Weekly Market Report
Issue: Week 7 | Tuesday 21st February 2017
Market insight
By Katerina Restis
Tanker Chartering
In 2016 a session of the IMO committee in London, set the new prerequi-
sites effective from January 2020, which will necessitate global Sulphur con-
tent of marine fuels to be condensed from the current maximum of 3.5% to
0.5%. This decision is designed to radically reduce emissions produced by
vessels using marine diesel and fuel oil and principally the levels of Sulphur
oxides (SOx), nitrogen oxides (NOx) and particulate matters (PM). The shift
will impose major costs for the shipping industry in search for efficient solu-
tions. As of 2015 vessels in the SECAs areas comprising of the Baltic Sea,
North Sea, North American ECA, most of the US and Canadian coast and the
US Caribbean ECA, are compelled to use marine fuels with only 0.1% Sulphur
content.
Nowadays, natural gas in most nations is a significant power source for resi-
dential, commercial & industrial sectors’ energy needs. Several arguments
indicate that LNG utilization as transportation fuel and in particular its ship-
ping implementation may provide a future-fit solution as it has nearly no
Sulphur content (0.004%). Even though LNG requires more tank space
(volumetric) compared to other transportation fuels to generate equivalent
energy, is of lower cost and environmentally friendly.
Furthermore, it emits zero SOx and with the use of appropriate technology
almost 90% fewer NOx. Furthermore, it is a global commodity widely availa-
ble, with more than 20 countries exporting to 35 importing countries. Mar-
ket penetration is increasing in areas such as Middle East, Africa, Latin Amer-
ica and South-East Asia. The market is currently heading into oversupply
with estimates of approximately 150 million tons per annum of new export
capacity due to come on line between 2015-2020, representing 50% in-
crease over current capacity.
Lately, an increasing number of bunkering facilities is being built, while cur-
rent developed infrastructure is concentrated in North West Europe like
Rotterdam, Stockholm as well as the USG. Moreover, Asian ports that serve
deep-sea routes are in the process of developing LNG bunkering facilities as
evidenced by the world’s busiest bunker port, Singapore. The use of LNG for
marine propulsion has been used for decades in the LNG carrier industry
however the first LNG fueled vessel with gas engines and storage was the
ferry “Glutra” and came into service in 2000 in Norway. Currently there are
97 LNG fueled vessels mainly operating in the ECAs areas of N.W. Europe
and North America. Increase incentive in demand is evident from the 91
orders already placed by the end of 2016 for LNG-fueled ships
Additionally, the new Gas4Sea partnership has taken delivery of the world’s
first purpose-built LNG bunkering vessel from Hanjin Heavy Industries and
Construction in South Korea. An increasing number of companies is looking
for environmentally friendly supply chains in response to policies imposed.
VW Group for example stated that from 2019 they will use two LNG-
powered charter vessels for the transport of vehicles.
Uncertainty of global economic activity affecting shipping activity, fuel pric-
es, environmental regulations, know-how and machine technology, costs of
infrastructures and LNG availability are the key elements underlying demand
that necessitates further research as the global economic outlook remains
unclear. The use of alternative fuels is essential for breaking the oil depend-
ence, improving competitiveness and reducing greenhouse gas and pollutant
emissions and we expect the shipping industry to slowly but steadily move
towards that going forward.
Chartering (Wet: Stable+ / Dry: Firm + )
With support in Asian trade extending further and rates for Capes
bouncing back, the Dry Bulk market closed off on a positive note last
