Broker’s insight by Panos Tsilingiris

One of the key dilemmas today for shipping investors who concentrate on

owning modern tonnage, is whether to order an ‘eco-type’ newbuilding or

instead acquire a proven second-hand vessel up to five-years old.

For both op!ons, the encouraging news is that from a historical point of view

we are currently facing mul!-year lows. This holds both for newbuildings and

second-hand asset values. For example, Panamax/Kamsarmax Bulker new-

building prices are close to their lowest levels reached over the last 20-year

history in infla!on-adjusted terms. This is very important since it is well-

known that shipping is a strongly cyclical and capital intensive business and

that the return of the investment is heavily dependent on its entrance point.

On the other hand, the discouraging fact for both investment possibili!es is

that current freight levels, even for very modern ‘high-spec’ tonnage, are too

low. In other words, even today’s depressed newbuilding and second hand

prices require break-even charter rates which are much higher than the cur-

rently prevailing market levels. For example, for the case of Kamsarmax bulk-

er newbuildings, the break-even rate is in the high-$ 15,000s/day. Even

though this is well below the historical average, it is s!ll far above the current

!me-charter rates which are struggling in single-digit figures.

However, the central factor which will determine the op!mal decision ap-

pears to be fuel consump!on. In the last two years, we experience con!nu-

ous improvements in ship design towards energy efficiency rather than

deadweight maximiza!on as was the case up un!l the very recently. This

improvement o4en stems from a combina!on of be5er hydrodynamics/hull

form, economic low-speed main engines, bigger and more efficient propel-

lers, slow steaming design points, and energy-saving appliances, among oth-

ers.

As a simple exercise, let’s take the example of modern Kamsarmax bulkers.

The most prominent designs that can be built today by Chinese yards prom-

ise main engine consump!on in the high 20s t/d (at 14knots at scantling dra4

bss MDO). By contrast, and with everything else being equal, non-eco-type

Kamsarmax resales in the market -either Chinese or South Korean- or 5 year

old Japanese-built Kamsas quote consump!on figures in the mid-high 30s

tons/day.

We would generally expect prominent ‘eco-type’ designs to entertain fuel

savings in the region on 10-20%. In monetary terms, if we accept a difference

of 5tns/day between ‘eco’ and non-‘eco’ vessels, the eco-type newbuildings

result in savings of arnd $ 3,200/day taking into account that the cost of IFO

380 is around $ 640/ton. Assuming 270 days of opera!on, the resul!ng annu-

al savings are xs $ 860,000. Thus, in ten years, the total savings

(undiscounted) are almost close to the value of a 15-year old Panamax Bulker

today! However, in today’s shipping prac!ce where slow steaming is the

norm, the accrued savings will likely be lower.

If we accept savings of 5t/d and eco-type Kamsarmax newbuilding prices in

China at shy $ 27m, it is naively implied that non-eco Kamsarmax resales

could be easily priced at arnd xs $ 20m and non-eco 5 year-old Japanese

Kamsarmax tonnage in the mid-high teens. In reality, the market has valued

6 yo Kamsarmaxes below $ 18m and quality Chinese resales at low-mid 20s.

To an extent, although the market discounts non-‘eco’ vessels, so far it does

not discount them as heavily as per the promises of the eco-designs. All in all,

eco-type designs are the way forward albeit they are as-yet unproven.

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

The Bal!c Dry Index was able to note a marginal improvement since last

Tuesday mainly thanks to the rapidly firming Capesize market. The BDI

closed Tuesday (02/10/2012) at 778 points, up by 1 points compared to

Monday’s levels (01/10/2012) and an increase of 15 points compared to

the previous Tuesday’s levels (25/09/2012). Despite the deteriora!ng

condi!ons noted for VLCCs and the increased downward pressure the

tanker market has been able to hold its ground for the !me being. The

BDTI Monday (01/10/2012), was at 652, 12 points up and the BCTI at

639, a decrease of 5 points compared to the previous Monday’s levels

(24/09/2012).

