S & P 

An active week for both the dry and wet s+p market.

There are strong rumours in the market that HULL 1054 81,000 dwt SPP resale has been sold to clients of Bright Navigation at a price in the region of US$ 27m. The vessel, which is expected to deliver this summer, was originally part of a 2-sistership order placed at SPP Shipyard, although the second vessel is understood to have already been cancelled.

The geared Kamsarmax M/V NEWLEAD GUJURAT (79,500 dwt 2011 blt COSCO Dalian) has been sold at auction in South Africa to Greek buyers for US$ 22.4m.

In the Panamax sector, four Vogemann controlled ships have been committed in two separate enbloc transactions. The two Japanese built sister vessels, M/V VOGETRADER (72,170 dwt 1996 blt Hitachi) and sister M/V VOGEVOYAGER reported sold to Turkish interests at US$ 10.75 each. The two B&W built vessels M/V VOGE PRESTIGE (75,100 dwt 1996 blt B&W) and M/V VOGE PROSPERITY fetched US$ 8.75m each; understand from Greek buyers.

In the handysize sector, M/V ATLANTIC KING (27,786 dwt 1998 blt Naikai) has obtained US$ 8.5m from undisclosed buyers while the Daiichi Chuo owned M/V GLOBAL EXPLORER (24,800 dwt 1996 blt Shin Kurushima) reported sold at US$ 8.25 million with 3 years t/c at US$ 7,850 per day.

Despite the majority of the world disappearing for most of the week on various national holidays, we do have more to report than expected in the tanker Sale and Purchase market. Whilst the sales have not been of particularly modern tonnage, we do still believe they are worthy of note, especially in light of falling demolition levels and continued struggles in the charter markets.

Rumours suggest that Tanker Pacific owned VLCC CENTENNIAL JEWEL (300,955 dwt 1997 blt Mitsubishi) has been sold for US$ 32m to Modec most likely for conversion to an FPSO; sale may be on subjects.

In the suezmax sector, Greek clients (Polembros) have paid region US$ 15.25m each for the 2 Russian controlled sisters M/T NAUTIC and M/T NAVIGA (150,800 dwt 1998 blt NKK). Same buyers have also acquired the AET-owned Aframax M/T BUNGA KELANA SATU (105,575 dwt 1997 blt Hyundai) at US$ 9m.

The LR1 TORM UGLAND (73,708 dwt 2007 blt New Century) reported sold to Indonesian buyers at the price of US$ 21.5m with her first special survey passed within March.

In a number of sales Maersk is disposing their older MR product carriers; M/T MAERSK CLARISSA (44,970 dwt 1997 blt Halla) has obtained US$ 11m from Dileton Maritime. A further three units have also been sold M/T MAERSK CLAUDIA - M/T MAERSK CASSANDRA and M/T MAERSK CAMERON (45,999 dwt 1995 blt Halla) obtaining US$ 10m each from European buyers. A similar but Chinese built vessel namely M/T SELENDANG MUTIARA (45,991 dwt 1997 blt Dalian) reported sold to an undisclosed Greek buyer for US$ 8.4m.

NEWBUILDING  

With Golden Week and National Holidays in both Japan and across the world this week - the Newbuilding market has been a little subdued in terms of activity reported. That is not to say however that there has been a complete dearth of activity, with reports surfacing of further ordering in the Gas and Dry bulk sectors.

This further ordering in the Gas market is perhaps not a surprise given what has become a familiar story over the past year and these latest orders in the Dry Bulk market reflect owners increasing willingness to consider placing orders where the latest design developments mesh more comfortably with the current market price levels.

One sector however that has not yet reflected the ordering of last year remains the container market, wherein there have been only limited reports of new business having been concluded thus far this year. We understand though that several volume container projects are currently under discussion both in Korea and China and that the yards here are all competing fiercely to win what business is available. It is felt that this competition is leading to a continued softening in pricing and that the competition itself is being further exacerbated by the still somewhat limited demand in the other conventional sectors.

As with other sectors though, the Yards have been continually working hard on the technical innovation of their container designs and importantly in reducing the consumption of the Vessels in this time of very high bunker pricing. Typically, these enhancements are leading to the designs being developed today now offering significant savings even against the vessels ordered post-crash last year and as such feel the container market will be one to watch over the coming weeks where we expect ordering will begin afresh to take advantage of this.

In terms of reported business; In Dry, clients of Densay Shipping are reported to have ordered 1 option 1 x 82,000dwt Kamsarmaxes at CSC Jinling Shipyard. The firm vessel is understood to be delivering from end 2013 with the optional vessel in 2014. Clients of Niovis Shipping meanwhile are understood to have placed an order at Mitsui for 1 option 1 x 66,000dwt Bulk carriers. Pricing has not been disclosed however delivery is understood to be scheduled for 1H 2014.

In Gas meanwhile, Brunei Gas carriers are reported to have placed and order for 1 firm LNG carrier of 154,800 cbm in size at HHI. It is understood this includes options for two additional units and deliveries are scheduled from 4Q 2014. Finally, Ultragas are reported to have placed an order at STX Jinhae for 2+2+2 x 22,000cbm LPG carriers. These are scheduled to begin delivery in 1H 2014 and pricing is understood to be in the region of USD 42.5 Mill.