Broker’s insight By George Dermatis, SnP Broker Torn between a credit crunch and sustainable growth.

In 2012 China expanded at a rate of 7.8%, its worst annual performance in 13 years, raising criticism over the newly appointed government's stance to-wards growth. As the first half of 2013 progressed, market pundits and ana-lysts alike realized that the much trailed big and painful shift in China's GDP model is truly underway...

Any skeptics of the above claim, feel free to ask the Chinese banks who felt the wrath of government regulators last month as the cash crunch in China's interbank lending market has only further exposed the fundamental problem of its economic distortions. For policymakers who are still pondering whether to pursue restructuring or growth, the answer seems more obvious than ever: there can be no growth without restructuring.

Over the past 10 years China has relied on a development model that uses high debt towards large –predominantly state owned - companies to finance growth, with much of the capital invested in unproductive sectors such as property and financial products. Regulators seem to understand that sustain-ability cannot occur without targeting the problems of excess capacity and high debt through the encouragement/development of private enterprises. Support should only follow companies that can survive in a competitive are-na and what better industry to challenge the boundaries of international competition than shipping.

It is easy for shipping analysts and all other parties involved within the mari-time industry to relate themselves with inefficiencies of Chinese finance; whilst “too big to fail” companies keep receiving finance and loans for over leveraged projects based on exuberant asset values, there are serious, con-servative and cash rich private entities that are below the radar of most Chi-nese banks.

Clearly the fewer distortions in an economy, the faster the market can recov-er and adjust. As China is following the same route of most western econo-mies in deleveraging to bring risks down, one must not forget that China is in a much better position now that the USA was 5 years ago; “Insurance compa-nies, social security funds, foreign exchange savings and private savings are all sources that could be tapped to meet the demand for capital”.

Eventually, some measures, including the intensified property tightening campaign, new rules to curb misuse of public funds and the exit from some previous stimulus policies, have taken their toll on growth and whilst analysts argue this is only for the short term, it remains to be seen what the nett effect will be for the long run. Whilst many “western” reports have once again taken their typical stance of overly dramatizing the position of the Chi-nese economy, we must not forget that policymakers in China were the ones who shed light on these issues and look determined in carving the path for future sustainable growth.

My intention to spend more space and analyze my ideas about the need for growth -even at slower pace- in China was abruptly hushed by news this morning that the government of Enrique Pepa Nieto, the President of Mexico has announced its new six-year plan to invest $316bn in new roads, railways, telecoms, infrastructure and significant port overhauling... rings any bells???

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

The Dry Bulk index was back on the rise this week as both Capes and Panamaxes gained from firmer activity in the Atlantic basin. This may well be the last surge before the summer lull so owners are hoping that they can keep the momentum for as long as they can in the hope that they will keep rates fairly buoyant in August. The BDI closed today (16/07/2013) at 1152 points, up by 1 point compared to Monday’s levels (15/07/2013) and an increase of 32 points compared to previous Tues-day’s levels (09/07/2013). Things were not so positive this week in the crude oil carriers, were we saw a drop all around caused by the coincid-ing of decreased demand and firmer bunker prices. The BDTI Monday (15/07/2013), was at 611 points, up by 5 points and the BCTI at 574, an increase of 15 points compared to the previous Monday’s levels (08/07/2013).

Sale & Purchase (Wet: Stable+ / Dry: Firm+ )

There is still a good number of Greek buyers looking to secure any sale candidates that enter the market. The main bulk of interest continues to revolve around dry bulk units, although these past weeks we have wit-nessed a strong surge in concluded deals reported in the Tanker sector as well. On the Tankers side, we had the enbloc sale of the “UACC MAR-WAN” (45,000dwt-blt 12 S. Korea) AND “UACC MUHARRAQ” (45,000dwt-blt 12 S. Korea) which were picked up by Greek buyers at a price of around $ 33.5m each. On the dry bulker side, we had the sale of the Japanese built “Pruva” (74,137dwt-blt 95 Japan), which was picked up for a competitive price of $ 7.5m by Chinese buyers.

