S & P

It has become a common theme over the last few months that Owners have been placing vessels on the market with specific ideas in mind only to find themselves retreating in the face of significantly lower offers. In most cases the Owners have eventually succumbed to the buyer¡¯s stance and sold at lower than desired levels. 

Having been available for over 3 months and after weeks of on/off sale rumours we can report that the Korean controlled MV BEGONIA (180,265 dwt 2005 blt Imabari) has finally been sold for US$ 36m to Hong Kong buyers, namely Clients of Winning Shipping. Owners originally hoped to achieve very high US$ 30s but found themselves briefly temporising having not got the expected price.

Clients of Triton Navigation are reported to have sold their Kamsarmax M/V TRITON OSPREY (81,448 dwt 2007 blt Universal S.B.). The vessel was placed for sale back in June of this year when owners were hoping to achieve levels towards the mid. US$ 30m. When it became apparent that Buyers were not there to pay such a price the owners considered fixing her for period employment instead. However, the sale is now confirmed to Greek interests at US$ 28m on a charter free basis. In the Supramax sector, the Japanese owned M/V YOUNG SPRING (53,023 dwt 2002 blt Oshima S.B.) is understood to have been sold at region US$ 22.3m to Indonesian interests.

The Kanda box hold type M/V ALADDIN RAINBOW (32,260 dwt 1999 blt Kanda) reported sold to Greek interests for US$ 16m.

On older tonnage, handymax bulk carrier M/V POSEIDON V (41,373 dwt 1984 blt Nipponkai H.I.) has been sold for US$ 5.5m to F. Eastern buyers. The price looks on the low side and this could in part be explained by the fall in values over the last few months but also reflects the lack of buying interest for vessels beyond the 1985-1986 year of build.

Lastly, after an earlier sale to Syrian buyers which was not materialised, Chinese buyers have committed M/V ARAUCARIA N (25,357 dwt 1984 blt Imabari S.B.) for US$ 4.55m basis dd due in February 2012. 

The end of the Summer has bought about a pick up in Tanker Sale and Purchase activity and we can report a number of sales including some interesting enbloc transactions. 

The MR M/T HIGH CENTURY (48,710 dwt 2006 blt Iwagi Zosen) reported sold at US$ 28m to c/o TMN Co who are part of the Nathalin Group of Thailand.

Of further significance this week has been the sale by c/o Ship Finance international of two S/H VLCC and one D/S VLCC to Brazilian buyers with the likely intention of conversion to FPSOs.The ships in question are the M/T TITAN ORION (284,480 dwt 1992 blt Hyundai H.I.), M/T TICAN OCEAN (284,497 dwt 1992 blt Hyundai H.I.) and the Double Sided M/T TITAN ARIES (302,493 dwt 1993 blt Daewoo). The TITAN ORION will be delivered in first quarter of 2012, with the TITAN ARIES and TITAN OCEAN following by the end of 2012. The enbloc price is reported at usd 72.7 million, a 35% premium to demolition prices today.

Two IMO II/III chemical/product tankers, M/T ROYAL ORION and M/T ROYAL STELLA (19,997 dwt 2009 blt Sekwang) that had been arrested in Singapore on behalf of the Korean Woori Bank, have been sold at a judicial sale for around US$ 20m each to Greek buyers.    

NEWBUILDING 

The newbuilding market has continued to remain relatively quiet this week with only modest levels of enquiry being witnessed. Owners, for the most part, remain cautious in making moves as they wait to see how the pricing story in China develops. That being said however, this week has seen reports of various new orders being placed, although in general are in slightly more niche sectors, but at least does suggest that some are prepared to move.

Whilst supply will always be a driving factor in pricing movements it is not the sole factor .With economic factors continuing to remain relatively bleak, including the ongoing European Debt crisis and a general lack of confidence in the world market, there has been an increased reticence amongst owners to order. This drop off in demand is yet another challenge the yards are having to face as they look to fill their capacity and with some now voicing an inability to continue to take orders at current price levels, it again suggests a period of consolidation may be necessary in the upcoming months.

In terms of reported business; NSCSA are reported to have ordered a further two 26,000dwt Specialised general cargo vessels for delivery in 2013 and 2014. These vessels are understood to be the declared options of the order for 4 vessels which was placed early this year at a price of circa USD 65.8 mill per vessel. Shandong Huanghai have won an order from NS United Kaiun Kaisha for 2 option 2 x 13,000dwt General Cargo Carriers at a price in the region of USD13.5 Mill with deliveries provisionally scheduled in 2013.

In Tankers; clients of Zodiac Maritime agencies have been reported as returning to Kitanihon Zosen for up to 6 x 19,800dwt Chemical Tankers with deliveries expected in 2013 and 2014. Meanwhile, Singaporean owner Panoil Tanker have placed an order for two small 4,800dwt product tankers at Chengzhou Shipbuilding delivering within 2H 2012.

Finally, we understand Guangdong Lanyue have placed an order for up to 10 x 76,000dwt Panamax Bulk Carriers at Zhejiang Yangfan, with deliveries expected to begin from 2H 2013 onwards. We understand that the deal itself was in fact signed back in July this year and is only now coming to light. Pricing has not been revealed.