Broker’s insight by George Lazaridis

Despite the shipping markets s�ll being in turmoil, while at the same �me

poli�cal instability remains in Greece, to everyone’s surprise, Greek shipown-

ers con�nue to hold the top posi�on amongst buyers in the secondhand SnP

market. Since January they have managed to pick up at least 70 vessels

spending over $ 1.2 billion to do so. This is a large difference when compared

to the Chinese which hold second place amongst buyers’ na�onality, with

only 42 vessels reported purchased so far and having spent less than half the

amount of that spent by the Greeks. This is even more remarkable when one

considers the general lack of financing observed in shipping, let alone that

available in the now illiquid Greek market.

All this points to the fact that Greeks con�nue to hold a firm belief in the

shipping markets, as many of have an extensive experience of the market

cycles and are used to naviga�ng through such troubled market condi�ons.

This does not mean that all is well and that there haven’t been or aren’t go-

ing to be casual�es along the way. A/er all these cycles provide a cleansing

opportunity, removing mismanaged companies and owners while at the

same �me pushing market players to remain compe��ve and efficient in the

service they provide.

Furthermore and despite the poor charter rates and subsequently the earn-

ings that are present in most of the shipping sectors, a plethora of invest-

ment opportuni�es in the shipping industry are s�ll available for shipowners.

This is all the more true now that prices have dropped significantly from the

comparably high levels of last year and at their current levels, seem to more

accurately reflect the level of earnings. All this allows for a more viable in-

vestment return on any secondhand purchase. Yet the trouble s�ll remains in

terms of financing. Due to the overall absence of ship finance, in the majority

of cases, shipowners must rely on their own cash reserves to support any

new investment decisions. This inevitably has le/ most of the shipowners

who were more conserva�ve in their past investment choices and entered

the crisis with limited debt exposure, at a great advantage. These owners

have not only managed to raise significant cash reserves from their debt free

ships, but have also kept much be5er �es with their bankers which are now

more than happy to provide addi�onal support and financial resources.

At the same �me, as bankers start to regain confidence in shipping invest-

ments and have finished restructuring most of their bad “shipping debt”, we

will likely see them take a more ac�ve role in the industry and once again

open their doors to new customers. Till that point investment opportuni�es

will inevitably be in the reach of the few.

Chartering (Wet: Stable- / Dry: Stable- )

Despite the improvement in the Capesize sector this week, the dry bulk

market closed the week in the red. The BDI closed today (15/05/2012)

at 1,132 points, down by 2 points compared to Monday (14/05/2012)

and a decrease of 20 points compared to the previous Tuesday’s levels

(08/05/2012). The tanker market con�nues to show a lot of uncertainty

and lack of stability. Things so/ened overall in the tanker market, as

rates dropped in most of the crude oil and product tanker market seg-

ments. The BDTI Thursday (15/05/2012), was at 755, 12 points down

and the BCTI at 611, a decrease of 8 points compared to the previous

Monday’s levels (07/05/2012).

Sale & Purchase (Wet: Stable- / Dry: Stable- )

We con�nued to see a good level of ac�vity this week, despite the fact

that prices have remained fairly stable these past couple of weeks. On

the Tankers side, we saw the sale of the two ShinaSB MR resales

(45,000dwt-blt 12 S. Korea) which were reported sold to European buy-

ers for a price of around $ 37.0-38.0m each basis prompt delivery. While

on the dry bulker of interest was the sale of the SPP built Kamsarmax

resale “SPP Tongyeong H1054” (82,000dwt-blt 12 S. Korea) which was

reported sold at a very compe��ve price of around $ 27.0m.

Newbuilding (Wet: Stable- / Dry: Stable- )

Things have improved considerably over the past week in the newbuild-

ing market. Owners seem to have increased interest in placing new or-

ders hoping to benefit from the low price levels despite the fact that

they are s�ll significantly higher than the rock bo5om levels achieved in

2002. This is mainly due to the fact that as shipbuilding costs have in-

creased significantly over the past couple of years, many believe it is

unlikely that we will be able to see significantly lower offered prices

than those seen in the past. At the same �me most are more op�mis�c

with regards to market condi�ons in 2013 and 2014 were most of these

new orders are scheduled for delivery. This however could end up being

misplaced op�mism if too many people take this stance and eventually

cause the orderbook to remain at such high levels. In terms of reported

deals this week, most notable was the reported order placed by the

joint venture between Ceres and JP Morgan for four firm plus four op-

�onal MR tankers (51,000dwt) at S. Korea’s SPP Shipyard for a reported

price of $ 33.5m each against a 5 year �mecharter to Valero at a very

firm rate of $ 17,000/day.

