Weekly Market Report

Issue: Week 02 | Tuesday 15th January 2013

Brokers insight
by Christos Mantzios 2012 bore witness to several prominent shipping enes teaming up with powerful players from the nancial scene in order to back their purchasing eorts with the use of the more liquid US money markets. But how could they have generated sucient interest towards such a highly cyclical and volale industry during such mes of uncertainty? One answer could possibly be the close to historical lows asset prices, thus reducing substanally the cost of acquiring such an asset and therefore making the entry into said market a more viable possibility from a medium-term investment perspecve. Although the market entry point for both the dry bulk and tanker assets is at relavely low levels, the boom of the barrel scrapping charter rates experienced throughout 2012, as well as the poor market fundamentals for 2013 (daunng overcapacity), should have caused most of these major nancial players to show a preference in the tanker market which showed more promise during 4Q2012. This revived strength in the tanker market (dirty during 3Q and clean during 4Q) was epitomised by the fresh wave of new ordering at S.Korean yards by major market players such as BP (Aframax , Suezmax), Sinokor (MR) and US-listed Scorpio Tankers (MR) towards the end of the year. But if the current state of the dry bulk market was so bad, why the increased interest in Panamax bulkers? In 2012 Panamax bulkers accounted for 26% of all dry bulk SnP deals, compared to only 19% in 2011. At the same me the majority of these involved older aged units (10-15year old) which seemed to also show the strongest drop in prices. This generated a strong appete for Panamax tonnage, especially amongst Greek owners, pushing for en masse acquisions of the numerous available Japanese candidates built in the 1996-2002 bracket. Buyers have on their side the fact that asset prices for both Panamax bulkers and Aframax tankers are close to their historical lows. The value of a 5 year old Panamax bulker currently stands at approximately USD 17.5mill, a far cry from the USD 26-27mill required a year ago..... For a 10 year old vessel the gure is around USD 12-12.5mill and for a 15 year old its less than USD 10mill.. That is a substanal dierence from Nov 2011 when the price for a 10 year old Panamax stood at USD 21mil. Of course, back in Nov 2011 such a vessel was seeing earnings in the region of USD 13,000-14,000/day compared with USD 8,000/day currently seen for 1 year TC. This may well be part of the explanaon as to why prices have eroded over the past year, but its important to also note that the replacement cost (newbuilding price) for such a vessel back then was in the region of USD 29mill, while it now stands at around USD 25,5mill. Therefore it has started to make much more sense today to buy a 10 year old Panamax bulker then placing an new order compared to roughly a year ago where a 10 year old Panamax bulker was equal to 70% of the then price of a newbuilding (comparably this same percentage is now 46.6%). On the Aframax front the explanaon could be slightly dierent due to the fact that a 10 year old vessel was worth USD 20,5mill and faring USD 14,000/ day back in Nov 2011 and a replacement cost of USD 52,5mill, compared with a value of just under USD 17mill, TC of USD 14,000/day and newbuilding price of USD 48-49mill respecvely in today's market. Thus the answer possibly lies in the supply/demand landscape which for Afras stands most favourably, with the orderbook represenng 5% of the exisng eet which is by far the best rao in not just all the tanker but also the bulker segments. But stronger buyers appete might eventually be good news for owners/ sellers of same tonnage, as it would help keep prices more buoyant and even allow them to strengthening again at some point. Chartering (Wet: Soer- / Dry: Firm+ ) The Dry Bulk market looks like it nally caught a break as it remained on the green this week, with more substanal earnings than the week prior. Capes and Panamaxes were the main drivers of the index advancing, as the Atlanc basin nally managed to oer improved freight rates, aer an overall sluggish start to the year. The BDI closed today (15/01/2013) at 765 points, up by 3 points compared to Mondays levels (14/01/2013) and an increase of 31 points compared to the previous Tuesdays levels (08/01/2013). The tanker market looks like its sll looking to nd its foong aer a disappoinng start to the year. The BDTI Monday (14/01/2013), was at 637, 80 points down and the BCTI at 710, a decrease of 53 points compared to the previous Mondays levels (07/01/2013). Sale & Purchase (Wet: Stable- / Dry: Stable- ) Albeit fewer resales reported this week, acvity hasn't dropped but sll remains at admiedly low levels. On the Tankers side, we had the sale of the FORWARD PIONEER (107,081dwt-blt 05 Japan) which was reported sold to Saudi Arabian based buyers, Bakri Navigaon at the price of around $ 20.2m. While on the dry bulker side, we had the resale of the EVERAIM (68,591dwt-blt 94 Japan) which reportedly went for a price of $ 5.8m to South Korean buyers. Newbuilding (Wet: Stable- / Dry: Stable- ) It is surprising to have witnessed a strong week on the newbuilding front. One would expect for the sector to somehow quieten down, especially aer a very acve December. It looks like despite the negave senment in the shipping market and the connuous complaints for oversupply of tonnage in most market segments, owners haven't been shy in engaging in more new orders this week in both the wet and the dry sector. It is important to point out however that owners will usually order on the back of longterm me charters rather than hopeful senment that by the me of delivery freight rates will have picked up substanally. Either or one thing is sure, it is the demand side that needs to be boosted substanally before we witness any signicant increases in the levels charterers will oer as the supply of tonnage will connue to be fairly high. In terms of reported deals this week, HI Gold Ocean (S. Korean), placed an order of 4 VLCCs at compatriot shipbuilder Hyundai Samho for an impressive $100.0m each. Tankers are scheduled to be delivered between March and December in 2014 and these orders were placed on the back of long-term charters with Hyundai Glovis. Demolion (Wet: Firm+ / Dry: Firm+ ) Breakers of the globe unite! This looks like it will be your year! We are only two weeks into 2013 and the ever increasing appete for demo which we wrote about last week seems to be geng stronger and stronger. As always the Sub-Connent leads in bids for older vessels but it looks like China is not willing to be le far behind in the race, with prices oered from Chinese breakers touching 400$/ldt last week and further closing the gap between their bids and the market leaders. If prices hold at these levels throughout the year and without any signicant uctuaons we can certainly expect this to be the record demo year that everyone has been talking about. Prices for wet tonnages were at around 400-435$/ldt and dry units were seeing levels of about 390415$/ldt.

