We take a look at what was said in the market in the past week.
“These positive developments may eventually soak up the expanded VLCC fleet. Until then some of the new VLCCs may try to enjoy a ‘student life’, being unemployed but with good prospects.”
A report from London shipbroker EA Gibson spills the beans on the continued pain for VLCCs which scrapping may not ease.
“If this was the VLCC market rates would surely now be in the three digit territory.”
Martin Korsvold of Pareto Securities reckons LNG vessels could be in for at least $100 dollars a day at this rate.
“The market was able to take a punch in the face in the form of 200 capesizes and loads of smaller vessels last year, but I doubt it will manage another punch without having to hit the deck.”
Erik Nikolai Stavseth, an analyst at Arctic Securities, reckons capesizes are in for another pummeling as more newbuildings enter the ring.
“The two choices are not related. We would have made the same decision as it is not related to that.”
Jacob Meldgaard, Torm’s CEO, contending that the decision by the Danish owner to abandon its pool concept is not at all linked to the exit of several pool partners last year.
(Torm set to chop tanker-pool format.)
“They were a big force in their heyday.”
A cash buyer source on the demise of German rival Eckhardt Marine which has bitten the bullet and appointed an insolvency administrator.
(Scrap ‘shock’ as Ackhardt hits the wall.)
“In this business you must have your wits about you. If you get a little greedy, think it is easy and buy at the wrong time, it comes back to bite you.”
A cash buyer tries to elicit some sympathy for those operating in the demolition business.
(Scrap ‘shock’ as Ackhardt hits the wall.)
“Shipowners in today’s market want a hassle-free way of selling.”
Steve Wansell, GM of cash buyer Mideast Shipping & Trading, is on the prowl for owners looking for an easy route to the beach.
(New face of the scrap trade.)
“If I was a shipowner and somebody offered me a very, very good price and said they could pay a deposit today for a May delivery, I would have to seriously think about it.”
One source gets very committal (kind of) on the current high scrap prices.
(High prices may bolster paper deals.)
“Shipping is at a crossroads in terms of finding new and incremental institutional interest. Those with larger market caps will find more success, while those with smaller market caps may be orphaned for some time.”
Dahlman Rose investment banker Matthew Rovelli reckons some shipping juveniles could spend 2011 with cap in hand.
(Tankers end year on $745m high note.)
“At other Indonesian mines local police have been used to retrieve samples taken by surveyors and they have also threatened to lock them up if they continue to do their job. Unfortunately, the stories of what is going on in Asia are no exaggeration.”
A cargo surveyor on claims of threats against them in Indonesia and the Philippines over inspections of nickel ore cargoes being loaded on bulkers.
(Cargo surveyors hounded in Asia.)
“Basically now is not the time to take a punt with a $30m-$60m vessel because the market for 2011 is cloudy.”
A source as a UK buyer is said to have snapped up two panamax resales with strong charters attached.
(Owners hold out for ‘safe bet’ buys.)
“I support the development of the shipbuilding industry but not at any price.”
Croatian parliamentarian Jerko Rosin who is in favour of shutting down loss-making yard Trogir Shipyard.
(Pressure mounts on Croatian yards.)
“We are almost there. This is Italian style! We are almost there.”
Euroceanica group managing director Tamir Ben Laiche as the Italian owner nears the cancellation of a pair of chemical tanker newbuildings in China.
“We are talking about moving a mountain more than 20,000 miles across the sea.”
Simon Liang, head of Sino-Pacific Shipbuilding Group, who is moving mountains to own mines in South America.
“It has always been my plan to focus on something that nobody else in China is doing.”
Secondary industries are just not for Liang.
“Everything here is very organized and systematic, there’s time for everything one wishes to do.”
Shalabh Mittal, head of Indian owner Mercator Lines, on either Singapore or Disneyland.
(Lion city provides more time for life’s pleasures.)
“We have had lots of crazy ideas over the years. If we decided to pull the trigger on something big then we would go out there.”
Fritz Heidenreich, president of online vessel-questionnaire system Q88.com, warns he could just push a few crazy ideas into action any time soon.
(Carving a name in the digital market.)
“We like the people and they like us and that helps.”
Tom Midttun, MD of marine broker NorthEdge, which has taken on the insurance interests of the Eitzen group.
(NorthEdge nets Eitzen broker arm.)
“Sunglasses wouldn’t help. In fact, wearing them would only exacerbate the effect. That’s because the glasses would not affect the green laser light – chosen because that colour is particularly irritating – but the laser would appear even brighter contrasted against the darkened background.”
Bryan Hore of BAE Systems which has developed a new laser which it hopes will be a blinding success in the fight against Somali pirates.
(Laser treatment for pirates.)
“Backed by plentiful supplies of ammunition and fuel on board the captured vessels, attack teams can be expected to operate more aggressively and to pursue more tenaciously. Attack teams that have boarded a target vessel and are up against a citadel situation can draw on tools and reinforcements to break down citadel defences.”
A report from Danish security analyst Risk Intelligence offers a chillingly accurate portent of things to come for the crew of the Danish arms ship Leopard.
(Pirate ‘aggression’ to rise.)
“In this event it is likely that offshore installations will suffer attacks from multiple fast moving speedboats. The attacks will likely aim to damage infrastructure and possibly to kidnap personnel, particularly expatriates. Attacks will be aimed at forcing companies to de-man facilities and declare force majeure.”
A report from Bergen Risk Solutions highlights the importance of the outcomes of three elections in Nigeria to the maritime security situation this year.
(Continued lull in Nigeria piracy may hinge on elections.)
“The activities of the South Africans were noticed by the staff at the building and they immediately alerted the authorities.”
An intelligence source in India as three South African ‘tourists’ were nabbed filming operations at Cochin Shipyard from their hotel balcony.
