The surge of the dry bulk market as of late, with the Baltic Dry Index charging forward since the start of August, has brought back, not only smiles in the faces of ship owners, but also the lost appetite for new ship acquisitions. According to the latest report from shipbroker Allied Shipbroking, “summer has come to an end and luckily the BDI has picked up by 396 points since 1st of August. Charteringwise we have monitored remarkable increase on the spot prompt coal shipments ex Indonesia to India. Such fact may be explained by the insufficient reserves of coal, unable to cover the increased domestic demand for electricity, born by the low stockpiles of coals and the absence of monsoons. As a result, Supramax rates have improved significantly, reaching levels of USD 10.500 per day, basis delivery S’pore”, said the shipbroker.

Howeverm the shipbroker pointed out that “such pulse has not come into the S&P market yet. More specifically, “ALIANCA ORIENT” (52k, 2006, Jap) has been reported sold to Indian interests in the region of USD 17.5 Mill, basis DD due. For comparison purposes we remind you that during last May the ex “LALIS”, “IOANNIS K” and “CHRYSSA K” (52k, 2002, S.Korea) have been sold for USD 18.5 Mill each. On the Panamax segment, following our last’s week report, “GOLDEN KIJI” (76k, 2007, Jap) has been reported sold to Greeks in the region of USD 19.25 Mill, which is in line with the market”, Allied noted.

It added that “tanker-wise, despite the fact that BDTI is still softening, several deals have taken place during last week. It is reported that Greeks have purchased “DS VICTORY” (298k, 2001, S.Korea) for a price of USD 33.6 Mill, while Chevron has declared the purchase option for the three early 90’s Suezmaxes, which were under their bareboat charter, proving that faith is still there”.

Finally, Allied concluded that “on the Shipbuilding sector, several rumours spread in the market circles, talk about the possible absorption of “Rongsheng shipbuilding” by the CSSC controlled “Shanghai Waigaoqiao Shipbuilding” (SWS), mainly led by the financial problems that Rongsheng is suffering by. It is about an enormous merge, by two Shipyards mostly active in the oversized bulk carriers and tankers”.

In a separate weekly report, Lion Shipbrokers said that “the attention is drawn to the BDI, which experienced a choppy increase by 59 points since last week (1149 yesterday vs 1088 last Friday), mainly due to the capesize index performance. Modern caper SILVER SURFER (180K BLT 2013 SUNGDONG/S. KOREA) was acquired for $53.5 mill by clients of Carval Investors of U.S.A. (Cargill’s shipowning arm), in line with last week’s sale of similar unit BLUE CHO OYU (180K BLT 2011 DAEHAN/S. KOREA) for $51 mill. The deal of Chinese built cape resale of LUO JIA SHAN (176K BLT 2014 JINHAI/CHINA) for $44.5 mill to Italians, illustrates the premium that buyers are willing to pay for Japanese & South Korean built tonnage. This is also evident in the sale of Chinese built panamax ZHUSHUI 5 (79K BLT 2012 JINHAI/CHINA) for $20.9 mill to Greeks, compared with the sale of 5 year older but Japanese built panamax GOLDEN KIJI (76K BLT 2007 IMABARI/JAPAN) for $19.2 mill (also to Greeks). Ice-class vintage panamax JINDAL VARAD (75K BLT 1994 B+W/DENMARK LDT 1100) was snapped by U.A.E. based Indians for $5.8 mil (which translates to $528 per lt) basis delivery in Red Sea and ss/dd surveys due in two months. Kimbara Kisen’s Tess 52 supramax ALIANCA ORIENT (52K BLT 2006 TSUNEISHI/JAPAN CR 4X30T) went to Indian buyers for region $17.5-$18 mill basis dry-docking surveys due this October, in line with end July’s deal of one year younger similar unit BRIGHT MOON (56K BLT 2007 MITSUI/JAPAN) for region $19.7-$21 mill. Vintage handymax CHC NO.3 (46K BLT 1995 MITSUI/JAPAN CR 4X30T) has changed hands within South Korea for $9.2 mill setting a new benchmark for mid-nineties handymaxes. Two Bestway design Emerald 39k handysize resales have been committed locally in China for $20.2 mill & $20.8 mill respectively, basis delivery of 1st hull this August and of the 2nd hull in November next year (excluding BWTS as we understand). Japanese controlled handy logger FORTUNE FRONTIER (29K BLT 2002 SHIKOKU/JAPAN CR 4X30T) was
snapped by Greeks for the price of $10.5 mill basis dry-docking surveys due May next year. The level achieved is softer than end of July’s deal of similar unit of ATLANTIC ARROW (28K BLT 2005 SHIN KOCHI CR 4 X 30.8T) for $12.5 mill (basis dry-docking surveys due November next year), illustrating a further decline in handysize asset values. Greek controlled vintage handy logger THEOMITOR (28K BLT 1994 KANDA/JAPAN CR 4X30T) was committed to undisclosed interests for $6.8 mill basis, setting a new benchmark for mid-nineties handies”, Lion Shipbrokers concluded.