1/21/2014 S&P, Newbuilding and Demolition Update (January 18th, 2014) – Dry Bulk Focus | Karatzas Shipbrokers Register

http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/ 1/5

S&P, Newbuilding and DemolitionUpdate (January 18th, 2014) – DryBulk FocusPosted on January 18, 2014

By the end of the week, the notable decline of the BDI and dry bulk freight rates since late lastyear came to a stop with a marginal improvement on Thursday and Friday, mostly on relativelystronger recovery in the cape market; still, it was a down week for the index, with about 0.75%decline. Crude tankers have been the star of the week, with freight rates improving impressivelyon certain routes; some improvement is due to seasonality – still, winter season in the northernhemisphere, due to bad weather affecting vessel routing – heavy delays due to fogging in theBosporus affecting Suezmax tonnage trading Black Sea, and due to lower tonnage availability inthe AG – owners have been ballasting en masse VLCCs from AG to WAF for better prospects(probably an interesting point for further analysis, ballasting vessels around the Cape and incurringmillions of dollars in bunker expenses in the hope of better prospects in another geography; ‘herdmentality’ possibly, but for now, AG tonnage faithful tonnage got the best of it, and theirprospects look good for February, too.) The best markets have been Caribs – USG and cross-Med trading for aframaxes, where in the latter market have benefited by association due toBosporus delays but mostly have benefited from Libya’s crude exports coming to the marketagain (as a reminder, just last week, rebel forces had threatened to open fire at tankersapproaching terminals for loading, but the economics got the better of the threats, since oilexports translate to hard currency in a desperate country.) One of the highest fixtures has beenExxonMobil’s fixture of Thenamaris’ MT „SEAOATH” at 260 WS, well in excess of $100,000TCE for cross-Med voyage.

Activity in the sale & purchase market continues robustly, as hopes for a market recovery seemto be getting stronger hold. Late last week, it was reported athat Marmaras Navigation ofGreece has acquired Hull No J0021 for 176,000 dwt capesize vessel with 2014 delivery atFollow

Karatzas Shipbrokers RegisterThe Shipping Sale and Purchase (S&P) Worldwide Report

1/21/2014 S&P, Newbuilding and Demolition Update (January 18th, 2014) – Dry Bulk Focus | Karatzas Shipbrokers Register

http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/ 2/5

Jinhai Heavy Industries at approximately $47 million, and also Greek independent ownerTransmed has acquired Qingdao Beihai BC180-26 and BC180-30 hulls (MV „CENTRANSRYTHM” and MV „CENTRANS ETERNAL”) for 180,000 dwt capesize vessels with 2014delivery at about $48 million, each. These transactions stand out for a couple of reasons: despitethe overall pessimism in the capesize market, still, these are acquisitions by ‘real’ independent,operating shipowners who put a lot of their own equity at risk (as opposed to ‘OPM’ investments)which indicates real conviction in the market; further to it, the pricing seems extremelycompetitive as compared to recent ‘OPM’, highly advertised acquisitions of comparable tonnage,and also compared to standard shipbroker tables with ‘Cape Resales’ markedly in the $50+million territory.

The Kamsarmax vessel MV „MINERAL PEARL” (81,500 DWT, 2013, Guangzhou Longxue) hasachieved $27 million, while almost comparable vessel MV „PRETTY MASTER” (82,000 DWT,2013, Zhejiang Judger S.B.) was sold at the relatively weak $24 million. Possibly the confusedidentity name of the vessel may explain the price differential? Panamax bulker MV „TRAVE”(75,300 DWT, 2001, Hyundai Samho) was sold to Kassian Maritime in Greece at the ratherstrong $16.1 million, while MV „GRAND DIVA” (75,600 DWT, 2007, Imabari SB) was sold at$21.5 million to Italian buyers (Augustea.) Older panamax MV „GLOBAL TRIUMPH” (73,000DWT, 1996, CSBC Kaohsiung) sold to a scrap related $8 million to Chinese buyers (ShandongShagang.)

Pretty lady named MV GRAND DIVA! (image source:

http://www.shipspotting.com)

—

Follow “KaratzasShipbrokers Register”Get every new post deliveredto your Inbox.

Join 264 other followers

Enter your email address

Sign me up

Powered by WordPress.com

1/21/2014 S&P, Newbuilding and Demolition Update (January 18th, 2014) – Dry Bulk Focus | Karatzas Shipbrokers Register

http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/ 3/5

Ultramax vessels have been in high demand recently, and Greek buyers have acquired fourSDARI 64 vessels under construction at Jinling Shipyard (Hull Nos: JLZ9120408-11) ordered byAsia Pacific Enterprises; all vessels are due to deliver in 2014 and price consideration has been atabout $30.5 million per vessel. We understand also the Oldendorff Carriers has sold a Crown 63deign ultramax vessel MV „DIETRICH OLDENDORFF” (63,500 DWT, 2013, C4x35T, DayangS.B.) to Greek buyers at $31 million, with a market-indexed charter back to the sellers.

