Greek Shipping News Cuts
Week 12 - 2011


Caution rules as Greek and Chinese refrain from ordering

---Chinese and Greek shipowners are keeping their wallets tightly closed.
Although some newbuilding orders have been reported during March, including Shandong Shipping booking capesize and supramax bulkers, Chinese and Greek owners were largely absent from the market during the first two months of 2011.
New figures from shipbroker Clarksons show they spent only $800m up to 1 March on new vessels, just 4.8% of global investment.
Last month, the single order from either country was from Ningbo Longsheng Shipping for a quartet of 76,000-dwt panamax bulkers.
If current trends are annualised, then investment by Greek owners in 2011 is set to fall by 88% and for Chinese owners by 73%.
TradeWinds reported recently how a lack of faith in the charter markets has persuaded Chinese owners to withdraw also from the secondhand market.
On the other hand, European owners overall, especially in Denmark, and other nations have been investing more on newbuildings, up 12% and 146.8%, respectively, on an annualised basis.
Clarksons says that in February, only 53 vessels of 4.2 million dwt were contracted, down 34.6% month-on-month in vessel numbers.
There were no orders reported for tankers during that month and only 15 contracts for bulkers.
Clarksons, however, has revised upward the number of ships reported as ordered in January from 64 to 81.
It means the world orderbook continues to decline, 3.2% down in the volume of vessels since the start of the year to 7,144 ships of 459.6 million dwt.
The trend is most pronounced, says the broker, in sectors with bloated orderbooks, including dry bulk.
Niche sectors, however, have bucked the trend, with the LNG and cruiseship orderbooks up by four and one vessel, respectively.
The broker attributes higher input prices to the fact that dry-bulk newbuilding prices have fluctuated little. Currently, a significant gap exists between the prices yards are prepared to offer and the levels needed to encourage owners to order in large numbers.
By Geoff Garfield London
Published: 23:01 GMT, 24 Mar 11 | updated: 21:00 GMT, 23 Mar 11

Greece Targets Cruise Ship Companies for Port Infrastructure
--- By Paul Tugwell
Last year Greece lifted the so-called cabotage restrictions that required non-European Union ships operating in Greek waters to employ Greek sailors. The move will provide Greece with an extra 1 billion euros ($1.4 billion) a year in revenue from tourism, according to the Athens-based Economy Ministry.
--Editors: Chris Peterson, Tim Farrand
To contact the reporter on this story: Paul Tugwell in Athens at

---Posted on 21 March 2011 by Marianna Kourti

Long-term 'non-doms' hit by latest U K budget
---UK's 2011 budget brought mixed news for non-UK-domiciled individuals, but overall appears to be good news for shipping, says accountant and shipping adviser Moore Stephens. The outstanding increase is a 60% hike in annual remittance basis charge for long-term non-doms.
The good news in the budget, announced March 23, is that the government also proposes not to tax foreign income or capital remitted to the UK for the purposes of Ocommercial investment in UK businesses', and to simplify some aspects of the current rules for non-doms to remove administrative burdens, which increased significantly from April 2008.
Further, good news is that it is also proposed no other substantive changes to the rules for non-doms will be made for the rest of this parliament. The government will issue a consultation document in June with a view to implementing the rules from April 6, 2012.
Sue Bill, a tax partner with MS, says: "The government will also be consulting on the introduction of a statutory definition of residence. Under current rules, the residency of individuals is a very grey area and greater certainty is only to be welcome. Again a consultation document is proposed for June with implementation of the new measure from April 2012. It is unlikely that there will be more detail until June, but the timetable should provide time for adequate planning.
"Overall, there seems to be an acceptance by the government of the positive impact that inward investment by non-doms brings to the UK".
There is also a new exemption from tax on foreign branches of UK companies whereby a UK company operating outside the UK through a foreign branch will be able to make an election to exempt the profits of its foreign branches from UK corporation tax. Such companies may be able to reduce or eliminate the UK corporation tax payable on branch profits by offsetting foreign tax paid on these profits in any case. This new foreign branch exemption, however, does not apply to shipping, to the extent that the foreign branch is not taxed in the overseas jurisdiction as a result of the terms of a double tax treaty.
-- Filed: 2011-03-24