Wet Market
Spot Rates
Week 2 Vessel Routes WS $/day points 42 24 45 65 60 73 83 75 88 84 90 115 175 170 108 108 104 21,846 -4,407 27,937 18,855 12,396 19,936 11,952 10,168 15,174 7,567 13,025 15,377 22,042 26,405 14,735 13,031 10,251 Week 1 WS points 44 25 48 68 65 73 83 80 90 85 98 118 160 173 115 115 105 $/day 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 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

%
-5% -4% -6% -4% -8% 0% 0% -6% -3% -1% -8% -2% 9% -1% -7% -7% -1% $/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+12 mos - 6+6 mos -

- 'Ugale'

2007 - $ 14,000/day 2010 - $ 13,500/day

53,000dwt - Scorpio 46,000dwt - Navig8

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

- 'Pacific Marchiones'

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 2 21,500 27,000 17,500 22,000 14,500 16,000 14,500 15,250 14,000 14,750 13,000 14,000 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 % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.8% Diff 0 0 0 0 0 0 0 0 0 0 0 250 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 It seems as though 2013 has yet to bring any sign of opmism for VLCC owners, with freight rates connuing to slide further as the prominent posion lists have taken any possibility for improvement in freight levels. Demand may have improved compared to a week prior, especially in the MEG. Westbound voyages were generally holding o slightly beer, as a number of fresh inquiries emerged, while in the WAF things seemed to be taking a toll for the worse mainly due to the lack of support from the Suezmaxes. The Suezmax market closed of the week at considerably soer levels. The WAF suered from sluggish demand and diminishing open inquiries circulang the market. The Black Sea/Med was also much slower this week while the excessive amount of promptly available tonnage is unlikely to allow for any quick recovery over the next couple of days. Similar to the two larger size segments, the Afras were also suering from slower acvity and considerably swollen tonnage lists which keeping things depressed in the Black Sea/Med region. The North Sea/Balc took a bit of a toll this week as there seemed to be fewer inquiries circulang then what was available the week before.

