S & P
An active week for Dry S+P market with much interest focusing in the Panamax sector.
A prompt delivery (within July) newbuilding M/V SULAWESI (82,500 dwt 2013 blt Wuhu Xinlan) is committed to Greek buyers for US$ 26m.
The Panamax M/V SHOYO (76,942 dwt 2006 blt Namura) is committed to Greek buyers at a price in excess of US$ 20m while the one year older M/V IKAN KEMBONG (76,447 dwt 2005 blt Tsuneishi) is committed for US$ 17.7m basis drydock survey due in August. The geared panamax M/V MP PANAMAX 4 (69,925 dwt 1995 blt Sanoyas) reported sold to undisclosed buyers for US$ 7.5m.
Clients of U‐Ming Marine Transport have agreed the sale of M/V ASIAN GLORY (45,194 dwt 1996 blt CSBC) to Chinese buyers for US$ 7.8m.
M/V PIONEER STAR (33,540 dwt 2004 blt Shin Kurushima) has been sold to Russian buyers for around US$ 14.6m. Otherwise M/V ORIENTE GRACE (22,020 dwt 1994 blt Saiki) sold for US$ 4m to Chinese and undisclosed buyers are paying US$ 4.4m for M/V ASIAN GRACE (20,412 dwt 1999 blt Wuhu).
In the Tanker S+P market, Japanese Owners have now sold the pump room type MR M/T HIGH ENERGY (46,874 dwt 2004 blt Naikai) at region US$ 16.3m to undisclosed buyers while the similar M/T PACIFIC OASIS (47,999 dwt 2004 blt Iwagi) has been committed at US$ 17m.
D’Amico International Shipping have sold the 2x 1999 built MR Tanker M/T HIGH SPIRIT and M/T HIGH CHALLENGE (abt 46,500 dwt 1999 blt Daedong) which continues their programme of selling out older tonnage as they expand their New Building Programme. The two ships are rumoured to have been sold to Russian interests at region US$ 12.2m each.
Another active week in the newbuilding market, with new orders again particularly focussed in the dry bulk sector. Away from dry we have seen a number of further orders being placed in the MR and LR2 coated tanker markets and further orders being reported across the gas, container and even into the small cruise market. Starting with dry, and we have seen Clients of Diana Shipping contracting two firm 208,500 DWT Newcastlemax bulk carriers at Jiangnan. These orders, understood to have been signed last week and both are lined up for delivery in the second quarter of 2016. Pricing was reported at USD 48.7 Mill. Although signed in April, it has also been reported that Cargill International has contracted three firm 180,000 DWT at SWS with delivery of all vessels in 2015. Meanwhile, it is understood that Clients of Laskaridis have placed an order this week for two firm plus two option 82,000 DWT Kamsarmax at Penglai Jinglu. Delivery of both the firm vessels and options are planned for 2016. Further to this order, it is also understood that Clients of Laskaridis have placed an order for an additional 4 firm 64,000 DWT Ultramax at the same shipyard, with delivery in 2014 and 2015.
The coated tanker market has seen further ordering this week, which has been focussed on MR and LR2 sectors. Clients of Flagship Marine Ventures are reported this week to have placed orders for two firm plus two option 114,900 DWT LR2 product tankers at DSME. Although pricing was undisclosed, delivery of the firm vessels is planned for the first quarter of 2015 and options also in 2015 if declared.
Additionally Clients of D’Amico are understood to have declared the 7th and 8th options in a series of 50,000 DWT MR product/chemical tankers at Hyundai Vinashin. The declared options are due for delivery in the third quarter of 2015 and to be IMO 2/3 grade.
In the container market, this week it was reported that Jinhai Heavy has taken an order for a total of ten 8,800 TEU container carriers from SinOceanic Shipping. Pricing remains undisclosed, however delivery is spread from the middle of 2015 to the end of 2016. There have also been unconfirmed reports of a single gas ship order this week with Epic Shipping understood to have contracted a single 5,000 cbm LPG carrier at Murakami Hide. Finally, Brodosplit Plovidba were reported to have placed an order for a single 2,000 DWT Cruise ship for delivery in 2015 at Brodosplit.
