Ship owners have kept up a healthy level of enquiring for newbuilding contracts, but with the exception of a few container ship orders, for the most part they have refrained from placing more orders. Clarkson Hellas siad in its latest weekly report that "we continue to see general enquiry across the market, with the focus still on fuel efficient tonnage regardless of the sector in question". The shipbroker continued its analysis by noting that "the challenges being faced by the shipyards this year are well known and as reported last week the overcapacity of supply from the yards has certainly contributed to the softening of pricing witnessed throughout the year. In an effort to counter this we continue to see a shift in the strategies of the yards. Many having increasingly looked to limit or slow down their production processes to help alleviate this supply driven pricing pressure and across the regions, including within China, we have seen an increasing drive to broaden product ranges to help alleviate any single sector reliance. It will be interesting to see within the remainder of the year, whether these strategies reap dividends and pricing holds at a more steady level through till year end" said Clarksons.
In terms of ordering; In Dry, Norden announced that they had recently placed an order for an ice classed Panamax Bulker within Japan. No other details have yet been released and they have declined to name the yard in question. As has been the case in recent years, the Dry bulk market has remained a key focus for Japan and this year has now seen over 60% of their 2012 orderbook being placed within this sector. The Japanese yards continue to remain at the forefront of efficient design development and this will continue to be a key factor for them as they work to overcome not only the existing challenges of the global market but the additional challenge of the continuing strength of the Yen.
As mentioned however, the bulk of the reported business this week has been within the Container sector; Clients of Aeolas Management are understood to have placed an order at Hanjin Subic, in the Philippines, for 2 x 6,800 TEU container carriers with delivery of both vessels scheduled within 2014.
Pricing of these two vessels is understood to stand at circa USD 57 Mill per vessel. STX Shipbuilding meanwhile are understood to have won a new order from Korea Marine Transport Co. (KMTC) for 1+1+1+1 x 5,000 TEU containerships. The firm vessel is provisionally scheduled to deliver within 1H 2014 and pricing is understood to stand at USD 44.5 Mill per vessel. In addition to this STX have also announced they have agreed to switch an existing order for an existing client of theirs (understood to be Fratelli D’Amato) from 1 VLCC to 2 x 9,200 TEU Container ships at STX Jinhae. A new contract price of USD 176.3 Mill for the pair has been announced, although the new delivery position has not been set.
Meanwhile, in terms of the sale & purchasing activity in the second hand market, Clarkson Hellas noted that it has been a busy week in the drycargo market. "In the Capesize sector, it is being reported that clients of Berge Bulk have acquired the M/V CAPE CAMELLIA (172,502 dwt 2000 blt NKK) in a direct deal from K-Line for a price of US$ 17.5m. This is in fact an older deal, however the price is still in line with the recent sale of the “GREAT PHEASANT” which was committed last week for the same levels. An older capesize, the M/V CAPE AUSTRALIA (149,512 dwt 1990 blt CSBC) has been sold in a trading deal for US$ 7m to clients of Winning Shipping. Trade & Transport are reported to have purchased the Kamsarmax sister vessels M/V NORD AQUARIUS (81,800 dwt 2011 blt Guangzhou Longxue) and M/V NORD AQUILA (2012 blt) for US$ 43m en bloc.
The M/V NORD MERCURY (77,171 dwt 2008 blt 2008 Oshima) was sold in a quick, offmarket deal to client of Oldendorff Carriers for a reported price of US$ 18.4m. It is understood that the Buyers waived inspection of the ship.
Elsewhere in the panamax sector, the M/V HALO CYGNUS (73,937 dwt 1998 blt Tsuneishi) is understood to have been sold by Mitsui O.S.K. to Greek buyers for US$ 8.7m while the M/V MARINA WAVE (69,451 dwt 1992 blt Hashihama Zosen), has been sold for US$ 5.1m to undisclosed interests.
In the handymax sector the M/V IZOLA (45,916 dwt 1997 blt Halla) has been committed by clients of Splosna Plovba to Greek buyers for a price of US$ 9.5m.
There is very little in terms of sales activity to report this week in the Tanker S&P market.
The M/T SAFFRON I (32,040 dwt 1999 blt Daewoo) has been sold to traders specialising in West African business at US$ 8.2m basis a prompt charter free delivery. The ship was particularly shallow drafted with decent cubics which make her suitable for trade in the Nigerian region. The IMO II/III sister vessels M/T DIPLOMAT and M/T NEGOTIATIOR (13,000 dwt 2007 blt Sekwang) reported sold to buyers in Turkey for US$ 12m each" the report concluded.