Greek Shipping News Cuts
Week 26 - 2010


Study finds unions and costs are crippling Perama shiprepair zone

---Almost two-thirds of the customers of the Perama shiprepair zone are likely to be one-offs, unwilling to return though the quality of work is considered to be so good it is the reason nearly 80% of jobs are secured in the first place. Union behaviour is the big turn-off according to the findings of a study conducted by the University of Piraeus.
Some 65% of clients said they would not return to Perama, with an enormous 74% of the customers saying the behaviour of Greek unions is 'bad'. For the customer respondents, this compares with a 'bad' behaviour rating of just 3% by shipyard unions outside of Greece.
The study, carried out among customers of the Perama zone and potential customers, found the other major deterrents are price and delivery times.
Some 32% of customers graded the level of prices in the Perama zone as 'bad' with 50% saying the prices were 'average'. When asked about prices outside of Greece 2% said they were 'bad' and another 2% described them as 'average'.
Regarding re-delivery times, 22% of customers rated this performance as 'bad' and another 22% as 'average' while non-Greek competitors got an 'average' rating from 17% and none gave the foreign yards a 'bad' rating.
Bright spot and prime competitive advantage of the zone is the quality of workmanship. Some 78% of those surveyed gave this as the reason of going to Perama, with 12% considering it 'excellent' and another 65% of customers said it was 'good'.
For potential customers some 83% had problems with delivery time and cost. And this was because of "word of mouth" which is considered "negative" as 68% said they don't use Perama because of information they have received from third parties.
A negative response came from 92% of those surveyed when it came to building ships in the zone, while 75% were negative regarding ship conversion.
However, the survey found that of those that do use the Perama zone, 56% backed it as a repair base, with 62% of these considering it reliable.
Among proposals which could lead to a recovery of the zone as a shiprepair base, was the lowering of prices; introduction of a common marketing and research; and bulk buying of suppliers and products.
For this to happen mergers and jvs should be encouraged. Indeed, George Anomeritis, chairman and md of the Piraeus Port Authority (PPA), owner of the land on which the zone is located said the bickering within the zone has to stop. He said that unless this happens "nothing will move forward".
Other representatives said the zone has to be modernised using European funding schemes. A guarantee and security mechanism needs to be devised which would enable a unified zone to bid for bigger jobs, use environmentally friendly products and become involved in the Defense industry.
-- Filed: 2010-07-01

Shipping confidence continues to improve
---(July 2 2010). Overall confidence levels in the shipping industry have risen further over the past three months, reaching their highest level since May 2008.
The number of respondents expecting finance costs to rise over the next 12 months, having peaked at their highest levels for 15 months in the previous survey, was down across all categories of respondent.
Charterers, meanwhile, were alone in thinking that rates in the tanker and drybulk trades were likely to fall over the next 12 months.
Confidence is starting to edge nearer to the record high of 6.8 recorded in the first Moore Stephens survey in May 2008. In the latest survey the average confidence level, on a scale of 1 to 10, expressed by respondents in the markets in which they operate was 6.3, compared to 5.9 in the previous survey in February 2010, which was itself the highest recorded level for 15 months.
In the tanker market, the number of respondents overall who expected rates to go up rose from 46% in February to 50% this time, the highest level since the survey began.
The biggest increase in optimism was shown by owners, with a 10%-point rise from 44% to 54%, followed by managers, up from 46% to 51%. But there was a fall in expectation on the part of charterers, 35% of whom expected rates to rise this time as opposed to 59% last time.

Newbuild frenzy at $1bn per week
---Tankers are proving most popular in the summer revival.
The same yard says it is ready to confirm more orders shortly (see story, page 8).
Tankers have proven the most popular with AET, NS Lemos and Cardiff Marine finalising contracts for nine suezmaxes worth more than $600m.
Kuwait Oil Tanker Co (KOTC) and Tanker Pacific have ordered eight aframax and panamax products tankers between them. The expectation is that tankers will dominate summer-contracting activity, taking over from bulkers. Kamasarmax-newbuilding investment is still continuing, however, with the latest being a double order from Hellenic Carriers, while Sinotrans has spent over $125m on four panamax bulkers.
However, one independent analyst says the additional ordering does not make sense given the current state of the orderbook.
Chinese shipyards are also expected to dominate the upcoming investment activity with their South Korean rivals having already largely filled their upcoming delivery slots.
By Adam Corbett London
Published: 21:59 GMT, 01 Jul 10 | updated: 21:12 GMT, 30 Jun 10

