Tanker Market

Chinese Delegation

22nd JECKU TOP EXECUTIVES MEETING

Okinawa, Japan
13-15 November, 2013

CHINA SHIPBUILDING INDUSTRY CORPORATION

 Contents

1. Global Oil Demand

2. Seaborne Crude Imports

3. Seaborne Product Imports

4. Tanker Shipping Market

5. Tanker Delivery Trends

6. Tanker Newbuilding Contracts

7. Tanker Orderbook

8.Tanker Demolition

9. Tanker Shipbuilding Price Trend

10. Oil Market Outlook

11. Tanker Shipbuiding Market Outlook

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1. Global Oil Demand

Source: Clarkson, IEA

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2. Seaborne Crude Imports

Million bpd

Source: Clarkson, Oil & Tanker Trades Outlook

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3. Seaborne Product Imports

Million bpd

Source: Clarkson, Oil & Tanker Trades Outlook

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4. Tanker Shipping Market

Source: Clarkson

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5. Tanker Delivery Trends

Million dwt

Source: Clarkson, World Shipyard Monitor

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6. Tanker Newbuilding Contracts

Million dwt

Source: Clarkson, World Shipyard Monitor

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 7. Tanker Orderbook

200
184,8
Million dwt
180 166,4
160 147 142,4
140 129,9
120

100 85,8 85,7 88,5

80 73,6
57,9
60 51,5

40

20

0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Okt.13

Source: Clarkson

During the first nine months of 2013, the orderbook of tankers has declined 11% in terms of dwt.

The pace of decline of tankers on order slowed down.

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8. Tanker Demolition

Million dwt

Source: Clarkson, World Shipyard Monitor

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 9. Tanker Shipbuilding Price Trend

Units: USD million

Jun-13 Jun-12 y-o-y

VLCC 89.50 96.00 -6.8%

Suezmax 55.75 58.50 -4.7%

Aframax 47.50 50.00 -5.0%

Panamax 41.00 42.50 -3.5%

Handysize 33.50 34.50 -2.9%

As of 1st July 2013, newbuilding price of VLCC stood at 89.5 m USD, down 6.8% yoy.

Suezmax, Aframax, Panamax and Handysize tanker stood at 55.75m USD, 47.5m USD, 41m
USD, 33.5m USD respectively.

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10. Oil Market Outlook

Source: IEA

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 11. Tanker Shipbuilding Market Outlook

1. A prolonged slowdown in many countries in Europe and increasing domestic

production in US (and its policy of energy independence) may lower the
growth in oil tanker demand.

2.
As the oversupply of the tanker fleet is expected to go down going forward ,
tanker shipbuilding market is on the path of slow recovery.

Seaborne transport of vegoil such as palm oil is increasing, pushing up

3.
transport demand for MR-type product carriers (PC) and chemical tankers.
Demand for chemical tankers and MR-type PCs compliant with IMO Type II/III
capable of transporting vegoil will increase, thus creating factors to push up the
market.

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Thank you for your attention!

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