Demoli&on (Wet: So'er- / Dry: So'er- )

The recent poor sen�ment noted in the market has started to take its

toll, with offered price levels star�ng to be5er reflect the prevailing

market condi�ons. With the volume of offered tonnage s�ll remaining

fairly high, things are expected to con�nue to be depressed, while at the

same �me poor steel prices are unlikely to provide any support. Enter-

ing into the monsoon season is not going to help things either, as demo

buyers are expected to slow down their ac�vity and wait to go through

much of the already purchased tonnage first before showing keen inter-

est for further purchases. Prices were considerably so/er this week,

with wet tonnages dropping to levels of around 415-475$/ldt and dry

units to about 390-450$/ldt.

Weekly Market Report

Week 19|Tuesday 15th May 2012

2012 UNITS % OUTLAY ($) % DWT %

GREECE 70 16.2% $1,262.98m 27.8% 4,972,323 28.0%

CHINA 42 9.7% $412.44m 9.1% 2,208,876 12.4%

INDONESIA 19 4.4% $149.75m 3.3% 535,682 3.0%

SINGAPORE 17 3.9% $267.95m 5.9% 840,816 4.7%

TURKEY 12 2.8% $88.84m 2.0% 306,044 1.7%

ALL OTHER 271 62.9% $2,365.98m 52.0% 8,879,939 50.0%

TOTAL 431 100.0% $4,547.93m 100.0% 17,743,680 100.0%

Buyer Nationality Statistics

© Intermodal Research 15/05/2012 2

6080

100120140160180200220240260

WS p

oin

ts

CLEAN - WS RATESTC2 TC4 TC6 TC1

20

40

60

80

100

120

140

160

WS p

oin

ts

DIRTY - WS RATESTD3 TD5 TD8 TD4

May-12 Apr-12 ±% 2012 2011 2010

300KT DH 65.0 64.5 0.8% 64.3 77.6 87.2

150KT DH 45.0 44.9 0.3% 46.1 54.4 62.6

105KT DH 30.0 30.0 0.0% 33.2 39.1 44.7

70KT DH 26.0 26.0 0.0% 28.5 35.2 38.8

45KT DH 26.0 26.0 0.0% 25.8 28.4 26.5

Aframax

Panamax

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Week 19 Week 18 ±% Diff 2012 2011

300k 1yr TC 23,500 23,500 0.0% 0 21,250 25,197

300k 3yr TC 29,000 29,000 0.0% 0 26,976 31,681

150k 1yr TC 17,500 17,500 0.0% 0 16,671 19,837

150k 3yr TC 22,000 22,000 0.0% 0 20,516 23,830

105k 1yr TC 14,250 14,250 0.0% 0 13,987 15,707

105k 3yr TC 16,750 16,750 0.0% 0 16,253 18,335

70k 1yr TC 13,000 13,000 0.0% 0 13,092 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,371 16,263

45k 1yr TC 14,500 14,500 0.0% 0 14,421 13,918

45k 3yr TC 15,250 15,250 0.0% 0 14,897 14,738

36k 1yr TC 13,000 13,000 0.0% 0 12,553 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,253 13,412

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

2012 2011

WS

points$/day

WS

points$/day $/day $/day

265k AG-JAPAN 58 37,951 58 35,344 0% 34,498 18,217

280k AG-USG 40 15,344 40 12,770 0% 7,452 2,504

260k WAF-USG 63 45,993 63 42,943 0% 43,623 25,714

130k MED-MED 88 34,077 80 25,262 9% 28,924 25,125

130k WAF-USAC 78 18,814 68 9,311 15% 17,435 13,373

130k AG-CHINA 80 22,964 78 19,231 3% 22,514 14,815

80k AG-EAST 95 12,417 98 12,127 -3% 13,430 12,726

80k MED-MED 85 12,056 93 14,474 -8% 14,821 13,577

80k UKC-UKC 95 20,268 98 21,185 -3% 19,617 18,604

70k CARIBS-USG 128 21,431 108 11,414 19% 13,830 8,240

75k AG-JAPAN 88 5,508 95 7,333 -8% 4,076 10,467

55k AG-JAPAN 120 11,183 125 11,472 -4% 4,903 7,768

37K UKC-USAC 140 9,691 140 8,860 0% 11,364 11,022

30K MED-MED 138 14,219 138 13,604 0% 17,278 18,458

55K UKC-USG 140 21,958 140 20,462 0% 14,908 11,266

55K MED-USG 140 19,985 140 18,330 0% 12,654 9,676

50k CARIBS-USAC 143 18,021 143 16,830 0% 13,680 10,700

Spot Rates

Vessel Routes

Week 19 Week 18

±%

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Chartering

Despite worldscale rates managing to stay on par this week with those not-

ed one week prior, VLCC owners were able to obtain a higher TC equivalent

rate thanks to dropping bunker prices leaving them with slightly increased

earnings this week. However with much of May covered now, we could

poten�ally see another downward swing if posi�on lists rise. At the mo-

ment ac�vity is expected to con�nue firm likely helping sustain current

levels a bit longer.

