S & P

In the Capesize sector a Korean domestic transaction took place. M/V OCEAN CHALLENGE and M/V CONCHES (abt 180,000 dwt 2011 blt Korea) reported sold to SK shipping at US$ 58m each. Sale includes a 3 year timecharter to Swiss Marine at US$ 27,700 and 26,000p.d. respectively.

The Panamax, M/V CORAL SEA (73,939 dwt 1997 blt Tsuneishi) has been sold by NYK to Holbud Shipmanagement for US$ 15.8m.

The Japanese owned open/box hold type M/V VENUS FRONTIER (23,956 dwt 1996 blt Kanda) which passed special survey in June, is reported sold for US$ 10m  

In the Wet S+P side, activity was again limited this week.

The sale has been arranged to her long term timecharterers DSD, Norway of the non-IMO product carrier M/T STAVANGER EAGLE (45,898 dwt 2004 blt Shin Kurushima) just prior to declaration of bankruptcy of the Japanese sellers, Eagle Holdings. The price agreed was around US$ 23.5m. 

 NEWBUILDING 

The newbuilding market has remained relatively quiet this week as owners gradually begin to return from their summer holidays. This summer though has been a particularly quiet one, the newbuilding figures for July suggest only 67 contracts were placed and this is in comparison to a monthly average of approx 112 Vessels during 2011. Whilst this diminished level of activity is certainly not unusual for this time of year, when it is compared to last years figures of approx 195 vessels in the same month, it serves to highlight the very different structure of the newbuilding market this year.

As we know, the ordering this year has been dominated by smaller numbers of higher value vessels and this should be taken into context when thinking about these latest figures. With much (though not all) of this high value demand having now been sated however, the market looks poised to search out fresh opportunities. As mentioned last week, the major Chinese yards look particularly eager to fill their 2013 capacity and with pricing now moving more into line with owners thoughts we may see this capacity begin to fill.

This story will be one to watch however, as some of the yards remain less willing to react on their pricing levels, due in no small part to the further erosion of their already diminished margins. As such and if Owners, either domestic or export, do begin to move at the current levels, then these yards may risk missing this first wave of ordering. The concern then becomes that If the demand at current pricing levels is only limited, this will place further pressure on these yards and will make the latter stages of the year a much more challenging environment for them.

In terms of reported business Messrs Da Tong Shipping of China have placed an order for a pair of Kamsarmaxes at New Times Shipyard, the price is understood to be around USD 31 Mill and delivery from 1Q 2013. In Tankers Clients of Chios Navigation of Greece have ordered a pair of 52,000dwt products tankers at Hyundai Mipo, it is understood that pricing is just over USD 37 Mill and delivery in February and May 2013. It is understood that these have been ordered against a five year charter to Unicorn, which understand around USD 15k per day with a profit split above and beyond that.