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

There is s!ll fairly limited ac!vity, although we have seen several owners

in both markets snapping up a significant number of units in a short !me

frame. On the Tankers side, we had the sale of the “Hellespont Trini-

ty” (148,018dwt-blt 96 S. Korea) which was picked up by Greek buyers

for a price of $ 11.3m. While on the dry bulker side, we had the sale of

the Chinese built resale “Bulk Loaylty” (176,000dwt-blt 12 China) which

a4er the previous deal at $ 37.0m failed, was once again reported sold

to Greek buyers for a price of $ 34.5m.

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

No surprise to the limited new order ac!vity s!ll being witnessed in the

Dry bulk market. There was some renewed interest in small coated tank-

ers with orders being reported this week by both Italy’s D’Amico and US

based equity fun HighPoint Mari!me for MR tankers in S. Korean yards.

The main interest however con!nues to remain for the Gas carrier and

Container segments, although for containers it seems to have focused

lately on the more promising Post-Panamax and ULCV size segments.

What's important to note with regards to this, is that we have seen Chi-

nese shipbuilders gain ground in these niche segments and in par!cular

the container market, where they have been able to a5ract a number of

high profile orders these past couple of months. This s!ll leaves much of

the lower !er yards lacking an comfortable orderbook ‘cushion’ for 2013

-2014 which will likely lead to interes!ng market developments to be

seen in the first part of 2013. In terms of reported deals this week, the

most notable order was that placed by China Interna!onal Marine Con-

tainers this !me at China’s state owned Dalian shipbuilding for 6 firm

Post-Panamax (9,200teu) containerships for delivery in 2014 and at a

price of around $ 82.5m each..

Demoli%on (Wet: Stable+ / Dry: Stable+ )

With the number of demo candidates offered in the market now seem-

ingly reduced in number and interest amongst demo buyers looking to

be slightly firmer, the market showed a slight improvement. Most of the

increases witnessed with regards to offered demo prices was heavily

supported b the improved currency posi!on of the Indian Rupee against

the US dollar. This however can only feed so much to market confidence

and is unlikely to fuel much further price increases over the coming

days. Having said that, things could improve further as Chinese and Paki-

stan appe!te for demo candidates firms pushing both these markets to

further compete for high spec units. All this can easily be overturned

however if the market get flooded once again with candidates for sale.

Prices improved slightly this week, with wet tonnage seeing levels of

around 320-420$/ldt and dry units at 300-395$/ldt.

Weekly Market Report

Week 39|Tuesday 02nd October 2012

© Intermodal Research 03/10/2012 2

Sep-12 Aug-12 ±% 2012 2011 2010

300KT DH 62.3 63.0 -1.2% 64.3 77.6 87.2

150KT DH 44.0 45.0 -2.2% 46.1 54.4 62.6

105KT DH 29.8 30.5 -2.5% 32.3 39.1 44.7

70KT DH 26.0 26.0 0.0% 27.4 35.2 38.8

45KT DH 24.0 24.0 0.0% 25.2 28.4 26.5

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

Panamax

Week 39 Week 38 ±% Diff 2012 2011

300k 1yr TC 22,500 22,500 0.0% 0 22,583 25,197

300k 3yr TC 27,000 27,000 0.0% 0 27,360 31,681

150k 1yr TC 18,500 19,000 -2.6% -500 17,724 19,837

150k 3yr TC 22,000 22,000 0.0% 0 21,033 23,830

105k 1yr TC 14,000 13,500 3.7% 500 13,833 15,707

105k 3yr TC 16,250 16,250 0.0% 0 16,123 18,335

70k 1yr TC 13,000 13,000 0.0% 0 13,026 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,283 16,263

45k 1yr TC 13,000 13,000 0.0% 0 13,942 13,918

45k 3yr TC 14,500 14,500 0.0% 0 14,706 14,738

36k 1yr TC 12,750 12,750 0.0% 0 12,564 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,354 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 36 4,215 40 10,788 -10% 23,029 18,217

