Market insight By Stelios Kollintzas Specialized Products Chartering

As we go through the end of the 2nd quarter of the year it is evident that the tanker shipping markets have been rewarding and definitely been show-ing a lot more promise compared to other sectors. Even now that new deliv-eries are hitting the water fast, the market has been able to absorb the extra tonnage either in long term contracts or in the spot market. The edible oil market has also had its stake on that by employing a handful of tonnage. In fact, lately it has been a lot livelier both out of S. America and out of SE Asia.

As far as the palm oil regional market is concerned, the 2nd quarter of the year has offered much more enquiry than the first. This is to point out that the implementation of 0% export tax on Malaysian crude palm oil in May and June have had a positive impact as buyers have been taking advantage of the tax-free cargoes out of the country boosting the shipments in both India and Europe. At the time of writing the regional market remains steady on healthy levels with a slight cooling-off. Most of second half June enquiries are already covered, while July quotes are already in the market. It remains to be seen if July will follow the same strong trend, while Indonesian export taxes are expected to be reinstated back in August. On the long-haul trade now, the youngest ECO-MR Ships are traded between 22,000 USD - 23,000 USD pd , while older tonnage can earn as much as 20,000 USD pd for a trip to MED,UKC or USA which lasts 45-120 days. The critical factor for owners profit margin though, namely the 380 bunker price -now at abt 355USD/pt - has recently shown an overall upward trend causing concerns.

In the last month we have seen a very healthy number of vessels fixed for vegetable oils out of South America and an even greater figure of soya-bean oil crop, climbing to around 500.000t. While we expected the increased production to accommodate more ships on the trade, strikes and groundings have resulted in big line-ups. As such, it seems that it will take more time for the current output to be deployed, while we expect more cargoes in the coming weeks. Given the current activity along with a firm CPP mkt in the Atlantic basket, freight rates have levelled at around 44-45 USD/pmt basis 2/2 ports, while rates for CIQ positions destined to CHINA are in the 50s for 40,000mtons of cargo. Probably though, the best earners are the Iran candi-dates, which have also been very much in the frame during last month, earn-ing USD low-mid 70s bss 30,000mtons. Going forward, rates will once again be dictated by the western CPP market and how it will move during the usu-ally slower summer months.

Lastly, Black Sea exports have seen little change in export volumes the last month, with a relatively low number of fixtures. It is evident that the differ-ence amongst the Sunflower oil and the 120 USD cheaper South American soya-bean oil has shifted importer’s demand to the most favorable origin. The current shift is expected to be greater the coming weeks as soya-bean oil prices are expected to sustain their competitive selling price. Only a few larger stems of up to 30,000mtons looking at India and Iran have drawn some attention, while smaller cargoes of 6-7,000mtons have given little excitement with charterers choosing among several loaders

It is worth noting that trade volumes are expected to further increase in the next few years, primarily driven by higher consumption of edible oils in emerging economies, in particular China and India. While palm oil exports represents approximately two thirds of global edible oil exports, vegetable oil seaborne trade volumes have been growing remarkably. The good part for the our industry is that exporters rely primarily on shipping for exporting and total trade figures are fairly translated in actual seaborne trade figures.

Chartering (Wet: Soft- / Dry: Stable + )

The Dry Bulk market slightly improved last week mostly supported by Panamaxes, while things in the Capesize segment remained quiet. The BDI closed today (09/06/2015) at 612 points, up by 2 points compared to Monday’s levels (08/06/2015) and an increase of 21 points when compared to previous Tuesday’s closing (02/06/2015). Enquiry in the WAF region mainly supported the crude carriers market last week. The BDTI Monday (08/06/2015) was at 887 points, an increase of 39 points and the BCTI at 718, an increase of 26 points compared to previous Monday’s (01/06/2015) levels.

