Weekly Market Report

Issue: Week 01 | Tuesday 08th January 2013

Brokers insight
by Panos Tsilingiris In the dry bulk sector, with asset prices decreasing since June 2010 and with new lows recurring almost every single month, it is geng increasingly aracve to buy. But is it? Is there any foreseeable oor for asset prices? Let's take the example of Panamax bulkers. Currently, the indicave value of a 5-year old Panamax is high $ 17s m. Such levels were last seen 10 years ago in January 2003. At rst sight, this looks like a strong hint to buy, but is it? Back then, the respecve one year TC rate was at mid-11,000 $/day. By contrast today's 1-year TC rates for a Panamax struggles to stay in the 7,000s $/day range, while operang expenses are substanally higher. If the present depressed chartering market persists, which is implied by the bleak FFAs outlook and the recent 2-year period TC which is in the region of 6,500-7,500 $/day, then prices could go further south. The recent 10-year history does not suce; we need to go further back. In the post 90's era, three market troughs stand out: 1Q1999, 4Q2001, and today. Both previous lows in 5-year old Panamax asset values were $ 13.514m. Interesngly enough, in inaon adjusted terms (assuming inaon of 2.5% p.a.), today's shy $ 18m price is again in the region of $ 13.5-14m in late 2001 dollar terms. However, during the most recent of the previous lows, that is, during 4Q2001, the respecve 1-year TC rates were rgn 7,000 $/day, which is similar to today's levels. Therefore in nominal terms, this fuels the concern that there may sll be ample room for further correcon in today's asset prices. Inevitably, I resort to going further back to 1976, as some of my seasoned ship-owning clients suggest. There are both similaries and disparies between the dry bulk shipping recession of the mid/late 1970s, the mid-1980s depression (which were separated by a short-lived dry freight expansion unl March 1981), and the on-going one. However, we can consider the on-going one to be a so far purely oversupply-driven one, while during the 1980s there were also weak shipping demand issues to deal with. In the 1980s, the trough occurred in March 1986 when a 5-yo Panamax could be purchased for approximately $ 5.5m when freight rates were in the $ 4,000s. In today's terms (assuming a conservave 3.5% annual inaon rate), this global nominal minimum corresponds to a gure which is (again!) in the 13.5-14musd range. By 1989 respecve asset prices had rebounded back to above $ 20m, making this as one of the most protable asset plays. 15 years later this record would be shaered by buying in the low prices of 2002 and selling in 2007 or 2008 at the peak of the super-cycle. Both the 1980s crisis and the on-going one share some common incenves for placing newbuilding orders: record low newbuilding prices, yards overcapacity, and promising fuel-ecient designs (oil had also peaked in 1980). In the 1980s, any hope for market rebound was killed by the excessive ordering during of 1982-1984 which was inially triggered by Sanko Steamship (which ironically led again for bankruptcy in 2012) and subsequently followed by Norwegian and Greek owners. A clear lesson to be learnt from the 1980s crisis is that counter-cyclical massive ordering shouldnt occur again. Currently 5-year old Panamax bulkers stand at about 20-25% higher than the $ 13.5-14m range, which is the nominal low discussed above. Is it worth taking the upside risk (esp. for modern tonnage) vs. trying to idenfy the exact boom? Till next me! Wishing you a healthy, happy, and prosperous New Year! Chartering (Wet: Soer- / Dry: Stable+ ) The Dry Bulk market has had an indierent start to the New Year hovering around 700 points. Both the Atlanc and the Pacic basin oered slightly higher rates for Capes, though some small upward correcon was naturally expected aer the connuous downward trend witnessed during December. The BDI closed today (08/01/2013) at 734 points, up by 22 points compared to Mondays levels (07/01/2013) and an increase of 36 points compared to the previous Wednesdays levels (02/01/2013). A very negave week overall for the tanker market and a poor start for the New Year. The BDTI Monday (07/01/2013), was at 717, 23 points down and the BCTI at 763, a decrease of 25 points compared to the previous Wednesdays levels (02/01/2013). Sale & Purchase (Wet: Stable- / Dry: Stable- ) Taking into account that we were in a seasonally slow week as much of the world was celebrang the new year, there was fair amount of acvity and interest circulang in the market. Minimal acvity connues, with the excepon being that of resale units were we witnessed a urry of new deals. On the Tankers side, we had the en-bloc sale of the Brish Hawthorn (106,500dwt-blt 03 Japan) and the Brish Laurel (106,500dwt-blt 02 Japan) , which were reported sold to Greek buyers at an en-bloc price of around $ 15.5m. While on the dry bulker side, we had the sale of the Crown Star (76,662dwt-blt 02 Japan), which reportedly went for a price of $ 12.1m to U.S. based buyers Quintana. Newbuilding (Wet: Stable- / Dry: Stable- ) Although it has been a very dicult year for the dry bulk sector, and some market players are sll looking at scenarios in which the long awaited recovery gets postponed for a few years, it looks like the connuous iron ore price strengthening has lied the spirits of some leading shipowners. Greek based Thenamaris and Norways Frontline were reported to have placed signicant orders for Capesize vessels of fuel ecient design. Both orders were placed in Chinese yards, providing both shipbuilders with much needed newbuilding contracts aer what has been an extremely painful year for this sector. In terms of reported deals this week, Frontline2012, placed an order of 4 rm plus 2 oponal Capes at Shanghai Waigaoqiao for $45m each and in addion to that, they have also contracted STX Dalian to build a further 4 rm plus 4 oponal Capes. This brings the total order, if opons are exercised, to 14 Capes, which is an overwhelming number for sure, especially in the mes we are living, with overcapacity causing the majority of Cape owners bleeding cash. Demolion (Wet: Firm+ / Dry: Firm+ ) The slowdown witnessed just before the end of the year proved to be only seasonal as it is evident that demo breakers have returned with a big appete and fresh budgets in the rst week of 2013. The majority of the market pundits had already been waing for 2013 to be another strong demo year and if we judge from how it kicked o it looks like they are not falling short from expectaons. Indian Sub-Connent breakers appear to be fairly strong with increased price oerings close to 430$/ldt levels and somemes well beyond these. Aracng more ship owners to beach their vessels is the key to rebalancing excess supply but at the same me it will be interesng to see up unl which point in the year the demo market will hold its ground. Prices for wet tonnages were at around 390-425$/ldt and dry units were seeing levels of about 375-400$/ldt.