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

Containers and Bulkers are still they main menu item circulating the market these days. In the former we saw a noteworthy move from S. Korean investors to secure some of the undeclared options left by Maersk and at the same time secured a lucrative long-term TC from one of Maersk competitors, namely MSC. In the Dry Bulker sector attention was thrown towards the larger sizes this week, with a number of owners opting to pen new orders for large ore carriers. Granted the one from Polaris was on the back of a long-term COA, nevertheless it seems that there is too much optimism being placed in this size group and probably too quickly, while in the back drop you have reports of slowing Chinese growth and the end of the commodities super cycle. In terms of con-cluded deals, Hong Kong Asset Management was reportedly penned the three VLCV (18,000teu) Triple-E options that were not exercised by Maersk. These three are scheduled for delivery between February and July 2015 and at a price of US$ 141.0m each. They also managed to se-cure 12-17 years time charter for all three units at rates of between US$ 53,000-55,000/day from MSC.

Demolition (Wet: Softer- / Dry: Softer- )

With the heavy monsoon rain continuing to cover most of the Indian Sub-Continent things inevitably slowed down further. As is typical during these seasonal weather patterns buyers are holding back any further purchases while also trying to get rid of any previous purchases made as quickly as possible. It was all left to China this week to cover the slack and support the market. Things did look a bit more optimistic demand wise, although it was nowhere near enough to keep prices afloat. Turkey also looked to be a bit more bullish this week snapping up a couple of units and even firming its offered price levels. Prices overall this week for wet tonnage were at around 320-415$/ldt and dry units received about 300-395$/ldt.

Weekly Market Report

Issue: Week 28 | Tuesday 16th July 2013

© Intermodal Research 16/07/2013 2

2013 2012

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 47 31,642 48 32,485 -2.6% 7,501 21,835

280k MEG-USG 28 18,872 25 12,119 55.7% -2,035 1,604

260k WAF-USG 45 26,657 45 27,334 -2.5% 12,011 31,457

130k MED-MED 55 9,284 55 9,843 -5.7% 8,761 22,121

130k WAF-USAC 55 12,053 55 12,347 -2.4% 5,791 13,373

130k BSEA-MED 53 7,895 53 8,380 -5.8% 8,761 22,121

80k MEG-EAST 74 8,651 80 11,780 -26.6% 5,428 14,182

80k MED-MED 70 8,749 78 13,810 -36.7% 7,316 13,700

80k UKC-UKC 80 4,222 80 4,919 -14.2% 7,648 18,517

70k CARIBS-USG 80 8,040 80 8,591 -6.4% 7,185 12,325

75k MEG-JAPAN 73 8,542 73 8,699 -1.8% 6,313 11,258

55k MEG-JAPAN 75 4,813 78 5,847 -17.7% 6,967 10,867

37K UKC-USAC 135 13,073 110 7,869 66.1% 8,524 9,251

30K MED-MED 118 8,121 118 8,501 -4.5% 10,944 19,062

55K UKC-USG 113 18,003 110 17,639 2.1% 8,406 16,571

55K MED-USG 113 16,583 110 16,055 3.3% 6,947 14,735

50k CARIBS-USAC 110 14,104 108 13,808 2.1% 8,049 13,028

Vessel Routes

Week 28 Week 27$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Jul-13 Jun-13 ±% 2013 2012 2011

300KT DH 55.0 55.0 0.0% 55.9 62.9 77.6

150KT DH 40.0 40.0 0.0% 40.3 44.9 54.4

110KT DH 28.0 29.6 -5.5% 28.4 31.2 39.1

75KT DH 27.0 27.0 0.0% 26.2 26.7 35.2

52KT DH 25.0 24.6 1.5% 24.7 24.6 28.4

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

With bunker costs on the rise once again things turned a little sour this week for VLCCs which saw an end to their recent rise in freight rates. It had been a good run up to now and although we witnessed earnings drop slightly, with tonnage lists still holding so tight there is some hope that there may well be some further improvement over the next couple of days. In terms of demand however, there is less optimism of an upturn as the volume of inquiries seen over previous weeks has all evaporated.