A breeze of posi�ve sen�ment swept through the Suezmax sector this week

helping boost rates across the board. Significant improvements were noted

in rates from WAF though rates are s�ll riding considerably lower than

those seen in the Black Sea/Med region. Increased ac�vity in the Black Sea/

Med region and �ght tonnage lists helped boost rates further from their

previous weeks levels. However, things are expected to be slightly so/er in

the next couple of days as ac�vity starts to slow down.

Things were not as posi�ve in the Aframax market, with a drop in rates

noted in the Black Sea/Med and North Sea/Bal�c regions. Few fresh inquir-

ies were noted while there was a significant amount of open vessels availa-

ble for fixing in both regions. The Caribs seemed to be holding off be5er

with rates witnessing a considerable rise compared to what was seen one

week prior.

Sale & Purchase

Of interest this week was the sale of the two ShinaSB MR resales

(45,000dwt-blt 12 S. Korea) which were reported sold to European buyers

for a price of around $ 37.0-38.0m each basis prompt delivery.

In the smaller product/chemical tankers range, we had the sale of the of

the Spanish built “Sidsel Knutsen” (22,625dwt-blt 93 Spain) which was re-

portedly picked up by West African buyers for a price of $ 9.5m.

Wet Market

Indicative Period Charters

- 6 mos - 'Affinity' 2005 73,000dwt

- DEL WEST - $ 22,000/day - Shell

- 12 mos - 'Kastav' 2009 52,000dwt

- DEL WEST - $ 13,500/day - KOCH

© Intermodal Research 15/05/2012 3

Index $/day Index $/day Index Index

BDI 1,138 1,157 -1.6% -19 927 1,549

BCI 1,614 $8,660 1,576 $7,848 2.4% 38 1,570 2,237

BPI 1,322 $10,550 1,527 $12,194 -13.4% -205 1,115 1,749

BSI 1,112 $11,623 1,118 $11,689 -0.5% -6 894 1,377

BHSI 616 $9,269 602 $9,071 2.3% 14 498 718

04/05/12

Baltic IndicesWeek 19

11/05/12

Week 18

±%2012 2011Point

Diff

0

1,000

2,000

3,000

4,000

5,000

Index

Baltic Indices

BCI BPI BSI BHSI BDI

170K 6mnt TC 15,000 15,000 0% 0 14,338 18,474

170K 1yr TC 14,500 14,500 0% 0 15,963 17,138

170K 3yr TC 16,000 16,000 0% 0 16,818 17,599

70K 6mnt TC 13,750 14,500 -5% -750 12,930 17,238

70K 1yr TC 11,500 11,750 -2% -250 11,272 14,863

70K 3yr TC 12,250 12,250 0% 0 11,976 14,500

52K 6mnt TC 13,250 13,250 0% 0 11,700 15,587

52K 1yr TC 12,000 12,000 0% 0 11,226 14,308

52K 3yr TC 12,500 12,500 0% 0 12,174 14,046

45k 6mnt TC 11,250 11,250 0% 0 9,832 13,416

45k 1yr TC 10,250 10,250 0% 0 9,411 12,450

45k 3yr TC 10,500 10,500 0% 0 10,213 12,403

30K 6mnt TC 9,750 9,750 0% 0 8,378 11,712

30K 1yr TC 9,500 9,250 3% 250 8,613 11,787

30K 3yr TC 10,000 10,000 0% 0 10,095 12,044

Ha

nd

yma

xH

an

dy

size

Period

2011

Pa

nam

axSu

pra

ma

x

Week

19

Week

18

Cap

esi

ze

2012$/day ±% Diff

Chartering

The Capesize market con�nued to move in a posi�ve direc�on market this

week further adding to the small gains reported last week. It s�ll the case

that most of the posi�ve support is coming from the improving Atlan�c

basin, while the Pacific has been showing a different picture altogether.

