S & P

It has been a busy week in the drycargo market across all sectors, a strong indicator that the current levels are a buy in for many owners, which is also leading to increased competition on the ships being marketed for sale.

In the capesize market this week, the Japanese controlled M/V GREAT PHEASANT (178,820 dwt 2000 blt Hyundai) is reported to have been sold to Greek interests at levels in the mid 17’s. Moreover, undisclosed buyers are reported to have purchased the M/V AQUABELLA (161,010 dwt 1995 blt Hyundai) for a level in excess of US$ 11m with DD freshly passed.

In the panamaxes, the geared panamax M/V PACIFIC PIONEER (69,279 dwt 1994 blt Hashihama) has been sold to Chinese interests for US$ 7.2m.

Undisclosed Greek buyers have acquired the handymax M/V CB ADVENTURE (46,232 dwt 2002 blt Oshima) for a firm level in the mid 13’s.

The handies has also seen a significant amount of activity this week. Clients of Norden have three modern handysize bulkers, namely the M/V NORD AARHUS, M/V NORD ANTWERP and M/V NORD DUBAI (all about 33,230 dwt 2012, 2011 and 2011 blt respectively in Hyundai Mipo) for an enbloc price of US$ 60m to clients of Dalex, Greece. Elsewhere in the handies, the M/V SPEAR FLOWER (29,738 dwt 2003 blt Shikoku) has been sold for US$ 11.2m to clients of Pacific Basin while the older M/V ACE BRIDGE (28,419 dwt 1999 blt Imabari) has been sold to Greeks for US$8.5m.

In the Tanker S+P market, following a lengthy sales process the new building resale LR2 M/T WHITE STARS (114,700 dwt 2012 blt Samsung) she may have finally been committed to Greek Buyers. It is interesting to note that in the early stages of the process the ship struggled to receive indications in excess of US$ 40m and yet we now understand that a sale may have been agreed in excess of US$ 42m.

The M/T PACIFIC HARMONY (69,999 dwt 1999 blt Namura) reported sold to Bumi Armada for a price in excess of US$ 10m.

In the MR tankers, the Morfini-owned product carriers, M/T FANTASIA and her sister M/T ELECTA (51,433 / 51,118 dwt 2009 blt SLS) are committed to Mexican interests at US$ 28.5m each on subjects.

The LPG carrier “BRITISH CONFIDENCE” (54,490 dwt 2006 blt Mitsubishi) has been concluded at US$ 55m to undisclosed buyers.

NEWBUILDING

It has been a quiet week in the Newbuilding market with levels of new enquiry remaining relatively subdued and very few orders. This is not to say however that the market has been completely devoid of activity, but yet again that activity has been concentrated in the more niche areas of the shipping markets, such as Offshore, RoRo and the PCTC markets.

As has been previously mentioned many times, yards globally have had to come to terms with how to fill capacity after their rapid expansion over the past few years, and more and more have had to branch out into new areas to keep themselves fed in these lean times. With this in mind, we have continued to see a softening of pricing as the yards try and bring about a new supply/demand equilibrium where owners will again begin ordering, whilst trying to take what meagre offerings are currently available in the marketplace! However, with yards continuing to suggest they are now offering berths at direct cost, it remains to be seen how long this pattern can continue for or whether a new round of consolidation begins amongst the yards, as the on‐going challenges of the current market further takes its toll.

Korea has had more success than others in 2012 in managing to diversify into new areas and many of the major yards have continued to announce new business within the Offshore sector particularly and look to be making strong progress towards their order targets for the year end. With so much of the major yards revenues last year made up of these offshore projects, it continues to look like 2012, as predicted, will follow the same pattern.

In terms of reported business, Tskaos has returned to Sungdong to place an order for 1 option 1, 157,000 DWT Suezmax shuttle tanker with delivery pencilled in for October 2014. Hyundai Mipo have also reported with much fanfare the successful order of a 35,000CBM LPG Carrier from Japanese owner, JX Shipping with delivery expected in July 2014.

After rumours back in early October, it now appears that Siem Car Carriers have confirmed 2 option 6 x 6500 ceu PCTCs to be built at Weihei Samjin Shipyard with the first delivery expected in 2014.

Lastly, STX Finnyard have been able to announce that clients of Tui Cruises GmBh have now declared their option at the yard at a reported price of USD 607.5 million with delivery expected in 2015.