Stability returned once again to the Suezmax market and with it another drop in freight rates. With most of July now seemingly covered fro the WAf area it seems that there is only one way for the market to move and that is down. The Black Sea/Med was also a bit quieter, with rates dropping here at an even faster pace then what was seen in the WAF.

With less stems all around the Afras closed another week in the red. Black Sea/Med suffered from slow demand and pilling on tonnage. In the North Sea/Baltic regions owners were still trying to find stable ground from which they could halt any further slide in freight levels. Limited activity was also noted in the Caribs causing position lists to start to swell, however the main enemy here was the rising bunker prices, as rates in terms of worldscale points stayed on par with what we were seeing a week prior.

Sale & Purchase

In the Suezmax segment this week, we had the sale of the “ELISEWIN” (149,991dwt-blt 02 Japan), which was rumored sold at a price of $ 24.5m to Greek buyers.

In the MR segment we had the enbloc sale of the “UACC MAR-WAN” (45,000dwt-blt 12 S. Korea) AND “UACC MUHARRAQ” (45,000dwt-blt 12 S. Korea) which were picked up by Greek buyers at a price of around $ 33.5m each.

Wet Market

Indicative Period Charters

- 12 mos - 'Pretty Scene' 2006 51,218dwt

- $ 13,500/day - Parakou Shpg

- 30 days - 'Nicos Tomasos ' 2002 37,000dwt

- $16,950/day - MSC

20

40

60

80

100

120

140

160

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 28 Week 27 ±% Diff 2013 2012

