S & P 

Chinese buyers paid a firm US$ 11.8m for Japanese controlled M/V RUBY CREST (73,330 dwt 1997 blt Halla). In addition, the Korean controlled M/V EASTERN QUEEN (70,196 dwt 1994 blt Daewoo) is understood to be sold again to Chinese in the region of US$ 9.5m. To remind you, the vessel was originally sold at the beginning of this year at close to US$ 10.9m but the sale eventually failed.

The handymaxes M/V SERASIH 2 (48,913 dwt 1999 blt IHI) and M/V SELARAS (45,734 dwt 1994 blt Tsuneishi) have been sold in an en bloc sale for a combined US$ 20.5m with a suggested breakdown of US$ 11.5m/US$ 9m.

In the handymax sector, Indian buyers have purchased the Okean type M/V MASTRO GIORGIS II (52,370 dwt 1995 blt Okean) at US$ 7.2m. Sanko-controlled handymax M/V SANKO RALLY (42,529 dwt 1994 blt Namura) is rumoured to be sold at around US$ 8.8m to Bangladeshi buyers; the low price reflecting limited pool of Buyers willing to operate these vessels with an 8 holds/8 hatch configuration.

Lastly, F. Eastern interests have purchased box shape handysize M/V APOLLO (27,812 dwt 1996 blt Naikai) for region US$ 8.2m.

Not much to report in the Tanker S+P market; whilst this week has not been as busy in terms of sales as last, there has been continued activity in the 90's built sectors. The recent dearth of sales of modern tonnage is not due to a lack of appetite but more down to a limited supply of tonnage being readily marketed for sale at prices in-line with the prevailing market.

In the Aframax sector, clients of AET have sold their second ship M/T BUNGA KELANA DUA (105,976 dwt 1997 blt Hyundai H.I.). Greek based Buyers are reported to have paid US$ 8.8m with special survey due.

NEWBUILDING  

With the excitement of Posidonia on the horizon and with the recent elections in both Greece and France, the focus and discussion has yet again started to concentrate on how these political changes will affect not only European policy, but more importantly for shipping, how the banking sector will be affected and their ability to start lending again.

Looking below at our reported business it could almost seem as if we are returning to the good old days with nearly 30 contracts placed at various yards this week and we are likely to hear confirmation of further contracts concluded over the upcoming weeks before Posidonia commences. However, even with these relatively positive signs, the view remains that the under laying problems of oversupply of tonnage, over capacity at yards and lack of funding are still very real threats to the longer term recovery of the shipbuilding market and as such one week of positive news sadly does not mean that the corner has been turned towards a full recovery!

In terms of the reported business IHI in Japan have announced an order for two 310k dwt VLCC's for their domestic Clients JX Group though their two subsidiary companies JX Tanker Co. Ltd and JX Shipping Co. Ltd, both ships reportedly for delivery from the Kure facility in 2015. Also in tankers, Seatankers Management Co. Ltd have placed an order at Longxue for four + two 42 M beam LRII's at a price understood to be at USD 42 Mill per Vessel, delivery of these tankers will be from the 4Q 2013 onwards. Finally in the Tanker sector, there has been an order from DSM Maritime of Australia for four small product tankers at the Vietnamese Yard Seong Thu Shipyard, these Vessels will delivery in the latter part of next year.

In dry there has been a volume order from the Chinese player Shenhua Zonghai Shipping with an order for eight 76k dwt Panamax bulkers, with six of these coming from Jiangnan Shipyard and the final two from Shanhaiguan and whilst the order was placed in RMB, it is understood to equate to a USD equivalent of something around USD 28 Mill per Vessel. These Ships will deliver from October 2013 onwards. Sasebo in Japan are also understood to have taken orders for a trio of their 75,000 dwt panamax design from Wisdom Marine Lines of Taiwan. Whilst it the value of this order is not known yet, we understand they will deliver from July 2013 onwards. Finally in dry Clients of National Commodities Operations, Greece are reported to have placed a BBHP order for five SDARI 64k dwt Ultramaxes at Jiangsu Sainty Shipyard for delivery from October 2013.