With ac�vity remaining sluggish and a plethora of vessels now open, rates

in the Pacific basin took a slight tumble, pulling down the average freight

levels reported for the main 4 �me charter routes.

With the Atlan�c basin losing further ground this week for Panamaxes,

things con�nued to worsen in the market pulling rates down further. Ac�vi-

ty from the ECSA con�nues to be slow, while in both basins charterers seem

to be taking a wait-and-see aQtude expec�ng further drops to be wit-

nessed over the next couple of days. Tonnage lists have now swollen con-

siderably in the Pacific leaving li5le hope for any improvement to be seen

by Friday.

Despite another rela�vely quiet week Supras and Handies seem to be hold-

ing fairly stable. Things in the Atlan�c looked a touch more op�mis�c, with

reported ac�vity rising slightly. Supras in the Pacific were once again under

pressure due to the considerable drop in available cargos. Things were simi-

lar here for Handies, while the only thing keep overall rates up for Handies

this week has been the firmer ac�vity noted in the USGulf and Con�nent.

Sale & Purchase

Notable was the sale of the SPP built Kamsarmax resale “SPP Tongyeong

H1054” (82,000dwt-blt 12 S. Korea) which was reported sold at a very com-

pe��ve price of around $ 27.0m.

In the Capesize segment, the “Cape Orchid” (172,569dwt-blt 01 Japan) has

been reportedly sold for a price of $ 25.0m to Japanese buyers including a 3

years bareboat back charter.

0

10,000

20,000

30,000

40,000

50,000

$/d

ay

Average T/C Rates

AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

May-12 Apr-12 ±% 2012 2011 2010

170k 35.0 35.0 0.0% 36.5 43.5 57.4

75K 23.5 22.8 3.3% 25.1 31.3 39.0

52k 21.5 21.6 -0.6% 22.7 25.6 30.2

29K 18.0 18.0 0.0% 20.3 23.5 26.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Dry Market

Indicative Period Charters

- 8/13 mos - 'CK Angie' 2011 81,116dwt

- dely Qingdao 25 May/5 June - $ 11,000/day - Cobelfret

- 3/5 mos - 'Oriental Harmony' 2011 35,000dwt

- dely Huelva 16/19 May - $ 10,000/day - XO Shipping

© Intermodal Research 15/05/2012 4

Secondhand Sales

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

MR SHINASB RESALE 45,000 2012ShinaSB Yard Co,

S.KoreaMAN-B&W DH

rgn

$ 37.0-38.0mbss ppt dely

MR SHINASB RESALE 45,000 2012ShinaSB Yard Co,

S.KoreaMAN-B&W DH

rgn

$ 37.0-38.0mbss ppt dely

PROD/

CHEMSIDSEL KNUTSEN 22,625 1993 AESA SEVILLA, Spa in B&W Sep-13 DH $ 9.5m West Afri can zinc/epoxy coated

