Weekly Market Report

Issue: Week 14 | Tuesday 9th April 2013

Brokers insight
By Christos Mantzios Mid April and me to sit back comfortably and assess what Q1 has brought to the dry bulk market. For starters lets analyze the basic parameters that shaped the outline of the market during the rst three months. First and foremost, there has been a revival in appete for bulk carriers across the whole spectrum, from capesizes down to handysizes, NB and secondhand. The buying momentum has been building up considerably since mid-January where we saw the 2005 blt Mitsui supramax (56kdwt) change hands for mid US$ 15's mil, rising up to beginning of March were a comparable 2006 built Mitsui Supra managed a price of US$ 17 mil. Prices for high quality Japanese built modern tonnage stabilized and edged up driven by the numerous buyers in the market, many of whom are wellrespected names in the industry (not only pure bulker players but some with a diversied eet), who felt that the me to invest in dry bulk tonnage is now. Whats more is that this vote of condence in the dry bulk market was further reinforced by the fact that fresh new building contracts have oulanked deliveries so far this year, spearheaded by big names such as John Fredriksen. Same has penned orders for 36 capesizes at various Chinese Shipyards (the majority) albeit at aracve pricing/terms. This number stood at a sharp contrast to the meager US$ 5,000 per day that capesize spot rates had reached at the end of last week. Also worth menoning is the news that March marked the highest volume of NB ordering that we have seen over the past 3 years. Of these new orders, 19 have been with ECO characteriscs. Its worth taking into consideraon that although new orders maybe spurring, the orderbook to exisng eet rao has been rapidly decreasing (48 pct for all type of bulkers in 2012 , 28 pct in 2013) with capes and panamaxes showing the biggest improvement. O course it remains to be seen whether owners can restrain themselves from overindulging themselves, as the lures brought about from the aracve NB prices along with new fuel ecient and more technologically advanced designs are hard to resist. Adding to the resurgence in NB acvity, the rst quarter of the year noced an unprecedented dash for secondhand tonnage with supply of modern units (up to 7 years of age) slowly being made available for sale (few vessels on the market at the same me) and Sellers toughening their stance, encouraged by the many serious buyers all chasing the same vessels. Another good example is the recent reported sale of Micaela Della Gaa (82kdwt blt 2006 Tsuneishi) managed to aract high US$ 17 mil aer many buyers inspected her in Australia, when the Ikan Bayan albeit smaller (75kdwt) and older (2005 blt Sanoyas) had fetched mid US$ 15's mil in the beginning of the year. Same has been noced for 15 years old handymax vessels with most notable the recently reported sale of Ken (46kdwt 1998 blt Sanoyas) which went for mid US$ 9's mil with June delivery, when Global Glory (45kdwt blt 1998 Tsuneishi) fetched mid US$ 7's mil earlier this year. Therefore it can be safely said that good Japanese built second hand tonnage would nd a new home once placed in the market (or privately) aer serious interest on her and with gures most likely exceeding last done. So there you have it. On the backdrop of freight rates that nd it hard to sustain any posive momentum despite temporary gains caused by port congesons and sudden spikes in available stems, increased scrapping as a counter balance to the strong volume of deliveries and dropping orderbook to eet rao, a signicant number of market players nd it as an opportunity to take advantage of this market and increase both their NB ordering, while also gradually strengthening the second hand market. Chartering (Wet: Soer- / Dry: Stable- ) April didn't kick o posively for the Dry Bulk market, which has been looking for a clear direcon for quite a while now. Capes are sll the main force that weighs on the BDI leaving it unable to reach any closer to the 1,000 points level. The index closed today (09/04/2013) at 856 points, down by 2 points compared to Mondays levels (08/04/2013) and a decrease of 40 points compared to previous Tuesdays levels (02/04/2013). The Aframax segment has been the main posive note in the crude oil market, with rates around the Connent being lied up by the very strong Balc acvity. The BDTI Monday (08/04/2013), was at 712, 54 points up and the BCTI at 659, a decrease of 24 points compared to the previous Tuesdays levels (02/04/2013). Sale & Purchase (Wet: Stable+ / Dry: Stable- ) Tankers completely dominated the SnP acvity last week. When looking through the reported deals list it certainly feels like the MoRe the beer.. Indeed the MR frenzy connues to gather strength with Italian owner Scorpio increasing their eet by four, a week aer Greek owner Navios has goen into the MR race with a bang. On the Tankers side, we had the sale of the EAGLE ALBANY (107,160dwt-blt 98 Japan) , which was reported sold to Far Eastern buyers at a price of $ 9.5m. On the dry bulker side, we had the sale of the TAMOU (177,243dwt-blt 05 Japan), which was picked up by Greek buyer Diana Shipping for a price in excess of $27.0m. Newbuilding (Wet: Stable- / Dry: Stable- ) The newbuilding market has seen less deals coming to light this past week, but with those ever present Cape orders sll popping up. Frontline, the usual suspect behind the majority of the Cape orders, has hit headlines again, as the Norwegian colossus was reported to be returning to China to add another four to their ever growing orderbook. The example of Mr. Fredriksen, who prefers to add new, fuel ecient tonnage to his eet has been followed by other owners recently and has resulted in a Cape orderbook which has been growing by levels that would have looked unrealisc last year. Maybe these owners are seeing something that most others aren't. Self-fullling prophecies are very common in the stock market, however in the world of shipping where its all about derived demand its a very dierent story and one that needs actual growth in global trade in order to have a happy ending. In terms of reported deals this week, Greek Marine Management Services reportedly placed an order for three rm plus two oponal Kamsarmaxes (82,000dwt) at Jiangsu New YZJ, China for a price of $ 26.0m and delivery between 2015 and 2016. Demolion (Wet: Stable+ / Dry: Stable+ ) The acvity in the demo market sll remains subdued compared to the rst couple of months of 2013. This past week saw Chinese breakers fairly inacve on the back of the holiday there as well as their oered prices which have even seen a widening of the gap with the Indian SubConnent over the past few weeks. At the same me India connues to oer very rm bids to those owners who have decided to beach their vessel, encing the majority of candidates away from a currently polically unstable Bangladesh and at the same me compeng head to head with the ever eager Pakistani breakers. The former have in fact shown great determinaon to steal some of the acon that has been taking place in India resulng in breakers there rming their bids even further. Prices this week for wet tonnage were at around 385-445$/ldt and dry units received about 365-425$/ldt.