week. The BDI closed today (21/02/2017) at 778 points, up by 21 points
compared to yesterday’s levels (20/02/2017) and increased by 93
points when compared to previous Tuesday’s closing (14/02/2017).
Rates for VLs faced an uninspiring Middle East market last week, while
the rest of the crude carriers enjoyed improved numbers overall. The
BDTI on Monday (20/02/2017) was at 859, increased by 8 points and the
BCTI at 613, an increase of 36 points compared to prior Monday’s
(13/02/2017) levels.
Sale & Purchase (Wet: Stable - / Dry: Firm+)
Following a couple of more quiet weeks in the Dry Bulk SnP market,
Buyers made an impressive come back during the last days, with focus
remaining on post 2000 built tonnage. On the tanker side we had the
sale of the “DHT PHOENIX” (307,151dwt-blt 99, S. Korea), which was
sold to Swiss owner, Mercuria, for a price in the region of $18.5m. On
the dry bulker side, we had the sale of the “26 AGUSTOS” (52,455dwt-
blt 02, Philippines), which was sold to undisclosed buyers, for a price in
the region of $5.2m.
Newbuilding (Wet: Stable - / Dry: Stable -)
With less than a handful of orders being reported last week, there is still
very little to comment on in regards to newbuilding market activity,
while industry participants still find it very hard to spot silver linings in
regards to market prospects for this year. At the same time prices keep
moving south having everyone wonder how much more there is to the
bottom, as when price details for contracts involving conventional ves-
sels do become available, these usually are at a discount compared to
the last done. The extended pressure on newbuilding prices is evident in
most asset classes and sizes in the more conventional sectors, with the
Capesize newbuilding price having noted the biggest drop in the dry bulk
sector; down around 10% compared to a year ago. Even more impres-
sive is the drop in VLCC newbuilding prices, calculated to have lost
around 13% since February 2016, while given the first signs of activity in
2017, it seems it will take some time before prices climb back to q1 2016
levels again. In terms of recently reported deals, Norwegian owner, NCL,
placed an order for four firm and two optional Cruise carriers (140,000
GT) at Fincantieri, Italy for a price of $849.0m and delivery set in 2022.
Demolition (Wet: Firm + / Dry: Firm +)
The demolition market has witnessed another week of strengthening
prices across and while talk of speculation rather than strengthening
fundamentals driving the market continues, the reality is that as scrap
steel prices have been firming in most demolition destinations, this re-
cent rally might be indeed growing some legs. The improvement in Chi-
nese steel prices during the past months together of course with the
more recent strong comeback noted in the Chinese demo market fol-
lowing the end of the New Year celebrations in the country, has indeed
provided some much needed support to prices overall. As cheap steel
exports from China have been the main reason behind the considerable
pressure the demolition market witnessed during the past couple of
years, the reversal of this trend could be indeed signaling even more
healthy prices ahead, given of course that the Chinese market will not
witness any wild volatility going forward. Average prices this week for
tankers were at around 250-330 $/ldt and dry bulk units received about
240-310 $/ldt. Average prices this week for tankers were at around 250-
330 $/ldt and dry bulk units received about 240-310 $/ldt.
 Tanker Market
Spot Rates Indicative Period Charters
Week 7 Week 6 2016 2015
$/day - 2 + 3 mos - 'SILVAPLANA' 2003 114,829 dwt
Vessel Routes WS WS
$/day $/day ±% $/day $/day - - $11,750/day - Trafigura
points points
265k MEG-JAPAN 73 34,176 80 39,589 -13.7% 41,068 65,906 - 2 + 3 mos - 'LR2 POSEIDON' 2009 115,273 dwt
VLCC

