Market coMMentary

capesize

It was a quiet start to the week for the Asia Pacific and Atlantic Capesize markets Monday, with industry sources reporting a lack of fresh cargoes and fixtures. Since China has just returned from its holiday, many are still evaluating the market, but it seems like some owners who want to fix today are willing to fix lower than last done, said a Singapore-based source with a ship operating firm. A ship broker source said the softer sentiment was exacerbated by the lackluster market. A chartering source from a mining company said: Seems like the sentiment is weaker and the market could well be on its way towards a correction if it continues at this pace. While the source was pessimistic, he said the market had to wait for the Chinese buyers to fully return to the market with their requirements. On the Western Australia-Qingdao route, only one iron ore major was heard; Rio Tinto seeking a Capesize vessel from Dampier to Qingdao for October 24-26 laycan, bidding in the high $7s/wmt against offers seen in the low $8s/wmt. The

today in dry Freight WireTime charter equivalents, October 9 ($/day) 2Capesize, October 9 ($/mt) 2Panamax: Asia-Pacific, October 9 ($/mt) 3Panamax: Atlantic, October 9 ($/mt) 3Supramax, October 9 ($/mt) 4Handymax, October 9 ($/mt) 6Handysize, October 9 ($/mt) 6Freight heards 6Latest market fixtures 7Markets News 7Platts container assessments, October 9 ($/FEU*) 9

key routes, october 9 ($/mt)route* Load port discharge port cargo size (kt) Platts symbol close change

capesize

Iron OrePC5 Port Hedland, Northwest Australia Qingdao, North China 170 IOFAC00 8.05 -0.05PC8 Saldanha Bay, South Africa Qingdao, North China 170 IOFSA00 14.10 -0.05PC3 Tubarao, South Brazil Qingdao, North China 170 IOFBC00 18.35 -0.15PC2 Tubarao, South Brazil Rotterdam, Netherlands 170 IOTBE00 9.10 0.00

CoalPC1 Hay Point, Northeast Australia Qingdao, North China 160 CDANC00 9.60 -0.05PC7 Puerto Bolivar, Colombia Rotterdam, Netherlands 150 CIBCR00 9.50 0.00

Panamax

CoalPP6 South Kalimantan, Indonesia Krishnapatnam, East coast India 75 CIIEI00 8.40 +0.40PP8 Hay Point, Northeast Australia Paradip, East coast India 75 CDBFAI0 14.70 +0.70PP7 Hay Point, Northeast Australia Qingdao, North China 75 CDBFA00 13.00 +0.60PP2 Richards Bay, South Africa Mundra, West coast India 75 CSAKL00 12.40 +0.10

AluminaPP22 Bunbury/Kwinana, Southwest Australia Jebel Ali, UAE 60 MMABJ00 15.50 +0.50

supramax

ScrapPS15 New Jersey, US East Coast Aliaga, Turkey 40 MSJAT00 21.50 0.00

handysize

AluminaPH6 Bunbury/Kwinana, Southwest Australia Lianyungang, North China 30 MMACH00 18.90 +0.05

ScrapPH20 Rotterdam, Netherlands Aliaga, Turkey 25 MSRAT00 19.75 0.00

*PC=Platts Capesize PP=Platts Panamax PS=Platts Supramax PH=Platts Handysize

PCTCE19: PorT HEdland-Qingdao TCE ($/day)

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Volume 4 / issue 193 / october 9, 2017

dry Freight Wire

www.platts.com shiPPingwww.twitter.com/Plattsshipping

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subscriber notePlatts proposes to launch new n asia box rates, amend uk cont rates Following market feedback, S&P Global Platts proposes to launch four new north Asia box rate assessments and to amend two existing UK Continent assessments, with effect from December 1, 2017. Platts has received market feedback that box rates for routes commencing, or ending, in the UK and heading to north Asia differ observably from those commencing, or ending, in north Europe. Platts therefore proposes to amend its existing UK Continent to North Asia and North Asia to UK Continent assessments to reflect only routes commencing or ending in north Europe and to rename

DRY FREIGHT WIRE OcTObER 9, 2017

2 2017 S&P Global Platts, a division of S&P Global. All rights reserved.

caPesize, october 9 ($/mt)route Load port discharge port cargo size (kt) Platts symbol close change

iron ore

PC5 Port Hedland, Northwest Australia Qingdao, North China 170 IOFAC00 8.05 -0.05PC8 Saldanha Bay, South Africa Qingdao, North China 170 IOFSA00 14.10 -0.05PC3 Tubarao, South Brazil Qingdao, North China 170 IOFBC00 18.35 -0.15

PC3n Differential from basis Qingdao to Caofeidian, Tianjin, Xingang, North China 170 IOFNC00 0.25 0.00PC3e Differential from basis Qingdao to Beilun, East China 170 IOFEC00 -0.30 0.00PC3s Differential from basis Qingdao to Zhanjiang, Fangcheng, South China 170 IOFSC00 -0.45 0.00

PC2 Tubarao, South Brazil Rotterdam, Netherlands 170 IOTBE00 9.10 0.00PC13 Yuzhny, Ukraine Qingdao, North China 160 IOBSC00 18.15 -0.10

coal

PC1 Hay Point, Northeast Australia Qingdao, North China 160 CDANC00 9.60 -0.05PC19 Hay Point, Northeast Australia Rotterdam, Netherlands 160 CDARN00 13.00 0.00PC6 Gladstone, Northeast Australia Kashima, Japan 150 CIGAJ00 11.10 -0.05PC11 Newcastle, Southeast Australia Pohang, South Korea 130 CINAK00 11.45 -0.05PC4 Richards Bay, South Africa Rotterdam, Netherlands 150 CIRBN00 8.50 0.00PC9 Richards Bay, South Africa Mundra, West coast India 150 CIRWI00 10.70 -0.25PC10 Richards Bay, South Africa Krishnapatnam, East coast India 150 CIREI00 11.00 -0.25PC17 Richards Bay, South Africa Qingdao, North China 160 CIQNC00 13.85 -0.05