280k AG-USG 24 -9,264 27 -4,142 -11% 2,705 2,504

260k WAF-USG 40 13,022 45 20,858 -11% 33,118 25,714

130k MED-MED 55 5,551 58 7,709 -4% 23,757 25,125

130k WAF-USAC 58 5,275 58 5,856 0% 14,579 13,373

130k AG-CHINA 78 23,239 78 23,340 0% 22,949 14,815

80k AG-EAST 110 21,013 115 23,368 -4% 14,216 12,726

80k MED-MED 75 7,435 75 7,435 0% 14,693 13,577

80k UKC-UKC 85 14,330 85 14,551 0% 18,920 18,604

70k CARIBS-USG 90 6,959 88 5,912 3% 12,326 8,240

75k AG-JAPAN 98 11,530 98 11,438 0% 8,078 10,467

55k AG-JAPAN 113 9,826 115 10,614 -2% 8,294 7,768

37K UKC-USAC 138 10,205 150 13,190 -8% 9,025 11,022

30K MED-MED 160 21,607 158 20,897 2% 16,469 18,458

55K UKC-USG 128 18,611 113 13,207 13% 15,377 11,266

55K MED-USG 128 16,387 113 11,044 13% 13,527 9,676

50k CARIBS-USAC 118 11,297 110 9,065 7% 13,424 10,700

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Spot Rates

Vessel Routes

Week 39 Week 38

±%

Chartering

There was a rapid deteriora!on in market condi!ons this week for VLCCs as

demand for crude oil dropped sharply leaving the volume of fixtures at a

slow pace and an overwhelming number of open vessels in both the MEG

and WAF. As such, confidence in the market has taken a turn for the worse

and things are now expected by most to remain subdued for a considerable

!me period. The typically expected autumn recovery has been pushed back

further likely to emerge later on once the winter weather starts to show its

face in the US and Europe.

Things were stabilised once again in the Suezmax market as things were

shaken up by the events that unfolded in the VLCC market this week. The

Black Sea/Med region remain under considerable downward pressure push-

ing freight levels further down. There is limited interest surfacing from char-

terers which could push things further down over the next couple of days.

At the same !me a lot of things depend on the improvement of the VLCC

market which has started to compete partly with the Suezmaxes on some of

the stems that emerge.

Not much change in the Aframax sector, with rates holding stable this week

as interest was minimal from charterers while at the same !me owners put

significant effort to keep rates from dropping lower. The Caribs, once again

was the only market to see a improvement though only marginal one.

Sale & Purchase

In the Suezmax segment this week, we had the sale of the “Hellespont Trini-

ty” (148,018dwt-blt 96 S. Korea) which was picked up by Greek buyers for a

price of $ 11.3m.

Also noteworthy was the reported enbloc sale of the VLCCs

“Alrehab” (301,620dwt-blt 99 Japan) and “Osprey” (284,893dwt-blt 99 Ja-

pan) which went to S. Korean buyers, namely Sinokor for an total price of

about $ 27.0m each.