Supramax tonnage has also been active, with the MV „FAR EASTERN VENUS” (53,500 DWT,2006, C4x30T, Imabari S.B.) fetching $21 million, while also Japanese built MV „IKANSERONG” (56,000 DWT, 2006, C4x35T, Mitsui Ichihara) achieved excess $ 22 million. Chinesebuilt and with survey due shortly MV „ORIENT RISE” (56,500 DWT, 2010, C4x30T, QinghanShipyard) achieved a rather weak $21.5 million from German buyers. Handymax vessels havealso been active with sistership vessels MV „PACIFIC CHAMP” and MV „PACIFIC ROYAL”(43,000 DWT, 1996, C4x25T, H.H.I.) achieving $9 million each, while slightly older butcomparable Japanese-built vessel MV „AZURE SKY” (45,750 DWT, 1995, C4x30T, ImabariS.B.) achieved a shade below $9 million. Slightly newer and larger, still Japanese built MV„EILHARD SCHULTE” (49,500 DWT, 1999, C4x25T, IHI) achieved $12.75 million from Greekbuyers, while slightly older and smaller Japanese-built MV „TINA A” (42,500 DWT, 1999,C4x30T, I.H.I) achieved $10.5 million by Danish buyers.

In the pure handysize market, MV „DANIELA BOLTEN” (23,750, 2007, C4x30T, Shin KochiH.I.) was sold at just below $15 million, while MV „CS SOLARIS” (28,500 DWT, 2001, C4x30T,Imabari S.B.) was sold at a shade less $13 million. Large handy MV „CARL OLDENDORFF”(31,500 DWT, 2002, C4x30, Saiki) was sold to undisclosed interests at $14.1 million.

MV DIETRICH OLDENDORFF (image source: Oldendorff Carriers)—

1/21/2014 S&P, Newbuilding and Demolition Update (January 18th, 2014) – Dry Bulk Focus | Karatzas Shipbrokers Register

http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/ 4/5

ONE THOUGHT ON “S&P, NEWBUILDING AND DEMOLITION UPDATE (JANUARY 18TH, 2014) – DRY BULK FOCUS”

Share this:

Like this:

Be the first to like this.

Like

Definitely lots of activity to report, and this is only in the dry bulk market. We understand thatmost of these sales, primarily of ‘older’ tonnage, are individual sales (as compared to en bloc‘corporate’ sales reported in our previous report) by independent owners, signifying still strongactivity in the market and expectations for a recovery. And, as not to be any doubts about thestrong market recovery expected – sometime, somehow – about eighty-five (85) were orderedso far in 2014, about four (4) vessels per diem, which, surprisingly, is well below 2013 activitywhen on average, seven (7) vessels were getting ordered each and every single day of the year,Saturdays, Sundays and holidays included.

Long live the market recovery!

© 2013-2014 Basil M Karatzas & Karatzas Marine Advisors & Co. All Rights Reserved.

IMPORTANT DISCLAIMER: Access to this blog signifies the reader’s irrevocable acceptanceof this disclaimer. No part of this blog can be reproduced by any means and under anycircumstances, whatsoever, in whole or in part, without proper attribution or theconsent of the copyright and trademark holders of this website. Whilst every effort hasbeen made to ensure that information herewithin has been received from sources believed to bereliable and such information is believed to be accurate at the time of publishing, no warranties orassurances whatsoever are made in reference to accuracy or completeness of said information,and no liability whatsoever will be accepted for taking or failing to take any action upon anyinformation contained in any part of this website. Thank you for the consideration.

This entry was posted in S&P Update and tagged Basil M Karatzas, capesize vessels,kamasramax, Karatzas Marine Advisors & Co., Marmaras Navigation, OldendorffCarriers, Transmed, ultramax by Karatzas Marine Advisors & Co.. Bookmark thepermalink [http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/] .

Print Digg Email Twitter 3 Facebook 2 Google

LinkedIn Reddit Tumblr Pinterest

Related

S&P, Newbuilding and Dem… S&P, Newbuilding and Dem… S&P, Newbuilding and Dem…In "S&P Update" In "S&P Update" In "S&P Update"

1/21/2014 S&P, Newbuilding and Demolition Update (January 18th, 2014) – Dry Bulk Focus | Karatzas Shipbrokers Register

http://shipbrokerage.wordpress.com/2014/01/18/sp-newbuilding-and-demolition-update-january-18th-2014-dry-bulk-focus/ 5/5

Pingback: S&P, Newbuilding and Demolition Update (January 19th, 2014) – TankerMarket Focus | Karatzas Shipbrokers Register