S & P

This week has seen little in the way of Dry 'Sale and Purchase' activity. 

In Handymax sector, the M/V NIKKEI EAGLE (45,347 dwt 1995 Oshima) is reported sold to Chinese buyers at a price region US$ 15.6m. 

M/V LUCKY PEARL (34,560 dwt 1984 blt Mitsubishi) is reported sold for US$ 4.8m to Chinese buyers basis delivery with drydocking due.

At a judicial sale in Gibraltar the M/V FIDEL (26,400 dwt 1982 blt UK) is sold to Middle Eastern buyers for US$ 2.75m. 

In the Wet S+P side, activity has also been limited this week.

Indonesian buyers have purchased the Russian-built product carrier M/T INDRA (33,115 dwt 1994 blt Russia) with drydocking due in November for US$ 5.5m.

The stainless steel M/T CHEMSTAR BELLE (19,663 dwt 2003 blt Japan) reported sold to MTM, Singapore for US$ 21m.

The M/T KATERINA M (13,937 dwt 1998 blt Inchon) is reported as sold for US$ 6.8m to undisclosed buyers.

The IMO 3 product tanker M/T SAINT MICHEL (6,711 dwt 1998 blt Japan) reported sold to Greek based Buyers for USD 4.2m - 16% less than the USD 5.0m they were looking for back in May. 

NEWBUILDING 

With the Korean yards due to return from their holidays next week and resume construction within their facilities, we hope the lull in the market as witnessed this week will be short lived and contracting will again begin to pick up. Of course with many Owners away for their own summer vacations this may take a little longer to really get going again.

Whilst the newbuilding market has been understandably subdued this week the Global Financial Markets have not. The Bank of Japan has again waded into the markets in an attempt to stem the appreciation of the Yen. Whilst this was effective on the day, seeing a 3.5% reverse swing it remains to be seen what the long term effect is on the currency. This intervention will likely give the Japanese yards some comfort in the knowledge that the Japanese export market has not been completely forgotten by its Government, however until there is a significant depreciation in the value of the Yen back to levels witnessed last in 2010 in the 90s (yen per dollar) then it is likely the Japanese yards will  continue to struggle to compete with their Far East rivals.

This intervention has not however been the only source of news in the Financial markets with both uncertainties in Europe, along with a certain deadline in the US adding to a great deal of turbulence and a seeming loss of confidence. We will need to wait and see whether this uncertainty in the market (and the conservative investment attitudes that typically follow) will have an effect on the Ship building market, as both owners and shipyards return from their vacations and take stock for the remainder of the year.

In terms of reported business; as mentioned it has been a quiet week however SPP are reported to have won a contract from an unknown European owner for 2 x 50,000dwt Product Tankers. These vessels are provisionally scheduled for deliveries within 2H 2013 though pricing has not been confirmed for the moment.