Wet Market
Spot Rates
Week 14 Vessel Routes WS $/day points 32 19 38 65 60 55 78 98 110 88 99 125 135 155 110 105 118 4,887 -13,576 16,081 20,125 13,532 9,838 9,675 24,281 36,114 9,973 17,823 19,411 13,097 22,527 16,652 13,035 15,714 Week 13 WS points 34 19 37 76 62 58 76 97 99 88 105 135 143 160 110 105 120 $/day 6,305 14,780 $/day 2013 $/day 2,342 -3,363 5,746 5,541 2,798 4,285 2,782 4,307 5,067 3,373 3,315 4,058 4,867 6,942 4,285 3,232 4,068 2012 $/day 21,835 1,604 31,457 22,121 13,373 22,181 14,182 13,700 18,517 12,325 11,258 10,867 9,251 19,062 16,571 14,735 13,028
WS poi nts
TC2 TC4 TC6 TC1

Indicative Period Charters

%
-22.5% 8.8%

- 12/24 mos - 12/12 mos -

- 'Zaliv Vostok' - 'Freja Polaris'

2009 arnd $ 15,500/day 2004 $ 12,700/day

104,527dwt - Navig8 37,000dwt - Scorpio

VLCC

265k MEG-JAPAN 280k MEG-USG 260k WAF-USG 130k MED-MED 130k WAF-USAC 130k MEG-CHINA 80k MEG-EAST MED-MED UKC-UKC CARIBS-USG MEG-JAPAN MEG-JAPAN UKC-USAC MED-MED UKC-USG MED-USG CARIBS-USAC 80k 80k 70k 75k

-15,877 14.5% 27,595 -27.1% 16,960 -20.2% 12,986 -24.2% 8,702 22,744 26,287 9,224 18,904 14,290 22,857 15,658 12,268 16,315 11.2% 6.8% 37.4% 8.1% -5.7% -8.3% -1.4% 6.3% 6.3% -3.7%