300k 1yr TC 18,200 18,200 0.0% 0 19,214 22,375

300k 3yr TC 22,200 22,200 0.0% 0 24,218 27,195

150k 1yr TC 16,200 16,200 0.0% 0 16,286 17,606

150k 3yr TC 17,700 17,700 0.0% 0 18,682 21,152

110k 1yr TC 13,200 13,200 0.0% 0 13,491 13,889

110k 3yr TC 14,950 14,950 0.0% 0 15,263 16,070

75k 1yr TC 14,950 14,950 0.0% 0 14,973 13,245

75k 3yr TC 15,700 15,700 0.0% 0 15,521 14,368

52k 1yr TC 14,200 14,200 0.0% 0 14,321 13,764

52k 3yr TC 15,200 15,200 0.0% 0 14,941 14,589

36k 1yr TC 12,950 13,200 -1.9% -250 13,116 12,567

36k 3yr TC 13,700 13,700 0.0% 0 13,691 13,378

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

6080

100120140160180200220240260

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 16/07/2013 3

0

500

1,000

1,500

2,000

2,500

3,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000$

/da

y

Average T/C Rates

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

170K 6mnt TC 17,200 15,700 9.6% 1,500 12,267 13,549

170K 1yr TC 14,200 13,200 7.6% 1,000 12,446 13,885

170K 3yr TC 14,700 14,700 0.0% 0 13,879 15,282

76K 6mnt TC 10,825 9,950 8.8% 875 10,274 11,003

76K 1yr TC 8,825 8,450 4.4% 375 8,959 9,906

76K 3yr TC 9,575 9,450 1.3% 125 9,437 10,888

55K 6mnt TC 10,950 10,950 0.0% 0 10,642 11,176

55K 1yr TC 9,700 9,700 0.0% 0 9,539 10,330

55K 3yr TC 9,950 9,950 0.0% 0 9,950 11,195

45k 6mnt TC 8,950 9,200 -2.7% -250 8,914 9,375

45k 1yr TC 8,450 8,450 0.0% 0 8,236 8,849

45k 3yr TC 8,950 8,950 0.0% 0 8,896 9,575

30K 6mnt TC 7,700 7,950 -3.1% -250 7,468 8,255

30K 1yr TC 7,950 8,200 -3.0% -250 7,834 8,424

30K 3yr TC 8,700 8,700 0.0% 0 8,700 9,450

Han

dym

axH

and

ysiz

e

Period

2012

Pan

amax

Sup

ram

ax

Week

28

Week

27

Cap

esi

ze

2013$/day ±% Diff

Chartering

It may have been a slow start to the week for Capes, but that all changed

on Wednesday were another influx of fresh inquiries filled the market with

further optimism and pushed rates once again to above 2,000 points. It was

the Atlantic basin which showed the first positive signs with rates from

brazil noting significant gains. It wasn’t long however for the Pacific to fol-

low through, with Aussie rates starting to gain considerably come Thrusday.

Owners seem to have reacted fairly quickly picking up all the momentum

they could in hope that this would provide a safer “cushion” for the coming

months.

Panamax did seem to hold uch promise early on in the week, but thanks to

increased activity in the Atlantic, improved position lists and an overspill of

optimism from the larger Capes, things started to improve considerably

fairly quickly. The Pacific did not show as much promise, nevertheless in-

quiries were sufficient in the basin for rates to improve and create further

optimism amongst owners.

Rates for Supras and Handies proved to be more sluggish this week despite

the overall good activity levels reported. It seemed that there was a bit of a

panic amongst owners who were in a haste to book their vessels prior to

the summer lull period in hope that they can avoid being open and looking

for cargoes next month. This gave the signal for charterers to squeeze as

much as they could and push rates back to were they were back in mid-

May.

Sale & Purchase

In the Panamax sector, we had the sale of the Japanese built “Pruva” (74,137dwt-blt 95 Japan), which was picked up for a competitive price of $ 7.5m by Chinese buyers.

In the Handymax sector we had the rumors that the “ROBERT SCHULTE” (48,225dwt-blt 97 Japan), was sold to Greek buyers for $ 8.5m.