In the dry sector, this week’s reported ordering has been focussed primarily on smaller sizes with Handysize and Supramax seeing the majority of orders. The Japanese yards appear to have had their fair share of the orders this week with JMU Yokohama contracting two 61,500 DWT Supramax for Oldendorff Carriers with delivery of both vessels in the second half of 2014. This week it has come to light that Norden have increased their orderbook with contracts for a further four 56,000 DWT Supramax. These vessels, thought to have been committed in the first quarter of this year, are planned for delivery in 2015 with the orders split across a number of Japanese yards.
Notable ordering in the Handysize sector this week starting with D’Amico Ireland extending their orders at Zhejiang Yangfan by declaring an option for the 7th 39,500 DWT in the series. Delivery of this newest vessel is lined up for 2015 with pricing in the region USD 22.3 Mill. Transbulk have continued the ordering at Yangfan placing a contract for two firm and two option 39,500 DWT Handysize with delivery of the firm vessels in 2015 and pricing in the region USD 23 Mill. Korean owned Chinese facility, Weihai Samjin is understood this week to have taken an order for four firm
plus four option 36,700 DWT Handysize from German owner Vogemann, taking the yard’s Handysize orderbook to over 20 vessels. Pricing is understood to lie in the region USD 22.3 Mill and delivery of the firm vessels from end of 2014 and options in 2015 if declared. Lastly in dry, Wisdom Marine Lines are reported to have placed an order for a single 35,300 DWT Handysize at Tsuneishi Zhoushan with delivery in early 2015.
There has been limited activity away from dry cargo this week, with a single order for 8,000 DWT General Cargo vessel for POSCO at Chonhaiji and two 1,500 DWT Passenger/Car Ferries from Canadian owner Societe des Traversiers du Quebec at Canadian yard Davie Industries. The latter vessels, which will have capacity to carry 800 passengers and 180 cars, will also interestingly be LNG fuelled with delivery from mid‐2015.
S & P
A Kamsarmax resale from the Chinese shipyard Wuhu Xinlan SDARI 82k design M/V SUMATRA (Hull No. W1021 – 82.500 dwt 2013 blt) which had completed sea trials and ready for prompt delivery, reported sold to clients of Golden Ocean for region US$ 25m.
In the Supramax sector, the resale YANGZHOU DAYANG DY4012 (63,500 dwt June 2013 blt) reported sold to undisclosed Greek buyers at US$ 25.1m.
The Japanese controlled M/V VALENTE ACE (56,678 dwt 2008 blt IHI) after inspected by 6 buyers during her SS/DD in Naikai, Japan, understand she is committed to Greek buyers for US$ 20.5m. Other activity in the segment includes the sale by clients of Glocal of M/V GL PRIMERA (58,758 dwt 2007 blt Tsuneishi Zhoushan) which passed SS/DD in October 2012 for a price in the region of US$ 18.5m to European interests.
In the Tanker S+P market, it is reported that DK Maritime of Korea have sold the VLCC ‘BLUE JADE' (320,105 dwt 2012 blt Daewoo) to conversion Buyers for use in the offshore sector. We understand that Buyers have paid region US$ 74m.
In the Aframaxes, the M/T OLYMPIC SERENITY (96,733 dwt 1991 blt Sumitomo) is sold to Middle Eastern buyers for region US$ 8m.
The LR1 M/T STARLING (73,723 dwt 2008 blt New Times) has been sold to Greek buyers for US$ 24 million. The M/T MORNING GLORY VII (73.980 dwt 1999 blt Onomichi) is sold to Econav for US$ 8.7m.
Having declarer a purchase option, Odfjell paid US$ 23m for the stainless steel chemical tanker M/T BOW ENGINEER (30,086 dwt 2006 blt Kitanihon); the vessel is on charter to Odfjell with another 5 years to run.
This week has seen a moderate number of orders being reported with activity focussed on the smaller sizes in dry and containers and further orders in the MR sector. Handysize ordering activity has been relatively subdued so far this year compared to the larger Capesize and Supramax sectors, which have both seen a considerable number of orders. This week has seen the first reported order for the new Handysize design from the SDARI design house in China. It was reported that Clients of German owner Peter Dohle placed an order for three firm and two option 38,800 DWT SDARI Handysize at Jiangsu Hantong. Although pricing was undisclosed, delivery of the first vessel is understood to be in the second quarter of 2015 with subsequent vessels at 2 month intervals. This sector saw further orders with Uni‐Asia Finance Corp reportedly contracting three firm 37,000 DWT Handysize at Japan’s Imabari. Delivery of the vessels is understood to be planned for one vessel in each 2014, 2015 and 2016 and pricing was reported at USD 24.33 Million.