280k MEG-USG 35 9,055 42 13,425 -32.6% 44,269 49,575 - - $11,750/day - Shell

260k WAF-USG 75 36,681 80 42,092 -12.9% 53,995 76,251
130k MED-MED 80 12,245 75 9,743 25.7% 29,930 50,337
Suezmax

TD3 TD6 TD9 DIRTY - WS RATES

130k WAF-USAC 75 13,481 70 11,135 21.1% 23,591 40,490 520
470
130k BSEA-MED 85 14,571 80 11,933 22.1% 29,930 50,337 420
80k MEG-EAST 112 12,536 113 12,717 -1.4% 20,111 34,131 370

WS poi nts
320
Aframax

80k MED-MED 97 11,567 98 11,765 -1.7% 20,684 37,127 270

80k UKC-UKC 115 21,534 100 13,317 61.7% 26,526 39,338 220
170
70k CARIBS-USG 152 20,988 95 8,595 144.2% 20,501 36,519 120
70
75k MEG-JAPAN 120 12,724 82 5,964 113.3% 16,480 30,482 20
Clean

55k MEG-JAPAN 130 11,297 112 10,321 9.5% 12,891 24,854

37K UKC-USAC 130 7,082 137 8,185 -13.5% 10,622 19,973
30K MED-MED 137 4,264 145 5,747 -25.8% 9,056 24,473
55K UKC-USG 112 8,695 145 14,804 -41.3% 15,726 27,228
TC1 TC2 TC5 TC6 CLEAN - WS RATES
Dirty

55K MED-USG 112 8,012 145 15,145 -47.1% 14,879 26,083 270
50k CARIBS-USAC 130 8,946 140 10,749 -16.8% 15,549 27,146 240
WS poi nts 210
180
TC Rates 150
120
$/day Week 7 Week 6 ±% Diff 2016 2015 90
60
300k 1yr TC 29,000 30,000 -3.3% -1000 38,108 46,135
VLCC
300k 3yr TC 28,000 29,000 -3.4% -1000 34,379 42,075
150k 1yr TC 21,000 22,000 -4.5% -1000 27,363 35,250
Suezmax
150k 3yr TC 20,250 20,250 0.0% 0 25,653 33,219
110k 1yr TC 16,750 17,250 -2.9% -500 22,396 26,808
Indicative Market Values ($ Million) - Tankers
Aframax Feb-17 Jan-17
110k 3yr TC 17,000 17,250 -1.4% -250 20,948 24,729 Vessel 5yrs old ±% 2016 2015 2014
avg avg
75k 1yr TC 13,000 13,250 -1.9% -250 19,127 23,596
Panamax VLCC 300KT DH 61.0 60.9 0.2% 68.7 81.2 73.8
75k 3yr TC 14,500 15,000 -3.3% -500 18,592 20,580
Suezmax 150KT DH 41.5 41.5 0.0% 49.7 59.7 50.4
52k 1yr TC 12,500 12,500 0.0% 0 15,410 17,865
MR Aframax 110KT DH 30.5 30.5 0.0% 36.8 45.5 38.9
52k 3yr TC 14,000 14,000 0.0% 0 15,681 16,638
LR1 75KT DH 28.5 28.4 0.4% 32.9 36.1 33.0
36k 1yr TC 11,500 11,750 -2.1% -250 14,380 16,101
Handy MR 52KT DH 22.0 22.0 0.0% 25.0 27.6 27.5
36k 3yr TC 13,000 13,000 0.0% 0 14,622 15,450

Chartering Sale & Purchase

Rates for crude carriers displayed a mixed picture during the past days, with In the VLCC sector we had the sale of the “DHT PHOENIX” (307,151dwt-blt
the VL market ending last week on a rather disappointing note and the rest 99, S. Korea), which was sold to Swiss owner, Mercuria, for a price in the
of the sizes enjoying improved earnings overall. At the same time, there region of $18.5m.
was little to report in regards to period business, with only short-term con- In the Aframax sector we had the resale of the “HYUNDAI SAMHO
tracts surfacing and numbers pointing to a softer market compared to the S811” (114,200dwt-blt 17, S. Korea), which was sold to Greek owner, Cardiff
previous weeks when the volatility in the spot market failed to have any Marine, for a price in the region of $41.75m.
effect on period numbers. Bunker prices have at the same time moved
higher last week as oil appears poised to enjoy a stronger market, but gains
remain rather limited so far as the output cut is being undermined by an
impressive increase in US drilling rigs.
A surprisingly quiet Middle East market last week set the tone for a soft VL
market, with charterers in the region taking their time in regards to next
month’s program, while slow activity also ate into West Africa rates.
A healthy number of cargoes allowed West Africa Suezmax rates to firm
further last week, while the improved momentum once more extended
through to the Black Sea/Med market. Aframax rates in the Med moved
sideways and busy charterers in the North Sea pushed the market higher
there, while even most impressive was the jump noted in the Caribs mar-
ket, where weather delays offered some long awaited support to rates.