PROD/

CHEMALPHA POWER 8,339 1996

ATLANTIS SHIPYARD

PTE, SingaporeWarts i la Jun-15 DH $ 3.7m epoxy coated

PROD/

CHEM

ALPHA

PROSPERITY8,248 1995

ATLANTIS SHIPYARD

PTE, SingaporeWarts i la Jun-15 DH $ 3.7m epoxy coated

PROD/

CHEMALPHA PRESTIGE 7,574 1995

ATLANTIS SHIPYARD

PTE, SingaporeWarts i la Sep-15 DH $ 3.7m epoxy coated

PROD/

CHEMANGIMAR 5,841 2001

SAHIN CELIK TUZLA,

TurkeyMaK Nov-16 DH $ 7.3m undisclosed epoxy coated

PROD/

CHEMNIYAZI S 5,820 2005

YILDIRIM TUZLA,

Turkey

Hyundai

HimsenAug-15 DH $ 7.4m European marinel ine coated

undisclosed

European

Tankers

Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments

UMM SHAIF 4,316 1991KANREI NARUTO,

JapanMitsubishi Apr-16 3,208 $ 2.5m undi sclosed

Gas/LPG/LNG

Type Name Dwt Built Yard M/E Bhp SS due Price Buyers Comments

PSV VIKING SURF 3,640 2003

POLNOCNA

STOCZNIA SA N,

Poland

MaK 6,662 Jul -15 undi sclosed undi sclosed

PSVVIKING

THAUMAS3,550 2005

CRIST SP Z OO,

PolandMaK 6,526 Nov-16 undi sclosed undi sclosed

Offshore

© Intermodal Research 15/05/2012 5

Secondhand Sales

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

CAPE CAPE ORCHID 172,569 2001NKK CORP - TSU,

JapanB&W Mar-16 $ 25.0m Japanese Incl . 3 yrs BBB

CAPE STAR ANGEL 170,475 1995MITSUBISHI

NAGASAKI, JapanMitsubishi Feb-15 $ 12.5m undisclosed

rumored sold to

ei ther Berge Bulk

or Sinokor

KMAXSPP TONGYEONG

H105482,000 2012

SPP SHIPBUILDING

- TON, S. KoreaMAN-B&W $ 27.0m undisclosed

PMAX SHINING BLISS 76,939 2007NAMURA IMARI,

JapanMAN-B&W Nov-12 $ 23.5m Greek

PMAX RUBY CREST 73,330 1997HALLA ENG & HI -

SAMHO, S. KoreaB&W Nov-12 $ 11.8m Chinese

PMAX EASTERN QUEEN 70,196 1994

DAEWOO

SHIPBUILDING &,

S. Korea

B&W Jul -14 $ 9.8m Chinese under close negos

HMAX SERASIH 2 48,913 1999IHI - TOKYO,

JapanSulzer Apr-14

4 X 25t

CRANES$ 12.5m undisclosed

HMAX SELARAS 45,734 1994

TSUNEISHI

SHBLDG - FUK,

Japan

B&W Aug-144 X 25t

CRANES$ 8.0m undisclosed

HMAX SANKO RALLY 42,529 1994NAMURA IMARI,

JapanB&W Nov-14

4 X 30t

CRANES$ 8.8m Bangladeshi

open hatch box

type, 8 Ho/Ha

HANDY APOLLO 27,912 1996NAIKAI ZOSEN -

SETODA, JapanB&W Feb-16

4 X 30t

CRANES$ 8.0m Far Eastern

Bulk Carriers

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

FEEDERBUNGA TERATAI

41,725 1998

DAEWOO HEAVY

INDUSTRIE, S.

Korea

B&W Oct-13 $ 6.8m

FEEDERBUNGA TERATAI

31,725 1998

DAEWOO HEAVY

INDUSTRIE, S.

Korea

B&W Jul-13 $ 6.8m

FEEDER IZU 1,613 1997SHIN KURUSHIMA

ONISHI, JapanMitsubishi Feb-17

3 X 40t

CRANES$ 5.0m

FEEDER IKARUGA 1,613 1995SHIN KURUSHIMA

ONISHI, JapanMitsubishi Dec-14

2X40t CR,

1X30t CR$ 4.8m

FEEDER ID ASIA 1,012 1993

SZCZECINSKA

STOCZNIA S,

Poland

B&W Aug-132 X 40t

CRANES$ 3.9m undisclosed

Singaporean

(Sea

Consortium)

USA based

(Seachange)

Containers

© Intermodal Research 15/05/2012 6

Week

19

Week

18±% 2012 2011 2010

Bangladesh 475 490 -3.1% 486 523 422

India 475 475 0.0% 489 511 427

Pakistan 470 480 -2.1% 487 504 425

China 415 425 -2.4% 433 451 383

Bangladesh 450 470 -4.3% 461 498 375

India 450 450 0.0% 463 484 394

Pakistan 440 455 -3.3% 460 477 388

China 390 405 -3.7% 415 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

350

400

450

500

550

600

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

350

400

450

500

550

600

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

The recent poor sen�ment noted in the market has started to take its toll,

with offered price levels star�ng to be5er reflect the prevailing market condi-

�ons. With the volume of offered tonnage s�ll remaining fairly high, things

are expected to con�nue to be depressed, while at the same �me poor steel

prices are unlikely to provide any support. Entering into the monsoon season

is not going to help things either, as demo buyers are expected to slow down

their ac�vity and wait to go through much of the already purchased tonnage

first before showing keen interest for further purchases. Prices were consid-

erably so/er this week, with wet tonnages dropping to levels of around 415-

475$/ldt and dry units to about 390-450$/ldt.

Most notable this week was the price paid by Pakistani breakers for the tank-

ers ‘Genmar Alexander’ (102,262dwt-15,145ldt-blt 92) which reportedly re-

ceived a very firm price of $ 500/Ldt.