Further MR orders to report this week with Dong‐A Tanker Co. adding a further two 50,000 DWT MRs at Hyundai Mipo. This takes their total orders at the yard to four firm vessels, with these latest declared options understood to be for delivery in the first quarter of 2015. Pricing was reported at USD 32 Mill.
Apart from orders for two MRs for Gestion Maritime and one of MRs on order by D'Amico, these vessels will be the first reported MR orders at HMD which are due for delivery in 2015 rather than the balance of the orders which are due for delivery this year and 2014. As we have clearly seen over the past months, the remaining capacity for 2014 at the key
Clarkson Plc (CKN), the world’s largest shipbroker, began publishing new shipping rates, discontinued others, and revised historical ones to reflect changes including fuel consumption across the maritime industry.
Among its alterations, the broker halted publishing rates for oil tankers built in 1990 and began assessments for vessels built three years ago, Calum Kennedy, a Clarkson analyst in London, said by e-mail today. Ships previously defined as “modern” were recategorized as constructed around the year 2000, allowing the broker to maintain some of its older data.
The amended rates in part reflect a requirement for oil tankers and ships carrying dry-bulk commodities to burn very- low-sulfur fuel, or bunker, when entering ports within the 27- nation European Union, Kennedy said by e-mail today. The additional assessments also span new routes for oil-product tankers and changes to existing round-trip voyages.
“We are factoring in the additional bunker cost which owners trading into Europe and the U.S. are faced with, at a time when higher bunker prices are at the forefront of everyone’s minds,” Kennedy said by e-mail. “This reduces earnings, as one might expect.”
A supertanker previously defined by the broker as “modern” earned $30,857 since the start of 2009. The same ships built in 2000, the closest comparison under Clarkson’s new methods, made $22,716 over the same period. The ClarkSea Index, a gauge of industrywide earnings, averaged $11,975 since the start of 2009, 3.1 percent less than under the old methodology.
Fuel costs rose 1.8 percent to $608.58 a ton on April 19, according to data compiled by Bloomberg.
S & P
Offers were invited on Wednesday of this week on the Asahi Shipping controlled M/V BRILLIANT RIVER (149,999 dwt 1994 blt Namura). We understand the vessel has gone to a further trading undisclosed buyer at a shade over US$ 9m for delivery in June in China.
In the Kamsarmax segment, the M/V BRILLIANT TRADER (87,144 dwt 2006 blt IHI) understand is committed to Greek buyers at US$ 18.8m while the resale TSUNEISHI ZHOUSHAN SS-132 (81,600 dwt 2013 blt) is also gone to Greek buyers for US$ 28m.
Greek buyers also acquired the M/V ALICIA (63,400 dwt 2012 blt Yangzhou) at US$ 25m, the resale
open/box OSHIMA 10646 (55,200 dwt 2013 blt Oshima) at US$ 26m and the M/V NEW LIGHT
(28,616 dwt 2002 blt Imabari) at US$ 11.1m.
Not much to report in the Tanker S+P market.
In the LR2 segment, the M/T EAGLE ALBANY (107,160 dwt 1998 blt Koyo) reported sold to Far Eastern buyers at US$ 9.5m.
The M/T KALTENE (37,261 dwt 2003 blt Hyundai) sold to Greek buyers for US$ 12.9m.
This week has been somewhat quieter than the last, nevertheless the newbuilding market has remained buoyant with continued ordering across all major sectors and ongoing focus on Capesize within the Dry market and MR and LR2 in Wet. Following the significant ordering levels seen so far this year in particular in these sectors, over 50 firm Capes and close to 20 firm LR2 orders, remaining capacity for 2015 is scarce with the majority of yard now looking towards 2016 delivery. That said, with market pricing at historically low levels, key yards now appear to have satisfied the minimal level of ordering to maintain production for at least the next 24‐30 months, and we see less of a drive currently to push 2016 deliveries. This could give the shipyards in the East some breathing space to hold back from taking low value or loss making orders in the hope that the freight market will improve and newbuilding prices will begin to firm. As we move into the second quarter of 2013 it will be particularly interesting to see whether the newbuilding activity seen so far this year continues, and if so whether this is driven by increased demand for newbuildings or the yards continuing to offer historically low pricing.