Ship-scrapping process continues
---By Nikos Bardounias - Kathimerini
At least 427 ships were taken to the scrapyard in the first five months of the year, with local shipowners renewing the Greek fleet at a rapid rate.
The total capacity of the scrapped vessels came to 13 million tons. Dry-bulk carriers comprised about 9.4 percent of this total, while tankers accounted for 30 percent, general carriers 23.6 percent, and container ships 10.7 percent, according to data supplied by Greek shipbroking firm Golden Destiny SA.
In May alone, ship withdrawals increased by a significant 19 percent over the previous month, reaching 100 vessels with a total capacity of 2.2 million tons. Existing data indicate that it was tankers and general carriers that had the biggest share of the scrappage in May, while the volume of offloaded dry-bulk carriers remains at particularly low levels, with just 12 vessels going to the scrapyard, whose total capacity came to 547,000 tons.
Scrapping rates posted a decline in May, compared with April, closing at $310 to $350 per ton for dry-bulk and general carriers and at $350 to $400 per ton for liquid load carriers.

Sale prices defy softening
Second-hand ship values have remained firm despite further softening in the dry market, with observers pointing to the large quantity of capital that listed players have awaiting investment as a prop to support current levels.
Some of the deepest pockets in the business belong to Peter Georgiopoulos. This week he is believed to have completed yet another big multi-ship deal. Sixteen Supramaxes ordered and controlled by the Setaf-Saget Group are believed to have been packaged up and sold for $545M to his New York-listed venture, Genco Shipping and Trading, with a finance subject due during July. The ships include 12 units of 53,000dwt and 57,000dwt delivered by Dayang between 2007 and 2010 and two from Cosco Nantong which were delivered in 2004 and 2005.
Although Capesize rates on some routes have fallen back to below $30,000/day, purchase interest remains strong and older ships are still achieving good numbers. The aptly-named China Fortune (built 1990 CSBC, 152,011dwt) has reportedly been sold for $20.8M, although it is not known whether charter employment is attached.
Unusually, two geared Panamaxes are reported to have changed hands this week, with Pallonji disposing of its high deadweight, Brazilian-built MP Panamax 2 (built 1985 Verlome Estaleiros 75,426dwt) for about $11M to Far Eastern buyers basis delivery after surveys passed, while Malaysian interests are thought to have picked up the much newer YK Sentosa (built 2000 Imabari, 73,725dwt) for $32.5M. Some broking reports suggest that Pallonji itself was behind the YK Sentosa purchase, but this remains to be clarified.
In addition to the en bloc Genco purchase, other Supramaxes have also been selling. Sunray (built 2008 Hantong, 57,000dwt) achieved a firm $36M with two-year timecharter attached at an also firm $20,000/day. Usui Kaiun of Japan, meanwhile, sold its Sunny Glory (built 2006 Mitsui, 56,057dwt) for $35M on a charter-free basis, in line with recent sales. The slightly smaller Delvina (built 2007 Yangzhou, 53,629dwt) is thought to have been committed at $31M, while the Handymax Barra (built 1998 IHI, 42,648dwt) went for $23M, according to broking reports. Naturally, the latter was discounted for its smaller deadweight and also because it is fitted with 25-tonne rather than 30-tonne cranes.
Older ships with good survey positions continue to attract interest. The Future 38 type Ocean Success (built 1987 IHI, 38,455dwt) is believed to have been sold for a very strong $13M.
Meadway Shipping is said to have disposed of its double-skinned, open-hatch type Handy Fadelsia (built 2000 Saiki, 31,651dwt) for $25M, a remarkably firm price, especially as delivery is not until November. The sellers bought the vessel from Oldendorff in 2005 for a reported price of about $26M so, given the earnings accrued over five years, it represents another successful investment for the Greek Handy specialist, which is currently marketing a sister ship, Great Mary.
Cido Shipping continues to gradually sell off tonnage, assisted by considerably firmer values than when it started its asset-disposal process. Latest to go is the Handysize Great Chance (built 2004 Shin Kochi, 28,701dwt) for which Greek buyers are thought to have paid $26.2M. The smaller, vintage Handy Savannah Belle (built 1982 IHI, 22,568dwt) reportedly achieved $2.85M, having last changed hands for more than $10M close to the peak of the market in summer 2007.
Tanker sales news has been dominated by reports that Ghandour has sold a newbuilding VLCC to Minerva for a price exceeding $110M. This is thought to be a 320,000dwt unit due for delivery from Daewoo later this year.
Meanwhile, the single-hull Arosa (built 1993 Hitachi, 291,381dwt) has been sold for $18M to undisclosed interests, almost certainly for storage or conversion to an ore carrier.
Although modern MR type sales have temporarily come to a halt, there is still demand for older ships to fit into regional trades, as exemplified by the double-bottom W S Enterprise (built 1990 Fincantieri, 42,086dwt) reportedly sold by Warm Seas Development of the UAE to West African buyers for an undisclosed sum.
The epoxy coated chemical tanker Samho Global (built 2007 Samho, 17,510dwt) has reportedly achieved about $22M, with palm oil transporting interests the most likely buyers for a ship of this size and specification.
The ships were originally contracted as a series by Claus-Peter Offen for timecharter to P&O Nedlloyd, and offer a service speed of 22.5kt.
$545M reportedly paid by Genco Shipping for 16 Supramaxes sold en bloc by Setaf-Saget
Source: Fairplay - Markets 01 Jul 2010