Jul-13 Jun-13 ±% 2013 2012 2011

180k 34.0 34.0 0.0% 33.8 34.6 43.5

76K 22.0 21.5 2.3% 19.7 22.7 31.3

56k 21.5 21.0 2.5% 20.1 23.0 28.1

30K 18.0 17.9 0.8% 17.5 18.2 23.5

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

-4/7 mos - 'Navios Antares' 2010 169,053dwt

- dely Tianjin 12/14 July - $ 13,400/day - Clearlake

- 5/8 mos - 'Gerasimos' 1996 70,296dwt

- dely Taizhou in d/c 15/16 July - $ 7,500/day - Noble

Dry Market

Index $/day Index $/day Index Index

BDI 1,149 1,099 50 866 921

BCI 2,058 $14,182 1,929 $12,737 129 11.3% 1,437 1,571

BPI 1,097 $8,725 1,008 $8,013 89 8.9% 942 965

BSI 897 $9,376 924 $9,664 -27 -3.0% 841 906

BHSI 561 $8,211 568 $8,324 -7 -1.4% 507 518

05/07/2013

Baltic IndicesWeek 28

12/07/2013Week 27

Point

Diff

2013 2012$/day

±%

© Intermodal Research 16/07/2013 4

Secondhand Sales

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

VLCC PERSEUS TRADER 299,992 2003UNIVERSAL SHBLDG -

TSU, JapanSulzer DH undisclosed undisclosed

SUEZ ELISEWIN 149,991 2002NKK CORP - TSU,

JapanSulzer Jul -17 DH $ 24.5m Greek

incl financing,

Epoxy coated

MR UACC MARWAN 45,000 2012SHINASB YARD CO

LTD, S. KoreaMAN-B&W DH $ 33.5m Epoxy coated

MRUACC

MUHARRAQ45,000 2012

SHINASB YARD CO

LTD, S. KoreaMAN-B&W DH $ 33.5m Epoxy coated

PROD/

CHEMCRISTALLO 8,091 1991

APUANIA NUOVI,

Ita lyWarts i la May-16 DH undisclosed undisclosed StSt tanks

Tankers

Greek

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

PMAX PRUVA 74,137 1995

HASHIHAMA

SHBLDG - TAD,

Japan

B&W Feb-15 $ 7.5m Chinese

SMAX DARYA BRAHMA 56,056 2006MITSUI TAMANO,

JapanMAN-B&W May-16

4 X 30,5t

CRANES$ 20.1m undisclosed

SMAX OCEAN MORNING 52,404 2001

TSUNEISHI

SHBLDG - FUK,

Japan

MAN-B&W May-164 X 30t

CRANES$ 13.3m Bangladeshi

HMAX ROBERT SCHULTE 48,225 1997

OSHIMA

SHIPBUILDING,

Japan

Mitsubishi Aug-174 X 25t

CRANES$ 8.5m Greek on subs

HANDYCLIPPER

HARMONY31,887 2009

HAKODATE DOCK -

HAKODA, JapanMitsubishi Jul -14

4 X 30t

CRANES$ 20.5m

HANDY CLIPPER HOPE 31,883 2010HAKODATE DOCK -

HAKODA, JapanMitsubishi Mar-15

4 X 30t

CRANES$ 20.5m

Bulk Carriers

U.S. l i s ted

(Baltic Trading)

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

CHUN YEON 6,640 1990 HIGAKI, Japan Mitsubishi May-142X30t DRS,

2X20t DRSundisclosed undisclosed

EE ENDEAVOUR 4,625 2001 MORSKOY, Russ ia MaK Oct-172 X 36t

CRANESundisclosed undisclosed

ZITA 4,490 1997 SLIP, Russ ia MaK Dec-17 $ 1.8m undisclosed

NORDKYN 1,797 1979 FOSEN, Norway Warts i la Jun-131 X 40t

CRANESundisclosed undisclosed SS/DD due

MPP/General Cargo

© Intermodal Research 16/07/2013 5

Secondhand Sales

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

FEEDER CRUX J 1,209 2003

JIANGSU

YANGZIJIANG SH,

China

B&W Mar-182 X 45t

CRANESundisclosed undisclosed

FEEDER VIYA 1,170 1997

SZCZECINSKA

STOCZNIA S,

Poland

MAN Apr-132 X 40t

CRANESundisclosed Turkish

FEEDER PETALIDI 1,156 1993

SZCZECINSKA

STOCZNIA S,

Poland

B&W Jan-143 X 40t

CRANES$ 3.0m Greek

FEEDER CAPE SPENCER 1,055 1996

SZCZECINSKA

STOCZNIA S,

Poland

MAN-B&W Jul-162 X 40t

CRANESundisclosed Swiss

FEEDER HERM KIEPE 942 1997SIETAS KG,

GermanyMaK Nov-17

2 X 45t

CRANES$ 4.9m German sale via bank

FEEDER CLONLEE 508 1996SIETAS KG,

GermanyMWM Jan-16 $ 1.0m Irish sale via bank

Containers

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

LPG HARLEQUIN 4,771 2006

SANUKI

SHIPBUILDING &,

Japan

MAN-B&W Sep-16 5,036 undisclosedGreek

(Stealthgas)

Gas/LPG/LNG

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

OSVMAERSK

RETRIEVER1,965 1979

ODENSE LINDO,

DenmarkMaK 12,820 Mar-14 undisclosed undisclosed

Offshore

© Intermodal Research 16/07/2013 6

Containers and Bulkers are still they main menu item circulating the market these days. In the former we saw a noteworthy move from S. Korean inves-tors to secure some of the undeclared options left by Maersk and at the same time secured a lucrative long-term TC from one of Maersk competitors, namely MSC. In the Dry Bulker sector attention was thrown towards the larger sizes this week, with a number of owners opting to pen new orders for large ore carriers. Granted the one from Polaris was on the back of a long-term COA, nevertheless it seems that there is too much optimism being placed in this size group and probably too quickly, while in the back drop you have reports of slowing Chinese growth and the end of the commodities super cycle.