In the dry bulk market the Capesize ordering has continued, however now focussed towards the
smaller sizes rather than conventional 180,000 DWT or larger Newcastlemax. A total of nine orders have been reported for 150,000 DWT Capesize at three different Korean shipyards for eventual long term charter to KEPCO. Both SK Shipping and Hanjin Shipping each placed orders for two firm 150,000 DWT Capes at Sungdong, with all four vessels lined up for delivery in 2016. Hanjin Heavy (Busan) received an order for a further three 150,000 DWT Capesize from Hyundai Merchant Marine for delivery in 2015. And finally, STX Pan Ocean placed an order at STX Shipbuilding in Jinhae for a further two 150,000 DWT Capes for delivery at the end of both 2015 and 2016. Although understood to have been signed last month, this week we are reporting further orders for Sinopacific’s Crown 63, which according to our records brings the total number of this design on order to 16 vessels. Although understood to have been singed last month, it has come to light that Sinopacific Group’s Dayang Shipyard has taken a further order for two Crown 63 Ultramax from an undisclosed buyer with delivery in 2014.
Similarly to last week, the tanker newbuilding market has been busy with further orders for MR and Aframax/LR2. STX Shipbuilding took an order for 4+4+4+4 113,000 Aframax from Clients of Teekay Tankers, with delivery of the firm vessels in second half of 2015 and early 2016. It is understood that these orders include an option for whether the vessels are coated for trading products. Clients of East Med Maritime ordered four firm 113,000 DWT LR2s at DSME Mangalia, all for delivery in the first half of 2015. A joint venture between Stena Bulk and Weco is understood to have declared options in a series of 50,000 DWT IMO2 Chemical Tankers at Guangzhou Shipyard, taking the total order to 10 firm vessels. Pricing was reported at USD 38 Mill per vessel with delivery in 2015. Away from the yards in the East, Croatia’s Brodogradiliste Trogir is understood to have contracted two 49,500 DWT IMO Chemical Tankers for charter to Songa, with delivery of the vessels in 2015.
In the gas market, a joint venture between SK Shipping and Marubeni have placed orders for two 180,000 CBM LNG carriers at Samsung with a reported price of USD 230 Mill per vessel and delivery in the latter half of 2017. Finally, looking at container newbuilding, Heung‐A Shipping have placed an order at Japan’s Kyokuyo Shipyard for a single 1,103 TEU container carrier with pricing at a reported USD 21.5 Mill and delivery in Q1 2015.
S & P
Another busy week for the Dry S+P market with Greeks being once again the front runners.
The Japanese-controlled kamsarmax M/V MICAELA DELLA GATTA (82,790 dwt 2006 blt Tsuneishi) understand is sold to Geek buyers for circa US$ 18m.
In the panamax segment, the Eiko Kisen controlled M/V CREST VOYAGER (76,255 dwt 2005 blt Tsuneishi Zosen) reported sold to Greeks US$ 15,9m.
The M/V PANAMAX CHALLENGER (78,000 dwt 2013 blt Sanoyas) reported sold to undisclosed buyers for US$ 29m.
Following their arrest by Commerzbank in early February, the panamaxes M/V KING COAL (72,873 dwt 1997 blt CSBC) and M/V FEARLESS I (73,427 dwt 1997 blt Hyundai) have been sold at auction in Hong Kong. The first understand is sold to Greek buyers for US$ 6.25m while the later to Chinese at US$ 6.7m.
In the handymax sector, the mid 90’s built vessels have seen some activity. The M/V HONESTY OCEAN (47,240 dwt 1997 blt Oshima) has been committed to Greek interests at US$ 8.25m while for M/V ROBERT SCHULTE (48,225 dwt 1997 blt Oshima) undisclosed buyers have paid US$ 8.5m. The M/V C.EMERALD (42,174 dwt 1994 blt Oshima) is sold for US$ 6.5m.
The Capital Ship Management controlled M/V SAN SIMEON (29,302 dwt 1997 blt Hudong) is understood to have been sold to an undisclosed buyer for a price of circa US$ 5m.
The M/V AFRICAN ORYX (23,935 dwt 1997 blt Shanghai) has been sold by clients of Seanergy Maritime to undisclosed buyers for levels of region US$ 4 million with SS/DD due.