Wet Market

Indicative Period Charters

- 5/6 mos - 'Pyxis Delta' 2006 46,000dwt

- DEL EAST - $ 12,950/day - Trafigura

- 12+12mos - 'Kilakarai Star' 2009 45,000dwt

- DEL EAST - $ 13,200/day - PTT

20

40

60

80

100

120

140

160

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

6080

100120140160180200220240260

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 03/10/2012 3

Index $/day Index $/day Index Index

BDI 766 774 -1.0% -8 911 1,549

BCI 1,621 $8,039 1,584 $7,664 2.3% 37 1,425 2,237

BPI 425 $3,389 467 $3,719 -9.0% -42 1,011 1,749

BSI 830 $8,676 847 $8,859 -2.0% -17 962 1,377

BHSI 472 $6,893 484 $7,047 -2.5% -12 544 718

21-09-12

Baltic IndicesWeek 39

28-09-12

Week 38

±%2012 2011Point

Diff

0

1,000

2,000

3,000

4,000

5,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

170K 6mnt TC 14,000 14,000 0% 0 13,017 18,474

170K 1yr TC 12,250 12,250 0% 0 14,133 17,138

170K 3yr TC 13,500 14,000 -4% -500 15,771 17,599

70K 6mnt TC 7,375 7,500 -2% -125 11,681 17,238

70K 1yr TC 8,000 8,000 0% 0 10,428 14,863

70K 3yr TC 10,000 10,000 0% 0 11,399 14,500

52K 6mnt TC 10,250 10,750 -5% -500 11,783 15,587

52K 1yr TC 10,000 9,500 5% 500 10,783 14,308

52K 3yr TC 10,750 10,750 0% 0 11,585 14,046

45k 6mnt TC 8,750 9,000 -3% -250 9,899 13,416

45k 1yr TC 8,750 8,750 0% 0 9,226 12,450

45k 3yr TC 9,250 9,250 0% 0 9,924 12,403

30K 6mnt TC 8,500 8,500 0% 0 8,530 11,712

30K 1yr TC 8,500 8,750 -3% -250 8,638 11,787

30K 3yr TC 9,250 9,250 0% 0 9,681 12,044

Ha

nd

yma

xH

an

dy

size

Period

2011

Pa

nam

axSu

pra

ma

x

Week

39

Week

38

Cap

esi

ze

2012$/day ±% Diff

Chartering

Ac!vity held at fairly good levels for Capes just before the Far East closed

for holidays. The number of fixtures was done in promising market condi-

!ons, as the now !ght tonnage lists gave owners the upper hand to push

for even be5er freight levels. As things start to slow down this week howev-

er, it will be hard for these current levels to be maintained despite the im-

provement in posi!on lists. At the same !me the poor condi!ons noted in

all of the other size segments will inevitably remain a barrier for owners

confidence to improve considerably.

The Panamax sector was once again the biggest loser amongst all the dry

bulk segments, with rates losing further ground as on the base of slower

ac!vity and considerably swollen tonnage lists in both ECSA and the Pacific

basin. The only hope amongst owners is that the improved Capesize market

might have some sort of spill over effects onto the panamax market and

will help drive rates up rapidly once ac!vity re-emerges.

A4er last weeks improvement, both the Supras and Handies closed the

week in the red, making a small week-on-week loss as ac!vity started to

drop and fear resurfaced amongst market players. There was li5le fresh

interest coming out of USGulf and the Con!nent this week, while the Pacific

basin started to witness some slack earlier from the upcoming holidays.

There is not much expecta!on of a posi!ve turn around over the next cou-

ple of days, while at the same !me things are expected to deteriorate fur-

ther with regards to posi!on lists.

Sale & Purchase

In the Capesize sector we had the sale of the Chinese built resale “Bulk

Loaylty” (176,000dwt-blt 12 China) which a4er the previous deal at $ 37.0m

failed, was once again reported sold to Greek buyers for a price of $ 34.5m.

There was also the enbloc sale of the “Bulk Asia” (170,578dwt-blt 01 Japan),

“Bulk Europe” (169,770dwt-blt 01 Japan) and “Vogebulker” (169,168dwt-blt

99 S. Korea) which was reported sold to S. Korea’s Sinokor for a total price

of about $ 52.0m.

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 BS I AVR 6TC BHSI

Sep-12 Aug-12 ±% 2012 2011 2010

170k 32.4 33.0 -1.9% 35.2 43.5 57.4

75K 20.5 22.2 -7.7% 23.9 31.3 39.0

52k 19.6 20.5 -4.3% 21.9 25.6 30.2

29K 16.0 16.0 0.0% 18.7 23.5 26.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 3/5 mos - 'Raiju' 2000 172,000dwt

- dely Taichung 2/3 Oct - $ 10,500/day - Cargill

- 6/8 mos - 'Rosco Plum' 2004 76,801dwt

- dely Caofedian 2/6 Oct - $ 6,750/day - cnr

Dry Market

© Intermodal Research 03/10/2012 4

Secondhand Sales

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

VLCC ALREHAB 301,620 1999 IHI - KURE, Japan Sulzer Jul -14 DH $ 27.0m

VLCC OSPREY 284,893 1999SUMITOMO HI

YOKOSUKA, JapanSulzer Jan-14 DH $ 27.0m

SUEZHELLESPONT

TRINITY148,018 1996

SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W May-16 DH $ 11.3m Greek

PROD/

CHEMBOW DE FENG 12,514 2002

FUKUOKA FUKUOKA,

JapanB&W Mar-17 DH undisclos ed StSt tanks

PROD/

CHEMBOW DE RICH 12,451 2003

FUKUOKA FUKUOKA,

JapanB&W May-13 DH undisclos ed StSt tanks

PROD/

CHEMSUN VICTORY 6,568 2000

MURAKAMI HIDE,

JapanMits ubishi Feb-15 SH $ 4.8m Indones ian Zinc coated

S. Korean

(Sinokor)

