S & P

Capesize spot earnings continued their rally, seeing close to a 17% rise. This has contributed to a sustained level of sale and purchase activity across the dry sectors. 

Most notably, undisclosed European Buyers purchasing the Far Eastern controlled M/V HARMONIOUS (174,350 dwt 2006 blt Shanghai Waigaoqiao) for a robust price in the region of US$ 38.5m. This is in line with the sale of M/V BEGONIA (180,265 dwt 2005 blt Imabari) at US$ 36m that reported last week.

In the panamax sector, clients of D'Amato di Navigazione are rumoured to have finally committed M/V MADDALENA D'AMATO (74,710 dwt 2001 blt Hudong S.Y.) for US$ 17.75m to Chinese buyers, the deal is apparently on Sellers subjects.

Chinese buyers are also behind the purchase a the German controlled Supramax resale Dolphin type 57k supramax, M/V WIKING delivering from Jiangsu Hantong Shipyard in November 2011 for an unconfirmed price understood to US$ 27.5m. Other supramax activity this week, includes the sale of the Japanese owned M/V FREEDOM LILY (56,056 dwt 2005 blt Mitsui SB) which we understand has now been purchased by Greek buyers at region US$ 25m level.

Greek buyers also reported that have purchased for prompt delivery 21st Century Hull 1003 (34,000 dwt 2011blt 21st Century Shipbuilding) at US$ 26m.

Turkish buyers have agreed to pay US$ 13m for the handy size M/V NEW ALLIANCE (27,904 dwt 1996 blt Hakodate). 

On the overage tonnage the M/V LORD BYRON (32,260 dwt 1985 blt Imabari) is sold to Russia based buyers at US$ 5.5m. 

In the tanker S+P market, despite a lack of actual sales in the larger sizes, that sector of the tanker space is seeing increased activity both in terms of ships available for sale and interest being shown. The VLCC segment continues to offer a number of candidates for sale in particular from Japan which is normally very careful to ensure there is never more than one ship available from this size range at any given time. Additionally opportunities on more modern vessels are coming to light and with rates showing little sign of recovery in the short term it will be fascinating to see what levels all these ships achieve.   

NEWBUILDING 

Whilst this week has seen some further reports of new business being concluded, it has for the most, continued in a similar vein to that of the past few weeks, with levels of new enquiry in the newbuilding market continuing to remain low.

This continued period of relative quiet, comes against the backdrop of an uncertain Global Economy. During the week and against concerns over the worsening European debt crisis and threat of a U.S. recession, the equity markets have continued to fall and since May this year have now shed approx 20% of their value, according to the MSCI World Index. With this in mind and even though pricing from China continues to remain relatively attractive it is perhaps unsurprising that owners have been tentative about making further moves into newbuildings.

To counter this, we continue to see the yards work hard on developing newer more efficient designs in all of the sectors, as they look to encourage further ordering. With the installation of energy saving devices, new engines and continued research into hull forms, the yards have continued to improve on their designs and with bunker costs continuing to remain high, these will no doubt appeal to potential new buyers. It will be interesting to see therefore how owners balance the general concerns of the market against the opportunity to order these new efficient ships at what can be considered, from China at least, to be relatively attractive market levels.

In terms of reported business; In Containers; Sea Consortium are reported to have placed an order at STX Dalian for 2 plus multiple options of their 2,000 TEU Container Ship design with deliveries due throughout 2013. Daesun meanwhile have won an order from Korea Ship Finance for 1+1 x their 1,000 TEU Design. The firm vessel is scheduled to deliver in April 2013 and is reported to have been signed at a price of USD 19.8 Mill.

In other sectors, Vroon are reported to have declared and signed their option for one additional 13,000dwt Livestock carrier with COSCO Guangdong. This vessel is due to deliver in 2014 and is reported to have cost approx USD 28 Mill. Finally, IHI are reported to have won an order from domestic owner Daiichi Chuo Kisen for 3 x 97,000dwt Bulk Carriers for delivery from Mid 2013 onwards, pricing details remain unknown.