In the Tanker S+P market, the AET’s VLCCs “EAGLE VALENCIA” (306,999 dwt 2005 blt Samsung) and “EAGLE VENICE” (309,164 dwt 2005 blt Samsung) reported committed at region US$ 40m each to Greek buyers. In the MR sector, a pair of IMO 3 ice class 1A product carriers, the M/T IVORY POINT and M/T INDIGO POINT (50,922 dwt 2007 blt STX) reported sold to Greek buyers for US$46.5m enbloc.
Although this week has seen limited reported ordering, the newbuilding market remains active with on‐going discussion across the majority of conventional sectors and a further tightening of available shipyard capacity for delivery next year. What orders there have been this week have primarily been focussed on the large product tanker sector. Further to the total of around 25 MR tanker orders reported since the new year, with an additional six 37,000 DWT coated tankers also having been contracted, the larger LR2 orderbook has also now grown by ten vessels this year taking the total orderbook in this sector to 17 vessels.
This week saw Scorpio Tankers announce a continued expansion of their product tanker orderbook with four firm 114,000 DWT LR2 Tankers at Hyundai Samho. Although pricing was undisclosed, delivery is understood to be for the second half of 2014. This brings the owner’s number of orders for LR2s at the yard to a total of six firm vessels. In addition, Scorpio also confirmed a further two 114,000 DWT LR2 orders at DSME for delivery in the fourth quarter of 2014, which included an unspecified number of options. This continues to expand Scorpio’s orderbook which, including the aforementioned orders, now stands at a total of 33 product tankers. It is interesting to note that the majority of these orders are due for delivery in 2014 with the exception of one MR due for delivery this year which remains from their last set of orders in the first quarter of 2012. The total number of deliveries in the MR sector now lined up for 2014 is only surpassed by the delivery levels seen in 2008 and 2009.
In other sectors, Clients of Ray Shipping placed an order for 4 firm 7,500 unit PCTCs at Hyundai Mipo. Delivery is planned from the fourth quarter of 2014 with reported pricing at USD 70.25 Mill per vessel. This increases the buyer’s orderbook to a total of ten vessels with four similar sized 7,000 unit PCTCs already on order at Hyundai Mipo and a further two 4,900 unit PCTCs at Ha Long Shipyard in Vietnam. This time last year, 2012 had seen no new orders in this sector, however through the remainder of the year the PCTC sector saw a significant boost in ordering with t total of 26 new vessels being contracted.
S & P
It has been a relatively busy week in the dry S+P market with a number of vessels under offer and trading out of the Japanese market.
In the Panamaxes, the Japanese controlled M/V IVS MERLOT (76,263 dwt 2005 blt Tsuneishi) which passed IS in January 2013 invited offers on Monday for buyers waiving inspection. She has now been sold to a Greek buyer for US$ 15.9m and will be delivering charterfree March‐April 2013.
Other business includes the sale by clients of Great Eastern Shipping of their panamax M/V JAG ARNAV (71,122 dwt 1995 blt Namura) for US$ 5.85m to Chinese buyers basis SS/DD due.
A lot of interest with a number of buyers inspecting and acquiring Supramax/Handymax bulkers. M/V TRITON LARK (56,025 dwt 2005 blt Mitsui) understand achieved high US$ 16m from Pacific Basin. Also the Japanese controlled M/V NORD ATLANTIS (53,525 dwt 2006 blt Iwagi) understand is sold for us$ 16.8m. Another vessel sold from the Japanese market is the double skin M/V ACE GATE (55,697 dwt 2005 blt Mitsui) which has achieved US$ 16.2m from Indonesian buyers with DD due. Large handymax M/V AETOS (48,893 dwt 2001blt IHI) obtained US$ 11.8m from Greek buyers while Cido Shipping’s M/V SALAMANCA (46,743 dwt 2000 blt Kanasashi) achieved US$ 9.7m.
Italian buyers purchased M/V NENA J (43,230 dwt 1995 blt Hyundai) for US$ 6.8m with drydocking passed in December, 2012.
A busy week for Tanker S+P market as well.
After the resent purchase of M/T PACIFIC PARTNER, Bakri Navigation reported to have also acquired her sister M/T PACIFIC ALLIANCE (105.941 dwt 2004 blt Hyundai) at a similar price – US$ 19.5m. The older double hull deep drafted but Panamax beam M/T AEOLOS (84.040 dwt 1990 blt Denmark) reported sold to European buyers at US$ 6.3m – understand she was trading as a storage facility vessel for the last couple of years.
