April 5th, 2013/ Week 14

THE VIEW FROM THE BRIDGE

Full report can be viewed on the following link: www.compassmar.com/reports.cfm Tanker sale and purchase activity has been picking up, especially in the MR sector where several MR resales were reported sold this week at much higher price levels than recent transactions. Are these "one-offs" from buyers who are willing to pay up for the few available prompt delivery ECO designed vessels or "new benchmarks"? Navios Maritime Acquisition and Scorpio Tankers are using proceeds from recent equity raisings to expand their ECO product tanker fleets through new orders and by buying resales from third parties. Navios purchased the M/T "IVORY POINT" / "INDIGO POINT" (50,922 DWT/Built 2007 and 2008 at STX Shipbuilding in Korea) for about $24 mill. and $22.4 mill. respectively and placed orders for 2 option 2 ECO Mr2 newbuildings in Korea for $31.5 mill. each basis delivery third/fourth quarter 2014. In addition they purchased a resale ECO MR tanker (50,400 DWT/Delivery 3rd quarter 2013 from STX Jinhae Shipyard in Korea) for about $34.5 mill. Scorpio Tankers exercised two newbuilding options for two 37,000 DWT ice class Handysize product tankers at $31.5 mill. each basis delivery in the 3rd quarter of 2014 and picked up 4 x 50,000 DWT ECO MR tanker resales (via novation contracts) at $36.5 mill. each which are scheduled for delivery from Hyundai Mipo in 2nd and 3rd quarter of 2013. Ship owning companies continue to restructure and this week STX Pan Ocean put four ships for sale in a bid to raise cash after their tender to sell a 36% shareholding of associated companies STX Group and STX Offshore failed. The four ships in question are the M/V "STX DALIAN" / "STX QINGDAO" (23,579 DWT/Built 2010 and 2009 at Guangzhou Wenchong Shipyard in China - 1,740 TEU's - Cranes 2/45 tons) and two kamsarmax newbuildings (83,000 DWT/Delivery 5/2013 and 10/2013 from STX Dalian Shipbuilding in China). The Japanese shipping community is working together to help major shipowner Daiichi Chuo Kisen Kaisha (Daiichi) get out of deep financial trouble after they posted a first quarter deficit of $228 mill. Mitsui OSK Lines (MOSK) is a major shareholder and they purchased about 95% of the second YEN 15 bill. (about $160 mill.) new preferred "A Class" share issue (same amount as the February 2013 issue) and Japanese owners Doun Shipping Group and Nissen Kaiun Group also participated. Have a great weekend!

1 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

TANKERS
TANKER SALES REPORTED THIS WEEK
Vessel Name EAGLE VENICE EAGLE VALENCIA NORDMARK CHEMTRANS SUN 4 X HYUNDAI NB RESALE STX JINHAE 1463 BOW CAPE BOW LIMA LEO STAR HELENE KNUTSEN BRO CONCORD DWT 309,164 306,999 105,337 71,675 51,800 50,400 19,971 17,568 14,848 11,980 Year 2005 1998 1999 2013 2013 2007 2008 1992 1995 Built S. Korea S. Korea China S. Korea S. Korea Japan S. Korea Spain Singapore Engine MAN/B&W B&W B&W MAN/B&W MAN/B&W MAN/B&W MAN/B&W B&W MIT Stainless, 20 Grades Coated, Coiled, Imo 2 Coated, Coiled, DH Coated, Coiled, DH Coated, Coiled, DH SS/DD Due Coiled, DH Additional Info Price ($ Mill.) $39 Each $8.5 $7 $36.5 $34.5 $23 each $12.6 $6 $5 Buyer Greek Undisclosed Undisclosed U.S (Scorpio Tankers) Greek (Navios) Chinese (Sinochem) Greek W. African Undisclosed

COMPASS MARITIME TANKER VALUES

ASSET CLASS TANKERS VLCC SUEZMAX AFRAMAX PANAMAX MR TANKER
SIZE (DWT)

NB CONTRACT

NB PROMPT 5 YEAR DELIVERY (All Numbers in US $ Millions) $85 mill $54 mill $37 mill $36 mill $31 mill $54 mill $40 mill $27 mill $25 mill $22 mill

10 YEAR

20 YEAR

300,000 150,000 105,000 70,000 47,000

$88 mill $57 mill $45 mill $37 mill $32 mill

$34 mill $24 mill $17 mill $19 mill $15 mill

$20 mill. $11 mill. $8 mill. $7 mill. $6 mill.