Sale & Purchase In the Aframax sector segment this week, we had the sale of the FORWARD PIONEER (107,081dwt-blt 05 Japan), which was reported sold to Saudi Arabian based buyers, Bakri Navigaon at the price of around $ 20.2m. Also noteworthy was the en-bloc sale of the MR, SHOKO MARU (30,952dwt-blt 98 Japan), which was picked up by Middle Eastern buyers for a price of $ 8.8m.

Intermodal Research

15/01/2013

Dry Market
Baltic Indices
Week 2 11/01/2013 Index $/day
BDI BCI BPI BSI BHSI

Indicative Period Charters

% Point Diff 54 82 102 6 2 2012 Index 921 1,571 965 906 518 2011 Index 1,549 2,237 1,749 1,377 718
4,000
Index

Week 1 04/01/2013 Index $/day 706 1,285 670 739 446 $5,249 $5,300 $7,728 $6,619

- 8/12 mos - 'C Phoenix' - dely Nantong 20/25 Jan - 3/5 mos - 'Orient Lotus' - dely Tainjin spot

2012 176,000dwt - $ 10,250/day - Clearlake 2012 56,141dwt - $ 8,250/day - cnr

760 1,367 772 745 448 $6,213 $6,123 $7,791 $6,667

7.6% 6.4% 15.2% 0.8% 0.4%

Baltic Indices
5,000
BCI BPI BSI BHSI BDI

3,000 2,000 1,000 0

Period
$/day Capesize Week 2 170K 6mnt TC 12,000 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 11,750 14,000 10,000 8,625 9,250 9,750 9,250 10,250 8,250 8,000 8,750 7,250 7,750 9,000 Week 1 12,500 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 % -4% -2% 0% 16% 5% 0% 3% 0% 0% 3% 0% 0% 0% 0% 0% Diff -500 -250 0 1,375 375 0 250 0 0 250 0 0 0 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

The quest for global growth has been and will connue to be the main issue on an industry like shipping, which is in need of fundamental changes in the economies of developed markets, which in their turn will drag developing economies upwards. Both the U.S. and Japan have gied the markets with signs of more economic smulus enhancing signicantly commodity prices and having traders rush into buying more of the growth linked commodies to avoid facing higher levels in the near future. At the same me it looks like Europe is determined to do whatever it takes to drag itself out of the current crisis and it could be more the exhibited determinaon rather than any realized macro improvements that is providing a more opmisc tone as we have started sailing into 2013. Cape rates have had an upward movement in all main routes last week even with the cyclone in Australia making its presence more noceable and liming the acvity around South Pacic. The Panamax market has nally had a break, with freights in both basins going up substanally. Transatlanc xtures oered the most impressive rate increases, with boosted coal trading mainly responsible for the trend. Rates for Supras and Handies had another ash week, with a mixed picture across same basin routes. Overall it looks like the Pacic is sll unable to absorb the excess tonnage on the smaller market segments, while the Atlanc has proven somewhat more supporve especially for Supras.

Sale & Purchase

In the Panamax sector we had rumors of the sale of the EVERAIM (68,591dwt-blt 94 Japan), which reportedly went for a price of $ 5.8m to South Korean buyers. While also worth menoning is the sale of the Japanese built Handysize C. S. Victory (32,385dwt-blt 03 Japan) which is said to have been picked up for a price of about $ 10.1m by Russian buyers.

