S & P 

In the Capesizes the M/V BULK LOYALTY (175,800 dwt 2012 blt Jinhai) has been sold to for US$ 37m to Greek buyers, while M/V DONG-A ARES (151,439 dwt 1994 blt China Shipbuilding) reported sold at USD 8m to Samsun Logix.

An interesting new benchmark this week was set with the sale of the M/V IVS KESTREL (32,537 dwt 2002 blt Kanda) which has reportedly been concluded at a price of circa US$ 11m to undisclosed Far Easter buyers. The vessel will be delivered with SS/DD freshly passed in the 4th quarter of this year. The last comparable sale was that of the “AZURITE OCEAN” (32,178 dwt 2002 blt Hakodate) which was sold in July for just over US$ 12m, we understand with SS/DD due.

Finally, the resale M/V SANKO VEGA (31,570 dwt 2012 blt Hakodate) understood is sold for region US$ 22m to Taiwanese buyers.

For the Tanker S+P market the summer has been quieter than we have seen in recent years with very few sales of any real significance taking place. The chemicals market has been the exception to the rule over the summer with a consistent flow of ships being sold ranging from the smaller 5k dwt ships up to the fully stainless steel J-19's.

NEWBUILDING  

The Newbuilding market continues to operate within the confines of a tough Macroeconomic environment. This has been highlighted this week by various Owners, with interests across the tanker, container and car carrier sectors, reporting first half losses Y-o-Y. This, in tandem with the similarly subdued earnings being posted by the yards for the same period, continues to highlight the challenging trading environment within which the market is operating.

The Korean MKE (Ministry of Knowledge Economy) has stated - that for the first time in the past 19 years, they expect the export value of ships and structures for Korea will decline in 2012, which seems unsurprising given the challenges of the debt market at present, which of course makes investment in the newbuilding market somewhat tough to say the least.

That said, there have still been reports of new business being concluded this week, with the yards proving that economical designs are key to winning new business and it will be those Owners who have cash available for pre-delivery installments, going to be the ones benefiting in the charter market once these ships hit the water.

Next week sees Hamburg host the biennial SMM shipbuilding/ship equipment/machinery international trade fair with Yards and equipment suppliers from across the world converging to present their product ranges not only to the German Owners based there, but the global market as a whole. Whilst the German KG market remains depressed at the moment ©} the traditional German Owners and KG managers are fully aware of the benefits of the new designs. In the container space, to name but one sector, they have been influential in working with the yards in developing their new designs, that will allow the segment to further strive towards meeting the new regulations for NOX/SOx reductions as well as make substantial savings on their future fuel bills.

In terms of reported business; In Dry, clients of Nisshin Shipping are reported to have placed an order at Jinhai Heavy Industries, China for 2 optional 2 x 82,000dwt Kamsarmaxes. The firm vessels are expected to deliver from 2H 2014 onwards and pricing is believed to sit in the region of USD 26 Mill per vessel. In Japan, Wisdom Marine Lines are reported to have turned to Namura to place an order for 4 firm units for their 34,000dwt design. Whilst pricing has not been disclosed, deliveries are expected to be from 2H 2014 onwards. Finally, Taizhou Sanfu are understood to have signed a further 2 x 51,000dwt handymax bulkers with domestic clients Guangdong Lanhai Shipping. These are optional vessels for ships ordered earlier in the year and expect will deliver in 2014. No pricing has been disclosed, but expect it would lie in the region of USD 23/4 Mill.