S & P
Following a steady level of sales activity for 90's built Panamax bulkers in recent weeks, this week the majority of s+p activity has been dominated by sales in the Supramax sector.
The Dai-ichi controlled Tess 58 M/V OPAL HALO (58,786 dwt 2008 blt Tsuneishi Zosen) has been committed to Bangladesh based buyers (Swiss Bulk) for a price in the region of US$ 27.5m.
On another sale we understand that M/V SANKO KING (56,678 dwt IHI blt) has been committed to clients of DST of Greece in an off-market deal at US$ 25.8m.
The last reported sale of this week in Supramax sector is that of M/V NORD MARINER (53,459 dwt 2005 blt Imabari) at US$ 24m to Greek buyers.
The geared Panamax M/V B INDONESIA (70,424 dwt 1990 blt Hyundai H.I.) has been committed to Chinese interests for US$ 7.85m while Chinese buyers have also taken the Post-Panamax beam M/V STAR FLOWER (69,006 dwt 1987 blt Namura) at US$ 6.5m; a level not far from her demolition value.
The newbuilding market continues to quieten down as we approach the final weeks of the year, with very few new enquiries being witnessed in the market. This is not to say that all activity has ceased however and we do continue to see activity with new business being concluded in the both Dry, Gas & Container markets.
With the year approaching its conclusion, it is perhaps unsurprising that thoughts turn more and more to 2012. Much of the activity in 2012 will be determined, or at the least heavily swayed, by the state of the global economy and the subsequent availability of financing. As things stand, there remains a great deal of uncertainty over how the more conventional markets will progress after what has undoubtedly been a challenging 2011, both from a newbuilding and chartering perspective. The more niche sectors will likely continue to play an important role in the development of new business for the yards, though with more and more yards looking to take advantage of these markets, will no doubt become an increasingly competitive market environment.
In the end, success in winning new orders across the majority will most likely be achieved by those yards whose designs offer owners the greatest level of flexibility in design, both through fuel efficiency and their economy of ship scale. With all the major yards across Korea, China and Japan all continuing their work in developing these, there will no doubt be numerous opportunities for owners as the year progresses.
In terms of reported business; In Dry, Compagnie Maritime Belge (CMB) are reported to have placed an order at Weihai Samjin for 6 option 4 x 36,000dwt handysize bulk carriers. Four of the 36,000 dwt vessels are due for delivery in 2013 while the remainder are expected a year later. Pricing has not been reported. Safe Bulkers, Inc. meanwhile have announced that they have entered into a contract to build one panamax bulker within japan. They have not for the moment disclosed the name of the yard or pricing for this vessel, only that the vessel will deliver in 1H 2014.
In Gas, Kawasaki have won an order for an 82,000dwt VLGC from Kumiai Navigation with the vessels due to deliver in 2H 2013. Pricing has not been disclosed.
In Container & Other ship types, Nam Sung Shipping are reported to have ordered a trio of 1,850 TEU container carriers at Hyundai Mipo with deliveries due in Feb/Apr and Jun 2013. These are understood to have been signed at a price of circa USD 29 Mill each. Finally, DaeSun shipbuilding are reported to have won an order from the Iraq State Company for Maritime Trading for 3 x 17,500dwt MPP carriers. These vessels are reported to have been signed at a price of USD 24.5 Mill each with deliveries in 4Q 2013 and 1Q 2014.
S & P
The previously reported sold at US$ 34m Capesize M/V PACIFIC FORTUNE (171,995 dwt 2004 blt Hyundai) is now rumored to have finally achieved US$ 31.5m to clients of Messrs Swiss Marine. Vessel has very recently passed her dd!
In Panamax sector, the Japanese controlled Panamax bulker M/V MAR REINA (71,969 dwt 1998 blt Sasebo H.I.) is reported to have been sold to undisclosed buyers (rumors suggest Greeks are behind this purchase) for US$ 15.6m.
The Handymax M/V STAR SEA BULKER (42,717 dwt 1997 blt IHI) after seeking a buyer for a long period understand she is finally sold to Greek buyers for US$ 11.5m which is substantially less than what was initially expected to achieve.
Handysize M/V AMBER VITA (29,063 dwt 1995 blt 2 Mai) is reported sold to Romanian buyers at the very low price of US$ 5.7m.
The Tanker S+P market remains fairly quiet; Neda Shipping’s VLCC AROSA (291,381 dwt 1993 blt Hitachi Zosen), the world’s first double hull VLCC, reported sold to Nathalin for US$ 23.5m.
On the product tanker side we understand c/o Sonomar have acquired the M/T ICE BLIZZARD (63,589 dwt 2008 blt STX) for the firm price of US$ 36.25m; its worth noting that this Vessel was on subjects for an ENAP tender which we understand vessel was successful in winning.
As we move further into December and the festive period, activity in the Newbuilding market continues to gradually wind down, as evidenced by the lower levels of new enquiry now being witnessed. The week has however seen some new business being concluded, as certain buyers have looked to tie up their various negotiations before the end of the year.
