S & P

Steadily declining spot and period earnings (especially on the larger vessels) have resulted in the majority of potential Buyers still being unwilling to purchase just yet. Whilst there is a fair level of purchase enquiry and vessel inspections are taking place, "would be" buyers are generally opting to wait for signs of some stability in the market prior to moving. This lack of firm buying appetite, together with sliding earnings, has lead to a continued reduction in price levels across the dry sectors. With a growing number of vessels coming for sale from Japanese Sellers advertising that they will be sold simply at best obtainable prices, we may well see an increase in activity in the forthcoming week(s). 

The Cosco handymax M/V GRAND VIEW (43,980 dwt 1994 blt Daewoo) is now reported sold for US$ 13.8m to Bangladeshi buyers.

The open hatch/box shaped M/V POLARQUEEN (24,993 dwt 1999 blt Imabari) is sold at slightly excess US$ 13m to German interests;

The M/V NEW ALLIANCE (27,904 dwt 1996 blt Hakodate) sold for US$ 13.5m.

M/V AMNA S (25,525 dwt 1985 blt Imabari) reported sold at US$ 5.4m to Chinese buyers. The Greek controlled handysize bulker M/V ADVENTURER (27,622 dwt 1984 blt Mitsui SB) is reported to have been committed to undisclosed interests for US$ 6m.

M/V ARAUCARIA N (25,357 dwt 1984 blt Imabari) sold for US$ 4.75m while the four years older M/V SEA POWER (23,878 dwt 1980 blt Kurushima) sold to Syrian buyers for US$ 3.6m. 

In the tanker S+P market, clients of Carboflotta have sold the double hulled M/T ECO EUROPA (149,258 dwt 1994 blt Fincantieri) for US$ 13.8m, the exact buyers are not yet known but market rumours suggest she has gone to Middle Eastern interests. In April the vessel was committed to storage buyers for US$ 18m but they failed to lodge the deposit and the deal subsequently failed. Following inspections in Singapore this month, principals of Mitsubishi Tankers have committed the M/T PACIFIC VIRGO (106,681 dwt 1998 blt Koyo) to undisclosed buyers for US$ 18.5m.

Principals of International Andromeda Shipping have sold the imo iii M/T YELLOW STARS (37,269 dwt 2005 blt Hyundai Mipo) to Ultragas for region US$ 25.5m. This sale, when compared to that of the ex 'CAPE BILBAO' (39,999 dwt 2006 blt Hyundai) which was sold back in February to Greeks for US$27m, highlights the fact that (unlike many other sectors) values for quality handysize tonnage have remained firm throughout 2011.

NEWBUILDING 

With all the Korean Yards on Holiday from this evening, they will no doubt be reflecting during their summer break on the good level of turnover they have achieved during the first half of the year from the various orders they have taken. This has typically been achieved by signing up on the big value projects, not only in the LNG and offshore sectors, but also with many large scale container projects.

Whilst the story of year to date has very much been about the larger container ships, we do believe that as the week¡¯s progress post holidays that we will start to see increased activity in the 1-3,000 TEU sector. This sector typically operates an older fleet and with the orderbook currently sitting at well below 10% of the existing fleet, it does seem as if this sector might prove interesting for potential new orders going forward. Whilst it is very clear of the great economies of scale that can be achieved on the long haul routes by the behemoths that have been contracted so far this year, it should also be clearly noted that the feeding off from these large ports to the smaller inter regional trades will require a greater level of these feeder ships. Thus as the Year progresses, it will be interesting to see how this story develops further.

The story of business being concluded continues to be that of the Container and LNG sectors this week, with Clients of Cardiff Marine Inc inking 2 + 2 x 160m3 LNG Carriers at DSME in Korea for delivery from the second half of 2014. Clients of Technomar Shipping, Greece are also understood to have contracted 2 + 2 x 6,700 TEU with Hyundai Samho for a price in the low/mid USD 70 Mills. Delivery for these ships will commence in the first half of 2013 and whilst this deal is now being reported, we believe it to have been concluded a few months ago. The Japanese Yards have shown some good signs of life with two separate orders reported there this week. An unknown Domestic Owner is reported to have placed an order for two neo Supramax 66k dwt bulkers with delivery commencing from the end of 2013 at Mitsui Shipyard, no price as yet is known for this order. The specialist Chemical Tanker Yard Kitanihon Zosen has diversified itself further by now reportedly taking an order for a pair of 28,000 dwt handysize bulkers for Clients of Unison Marine Corp.

In Tankers Aker Philadelphia seem to be in close negotiations with the Jones Act Specialist subsidiary of ExxonMobil, Messrs. SeaRiver Maritime for a pair of Aframax tankers for delivery in 2014, however it is not know as yet if this has finally been concluded with contracts signed. Finally the small Bangladeshi Yard Western Marine Shipyard Ltd, have take an order for four Edible Oil tankers for their local Owners Messrs. Nurjahan Group.