EMPTY WORDS FALLING ON DEAF EARS

Transcription

1 April 03, 2011 Volume 106, Issue 459 Week 13 Heʹs (Sachin Tendulkar) carried the burden of the nation for 21 years so itʹs time we carried him on our shoulders Virat Kohli Highlights Order yet to be signed Significant inventory waits Tiresome excuses / lack of clarity India, Pakistan and China push on MARKET COMMENTARY EMPTY WORDS FALLING ON DEAF EARS Another week gone, another week wasted with the Bangladeshi High Court judge YET to sign the order permitting the import of vessels for scrap into Chittagong. The decision has already been made it has come right from the top with the PM of Bangladesh wading into the dispute but whether tactical or not, this delaying has begun to frustrate all concerned with apparently yet another beaching tide to be missed. Already a significant inventory has built up outside port limits and is waiting for the green light to clear inwards onto the beaches for respective end buyers to begin the cutting process. Moreover, it is being speculated that the Bangladesh Environmental Lawyers Association (BELA) may be involved in trying to add measures to a bill that many end buyers already have a vague idea of what will be included. However, until the executed order is studied in black and white in its entirety, very few end buyers remain unwilling to commit to new units without first understanding what might eventually be required of them in the recycling process ahead. In the continued absence of Bangladesh, the markets in both India and Pakistan continued their recent resurgence with some high profile acquisitions at strong numbers. Both small and midsized tankers and bulkers found their way to end buyers in both countries at levels in excess of USD 500/LT LDT. China pressed on with the two marquee purchases of the week as a Chinese controlled aframax tanker and capesize bulker headed for local yards (albeit at slightly subdued levels at least some USD 50 off the Indian sub continent prices). Cash buyers and owners started to reposition their tonnage because of Chittagong s mixed messages with patience swiftly running out for any imminent resolution in Bangladesh. Whether corruption, intrigue or sheer laziness is the reason behind the delay it is all very rapidly becoming immaterial as the validity and promises of official empty words begin to become meaningless. Cash Buyer to be ISO 9001:2008 Certified For week 13 of 2011, GMS demo rankings for the week are as below: Demo Market GEN CARGO TANKER Country Ranking Sentiment Prices Prices 1 Bangladesh Bullish USD 485/lt ldt USD 510/lt ldt 2 India Steady USD 475/lt ldt USD 500/lt ldt 3 Pakistan Steady USD 475/lt ldt USD 500lt ldt 4 China Volatile USD 430/lt ldt USD 450/lt ldt

2 GMS Weekly Page 2 of 7 Page 3 BANGLADESH TIRED EXCUSES RENDER MARKET USELESS! Market paralysis As the days passed and tiresome excuses seeped through to the anxious majority waiting to deliver, beach and finish off the sagas of several vessels that have been waiting over time to meet their fates, many in Bangladesh began to lose their faith that any positive outcome would be forthcoming in the short term. Of course, there is always lingering hope as there was over the course of the week with abundant promises of tomorrow, tomorrow but little is ever resolved (as it has been now for a year) and any hope that remains must surely be fragile amidst the constant dialogue. All concerned bleeding Nevertheless, vessels wait and all those who have taken a punt on the market reopening are bleeding. There is an argument to suggest we would not be in this situation if it were not for the declaration that the market would be reopening nobody could have predicted the delaying tactics of the judge who should have signed the order on the very day it was announced. As it is, two tides have already been missed and there is no telling how much longer vessels waiting to deliver will be holding out. With the markets in both India and Pakistan as they are, now may be the time to cut losses (as certain cash buyers have already done) and divert a burgeoning inventory to a market where at least delivery and prompt payment is guaranteed. NO MARKET SALES REPORTED

3 Page 3 of 7 GMS Weekly INDIA CHAMPION PERFORMANCE! Quite aside from celebrating a famous (and only second) cricket world cup triumph this week, the local ship recycling market surged ahead with some unbeatable prices and demand. The insatiable appetite seems to be for vessels on the smaller size along with the favored 8,000 12,000 LDT units of all types that the vast majority of buyers can accommodate in their yards. Many have been expecting some form of buoyancy ahead of the traditional May holiday monsoon cooling period, so it is perhaps, a little surprise to see the market push on in such a fashion. There were some signs of softening by the end of the week as prices reportedly came off a bit, but steel prices remain strong and open buyers remained plentiful. The handysize bulker SOTIRIA (5,611 LDT) received an extremely surprising (and not reflective of market) level of USD 510/LT LDT this week perhaps owing to the fact that she is of a desired size and her main engine was recently upgraded / overhauled and two brand new generators installed as of A prompt delivery made her of more interest to local buyers as well. India champion at cricket and ship recycling Pre monsoon bullishness? India valuable outlet in absence of Bangla Whether the recent world cup triumph can further spur levels on into the next few weeks remains to be seen, but in the continued absence of Bangladesh, both India and Pakistan are proving to valuable outlets for cash buyers and owners alike. MARKET SALES REPORTED VESSEL NAME TYPE LDT REPORTED PRICE SOTIRIA Bulker 5,611 USD 510/LT LDT