undisclosed

Tankers

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

FEEDER HIGH ENERGY 626 1992VOLKSWERFT,

GermanyMAN Aug-17

2 X 40t

CRANES$ 3.0m South American

Containers

© Intermodal Research 03/10/2012 5

Secondhand Sales

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

VLOC HEBEI WINNER 256,777 1993 IHI - KURE, Japan Sulzer Sep-13 $ 12.0mS.Korea

(Sinokor)

CAPE AZUL FRONTIER 177,253 2003NAMURA IMARI,

JapanMAN-B&W Jul -13 $ 21.4m

Swiss based

(Swiss Marine)

CAPE BULK LOYALTY 176,000 2012JINHAI HEAVY

INDUSTRY, ChinaMAN-B&W $ 34.5m Greeks

previous dea l at

$ 37.0m fa i led

CAPE BULK ASIA 170,578 2001SASEBO SASEBO,

JapanB&W Jan-16

CAPE BULK EUROPE 169,770 2001SASEBO SASEBO,

JapanB&W Jun-16

CAPE VOGEBULKER 169,168 1999HALLA ENG & HI -

SAMHO, S. KoreaB&W Aug-14

POST

PMAX

NEW CENTURY

0111506115,000 2012

NEW CENTURY

SHIPBUILDI, ChinaMAN-B&W

PMAXNEW TIMES

010820781,500 2013

NEW TIMES

SHIPBUILDING,

China

MAN-B&W

PMAXHONGXIN

PROGRESS81,500 2012

NEW CENTURY

SHIPBUILDI, ChinaMAN-B&W

PMAXNEW CENTURY

010821581,500 2012

NEW CENTURY

SHIPBUILDI, ChinaMAN-B&W

PMAX CROWN STAR 76,662 2002

IMABARI

MARUGAME,

Japan

B&W Feb-17 $ 13.6m Greek

HANDYIGNACY

DASZYNSKI33,580 1988

A WARSKIEGO

STOCZNIA, PolandSulzer Nov-12 gless undisclosed undisclosed

HANDY PEONY 29,756 2001SHIKOKU

DOCKYARD, JapanB&W Nov-16

4 X 30t

CRANESxs $ 10.0m Chi lean

enbloc

$ 52.0 m

South Korean

(Sinokor)

Greek

undisclosed Greek

undisclosed

Bulk Carriers

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

ZIA BELLE 8,708 1997ZHONGHUA

SHIPYARD, ChinaWarts i la Sep-12

2 X 150t

CRANES$ 2.0m Chinese heavy l i ft

PACIFIC GUARDIAN 5,450 1998

JIANGSU

JIANGYANG SHIP,

China

MAN Jun-132 X 40t

CRANES$ 2.5m Fi l ipino

LUCKY WHALE 5,215 1995MARMARA

YARIMCA, TurkeyMaK May-15

2 X 40t

CRANES$ 0.9m Syrian bss 'as is ' Gibra ltar

MPP/General Cargo

© Intermodal Research 03/10/2012 6

Week

39

Week

38±% 2012 2011 2010

Bangladesh 400 400 0.0% 449 523 422

India 420 415 1.2% 452 511 427

Pakistan 415 415 0.0% 450 504 425

China 320 320 0.0% 390 451 383

Bangladesh 375 375 0.0% 424 498 375

India 395 390 1.3% 426 484 394

Pakistan 390 390 0.0% 424 477 388

China 300 290 3.4% 371 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

With the number of demo candidates offered in the market now seemingly

reduced in number and interest amongst demo buyers looking to be slightly

firmer, the market showed a slight improvement. Most of the increases wit-

nessed with regards to offered demo prices was heavily supported b the

improved currency posi!on of the Indian Rupee against the US dollar. This

however can only feed so much to market confidence and is unlikely to fuel

much further price increases over the coming days. Having said that, things

could improve further as Chinese and Pakistan appe!te for demo candidates

firms pushing both these markets to further compete for high spec units. All

this can easily be overturned however if the market get flooded once again

with candidates for sale. Prices improved slightly this week, with wet ton-

nage seeing levels of around 320-420$/ldt and dry units at 300-395$/ldt.