Last week, Hong Kong Asset Management was reportedly penned the three VLCV (18,000teu) Triple-E options that were not exercised by Maersk. These three are scheduled for delivery between February and July 2015 and at a price of US$ 141.0m each. They also managed to secure 12-17 years time charter for all three units at rates of between US$ 53,000-55,000/day from MSC.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

28

Week

27±% 2013 2012 2011

Capesize 180k 47.0 47.0 0.0% 46 47 53

Panamax 77k 25.5 25.3 1.0% 25 27 33

Supramax 58k 25.0 24.8 1.0% 24 26 30

Handysize 35k 21.5 21.3 1.2% 21 22 25

VLCC 300k 89.0 89.0 0.0% 89 96 102

Suezmax 160k 55.3 55.3 0.0% 55 59 64

Aframax 115k 47.5 47.5 0.0% 46 51 54

LR1 75k 40.5 40.5 0.0% 40 43 45

MR 52k 33.0 33.0 0.0% 33 35 36

LNG 150K 185 185 0.0% 181 186 187

LGC LPG 80k 70.3 70.0 0.4% 69 72 73

MGC LPG 52k 62.3 61.7 0.9% 61 63 64

SGC LPG 23k 40.8 40.8 0.0% 40 44 46

Vessel

Indicative Newbuilding Prices (million$)

Gas

Bu

lke

rsTa

nke

rs

10

30

50

70

90

110

mil

lion

$Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

4+2 Tanker 111,000 dwtCosco Zhoushan,

China2015 Norwegian (Frontline 2012) $ 45.0m

3 Bulker 250,000 dwtHyundai Samho,

S.Korea2014-2015 S. Korean (Polaris Shpg) $ 52.0m

on the back of long-

term COA

1 Bulker 207,000 dwtHyundai Samho,

S.Korea2014-2015 S. Korean (Polaris Shpg) $ 49.0m

on the back of long-

term COA

2 Bulker 180,000 dwt SWS, China 2015-2016 Greek (Star Bulk Carriers) undisclosed

4 Bulker 150,000 dwt Hanjin, S. Korea 2015-2016S. Korean (Hyundai

Merchant Marine)$ 44.0m

3 Container 18,000 teu Daewoo, S.Korea 02-07/2015 Hong Kong based $ 141.0m long-term TC to MSC

2 Container 9,400 teu Jiangnan SY, China 2015 Swiss (MSC) $ 82.0m

4 Container 9,400 teuShanghai Jiangnan,

China2015-2016 Swiss (MSC) $ 82.0m

3 Container 1,540 teu Hyundai Mipo, S.Korea 2015-2016 U.S. (Dole Fresh Fruit) $ 55.0mfully reefer, gantry

crane

1 Container 1,000 teu Daesun S.B., S. Korea 2015S. Korean (Dong Jin

Shipping)undisclosed

3 Offshore 15,000 grtIHC Merwede,

Netherlands2016-2017 U.K. (Subsea 7) undisclosed Pipe Layer

1 Passenger 6,000 grt Fincantieri Sestri, Italy 07/2016 U.S. (Regent Seven Seas) $ 450.0m cruise

Newbuilding Orders Size

© Intermodal Research 16/07/2013 7

With the heavy monsoon rain continuing to cover most of the Indian Sub-Continent things inevitably slowed down further. As is typical during these seasonal weather patterns buyers are holding back any further purchases while also trying to get rid of any previous purchases made as quickly as pos-sible. It was all left to China this week to cover the slack and support the mar-ket. Things did look a bit more optimistic demand wise, although it was no-where near enough to keep prices afloat. Turkey also looked to be a bit more bullish this week snapping up a couple of units and even firming its offered price levels. Prices overall this week for wet tonnage were at around 320-415$/ldt and dry units received about 300-395$/ldt.

