S & P

Not much to report this week.

In the Capesize sector, two sales have been concluded. We understand that S. Korean interests have purchased (subject tender) the M/V JULIAN N (149,391 dwt 1993 blt CSBC) for US$ 16.4m. In addition, the NYK-controlled capesize M/V SUZAKU (148,535 dwt 1994 blt Samsung H.I.) has been sold at US$ 15.5m to Chinese buyers.

An active week for the tanker S&P market.

The VLCC M/T VENTURE SPIRIT (298,330 dwt 2003 blt Universal Shipbuilding Japan) reported sold to Greek buyers for US$ 65m.

To another sale clients of Torm have sold the M/T TORM MARGRETHE (109,637 dwt 2006 blt Dalian) to First Ship Lease Trust (FSLT) for US$ 46m. Upon delivery Torm will take the vessel back on bareboat charter for a seven year period and is structured with recourse to Torm and contains: a purchase option at the expiry of the charter, an early buy-out option on or after the fifth anniversary of the lease term, as well as three extension options of one year each.

The ex Korea Line controlled M/T BLUE JADE and M/T BLUE EMERALD (51,246 dwt 2009 blt STX)

were this week sold at judicial auction (in California and Texas respectively) to clients of Kirk Kapital for US$ 35.2m.

NEWBUILDING 

As we approach the middle of 2010, the Yards will no doubt be looking back on the year thus far, with the larger Korean Yards likely reflecting on how well or not they have done against their annual targets.

Currently it is Samsung who lead the way in terms of meeting their targets, which is due to their continued success in the LNG, offshore and container markets. Reportedly they have already won orders amounting to over 90% of their annual sales target. HHI, DSME, STX and SPP are also reported to be well on the way towards reaching their targets and Sungdong have been reported to increasing their target by more than 40%, after a successful start to the year.

As previously reported, this sadly is in stark contrast to some of the smaller yards in Korea, who have somewhat struggled to win new business in their preferred areas of smaller bulkers and chemical tankers due in part to a much slower market and stiff competition from their Chinese counterparts. It will be interesting to note how the second half of the year pans out for these smaller yards!

In terms of reported business; In Dry, Centrans Ocean are reported to have ordered a series of 10 x 76,000dwt Panamax bulk carriers at Rongsheng H.I. with the vessels due to begin delivering from End 2012 onwards. Meanwhile Samjin are reported to have won an order from an unknown Korean Owner for 2 option 2 vessels of their 58,000dwt design with deliveries scheduled from End 2012 and into 2013.

In Wet, Clients of Thenamaris are reported to have signed for a series of 4 x 51,000dwt MR tankers with the vessels due to deliver in 2H 2012 and 1H 2013. Norden are also reported to have signed with STX, ordering 4 firm units of 49,600dwt and a further 2 options, with the firm vessels due to deliver in from 1H 2013 onwards. Knutsen NYK are reported to have ordered one additional 123,000dwt Shuttle tanker at Hyundai H.I. due to deliver in Sep 2013. In addition, Palmali Shipping have ordered 5 x 7,050dwt Product tankers at Besiktas Shipyard in Turkey delivering from Early 2013 onwards.

Finally in Gas and other sectors, Dynagas have ordered 2 option 1 x 155,000Ccbm LNG Carriers at Hyundai H.I. with the firm units due to deliver in 2013. Sovcomflot meanwhile have ordered 2 option 2 x 170,200dwt LNG Carriers at STX Shipbuilding with the firm vessels due for delivery in 2013 and 2014 respectively. Finally P&O Cruises are reported to have placed an order at Fincantieri for one 141,000gt Cruise Ship due to deliver in 1Q 2015 at a reported price of USD 805 Mill.