Most notable this week was the price paid by Indian breakers for the contain-

er ‘Atlan!c Trader’ (22,024dwt-7,376ldt-blt 96) which reportedly received a

price of around $ 425/Ldt.

Demoli%on Market

250

300

350

400

450

500

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

PHOENIX 151,227 17,898 1990SUMITOMO HI

OPPAMA, JapanBULKER $ 420/Ldt Indian forward dely December

GS BEAUTY 139,650 19,050 1983KAWASAKI HEAVY

INDS -, JapanBULKER $ 391/Ldt Indian

bss 'as is' Singapore incl 150Tns

of bunkers ROB

GRAND ANEMI 76,650 13,651 1988COCHIN SHIPYARD,

IndiaBULKER $ 342/Ldt Chinese bss 'as is' Taiwan

OCEAN KING 47,409 9,921 1983HYUNDAI HEAVY

INDS - U, S. KoreaBULKER $ 415/Ldt Indian

CHAMPION 30,407 11,800 1998GDYNIA STOCZNIA

SA, PolandCONT $ 407/Ldt undisclosed bss 'as is' Singapore

ATLANTIC TRADER 22,024 7,376 1996 MTW, Germany CONT $ 425/Ldt Indianbss 'as is' Colombo incl bunkers

for last voyage

HORIZON 14,764 8,306 1991FINCANTIERI STABIA,

ItalyCONT $ 428/Ldt Indian

Demolition Sales

© Intermodal Research 03/10/2012 7

Week

39

Week

38±% 2012 2011 2010

Capesize 170k 45.5 45.5 0.0% 46 53 58

Panamax 75k 25.8 25.8 0.0% 27 33 35

Supramax 57k 24.5 24.5 0.0% 25 30 31

Handysize 30k 20.8 20.9 -0.6% 22 25 27

VLCC 300k 94.5 94.5 0.0% 94 102 103

Suezmax 150k 57.5 57.5 0.0% 58 64 66

Aframax 110k 48.5 48.5 0.0% 49 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 70.0 70.0 0.0% 70 73 72

LPG M3 52k 61.5 61.5 0.0% 61 64 65

LPG M3 23k 41.5 41.5 0.0% 44 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

No surprise to the limited new order ac!vity s!ll being witnessed in the Dry

bulk market. There was some renewed interest in small coated tankers with

orders being reported this week by both Italy’s D’Amico and US based equity

fun HighPoint Mari!me for MR tankers in S. Korean yards. The main interest

however con!nues to remain for the Gas carrier and Container segments,

although for containers it seems to have focused lately on the more promis-

ing Post-Panamax and ULCV size segments. What's important to note with

regards to this, is that we have seen Chinese shipbuilders gain ground in

these niche segments and in par!cular the container market, where they

have been able to a5ract a number of high profile orders these past couple

of months. This s!ll leaves much of the lower !er yards lacking an comforta-

ble orderbook “cushion” for 2013-2014 which will likely lead to interes!ng

market developments to be seen in the first part of 2013.

The most noteworthy order reported this week is that placed by China Inter-

na!onal Marine Containers this !me at China’s state owned Dalian shipbuild-

ing for 6 firm Post-Panamax (9,200teu) containerships for delivery in 2014

and at a price of around $ 82.5m each.