PC17s Differential from basis Qingdao to Fangcheng, South China 160 CIFSC00 -0.45 0.00

PC12 Hampton Roads, US East Coast Qingdao, North China 140 CIVAC00 26.05 -0.15PC7 Puerto Bolivar, Colombia Rotterdam, Netherlands 150 CIBCR00 9.50 0.00PC16 Vancouver, West coast Canada Qingdao, North China 160 CDWCC00 11.60 -0.05PC18 Roberts Bank, West coast Canada Kashima, Japan 150 CDRKJ00 11.45 -0.05

TimE CHarTEr EQuivalEnTs, oCTobEr 9 ($/day)route Vessel delivery Load port discharge port Platts symbol close changecapesize

PCTCE19 China-Japan range Port Hedland, Western Australia Qingdao, China MRYAA00 20,962 +104PCTCE20 China-Japan range Saldanha Bay, South Africa Qingdao, China MRYBA00 21,685 +124PCTCE21A China-Japan range Tubarao, Brazil Qingdao, China MRYCA00 20,139 -28PCTCE21B ARA range/passing Passero Tubarao, Brazil Qingdao, China MRYDA00 31,040 -129PCTCE23 ARA range/passing Passero Puerto Bolivar, Colombia Rotterdam, Netherlands CRYAA00 20,001 +142Panamax

PPTCE42 South China South Kalimantan, Indonesia Paradip, India CRYBA00 13,245 +1201PPTCE43 South China South Kalimantan, Indonesia Mundra, India CRYCA00 13,276 +1151PPTCE48 South China East Kalimantan, Indonesia Guangzhou CRYAC00 13,254 +1439PPTCE44 East coast India Richards Bay, South Africa Paradip, India CRYDA00 12,480 +93PPTCE45 East coast India Richards Bay, South Africa Mundra, India CRYEA00 12,503 +105PPTCE46 North China Hay Point, Australia Paradip, India MRYEA00 13,721 +1350PPTCE47 North China Hay Point, Australia Qingdao, China MRYFA00 13,675 +1425supramax

PSTCE17 Singapore South Kalimantan, Indonesia Paradip, India CRYFA00 12,694 +218PSTCE18 Singapore South Kalimantan, Indonesia Navlakhi, India CRYGA00 12,588 +212PSTCE22 South China East Kalimantan, Indonesia Guangzhou CRYAB00 10,784 +298PSTCE19 East coast India Richards Bay, South Africa Paradip, India CRYHA00 10,356 +50PSTCE20 East coast India Richards Bay, South Africa Navlakhi, India CRYIA00 10,334 +52PSTCE21 West coast India Mina Saqr, UAE Paradip, India MRYGA00 12,803 +172

freight rate for a Capesize vessel to move iron ore from Port Hedland to Qingdao was assessed at $8.05/wmt Monday, down 5 cents/wmt from last Friday. Among other cargoes heard in the Asia Pacific, Cara Shipping was heard seeking a vessel to carry 130,000 mt (plus/minus 10%) of coal from Newcastle to Lanshan for October 26-November 4 laycan. ArcelorMittal was heard seeking a vessel to carry 126,000 mt (plus/minus 10%) of coal from DBCT to Rotterdam and Dunkirk East for October 19-November 2 laycan. Kepco was heard seeking a vessel to carry 130,000 mt (plus/minus 10%) of coal from Newcastle to Boryeong for November 5-14 laycan in a tender closing October 10. Posco was heard seeking a Capesize vessel from Hay Point to Kwangyang for October 25-November 3 laycan in a tender closing October 10. On the fronthaul, Ferrexpo was heard seeking a Capesize vessel from Yuzhny to Qingdao for October 20-23 laycan. The freight rate for a Capesize vessel to move iron ore from Tubarao to Qingdao was assessed at $18.35/wmt, down 15 cents/wmt from last Friday. From South Africa, no fresh cargoes or fixtures were heard. The freight rate for a Capesize vessel to move iron ore to Qingdao loading from Saldanha Bay was assessed at $14.10/wmt Monday, down 5 cents/wmt from last Friday.

Panamax: asia-Pacific

Panamax freight rates continued to rise Monday, extending an uptick that started mid-last week. Offers from owners on time charter basis have increased considerably compared to the start of last week, said a ship-operator source. On the Indonesia-India coal route, a 70,000 mt (plus/minus 10%) coal cargo from Taboneo to Krishnapatnam for loading before October 15 was heard fixed in the low $8s/mt, but no details were confirmed. IMR was heard seeking a Panamax for a coal cargo from Taboneo to Kandla for loading October 15 onwards. OPG Power was heard with a 80,000 mt (plus/minus 10%) coal cargo from Adang Bay to Ennore, Kandla or Mundra for October 22-31 laycan. The freight rate to move 75,000 mt(plus/minus 10%) of thermal coal from Banjarmasin in

DRY FREIGHT WIRE OcTObER 9, 2017

3 2017 S&P Global Platts, a division of S&P Global. All rights reserved.

Indonesias South Kalimantan province to Krishnapatnam on the east coast of India was assessed Monday at $8.40/mt and to Mundra on the west coast at $9.30/mt, both up 40 cents/mt from last Friday. The freight rate to move 65,000 mt (plus/minus 10%) of thermal coal from Samarinda in East Kalimantan