Greek ferry operator NEL looks to buy Turkish peer
ekathimerini - 21.03.2011

Thenamaris and Evalend join Greek dash for boxships
--- * Thursday 24 March 2011, 17:13 * by Nigel Lowry
Contracts for widebeam 4,800 teu vessels similar to orders by Paragon and Tsakos
TWO more Greek shipowners have inked firm orders for pairs of post-panamax container vessels with Zhejiang Ouhua Shipbuilding as Greeks continue their surge of investments in boxships.
Thenamaris Ships Management has placed contracts for two 4,800 teu widebeam vessels at the Chinese yard, finally clinching a first boxship newbuilding project after focusing its sights on the container market last year.
The Dinos Martinos-led company, which has a substantial fleet of tankers and bulk carriers, was linked with several projects last year and signed letters of intent for two 2,500 teu vessels, with a potential optional additional pair, with Jiangsu Yangzijiang Shipbuilding.
But in confirming contracts have now been finalised with the Ouhua yard, a company executive said the earlier deal could not be firmed up.
The two 4,800 teu newbuilds are scheduled for delivery in 2013 and are believed to be costing about $57m each.
The vessels are due for delivery in January and March 2014 and are said to be costing about $57m-$58m.
Evalend has an existing relationship with the builder, with a series of five 37,200 dwt handysize bulkers due for delivery within this year from the same yard.
Confirmation of the two deals comes just days after fellow Greece based owner Paragon Shipping reported it has converted two kamsarmax bulker orders at Zheijiang Ouhua into 4,800 teu containership orders.
Earlier this week another Greek owner, the Tsakos Group, inked contracts for a pair of 4,700 teu widebeam ships with a South Korean yard.
Vessels of this design are in vogue for their flexibility to serve shallower draft ports in trades such as South America and Africa where a number of liner companies are determined to gain market share.

---(Mar 25 2011)
Tsakos Energy Navigation (TEN) has confirmed the signing of a contract for two DP2 shuttle tankers.
The 158,000 dwt Aframaxes were ordered from Sungdong on the back of 15 year timecharters to Petrobras that will generate $520 mill in revenues.
They are to be delivered in third and fourth quarters of 2012 respectively.
The company said that the capital gain from the sale will be over $5 mill while the free cash generated of $16 mill will be recorded in the first quarter of 2011. The cash will be used for future vessel opportunities.
COO George Saroglou explained, "Sale & Purchase activity is an integral part of TEN's operations that has generated close to $280 mill in capital gains.
"The transaction displays the company's ability to supplement its profits through sales and project its reputation of having a fleet with superior technical characteristics that appeal to prospective buyers of vessels," he concluded.

Paragon swaps bulkers for box ships
---GREEK Shipowner Paragon Shipping has agreed a change in ship type for an existing newbuilding order at a Chinese shipyard.
NYSE-listed Paragon placed an order for three Kamsarmax bulkers (82,000dwt) at the Zhejiang Ouhua Shipbuilding early last year, for delivery in 2012. They were assigned hull numbers 619, 622 and 624.
According to a Paragon statement, the last two vessels have now been switched in to 4,800teu box ships, with delivery pushed back to 4Q 2013. The first Kamsarmax hull is expected to be delivered as planned in mid-2012.
Source: Fairplay Daily News 21 Mar 2011

NewLead Holdings Ltd. Announces Participation in Scorpio's Handymax Tanker Pool
---PIRAEUS, Greece, March 21, 2011 /PRNewswire via COMTEX/ --
NewLead Holdings Ltd. (Nasdaq: NEWL) ("NewLead"), an international, vertically integrated shipping company, today announced that two of its product tankers, the Hiona and the Hiotissa, will participate in Scorpio's Handymax Tanker Pool ("SHTP"), a major tanker pool with more than 30 vessels currently participating.
The Hiona (37,337 dwt, 2003-built) and the Hiotissa (37,329 dwt, 2004-built) will enter SHTP upon completion of their current charter commitments. Both vessels are expected to enter the aforementioned pool in the second quarter of 2011 and will participate for a minimum of one year.
Mr. Michael Zolotas, president and chief executive officer of NewLead, stated, "We are pleased that the Hiona and the Hiotissa will participate in a competitive pool with a quality fleet profile. Both vessels will profit from full premium spot market opportunities while being fully employed, allowing NewLead to benefit from competitive earnings. As a result of this transaction, NewLead will have 100% of its product tanker fleet fixed for 2011."
As a result of this transaction, NewLead expects to have 78% of its operating days covered for 2011, 61% for 2012 and 50% for 2013.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international, vertically integrated shipping company that owns and manages product tankers and dry bulk vessels. NewLead currently controls 22 vessels, including six double-hull product tankers and 16 dry bulk vessels, four of which are newbuildings. NewLead's common shares are traded under the symbol "NEWL" on the NASDAQ Global Select Market. To learn more about NewLead Holdings Ltd., please visit the new website at