S & P 

The amount of sales this week have reflected the various holidays in Europe and China, however with a number of modern units currently under inspection we could well see an increase in reported sale in the next couple of weeks despite these holidays.

In the Panamax sector, UK-listed Hellenic Carriers have announced that they have committed their mid-90s built Panamax bulk carrier M/V HELLENIC SKY (68,591 dwt 1994 blt Sasebo H.I.) for US$ 10.1m.

In the Handymaxes, M/V OCEAN SUNRISE (48,203 dwt 1999 blt Oshima) reported sold for US$ 13.4m from Far Eastern buyers while the Handy M/V LIVADIA (32,662 dwt 2003 blt Shin Kochi) has obtained a firm US$ 15.2m from Nachipa, Chile.

It has been also a quiet week in the Tanker Sale and Purchase market; after the enbloc sale reported last month from Tanker Pacific’s fleet of the MR product carriers M/T PACIFIC OPAL and M/T PACIFIC RUBY (46,850 dwt 1993/1994 blt Halla) a further three non IMO sisters namely M/T PACIFIC AMBER (1993 blt), M/T PACIFIC JADE (1994 blt)  and M/T PACIFIC PEARL (1994 blt) reported sold to Nigerian buyers at US$ 7.5m each.

NEWBUILDING  

The Newbuilding market has been particularly quiet this week due, in no small part, to the combination of the holidays in the Far East in the early part of the week, being directly followed by the impending holiday period across much of the West!

As we commence the 2Q of the year - it is interesting to take a year on year comparison in terms of contracting volume against the same period for 2011. For the 1Q 2012 we have so far seen 201 contracts placed at Yards globally, inclusive of offshore orders coupled with conventional tonnage. This is in stark contrast to the same period in 2011, which saw approx. 415 contracts placed within the same sectors - so a fall in activity of some 50% over the same period.

The 1Q of 2012 has certainly proved to be challenging for owners and shipyards alike. From a trading perspective - the BDI has dropped from an average of 1365 for the 1Q of 2011 to an average of just 867 for the 1Q of 2012 - and there is no doubt that a weak trading environment coupled with an increasing challenging debt market has directly translated into a reduction in newbuilding volumes.

Yards that are diversified will be best placed to take advantage of the niches of the market that still yield opportunity - however for those dependant on a much narrower product mix - the 2Q of the year will be challenging and it will be interesting to note whether the pressure build up from the 1Q translates into another dip in values over the next quarter…