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9/5/2012

Niovis Shipping orders BC at Mitsui


GENERAL COMMENT
Slow newbuilding market with only 5 contracts to report over the last week, all being Dry Bulk vessels. The South Korean Dongbu Group is behind the order of 4 Handysize Dry bulk vessels contracted at STX Dalian. Niovis Shipping of Greece has returned to Japan’s Mitsui ordering one 66,000 dwt Dry Bulk vessel. This is a new designed wide-beam and low draught version being able to compete with Panamaxes in draught-restricted ports. Hence, the slow order intake this week, yards are reporting continued interest and enquiries for MR and LR2 tankers and we expect to see more orders in these segments in the coming weeks.
ACTIVITY LEVEL
Tankers Dry Bulkers Others
Low Low Low
Average Far Eastern Prices
PRICES
PRICES (mill usd) This
week		 Last
week		 Low
2012		 High
2012
VLCC 300'dwt USD 94.0 m USD 94.0 m 94.0 97.0
Suezmax 150'dwt USD 60.0 m USD 60.0 m 60.0 62.0
Aframax 110'dwt USD 50.0 m USD 50.0 m 50.0 52.0
Product 47'dwt USD 34.5 m USD 34.5 m 34.5 36.0
Capesize 180'dwt USD 50.0 m USD 50.0 m 50.0 50.0
Panamax 76'dwt USD 29.0 m USD 29.0 m 29.0 30.0
Handymax 56'dwt USD 27.5 m USD 27.5 m 27.5 28.0
Prices are based on payment terms 40/60
NEWBUILDING CONTRACTS
Type No Size Yard Owner Del Mill$ Comm
BC 4 34000 dwt STX Dalian Dongbu 2013 24
BC 1 66000 dwt Mitsui Niovis 2014

TANKERS

CHARTERING - Crude
The VLCC market in the MEG remained active but soft as charterers continued their practice of drip feeding the market with new inquiry. May coverage in this market is now drawing to a close, and about 125 vessels have been fixed so far for May loading; there is certainly more than an adequate supply of tonnage to cover the few remaining May positions to be covered. It is expected that charterers will soon begin to focus on June positions whilst rate levels in the sector remain under downward pressure. A steady amount of VLCC activity in the Atlantic has resulted in ballasters from east of Suez showing an interest in this market, and thus, rates in the area have stayed relatively stable. More activity was seen in the WAF Suezmax market, and a moderate increase in rates has already occurred with further increases likely in the near future. The same was true for Suezmaxes in the Med/Bsea where rates spiked during the last week and where rates continue to rise. Aframax rates in the Nsea remained steady for the third week running, and it seems that owners are more than happy with the level of ws95. There were also few changes in the Baltic Aframax market where minimal activity resulted in this market not gaining any upward momentum. In the Med/Bsea Aframax rates softened against a modest interest from charterers. Caribs Aframax upcoast activity was brisk, and rates have now improved to the ws120 level.
CHARTERING - Product
West: With the amount of available tonnage in the Atlantic rates have dropped slightly. MR’s trading to the States from the Continent are today getting ws135/137.5 and LR1’s getting about ws95 level. For both sizes this is a decline of about 2.5/5 ws points. Handies trading on the Continent are being paid same level as last week i.e. ws185. With less activity in the USG/Caribbean area tonnage is building up and the rate for a straight upcoast voyage have dropped some 5 points to ws120. Backhaul MR cargoes are paying close to ws60, down some 5/7.5 points. East: Activity in the Middle East Gulf is still quiet and tonnage is ample. Rates for LR2’s have dropped some 2.5 ws points for East destinations from previous week, whilst LR1’s are unchanged at ws125. Lumpsum rate for Continent discharge today is paying about USD 2,000,000 for LR1’s and USD 2,350,000 for LR2’s. This is about USD 175/150,000 less than last week. MR’s are unchanged from last week and rates obtained are around the ws130 level basis 35,000 mtons.
ACTIVITY LEVEL
VLCC Suezmax Aframax P. E. of Suez P. W. of Suez
Active Firmer Mixed Soft Stable
RATES
DIRTY (Spot WS) This
week		 Last
week		 Low
2012		 High
2012
MEG / West VLCC 40.0 40.0 31.0 45.0
MEG / Japan VLCC 58.0 62.0 48.0 70.0
MEG / Singapore 260,000 59.0 62.5 48.0 72.5
WAF / USG 260,000 60.0 62.5 56.5 70.0
WAF / USAC 130,000 70.0 67.5 64.0 92.5
Sidi Kerir / W Me 135,000 85.0 82.5 65.0 110.0
N. Afr / Euromed 80,000 87.5 92.5 80.0 127.5
UK / Cont 80,000 95.0 95.0 85.0 110.0
Caribs / USG 70,000 120.0 107.5 95.0 140.0
CLEAN (Spot WS)
MEG / Japan 75,000 92.5 96.0 82.5 97.5
MEG / Japan 55,000 125.0 125.0 97.5 125.0
MEG / Japan 30,000 130.0 130.0 105.0 130.0
Singapore / Japan 30,000 130.0 130.0 115.0 130.0
Baltic T/A 60,000 95.0 100.0 95.0 135.0
UKC-Med / States 37,000 137.5 140.0 132.5 190.0
Caribs / USNH 38,000 120.0 125.0 120.0 185.0
1 YEAR T/C (usd/day) (theoretical)
VLCC (modern) 21,500 21,500 17,000 22,000
Suezmax (modern) 16,500 16,000 15,000 16,500
Aframax (modern) 13,250 13,250 12,500 13,500
LR2 105,000 13,500 13,500 13,500 13,750
LR1 80,000 12,750 12,750 12,500 13,500
MR 47,000 13,750 13,750 13,500 13,750
VLCCs fixed all areas last week:  52 previous week:  47
VLCCs avail. in MEG next 30 days:  88 last week:  85
(incl. vessels on subjects excl Tankers UK and Frontline)