Suezmax

TD3

TD5

TD8

TD4

160 140
WS points

DIRTY - WS RATES

120 100 80 60 40 20

Clean

Aframax

55k 37K 30K 55K 55K 50k

22,468 -13.6%

Dirty

TC Rates
$/day VLCC Suezmax Aframax Panamax MR Handy size 300k 1yr TC 300k 3yr TC 150k 1yr TC 150k 3yr TC 110k 1yr TC 110k 3yr TC 75k 1yr TC 75k 3yr TC 52k 1yr TC 52k 3yr TC 36k 1yr TC 36k 3yr TC Week 14 19,200 24,700 16,200 17,700 13,450 15,200 15,450 15,700 14,200 14,700 12,950 13,700 Week 13 18,700 24,200 16,200 17,700 13,200 15,200 15,700 16,700 14,200 14,950 13,200 13,700 % 2.7% 2.1% 0.0% 0.0% 1.9% 0.0% -1.6% -6.0% 0.0% -1.7% -1.9% 0.0% Diff 500 500 0 0 250 0 -250 -1000 0 -250 -250 0 2013 20,089 25,807 16,732 19,879 13,732 15,521 14,768 15,343 14,179 14,789 13,107 13,682 2012 22,375 27,195 17,606 21,152 13,889 16,070 13,245 14,368 13,764 14,589 12,567 13,378

260 240 220 200 180 160 140 120 100 80 60

CLEAN - WS RATES

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old VLCC Suezmax Aframax LR1 MR 300KT DH 150KT DH 110KT DH 75KT DH 52KT DH Apr-13 Mar-13 55.0 40.0 27.0 25.0 25.0 55.6 40.0 27.1 25.0 25.0 % -1.1% 0.0% -0.4% 0.0% 0.0% 2013 56.6 40.3 27.6 25.3 24.7 2012 62.9 44.9 31.2 26.7 24.6 2011 77.6 54.4 39.1 35.2 28.4

Chartering The main problem of the VL market has proved to be the oversupply rather than the lack of xture acvity this past week. Rates for Eastbound voyages didnt manage to avoid sliding down further, despite the number of enquiries being fed to the market by charterers maintaining its levels. Rates for Westbound trips were fairly at on a WS basis and although they have marginally improved, the fact remains that there is nothing posive expected in the near future for this segment. Although the week ended on a more posive note than the one it started with, rates overall fell and those rmer market levels claimed by Suezmaxes a couple of weeks ago, quickly disappeared. The most notable decreases were faced by owners ballasng their vessels in the Med region, as crossMed rates managed to slide a whopping 23% from the WS levels they had reached two weeks ago, proving that crude is sll cruel nowadays. Afra owners headed o to their weekend happier than the rest of the market, as stronger Balc acvity resumed this past week boosng rates signicantly up as tonnage availability in the area wasn't enough to sasfy the appete of the local charterers. Although must of this rming was due to demand for ice class tonnage, the spill-overs of the acvity in the area lied up UKC acvity for a second week in a row, while rates in the Black Sea/ Med region pointed up slightly as well.

Sale & Purchase In the Aframax segment this week, we had the sale of the EAGLE ALBANY (107,160dwt-blt 98 Japan) , which was reported sold to Far Eastern buyers at a price of $ 9.5m. In the MR sector we had the re-sale of the STX JINHAE 1463 (50,400dwtblt 12 S. Korea), which was picked up by Greek buyer Navios for a price of $ 34.5m

Intermodal Research

09/04/2013

Dry Market
Baltic Indices
Week 14 05/04/2013 Index $/day
BDI BCI BPI BSI BHSI

Indicative Period Charters

$/day %

Week 13 29/03/2013 Index $/day 910 1,249 1,176 944 547 $4,678 $9,412 $9,866 $8,111

Point Diff -49 -34 -82 -32 -22

2013 Index 804 1,361 908 787 468

2012 Index 921 1,571 965 906 518

-6/8 mos - 'Hampton Bridge' - dely Pusan 10/14 Apr - 4/6 mos - 'Sofia' - dely Karachi 16/20 April