Wet Market
Spot Rates
Week 1 Vessel Routes WS $/day points 44 25 48 68 65 73 83 80 90 85 98 118 160 173 115 115 105 27,803 -1,457 33,889 22,490 17,113 20,447 12,798 13,899 17,943 8,567 17,353 17,353 18,856 27,532 18,439 16,677 10,986 Week 51 WS points 50 30 53 90 78 70 90 100 103 88 110 145 158 180 135 135 115 $/day 30,844 3,785 34,934 39,959 23,580 19,441 13,031 22,649 28,825 7,164 19,715 23,304 15,654 27,842 22,764 20,893 11,735 2012 2011 $/day 18,217 2,504 25,714 25,125 13,373 14,815 12,726 13,577 18,604 8,240 10,467 7,768 11,022 18,458 11,266 9,676 10,700
WS poi nts
TC2 TC4 TC6 TC1

Indicative Period Charters

%
-12% -17% -9% -25% -16% 4% -8% -20% -12% -3% -11% -19% 2% -4% -15% -15% -9% $/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

- 12 mos - 6+6 mos -

- 'Freja Pegasus' - 'Ivor Point'

2010

51,000dwt - $ 13,250/day - Repsol

VLCC

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

2007 51,000dwt - $ 15,000/day - Litasco

Suezmax

TD3

TD5

TD8

TD4

160 140
WS points

DIRTY - WS RATES

120 100 80 60 40 20

Clean Dirty

Aframax

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

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 1 21,500 27,000 17,500 22,000 14,500 16,000 14,500 15,250 14,000 14,750 13,000 13,750 Week 51 21,500 27,000 17,500 22,000 14,500 16,000 15,000 15,500 14,000 14,750 13,000 13,750 % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -3.3% -1.6% 0.0% 0.0% 0.0% 0.0% Diff 0 0 0 0 0 0 -500 -250 0 0 0 0 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 2011 25,197 31,681 19,837 23,830 15,707 18,335 14,995 16,263 13,918 14,738 12,471 13,412

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 Jan-13 Dec-12 57.0 40.0 27.5 25.0 25.0 57.0 40.0 27.6 25.0 25.0 % 0.0% 0.0% -0.5% 0.0% 0.0% 2012 62.9 44.9 31.2 26.7 24.6 2011 77.6 54.4 39.1 35.2 28.4 2010 87.2 62.6 44.7 38.8 26.5