Demoli&on Market

Name Size Ldt Built Yard Type $/ldt Breakers Comments

STONEGATE 187,011 27,631 1984 HITACHI, Japan BULKER $ 420/Ldt Chinese

GLORY RIZHAO 169,381 23,269 1991 DAEWOO, S. Korea BULKER $ 484/Ldt Bangladeshi

GLORY FUZHOU 153,572 24,289 1989CHINA SHIPBLDG,

Chinese TaipeiBULKER $ 484/Ldt Bangladeshi

SILVER

CONSTELLATION146,351 20,583 1986 NKK CORP, Japan BULKER $ 420/Ldt Chinese bss delivery Bangladesh

GENMAR ALEXANDRA 102,262 15,145 1992SHIN KURUSHIMA,

JapanTANKER $ 500/Ldt Pakistani

TRANS GULF 81,659 17,850 1982 ITALCANTIERI, Italy BULKER $ 446/Ldt Indian basis delivery India region

KS FRONTIER 42,239 8,180 1984 MITSUI, Japan BULKER $ 485/Ldt Bangladeshi

KS CHALLENGER 41,635 9,332 1985 HAYASHIKANE, Japan BULKER $ 445/Ldt Bangladeshi

MSC FINLAND 40,928 15,000 1986 KAWASAKI-, Japan CONT $ 470/Ldt Indian

ORIENTAL KEY 38,323 8,198 1980 KASADO, Japan BULKER $ 482/Ldt Bangladeshi

EMINE 25,560 7,755 1983GEORGI DIMITROV,

BulgariaBULKER $ 448/Ldt Pakistani

ELSIN RANI 9,370 4,255 1994VARNA SHIPYARD,

BulgariaGC $ 465/Ldt Bangladeshi

SILVER STOCKHOLM 6,801 6,794 1990SHANGHAI

SHIPYARD, ChinaREEFER $ 440/Ldt Indian

BRAZILIAN LADY 6,333 5,827 1987LENINA STOCZNIA,

PolandREEFER $ 454/Ldt Indian incl. 22T of aluminum

PIRGAS 2,528 1,638 1982SVENDBORG,

DenmarkGAS $ 250/Ldt undisclosed

Demolition Sales

© Intermodal Research 15/05/2012 7

Week

19

Week

18±% 2012 2011 2010

Capesize 170k 46.0 46.0 0.0% 46 53 58

Panamax 75k 27.0 27.0 0.0% 27 33 35

Supramax 57k 25.5 25.5 0.0% 25 30 31

Handysize 30k 21.8 21.8 0.0% 22 25 27

VLCC 300k 95.5 95.5 0.0% 95 102 104

Suezmax 150k 58.0 58.0 0.0% 58 64 66

Aframax 110k 50.0 50.0 0.0% 50 54 55

LR1 70k 42.0 42.0 0.0% 42 45 46

MR 47k 33.5 33.5 0.0% 33 36 36

LPG M3 80k 71.0 71.0 0.0% 70 73 72

LPG M3 52k 62.0 62.0 0.0% 61 64 65

LPG M3 23k 44.0 44.0 0.0% 45 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

Things have improved considerably over the past week in the newbuilding

market. Owners seem to have increased interest in placing new orders hop-

ing to benefit from the low price levels despite the fact that they are s�ll

significantly higher than the rock bo5om levels achieved in 2002. This is

mainly due to the fact that as shipbuilding costs have increased significantly

over the past couple of years, many believe it is unlikely that we will be able

to see significantly lower offered prices than those seen in the past. At the

same �me most are more op�mis�c with regards to market condi�ons in

2013 and 2014 were most of these new orders are scheduled for delivery.

This however could end up being misplaced op�mism if too many people

take this stance and eventually cause the orderbook to remain at such high

levels.

Worth men�oning this week is the reported order placed by the joint ven-

ture between Ceres and JP Morgan for four firm plus four op�onal MR tank-

ers (51,000dwt) at S. Korea’s SPP Shipyard for a reported price of $ 33.5m

each against a 5 year �mecharter to Valero at a very firm rate of $ 17,000/

day.

