S & P 

Two fresh sales from Sanko reported this week; the Panamaxes M/V SANKO ORION (75,603 dwt 2011 blt Oshima) at US$ 27.2m and her one year older sister M/V SANKO ODYSSEY (2010) at US$ 26.7m sold both to Zodiac. Another panamax sale is that of M/V MINING STAR (76,225 dwt 2005 blt Tsuneishi) which has gone to Greek buyers at US$ 21.25m.

A very interesting week for S+P market in tanker sector;

The two modern Aframaxes formerly owned by ETA, Dubai that were arrested in Singapore last August, namely M/T ARCTIC GALAXY and M/T LIBYAN GALAXY (105,475 dwt 2008 blt Hyundai) have been sold by BNP Paribas and have gone to Greek interests for US$ 32.25m each. On another sale the Aframax M/T CHAMPION POWER (105,083 dwt 1999 blt Samsung) has been sold to Greek buyers for US$ 11.5m which is in line with recent sales of similar tonnage. The two Japanese-owned MR (pump room type) product carriers M/T SABRINA EXPRESS (47,408 dwt 2009 blt Onomichi)and the M/T SUNNY EXPRESS (47,999 dwt 2004 blt Iwagi) reported sold again to Greek buyers at US$ 25.5m and US$ 16m respectively.

Finally, Navigator Gas has purchased from Petredec the modern sister LPGs DESERT ORCHID and DANCING BRAVE (abt 22,000 cbm 2009 blt Jiangnan) for US$ 26.25m each.

NEWBUILDING  

It has been a quiet week in the Newbuilding market with levels of new enquiry remaining relatively subdued. This is not to say however that the market has been devoid of activity and there have been further reports of new business being concluded in both the Dry Bulk sector in China and Gas Carrier sectors.

As has been previously mentioned in regards to the yards in China - due to the rapid expansion of its shipbuilding capacity over the past few years, the various yards are more and more having to come to terms with this market of limited demand. With this in mind, we have continued to see a softening of pricing as the yards try and bring about a new supply/demand equilibrium where owners will again begin ordering. However, with more of the yards beginning to suggest they are now offering berths at direct cost, it remains to be seen whether this pattern continues or whether a new round of consolidation begins amongst the yards, as the on going challenges of the current market further© takes its toll.

In Korea meanwhile, the major yards have continued to announce new business within the Offshore sectors and look to be making strong progress towards their order targets for the year. With Pacific Drilling for example now exercising its option at Samsung for its seventh ultra deepwater drillship, it© now means Samsung is close to having achieved 40% of its order target of 2012. With so much of the major yards revenues last year made up of these offshore projects, it continues to look like 2012, as predicted, will follow the same pattern.

In terms of reported business; In Dry, Samjin Shipyard are reported to have won an order from AsiaPacific 20 a Shipping fund for a pair of 58,000dwt Supramax Bulk Carriers. Although no contract price has been disclosed, these vessels are understood to be scheduled for delivery in 2014. Meanwhile Guangzhou Lanhai are understood to have placed an order at Taizhou Kouan/Catic for 10 x 51,000 handymax bulk carriers, although this order was in fact placed in January this year. Again pricing has not been disclosed, however we understand it was an RMB contract only and the vessels will deliver within 2013. In Gas, Stealthgas are understood to have placed an order at STX Shipbuilding for 2+2 x 5,000cbm LPG carriers at a price in the low USD20s Mill. The two frim vessels are understood to be due to deliver in 4Q 2013.