Sale & Purchase (Wet: Firm+ / Dry: Firm+ )

SnP activity accelerated last week with crude carriers proving popular amongst buyers, while over at the Dry Bulk sector the Capesize resales at further discounted levels remain evidence of market sentiment in regards to the segment. On the tanker side, we had the en-bloc sale of the “ENERGY R” (319,012dwt-blt 03, S. Korea) and the “POWER D” (319,012dwt-blt 03, S. Korea) which were picked up by Greek owner, Navios, for a price of US$ 43.0m each. On the dry bulker side we had the sale of the “NORD LIBERTY” (58,750dwt-blt 08, Philippines), which was reported being sold for a price of $12.9m.

Newbuilding (Wet: Stable + / Dry: Stable - )

The end of spring season found the newbuilding market in the same unchanged stage of the past months, with weak activity and non-existent dry bulk ordering prevailing, while conversions and options are still making up a good part of the most recent reported deals. Prices appear to have momentarily stopped their downward movement but we reiterate our opinion that there is more room for further corrections during the summer season, where slower activity usually prevails. At the same time, the trend of converting bulker orders seems to be holding strong. Orders that were placed following the good market the sector enjoyed back in the end of 2013, continue to trouble owners behind them and it seems that a big part of those who still can, will opt for con-verting their order usually to a tanker one, while without trying to sound too pessimistic, we hope history won’t repeat itself and whatever tanker orders - original ones or conversions - are currently being placed, won’t come back to haunt their owners a couple of years down the line as it is currently happening with big bulkers. In terms of recently reported deals, Greek owner, Thenamaris, has placed an order for two firm VLCCs (300,000dwt) at Hyundai, in S. Korea, for a price of $95.5 each and deliv-ery set in 2017.

Demolition (Wet: Stable - / Dry: Soft - )

Demolition prices in the Indian subcontinent appear to have stabilized for now, following a month of significant discounts that have left the market with a lower new normal in terms of activity volume and price levels matching the year’s lows back in the beginning of March. Wheth-er the summer season will continue in the same mood is too soon to tell. Breakers in Bangladesh and Pakistan will focus on the outcome of their countries’ respective budgets, both due before the end of the week. Should rumors for increased tax on the industry are announce, this will normally affect both prices and breakers’ appetite to acquire tonnage. On the other hand things in India seem to be slightly better, and this is evident in the presence of sales involving Indian breakers, who now seem a bit encouraged by the revival of both local steel prices and the Indian Rupee. Prices this week for wet tonnage were at around 225-385 $/ldt and dry units received about 210-365 $/ldt.

Weekly Market Report

Issue: Week 23 | Tuesday 9th June 2015

© Intermodal Research 09/06/2015 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 60 58,723 62 60,888 -3.6% 30,469 21,133

280k MEG-USG 34 46,123 40 52,107 -11.5% 17,173 7,132

260k WAF-USG 75 70,311 75 71,309 -1.4% 40,541 26,890

130k MED-MED 95 52,860 100 56,805 -6.9% 30,950 17,714

130k WAF-USAC 87.5 40,797 87.5 40,570 0.6% 24,835 13,756

130k BSEA-MED 100 59,092 100 58,544 0.9% 30,950 17,714

80k MEG-EAST 132.5 44,904 132.5 44,697 0.5% 19,956 11,945

80k MED-MED 120 41,210 140 50,890 -19.0% 28,344 13,622

80k UKC-UKC 130.0 49,551 122.5 41,883 18.3% 33,573 18,604

70k CARIBS-USG 137 36,676 117.5 27,761 32.1% 25,747 16,381

75k MEG-JAPAN 125 41,622 110 33,725 23.4% 16,797 12,011

55k MEG-JAPAN 145 32,744 142.5 29,674 10.3% 14,461 12,117

37K UKC-USAC 147.5 21,943 155 22,880 -4.1% 10,689 11,048

30K MED-MED 185 29,046 160 23,035 26.1% 18,707 17,645

55K UKC-USG 130 28,075 130 28,019 0.2% 23,723 14,941

55K MED-USG 130 26,479 130 26,254 0.9% 21,089 12,642

50k CARIBS-USAC 135 23,075 145 26,073 -11.5% 25,521 15,083

Vessel Routes

Week 23 Week 22$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Jun-15 May-15 ±% 2014 2013 2012