Intermodal Research

15/01/2013

Secondhand Sales
Tankers
Size
SUEZ

Name
SAMSUNG 1977

Dwt
158,000

Built

Yard

M/E
MAN-B&W

SS due

Hull
DH

Price
$ 56.0m

Buyers
US ba s ed (Principal Ma riti me) Sa udi Ara bi a n (Ba kri Nav.)

Comments

2013 SAMSUNG, S. Korea

AFRA

FORWARD PIONEER

107,081

2005

KOYO MIHARA, Ja pan

B&W

Jan-15

DH

$ 20.2m

AFRA

ATHINA M

96,001

1995 SAMSUNG, S. Korea

B&W

Feb-15

DH

$ 8.5m

Middle Ea s tern

MR

MERIOM IRIS

50,319

2008

Zha o, China

MAN-B&W

Sep-13

DH

$ 21.0m

MR

MERIOM GLORY

50,319

2008

Zha o, China

MAN-B&W

Dec-13

DH

$ 21.0m

Dutch (Tra figura )

MR

MERIOM TOPAZ

50,319

2009

Zha o, China

MAN-B&W Ma r-14

DH

$ 22.0m ba s is SS pa s s ed, zi nc coa ted, metha nol carri er Epoxy

MR

SHOKO MARU

30,952

1998

MINAMI-NIPPON, Ja pan

Mits ubis hi

Jan-13

DH

$ 8.8m

Middle Ea s tern

PROD/C HEM PROD/C HEM PROD/C HEM

MAR PATRICIA

17,787

1998

UNV, Spai n

Warts il a

Dec-13

DH

$ 7.6m

Indones ia n

OW COPENHAGEN

3,548

2006

TURKTER, Turkey

MAN-B&W

Sep-16

DH

undis cl os ed Dani s h (OW Ta nkers )

Epoxy

OW AALBORG

3,522

2005

YARDIMCI, Turkey

MAN-B&W

Dec-15

DH

undis cl os ed

Epoxy Phen.

Gas/LPG/LNG
Name
GASCHEM BERGEN

Dwt
9,490

Built

Yard

M/E
MAN

SS due
Dec-16

Cbm
8,239

Price
$ 13.0m

Buyers
Mi ddl e Ea s tern

Comments
ethyl ene

1991 BRAND, Germa ny

MORNING AIR

5,202

2010 NAKATANI, Ja pa n

MAN-B&W

Ja n-15

5,020

$ 19.0m

Chines e

pres s uri zed

Offshore
Type Name
STX Mega Trend

Dwt
4,700

Built

Yard

M/E
MAN

Bhp

SS due

Price
undi s cl os ed

Buyers

Comments

2013 STX OSV, Roma ni a

STX Neo

4,700

2013 STX OSV, Roma ni a

MAN-B&W

undi s cl os ed

US bas ed (Ti dewa ter)