SALE AND PURCHASE
Vessel Size Built Buyer Price Comm.
Centennial Jewel 300 955 1997 MODEC 32,00 For Conversion
Naviga 150 841 1998 Polembros 15,30 Enbloc
Nautica 150 812 1998 15,30
Bunga Kelana Satu 105 575 1997 Greek 9,50 Basis SS/DD due
Bunga Kelana Dua 105 976 1997 Polembros 8,80
Torm Ugland 73 708 2007 Indonesian 21,00
Maersk Cassandra 46 800 1995 European 10,00 Each Enbloc
Maersk Cameron 46 800 1995 European 10,00
Maersk Claudia 46 800 1995 European 10,00
Victory Ocean 19 481 1997 Japanese 10,90
Bitu Mountain 6 700 2007 Sargeant 9,00 Each Enbloc
Bitu Sea 6 700 2007 9,00

DRY BULK

CHARTERING - Handy
Atlantic market kept fairly stable, with fresh requirements fetching the spot tonnage. Skaw-Passero positions fixed around USD 5k for T/A shipments, while US Gulf fixtures were hovering around USD 20k for Cont direction. Fronthauls fixed same levels as last week, with fixtures reported at USD 17-18k levels. Pacific market has been weak and falling. For Indo-India, large eco Supra can fetch close to USD 11k bss N.China . Nickel ore cargoes are not seen in market anymore due to on-going Indo ban which has again taken away cargoes and putting pressure on market. Nopac also fixed around USD 10k dop Japan. Indian iron ore market remains quiet with less activity on WCI & ECI. WCI-China rates around USD 10k and ECI-China around USD 7k. Some ECI Supras have been ballasting to pick up Indo cargoes as well. RBCT rv fixed at APS USD 11k + BB USD 350k. Red Sea fertilisers to India are fixed high teens. Not much activity seen on short period and rates around USD 11k for large Supra.
CHARTERING - Panamax
Lack of fresh grain cargoes from ECSA is taking the market down in a rather steep decent for Atlantic fronthaul candidates and ballasters from the Pacific. 17 + 700 APS achievable mid-week. Transatlantic rounds are also coming off the mid teen level for the same reasons; lack of fresh requirements. In the Pacific some more Indonesian coal is not enough to prevent a sliding tendency as NOPAC and Aussie buiz is slower. Rounds are now under 10,000. Activity level is decreasing and sentiment losing confidence short term in both hemispheres, well supported by a falling forward curve.
CHARTERING - Capesize
Although still at levels covering little more than operating expenses, spot earnings improved by some 35% w-o-w. All or most of it is attributable to a healthier supply/demand balance for early positions in Atl - T/A business in particular. Atl rounds are up 100% to some USD 8200 on the back of tight prompt tonnage supply, whilst fronthaul levels are up only some 15% as a steady flow of ballasters from F.East keeps feeding this trade with more than sufficient tonnage. Nominal levels for the WAust/China conference trade are unchanged at an uninspiring USD 7.50 pmt, and only reduced bunker prices bring values for Pac rounds up 20% to USD 6750 - still a loss-making level for most ships. As usual when spot improves with support of paper, period activity has been substantial - exemplified by 170kdwt/blt 2001 S.Korea spot done for 4-6 months at USD 11750, 170kdwt/blt 1999 N.China mid May for 11-13 months at USD 11700, and 151kdwt/blt 1995 China prompt for 11-13 months at USD 10k.
ACTIVITY LEVEL
Capesize Panamax Handysize
Active Low Low
RATES
CAPESIZE (usd/day, usd/tonne) This
week		 Last
week		 Low
2012		 High
2012
TCT Cont/Far East (172' dwt) 28,500 24,900 19,500 43,000
Tubarao / R.dam (Iron ore) 9.10 8.50 7.90 12.70
Richards Bay/R.dam 8.40 8.25 8.20 11.00
PANAMAX (usd/day, usd/tonne)
Transatlantic RV 13,500 16,400 4,250 16,400
TCT Cont / F. East 18,500 22,800 13,950 23,900
TCT F. East / Cont 2,000 2,600   2,900
TCT F. East RV 9,500 11,800 4,950 12,300
Murmansk b.13-ARA 15/25,000 sc 9.20 10.15 6.95 10.15
Murmansk b.13-L.pool 15/25,000 sc 10.15 11.20 7.70 11.20
HANDYSIZE (usd/day)
Atlantic RV 12,670 11,850 5,000 15,100
Pacific RV 10,160 10,350 4,180 11,725
TCT Cont / F. East 17,750 17,000 11,500 23,400
1 YEAR T/C (usd/day)
Capesize 150,000 dwt 9,500 9,400 9,400 15,000
Capesize 170,000 dwt 12,000 11,900 11,000 17,000
Panamax 75,000 dwt 10,500 10,900 10,000 12,000
Handysize 53,000 dwt 11,250 11,500 10,000 12,250
Baltic Dry Index (BDI): This Week: 1156 Last Week: 1149