300KT DH 80.5 80.6 -0.1% 73.6 56.2 62.9

150KT DH 59.0 58.9 0.2% 50.2 40.1 44.9

110KT DH 45.0 45.0 0.0% 38.6 29.2 31.2

75KT DH 35.5 34.4 3.2% 32.8 28.0 26.7

52KT DH 26.5 26.6 -0.4% 27.2 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

The crude carriers market, closed off the week displaying a mixed picture across the different size segments, while in those cases that rates noted further weekly declines, these were of fairly small scale. Sentiment has notably improved compared to the week prior as revived enquiry out of both the Middle East and W. Africa has supported rates, while period activi-ty also looked promising. At the same time, the fact that OPEC’s meeting last week held no surprises in regards to production levels, is adding to market expectations for the price of oil to remain within range and thus sustain healthy demand levels that will keep supporting freight rates.

Rates for VLs closed off the week noting small declines across the board, while the positive spillovers from the extraordinary come back of the WAF market fed through Middle East as well, where things were admittedly qui-eter but definitely busier compared to the week prior.

The surge in W. Africa activity last week also benefitted Suezmax tonnage in the region that enjoyed strong demand throughout the week, a demand which nonetheless failed to lift rates as just enough open positions allowed charterers to have the last word.

With the exception of the cross-Med market, rates for Aframaxes closed off the week on a positive note, while the Caribs Afra surged on the back of strong enquiry and relatively tight supply of tonnage in the region.

Sale & Purchase

In the VLCC sector, we had the en-bloc sale of the “ENERGY R” (319,012dwt-blt 03, S. Korea) and the “POWER D” (319,012dwt-blt 03, S. Korea) which were picked up by Greek owner, Navios for a price of US$ 43.0m each.

In the Aframax sector we had the sale of the “TEMPERA” (106,034dwt-blt 02, Japan), which was sold to French owner, Perenco SA for a price in the region of $32.5m.

Wet Market

Indicative Period Charters

-18 mos - 'GLORIC' 2006 298,500 dwt

- - $42,500/day - BP

-6 mos - 'ST JACOBI' 2014 50,200 dwt

- - $18,250/day -Koch

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD4 TD6 TD9

Week 23 Week 22 ±% Diff 2014 2013

300k 1yr TC 45,000 45,000 0.0% 0 28,346 20,087

300k 3yr TC 42,000 41,500 1.2% 500 30,383 23,594

150k 1yr TC 34,000 34,000 0.0% 0 22,942 16,264

150k 3yr TC 32,500 32,500 0.0% 0 24,613 18,296

110k 1yr TC 26,500 26,000 1.9% 500 17,769 13,534

110k 3yr TC 24,000 24,000 0.0% 0 19,229 15,248

75k 1yr TC 21,500 21,500 0.0% 0 16,135 15,221

75k 3yr TC 19,250 19,250 0.0% 0 16,666 15,729

52k 1yr TC 17,250 17,250 0.0% 0 14,889 14,591

52k 3yr TC 16,000 16,000 0.0% 0 15,604 15,263

36k 1yr TC 15,500 15,500 0.0% 0 14,024 13,298

36k 3yr TC 15,000 14,750 1.7% 250 14,878 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

60

90

120

150

180

210

240

270

WS

po

ints

CLEAN - WS RATESTC1 TC2 TC5 TC6

© Intermodal Research 09/06/2015 3

0500

1,0001,5002,0002,5003,0003,5004,0004,500

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000$

/da

y

Average T/C Rates

AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

Chartering

The Dry Bulk market closed off last slightly up last week, with the BDI re-

gaining the 600 points level, while the driving force behind the increase was

the Panamax sector, which following some very challenging weeks during

May, finally managed to take a small breather. Expectations in regards to

the summer season vary across the market. The more optimistic are focus-

ing on Chinese iron ore inventories and the fact that traditionally the re-

stocking that takes place following a decrease in port inventories boosts

Capesize rates and lifts the entire market. Although this is true, the fact that

Chinese demand for steel has been faltering is what is key here, while let’s

not forget that last year, which was an exceptional year in terms of Chinese

iron ore imports, rates disappointed vastly, which bring us back to the ton-

nage oversupply issue that still seems to be weighing heavily on the market.