Chartering With demand slightly waning during the rst couple of days in the year and tonnage having already pilled on from the Christmas holidays, the VLCC market was in far another free-fall in freight levels. A signicant poron of the mid-December rally was easily snapped away and we are nding ourselves back to stale levels, especially for Westbound voyages from the MEG. This may be temporary and things are likely to heat up over the next couple of days, however with new deliveries starng to pile on once again this year it not looking like an very bright future. Despite healthy acvity levels in the Suezmax market, it has yet to translate into improvement in freight rates, which were sll holding onto their Christmas blues. This was present all in both the Med and WAF regions, however with both areas now cleared from excess tonnage there is high potenal for another rally over the next couple of days. It was a dierent case for The Afras were the slower acvity in the North Sea/Balc and Caribs regions due to the Christmas holidays was enough to swell up tonnage lists and cause senment to drop drascally. The Balck Sea/Med region was not spared either although it looks as though some acvity had been revived there on Friday.

Sale & Purchase In the Aframax sector segment this week, we had the en-bloc sale of the Brish Hawthorn (106,500dwt-blt 03 Japan) and the Brish Laurel (106,500dwt-blt 02 Japan) , which were reported sold to Greek buyers at an en-bloc price of around $ 15.5m. Also noteworthy was the en-bloc sale of the two chemical tankers, Ellen Knutsen (17,071dwt-blt 91 Spain) and sister Synnove Knutsen (17,071dwt-blt 92 Spain) , which were picked up by Middle Eastern buyers for a price of $ 8.9m each.

Intermodal Research

08/01/2013

Dry Market
Baltic Indices
Week 1 04/01/2013 Index $/day
BDI BCI BPI BSI BHSI

Indicative Period Charters

% Point Diff 6 57 -40 7 0 2012 Index 921 1,571 965 906 518 2011 Index 1,549 2,237 1,749 1,377 718
4,000
Index

Week 51 21/12/2012 Index $/day 700 1,228 710 732 446 $4,814 $5,622 $7,654 $6,587

- 5/8 mos - 'Lin Jie' - dely Kawasaki ppt

2003 177,359dwt - $ 8,500/day - Swissmarine

706 1,285 670 739 446 $5,249 $5,300 $7,728 $6,619

0.9% 4.6% -5.6% 1.0% 0.0%

- 18/24 mos - 'Zina' 2012 33,800dwt - dely aps Eregli mid Jan - $ 3,000/day - Oldendorff

Baltic Indices
5,000
BCI BPI BSI BHSI BDI

3,000 2,000 1,000 0

Period
$/day Capesize Week 1 170K 6mnt TC 12,500 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 12,000 14,000 8,625 8,250 9,250 9,500 9,250 10,250 8,000 8,000 8,750 7,250 7,750 9,000 Week 51 12,000 12,000 14,000 8,850 8,375 9,250 9,750 9,250 10,250 8,250 8,000 8,750 7,500 7,750 9,000 % 4% 0% 0% -3% -1% 0% -3% 0% 0% -3% 0% 0% -3% 0% 0% Diff 500 0 0 -225 -125 0 -250 0 0 -250 0 0 -250 0 0 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 2011 18,474 17,138 17,599 17,238 14,863 14,500 15,587 14,308 14,046 13,416 12,450 12,403 11,712 11,787 12,044

Handysize Handymax Supramax Panamax

Average T/C Rates

50,000 40,000
$/day
AV R 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

30,000 20,000 10,000 0

Indicative Market Values ($ Million) - Bulk Carriers

Chartering
Vessel 5 yrs old Capesize Panamax Supramax Handysize 180k 76K 56k 30K Jan-13 Dec-12 32.5 18.0 19.5 15.5 32.5 18.0 19.8 15.8 % 0.0% 0.0% -1.3% -1.6% 2012 34.6 22.7 23.0 18.2 2011 43.5 31.3 28.1 23.5 2010 57.4 39.0 32.2 26.2