2012 - $ 11,500/day 2011 - $ 9,500/day

76,500dwt - Glencore 56,719dwt - Cargill

861 1,215 1,094 912 525 $4,261 $8,755 $9,533 $7,797

-8.9% -7.0% -3.4% -3.9%

Baltic Indices
3,000 2,500 2,000
Index
BCI BPI BSI BHSI BDI

Period
$/day Capesize Week 14 170K 6mnt TC 10,700 170K 1yr TC 170K 3yr TC 76K 6mnt TC 76K 1yr TC 76K 3yr TC 55K 6mnt TC 55K 1yr TC 55K 3yr TC 45k 6mnt TC 45k 1yr TC 45k 3yr TC 30K 6mnt TC 30K 1yr TC 30K 3yr TC 12,075 13,700 11,075 9,700 9,950 11,200 9,700 10,200 9,700 8,450 8,950 7,700 8,200 8,700 Week 13 10,950 12,450 13,700 11,450 9,950 9,950 11,575 9,700 10,200 9,950 8,450 8,950 7,950 8,200 8,700 % -2.3% -3.0% 0.0% -3.3% -2.5% 0.0% -3.2% 0.0% 0.0% -2.5% 0.0% 0.0% -3.1% 0.0% 0.0% Diff -250 -375 0 -375 -250 0 -375 0 0 -250 0 0 -250 0 0 2013 11,477 12,129 13,700 10,357 9,039 9,361 10,227 9,379 9,879 8,504 8,057 8,843 7,164 7,539 8,700 2012 13,549 13,885 15,282 11,003 9,906 10,888 11,176 10,330 11,195 9,375 8,849 9,575 8,255 8,424 9,450

1,500 1,000 500 0

Handysize Handymax Supramax Panamax

Average T/C Rates

30,000 25,000 20,000
$/day
AV R 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

15,000 10,000 5,000 0

Chartering

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old Capesize Panamax Supramax Handysize 180k 76K 56k 30K Apr-13 Mar-13 33.0 18.5 18.5 17.0 34.0 18.5 18.5 17.0 % -2.9% 0.0% 0.0% 0.0% 2013 33.8 18.6 19.2 17.1 2012 34.6 22.7 23.0 18.2 2011 43.5 31.3 28.1 23.5

Week by week it feels like the deeper we dig the further away we nd ourselves for the exit out of the tunnel. The story of Capes in parcular causes further anxiety to owners, as those so important catalysts, which are needed for a denite reversal of rates, seem to be missing from the market right now. With the average rate approaching the level below $4,000/day and with no parcular interest from charterers in either basin, as demand for commodies has not been what was expected to be in the beginning of the spring, we can only pray for a not completely devastang summer period. The Panamax market has denitely lost the steam it went into the spring season with. Rates soened for a second week in a row in both basins. Acvity in the Pacic came o as the holiday in China quietened signicantly most of the tradional routes in the area. The Atlanc basin remained a bit acve, while rates in South America did taste the pressure oered by the congeson that was sll clearing through. We don't expect Panamax rates to make a big comeback this week. We do believe though that the sector is equipped with beer resistance over the next couple of months as the grain season gets into full swing. Rates for both Supras and Handies followed the sluggish trend of the market this past week, with subdued acvity in the Pacic basin weighing down on rates oered for all main routes in the area and with Handies facing the biggest decreases on rates oered for voyages xed in the Connent with desnaon USGulf.

Sale & Purchase

In the Capesize sector we had the sale of the TAMOU (177,243dwt-blt 05 Japan), which was picked up by Greek owner Diana Shipping for a price in excess of $27.0m. In the Handymax sector we had the sale of the STAR SEA BREEZE (48,500dwt-blt 01 Japan), which went to Greek buyers for a price of $ 11.5m.

Intermodal Research

09/04/2013

Secondhand Sales
Tankers
Size
AFRA

Name
EAGLE ALBANY

Dwt
107,160

Built
1998

Yard
KOYO MIHARA, Japa n

M/E
MAN-B&W

SS due
Aug-13

Hull
DH

Price
$ 9.5m

Buyers
Far Ea s tern

Comments
SS/DD due Aug 13 RBS controll ed s a le, SS due Apri l 13 SS due Apri l 13, bs s ppt dely USG

AFRA

BRITISH OAK

106,500

2003

TSUNEISHI, Ja pan

B&W

Apr-13

DH

undi s cl os ed

Greek

AFRA

NORDMARK

105,337

1998 HALLA ENG, S. Korea

B&W

Apr-13

DH

$ 8.2m

Ukrani an

LR1

CHEMTRANS SUN

71,675

1999

HUDONG, China

B&W

Apr-15

DH

$ 7.0m

Nigeria n

DD due Ma y 13

MR

HYUNDAI MIPO 2348 HYUNDAI MIPO 2349 HYUNDAI MIPO 2350 HYUNDAI MIPO 2347

52,000

2013

HYUNDAI MIPO, S. Korea HYUNDAI MIPO, S. Korea HYUNDAI MIPO, S. Korea HYUNDAI MIPO, S. Korea STX OFFSHORE, S. Korea FUKUOKA NAGASAKI, Ja pa n FUKUOKA NAGASAKI, Ja pa n

