As expected, the first week of 2014 was slow, mainly due to the sharp decline of BDI. As of this Friday, the BDI declined by 439 points, currently standing at the 1512 mark. Some say this is the December drop pushed forward by a month due to the increased imports of iron ore from China
As expected, the first week of 2014 was slow, mainly due to the sharp decline of BDI. As of this Friday, the BDI declined by 439 points, currently standing at the 1512 mark. Some say this is the December drop pushed forward by a month due to the increased imports of iron ore from China and the rise of minerals exports from India (which drove rates unusually high for the specific period of time). Regardless of this decline (which is considered by many as a correction), the sentiment remains positive, and 2014 is expected by many (including ourselves) to be a good year for shipping.
Bulkers: Although second hand prices in dry bulk sector remain firm in all sizes, Greek ship-owners are showing their faith in 2014 shipping market by continuing their buying spree; in an off market deal, caper CAPE PROVIDENCE (170K BLT 2010 DAEHAN/S. KOREA) was purchased by charterers Cargill for $38 mill (this being the 4th cape unit that they have acquired within one month). South Korean controlled Handymax AZURE SKY (45K BLT 1995 HASHIHAMA/JAPAN CR 4X30T) was snapped by Greek buyers for a soft $8.5 mill, compared to last week’s reported sale of two years younger unit TINA A (42K BLT 1997 IHI/JAPAN CR 4X30T) for $10.5 mill, also to Greeks. We picked up that German controlled handymax EILHARD SCHULTE (49K BLT 1999 IHI/JAPAN CR 4X25T) was privately sold to clients of Sicuro of Greece for $12.75 mill, while clients of Baru Delta of Greece have agreed to pay $14.2 mill for Chinese controlled handymax SEA PEACE (46K BLT 2000 KANASASHI/JAPAN CR 4X30T) (which was reported fixed & failed at $13 mill a couple of weeks ago). Modern Japanese controlled handy CYNTHIA PIONEER (23,6K BLT 2009 SHIN KOCHI/JAPAN CR 4X30T) was committed to Greek interests for $15 mill basis special survey due this March, setting a new benchmark for this size/age. Early noughties handy logger CS SOLARIS (28K BLT 2001 IMABARI/JAPAN CR 4X30.5T) has changed hands for $13 mill basis dry-docking freshly passed in December in China.
Demolition: As per our records, 1119 ships were broken up last year, making 2013 an exceptional year for the ship breaking industry. The majority of scrapped tonnage was bulkers, followed by general cargo vessels, containers, tankers and passenger-ships, while India held the lion’s share.CLICK ON THE LINK BELOW TO READ THE FULL REPORT IN PDF FORMAT:http://www.seanews.com.tr/reports/lion_10_jan_2014.pdf