The Capesize market was quiet last week, especially in the Atlantic, while

talk of iron ore majors being active in the Pacific emerged just before the

market slid into the weekend.

The Atlantic Panamax kept improving last week as ECSA remained a steady

provider of fresh enquiry amidst balanced supply of tonnage in the region.

The Pacific market kept moving sideways at the same time, while period

enquiry saw some steady numbers.

The Atlantic Handysize/ Handymax/ Supramax market improved significant-

ly last week with some very good numbers being reported positionally. At

the same time the Black Sea/Med witnessed persisting lack of enquiry,

while steady numbers were being observed in the Far East.

Sale & Purchase

In the Supramax sector, we had the sale of the “NORD LIBERTY” (58,750dwt-blt 08, Philippines), which was reported being sold for a price of $12.9m.

In the Handysize sector we had the sale of the “ORIENTE CHALLENGER” (24,600dwt-blt 01, Japan), which was sold to Chinese buyers for a price in the region of $4.5m.

Jun-15 May-15 ±% 2014 2013 2012

180k 32.0 33.2 -3.6% 47.3 35.8 34.6

76K 17.0 16.9 0.6% 24.5 21.3 22.7

56k 15.0 15.5 -3.2% 24.7 21.5 23.0

30K 13.5 13.5 0.0% 19.5 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 5 to 8 mos - 'YM VIRTUE ' 2003 76,610dwt