It was a posive start to the year for Capes as the revived demand for iron ore helped create some opmism and boost rates up once again. Although this most recent posive jump was fairly minor and we are sll nding ourselves in sub-par freight levels, there is much promise in the horizon as the further commitment by the Chinese government to push on its smulus plan starts to ramp up demand for iron ore and help cover the excess supply that has accumulated. There seemed to be a sense of panic amongst Panamax owners, who in their haste to x their vessels pushed the market further down while leaving a bier taste for the start of the year. This may well be a premonion of what is yet to come in 2013, as the vast orderbook is set to ood the market and cause extra woes amongst market players. The Atlanc was holding slightly more stable, while the Pacic lost ground and quickly at that. With the Chinese New Year slowly approaching this will likely tend to be the main theme of the market for now. Supras and Handies were showing more opmism especially for the former who managed to close of the week on a posive note. The holiday season saw both basins witness a drop in promptly available tonnage causing a slow paced rally and some opmism on the owners side. The Atlanc basin here as well was the clear winner, although for the Handies, a slower moving connent cost the market any real improvement in freight levels which closed on par with what they were before Christmas.

Sale & Purchase

In the Panamax sector we had rumors of the sale of the Crown Star (76,662dwt-blt 02 Japan), which reportedly went for a price of $ 12.1m to U.S. based buyers Quintana. While also worth menoning is the sale of the s older S. Korean built Panamax Kronos (73,301dwt-blt 96 S. Korea) which is said to have been picked up for a price of about $ 7.0m by Greek buyers.

Intermodal Research

08/01/2013

Secondhand Sales
Tankers
Size
AFRA

Name
BRITISH HAWTHORN

Dwt
106,500

Built
2003

Yard
TSUNEISHI, Ja pa n

M/E
B&W

SS due
Jan-13

Hull
DH

Price
$ 15.5m

Buyers

Comments

Greek AFRA BRITISH LAUREL 106,500 2002 TSUNEISHI, Ja pa n B&W Nov-17 DH $ 15.5m

MR

LOTUS EXPRESS

45,789

2003

MINAMI-NIPPON, Ja pa n

B&W

Ma r-13

DH

$ 15.5m

Greek

pumproom

MR

AS OCEANIA

43,760

1999

DALIAN, China

MAN-B&W

Jun-14

DH

$ 10.0m

undis cl os ed

Epoxy

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

ELLEN KNUTSEN

17,071

1991 AESA SESTAO, Spa in

B&W

Jul-17

DH

$ 8.9m Middle Eas tern

StSt

SYNNOVE KNUTSEN CLIPPER TRINIDAD EASTERN HONESTY

17,071

1992 AESA SESTAO, Spa in

B&W

Jul-17

DH

$ 8.9m

StSt

8,823

1998

HITACHI ZOSEN , Ja pa n SHIN KURUSHIMA, Ja pa n

B&W

Aug-13

DH

$ 5.0m

Far Eas tern

StSt

8,719

2002

B&W

Feb-17

DH

$ 8.4m

Korea n

StSt

GREAT FISH

6,174

1990

SANUKI , Ja pan

Ha ns hin

Jan-15

DH

$ 2.9m

undi s cl os ed

Epoxy

SEA SPRING

4,933

2012

TAIZHOU YUANHANG, China

B&W

Jun-17

DH

$ 8.9m

undis cl os ed

Epoxy

Gas/LPG/LNG
Name
OCEANUS 09

Dwt
3,714

Built
1989

Yard
HIGAKI, Ja pa n

M/E
Mi ts ubis hi

SS due
Apr-14

Cbm
3,206

Price
undis cl os ed

Buyers
S. Korea n (Youngs a n)

Comments

CORAL MAYA

3,090

2004

POLI PELLESTRINA, Ita ly POLI PELLESTRINA, Ita ly

Ya nma r

Ma r-14

2,939

$ 10.0m Ita li an (Lumas hip)

CORAL ELECTRA

3,090

2003

Ya nma r

Dec-13

2,939

$ 10.0m

Intermodal Research

08/01/2013

Secondhand Sales
Bulk Carriers
Size
VLOC

Name

Dwt

Built
2012

Yard
HYUNDAI SAMHO, S .Korea HYUNDAI, S .Korea HYUNDAI, S .Korea HYUNDAI SAMHO, S .korea IMABARI MARUGAME, Ja pa n

M/E
Wa rts i l a

SS due

Gear

Price
$ 53.5m

Buyers

Comments

HYUNDAI SAMHO 263,000 S551 HYUNDAI Ul s a n 2410 HYUNDAI Ul s a n 2411

VLOC

263,000

2011

Wa rts i l a

$ 53.5m Bermuda ba s ed (Berge Bul k)