Whilst the second half of the year has certainly seen a slight decline in the number of orders being placed at the Korean yards, it can in no way detract from what has for the most been a very successful 2011 for the major yards in Korea. The ¡°Big Three¡± yards in particular have led this ordering drive throughout the year, winning orders across the Container, Offshore and LNG sectors. A continued demand across these sectors would no doubt be well received by the yards in 2012 however with the turmoil within the European financial markets continuing to look like it will restrict owners access to financing, it will likely be some time before the forward picture for 2012 can be established.
It is well known that the yards in China have faced a far more challenging year, with the beginning of the year in particular being especially quiet. Fortunately for the yards, activity has picked up a little during the second half of the year, at least amongst the major State and Private yards, with some ordering again beginning to take place in the Dry Bulk sector. This being said however, there still remains a large amount of 2013 capacity available amongst the majority of the yards and how they attempt to fill this will remain an interesting story going forward into 2012, especially given the challenges that potential owners will have face, as alluded to above.
In terms of reported business; In Tankers, news broke this week of a large Suezmax order that was placed at Rongsheng Heavy Industries. A press release from the yard indicated that they had been contracted to build 10 option 10 x 157,000dwt Suezmax Tankers for a group called Global Union Shipping Limited. Whilst pricing was not disclosed for this order, deliveries are scheduled within 2H 2013 and 2014. Meanwhile, Knutsen NYK Offshore Tankers are reported to have order 1 x 112,000dwt Shuttle Tankers at Hyundai Heavy industries. Again whilst no price has been disclosed, delivery is provisionally scheduled in 1Q 2014.
In Dry, Shanghai Waigaoqiao are reported to have won an order for a pair of Kamsarmax Bulk Carriers from interests associated to Rizaho Steel. We understand that this deal was actually signed last month and is only now coming to light. The deal is understood to include options for a further two vessels and pricing is believed to lie in the region of USD 30.5 Mill per vessel, with deliveries scheduled in 1H 2013.
S & P
It has been an active week in sale and purchase market with values continue to show signs of further softening.
In the Panamax sector, the Chinese built panamax M/V MERIAN (74,717 dwt 2000 blt Hudong) is rumoured to have been purchased by Greek interests for region US$ 17m. The trend of Japanese based owners selling 1990s built tonnage continued this week with Clients of K-Line selling M/V PLEIADES (68,962 dwt 1997 blt Imabari S.B.) for US$ 13.8m to Greek Buyers.
In the Supramax sector, clients of Zhoushan Zengzhou Shipyard have sold their 57,000 dwt Supramax HULL 003 delivering ex-yard January 2012, to Clients of Courage Marine at US$ 26m. The price is in line with the sister vessel they sold last month with a similar delivery.
Two handies the M/V STX QUEENSLAND and her sister M/V STX PIONEER (33,720 dwt 2005 blt Shin Kochi) have achieved US$ 20m each from European buyers.
There are a number of sales to report this week in the Tanker S+P sector; we understand that the VLCC EAGLE VALENCIA (306,998 dwt 2005 blt Samsung H.I.) has been sold to undisclosed buyers at region US$ 53m. In the MR sector, the much talked about pump-room type ex Sanko MR Tankers, namely M/T SANKO LYNX and M/T SANKO LIBRA (47,378 dwt 2010 blt Onomichi) has finally been confirmed sold after weeks of speculation surrounding the fate of the ships. They have been committed to c/o Tanker Pacific at region US$ 29m each. The Handysize tanker M/T DAI VIET (37,432 dwt 2005 blt Hyundai Mipo) has been committed by Vietnamese interests VOSCO to Greek Buyers at region US$ 22m. This follows the sale in July of an exact sister the M/T YELLOW STARS (37,269 dwt 2005 blt Hyundai Mipo) to South American interests for region US$ 25/26m.
The level of enquiry in the newbuilding market has continued to remain active this week with interest mainly focused in the Dry Bulk sector; and with the news in the shipping markets being dominated this week by the Chapter XI filing of General Maritime this is perhaps unsurprising, especially when combined with the continued challenging environment within which many tanker owners continue to operate in, that short term interest in tanker newbuildings remains a little subdued.
As reported last week, there was a spate of orders placed within China for various sized dry bulk vessels and we continue to see newbuilding opportunities within the Dry Bulk market generating interest amongst owners. The combination of the newer efficient designs and attractive pricing are keeping interest levels high and we expect further business to be concluded in this sector over the coming weeks.
That being said however, there have been no reported dry bulk orders this week and instead we have seen a return to the pattern of earlier in the year with offshore and containership orders being contracted. DSME have this week signed their long discussed deal with the Odebrecht-Technip joint venture for a pair of Subsea pipe-laying support vessels. These have been penned at a reported price of circa USD500 Mill in total, with deliveries scheduled from 2H 2014. This order continues to highlight the importance of the offshore sector to the major Korean yards and reinforces the view that they will increasingly look to strengthen their position in these specialized sectors as they look towards an uncertain 2012 for the more standard commercial vessel types.
In addition to this order, it has been reported that Zodiac have returned to STX to upgrade their order placed with the yard in October last year, which had been for 4+2 x 13,000 TEU Vessels. It is understood that an agreement has been reached to increase the size of these vessels to 16,000 TEU and has seen a further 2+2 units added to the original number. The newer larger vessels are expected to deliver from 3Q 2014 onwards.