- Qingdao 04/07 June - $ 6,100/day -Safe Arrival

- 4 to 7 mos - 'ZOE' 2013 74,702 dwt

- S. Africa 10/15 Jun - $ 6,950/day -Noble

Dry Market

Index $/day Index $/day Index Index

BDI 610 589 21 1,097 1,205

BCI 865 $5,615 810 $5,517 55 1.8% 1,943 2,106

BPI 596 $4,764 524 $4,191 72 13.7% 960 1,186

BSI 656 $6,857 647 $6,768 9 1.3% 937 983

BHSI 332 $4,889 331 $4,869 1 0.4% 522 562

29/05/2015

Baltic IndicesWeek 23

05/06/2015Week 22

Point

Diff

2014 2013$/day

±%

170K 6mnt TC 8,000 8,000 0.0% 0 22,020 17,625

170K 1yr TC 8,250 8,250 0.0% 0 21,921 15,959

170K 3yr TC 9,750 9,750 0.0% 0 21,097 16,599

76K 6mnt TC 6,750 6,250 8.0% 500 12,300 12,224

76K 1yr TC 6,500 6,250 4.0% 250 12,259 10,300

76K 3yr TC 7,750 7,750 0.0% 0 13,244 10,317

55K 6mnt TC 7,500 7,500 0.0% 0 12,008 11,565

55K 1yr TC 7,500 7,250 3.4% 250 11,589 10,234

55K 3yr TC 7,750 7,750 0.0% 0 11,585 10,482

30K 6mnt TC 6,000 6,000 0.0% 0 9,113 8,244

30K 1yr TC 6,250 6,250 0.0% 0 9,226 8,309

30K 3yr TC 6,750 6,750 0.0% 0 9,541 8,926Han

dys

ize

Period

2013

Pan

amax

Sup

ram

ax

Week

23

Week

22

Cap

esi

ze

2014$/day ±% Diff

© Intermodal Research 09/06/2015 4

Secondhand Sales

Name Dwt Built Yard M/E SS due Gear Price Buyers Comments

AKVILE 5,820 1997BALTIJOS,

Li thuaniaMAN Apr-15

2 X 36t

CRANES$ 1.7m

AUDRE 5,820 1997BALTIJOS,

Li thuaniaMAN Sep-17

2 X 36t

CRANES$ 1.7m

GANDA 2,637 2003 AYKIN, Turkey A.B.C. Sep-18 $ 1.3m undisclosed

Ukrainian

MPP/General Cargo

Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments

VLCC ENERGY R 319,012 2003HYUNDAI SAMHO

HEAVY IN, S. KoreaMAN-B&W Feb-18 DH $ 43.0m

VLCC POWER D 319,012 2003HYUNDAI SAMHO

HEAVY IN, S. KoreaB&W Jan-18 DH $ 43.0m

SUEZ BEIJING 157,406 1998DAEWOO HEAVY

INDUSTRIE, S. KoreaB&W Jul-13 DH $ 22.5m

Indian

(Pratibha)

SUEZ PRIDE 149,686 1993MITSUI CHIBA

ICHIHARA, JapanB&W May-18 DH $ 12.0m Russ ian

AFRA STI LOMBARD 114,900 2016

DAEWOO-

MANGALIA,

Romania

MAN-B&W DH $ 56.5m

AFRA STI WHITEHALL 114,900 2015

DAEWOO-

MANGALIA,

Romania

MAN-B&W DH $ 56.5m

AFRA TEMPERA 106,034 2002SUMITOMO HI

YOKOSUKA, JapanWarts i la Aug-17 DH $ 32.5m

French

(Perenco SA)

Shuttle tanker, Ice

class 1A super

LR1 KASPAR SCHULTE 72,718 2004SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W Feb-19 DH $ 21.0m Greek

MR OBSIDIAN 50,300 2015SPP SHIPBUILDING -

SAC, S. KoreaMAN-B&W DH $ 37.2m

MRSPP SACHEON

S115850,300 2015

SPP SHIPBUILDING -

SAC, S. KoreaMAN-B&W DH $ 37.2m

MR PALENQUE II 44,646 1992DALIAN SHIPYARD

CO LTD, ChinaB&W Jun-17 DH rg $ 3.0m Nigerian

MRGHETTY

BOTTIGLIERI40,165 2002

HYUNDAI MIPO

DOCKYARD, S. KoreaB&W Jun-17 DH $ 14.0m Greeks

SMALL STAR QUEST 5,618 2009WEIHAI DONGHAI

SHIPYAR, ChinaDaihatsu Jun-19 DH $ 4.1m

Singaporean

(United

Mari time)

Greek (Navios )

Greek

S.Korean

(Sinokor)

Tankers

© Intermodal Research 09/06/2015 5

Secondhand Sales

Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments

CAPE SBI CORONA 180,000 2016

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W $ 41.0m undisclosed

CAPE SBI DIADEMA 180,000 2016

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W $ 41.0m undisclosed

CAPE SBI ESTUPENDO 180,000 2016

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W $ 41.0m undisclosed

SMAX NORD LIBERTY 58,750 2008TSUNEISHI HEAVY

CEBU, Phi l ippinesMAN-B&W Nov-18

4 X 30t

CRANES$ 12.9m undisclosed

HANDY SHIMANAMI 613 37,745 2015SHIMANAMI

ZOSEN KK, MAN-B&W

4 X 30,5t

CRANES$ 21.0m

Taiwanese

(Wisdom Marine)

HANDY IASOS 28,358 1987

OSHIMA

SHIPBUILDING,

Japan

Mitsubishi Aug-174 X 25t

CRANES$ 2.1m undisclosed

HANDYORIENTE

CHALLENGER24,600 2001

HAKODATE DOCK -

HAKODA, JapanMitsubishi Jun-16

3 X 20t

CRANES$ 4.5m Chinese

HANDY VOGE EVA 23,407 1997TSUNEISHI HEAVY

CEBU, Phi l ippinesB&W May-17

4 X 30t

CRANES$ 3.1m Turkish

Bulk Carriers

Size Name Teu Built Yard M/E SS due Gear Price Buyers Comments

FEEDER VISION 1,118 2006 JINLING, China MAN-B&W Nov-162 X 40t

CRANES$ 5.1m undisclosed

FEEDER OTTERHOUND 1,076 2003 JINLING, China MAN Feb-182 X 45t

CRANES$ 4.8m Swiss (MSC)