STX Leader

4,700

2012 STX OSV, Roma ni a

MAN

undi s cl os ed

Intermodal Research

15/01/2013

Secondhand Sales
Bulk Carriers
Size
PMAX

Name
EVERAIM

Dwt
68,591

Built
1994

Yard
SASEBO , Ja pa n

M/E
B&W

SS due
Nov-14

Gear

Price
$ 5.8m

Buyers
S. Korea n

Comments

HANDY

C. S. VICTORY

32,385

2003

KANDA KAWAJIRI, Mi ts ubi s hi Ja pa n

Ma r-13

4 X 30,5t CRANES 4 X 30,5t CRANES

$ 10.1m

Rus s i a n

SS/DD due

HANDY

DINA

28,467

1992

IMABARI, Ja pa n

B&W

Jul -16

$ 4.2m

Turki s h

del y W. Afri ca

HANDY

POMORZE ZACHODNIE GLOBAL PRESTIGE

26,696

1985

ALIANZA, Argenti na

B&W

Ma y-15

$ 2.0m

undi s cl os ed

HANDY

24,132

1998

SAIKI, Ja pa n

Mi ts ubi s hi

Ja n-13

4 X 30t CRANES

$ 5.5m

undi s cl os ed

MPP/General Cargo
Name
KARAVI

Dwt
6,609

Built
1986

Yard
TAIHEI HASHIHAMA, Ja pan NORDSOVAERFTET , Denma rk

M/E
Mits ubis hi

SS due
Feb-16

Gear
4 X 15t DERRICKS 2 X 50t CRANES

Price
$ 0.9m

Buyers
undi s cl osed

Comments

THOR LIGHT

5,392

1993

Ma K

Dec-13

$ 2.2m

Indones ia n

Containers
Size Name Teu 1,645 Built Yard M/E B&W SS due Gear 2X40t CRS,1X10 t CRS 2X40t CRS 2 X 40t CRS Price
$ 2.8m

Buyers Greek (Victoria Oceanway) undisclosed

Comments DD due bank sale, incl. financing

FEEDER HANSA CATALINA HANSA LAUENBURG CS STAR

1997 HANJIN, S. Korea GUANGZHOU, China ORSKOV CHRISTENSENS, Denmark SIETAS KG, Germany

FEEDER

1,740

2006

MAN

Jan-16

$ 13.5m

FEEDER

1,139

1993

MaK

Apr-13

$ 2.1m

Turkish (Arkas)

FEEDER

ELECTRON

658

1998

MAN

Oct-13

undi s cl os ed

Lebanese

Intermodal Research

15/01/2013

Demolion Market
Indicative Demolition Prices ($/ldt)
Markets Bangladesh India Pakistan China Bangladesh India Pakistan China Wet Week 2 435 435 425 400 415 415 400 390 Week 1 425 415 415 390 400 400 390 375 % 2.4% 4.8% 2.4% 2.6% 3.8% 3.8% 2.6% 4.0% 2012 2011 2010 440 445 444 384 414 419 416 365 523 511 504 451 498 484 477 432 422 427 425 383 375 394 388 364
Breakers of the globe unite! This looks like it will be your year! We are only two weeks into 2013 and the ever increasing appete for demo which we wrote about last week seems to be geng stronger and stronger. As always the Sub-Connent leads in bids for older vessels but it looks like China is not willing to be le far behind in the race, with prices oered from Chinese breakers touching 400$/ldt last week and further closing the gap between their bids and the market leaders. If prices hold at these levels throughout the year and without any signicant uctuaons we can certainly expect this to be the record demo year that everyone has been talking about. Prices for wet tonnages were at around 400-435$/ldt and dry units were seeing levels of about 390-415$/ldt. Most notable this price this week was that paid for the Ro-Ro SAUDI ABHA (42,600dwt-18,665ldt-blt 83), which received a very rm price of $ 460/ 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 RUBIN CRANE DUHALLOW LIBERTY SPIRIT LANKA SAUDI ABHA AL QAWIYYU ELVER COURIER TANZANITE FAIRWIND HARBEL CUTLASS Size Ldt Built 1994 1993 11,132 13,746 18,665 7,604 7,403 1986 1985 1983 1984 1985 1995 1984 5,207 5,326 1985 1980 Yard NAMURA IMARI, Japan Type BULKER $/ldt
$ 447/Ldt $ 415/Ldt $ 437/Ldt

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

Comments as is China, incl. 1,700t bunkers

154,310 20,000 122,774 64,152 49,999 42,600 37,636 32,431 20,140 17,247 12,816 11,733

DAEWOO , S. Korea BULKER HYUNDAI, S. Korea BULKER

HYUNDAI, S. Korea TANKER undi s cl os ed KOCKUMS, Sweden IHI - AIOI, Japan RORO BULKER
$ 460/Ldt $ 426/Ldt $ 419/Ldt $ 452/Ldt $ 306/Ldt $ 440/Ldt $ 432/Ldt

as is Mumbai

USUKI IRON, Japan BULKER KVAERNER CONT WARNOW, Germany IHI - TOKYO, Japan SIETAS, Germany KOYO MIHARA, Japan GC GC GC