© Intermodal Research 21/02/2017 2

 Dry Bulk Market
Baltic Indices Indicative Period Charters
Week 7 Week 6
Point $/day 2016 2015 - 11 to 14 mos - 'CSK GLORY' 2002 173,044 dwt
17/02/2017 10/02/2017
Diff ±% - Huanghua 21/25 Feb - $ 9,500/day - Bunge
Index $/day Index $/day Index Index
BDI 741 702 39 676 713 - 4 to 7 mos - 'SOGNA GENESIS' 2010 80,705 dwt
BCI 739 $6,130 687 $5,363 52 14.3% 1,030 1,009 - Ulsan 25/27 Feb - $ 7,600/day - Klaveness
BPI 917 $7,359 943 $7,556 -26 -2.6% 695 692
Baltic Indices
BSI 729 $7,622 672 $7,022 57 8.5% 601 663 BCI BPI BSI BHSI BDI
3,000
BHSI 391 $5,751 377 $5,493 14 4.7% 364 365
2,500
2,000

Index
1,500
1,000
500
Period 0
Week Week
$/day ±% Diff 2016 2015
7 6
180K 6mnt TC 9,000 8,750 2.9% 250 7,842 9,969
Capesize

180K 1yr TC 10,500 10,250 2.4% 250 7,582 10,263

Average T/C Rates
180K 3yr TC 10,250 10,000 2.5% 250 8,728 11,243
25000 Av erage of the 4 T / C AVR 4TC BPI AV R 5TC BSI AVR 6TC BHSI
76K 6mnt TC 8,500 8,250 3.0% 250 6,492 7,921
Handysize Supramax Panamax

76K 1yr TC 8,250 8,250 0.0% 0 6,558 7,705 20000

76K 3yr TC 8,500 8,500 0.0% 0 7,068 8,724 15000

$/day

55K 6mnt TC 8,750 8,500 2.9% 250 6,582 8,162

10000
55K 1yr TC 8,250 7,750 6.5% 500 6,851 7,849
5000
55K 3yr TC 8,500 8,250 3.0% 250 6,827 8,181
30K 6mnt TC 6,750 6,500 3.8% 250 5,441 6,690 0
30K 1yr TC 6,750 6,750 0.0% 0 5,511 6,897
30K 3yr TC 7,250 7,250 0.0% 0 5,950 7,291

Chartering
Indicative Market Values ($ Million) - Bulk Carriers
The positive reversal that finally took place in the Capesize market last
week, managed to push the BDI higher and reversed the negative momen- Vessel 5 yrs old Feb-17 avg Jan-17 avg ±% 2016 2015 2014
tum that built up during the previous weeks. The smaller sizes also noted Capesize 180k 24.0 24.0 0.0% 23.2 33.4 47.5
gains, with Supramaxes currently earning more than any other size on
Panamax 76K 15.0 14.0 7.1% 13.4 17.5 24.8
average, while even in the case of the Panamax market that moved down,
the decline was of small scale, hardly affecting sentiment. The period mar- Supramax 56k 14.5 14.1 2.7% 12.2 16.6 25.2
ket witnessed soft enquiry at the same time, while despite that numbers Handysize 30K 12.8 12.1 5.8% 9.4 13.8 20.0
were pointing up and good premiums over the spot were being paid closer
to the weekend. We expect the market to keep pointing upwards in the Sale & Purchase
following days, while healthier activity and numbers in the Pacific should
In the Post Panamax sector we had the sale of the “CHUBU MARU”
keep providing most of the this support, as business in the Atlantic re- (91,384dwt-blt 97, Japan), which was sold to Middle Eastern buyers, for a
mains disappointing with the positive spillovers from the East yet to mani- price in the region of $5.6m.
fest there.
In the Supramax sector we had the sale of the “26 AGUSTOS” (52,455dwt-
The second half of last week saw a positive reversal in the Capesize market blt 02, Philippines), which was sold to undisclosed buyers, for a price in the
that witnessed healthier demand in most routes following a few rather region of $5.2m.
disappointing weeks, while the improvement in the East is expected to
extend further in the following days as well, as enquiry in the region re-
mains at good levels.