MAN-B&W

DH

$ 36.5m

MR

52,000

2013

MAN-B&W

DH

$ 36.5m Ita l ia n (Scorpio)

MR

52,000

2013

MAN-B&W

DH

$ 36.5m

MR

52,000

2013

MAN-B&W

DH

$ 36.5m

MR

STX JINHAE 1463

50,400

2012

MAN-B&W

DH

$ 34.5m

Greek (Na vi os )

PROD/ CHEM PROD/ CHEM PROD/ CHEM PROD/ CHEM

BOW CAPE

19,975

2008

MAN-B&W

Apr-13

DH en-bloc $ 46.0m Chi nes e (Si nochem)

StSt

BOW LIMA

19,971

2007

MAN-B&W

Sep-17

DH

StSt

DORIS

19,960

1984

KASADO, Ja pa n

Sul zer

Jun-15

DH

$ 3.4m

undis clos ed

epoxy

BRO CONCORD

11,980

1995

PAN-UNITED, Singa pore

Mits ubis hi Feb-15

DH

$ 5.0m

undis clos ed

epoxy

Roros
Name
EGLANTINE

Loa(m)
147.43

LM
1604

Built
1990

Yard
DALIAN, Chi na

M/E
Ma K

SS due
Jan-15

Price
rgn $ 2.0m

Buyers
Sa udi Arabi a n

Comments
ol d s a l e

MPP/General Cargo
Name
ATLANTIC SUN

Dwt
4,264

Built
1996

Yard
BODEWES', Netherla nds

M/E

SS due

Gear

Price
$ 5.5m

Buyers
Chines e

Comments

StorkNov-16 Werks poor

Intermodal Research

09/04/2013

Secondhand Sales
Bulk Carriers
Size
CAPE

Name
TAMOU

Dwt
177,243

Built
2005

Yard
NAMURA IMARI, Ja pa n IHI MARINE, Ja pa n TSUNEISHIL, Chi na SUMITOMO HI, Ja pa n YANGZHOU DAYANG, Chi na OSHIMA SHIPBUILDING, IHI - TOKYO, Ja pa n SHIN KOCHI, Ja pa n

M/E
MAN-B&W

SS due
Ma r-15

Gear

Price
xs $ 27.0m

Buyers
Greek (Di a na Shi ppi ng) London ba s ed Greeks

Comments

POST PMAX

BRILLIANT TRADER TSUNEISHI ZHOUSHAN SS-1

87,144

2006

Sul zer

Apr-16

$ 19.0m

PMAX

81,600

2013

MAN-B&W

$ 28.0m

undi s cl os ed

PMAX

SD NOVA

70,108

1996

Sul zer

Jul -16

$ 6.7m

Fa r Ea s tern

UMAX

ALICIA

63,500

2012

MAN-B&W

4 X 35t CRANES

$ 25.0m

Greek
box shaped, double hull design, reduced cargo capacity

SMAX

OSHIMA 10705

55,700

2013

Mi ts ubi s hi

$ 26.0m

Greek

HMAX STAR SEA BREEZE

48,500

2001

Sul zer

Apr-16

4 X 30t CRANES 4 X 30t CRANES

$ 11.5m

Greek

HANDY GREAT MORNING

28,710

2004

Mi ts ubi s hi

Aug-14

$ 13.0m

undi s cl os ed

Containers
Size FEEDER Name YM EARTH Teu 1,620 Built Yard M/E B&W SS due Jul-13 Gear Price
$ 7.5m

Buyers

Comments

2003 IMABARII, Japan

FEEDER

YM PEOPLE

1,620

2003 IMABARII, Japan

B&W

May-18

$ 7.5m

HK based (SITC)

FEEDER

YM SKY

1,620

2003 IMABARII, Japan MAN-B&W Jun-18 JIANGSU YANGZIJIANG, China 2 X 45t CRANES

$ 7.5m

FEEDER

DANIELA

639

2003

MaK

Mar-16

$ 3.2m

Filipino (Oceanic Container Lines)