Five modern MR product/chemical tankers from Torm’s fleet reported sold enbloc to Oaktree Capital of the U.S. for US$ 135m (i.e. US$ 27m each). The vessels are M/T TORM AGNES (50,274 dwt 2011 blt GSI, China) and sisters M/T TORM AMALIE (2011 blt), M/T TORM ALICE (2010 blt), M/T TORM ALMENA (2010 blt) and M/T TORM ASLAUG (2010 blt).
With ordering levels keeping up pace this week, the shipyards in the Far East have resisted any significant drop in newbuilding prices now for the past 6 months. However, it remains to be seen whether increased levels of enquiry can outweigh sluggish charter rates and an oversupplied market to begin to push newbuilding pricing upwards. Away from the shipping market, shipyards have also had to account for a steady increase in the price of steel since September last year, which has
inevitably placed further pressure on the yards to achieve an increased margin for new contracts.
Looking at the Dry Bulk market, a number of previously rumoured orders have now come to light, including Fredriksen interests boosting their already significant Capesize orderbook. Understood to have been signed last month, SWS received an order for a further 4 x 180k Capesize vessels from Clients of Frontline with pricing understood to be in the region of USD 47 Mill with delivery of all four vessels in 2015. This brings the total Frontline Capesize orders to 8 firm vessels plus two sets of options for a further 4+2 vessels. Another order thought to have been concluded last month also emerged this week with Clients of Oceanbulk Maritime contracting 2 + 2 80,000 DWT Kamsarmax at Japan Marine United (JMU). Although pricing is undisclosed, delivery of the firm vessels is planned from Q1 2014. The total number of reported Capesize orders, excluding options, now comes close to 30 vessels, and considering further orders understood to be currently under discussion, the total
Capesize orders placed in this first quarter look likely to exceed the total number placed throughout the whole of 2012.
In a further boost to ordering in the coated tanker market, Clients of Scorpio have confirmed an order for two firm plus options 114,000 DWT LR2 product carriers at Hyundai Heavy Industry (HHI) Samho yard. Pricing was reported at USD 49.75 Mill with delivery of the firm vessels from mid‐2014.
In the gas market, Clients of Brave Maritime were reported to have placed an order for 2 x 7,200 cbm fully pressurised LPG vessels at Kyokuyo in Japan. Pricing is understood to be in the region of USD 22 Mill with delivery in the 1H 2014. In other sectors Croatian yard Brodogradiliste Uljanik contracted four firm 5,000 GT Passenger/Car Ferries from Clients of Jadrolinja for a reported en‐bloc price of
USD 42 Mill. The vessels are all due to be delivered in 2014.
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The K‐Line controlled capesize M/V CAPE AWOBA (171,978 dwt 1996 blt Kawasaki) is understood to have been sold after 5 buyers inspected recently in China. The price is being reported region US$ 12.2m to Berge Bulk. The Fu Yuan Shipping controlled M/V PACIFIC RICH (40,864 dwt 1986 blt Sanoyas) is understood to have been sold to Chinese buyers for US$ 3.1m. Clients of Petrobulk Maritime in Greece are understood to have sold the M/V ATHENA (28,458 dwt 1995 blt Kanda) for a price of US$ 5.85m. The buyer remains undisclosed at this stage.
In the wet market, there has been some activity especially in the products sector.
The 3 Admanthos Shipping managed, uncoiled sister MR Tankers M/T SINBAD, M/T GALAHAD and M/T NOMAD (44,999 dwt 2003 blt Hyundai) have been sold at region US$ 15.5m each.
As the year gathers pace, we continue to see a steady stream of new orders across all sectors of the shipping markets as Buyers realise that competitively priced opportunities and deliveries are potentially slowly starting to slip from their grasp. As with last week the majority of ordering has been in Dry, as Buyers continue to take advantage of the historically low pricing that yards are still offering
whilst they still can. However, as reported last week there are less and less opportunities for Buyer's to focus on as yards fill any remaining 2014 capacity and it will be interesting to see how far Yards are able to push pricing up in the coming months especially when rates are not necessarily there to justify any significant premium on newbuild prices at this stage of the cycle.
On the Wet side, as has been the story for most of 2012 and the start of 2013 we have seen more investment in the products side and we see no sign of any significant let up in enquiry levels for this sector, so fully expect Buyers to continue to invest money into this burgeoning order book.