SALE AND PURCHASE
Vessel Size Built Buyer Price Comm.
Newlead Gujarat 79 263 2011 Greek 22,40
Voge Prosperity 75 100 1995 Undisclosed 17,50 Enbloc
Voge Prestige 75 100 1996
Vogetrader 72 171 1996 Undisclosed 21,50 Enbloc
Vogevoyager 72 171 1996
Chios Joy 68 364 1989 Greek 6,50 DD due
Mastro Giorgis II 52 370 1995 Indian 7,20
Evian 51 215 2002 Undisclosed 11,80
Atlantic King 27 786 1998 Undisclosed 8,50
Global Explorer 24 800 1996 Undisclosed 8,30 incl 3yTC@7,850pd

GAS

CHARTERING
The spot VLGC spot rates did not continue rising at the same pace as we saw 2-3 weeks ago, but nonetheless rates firmed further and as bunker prices have softened with lower crude, the daily results on modern VLGCs have reached USD 37,000 per day. Most of the VLGC spot action was in the East of Suez, the West market was much less busy and not as tight as we have seen earlier in the year. The continued strong spot freight market was spurred by spot FOB sales by a couple of the leading suppliers in the AG, whereby most load-dates in May were covered. One question arises; how many more FOB cargoes are left against the number of VLGCs returning load-ready to AG within May? At first glance it looks like the vessels will outnumber the cargoes whereby the freight peak is now (or "yesterday"). On the other hand we have seen similar counts in the past, 10 days into a month, where sufficiently many cargoes were made available to support continued strong shipping. It seems that LPG importers' and traders' appetite for the gas carries on and may support freight for a few more weeks.
ACTIVITY LEVEL
COASTER 15-23,000 cbm 82,000 cbm
Moderate Moderate Stable
RATES
SPOT MARKET (usd/month***) This
week		 Last
week		 Low
 High
82.000 cbm / FR 1,160,000 960,000 185,000 1,160,000
57.000 cbm / FR 900,000 900,000 725,000 950,000
35.600 cbm / FR 875,000 875,000 750,000 875,000
20.000 cbm / SR* 800,000 800,000 740,000 800,000
10.000 cbm ETH** 610,000 610,000 580,000 620,000
6.500 cbm / SR 490,000 490,000 470,000 520,000
COASTER Europe 325,000 335,000 245,000 345,000
COASTER Asia 237,500 237,500 235,000 240,000
* 20,000 cbm s/r reflects average spot market, LPG and Petchems (segment 15,000 / 23,000 cbm)
** 10,000 cbm eth reflects average spot market, Petchems and LPG (segment 8,200 / 12,500 cbm)
*** Excl. waiting time, if any


LNG
SPOT MARKET (usd/day) This
week		 Last
week		 Low
 High
East of Suez 138-145'cbm 130,000 120,000 105,000 150,000
West of Suez 138-145'cbm 135,000 125,000 110,000 150,000
1 yr TC 138-145'cbm 155,000 155,000 148,000 158,000


LPG/FOB prices (usd/tonne) Propane Butane ISO
FOB North Sea / ANSI 816.50 936.00  
Saudi Arabia / CP 810.00 895.00  
MT Belvieu (US Gulf) 514.49 761.04 864.80
Sonatrach : Bethioua 815.00 940.00

Source: Fearnleys

Shipbuilding News

Ship Finance International Limited (Ship Finance) today announced that the company has agreed to build four 8,700 TEU newbuilding container vessels at a major shipyard in Korea.
SinOceanic Shipping ASA has entered into a contract with Jinhai Heavy Industries, China, to build 10 x 8800 TEU state-of-the art super eco containerships for delivery from mid 2015. Upon delivery, all vessels will enter into long term, fixed charter parties, a company press release reads.
High contracting activity in the dry bulk segment continues also this week, with totally 18 ship orders. This includes the order from Eitzen Eco Bulk for up 9 handysize bulk carriers at the private owned Yangzhou shipyard in China. Also Oldendorff is taking advantage of low shipbuilding prices to build up its fleet, latest with declared options for further 2 handysize bulk carriers at Samjin.
Paragon Shipping has placed an order for two 4,800 TEU containerships with Zhejiang Ouhua, China to be delivered in 2014, according to the latest Intermodal Market Report. The price was not disclosed.
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