ice 1A) has been sold to undisclosed European buyers for US$ 38.7m by way of sealed tender at Judicial auction.  

  NEWBUILDING 

With Golden Week and National Holidays in both Japan and Korea this week - the market has been a little subdued in terms of activity in the Far East. Nevertheless - there continue to be reports of new business being concluded, with the container sector continuing to dominate the bulk of new orders in accordance with the broad trend of the year.

Whilst this interest in the container sector has been well received and assimilated by those yards with good Container experience - it has meant that shipyards have been forced to re-evaluate their existing position on Dry and Wet - and this has in turn lead to a more innovative drive to improve design concept and efficiency for both dry and wet sectors - in an attempt to re-invigorate interest in these sectors.

As a direct response, efficient ship designs have become an increasingly important factor in winning new business, especially in light of the continuing rise in bunker pricing and consequent operating costs. We continue to see the yards and design houses work to develop these new designs, in which improvements to Fuel consumption and efficiencies are being witnessed through new hull forms, utilising new engine types and many other innovations. As, or when, appetite returns to these sectors, it should be anticipated that the yards to have done the most in terms of developing these designs will be the ones best placed to benefit from any changes to the current demand cycle.

In terms or reported business; In Containers, Hanjin Subic are reported to have won an order from Zodiac Maritime for 4 option 2 vessels of their 6,600TEU container design with the vessels scheduled to deliver within 2013 and 2014. Zodiac are also reported to have signed a deal at Daewoo Mangalia for 4 option 4 vessels of 9,000TEU in size with the firm vessels again due for delivery within 2013 and 2014. SITC have also been busy and have increased their order for 1,100TEU containerships at Yangfan, originally 8 vessels signed last year to a total order of 10 + 6 units due for deliveries throughout 2013 and 2014 at a price in the region of USD18.1 Mill pre vessel.

In Dry, KC Maritime are reported to have signed 2 option 2 x 82,000dwt Kamsarmax Bulk carriers at Daewoo Mangalia set to deliver in 2013. Yangfan meanwhile have won more business, this time with Hongxiang for 2+2+2+2 x 205,000dwt Capesize bulkers to deliver from End 2012 and through 2013.