10

20

30

40

50

60

70m

illi

on

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

mil

lio

n $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

2 Tanker 50,000 dwtHyundai Mipo, S.

Korea2014 Italian (D'Amico) $ 33.0m

extended their

current order

6+4 Tanker 50,000 dwt STX, S. Korea 2014US based (HighPoint

Maritime)$ 33.0m LOI stage

2 Tanker 50,000 dwtSantieral Naval,

Romania2013-2014 Romanian (Petromin) $ 33.0m

fuel efficient

Dream 50 design

2 Bulker 76,000 dwt Taizhou Catic, China 2014 German (MST - Mineralien) undisclosed

6 Container 9,200 teu DSIC, China 2014 Chinese (CIMC) $ 82.5m12yrs TC to CMA

CGM

3+3 Gas 12,000 cbm STX, S. Korea 08-12/2014 Chilean (Unigas) $ 33.0m LPG/Ethy

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

1,700

1,720

1,740

1,760

1,780

1,800

80

90

100

110

120

130

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

28-Sep-12 21-Sep-12W-O-W

Change %

Rotterdam 956.0 953.0 0.3%

Houston 1,037.5 1,032.5 0.5%

Singapore 959.0 953.0 0.6%

Rotterdam 625.0 618.0 1.1%

Houston 637.5 637.5 0.0%

Singapore 644.5 641.5 0.5%

Rotterdam 652.0 640.0 1.9%

Houston 667.5 667.5 0.0%

Singapore 663.5 652.5 1.7%

Bunker Prices

MD

O3

80

cst

18

0cs

t

World Economy News

Australia’s central bank cut rates amid fears that the resources boom that has

driven the economy was running out of steam more rapidly than expected,

while consumers and other industries were failing to step into the breach.

The RBA reduced interest rates by 1/4 of 1% on Tuesday ci!ng the slowdown

in China and Europe’s recession in its decision to reduce rates to 3.25%. The

RBA also warned the predicted peak early next year in investment by the

Australian resources sector, which has been the driving force of the econo-

my, may be lower than had been previously expected. (Financial Times)

Energy & Commodi%es

Palm oil plunged to the lowest level in more than two years on concern that

slowing demand will con!nue to cut shipments from the two biggest produc-

ers and swell the global glut. The December-delivery contract lost as much as

3.7 percent to 2,373 ringgit ($777) a metric ton, the lowest price for the most

-ac!ve contract on the Malaysia Deriva!ves Exchange since July 2010. Fu-

tures were at 2,378 ringgit at 3:34 p.m. in Kuala Lumpur, taking the five-day

loss to 10.9 percent, the biggest such decline since 2009. (Bloomberg)

Finance News

More banks are likely to be tempted to sell off the

least a5rac!ve por!ons of their shipping porYolios at

bargain-basement prices, following Lloyds Banking

Group’s recent disposal of $750m from its $8bn book

to Oaktree Capital Management, according to ship

finance professionals.

Although full details have not been published, the

deal is rumoured to have been concluded at some-

thing like 50-55 cents on the dollar, a level that raised

some observers’ eyebrows.

Lloyds is known to have been trying to sell its ship-

ping loans for something like two years and, although

it is understood to have spoken to several of its coun-

terparts, previous nego!a!ons always stalled on

price.

Last month, the bank hit on the radical strategy of

taking whatever it could get for the poorest tranche

and Oaktree stepped up to the plate.

The Los Angeles-based firm pulled off something of a

coup earlier this year when it acquired majority con-

trol of Chapter 11-stricken tanker giant General Mari-

!me for just $375m, much to the irrita!on of previ-

ous investors. (Lloyds List)

