WEEKLY MARKET REPORT
May 30th, 2008 / Week 22
Charter rates for Panamax and Supramax vessels eased this week, especially in the Atlantic on the back of an
increase of tonnage supply. Both these indices finished the week lower than last Friday. On the other hand the
Capesize market consolidated its strength and finished the week higher and reaching yet another record high
level.
The largest iron ore producer in the world, Vale (CVRD) of Brazil, has confirmed the order of 14 VLOC
(including options) of 400,000 dwt. Rongsheng Shipyard in China has confirmed that they have received such
order. The deal is worth $ 2 billion and brings Vale's fleet of VLOC to 20 vessels, which make the mining giant
the largest owner of VLOC. There are 124 dry bulk vessels with dwt in excess of 200,000 mt on order (of which
abt 79 are VLOC) and another 60 single hull VLCC vessels which have and will be converted into VLOC. We
understand that TMT is currently negotiating to alter 6 VLCC contracts to VLOC.
Purchase enquiries continue to grow on all sizes and we are also seeing continued enquiries for non double hull
tankers for conversion.
A number of dry bulk sales took place but we note the sale of the older 1983 blt 139,650 dwt caper "Vega III"
committed for a healthy USD 40 mill. On the modern scale we note the sale of the 2008 blt 170,500 dwt caper
"Golden Sentosa" committed for just below USD 120 mill with 5 years t/c at USD 48,000 per day.
Not so many tanker sales to report but it is interesting to note that the double hull "Trader II" blt 1987 was sold
for conversion into dry, suggesting that no matter what type of hull a tanker may have if it is realistically priced it
will be sold for conversion.