Intermodal Research

15/01/2013

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 2 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 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 % 0.0% 0.0% 0.0% 0.0% 0.0% 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
It is surprising to have witnessed a strong week on the newbuilding front. One would expect for the sector to somehow quieten down, especially aer a very acve December. It looks like despite the negave senment in the shipping market and the connuous complaints for oversupply of tonnage in most market segments, owners haven't been shy in engaging in more new orders this week in both the wet and the dry sector. It is important to point out however that owners will usually order on the back of longterm me charters rather than hopeful senment that by the me of delivery freight rates will have picked up substanally. Either or one thing is sure, it is the demand side that needs to be boosted substanally before we witness any signicant increases in the levels charterers will oer as the supply of tonnage will connue to be fairly high. Most notable this week, HI Gold Ocean (S. Korean), placed an order of 4 VLCCs at compatriot shipbuilder Hyundai Samho for an impressive $100.0m each. Tankers are scheduled to be delivered between March and December in 2014 and these orders were placed on the back of long-term charters with Hyundai Glovis.

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 4 3+3 3 Type Tanker Tanker Tanker Size 320,000 dwt >200,000 dwt 5,700 dwt Yard Hyundai Samho, S. Korea Jiangnan Changxing, China Tersan, Turkey 2014-2015 Delivery 03-12/2014 Buyer S. Korean (HI Gold OceanKukje) Chinese (China Merchants Energy Shipping) Germany (Gefo Gesellschaft) Greek (Golden Union) Danish (Ultrabulk) 2014 2014 German (Oldendorff) Canadian (CanForNav) Price $ 100.0m $ 85.0m undisclosed Chem. Comments long-term charters with Hyundai Glovis

1 1 2+2 4+2

Bulker Bulker Bulker Bulker

82,000 dwt 82,000 dwt 61,000 dwt 36,000 dwt

Cosco, China Tsuneishi, Japan Nantong Cosco, China Yangfan, China

undisclosed undisclosed $ 24.0m undisclosed Eco Eco

4 2

Gas Gas

170,000 cbm 170,000 cbm

Samsung, Japan Hyundai H.I., S. Korea

2015-2016 2015-2016

Nigerian (Bonny Gas) Nigerian (Bonny Gas)

undisclosed undisclosed

LNG LNG

Intermodal Research

15/01/2013

Commodies & Ship Finance

Market Data
11-Jan-13 10year US Bond 1.880 S&P 500 1,472.05 Nasdaq 3,125.63 Dow Jones 13,488.43 FTSE 100 6,121.58 FTSE All-Share UK 3,209.56 CAC40 3,706.02 Xetra Dax 7,715.53 Nikkei 10,801.57 Hang Seng 23,264.07 Dow Jones 234.40 $/ 1.33 $/ 1.61 / 0.82 /$ 89.09 $ / Au$ 1.06 $ / NoK 0.18 $ / SFr 0.91 Yuan / $ 6.23 Won / $ 1,056.97 $ INDEX 81.90 10-Jan-13 1.890 1,472.12 3,121.76 13,471.22 6,101.51 3,198.28 3,703.12 7,708.47 10,652.64 23,354.31 235.82 1.31 1.61 0.82 88.25 1.06 0.18 0.92 6.24 1,059.51 81.90 9-Jan-13 1.850 1,461.02 3,105.81 13,390.51 6,098.65 3,195.92 3,717.45 7,720.47 10,578.57 23,218.47 234.42 1.31 1.60 0.81 87.62 1.05 0.18 0.93 6.24 1,061.53 82.30 8-Jan-13 1.870 1,457.15 3,091.81 13,328.85 6,053.63 3,173.14 3,705.88 7,695.83 10,508.06 23,111.19 234.29 1.31 1.61 0.81 87.43 1.05 0.18 0.92 6.24 1,063.05 82.00 7-Jan-13 1.900 1,461.89 3,098.81 13,384.29 6,064.58 3,180.95 3,704.64 7,732.66 10,599.01 23,329.75 237.03 1.30 1.61 0.81 87.84 1.05 0.18 0.93 6.24 1,063.26 82.10 W-O-W Change % -1.6% 0.4% 0.8% 0.4% 0.5% 0.6% -0.6% -0.8% 1.1% -0.3% -0.9% 2.0% 0.5% 1.4% 1.1% 1.1% 1.3% -1.4% -0.3% -0.9% -0.5%
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
11-Jan-13 Rotterdam Houston Singapore Rotterdam Houston Singapore Rotterdam Houston Singapore 959.0 1,016.0 943.0 618.0 633.0 644.0 650.0 703.5 639.0 MDO 4-Jan-13 930.0 1,010.0 927.0 595.0 622.5 622.0 625.0 692.5 626.0 W-O-W Change % 3.1% 0.6% 1.7% 3.9% 1.7% 3.5% 4.0% 1.6% 2.1%