Panamax rates faced a market of two speeds for a second week in a row,
with activity and rates in the East still pointing upwards, while in the Atlan-
tic, enquiry in the North as well as ex– South America left owners bal-
lasting there disappointed yet again.

The Atlantic Supramax market finally showed signs of improvement just

before the weekend, with USG and East Coast South America witnessing
improved demand, while numbers for the smaller sizes in the East kept
moving upwards also cashing in on the improved momentum there.

© Intermodal Research 21/02/2017 3

 Secondhand Sales

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

KOYO MIHARA,
CAPE SHIN-ZUI 180,201 2007 MAN-B&W $ 15.1m Greek
Ja pa n

TSUNEISHI HEAVY Si nga porea n

CAPE ALTAIR DREAM 179,965 2012 MAN-B&W $ 25.9m
CEBU, Phi l i ppi nes (Ada ni Shi ppi ng)

POST KOYO MIHARA,

CHUBU MARU 91,384 1997 B&W Ma y-17 $ 5.6m Mi ddl e Ea s tern
PMAX Ja pa n

BERGEN TRADER SUNGDONG, S.

KMAX 82,500 2013 MAN-B&W Feb-18 $ 16.1m undi s cl os ed
II Korea

BERGEN TRADER SUNGDONG, S.

KMAX 82,500 2012 MAN-B&W Dec-17 $ 15.9m undi s cl os ed
I Korea

TSUNEISHI -
PMAX RED GARDENIA 76,294 2005 B&W Sep-20 l ow $7.0m Greek
TADOT, Ja pa n

JIANGNAN
PMAX LIAN HUA FENG 73,901 2002 MAN-B&W $ 4.6m undi s cl os ed
SHIPYARD, Chi na

4 X 30t
SMAX PRABHU DAYA 52,822 2001 ONOMICHI, Ja pa n B&W Sep-17 $ 5.5m Qa ta ri (S'Ha i l )
CRANES

TSUNEISHI CEBU, 4 X 30t

SMAX 26 AGUSTOS 52,455 2002 B&W Ma r-17 $ 5.2m undi s cl os ed
Phi l i ppi nes CRANES

HAKODATE DOCK - 4 X 25,5t

HMAX BLUE ANGEL 44,950 1994 B&W Jun-19 $ 2.5m Mi ddl e Ea s tern
HAKODA, Ja pa n CRANES

KANDA KAWAJIRI, 4 X 30,5t

HANDY ALAM SAKTI 32,610 2006 Mi ts ubi s hi Feb-21 $ 6.5m U.S Ba s ed on s ubs
Ja pa n CRANES

SHIMANAMI 4 X 30,5t
HANDY MARDI GRAS 28,500 2006 MAN-B&W Dec-20 $ 6.0m undi s cl os ed
ZOSEN KK, Ja pa n CRANES

4 X 30t
HANDY OCEAN TRADER I 24,112 1999 SAIKI, Ja pa n Mi ts ubi s hi $ 2.5m Chi nes e
CRANES

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

VLCC DHT PHOENIX 307,151 1999 DAEWOO, S. Korea MAN-B&W Sep-19 DH $ 18.5m Swi s s (Mercuri a )

HYUNDAI SAMHO HYUNDAI SAMHO, S. Greek

AFRA 114,200 2017 MAN-B&W DH $ 41.75m
S811 Korea (Ca rdi ff Ma ri ne)

STENA
MR 49,731 2015 Zha o, Chi na MAN-B&W Oct-15 DH $ 36.0m Ja pa nes e fi na nce dea l
IMPORTANT