CompanyStock

ExchangeCurr. 28-Sep-12 21-Sep-12

W-O-W

Change %Max 39wk Min 39wk

AEGEAN MARINE PETROL NTWK NYSE USD 6.07 6.51 -6.8% 6.43 6.05

BALTIC TRADING NYSE USD 3.23 3.45 -6.4% 3.36 3.15

BOX SHIPS INC NYSE USD 5.95 6.42 -7.3% 6.61 5.95

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 8.17 7.97 2.5% 8.21 8.02

COSTAMARE INC NYSE USD 15.39 15.48 -0.6% 15.54 15.07

DANAOS CORPORATION NYSE USD 3.19 3.23 -1.2% 3.26 3.15

DIANA SHIPPING NYSE USD 6.46 6.95 -7.1% 6.74 6.46

DRYSHIPS INC NASDAQ USD 2.34 2.53 -7.5% 2.51 2.31

EAGLE BULK SHIPPING NASDAQ USD 3.61 3.97 -9.1% 3.80 3.51

EUROSEAS LTD. NASDAQ USD 1.12 1.16 -3.4% 1.23 1.12

EXCEL MARITIME CARRIERS NYSE USD 0.70 0.64 9.4% 0.78 0.70

FREESEAS INC NASDAQ USD 0.24 0.24 0.0% 0.24 0.22

GENCO SHIPPING NYSE USD 3.68 4.05 -9.1% 3.93 3.55

GLOBUS MARITIME LIMITED NASDAQ USD 2.25 2.25 0.0% 2.25 2.15

GOLDENPORT HOLDINGS INC LONDON GBX 44.99 42.50 5.9% 45.00 43.03

HELLENIC CARRIERS LIMITED LONDON GBX 18.80 18.00 4.4% 19.00 18.00

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.67 2.92 -8.6% 2.85 2.60

NAVIOS MARITIME HOLDINGS NYSE USD 3.60 3.93 -8.4% 3.96 3.60

NAVIOS MARITIME PARTNERS LP NYSE USD 14.82 14.95 -0.9% 15.02 14.70

NEWLEAD HOLDINGS LTD NASDAQ USD 0.65 0.66 -1.5% 0.67 0.58

PARAGON SHIPPING INC. NYSE USD 0.43 0.46 -6.5% 0.46 0.42

SAFE BULKERS INC NYSE USD 5.80 6.13 -5.4% 6.04 5.78

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.00 2.10 -4.8% 2.17 1.91

STAR BULK CARRIERS CORP NASDAQ USD 0.60 0.62 -3.2% 0.66 0.58

STEALTHGAS INC NASDAQ USD 6.79 6.87 -1.2% 6.79 6.57

TSAKOS ENERGY NAVIGATION NYSE USD 5.18 5.64 -8.2% 5.60 5.18

TOP SHIPS INC NASDAQ USD 1.11 1.15 -3.5% 1.19 1.11

Maritime Stock Data

Commodi%es & Financials

28-Sep-12 27-Sep-12 26-Sep-12 25-Sep-12 24-Sep-12W-O-W

Change %

10year US Bond 1.640 1.640 1.620 1.680 1.720 -6.8%

S&P 500 1,440.67 1,447.15 1,433.32 1,441.59 1,456.89 -1.3%

Nasdaq 3,116.23 3,136.60 3,093.70 3,117.73 3,160.78 -2.0%

Dow Jones 13,437.13 13,485.97 13,413.51 13,457.55 13,558.92 -1.0%

FTSE 100 5,742.07 5,779.42 5,768.09 5,859.71 5,838.84 -1.9%

FTSE All-Share UK 2,998.86 3,015.83 3,010.10 3,057.52 3,047.13 -1.8%

CAC40 3,354.82 3,439.32 3,414.84 3,513.81 3,497.22 -5.0%

Xetra Dax 7,216.15 7,290.02 7,276.51 7,425.11 7,413.16 -3.2%

Nikkei 8,870.16 8,949.87 8,906.70 9,091.54 9,069.29 -2.6%

Hang Seng 20,840.38 20,762.29 20,527.73 20,698.68 20,694.70 0.5%

Dow Jones 205.08 207.03 204.68 204.35 208.64 -1.6%

$ / € 1.29 1.29 1.29 1.29 1.29 -0.6%

$ / ₤ 1.62 1.62 1.62 1.62 1.62 -0.6%

₤ / € 0.80 0.79 0.80 0.80 0.80 0.1%

¥ / $ 77.84 77.64 77.73 77.81 77.98 -0.5%

$ / Au$ 1.04 1.04 1.04 1.04 1.04 -0.7%

$ / NoK 0.18 0.17 0.17 0.17 0.17 0.2%

$ / SFr 0.94 0.94 0.94 0.94 0.94 0.7%

Yuan / $ 6.30 6.31 6.31 6.31 6.31 -0.2%

Won / $ 1,114.81 1,117.05 1,119.59 1,119.21 1,120.30 -0.4%

$ INDEX 79.50 79.50 79.60 79.20 79.40 0.4%

Market Data

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