Containers

Type Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments

LPG ODIN 29,216 2005

DAEWOO

SHIPBUILDING &,

S. Korea

MAN-B&W 38,501 $ 40.0mNorwegian

(Solvang)

Gas/LPG/LNG

© Intermodal Research 09/06/2015 6

Newbuilding activity made a rather impressive summer debut, with an in-creased number of orders being reported last week, while the absence of recently inked contracts involving dry bulkers remained the distinct charac-teristic of the market. Despite this recent spark in newbuilding activity, we reiterate our opinion that things will remain quiet during the summer season and probably afterwards as well. In terms of total activity across both tankers and bulkers during the first five months of the year, this is below the number recorded during the same period in 2014. Although in the case of bulkers this doesn't come as a surprise at all, it is interesting to note that even in regards to tankers - the star sector of the year - the level of enthusiasm surrounding new orders isn't as excessive as one would think, while the conversions from previous dry bulk orders into tanker ones have made up for a good-sized part of activity so far.

In terms of recently reported deals, Greek owner, Thenamaris, has placed an order for two firm VLCCs (300,000dwt) at Hyundai, in S. Korea, for a price of $95.5 each and delivery set in 2017.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

23

Week

22±% 2014 2013 2012

Capesize 180k 50.0 50.0 0.0% 55.8 49 47

Kamsarmax 82k 27.5 27.5 0.0% 30.4 27 28

Panamax 77k 26.5 26.5 0.0% 29.2 26 27

Ultramax 63k 25.5 25.5 0.0% 27 25 25

Handysize 38k 21.5 21.5 0.0% 23 21 22

VLCC 300k 96.0 96.0 0.0% 98.6 91 96

Suezmax 160k 64.5 64.5 0.0% 65 56 58

Aframax 115k 53.0 53.0 0.0% 54 48 50

LR1 75k 46.0 46.0 0.0% 45.9 41 42

MR 50k 36.5 36.5 0.0% 36.9 34 34

190.0 190.0 0.0% 186.0 185 186

77.0 77.0 0.0% 78.4 71 71

68.0 68.0 0.0% 66.9 63 62

46.0 46.0 0.0% 44.3 41 44

Vessel

Indicative Newbuilding Prices (million$)

Bu

lke

rsTa

nke

rs

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

10

30

50

70

90

110

mil

lion

$Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2 Tanker 300,000 dwt Hyundai, S. Korea 2017 Greek (Thenamaris) $ 95.5m

3+1 Tanker 154,000 dwt Samsung, S. Korea 2017-2018 Canadian (Teekay Offshore) $ 121.5mDP2 shuttle tanker, 15yr

EC Canada T/C

4+4 Tanker 115,000 dwt Daehan, S. Korea 2016-2017Singaporean (Jell icoe

Tankers)$ 55.0m Ice 1C, T/C to Shell

2 Tanker 75,000 dwtHyundai Mipo, S.

Korea2017-2018 Italian (D'Amico) $ 44.0m

LR1, addition to the

April order

1+1 Gas 170,000 cbm Hyundai, S. Korea 2018 Norwegian (Hoegh LNG) undisclosedLNG FSRU, total 8 on