© Intermodal Research 21/02/2017 4

 Secondhand Sales

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

POST HANJIN PORT HYUNDAI SAMHO,

6,655 2006 Sulzer $ 12.0m
PMAX KELANG S. Korea

POST HYUNDAI SAMHO,

HANJIN XIAMEN 6,655 2007 Wartsila $ 12.0m
PMAX S. Korea

POST HYUNDAI SAMHO,

HANJIN TIANJIN 6,655 2007 Wartsila $ 12.0m Indian (SM Line)
PMAX S. Korea

POST HANJIN HYUNDAI SAMHO,

6,655 2006 Sulzer $ 12.0m
PMAX BUDAPEST S. Korea

POST HANJIN HYUNDAI SAMHO,

6,655 2006 Sulzer $ 12.0m
PMAX BREMERHAVEN S. Korea

WEHR HONG HANJIN HI, S.

PMAX 5,089 2006 MAN-B&W $ 7.2m Chinese
KONG Korea

MPP/General Cargo
Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
SHINA
WOOYANG DANDY 2,594 1992 SHIPBUILDING, S. Akas aka undi s cl os ed undi s cl os ed
Korea

© Intermodal Research 21/02/2017 5

 Newbuilding Market

Indicative Newbuilding Prices (million$) With less than a handful of orders being reported last week, there is still very
little to comment on in regards to newbuilding market activity, while industry
Week Week
Vessel ±% 2016 2015 2014 participants still find it very hard to spot silver linings in regards to market
7 6 prospects for this year. At the same time prices keep moving south having
Capesize 180k 41.5 41.5 0.0% 43.2 50 56 everyone wonder how much more there is to the bottom, as when price
Bulkers

Kamsarmax 82k 24.0 24.0 0.0% 24.8 28 30 details for contracts involving conventional vessels do become available,
Ultramax 63k 22.0 22.0 0.0% 23 25 27 these usually are at a discount compared to the last done. The extended
Handysize 38k 19.5 19.5 0.0% 20 21 23 pressure on newbuilding prices is evident in most asset classes and sizes in
VLCC 300k 82.0 83.0 -1.2% 88.5 96 99 the more conventional sectors, with the Capesize newbuilding price having
noted the biggest drop in the dry bulk sector; down around 10% compared
Tankers

Suezmax 160k 54.0 54.0 0.0% 58 64 65

to a year ago. Even more impressive is the drop in VLCC newbuilding prices,
Aframax 115k 44.0 44.0 0.0% 48 53 54 calculated to have lost around 13% since February 2016, while given the first
LR1 75k 41.0 41.0 0.0% 42.5 46 46 signs of activity in 2017, it seems it will take some time before prices climb
MR 50k 32.5 32.5 0.0% 33.7 36 37 back to q1 2016 levels again.
LNG 160k cbm 189.0 189.0 0.0% 189 190 186
In terms of recently reported deals, Norwegian owner, NCL, placed an order
LGC LPG 80k cbm 71.0 71.0 0.0% 74.1 77 78
Gas

for four firm and two optional Cruise carriers (140,000 GT) at Fincantieri,
MGC LPG 55k cbm 64.0 64.0 0.0% 65.7 68 67 Italy for a price of $849.0m and delivery set in 2022.
SGC LPG 25k cbm 42.0 42.0 0.0% 42.8 45 44

Tankers Newbuilding Prices (m$) Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize
VLCC Suezmax Aframax LR1 MR 110
180
90
140
mi l lion $
mi l lion $

70
100
50
60
30
20 10

Newbuilding Orders
Units Type Size Yard Delivery Buyer Price Comments
Fujian Southeast,
1 Tanker 10,000 dwt 2018 Chinese undi s cl os ed
China
4+2 Cruise 140,000 GT Fincantieri, Italy 2022 Norwegian (NCL) $ 849.0m 3,300 pax

Wuchang SB Group, South Korean

4 Heavy Lift 13,000 dwt 2019 undi s cl os ed
China (Samsung C&T Corporation)
Hyundai Mipo, S. ethylene carrier, Tier
2+2 Gas 21,000 cbm 2019 Norwegian (Solvang) undi s cl os ed
Korea III, LOI signed