Offshore
Type
Well Stimulation

Name
OTTO EXPLORER 3

Dwt
3,250

Built
2012

Yard
BATAMEC, Indones i a

M/E
Cummi ns

Bhp

SS due
Nov-17

Price
$ 50.0m

Buyers
Indones i a (RY Offs hore) Norwegi an (Nordi c Shi ppi ng)

Comments

Research

REFLECT RESOLUTION

917

1983

MIL, Canada

Al pha

5,440

undi s cl os ed

Intermodal Research

09/04/2013

Newbuilding Market
Indicative Newbuilding Prices (million$)
Vessel Capesize Panamax Supramax Handysize VLCC Suezmax Aframax LR1 MR LNG LGC LPG MGC LPG SGC LPG 180k 77k 58k 35k 300k 160k 115k 75k 52k 150K 80k 52k 23k Bulkers Week 14 46.0 25.3 24.3 21.0 90.0 55.3 46.5 40.0 33.0 185 69.5 61.5 40.5 Week 13 46.0 25.3 24.3 21.0 90.0 55.3 46.5 40.0 33.0 185 69.5 61.5 40.5 % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2013 2012 2011 45 25 24 21 90 55 46 40 33 181 69 61 40 47 27 26 22 96 59 51 43 35 186 72 63 44 53 33 30 25 102 64 54 45 36 187 73 64 46
The newbuilding market has seen less deals coming to light this past week, but with those ever present Cape orders sll popping up. Frontline, the usual suspect behind the majority of the Cape orders, has hit headlines again, as the Norwegian colossus was reported to be returning to China to add another four to their ever growing orderbook. The example of Mr. Fredriksen, who prefers to add new, fuel ecient tonnage to his eet has been followed by other owners recently and has resulted in a Cape orderbook which has been growing by levels that would have looked unrealisc last year. Maybe these owners are seeing something that most others aren't. Self -fullling prophecies are very common in the stock market, however in the world of shipping where its all about derived demand its a very dierent story and one that needs actual growth in global trade in order to have a happy ending. Last week, Greek Marine Management Services reportedly placed an order for three rm plus two oponal Kamsarmaxes (82,000dwt) at Jiangsu New YZJ, China for a price of $ 26.0m and delivery between 2015 and 2016.

Gas

Tankers

Tankers Newbuilding Prices (m$)

180 140
mi l lion $
VLCC Suezmax Aframax LR1 MR

Bulk Carriers Newbuilding Prices (m$)

110 90
mi l lion $
Capesize Panamax Supramax Handysize

70 50 30 10

100 60 20

Newbuilding Orders
Units 2+1 10 4 3+2 1 7 2+2+4 1 1 Type Tanker Tanker Bulker Bulker Cement Carrier Container Container Container Gas Size 158,000 dwt Yard Hyundai HI, S.Korea Delivery 10/2015 2015 Buyer Greek (Delta Tankers) undisclosed Price undisclosed $ 30.5m Comments LOI stage

52,000 dwt Hyundai Mipo, S.Korea 181,000 dwt 82,000 dwt STX Dalian, China

Norwegian (Frontline2012) undisclosed Greek (Marine Management Services) UK based (Associated Bulk Carriers) Chilean (CSAV) Chinese (SITC) S. Korean (Heung-A Shipping) Chinese (CNOOC Energy Technology) $ 26.0m $ 24.2m $ 81.4m $ 23.0m $ 21.5m undisclosed 60% debt financed

Jiangsu New YZJ, China 2015/2016 2014 late 2014 end 2014 2015 2015

20,000 dwt Shanhaiguan SY, China 9,300 teu 1,800 teu 1,103 teu 30,000 cbm Samsung H.I., S.Korea CSBC Taiwan Kyokuyo, Japan Jiangnan Changxing, China

