S & P

As the Capesize freight rates show further improvement this week, sale and purchase activity in this size continues to lead the second hand market. 

Clients of Coblefret have reportedly sold the Capesize Bulker M/V LOWLANDS PROSPERITY (169,150 dwt 2001 blt Hyundai Samho) to undisclosed interests for a price in the region of US$ 28.5m basis SS/DD passed in August.

It is also reported that clients of Korea Line have finally sold the M/V BEGONIA (180,265 dwt 2005 blt Imabari) for US$ 37.5m.

In the Panamax sector, the older M/V ALKMAN (66,221 dwt 1985 blt Japan) is sold to Chinese buyers at US$ 8m.

Lastly the woodchip carrier M/V PEARL VENUS (53,679 dwt 1989 blt Mitsubishi) has been sold for a price in the region of US$ 11m to undisclosed buyers.  

Nothing much to report on the Tanker S+P market.

The Croatian built M/T TIKHORETSK (40,791 dwt 1996 blt) reported sold to Norwegian buyers for US$ 11m.  

NEWBUILDING 

With the summer holiday period now drawing to a close - the market is starting to stir in preparation for the final portion of the year.

In Korea - there remain a number of outstanding options that are due to be declared over the forthcoming months - and this will have a bearing on how Korean appetite evolves. With the major yards having a good level of forward coverage now, pressure to continue to book business at cost competitive levels is somewhat diminished. However, potential lapsed production intensive options may free up capacity and create opportunities - and this will be something to watch.

In China - 2013 capacity continues to remain relatively abundant. State yards will drive price in the short term, as they attempt to fill outstanding forward capacity - and we anticipate that there will be a pocket of opportunity for owners to secure competitively priced tonnage from quality facilities - The private yards continue to struggle and it seems likely that Chinese shipbuilding capacity is poised to go through a major period of consolidation - as these yards fail to secure new business and struggle to compete at required levels.

In terms of reported business; Sungdong have won an order from the Japanese owner Nisshin Shipping for 2 x 82,000dwt Kamsarmaxes and vessels are scheduled to deliver in 2H 2012. This is not a new customer for the yard as Nisshin already have two vessels on order, one capesize bulker and one kamsarmax, which they originally contracted earlier last year.