10

20

30

40

50

60

70

mil

lion $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

mil

lion $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

2 Tanker 310,000 dwt IHI, Japan 2015 Japanese (JX Group) $ 100.0m

2 Tanker 110,000 dwt Dalian Shipbldg, China 2013-2014 (Seatankers Mgmt) $ 42.0m

4+4 Tanker 51,000 dwt SPP, S.Korea 2013-2014JV btw Ceres Hellenic and

JP Morgan$ 33.5m

against 5yr TC to

Valero at

$17,000/day

2 Bulker 76,000 dwt Shanhaiguan SY, China 2013Chinese (Shenhua

Zhonghai)$ 27.8m

6 Bulker 76,000 dwt Jiangnan SY, China 2013-2014Chinese (Shenhua

Zhonghai)$ 27.8m

3 Bulker 75,000 dwt Sasebo, Japan 2013Taiwanese (Wisdom

Marine)undisclosed

5 Bulker 35,000 dwt STX Dalian, China 2013 S.Korean (Dongbu Group) $ 23.0m

2 Gas 9,000 cbm STX Jinhai, China 2015 Greek (Benelux Overseas) $ 32.0m Ethylene

2 Offshore - Topaz Engineering,

Dubai - UK based (BP) $ 50.0m AHTS

1 Offshore 63,190 grt Hyundai HI, S.Korea 2014US based (Diamond

Offshore)$ 655.0m Drillship

1 Offshore 3,150 dwt Simek AS, Norway 05/2013 Norwegian (Sartor Shpg) undisclosed PSV

Size

Newbuilding Orders

The informa�on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa�on to be factual and reliable without mak-

ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc�on 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 informa�on 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 wri5en authoriza�on of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valua�ons Department | Mr George Lazaridis

E-mail: research@intermodal.gr

On behalf of Intermodal Sale & Purchase, Newbuilding and Chartering Departments

E-mail: snp@intermodal.gr, tankers@intermodal.gr, dry@intermodal.gr

1,560

1,580

1,600

1,620

1,640

1,660

90

100

110

120

130

140

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

11-May-12 4-May-12W-O-W

Change %

Rotterdam 956.0 1,008.0 -5.2%

Houston 987.0 1,041.0 -5.2%

Singapore 951.0 995.0 -4.4%

Rotterdam 652.5 686.0 -4.9%

Houston 667.5 707.5 -5.7%

Singapore 673.5 711.5 -5.3%

Rotterdam 676.0 713.0 -5.2%

Houston 697.5 737.5 -5.4%

Singapore 683.5 722.5 -5.4%

Bunker Prices

MD

O3

80

cst

18

0cs

t

World Economy News

Greece is to repay 435 million euros ($556 million) of bonds falling due today

as the na�on faces new elec�ons a/er leaders failed to form a government.

Greece will pay the principal and interest on foreign law notes which weren’t

tendered into the country’s debt restructuring, the Athens-based Finance

Ministry said in an e- mailed statement. The repayment won’t prejudice fu-

ture decisions on other untendered bonds, the ministry said. (Bloomberg)

Energy & Commodi&es

Commodi�es and gold prices fell to their lowest levels in almost five months

on Monday as uncertainty about Greece’s ability to remain in the eurozone

and concerns about China’s growth weighed on risk appe�te. Investors liqui-

dated their posi�ons as comments from eurozone central bankers, including

Ireland’s Patrick Honohan and Luc Coene of Belgium, suggested that the re-

gion’s policy makers were taking seriously the possibility of a Greek exit from

the euro. (Financial Times)

Finance News

The Chinese government relaxed capital require-

ments for the country’s banks on Monday, effec�vely

releasing up to $63bn into the economy.

The move comes shortly a/er Chinese government

sources released disappoin�ng trade data for April

last week, showing that imports barely increased and

iron-ore imports, the largest na�onal bulk trade, fell

to 60.1m tonnes from 61.1m in March.

Analysts had expected the government to reduce the

so-called reserve requirement ra�o for months.

Relaxing capital requirements should enable banks to

lend more money and give the Chinese economy a

much-needed boost by providing cheap credit.

However, some shipping analysts have voiced fears

that using cheap loans to s�mulate the economy

could hurt shipping markets, by increasing the incen-

�ve for Chinese shipbuilders to place newbuilding

orders in an industry that is already grossly overton-

naged.

But on Monday, Germany’s Commerzbank raised the

possibility that the move would have very li5le effect.

(Lloyds List)