Intermodal Research

09/04/2013

Demolion Market
Indicative Demolition Prices ($/ldt)
Markets Bangladesh India Pakistan China Bangladesh India Pakistan China Wet Week 14 430 445 440 385 410 425 420 365 Week 13 430 445 435 385 410 425 420 365 % 0.0% 0.0% 1.1% 0.0% 0.0% 0.0% 0.0% 0.0% 2013 2012 2011 427 434 428 394 405 415 405 379 440 445 444 384 414 419 416 365 523 511 504 451 498 484 477 432
The acvity in the demo market sll remains subdued compared to the rst couple of months of 2013. This past week saw Chinese breakers fairly inacve on the back of the holiday there as well as their oered prices which have even seen a widening of the gap with the Indian Sub-Connent over the past few weeks. At the same me India connues to oer very rm bids to those owners who have decided to beach their vessel, encing the majority of candidates away from a currently polically unstable Bangladesh and at the same me compeng head to head with the ever eager Pakistani breakers. The former have in fact shown great determinaon to steal some of the acon that has been taking place in India resulng in breakers there rming their bids even further. Prices this week for wet tonnage were at around 385445$/ldt and dry units received about 365-425$/ldt. The most notable price paid this week was by Indian breakers for the Burge Carrier sister ships BACO-LINER 1 (21,801 dwt-9,248ldt-blt 79) and BACOLINER 2 (21,801 dwt-9,248ldt-blt 80), which received a rm price of $ 450/ ldt.

Dry

Wet Demolition Prices

550 500 450
$/l dt
Bangladesh India Pakistan China

Dry Demolition Prices

550 500 450
$/l dt
Bangladesh India Pakistan China

400 350 300 250

400 350 300 250

Demolition Sales
Name VENUS Size 2,388 Ldt 9,482 Built 1971 Yard TIRRENO, Italy Type PAX $/ldt
$ 285/Ldt

Breakers undisclosed

Comments bss 'as is' Ashod

BACO-LINER 1

21,801

9,248

1979

THYSSEN, Germany

BARGE

$ 450/Ldt

Indian

BACO-LINER 2

21,801

9,248

1980

THYSSEN, Germany

BARGE

$ 450/Ldt

Indian

SEABOARD VICTORY 14,454

9,114

1983

TSUNEISHI, Japan

RORO

$ 324/Ldt

Indian

as-is Bahamas

SEA PRINCE

44,241

8,772

1988

SANOYAS, Japan NIPPONKAI H.I., Japan KOREA SHBLDG, S. Korea KARACHI, Pakistan

BULKER

$ 450/Ldt

Indian

KRAIRATCH DIGNITY 41,213

8,528

1984

BULKER

$ 425/Ldt

Indian

NAPA I

31,543

8,169

1981

TANKER

$ 392/Ldt

Chinese

bss dely N. China

ISLAMABAD

18,257

5,575

1983

GC

$ 433/Ldt

Pakistani

Intermodal Research

09/04/2013

Commodies & Ship Finance

Market Data
5-Apr-13 10year US Bond 1.690 S&P 500 1,553.28 Nasdaq 3,203.86 Dow Jones 14,565.25 FTSE 100 6,249.78 FTSE All-Share UK 3,292.67 CAC40 3,663.48 Xetra Dax 7,658.75 Nikkei 12,833.64 Hang Seng 21,726.90 DJ US Maritime 254.73 $/ 1.29 $/ 1.53 /$ 96.78 $ / NoK 0.17 Yuan / $ 6.20 Won / $ 1,131.32 $ INDEX 85.90 4-Apr-13 1.760 1,559.98 3,224.98 14,606.11 6,344.12 3,344.40 3,726.16 7,817.39 12,634.54 22,337.49 253.01 1.28 1.51 95.41 0.17 6.20 1,124.41 86.00 3-Apr-13 1.810 1,553.69 3,218.60 14,550.35 6,420.28 3,385.25 3,754.96 7,874.75 12,362.20 22,337.49 254.00 1.28 1.51 93.26 0.17 6.22 1,116.10 85.10 2-Apr-13 1.860 1,570.25 3,254.86 14,662.01 6,490.66 3,420.02 3,805.37 7,943.87 12,003.43 22,367.82 259.95 1.28 1.51 93.30 0.17 6.19 1,117.54 85.30 1-Apr-13 1.840 1,562.17 3,239.17 14,572.85 6,411.74 3,380.64 3,731.42 7,795.31 12,135.02 22,299.63 263.21 1.29 1.52 93.51 0.17 6.24 1,113.64 85.40 W-O-W Change % -8.6% -1.0% -1.9% -0.1% -2.5% -2.6% -1.8% -1.8% 4.0% -2.6% -4.4% 1.0% 0.5% 2.9% 1.5% -0.7% 1.8% 0.6%
130 120 oil 110 100 90 80