© Intermodal Research 21/02/2017 6

 Demolition Market

Indicative Demolition Prices ($/ldt) The demolition market has witnessed another week of strengthening prices
Week Week across and while talk of speculation rather than strengthening fundamentals
Markets ±% 2016 2015 2014 driving the market continues, the reality is that as scrap steel prices have
7 6
been firming in most demolition destinations, this recent rally might be in-
Bangladesh 330 320 3.1% 287 360 469 deed growing some legs. The improvement in Chinese steel prices during the
Tanker

India 330 320 3.1% 283 361 478 past months together of course with the more recent strong comeback noted
Pakistan 325 320 1.6% 284 366 471 in the Chinese demo market following the end of the New Year celebrations
China 250 240 4.2% 176 193 313 in the country, has indeed provided some much needed support to prices
Bangladesh 310 300 3.3% 272 341 451 overall. As cheap steel exports from China have been the main reason behind
Dry Bulk

India 310 295 5.1% 268 342 459 the considerable pressure the demolition market witnessed during the past
couple of years, the reversal of this trend could be indeed signaling even
Pakistan 300 295 1.7% 267 343 449
more healthy prices ahead, given of course that the Chinese market will not
China 240 230 4.3% 160 174 297 witness any wild volatility going forward. Average prices this week for tank-
ers were at around 250-330 $/ldt and dry bulk units received about 240-310
$/ldt.
The highest price amongst recently reported deals was paid by Bangladeshi
breakers for the Capesize bulker “CAPE TAVOR” (172,515dwt-21,272ldt-blt
99), which received $346/ldt.

Tanker Demolition Prices Dry Bulk Demolition Prices

Bangladesh India Pakistan China 550 Bangladesh India Pakistan China

520 450
420 350
$/l dt

$/l dt

320 250
220 150

120 50

Demolition Sales
Name Size Ldt Built Yard Type $/ldt Breakers Comments

CAPE TAVOR 172,515 21,272 1999 NKK, Japan BULKER $ 346/Ldt Bangladeshi
HITACHI ZOSEN -
MSC NOA 44,552 13,552 1986 CONT $ 337/Ldt Indian
INNOSH, Japan
KOMUNY PARYSKIEJ
SEA PEARL 38,760 11,956 1986 GC $ 322/Ldt Indian
STOCZ, Poland

© Intermodal Research 21/02/2017 7

 Commodities & Ship Finance

Market Data Basic Commodities Weekly Summary

W-O-W Oil WTI $ Oil Brent $ Gold $
17-Feb-17 16-Feb-17 15-Feb-17 14-Feb-17 13-Feb-17
Change % 60 1,250

10year US Bond 2.420 2.450 2.500 2.470 2.430 0.4% 55

S&P 500 2,351.16 2,347.22 2,349.25 2,337.58 2,328.25 1.5%
oil 50 gold
Stock Exchange Data

Nasdaq 5,838.58 5,814.90 5,819.44 5,782.57 5,763.96 1.8%

Dow Jones 20,624.05 20,619.77 20,611.86 20,504.41 20,412.16 1.7% 45

FTSE 100 7,299.96 7,277.92 7,302.41 7,268.56 7,278.92 0.6% 40 1,200

FTSE All-Share UK 3,968.78 3,959.20 3,974.24 3,957.59 3,961.17 0.5%
CAC40 4,867.58 4,899.46 4,924.86 4,895.82 4,888.19 0.8%
Xetra Dax 11,757.02 11,757.24 11,793.93 11,771.81 11,774.43 -0.1%
Nikkei 19,234.62 19,234.62 19,347.53 19,437.98 19,238.98 0.0%
Hang Seng 24,033.74 24,033.74 24,107.70 23,994.87 23,703.01 1.9%
DJ US Maritime 234.04 232.73 236.51 235.19 239.62 -1.0% Bunker Prices
$/€ 1.07 1.06 1.06 1.06 1.06 0.3% W-O-W
17-Feb-17 10-Feb-17
$/₤ 1.25 1.25 1.25 1.25 1.25 0.0% Change %
Currencies

