There has been a week with robust activity in the secondhand and demolition market and more silent activity in the newbuilding business with levels approaching near to the number of secondhand transactions. In the bulk carrier segment, vintage tonnage looms as a fashionable investment the last days with the panamax tonnage being also on a high demand due to positive prospects in the coal trade. A preference towards Japanese built units is evident by foreign investors, which implies the trust of the shipping industry in Japan’s shipbuilding sector despite the contraction of ordering activity in their yards over the last two years as a response to more appealing newbuilding prices in South Korea and China. Overall, the week ended with 39 transactions reported in the secondhand and demolition market, while the highest activity has been recorded again in the secondhand market with 21 vessels reported to have changed hands.

SECONDHAND MARKET
In the secondhand market, 21 vessels reported to have changed hands this week at a total invested capital in the region of US$ 444.3 million, 2 transactions reported with undisclosed sale price. In terms of the reported number of transactions, the S&P activity has been marked with a 50% positive w-o-w change, while is up also by 50% comparable with previous year’s weekly S&P activity when again 14 vessels induced buyers’ interest with bulk carriers and tankers grasping 79% share of the total volume of S&P activity. In terms of invested capital, the most overweight sector for this week is the special projects sector, through the sale of 2 oil intervention vessels, grasping 49% of the total amount of money invested.

NEWBUILDING MARKET
In the newbuilding market, orders continue to dwindle as the week closed at similar last week’s levels with 19 new contractions posting a 5% week-on-week decline, with limited fresh activity in the main segments (bulk carriers, tankers/gas tankers and containers). The total invested capital estimated to be around $1,8 bn, with gas segment appearing the most overweight due to the new trend of last days towards LNG Floating Storage Regasification units. In terms of the reported number of transactions, the offshore segment has grasped the lion share of the total business (47%) as it seems that investors don’t loose their appetite for this type of investment. At a similar week in 2010, the newbuilding activity was standing almost at similar levels up by only 26% than current levels with 25 new contracts to have been reported worldwide and bulk carriers winning 37.5% share of the total volume of reported contracts.
In the bulk carrier segment, Taiwanese owner U-Ming Marine Transport Corp has doubled the amount of capesize bulkers it has on order for two 206,000dwt vessels at Shanghai Waigaoqiao Shipbuilding (SWS) to four units, as it prepares a 20-vessel expansion plan. The initial pair were said to have cost $60.5 mil each last summer.
In the tanker market, a new more MR order came to light by Gotland AB in Sweden, placed in China’s Guandzhou Shipyards, for delivery in late 2012 at a total cost of region $32,5 mil.
In the gas tanker sector, Hyundai Heavy Industries, the world’s biggest shipbuilder, has sealed a USD 500 million order to build the world’s first two new LNG Floating Storage Regasification units (FSRU) for Hoegh of Norway. This contract also includes an option exercisable by Hoegh to order two additional same-class LNG FSRUs. The 170,000 cbm LNG FSRUs, measuring 294 meters in length and 46 meters in width, can store 70,000 tons of chilled natural gas. These two vessels are scheduled to be delivered by the second half of 2013 and the first half of 2014 respectively, and will operate for 40 years. An official from the shipbuilding giant said, “We see this order as the beginning of the global LNG FSRU order trend. Considering more than 10 LNG projects are underway in countries including Brazil and Indonesia, we expect more orders down the road.” Furthermore, Royal Dutch Shell plans to install a second LNG-FPSO at the Greater Sunrise field in the Pacific.
In the container segment, rumours are suggesting that Daewoo yard is going to win 10 more 18,000 TEU containerships from AP Moller Maersk after signing a similar contract for 10 units in February.
In the offshore segment, 9 new fresh orders emerged with an order for a new generation semi submersible accommodation unit grasping the headlines of this week as the heaviest investment at a total cost of region $260 mil, placed in Keppel Fels yard of Singapore by Floatel International in Sweden for delivery in the first quarter of 2014.

DEMOLITION MARKET
In the demolition market, there is still uncertainty with the situation in the Bangladesh after the expire date of its extension on the onset of the July, while in India there seems to be lack of interest from the scrap buyers who have filled their yards with a sheer number of vessels coming for beaching the last weeks. Thus, this seems to be the time for China to bid in by offering attractive levels so as to secure more tonnage and beat the Indian subcontinent region. With the monsoon period being on way and the official announcement of Bangladesh’s budget for a 3% rise in import duty, there are fears that scrap levels may lower, while Bangladesh offers the best levels, $500/ldt for dry and $525/ldt for wet cargo, while in the Pakistan there has been one more quiet week with scrap buyers seem to have lost their appetite.
The week ended with 18 vessels reported to have been headed to the scrap yards of total deadweight 849,780 tons. In terms of the reported number of transactions, the demolition activity has been marked with a 80% week-on-week increase and regarding the total deadweight sent for scrap there has been a 47% increase. In terms of scrap rates, the highest scrap rate has been achieved this week in the bulkcarrier sector by India for a capesize of 149,581dwt “GLORY SHENZHEN” at 547/ldt incl 1900 tons of IFO on board. China this week has attracted 39% of the total demolition activity.  Comparing to last years similar week, activity remains at the same levels in terms of the reported number of transactions, with 18 vessels had been reported for scrap of total deadweight
435 mil tons with tankers being on the frontline grasping 33% of total business and Pakistan offering the highest levels $360/ldt for dry and $400/ldt for wet cargo, down by around $100-$150/ldt from current levels.

GREEK PRESENCE
The Greek presence appears absent this week from the newbuilding market, while is at very low levels in the secondhand market. In the secondhand market, Greeks invested in one aframax tanker which was acquired for $ 17.5 mil and one container of 4800teu for $ 52mil, however in includes a tc back for 5years at $ 27,000/d.