6TH LONDON SHIP FINANCE FORUM

MARKET EQUILIBRIUM

Disclaimer

KMARIN

Market Structure & Shipping Funds

Shipbuilding Yards

Financial Banks, Investors

Ship Owners

Shipping, Cargo Companies

Norwegian KS German KG Korean KG & The Hedge Funds &

Japanese, Chinese Leasing Cos

KMARIN

Mil.

Oversupplied Vessels

Supply > Demand

The Growth By Economic Boom

The Global Financial Crisis

Speculative Orders

The Second Crisis

MM London 2015

Transition of Shipping Market

Overbook by Shipowners

[Source: Clarkson Research]

Rank Company No. M.CGT Ratio

1 A 111 2.7 2.37% 2 B 77 2.4 2.11% 3 C 83 2.3 2.02% 4 D 74 1.9 1.67% 5 E 21 1.6 1.41%

6 F 26 1.5 1.32%

7 G 32 1.5 1.32%

8 H 32 1.4 1.23%

9 I 47 1.4 1.23%

10 J 57 1.4 1.23%

11 K 34 1.2 1.06%

Others 4,647 94.4 83.03%

Global Total 5,241 113.7 100.00%

World Tonnage on Order, 2000-2014

[Source: UNCTAD, Clarkson Research] (Thousands of DWT)

Aggressive Ship Ordering

Overproduction

Baltic Dry Index

11,793

647 750

Now

666

[Source : The Baltic Exchange]

(Supply = Demand)

Price

Quantity

Supply Demand

Market Equilibrium by Conscious Tonnage Providers

What shall we do to prevent the third crisis?

Leading Tonnage Provider comes LONDON for Market Rebalancing