CompanyStock

ExchangeCurr. 11-May-12 04-May-12

W-O-W

Change %Max 19wk Min 19wk

AEGEAN MARINE PETROL NTWK NYSE USD 5.56 6.05 -8.1% 6.09 5.56

BALTIC TRADING NYSE USD 4.00 4.05 -1.2% 4.13 4.00

BOX SHIPS INC NYSE USD 8.57 9.25 -7.4% 9.15 8.57

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.89 7.96 -0.9% 8.00 7.67

COSTAMARE INC NYSE USD 14.29 14.09 1.4% 14.45 14.00

DANAOS CORPORATION NYSE USD 4.23 4.18 1.2% 4.32 3.97

DIANA SHIPPING NYSE USD 7.60 7.80 -2.6% 7.76 7.60

DRYSHIPS INC NASDAQ USD 2.57 2.91 -11.7% 2.86 2.57

EAGLE BULK SHIPPING NASDAQ USD 1.08 1.28 -15.6% 1.23 1.03

EUROSEAS LTD. NASDAQ USD 1.45 1.84 -21.2% 1.59 1.45

EXCEL MARITIME CARRIERS NYSE USD 1.42 1.56 -9.0% 1.52 1.42

FREESEAS INC NASDAQ USD 0.82 1.11 -26.1% 1.04 0.82

GENCO SHIPPING NYSE USD 3.94 4.30 -8.4% 4.25 3.94

GLOBUS MARITIME LIMITED NASDAQ USD 4.97 5.10 -2.5% 5.20 4.78

GOLDENPORT HOLDINGS INC LONDON GBX 84.75 83.00 2.1% 84.75 81.50

HELLENIC CARRIERS LIMITED LONDON GBX 38.30 38.00 0.8% 38.30 35.10

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.85 2.90 -1.7% 2.95 2.80

NAVIOS MARITIME HOLDINGS NYSE USD 3.35 3.63 -7.7% 3.53 3.35

NAVIOS MARITIME PARTNERS LP NYSE USD 14.13 15.72 -10.1% 15.63 14.13

NEWLEAD HOLDINGS LTD NASDAQ USD 1.71 2.17 -21.2% 2.09 1.61

OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.41 0.40 2.5% 0.42 0.40

PARAGON SHIPPING INC. NYSE USD 0.60 0.66 -9.1% 0.65 0.60

SAFE BULKERS INC NYSE USD 6.61 6.57 0.6% 6.74 6.45

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 3.18 3.14 1.3% 3.20 3.02

STAR BULK CARRIERS CORP NASDAQ USD 0.86 0.90 -4.4% 0.88 0.86

STEALTHGAS INC NASDAQ USD 6.02 6.30 -4.4% 6.06 6.02

TSAKOS ENERGY NAVIGATION NYSE USD 5.69 6.02 -5.5% 5.84 5.64

TOP SHIPS INC NASDAQ USD 1.76 1.85 -4.9% 1.95 1.55

Maritime Stock Data

11-May-12 10-May-12 9-May-12 8-May-12 7-May-12W-O-W

Change %

10year US Bond 1.840 1.880 1.840 1.840 1.880 -2.1%

S&P 500 1,353.39 1,357.99 1,354.58 1,363.72 1,369.58 -1.1%

Nasdaq 2,933.82 2,933.64 2,934.71 2,946.27 2,957.76 -0.8%

Dow Jones 12,820.60 12,855.04 12,835.06 12,932.09 13,008.53 -1.7%

FTSE 100 5,575.52 5,543.95 5,530.05 5,554.55 - -1.4%

FTSE All-Share UK 2,897.79 2,881.50 2,869.65 2,883.78 - -1.4%

CAC40 3,129.77 3,130.17 3,118.65 3,124.80 3,214.22 -1.0%

Xetra Dax 6,579.93 6,518.00 6,475.31 6,444.74 6,569.48 0.3%

Nikkei 8,953.31 9,009.65 9,045.06 9,181.65 9,119.14 -1.8%

Hang Seng 19,964.63 20,227.28 20,330.64 20,484.75 20,536.65 -5.3%

Dow Jones 223.11 223.74 227.28 230.10 231.55 -3.8%

$ / € 1.29 1.30 1.30 1.30 1.30 -1.4%

$ / ₤ 1.61 1.62 1.61 1.62 1.62 -0.4%

₤ / € 0.80 0.80 0.80 0.81 0.81 -1.1%

¥ / $ 79.94 79.71 79.53 79.85 79.94 -0.4%

$ / Au$ 1.01 1.01 1.00 1.02 1.02 -1.8%

$ / NoK 0.17 0.17 0.17 0.17 0.17 -1.4%

$ / SFr 0.93 0.93 0.93 0.92 0.92 1.4%

Yuan / $ 6.31 6.31 6.31 6.29 6.29 0.1%

Won / $ 1,147.44 1,142.10 1,143.68 1,136.26 1,137.23 1.4%

$ INDEX 80.40 80.50 80.50 80.30 80.00 0.5%

Oil WTI $ 96.10 97.10 96.80 97.30 97.90 -2.4%

Oil Brent $ 111.80 112.40 113.20 112.70 113.20 -1.2%

Gold $ 1,594.20 1,591.00 1,605.40 1,638.60 1,642.60 -2.6%

Market Data

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Commodi&es & Financials