VLOC

263,000

2012

Wa rts i l a

$ 53.5m

VLOC

HYUNDAI SAMHO 263,000 S550

2012

Wa rts i l a

$ 53.5m

PMAX

CROWN STAR

76,662

2002

B&W

Feb-17

$ 12.1m

Greek

PMAX

BRAVE STAR

73,992

2000 TSUNEISHI , Ja pa n MAN-B&W

Ma r-15

$ 10.1m

Greek

PMAX

KRONOS

73,301

1996

SAMSUNG, S .korea COSCO DALIAN, Chi na COSCO DALIAN, Chi na HINDUSTAN, Indi a HINDUSTAN, Indi a

B&W

Apr-16

$ 7.0m

Greek

DD pa s s ed

SMAX

CHRISTINE STAR

56,854

2011

MAN-B&W

Ja n-16

4 X 30t CRS 4 X 30t CRS 4 X 36t CRS 4 X 36t CRS

$ 33.8m Greek

SMAX

HARMONY STAR

56,811

2011

MAN-B&W

Jun-16

$ 33.8m

SMAX

GOOD PRIDE

53,000

2010

Wa rts i l a

Apr-15

$ 13.25m Tha i (Preci ous Shi ppi ng) $ 14.25m

SMAX

GOOD PRECEDENT

53,000

2011

Wa rts i l a

Feb-16

Intermodal Research

08/01/2013

Demolion Market
Indicative Demolition Prices ($/ldt)
Markets Bangladesh India Pakistan China Bangladesh India Pakistan China Wet Week 1 425 415 415 390 400 400 390 375 Week 51 415 410 415 380 385 375 380 365 % 2.4% 1.2% 0.0% 2.6% 3.9% 6.7% 2.6% 2.7% 2012 2011 2010 440 445 444 384 415 419 417 365 523 511 504 451 498 484 477 432 422 427 425 383 375 394 388 364
The slowdown witnessed just before the end of the year proved to be only seasonal as it is evident that demo breakers have returned with a big appete and fresh budgets in the rst week of 2013. The majority of the market pundits had already been waing for 2013 to be another strong demo year and if we judge from how it kicked o it looks like they are not falling short from expectaons. Indian Sub-Connent breakers appear to be fairly strong with increased price oerings close to 430$/ldt levels and somemes well beyond these. Aracng more ship owners to beach their vessels is the key to rebalancing excess supply but at the same me it will be interesng to see up unl which point in the year the demo market will hold its ground. Prices for wet tonnages were at around 390-425$/ldt and dry units were seeing levels of about 375-400$/ldt. Most notable this price this week was that paid by Indian breakers for the container IRENES DREAM (47,273dwt-12,135ldt-blt 91), which was sold for a very rm price of $ 459/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 Size Ldt LEONIDAS WARRIOR 183,316 22,546 KEROS WARRIOR 149,528 18,500 Built 1987 1989 1992 1983 1991 1985 1984 1981 1980 1994 1981 Yard Type MITSUBISHI, Japan BULKER CHINA SHIPBLDNG, BULKER Chinese Taipei TSUNEISHI, Japan KOYO MIHARA, Japan SAMSUNG, S. Korea GEORGI DIMITROV, Bulgaria SASEBO, Japan HAKODATE, Japan HASHIHAMA, Japan SZCZECINSKA, Poland WATANABE ZOSEN, Japan TANKER BULKER CONT BULKER BULKER BULKER BULKER CONT BULKER $/ldt
$ 432/Ldt $ 435/Ldt $ 427/Ldt $ 410/Ldt $ 459/Ldt $ 309/Ldt $ 413/Ldt $ 412/Ldt $ 375/Ldt $ 448/Ldt $ 405/Ldt

Breakers Bangladeshi Bangladeshi Bangladeshi Bangladeshi Indian Turkish Bangladeshi Indian Pakistani Indian Indian