order

2 Gas 84,000 cbm DSME, S. Korea 2017 Chinese (China Peace) $ 80.0m LPG

2 Gas 53,000 cbmShangai Jiangnan,

China2016-2017 Denmark (Maersk) undisclosed LPG

2 Container 1,900 teu Hanjin, S. Korea - Belgian (Delphis) $ 34.0m options, ice class

1 Container 1,800 teu Daesun, China - S. Korean (Dongjin) undisclosed bangokmax

2 PCTC 7,400 ceu Hyundai, S. Korea 2017 S. Korean (EUKOR) undisclosed

Newbuilding Orders Size

© Intermodal Research 09/06/2015 7

With prices remaining under pressure and activity still below the levels the market has been witnessing throughout the biggest part of the year so far, sentiment in the demolition market remains soft, while the budget an-nouncements out of both Pakistan and Bangladesh left the market with a bitter sweet taste last week. From one side the introduction of increased duties in regards to the ship-recycling industry in Pakistan is expected to push demo prices further down in the country, while on the other hand higher duties imposed on steel imports in Bangladesh will ease pressures on local steel prices from Chinese exports to the country. At the same time India seems to be testing the waters with a few sales being reported to local play-ers, who given their capacity and lack of action in the previous months are theoretically well positioned to stock up prior the monsoon season. Whether they will chose to do so is another question, while the recent recovery of steel prices in the country is more than likely to push towards this direction. Prices this week for wet tonnage were at around 225-385 $/ldt and dry units received about 210-365 $/ldt.

The highest price amongst recently reported deals, was that paid by Indian breakers for the chemical tanker “CASTILLO DE PLASENCIA” (12,219dwt-4,330ldt-blt 87), which received $600/ldt as it included 722 tons of stainless steel.

Demolition Market

Week

23

Week

22±% 2014 2013 2012

Bangladesh 380 380 0.0% 469 422 441

India 380 380 0.0% 478 426 445

Pakistan 385 385 0.0% 471 423 444

China 225 225 0.0% 313 365 384

Bangladesh 365 370 -1.4% 451 402 415

India 365 370 -1.4% 459 405 419

Pakistan 365 365 0.0% 449 401 416

China 210 210 0.0% 297 350 365

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

200

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

200

250

300

350

400

450

500

550

$/ld

t

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

DB 101 93,400 35,000 1978 IHI - KURE, PLATFOR

M/Jack

Up

$ 285/Ldt undisclosed

ZIM ASIA 45,850 16,900 1996HDW AG - KIEL -

GEU, GermanyCONT $ 400/Ldt undisclosed Indian subcontinent

AMAN TRADER 48,320 10,166 1990BRODOSPLIT,

YugoslaviaBULKER $ 368/Ldt Bangladeshi

CASTILLO DE

PLASENCIA12,219 4,330 1987

MITSUBISHI

SHIMONOSEKI,

Japan

TANKER $ 600/Ldt Indian incl. 722 tons StSt

Demolition Sales

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without mak-ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production 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 information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr Ms. Eva Tzima | e.tzima@intermodal.gr

Mr. Vassilis Logothetis | v.logothetis@intermodal.gr

Finance News

“Gener8 adds bank backing

VLCC giant Gener8 Maritime has added a number of banks to its initial public offering effort.

Peter Georgiopoulos-fronted Gener8, which is look-ing to take a 46 strong VLCC fleet to Wall Street, launched IPO plans last month with Citigroup and UBS.

An updated filing has revealed Jefferies and Evercore have now been added as joint book running manag-ers.

DNB Markets and SEB are also on board as senior co-managers while Pareto Securities and Axia have been brought in as co-managers.

Gener8, formed from the merger of General Mari-time (Genmar) and Navig8 Crude Tankers, would be a fifth public company for Georgiopoulos.

As TradeWinds reported when the IPO first emerged, Georgiopoulos has overseen the purchase of over 200 vessels at an aggregate of over $7.5bn during his career.

