S&P activity slows

Low freight rates and the lacklustre performance of the Baltic Dry Index (BDI) appear to be wreaking havoc on the sale-and-purchase market.

According to Lion Shipbrokers of Greece only five bulkers changed hands this week, which is well below the totals tallied earlier this month.

“The BDI fluctuated above and below the 900 mark, sending negative vibes through the sale-and-purchase market and thus activity slowed,” it told clients Friday.

In the firm’s weekly market update report its research team indicated that the transactions included the sales of one panamax, two handymaxes and a pair of handysizes.

The Athens-based brokerage noted that the 79,600-dwt Great Fuzhou (built 2014), which was committed to Chinese buyers for $15.5m, is actually an unfinished hull.

As we reported the bulker is under construction at Jiangsu Shenghua Shipbuilding in China but had been sitting in lay-up. Today, Lion pointed out that the project was tossed on ice when the shipyard ran into financial problems.

“The vessel was cancelled by clients of Clipper of Denmark during the outfitting of the vessel,” the firm said Friday before noting the unit lacks a ballast water treatment system and isn’t compliant with the performance standard for protective coatings.