¥/$ 113.32 114.11 114.30 113.71 113.93 0.1% Rotterdam 472.0 475.0 -0.6%

MDO
$ / NoK 0.12 0.12 0.12 0.12 0.12 1.0% Houston 508.0 513.5 -1.1%
Yuan / $ 6.86 6.87 6.87 6.88 6.88 -0.3%
Singapore 500.0 495.0 1.0%
Won / $ 1,142.08 1,135.10 1,138.96 1,149.77 1,146.40 -0.4%
Rotterdam 305.5 301.5 1.3%

380cst
$ INDEX 100.95 100.44 101.18 101.25 100.96 0.1%
Houston 297.5 295.0 0.8%
Singapore 332.5 327.5 1.5%

Maritime Stock Data Market News

Stock W-O-W “Golar LNG raises $402.5m from convertible bond
Company Curr. 17-Feb-17 10-Feb-17 sale
Exchange Change %
AEGEAN MARINE PETROL NTWK NYSE USD 10.20 10.85 -6.0% NORWAY-listed Golar LNG has successfully sold
$402.5m in its 2.75% convertible senior notes due
CAPITAL PRODUCT PARTNERS LP NASDAQ USD 3.41 3.44 -0.9% in 2022 in a private placement to qualified institu-
COSTAMARE INC NYSE USD 6.05 5.58 8.4% tional investors. The amount includes $52.5m worth
of the bonds sold as the initial buyers exercised
DANAOS CORPORATION NYSE USD 2.65 2.60 1.9%
their 30-day option in full to purchase more bonds
DIANA SHIPPING NYSE USD 3.74 3.95 -5.3% during the offering. In light of the offering, the com-
pany has used around $31.2m of net proceeds to
DRYSHIPS INC NASDAQ USD 4.47 3.99 12.0%
finance the cost of capped call transactions, which
EAGLE BULK SHIPPING NASDAQ USD 5.40 5.50 -1.8% includes $4.1m to pay for capped call transactions
EUROSEAS LTD. NASDAQ USD 1.65 1.63 1.2% related to the additional sale of the bonds.
The transactions are meant to mitigate any poten-
GLOBUS MARITIME LIMITED NASDAQ USD 7.44 7.10 4.8%
tial dilution of Golar LNG's common shares upon
NAVIOS MARITIME ACQUISITIONS NYSE USD 1.88 1.84 2.2% conversion of the notes. The rest of the net pro-
NAVIOS MARITIME HOLDINGS NYSE USD 1.90 1.90 0.0% ceeds will be used for general corporate purposes.
As senior, unsecured obligations of the company,
NAVIOS MARITIME PARTNERS LP NYSE USD 1.86 1.67 11.4% the notes will pay interest in arrears twice a year,
SAFE BULKERS INC NYSE USD 1.30 1.45 -10.3% on February 15 and August 15, respectively, and
come with a maturity date of February 15, 2022.
SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.10 1.05 4.8%
They can be converted into Golar LNG's common
STAR BULK CARRIERS CORP NASDAQ USD 8.26 8.53 -3.2% shares, cash or a combination of both at the compa-
STEALTHGAS INC NASDAQ USD 4.10 4.20 -2.4% ny's discretion. Golar LNG's private placement
comes after Golar LNG Partners launched a
TSAKOS ENERGY NAVIGATION NYSE USD 4.78 4.77 0.2% $103.5m public offering to maintain its 2% general
TOP SHIPS INC NASDAQ USD 3.22 2.08 54.8% partner interest. Golar LNG (news, data) announced
the 4.5m common units earlier in February.
Morgan Stanley, the offering's sole underwriter,
was given the option to buy another 675,000 com-
mon units from Golar in the next 30 days.” (Lloyd’s
List)

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbr okers 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. George Panagopoulos | g.panagopoulos@intermodal.gr
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