Safe Bulkers, Inc. ranked "The Best Performing Shipping Company for the Year 2009" by Marine Money Intl
Marine Money has been publishing its rankings for the past 20 years after evaluating about 100 companies from the shipping industry worldwide. The shipping companies are assessed on the basis of Asset Turnover, Profit Margin, Return on Equity, Return on Assets, Market Value of Equity and Book Value of Equity, which are combined to calculate Overall Performance.

Adriatic counts the cost after month-long blockade ends
--- * Friday 02 July 2010 * by Nigel Lowry
The company has produced an affidavit from the UK register that the vessels comply with safety requirements.
Injunction proceedings continue in Greece where a judge is expected to decide this month whether to confirm as a fixed judgement the initial temporary injunctions handed down by the court.

Fairsky Shipping & Trading S.A. Selects Seagull Training System
---Tuesday, June 29th, 2010
Fairsky Shipping & Trading S.A. has selected the new Seagull Training System for use across its entire fleet of ships and offices.
Fairsky Shipping & Trading S.A. is a bulk carrier operator with a 40 year tradition in shipping. It currently operates a fleet of 14 South Korean built vessels.
Fairsky Shipping & Trading S.A. attaches great importance to the continuous training of its personnel allocating significant recourses in using modern, technologically advanced and effective training tools and equipment. Fairsky Shipping & Trading S.A. said that it firmly believed that the adoption of the CBT system and in particular of the Seagull Training System would further enhance the quality of the onboard training provided, contributing in that way to its standing objective for continually upgrading the competence of the seagoing personnel.
Fairsky Shipping & Trading S.A. has stated that adoption of the training package was another evidence of their standing commitment to providing best-in-class services and conducting its operations maintaining the highest applicable health, safety and environmental standards.

Aegean Bunkering receives ISO 14001 certificate
----For its commitment to environmental management, Aegean Bunkering, has been awarded a certificate according to the international ISO 14001:2004 standard from Germanischer Lloyd (GL). The certification proves that Aegean Bunkering follows the principles of ISO 14001 and monitors environmental aspects of its business activities. Dr Hermann J. Klein, Member of the Executive Board, GL presented the certificate to Dimitris Melissanidis, the owner of Aegean Bunkering, and his general manager Nikos Hondos. "The company implemented a state of the art environmental management system especially developed for bunkering tankers. The system operates satisfactorily onboard the fleet with remarkable success in the limitation of wastes and emissions," explained Dr Klein. More and more organizations are required to demonstrate a sound management of economic, social and environmental issues to ensure sustainable development. Outlining the requirements for an environmental management system, a certification according to ISO 14001 covers all environmental activities of an organization. This helps to minimize negative effects on the environment and to comply with applicable laws and regulations. Aegean Bunkering is part of Aegean Marine Petroleum Network Inc which is a leading international marine fuel logistics company that markets and physically supplies marine fuel to ships in port and at sea. The Company procures product from various sources, including oil producers and traders, and resells to a diverse group of customers across all major commercial shipping sectors. Aegean Bunkering owns and operates one of the largest double-hull bunkering fleets in the world with 35 vessels currently in operation. 13 newbuildings will be delivered through 2010. Aegean Bunkering is present in 14 markets, including Vancouver, Montreal, Mexico, Jamaica, Trinidad and Tobago, West Africa, Tanger-Med,Gibraltar, U.K., Northern Europe, Piraeus, Patras, U.A.E. and Singapore, Las Palmas.
Source: Monday, 28 June 2010 12:12 nafsgreen,

Thenamaris signs with SpecTec
---(June 28 2010) SpecTec has signed up Thenamaris Ship Management for the supply of AMOS software and all the relevant consultancy for the Greek management fleet.
The software will be installed on an initial number of vessels and after a trial and calibration period, it will be expanded to cover the whole fleet.
The scope of the contract includes software licenses, maintenance and support, database construction, implementation and training.
The agreement between the two companies was achieved in close collaboration with SRH Marine Electronics, the sole authorised distributor of AMOS in Greece.
Thenamaris manages a large fleet of modern tankers and bulk carriers, mostly built after 2000. It is ranked as the 20th largest tanker company in the world.
As for SpecTec, the company has AMOS installed in over 2,500 tankers of all types.