One of the highest prices reported paid this week was by Bangladeshi break-ers for the tanker ‘KONOOZ ALKHALIG’ (46,100dwt-10,730ldt-blt 85), which received a price of $ 450/ldt.

Demolition Market

Week

28

Week

27±% 2013 2012 2011

Bangladesh 415 420 -1.2% 427 440 523

India 410 415 -1.2% 433 445 511

Pakistan 415 420 -1.2% 429 444 504

China 320 320 0.0% 375 384 451

Bangladesh 395 405 -2.5% 407 414 498

India 390 395 -1.3% 413 419 484

Pakistan 395 405 -2.5% 411 416 477

China 300 300 0.0% 358 365 432

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

550$

/ld

t

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

OSX 4 301,862 41,261 1994 ODENSE, Denmark TANKER $ 395/Ldt undisclosed as-is Indonesia

OSX 5 301,862 41,261 1995 ODENSE, Denmark TANKER $ 395/Ldt undisclosed as-is Indonesia

NAVIGA 150,841 21,751 1998 NKK CORP, Japan TANKER $ 440/Ldt Pakistani

IRINI 69,734 9,988 1988 IMABARI, Japan BULKER $ 405/Ldt Bangladeshi

IRINI 47,665 8,488 1987 HUDONG, China BULKER $ 407/Ldt Indian

KONOOZ ALKHALIG 46,100 10,730 1985 BOELWERF, Belgium TANKER $ 450/Ldt Bangladeshi

BALTIC PEARL 38,787 10,688 1982 SANOYASU, Japan GC $ 418/Ldt Bangladeshi full spares

PROVIDER 38,594 7,754 1985KOYO MIHARA,

JapanBULKER $ 411/Ldt Indian incl abt 200t bunkers ROB

MALYOVITZA 25,590 7,819 1983GEORGI DIMITROV,

BulgariaBULKER $ 389/Ldt Indian

TRINIDAD 19,508 5,026 1977HITACHI ZOSEN,

JapanBULKER $ 390/Ldt Indian

MINALAND 17,160 6,970 1978HAUGESUND,

NorwayGC $ 409/Ldt Bangladeshi

HOEGH TRAPEZE 15,500 10,100 1983 TSUNEISHI, Japan RORO $ 380/Ldt China green recycling

Demolition Sales

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without mak-ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production 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 information 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 written authorization of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr

Analysts: Mr. George Lazaridis | g.lazaridis@intermodal.gr

Ms. Eva Tzima | e.tzima@intermodal.gr

Finance News

“OSG red again

Overseas Shipholding Group continued to burn cash in May to extend a run of losses at the tanker owner.

Having taken its post-bankruptcy deficit past $50m in April it shed a further $1.8m in May, SEC filings show.

OSG saw costs of $79.16m edge a fraction ahead of revenue in the month of May, to leave it marginally red on an operating level.

It has now lost $54.04m between its Chapter 11 filing in mid November 2012 and the end of May 2013.

OSG has spent $14.55m on legal and financial experts since seeking court protection.

Its lawyers Cleary Gottlieb Steen & Hamilton have collected fees of $8.15m during that period, while another law firm Akin Gump Straus Hauer & Feld has been paid $2.58m.