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

1,720 1,680 1,640 1,600 1,560 1,520 gold

Stock Exchange Data

Bunker Prices
5-Apr-13 29-Mar-13 Rotterdam Houston Singapore Rotterdam Houston Singapore 1,025.0 1,025.0 945.0 594.0 615.0 627.5 903.5 1,005.0 901.0 611.0 621.5 639.0 MDO W-O-W Change % 13.4% 2.0% 4.9% -2.8% -1.0% -1.8%

Currencies

Maritime Stock Data

Company AEGEAN MARINE PETROL NTWK BALTIC TRADING BOX SHIPS INC CAPITAL PRODUCT PARTNERS LP COSTAMARE INC DANAOS CORPORATION DIANA SHIPPING DRYSHIPS INC EAGLE BULK SHIPPING EUROSEAS LTD. EXCEL MARITIME CARRIERS FREESEAS INC GENCO SHIPPING GLOBUS MARITIME LIMITED GOLDENPORT HOLDINGS INC HELLENIC CARRIERS LIMITED NAVIOS MARITIME ACQUISITIONS NAVIOS MARITIME HOLDINGS NAVIOS MARITIME PARTNERS LP NEWLEAD HOLDINGS LTD PARAGON SHIPPING INC. SAFE BULKERS INC SEANERGY MARITIME HOLDINGS CORP STAR BULK CARRIERS CORP STEALTHGAS INC TSAKOS ENERGY NAVIGATION TOP SHIPS INC Stock Curr. 05-Apr-13 29-Mar-13 Exchange NYSE NYSE USD USD 6.21 3.57 4.58 8.16 15.61 4.04 9.69 1.84 2.84 1.05 0.83 1.22 2.64 2.59 34.35 19.20 3.36 4.34 14.00 0.52 4.14 4.88 1.99 6.25 11.42 3.91 1.31 6.71 4.09 4.65 8.28 15.89 4.20 10.66 2.04 3.52 1.15 1.16 1.32 2.88 2.49 35.00 19.15 3.44 4.57 14.48 0.63 5.44 4.96 1.99 7.12 11.99 4.35 1.34 W-O-W Change % -7.5% -12.7% -1.5% -1.4% -1.8% -3.8% -9.1% -9.8% -19.3% -8.7% -28.4% -7.6% -8.3% 4.0% -1.9% 0.3% -2.3% -5.0% -3.3% -17.5% -23.9% -1.6% 0.0% -12.2% -4.8% -10.1% -2.2%

380cst

Finance News

Strong growth ahead A new study into future trends in shipping has predicted strong growth in the sector up to 2030. Lloyds Register, Strathclyde University and defence specialist QineQ have spent two years gazing into a crystal ball for the Global Marine Trends 2030 report. It forecasts an even bigger role for China in the marime world and global seaborne trade volumes reaching as much as 24m tonnes per year, from 9m tonnes now. The study argues that China will own 25% of the world eet and that tankers will grow in number more slowly than other vessel types. Boxships above 7,600 teu will mulply three mes as fast as those below that size. The report team used three scenarios for its vision of the future, based on populaon growth, economic development and demand for resources. The rst assumed things connuing as they are now; the second envisaged cooperaon between naons amid growing concern over dwindling resources and environmental harm; while the last used a model where naons competed against each other. LR boss Richard Sadler said: What is striking is that even in the most negave of the scenarios envisaged, marime growth is strong. For anyone looking for a future in an important sector, they have to consider marime: whether for employment, investment or an understanding that without seaborne trade, oshore energy and naval power, the geopolics of tomorrow will be highly fragile and quality of life precarious. The sea and its industries are vital for our global future. (Trade Winds)

NYSE USD NASDAQ USD NYSE USD NYSE NYSE USD USD

NASDAQ USD NASDAQ USD NASDAQ USD NYSE NASDAQ NYSE NASDAQ USD USD USD USD

LONDON GBX LONDON GBX NYSE NYSE NYSE NYSE NYSE NASDAQ NASDAQ NASDAQ NYSE NASDAQ USD USD USD USD USD USD USD USD USD USD

NASDAQ USD

The informaon contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informaon to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the producon of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the informaon and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior wrien authorizaon of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuaons Department | research@intermodal.gr Analysts: Mr. George Lazaridis | g.lazaridis@intermodal.gr Ms. Eva Tzima | e.tzima@intermodal.gr