COMPASS MARITIME TANKER VALUES (5YRS OLD $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00

VLCC SUEZMAX AFRAMAX PANAMAX MR

2 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

BULK CARRIERS
BULK CARRIERS SALES REPORTED THIS WEEK
Vessel Name TAMOU MICHAELA DELLA GATTA CREST VOYAGER SD NOVA KEN C. EMERALD BRIGHT LAKER GREAT MORNING DWT 177,243 82,790 76,255 70,108 46,747 42,174 30,778 28,710 Year 2005 2006 2005 1996 1998 1994 2001 2004 Built Japan Japan Japan Japan Japan Japan Japan Japan Engine MAN/B&W MAN/B&W B&W SUL SUL SUL B&W MIT H/H 9/9 7/7 7/7 7/7 5/5 5/5 5/5 5/5 C 4X30T C 4X25T C 4X30T C 4X30.5T SS/DD passed 6,580 LDT GEAR Additional Info Price ($ Mill.) $27 $17.75 $15.9 $6.7 $9.5 $6.5 $9.5 $13 Buyer Undisclosed Greek Greek Undisclosed U.S. (Phoenix Bulk) Undisclosed Greek Undisclosed

COMPASS MARITIME BULK CARRIER VALUES

ASSET CLASS BULK SIZE (DWT) NB CONTRACT NB PROMPT DELIVERY 5 YEAR 10 YEAR 20 YEAR (All Numbers in US $ Millions)

CAPE PANAMAX SUPRAMAX

170,000 74,000 56,000

$46 mill. $27.5 mill. $25.5 mill.

$38 mill $26 mill $25 mill.

$30 mill. $19 mill. $18 mill.

$21 mill. $15 mill. $14 mill.

$10 mill. $7 mill. $6 mill.

COMPASS MARITIME BULKER VALUES (5YRS OLD) $180.00 $160.00 $140.00 $120.00 $100.00 $80.00 $60.00 $40.00 $20.00 $0.00

CAPE PANAMAX HANDYSIZE SUPRAMAX

3 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

MISCELLANEOUS VESSELS
CONTAINERSHIPS SALES REPORTED THIS WEEK
Vessel Name MOL EFFICIENCY MOL EXCELLENCE MOL EXPEDITOR MOL EXPRESS DWT Year Built TEU Engine GEAR Additional Info Price Mill. Buyer

63,100

2003

Japan

4,646

SUL

$17.2 each

Canadian (Seaspan)

TWEENDECKERS/ MPC/ Ro-Ro/ MISCELLANEOUS VESSELS

Vessel Name No sales to report DWT Year Built TEU Engine H/H GEAR Additional Info Price / Mill Buyer

4 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

CHARTERING MARKET SNAPSHOT

BULKERS BALTIC EXCHANGE BULKER FRIEGHT INDICES THIS WEEK 861 1,215 1,094 912 525 LAST WK 910 1,249 1,176 944 547 LAST YEAR 928 1,507 1,036 949 547 CHANGE w-o-w (49) (34) (82) (32) (22) y-o-y (18) (258) 140 (37) (22) y-o-y (%) -1.94% -17.12% 13.51% -3.90% -4.02% TANKERS BALTIC EXCHANGE TANKER FRIEGHT INDICES THIS WEEK 707 662 LAST WK 661 691 LAST CHANGE y-o-y YR w-o-w y-o-y (%) 820 46 (159) -19.39% 639 (29) 52 8.14%

BDI - DRY BCI - CAPES BPI - PANAMAX BSI - SUPRAMAX BHSI - HANDYSIZE

BDTI - DIRTY TANKERS BCTI - CLEAN TANKERS

BULKER 12 MONTHS T/C RATES

THIS WEEK
CAPE PANAMAX SUPRAMAX 170,000 75,000 52,000 10,750 9,000 8,800

LAST WEEK
10,500 9,250 9,250

TANKER 12 MONTHS T/C RATES

DWT
VLCC Suezmax Aframax LR2 LR1 MR 300,000 150,000 110,000 105,000 80,000 47,000 THIS WEEK 18,500 16,000 13,250 16,000 14,500 14,000 LAST WEEK 18,500 16,000 13,500 15,500 14,250 14,000

KEY INDICATORS

BUNKER PRICES (US$/ton) 380 CST 180CST MGO

ROTTERDAM $590.00 $615.00 $875.00

FUJAIRAH $625.00 $668.00 $1,005.00

SINGAPORE $620.00 $630.00 $885.00

PIRAEUS $600.00 $630.00 $910.00

FINANCIAL SUMMARY7
WON / US $ NOK / US $ US $ / US $ / / US $ OIL (WTI) / bbl 10-YR TREAS LIBOR (3-mos) 1124.70 5.7788 1.2936 1.5234 96.34 $93.26 1.759% 0.28%

5 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

RECYCLING / DEMOLITION
RECYCLING ACTIVITY REPORTED THIS WEEK
BANGLADESH - CHITTAGONG NAME MV WARRIOR I DWT 34,856 YEAR 1983 LDT 7,934 CHINA NAME No sales to report INDIA ADDITIONAL INFORMATION DWT YEAR LDT ADDITIONAL INFORMATION PRICE/ LDT (USD) ADDITIONAL INFORMATION PRICE/ LDT (USD) $420

