The recent rally of the Baltic Dry Index (BDI), coupled with renewed optimism, at least in some parts of the wet market, have prompted many ship owners to stage a come back in the second hand and newbuilding markets, during the course of the past week. According to the latest report from shipbroker Intermodal, "tankers and bulkers attracted equal interest in the secodnhand market. What we hadn't seen for a long time was two VLCC sales in the same week and interesingly enough it looks like things have finally started to move in a sector that has remained sluggish for a while now, and has possibly reached more enticing price levels for potential buyers. On the Tankers side, we had the sale of the “ANTONIS” (309,371dwt-blt 01 S. Korea), which was reported sold at price of $ 26.5m by Greek buyers. While on the dry bulker side, we had the sale of the “C. S. PEGASUS” (77,663dwt- blt 98 Japan), which reportedly was picked up by Indonesian buyers for a price of $8.0m", the shipbroker said in its weekly report.
Meanwhile, in the newbuilding market, it noted that "neither tanker, nor dry bulk owners appear to be disheartened, by what is still a very difficult market, moulded almost exclusively by charterers in the most popular sectors. As in every industry that is hovering around its lows, in shipping as well, the hope that a recovery will take place in the next couple of years is fed not only by wishful thinking but also by what the market ’gurus’ are pointing to. In this case Mr. Fredriksen is definitely leading the way. With around 53 orders being confirmed so far, the leader behind Frontline, has bet across a variety of sectors. What differentiates a company like that from the rest of the shipping world though, is not only the size of the Norwegian colossus but its reputatioon as well. For those owners that are ready to push the button of the newbuilding order don't forget that although finance might be found, what is hard to secure is the siding of your investor during bad times and it is rarely any other than A-list owners achieve that. In terms of reported deals this week, US listed Teekay reportedly placed an order for 4 firm plus four optional Aframaxes (115,000dwt) at STX, S. Korea for a price of $ 45.0m and delivery in 2015", Intermodal said.
Finally, in the demolition segment, shipbroker Golden Destiny said that India has regained its strength with Bangladesh trying to compete as it still faces political issues and problems with letters of credit. In India, the upward price momentum, from last week, persists with benchmark scrap rates gaining another $15/ldt for dry/general and wet cargo and rising to $415/ldt for dry and $445/ldt for wet cargo, while in Bangladesh, benchmark prices are still floating below $400/ldt for dry cargo. In China, ship-recyclers remain quiet with no aggressive pricing as many yards have fulfilled their capacity and Pakistan remains out of the game with no success in securing new tonnage. The week has been marked with firm vessel disposals in the container segment heading in India at strong prices $450-$460/ldt. An interesting demo deal reported for a small panamax container vessel of 4,024 TEU blt 1993 with about 18,600ldt that achieved $470/ldt for India, including 280tons bunkers remaining on board. The week ended with 19 vessels reported to have been headed to the scrap yards of total deadweight 1,022,988 tons. In terms of the reported number of transactions, the demolition activity has been marked with no change from previous week, showing 100% weekly increase in the bulk carrier segment, but 80% and 40% weekly decrease in liner and container vessel disposals. In terms of deadweight sent for scrap, there has been 49% decrease with two capesizes and one panamax bulker reported for scrap and India winning 8 of the 19 total demolition transactions. At a similar week in 2012, demolition activity was at the same current levels, in terms of the reported number of transactions, 19 vessels had been reported for scrap of total deadweight 1,208,985 tons with bulk carriers grasping 63% of the total number of vessels sent for disposal. India and Bangladesh had been offering $450-$460/ldt for dry and $480-$490/ldt for wet cargo" the shipbroker concluded.