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48 Maritime Reporter & Engineering News Tanker Market Report Panamax Spot Market This sector was hit hard this quarter when the Athos I (single-bottom but doublehulled) ran aground in the Delaware River and cries of accelerated phase-out for single-hulls were immedi- ately heard. It was reminiscent of the both the Erika and the Prestige. Accelerated phase-out schedules of sin- gle-hull vessels entering into the United States have been proposed along with stricter liability for tanker owners, dou- bling the fines. Similar to the other sec- tors, Panamax rates in the Caribbean jumped well over WS 400 during this quarter. Valero fixed the 2004 built Energy Commander (70,000 Dwt) for WS 450 ($69,000 Dwt). December rates slid off slightly but regained their foot- ing by the end of the year, Citgo fixed the 2003 built Jill Jacob (61,000 Dwt) for WS 375 ($56,000/day) in mid- December. Caribbean rates closed out 2004 with rates hovering around WS 400. For vessels traveling from the AG going East rates followed the upswing of the market into and throughout November but unlike the other trades , this trade saw a very slight drop off in December. PDI fixed the 1986 built Mariella (78,000 Dwt) for WS 400 ($60,000/day). Newbuilding & Secondhand Sales Overseas Shipholding Group (OSG) purchased Stelmar Shipping for $843M after the Fortress Investment bid was rejected in the early part of the fourth quarter. The acquisition includes the Cabo Sounion, Reymar, Reginamar, and Reinemar, all 2004 delivered Panamaxes. This purchase has propelled OSG into the second largest publicly traded tanker company position (meas- ured by number of vessels). OSG sold the 1987 built Diane (64,140 Dwt) to TMT-Taiwan for $16M. AK Shipping purchased the 1986 built Pacific Falcon (71,829 Dwt) from Falcon Shipping for $19.25M. The 1993 built Antiparos (68,232 Dwt) was sold by Eletson to a Chilean buyer for $26M, the ship has been renamed the Papudo. Barbaro has ordered two 74,000 vessels from STX shipyard for $52M each, expected deliv- ery is during the early quarter of 2008. Geden lines has ordered four 50,000 vessels from Dong Yang shipyard for $35M each, expected delivery is 2006. Fleet Additions & Deletions The last 10 years the Panamax sector has stayed in the shadows compared to the other sectors but the next three years are expected to be very busy for this sec- tor. Last year had the most scrappings with 28, down slightly this year with 20. The demolition market remained quiet with only two ships sent for scrapping this quarter. The 1978 built Fair Mare (60,962 Dwt) was sold by Fairdeal to Pakistan for $402/ldt in November but rates continued to rise throughout the quarter. By December rates steadied at $430/ldt, the 1977 built Vitoria (56,390 Dwt) was sold by Polembros to Bangladesh for $434/ldt. 2005 is expect- ed to be very busy in terms of deliveries for this sector with 71 vessels expected in 2005. The orderbook is still growing with vessels with 2008 deliveries pour- ing in. This year 35 new Panamaxes entered into the fleet, the largest amount in 10 years. Although the last quarter was quiet with only one vessel entering the fleet. LMZ transoil took delivery of the LMZ Artemis (69,000 Dwt) from Daewoo. The trading inventory ended the year at 325 vessels. Aframax Spot Market The fourth quarter opened with an impressive spot market gain, nearly dou- bling since the end of the third quarter. Tonnage became tight in the US Gulf by mid- October and rates shot up, ConocoPhillips fixed the 1997 built Olympic Spirit II (96,000 Dwt) for WS 450 ($96,000/day). Rates declined slow- ly but steadied, throughout November rates bounced back and forth over the WS 400 line. December began and rates slid to WS 350 and remained at this mark till the close of 2004, the 2004 built Mare Tirrenum (110,000 Dwt) was fixed by Valero for WS 350 ($72,000/day). The Mediterranean rates also saw significant changes, by mid- October rates jumped to WS 430 ($113,000/day) mainly because of early fixings due to fears of early Bosphorus delays. But by December rates crashed dipping below WS 150, Tamoil fixed the 1993 built Mare Dorico (85,000 Dwt) for WS 140 ($28,000/day). Rate surpris- ingly bounced back the following weeks closing the year at WS 320 ($80,000/day). Vessels going East saw little change compared to the other routes. Rates spiked briefly during mid- November, dropped off in early December only to gain momentum COPSØ A/S VIKING LIFE-SAVING EQUIPMENT (America) Inc. 1400 NW 159 St. · Suite 101 Miami · FL 33169 · U.S.A. Tel: +1 (305) 614 5800 · Fax: +1 (305) 614 5810 e-mail: usasales@viking-life.com www.viking-life.com Circle 285 on Reader Service Card Circle 232 on Reader Service Card Subject Fuel Pipes MR MARCH 2005 #6 (41-48).qxd 3/1/2005 4:31 PM Page 8