Navig8, led by Nikolas Busch and Gary Brocklesby, will manage the VLCCs and suezmaxes.” (Andy Pierce, Trade Winds)

Commodities & Ship Finance

5-Jun-15 4-Jun-15 3-Jun-15 2-Jun-15 1-Jun-15W-O-W

Change %

10year US Bond 2.410 2.310 2.380 2.270 2.190 13.7%

S&P 500 2,092.83 2,095.84 2,114.07 2,109.60 2,111.73 -0.7%

Nasdaq 5,068.46 5,059.12 5,099.23 5,076.52 5,082.93 0.0%

Dow Jones 17,849.46 17,905.58 18,076.27 18,011.94 18,040.37 -0.9%

FTSE 100 6,804.60 6,859.24 6,950.46 6,928.27 6,953.58 -2.6%

FTSE All-Share UK 3,711.10 3,740.39 3,786.84 3,775.52 3,786.37 -2.3%

CAC40 4,920.74 4,987.13 5,034.17 5,004.46 5,025.30 -1.7%

Xetra Dax 11,197.15 11,340.60 11,419.62 11,328.80 11,436.05 -2.1%

Nikkei 20,460.90 20,488.19 20,473.51 20,543.19 20,569.87 -0.5%

Hang Seng 27,260.16 27,551.89 27,657.47 27,466.72 27,597.16 -0.6%

DJ US Maritime 255.87 252.95 254.95 256.56 253.28 1.6%

$ / € 1.11 1.12 1.13 1.11 1.09 1.9%

$ / ₤ 1.53 1.54 1.53 1.53 1.52 -0.1%

¥ / $ 125.61 124.39 124.32 124.07 124.87 1.2%

$ / NoK 0.13 0.13 0.13 0.13 0.13 -2.3%

Yuan / $ 6.20 6.21 6.20 6.20 6.20 0.0%

Won / $ 1,124.85 1,113.85 1,107.65 1,108.70 1,115.85 1.1%

$ INDEX 87.51 86.78 86.49 86.69 87.79 0.3%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,100

1,150

1,200

1,250

1,300

1,350

40

45

50

55

60

65

70

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

5-Jun-15 29-May-15W-O-W

Change %

Rotterdam 548.0 562.5 -2.6%

Houston 634.5 636.0 -0.2%

Singapore 551.0 560.0 -1.6%

Rotterdam 328.5 323.5 1.5%

Houston 339.5 335.6 1.2%

Singapore 367.5 374.5 -1.9%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 05-Jun-15 29-May-15

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 15.06 14.22 5.9%

BALTIC TRADING NYSE USD 1.49 1.52 -2.0%

BOX SHIPS INC NYSE USD 1.01 0.92 9.8%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 8.69 9.11 -4.6%

COSTAMARE INC NYSE USD 20.06 19.60 2.3%

DANAOS CORPORATION NYSE USD 6.49 6.52 -0.5%

DIANA SHIPPING NYSE USD 6.46 6.42 0.6%

DRYSHIPS INC NASDAQ USD 0.72 0.73 -1.4%

EAGLE BULK SHIPPING NASDAQ USD 8.88 9.05 -1.9%

EUROSEAS LTD. NASDAQ USD 0.74 0.74 0.0%

FREESEAS INC NASDAQ USD 0.05 0.05 0.0%

GLOBUS MARITIME LIMITED NASDAQ USD 1.35 1.40 -3.6%

GOLDENPORT HOLDINGS INC LONDON GBX 115.50 115.76 -0.2%

HELLENIC CARRIERS LIMITED LONDON GBX 20.70 20.00 3.5%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.46 3.57 -3.1%

NAVIOS MARITIME HOLDINGS NYSE USD 3.62 3.42 5.8%

NAVIOS MARITIME PARTNERS LP NYSE USD 10.95 10.88 0.6%

PARAGON SHIPPING INC. NYSE USD 0.69 0.73 -5.5%

SAFE BULKERS INC NYSE USD 3.47 3.33 4.2%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 0.65 0.67 -3.0%

STAR BULK CARRIERS CORP NASDAQ USD 3.14 3.04 3.3%

STEALTHGAS INC NASDAQ USD 6.85 6.84 0.1%

TSAKOS ENERGY NAVIGATION NYSE USD 9.74 9.56 1.9%

TOP SHIPS INC NASDAQ USD 1.04 1.07 -2.8%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

09/06/2015

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