4 GMS Weekly Page 4 of 7 PAKISTAN ALWAYS OUTMANNED, NEVER OUTGUNNED! Taking home some big units Gulf Nomad finally sells excess 500 As perhaps the biggest mover of last week (with several large as is vessels tied up and yet more being negotiated), some slight strains in capacity were starting to show come Friday, as end buyers began to exhaust their finances and available space to actually take vessels. Nevertheless, as India also peaked, Pakistan became a viable market alternative to a Bangladeshi market stuck in a quagmire of political administration and perhaps intrigue. Steel prices remained strong and a lack of beaching tides coupled with an easier import process for tankers has left Gadani as a favored market for many of late. The one market sale that did register the heavily circulated GULD NOMAD (9,015 LDT) from Middle Eastern owners fetched a remarkably strong USD 510/LT LDT as is Fujairah with sufficient bunkers for the voyage to most probably Pakistan (as opposed to Indian with its hot works certification required). MARKET SALES REPORTED VESSEL NAME TYPE LDT REPORTED PRICE GULF NOMAD Tanker 9,015 USD 510/LT LDT ( as is Fujairah)

5 Page 5 of 7 GMS Weekly Page CHINA SNATCHING THE BIG ONES! Despite the gulf in levels clearly evident from recent sales, China still managed to pick up the two largest units for the week as both a capesize and an aframax tanker registered to local yards in both South and North. Afra and a cape go to local buyers Two weeks ago the COSCO controlled aframax tanker FLY EAGLE (17,333 LDT) was sold for USD 520/LT LDT into South China yard Xinhui (with 1,500 T IFO and 150 T MDO remaining on board at time of delivery). This week with few cash buyers willing to take a chance on an as is delivery Singapore at competitive numbers (due to the continued confusion in Bangladesh particularly on the delivery status of tankers), COSCO sold another of their aframax tankers, the MILKY WAY (16,593 LDT) for USD 465/LT LDT to South yard Xinhui with approx 300 T of bunkers ROB at time of delivery. The capesize bulker MERIT LAND similarly went direct from Chinese owner to Taizhou yard in the Shanghai region for USD 455/LT LDT the vessel had closer to USD 500 T of bunkers remaining on board at time of delivery. Nevertheless, as two days of Chinese tomb sweeping holidays approach, the market remains some USD 50/LT LDT at least behind both India and Pakistan levels currently. However, with Bangladesh still out of the game, local buyers could be hopeful of continuing to pick up their share of geographically positioned tonnage (particularly from local owners who seem reluctant to risk the requirements and more stringent arrivals procedure of an Indian sub continent delivery). MARKET SALES REPORTED VESSEL NAME TYPE LDT REPORTED PRICE MERIT LAND Bulker 22,250 USD 455/LT LDT (with 500 T IFO ROB) MILKY WAY Tanker 16,593 USD 465/LT LDT

6 Page 7 of 7 Miscellaneous Page 6 of 7 WORLD CUP CRICKET TRIVIA! The first three world cups were held in England. The only person to have played both World Cup Football and World Cup Cricket is Viv Richards Antigua at football and West Indies at cricket. Anderson Cummins is only the second player to represent two different teams in the World Cup (West Indies and Canada 2007). The other is Kepler Wessels who played for Australia in 1983 and for South Africa in A close call was Graeme Hick, who played for England in , and 1999, and was in the Zimbabwe squad for the 1983 World Cup but did not get a game. At the first four World Cups, all players wore the traditional white uniform and red balls were used. In 1999, the trophy won by the Indian cricket team at the 1983 World Cup was damaged during a violent rampage on the Indian cricket boardʹs headquarters by the Hindu nationalist group Shiv Sena. Sri Lanka (and now India), who co hosted the 1996 Cricket World Cup, is the only host to win the tournament (although the final was played in Pakistan). IMPORTANT DATES BANK HOLIDAYS April 01 Bank s Inventory April 16 Mahavir Jayanti April 22 Good Friday INDIA BEACHING TIDES Apr 02 Apr 09 Apr 15 Apr 23 BANK HOLIDAYS BANGLADESH BEACHING TIDES April 14 Bangla New Year s Day Apr 04 Apr 07 Apt 17 Apr 20 Prices indicated above are as reported in the market and are not necessarily accurate. This information is provided without prejudice and is given in good faith and without any guarantees whatsoever. While every care has been taken in the preparation of this report, no liability can be accepted for any loss incurred in any way whatsoever by any person relying on the information contained herein. Opinions expressed herein may be deemed subjective and arbitrary. This WEEKLY is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of this information by persons or entities other than the intended recipient is prohibited.

7 Page 7 of 7 GMS Port Report ALANG - Port Position as of April 01, 2011 No. VESSEL NAME LDT TYPE STATUS 1 Basil 14,158 Bulk Carrier Arrived Oct 31 2 Bright Star 4,112 General Cargo Beached Mar 25 3 Coral Moon 5,430 RoRo Arrived Nov 24 4 Fiona 2,385 Reefer Beached Mar 26 5 Green Iceland 2,722 Reefer Arrived Mar 29 6 Nehad - D 5,250 General Cargo Arrived Feb 08 7 Siam Project 5,066 RoRo Arrived Mar 11 Total Tonnage 39,123 CHITTAGONG - Port Position as of April 01, 2011 No. VESSEL NAME LDT TYPE STATUS No new vessels reported Total Tonnage 0 GADANI - Port Position as of April 01, 2011 No. VESSEL NAME LDT TYPE STATUS 1 Emirates Star 1,127 Tanker Arrived Mar 31 2 Gulf Tiger 14,787 Tanker Arrived Mar 28 3 Marilyn 6,102 Bulker Arrived Mar 31 Total Tonnage 22,016 WHILE EXTREME CARE HAS BEEN TAKEN IN THE PREPARATION OF THIS REPORT, NO LIABILITY CAN BE ACCEPTED FOR ANY LOSS INCURRED IN ANY WAY WHATSOEVER BY ANY PERSON RELYING ON THE INFORMATION CONTAINED HEREIN.