Overall, yards must be quietly pleased at how well 2013 has started off, especially when compared to 2012 and they must be crossing their fingers that the year continues in the same positive fashion for the next ten months!
In terms of reported business, in the Dry sector, Bocimar have declared their options for 4 x 36,000 dwt at Weihei Samjin with deliveries commencing from March 2015. Marmaras Navigation are reported to have placed orders for 4 x 180,000 dwt Capes at Sungdong Shipyard with deliveries being slated throughout 2015 and 2016. Oshima Shipyard has successfully taken orders from Taiwan Navigation for 2 x 60,000 dwt Supramax at a reported price of USD 27.3 million each with deliveries set for September and December 2015.
On the Wet side, Hyundai Mipo Shipyard has hogged all the limelight yet again securing 4 x 50,000dwt MR orders from Gestion Maritime with all deliveries set to be in 2015. The same yard also managed to secure 2 x 36,000dwt MR options being declared by Scorpio Tankers with deliveries set for end 2014.
Lastly, in Containers Dalian Shipyard secured options being declared for 4 x 3,900 teu Container Vessels from Pacific International Lines with all deliveries reported to be arriving throughout 2016. No pricing was reported.
S & P
In the Panamax sector the M/V AMFIALOS (71,749 dwt 1990 blt Hitachi) has reportedly been sold to Far Eastern buyers for US$ 4.65m.
Most sale last week reported in the Handumax sector.
Following inspections in Japan at the end of January, the Japanese controlled grab fitted handymax bulker M/V NIKKEI TIGER (45,363 dwt 1997 blt Oshima) has been sold for a price in the region of US$ 8.1m to undisclosed buyers (most probably Chinese), the Vessel will be delivering to her new Owners in April‐Mary 2013 in the far east.
The M/V NENA M (43,176 dwt 1995 blt Hyundai) has been sold to undisclosed buyers for US$ 7m. Clients of Rickmers Reederi have reportedly sold four late 90's Polish built (11,800 MT LDT) conbulkers, M/V VALPARAISO, VALBELLA, VALPARAISO (abt 44,500 dwt 1998 blt Poland) and VALDIVIA (46,376 dwt 1998 blt Poland) achieved a price of US$ 20m enbloc to Chinese buyers, the lower price reflective of their build and high consumption.
In the Tanker S+P market, the VLCC MAERSK ELLI (308,491 dwt 2000 blt Hyundai) has been sold to offshore Buyers mssrs SBM Offshore at region US$ 32m.
The third Aframax for Bakri recently acquired is the Mitsui OSK’s M/T PACIFIC PARTNER (105,946 dwt 2004 blt Hyundai) for which have paid US$ 19.3m.
The fully stainless M/T CLIPPER OCEANICA (12,099 dwt 2005 blt Japan) reported sold for US$ 11.5m.
Further reports of business this week and the market continues to deliver a steady stream of enquiry and concluded business.
There remains a continued drive of investment into Dry, with speculators taking advantage of a relative stability in values over the last 12 months or so ‐adding credibility to current market levels and a view that we are firmly at the bottom of the market. With berths now being absorbed through 2014 and into 2015, capacity is not as abundant as buyers would like and consequently we are starting to see certain sectors of the market starting to edge pricing up.
In wet, the products story remains resilient, and the MR and LR2 sectors of the market continue to demonstrate good levels of enquiry.
Certainly a more active opening to the year than 2012 ‐ how sustainable this will be remains to be seen and no doubt that whatever business is being concluded continues to be at challenging levels for shipyards to accommodate.
In terms of reported business Malaysian Bulk Carriers Berhad contracted a single firm 56,000 DWT Supramax at Mitsui Shipbuilding. It is understood that the vessel will be operated as part of the owner’s subsidiary Ambi Shipping and is a 70/30 joint venture with Mitsui. Pricing was not disclosed, however delivery is understood to be in the first quarter 2015.
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In comparison to last week there are few dry sales to report. That being said we continue to see a lot of buying interest in the market for ships built within 15 years. The Japanese market remains the key source of tonnage and with the JPY continuing to weaken against the USD potential buyers are hoping this will encourage further selling.
In the Capesizes, Taiwanese buyers has purchased the M/V DONG-A SATURN (149,396 dwt 1994 blt CSBC) for US$ 7.5m.
