The softening in demand and price finally began to show through this week with many end buyers either at capacity themselves or choosing to wait and watch to ascertain the extent of the downwards price correction.
One full spares capsize vessel was concluded at some very strong numbers. The JIA FU STAR (23,425 LDT) found buyers at USD 545/LT LDT with 1,600 T IFO remaining on board. Another capsize from Chinese owners, the ETERXAL SEA (24,099 LDT) also with spare propeller and 1,800 T IFO on board was committed to a cash buyer for a slightly higher price (due to the additional bunkers), but at the time of waiting, rumors surfaced that the MOA was yet to be signed bringing forth indications of an impending failure of the deal.
Yet, with supply still strong, it is unclear whether local buyers will even be afforded much of a break to digest tonnage already in their yards.
Meanwhile, the end of the high season on reefers (usually around May or June every year) has highlighted an influx of reefers into the market, with lay up not the preferred option for many owners, due to the lack of future in the industry.
A new reality may be forthcoming in the next few weeks and it will take several sales to peg exactly where (i.e. how low) the market is due to settle, but without much question, the trend (especially from India
Market sales reported -
Vessel Name Type LDT Reported Price
JIA FU STAR Bulker 23,425 USD 545/LT LDT (with 1,600 T IFO upon delivery)
Source: (Sourced from GMS weekly). 24 May 2011
No comments:
Post a Comment