Comments

NAVION SAVONITA 108,153 16,151 SHUN MING IRENES DREAM DIMITROVSKY KOMSOMOL HERON AMIRA DINA CASSINI MARE IBERCUM SUNRISE 89 69,011 47,273 38,545 37,692 29,514 23,050 22,494 21,351 12,800 12,135 9,654 7,324 6,244 6,310 7,381 5,215

basis dely Bangladesh incl. bunkers ROB plus full spares

permanent ballast of 837t

Intermodal Research

08/01/2013

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 1 45.5 25.3 24.3 21.0 92.0 56.0 47.5 41.0 33.5 185 69.5 61.5 40.5 Week 51 45.5 25.3 24.3 21.0 92.5 56.0 47.5 41.0 33.5 185 69.5 61.5 40.5 % 0.0% 0.0% 0.0% 0.0% -0.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 2012 2011 2010 46 26 25 21 94 57 49 41 33 182 70 61 43 53 33 30 25 102 64 54 45 36 187 73 64 46 58 35 31 27 103 66 55 46 36 187 72 65 46
Although it has been a very dicult year for the dry bulk sector, and some market players are sll looking at scenarios in which the long awaited recovery gets postponed for a few years, it looks like the connuous iron ore price strengthening has lied the spirits of some leading shipowners. Greek based Thenamaris and Norways Frontline were reported to have placed signicant orders for Capesize vessels of fuel ecient design. Both orders were placed in Chinese yards, providing both shipbuilders with much needed newbuilding contracts aer what has been an extremely painful year for this sector. Most notably, Frontline2012, placed an order of 4 rm plus 2 oponal Capes at Shanghai Waigaoqiao for $45m each and in addion to that, they have also contracted STX Dalian to build a further 4 rm plus 4 oponal Capes. This brings the total order, if opons are exercised, to 14 Capes, which is an overwhelming number for sure, especially in the mes we are living, with overcapacity causing the majority of Cape owners bleeding cash.

Gas

Tankers

Tankers Newbuilding Prices (m$)

120 100
mi l lion $
VLCC Suezmax Aframax LR1 MR

Bulk Carriers Newbuilding Prices (m$)

70 60
mi l lion $
Capesize Panamax Supramax Handysize

80 60 40 20

50 40 30 20 10

Newbuilding Orders
Units 1+2 4+2 4+4 2 4 1 2 1 Type Bulker Bulker Bulker Bulker Gas Gas Gas Cruise Yard Delivery Buyer Price Shanghai Waigaoqiao, 2014 Greek (Thenamaris) undisclosed 180,000 dwt China Shanghai Waigaoqiao, 180,000 dwt 2014-2015 Norwegian (Frontline 2012) $ 45.0m China 180,000 dwt 61,000 dwt 174,000 cbm 154,800 cbm 22,000 cbm 5,400 brth STX Dalian, China Nantong KHI, China Hyundai Samho, S. Korea Hyundai H.I., S. Korea STX, S. Korea STX, France 2014-2015 Norwegian (Frontline 2012) 2014 2015 2015 2014 06/2016 Chinese (Jiangsu Ocean) Greek (Maran Gas Maritime) Bruneian (Brunei Gas Carriers) (Ultranav) US based (Royal Carribean) $ 43.0m undisclosed $ 210.0m undisclosed undisclosed $ 1320.0m LNG/On the back of long term charters LNG Size Comments fuel efficient design fuel efficient design fuel efficient design

Intermodal Research

08/01/2013

Commodies & Ship Finance

Market Data
4-Jan-13 10year US Bond 1.910 S&P 500 1,466.47 Nasdaq 3,101.66 Dow Jones 13,435.21 FTSE 100 6,089.84 FTSE All-Share UK 3,191.10 CAC40 3,730.02 Xetra Dax 7,776.37 Nikkei 10,688.11 Hang Seng 23,331.09 Dow Jones 236.61 $/ 1.30 $/ 1.60 / 0.81 /$ 88.11 $ / Au$ 1.04 $ / NoK 0.18 $ / SFr 0.93 Yuan / $ 6.25 Won / $ 1,066.82 $ INDEX 82.30 3-Jan-13 1.900 1,459.37 3,100.57 13,391.36 6,047.34 3,170.26 3,721.17 7,756.44 23,398.60 236.49 1.31 1.62 0.81 87.00 1.05 0.18 0.92 6.24 1,063.49 81.80 2-Jan-13 1.840 1,462.42 3,112.26 13,412.55 6,027.37 3,159.65 3,733.93 7,778.78 23,311.98 233.25 1.32 1.63 0.81 87.10 1.05 0.18 0.91 6.23 1,064.98 81.50 1-Jan-13 31-Dec-12 1.760 1,426.19 3,019.51 13,104.14 5,897.81 3,093.41 3,641.07 7,612.39 22,656.92 227.57 1.32 1.62 0.81 86.43 1.04 0.18 0.92 6.23 1,064.33 81.50 W-O-W Change % 11.7% 4.6% 4.8% 3.8% 2.8% 2.8% 3.0% 2.2% 2.8% 2.9% 6.3% -1.2% -0.7% -0.5% 2.3% 0.6% -0.6% 1.4% 0.0% -0.2% 1.0%
130 120 oil 110 100 90 80

