Despite the negative freight market trends, the secondhand ship purchasing activity remains at similar with last week’s levels. Overall, the week ended with 31 transactions reported in the secondhand and demolition market, while the highest activity has been recorded again in the newbuilding market with 72 new contracts reported worldwide.

SECONDHAND MARKET
In the secondhand market, 22 vessels reported to have changed hands this week at a total invested capital in the region of US$299 million, with 6 transactions reported with undisclosed sale price. In terms of the reported number of transactions, the S&P activity has been marked with a 10% positive w-o-w change, while is down by 15.3% comparable with previous year’s weekly S&P activity when 26 vessels induced buyers’ interest with bulk carriers and tankers grasping 60% share of the total volume of S&P activity. In terms of invested capital, the most overweight sector for this week is the tanker segment grasping 51.26% of the total amount of money invested.

NEWBUILDING MARKET
In the newbuilding market, the week ended with 90% increase of newbuilding business in the bulk carrier segment with vessels of all sizes being on the spotlight, from very large ore capes to handysizes. The week ended with 72 orders reported in total, equalling a total deadweight of around 5,5 mil tons at a total invested capital of region $4,5 bn, 60% of the total number of newbuilding transactions reported with undisclosed newbuilding price. In terms of invested capital, the most overweight segment appears to be the offshore and container segment, even the irrational bulk carriers’ ordering spree, grasping around 50% of the total invested capital this week. At a similar week in 2010, the newbuilding activity was down by 10% than current levels with 80 new contracts to had been reported worldwide and bulk carriers winning 60% share of the total volume of reported contracts
In spite of bulk carriers grasping the highest share of this week’s newbuilding business (40%), shifting ordering trends towards offshore, container and gas tanker segment are still visible.
In the tanker sector, the MR size has started to become very fashionable investment recently supported by strong freight rates. Following Scorpio Tankers and Thenamaris MR orders, this week Denmark’s Norden is said to have placed an order for up to six 49,600 dwt product tankers and India’s Great Eastern Shipping an order for up to four units, both in South Korean yards. However, this ordering spree is not so rationale given the impact of the current orderbook level on the just buoyed freight market.
In the gas tanker sector, ordering activity is buoyed these days with more deals coming to light every week. South Korea’s Hyundai Heavy Industries has announced that it won orders for up to three 155,000 cu.m liquefied natural gas carriers for Greek owner George Prokopiou’s Dynagas LNG Outfit at an estimated price of region $200 mil per ship. In addition, the Greek gas shipping arm “Maran Gas Maritime” of Angelicoussis Group, which have already converted an order of three VLCC’s into contracts for 160,000 cbm LNG carriers, is planning to invest a further $1,6bn on a series of LNG carrier newbuildings in yards of South Korea, Hyundai Heavy Industries and Daewoo. Finally, Russian owner Sovcomflot is said to have placed an order for a pair of LNG carriers in the South Korean yard STX Offshore and Shipbuilding for delivery in the fourth quarter of 2013 and the second quarter of 2014 respectively. This order is believed to be the first for the gas hungry South Korean yard since 2007. It seems that Germany’s decision to exit from the nuclear power sector and Japan’s nuclear power plants meltdown has increased the interest in the segment.

DEMOLITION MARKET
In the demolition market, the appetite for capesize scrapping tonnage seems to have no end as prices are keeping firm. India seems to have fulfilled its scrap yard capacity and Bangladesh has stepped in to bid a large share of the market till the beginning of July. However, China is believed that will firm even more its position during the monsoon period by securing more scrapping tonnage at higher offered prices. Scrap rates are still holding strong comparing to last years levels, with demo countries offering $100-$150/ldt more for dry and wet cargo. Bangladesh appears to offer firmer prices than India, while China still tries to narrow the price differential gap among Bangladesh and India.
The week ended with 18 vessels reported to have been headed to the scrap yards of total deadweight 939,983 tons. In terms of the reported number of transactions, the demolition activity has been marked with a 5.8% week-on-week increase, while in terms of total deadweight sent for scrap there has been an impressive 23% decrease. In reference to scrap rates, the highest scrap rate has been achieved this week in the bulkcarrier sector, by Bangladesh for the 236,697 dwt “HEBEI INNOVATOR” at $ 530-535/ldt. India and Bangladesh compete on the acquired tonnage by attracting the majority of fresh reported deals, since some older demolition sales came to light. Comparing to last year’s similar week in 2010, demolition activity was at lower levels in terms of the reported number of transactions, where 10 vessels had been reported for scrap of total deadweight 292 mil tons with liners winning 40% share of the total volume of demolition transactions and India offering the highest levels $350/ldt for dry and $380/ldt for wet cargo.

GREEK PRESENCE
The Greek presence was at low levels again this week in terms of number of transactions. In the newbuilding market, Greek presence was noticed in the dry sector with the order of one kamsarmax vessel and in the gas tankers sector with two orders for 155,000cum from Dynagas, In the secondhand market, Greek investors appeared to be behind two S&P tranactions, one in the handymax bulkcarrier sector and one in the handy container sector. The total invested capital is calculated to be in the region of $400mil for the newbuilding investments (while the contract price of the bulkcarrier has not been revealed) and $ 15 mil for the investments in the secondhand market.