The BDI dropped further 136 points this week, currently standing at 1110, dangerously close to the psychological barrier of 1000 points.
Today it is the first day of the Lunar New Year, the year of the Horse. This year is expected to be a favourable year for Tourism, Logistics, Transportation & Shipping industries, as according to Chinese astrology, the horse is a symbol of quick travel & transportation. Some Feng Shui experts believe that the horse is symbolizing speedy success as it will jump every obstacle in its way, assisting people to reach their goals. However, as the horse is a competitive animal, one would have to try harder than others in the pursuit of success. The Chinese say that the dragon is the fastest in the sky and the horse on the ground, so usually, when something good or bad happens in a Horse year, it will come very quickly; thus the charter market is expected to see significant highs & lows, but to what extent, no one can predict. As per the Chinese Five Element theory, this year’s element is “wood”. Wood floats well in water (even nowadays smaller boats are still built out of wood), so the “wooden” element is expected to enhance Horse’s positive influence to the shipping market. In addition, as wood is produced from trees, this year should be favourable for the timber industry and log-fitted vessels may enjoy better rates in 2014. As spring is the season of the wood, an upward spike in charter rates is anticipated from March to May. This year is also known as “The Green Horse Year” due to wood’s association with greenery; some say that this will positively affect the “green” or “Eco-type” newbuilding orders as well as the demo-market which will experience an increase in “green” recycling of older ships. Regardless of what's in store for this Chinese zodiac year, we all hope that it will be better than 2013 (year of the Water Snake). Last but no least, we would like to extend our best wishes to our Far-Eastern readers for a prosperous & successful Year of the Wooden Horse - Gong Xi Fa Cai!
MARKET NEWS/ RUMOURS
The BDI dropped further 136 points this week, currently standing at 1110, dangerously close to the psychological barrier of 1000 points. Historically, the Far Eastern holidays are always slowing down the shipping market this time of the year, so we anticipate two quiet weeks ahead. However, despite the holidays, the falling charter market & firm asset prices, prospective buyers are not “holding their horses” and are out and about inspecting & buying tonnage:
Bulkers: We heard that 4 Greek buyers have been lined up to inspect Japanese controlled Tess52 supramax TROPICAL QUEEN (52.5K BLT 2005 TSUNEISHI/PHILLIPINES CR 4X30T) just within one week after she came officially in the market. At an auction in Hong Kong, clients of Eastern Pacific of Singapore were the highest bidders, offering $49.4 mill, for modern caper SANKO POWER (181K BLT 2010 SASEBO/JAPAN); remind you that she was sold to present owners back in July of 2012 for $33.5 mill). We picked up that one year younger caper CONCHES (179K BLT 2011 SUNGDONG/S. KOREA) was acquired for a price region $50-$51.5 mill by clients of Knightsbridge of Norway. At an auction in Italy on 22nd January 2014, the Deiulemar Dry Bulk Business Unit consisting of 12 bulkers (4 capes, 3 kamsarmaxes & 5 panamaxes), the seafarers embarked onboard the vessels, the 30 persons shore personnel, the mobile assets and all company’s in house equipment were sold en bloc to a joint venture of Augustea of Italy, Bunge of U.S.A. & York Capital of U.S.A. for Euro €81 mill (about $112 mill). Star Bulk of Greece has announced two days ago the en bloc purchase of post-panamax sisters GL QUSHAN & GL DAISHAN (98K BLT 2011 TSUNEISHI ZHOUSAN/CHINA) for $60 mill ($30 mill each) including charter back to the sellers for a period of 30-34 months and between 27-31 months respectively, each at a gross daily rate of $15,000 less 1.25% address commission on gross revenues. Older Japanese controlled post-panamax KAMISHIMA (95K BLT 1993 OSHIMA/JAPAN DD DUE 27TH MAR 2014) have been sold to Chinese buyers for $8 mill basis dry-docking surveys due in 2 months. In an off market deal, kamsarmax CHRISTINA VICTORY (82K BLT 2006 TSUNEISHI/JAPAN) changed hands for $23.5 mill (price in line with market), while panamax CHENGYANG PIONEER (76K BLT 2013 YANGFAN/CHINA) was committed to undisclosed interests for a solid $25-$26.5 mill level. We picked up that Greek buyers (hearing clients of Navitas) paid $25 mill for Vietnamese built supramax METROPOL (54K BLT 2012 HYUNDAI VINASHIN/VIETNAM CR 4X30T); remind you that one month ago same age but South Korean Hyndai built sisters GIANNUTRI & MONTECRISTO (55K BLT 2012 HYUNDAI/S. KOREA CR 4X30T) attracted $28 mill each. CLICK ON THE LINK BELOW TO READ THE FULL REPORT IN PDF FORMAT:http://www.seanews.com.tr/reports/lion_weekly_31_01_2014.pdf