A couple sale to report in the Panamax sector; the M/V OCEAN PLANET (76,812 dwt 2005 blt Sasebo) reported sold for a price in the low US$ 15m with dd due 9/2013 to Greek buyers while the 14years old M/V CO-OP PHOENIX (72,443 dwt 1999 blt Sasebo) sold at about US$ 9.5m again to Greek interests.
Having had more than 10 buyers inspect the vessel at dry‐dock recently, we now understand that the M/V SKY MARINER (53,459 dwt 2005 blt Imabari) has been sold to undisclosed buyers at a price in the region of US$ 15.5m with drydocking freshly passed last month.
The handymax M/V TARAPACA (46,786 dwt 2000 blt Kanasashi) has reportedly been sold for US$ 10.5m. Whilst the buyers identity is unknown, we are hearing rumours that Middle Eastern interest may have secured the vessel.
In the handysize sector M/V ODINBEY (28,381 dwt 1995 blt Imabari) has been sold for US$ 6.2m to Middle Eastern buyers.
Greek buyers understood to have purchased M/V SHARK BAY (26,412 dwt 1997 blt Guangzhou) for US$ 4m. It is worth noting that the vessel will be delivered with one of her cranes out of order. A sister ship but one year older M/V EMMA-SOPHIE (26,411 dwt 1996 blt Guangshou) obtained only US$ 2.5m; in her case all her four cranes are not operable.
Another quiet week in the tanker Sale and Purchase market although this is more due to a scarcity of sales candidates as opposed to lack of buying interest as we have a number of open enquiries for tankers of most sizes and ages.
In terms of concluded business, we have a delayed report that VLCC 'WASHUSAN' (281,050 dwt 2000 blt Mitsubishi) has been sold to Greek Buyers at US$ 28.3m with Buyers BOD subject lifted mid‐January of this year (deal was fixed end December 2012).
In the MR product tankers the M/T NOBLE EXPRESS (51,393 dwt 2008 blt STX) has been sold to Ultragas at around US$ 24.5m. We understand that she will continue in the pool where she currently operates; both sellers and buyers are pool members.
The week has seen yet further reports of new business being concluded and similarly to last week’s capesize orders, the majority of these have again been within the Dry Bulk market. This time though, the ordering has been concentrated amongst the midsized vessels and has been focused primarily amongst the Japanese yards. With the financial year in Japan continuing to run up until the end of March, we do expect to continue to see news of further orders being placed as the yards there look to boost their end of year results.
Amongst the orders this week, Tsuneishi are understood to have extended their relationship with J.J. Ugland and have signed a contract with Clients of UM Bulk AS for two 58,000 DWT bulkers. UM Bulk is a J/V between the J.J. Ugland companies, Grimstad and Mitsubishi Corporation, Tokyo and these vessels will be built at Tsuneishi’s Cebu facility in the Philippines. The pricing of these vessels is understood to stand in the region of USD 26.5 Mill and deliveries are provisionally scheduled within the 4Q of 2014 and 1Q 2015. Clients of Singaporean based Pacific Carriers are reported to have ordered a single 61,000 DWT bulk carrier at Imabari, with a reported price of USD 28 Mill and delivery in 1Q 2015. In other dry business, Sanoyas are understood to have won their first order of the year, for one 82,000 DWT Kamsarmax, from an undisclosed buyer with delivery End 2014. Finally, Clients of Dharma Bangsa Mentari have reportedly contracted up to 10 x 10,500 DWT bulk carriers with
self‐unloading capability at Qidong Daoda, China with delivery from 1H 2014.
There has been only limited reports of newbuilding activity in the tanker market this week. Knutsen NYK Offshore Tankers are reported to have placed an order at COSCO Zhoushan for a single 152,000 DWT shuttle tanker for delivery in the second half of 2014. Domestic company Xinhai Oil meanwhile are understood to have contracted two 4,500 DWT bunkering vessels at Chongqing Chuandong with delivery again lined up for 2014. Pricing has not been disclosed.
Finally and within the LPG sector, reports have surfaced that Frontline have extended their series of VLGCs at Jiangnan Changxing bringing the total number of firm vessels on order at the yard to 6. This deal was in fact concluded a few weeks ago, however now understand it includes additional options for up to another 2 vessels. Pricing is understood to be in the region of USD 63.5 Mill and delivery from 2H 2015.