Currencies

180cst

380cst

Finance News

Shipowners become zombie rms

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. 11-Jan-13 Exchange NYSE NYSE USD USD 6.31 3.38 5.43 7.69 14.70 3.44 8.47 2.12 2.26 1.05 0.73 0.34 3.88 2.51 39.00 16.00 2.55 3.72 14.10 1.10 3.93 4.02 1.49 7.39 9.05 4.11 1.30 04-Jan-13 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 W-O-W Change % 4.3% 3.4% 11.7% 7.1% 0.0% 15.4% 1.2% -2.3% 0.0% 5.0% 19.7% 240.0% -6.1% 29.4% 1.3% -3.0% 1.6% -0.8% 1.1% 52.8% 31.0% 3.1% -8.6% 6.5% 9.4% 1.0% 23.8% Max 2wk 6.31 3.42 5.49 7.69 14.93 3.52 8.61 2.20 2.28 1.11 0.73 0.42 4.12 2.51 39.00 16.85 2.63 3.78 14.40 1.87 4.42 4.14 1.66 7.39 9.24 4.31 1.30 Min 2wk 5.96 3.25 4.86 7.38 14.70 3.11 8.32 2.12 2.21 1.04 0.59 0.22 3.88 2.00 37.10 15.35 2.50 3.72 13.93 0.70 3.54 3.99 1.35 6.95 8.47 4.11 1.11

GROWING numbers of shipping companies have fallen into so-called zombie status, able to meet their interest payments and other costs but unable to pay down borrowings, a shipping accountant has warned. Jeremy Willmont, a partner with the restructuring pracce of Moore Stephens, said that although it was impossible to esmate the numbers, the tag applied to companies operang hundreds of ships.Frankly, any shipping company that bought a vessel before prices collapsed with signicant borrowing is likely to be in this situaon, he warned. Research indicates that as many as one in 10 UK rms can be designated zombie companies. Mr Willmont said the typical non-shipping zombie is a small business with perhaps a few dozen employees, a minimal asset base and bank borrowings guaranteed by the directors.If such a company goes under, HM Revenue and Customs ends up 2m-3m ($3.2m-$4.8m) out of pocket on lost value-added tax and pay-as-you-earn contribuons. In contrast, single-ship shipping companies may have no direct employees and colossal debt. Both the owner and the bank appreciate that the bank will never get repaid. But if the bank moves to foreclose, it may kiss goodbye to, say, $30m.The vessels are not worth as much as the bank lending and, in the foreseeable future, you just cant see that situaon being reversed, Mr Willmont said. There is sll signicant oversupply and, unl that changes, you cant see there being much in the way of change in asset prices. (Lloyds List)

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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