NAME MV DIGNITY (ex. Krairatch Dignity) BACO LINER I (Lash) BACO LINER II (lash)

DWT 41,213 21,801

YEAR 1984 1979 1980

LDT 8,528 9,102

PRICE/ LDT (USD) $425 $450

Enbloc sale, June delivery PAKISTAN KARACHI ADDITIONAL INFORMATION

NAME No sales to report

DWT

YEAR

LDT

PRICE/ LDT (USD)

MISC NAME SEABOARD VICTORY (Ro/Ro, Lo/Lo) DWT 14,454 YEAR 1983 LDT 9,260 ADDITIONAL INFORMATION As is Freeport, Bahamas. Extra payment for bunkers PRICE/ LDT (USD) $324

NAME PACIFIC (Passenger)

DWT

YEAR 1971

LDT 13,573

TURKEY ADDITIONAL INFORMATION 20,186 GRT As is Genoa, Italy

PRICE/ LDT (USD) $260

RECYCLING STATISTICS
ASSET CLASS ULCC/VLCC SUEZMAX AFRAMAX PANAMAX TANKER CAPE/COMBO (80K DWT +) PANAMAX BULKER POST PANAMAX BULKER THIS DATE 2013 2 3 10 3 17 19 1 THIS DATE 2012 6 12 9 3 18 34 2012 TOTAL 17 25 39 13 88 118 2011 TOTAL 13 10 29 8 70 63

ESTIMATED RECYCLING PRICES (US $ / LDT)

LOCATION CHINA SUB-CONTINENT TANKERS 15-20,000 LDT $ 385 $ 445 TANKERS 6-10,000 LDT $ 375 $ 435 BULK CARRIERS $365 $425

6 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009

NEWBUILDINGS
NEWBUILDING ACTIVITY REPORTED THIS WEEK
No. 4+4+4+4 4x 1x 3x 3+2 2x 2x 1x 2x 2+2+4 1x 2x Size 113,000 dwt 180,000 dwt 180,000 dwt 180,000 dwt 64,000 dwt 60,000 dwt 40,600 dwt 37,000 dwt 36,000 dwt 1,800 teu 1,100 teu 1,100 teu Type Tank Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Cont Cont Cont Yard STX STX Dalian Sungdong Sungdong Hantong JMU Yangfan Onomichi Shikoku CSBC Kyokuyo Yangfan Delivery 2015/16 2015 2015 2015 2015 2015 2015 2015 2014 2014 2015 2015 $23 $22.6 $24 $21.5 $47 $50 $24.5 Price (mill) $43.5 Owners Teekay Frontline Marmaras Alcyon Japanese Golden Ocean Unishipping Shih Wei Nav. Shih Wei Nav. SITC Heung-A Ningbo Ocean

NEWBUILDING STATISTICS - TANKERS

ASSET CLASS ULCC/VLCC SUEZMAX AFRAMAX PANAMAX MR TANKER 0-35K DWT 2013 37 39 19 20 88 54 2014 30 13 29 9 95 11 27 2 2015 6 10 7 4 7 2 5 2016 2017 2018 *TOTAL ORDERBOOK 73 (-5) 67 55 33 218 (-1) 67 ASSET CLASS CAPESIZE 80-100K WT PANAMAX SUPRAMAX HANDYSIZE
Very Truly Yours,

NEWBUILDING STATISTICS - BULKERS

2013 143 202 188 281 224 2014 63 86 88 85 122 2015 38 16 11 16 30 5 2016 1 0 5 2017 2018 *TOTAL ORDERBOOK 245 303 (-1) 288 (-4) 378 (-3) 385 (+4)

Includes ALL vessels on order. Please note that not all data is current as of the end of this week.

COMPASS MARITIME SERVICES, LLC

Compass Maritime Services, LLC is Member of The Association of Ship Brokers & Agents (USA) Inc. (ASBA), and The Baltic Exchange,

and Panel Member of The Baltic Exchange Sale & Purchase Assessment (BSPA Index) The Baltic Exchange Demolition Assessment (BDA Index) The information contained in this report has been obtained from various market sources. COMPASS MARITIME believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. COMPASS MARITIME will not be held responsible for any action or failure to take action upon reliance on information contained herein. This report, whether partially or in its entirety, cannot be reproduced by any means without the prior written authorization of COMPASS MARITIME. 2000-2011 COMPASS MARITIME SERVICES, LLC All Rights Reserved

7 COMPASS MARITIME SERVICES, LLC Teaneck, New Jersey USA www.compassmar.com Phone: 201-907-0009