FTI Consulting, which was also involved in the BLT restructuring, has received $1.56m for its efforts.” (Trade Winds)

Commodities & Ship Finance

12-Jul-13 11-Jul-13 10-Jul-13 9-Jul-13 8-Jul-13W-O-W

Change %

10year US Bond 2.600 2.570 2.680 2.630 2.640 -4.1%

S&P 500 1,680.19 1,675.02 1,652.62 1,652.32 1,640.46 3.0%

Nasdaq 3,600.08 3,578.30 3,520.76 3,504.26 3,484.83 3.5%

Dow Jones 15,464.30 15,460.92 15,291.66 15,300.34 15,224.69 2.2%

FTSE 100 6,544.94 6,543.41 6,504.96 6,513.08 6,450.07 2.7%

FTSE All-Share UK 3,468.85 3,465.92 3,444.95 3,451.35 3,417.84 2.7%

CAC40 3,855.09 3,868.98 3,840.53 3,843.56 3,823.83 2.7%

Xetra Dax 8,212.77 8,158.80 8,066.48 8,057.75 7,968.54 5.2%

Nikkei 14,506.25 14,472.58 14,416.60 14,472.90 14,109.34 1.4%

Hang Seng 21,277.28 21,437.49 20,904.56 20,683.01 20,582.19 2.0%

DJ US Maritime 291.55 292.56 290.41 292.12 287.24 2.2%

$ / € 1.30 1.31 1.28 1.28 1.28 1.6%

$ / ₤ 1.51 1.51 1.49 1.49 1.49 1.2%

¥ / $ 99.39 99.03 100.38 101.10 101.19 -1.4%

$ / NoK 0.16 0.16 0.16 0.16 0.16 2.5%

Yuan / $ 6.14 6.14 6.14 6.14 6.14 0.2%

Won / $ 1,125.25 1,128.15 1,138.33 1,144.50 1,146.66 -1.5%

$ INDEX 87.10 87.00 88.10 88.70 88.50 -1.7%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,260

1,340

1,420

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

12-Jul-13 5-Jul-13W-O-W

Change %

Rotterdam 892.5 890.0 0.3%

Houston 1,009.0 993.5 1.6%

Singapore 912.0 896.5 1.7%

Rotterdam 603.0 583.0 3.4%

Houston 589.5 572.0 3.1%

Singapore 596.5 591.5 0.8%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 12-Jul-13 05-Jul-13

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 8.86 9.23 -4.0%

BALTIC TRADING NYSE USD 3.72 3.68 1.1%

BOX SHIPS INC NYSE USD 3.63 3.60 0.8%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 9.67 9.44 2.4%

COSTAMARE INC NYSE USD 18.28 17.47 4.6%

DANAOS CORPORATION NYSE USD 4.38 4.45 -1.6%

DIANA SHIPPING NYSE USD 10.01 9.89 1.2%

DRYSHIPS INC NASDAQ USD 1.91 1.80 6.1%

EAGLE BULK SHIPPING NASDAQ USD 3.41 3.26 4.6%

EUROSEAS LTD. NASDAQ USD 1.03 1.03 0.0%

FREESEAS INC NASDAQ USD 0.39 0.43 -9.3%

GENCO SHIPPING NYSE USD 1.73 1.68 3.0%

GLOBUS MARITIME LIMITED NASDAQ USD 2.02 2.02 0.0%

GOLDENPORT HOLDINGS INC LONDON GBX 30.00 30.25 -0.8%

HELLENIC CARRIERS LIMITED LONDON GBX 19.00 20.00 -5.0%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.68 3.47 6.1%

NAVIOS MARITIME HOLDINGS NYSE USD 5.49 5.56 -1.3%

NAVIOS MARITIME PARTNERS LP NYSE USD 14.94 14.36 4.0%

NEWLEAD HOLDINGS LTD NASDAQ USD 0.16 0.22 -27.3%

PARAGON SHIPPING INC. NYSE USD 4.05 4.15 -2.4%

SAFE BULKERS INC NYSE USD 5.10 5.03 1.4%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.40 1.47 -4.8%

STAR BULK CARRIERS CORP NASDAQ USD 5.50 5.44 1.1%

STEALTHGAS INC NASDAQ USD 10.25 10.74 -4.6%

TSAKOS ENERGY NAVIGATION NYSE USD 4.67 4.22 10.7%

TOP SHIPS INC NASDAQ USD 1.55 1.42 9.2%

Maritime Stock Data