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

1,720 1,700 1,680 1,660 1,640 1,620 gold

Stock Exchange Data

Bunker Prices
4-Jan-13 Rotterdam Houston Singapore Rotterdam Houston Singapore Rotterdam Houston Singapore 930.0 1,010.0 927.0 595.0 622.5 622.0 625.0 692.5 626.0 MDO 28-Dec-12 935.0 1,008.0 922.0 585.0 622.5 613.0 615.0 672.5 612.0 W-O-W Change % -0.5% 0.2% 0.5% 1.7% 0.0% 1.5% 1.6% 3.0% 2.3%

Currencies

World Economy News

180cst

380cst

Energy & Commodies

Eurozone unemployment hit a fresh record of 11.8 per cent in November, ocial stascs showed on Tuesday, highlighng the dire state of the blocs economy in spite of hopes for a gradual recovery this year. Across all 27 members of the EU, some 26m people were out of work in November, or 10.7 per cent of the workforce, according to Eurostat, the EUs stascal oce. (Financial Times)
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. 04-Jan-13 Exchange NYSE NYSE USD USD 6.05 3.27 4.86 7.18 14.70 2.98 8.37 2.17 2.26 1.00 0.61 0.10 4.13 1.94 38.50 16.50 2.51 3.75 13.95 0.72 3.00 3.90 1.63 6.94 8.27 4.07 1.05 21-Dec-12 5.08 3.16 4.16 6.57 14.07 2.61 7.47 1.73 1.47 0.88 0.51 0.09 3.62 1.60 37.00 15.10 2.12 3.44 12.56 0.37 2.39 3.48 1.13 6.04 8.23 3.80 1.01 W-O-W Change % 19.1% 3.5% 16.8% 9.3% 4.5% 14.2% 12.0% 25.4% 53.7% 13.6% 19.6% 11.1% 14.1% 21.3% 4.1% 9.3% 18.4% 9.0% 11.1% 94.6% 25.5% 12.1% 44.2% 14.9% 0.5% 7.1% 4.0%

Oil rose, trading near the highest level in almost four months in New York on esmates that U.S. reners boosted crude use and amid signs of an economic recovery in Europe. West Texas Intermediate futures advanced as much as 0.7pct, the third consecuve daily increase. Reneries probably raised their average run rate last week by 0.2pct points to 90.6pct. (Bloomberg)

Finance News
Max 1wk 6.05 3.27 4.86 7.18 14.70 2.98 8.37 2.17 2.26 1.00 0.61 0.10 4.13 1.94 38.50 16.50 2.51 3.75 13.95 0.72 3.00 3.90 1.63 6.94 8.27 4.07 1.05 Min 1wk 5.28 2.98 4.10 6.58 13.92 2.75 7.30 1.60 1.50 0.91 0.43 0.07 3.49 1.69 36.00 16.00 2.41 3.37 12.28 0.40 2.24 3.36 1.04 6.16 7.93 3.71 0.92

China sll has a long way to go to become a top ship nancing country, as its lenders are inexperienced and see few incenves to enter the recession-prone industry, a senior ocial has said. As European lenders retreat amid the sovereign debt crisis, many owners hoped Chinese banks could step in and insl liquidity into the cash-strapped industry. However, while policy banks such as the ExportImport Bank of China and China Development Bank are becoming more acve, most others have apparently been reluctant to expand their shipping porolio despite strong demand for credit. Even though ship nance is shiing from Europe to Asia, Europe is sll the core for shipping with its resources, said China Universal Leasing ship-lease general manager Wang Keke. The Chinese government is seeking to build ship nance centres in major cies, but it may take years to clear regulatory hurdles, including currency exchange controls and red tape for cross-border trading. China is learning from Europe now and building nancial centres. There have been some inial developments of derivaves, but relave services are sll not advanced enough, Mr Wang told a China Shipping Gazee forum. (Lloyds List)

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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 Mr. George Lazaridis | Senior Research Analyst | g.lazaridis@intermodal.gr Ms. Eva Tzima | Research Analyst | e.tzima@intermodal.gr