Broker’s insight by George Lazaridis

With the Posidonia par�es now over and done with the Greek Shipping com-

munity has to sober up and face the upcoming re-run of the Greek Parlia-

mentary elec�ons this coming Sunday. This has not only been a source of

great uncertainty and instability within Greece over the past month but has

also been se ng the pace and direc�on for economic and poli�cal events

within the rest of Europe. One main area that this in turn has affected ship-

ping has been with regards to new investments. With most of the shipping

financing houses based within Europe, the current status quo has only

pushed their risk-averse a tude further.

How far has the lack of financing been the real cause for a slowdown in in-

vestment choices? The reality is that the freight market has played a much

more prominent role on how en�cing new investment choices are. At the

current asset price levels and despite the immense drop of as much as 30%

that we have witnessed since the same period last year, an investment deci-

sion within shipping s�ll carries a great level of risk. An example of this can

be seen for a Supramax bulker (56,000dwt) built in 2007 which is currently

marketed at a price of around $ 23.5m and is currently receiving $ 11,000 per

day for a period charter rate of 12 months. This is fairly close to the levels

such an investment project would require in order to be able to cover its loan

obliga�ons, running costs and dry docking surveys effec�vely.

This may not seem so unbearable at first sight, as many would argue that

during the course of the investment project it will pass through different

facets of the shipping cycle and will be able to achieve higher earnings then

the current levels. This would essen�ally mean that you would easily be able

to achieve an average earning way above the required breakeven level over

the ten year loan period. What’s more is that the Asset value itself has the

poten�al for large gains, especially when one notes that the current prices

are in the lower range of their historical levels, giving a poten�al of an extra

gain in performance for the project.

All this may well change very quickly as we start to see more moves of a

specula�ve nature by non-tradi�onal shipping investors, just like the recent

order by JP Morgan, which could in turn create and retain an asset bubble.

This coupled with the expecta�ons of a so:ening charter market and a

dragged out period of stagna�on within the industry would leave several

investors exposed to poorly performing investment projects. This scenario

intensifies once most of the specula�ve investment takes the form of new

orders which would mean a prolonged crisis of oversupplied markets.

Taking into considera�on the fact that the Supramax market currently holds

one of the best investment prospects amongst the dry bulk sector, you can

quickly see how this becomes a much bigger problem the industry will need

to deal with. Timing is everything in this industry and at the end of the day if

an investment decision doesn’t generate a sa�sfactory rate of return to its

holder, it’s not worth taking.

Chartering (Wet: So�er- / Dry: So�er- )

With the Bal�c Exchange closed in the start of last week, the market

seemed to lack the boost in ac�vity needed to create any rally in the

markets and bring about a much needed recovery in freight levels. This

lacking demand is expected to worsen further over the next couple of

days, which in return will likely create further gloom in the market. The

BDI closed Friday (08/06/2012) at 877 points, down by 27 points com-

pared to the previous Friday’s levels (01/06/2012). Despite a so:ening

in crude oil prices, there was limited demand witnessed in most major

regions, while the increased availability of tonnage let down most own-

ers who were hoping to sustain the current freight levels. The BDTI Fri-

day (08/06/2012), was at 688, 11 points down and the BCTI at 588, a

decrease of 14 points compared to the previous Monday’s levels

(01/06/2012).

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

The market con�nued to see limited ac�vity in most major sectors, as

interest has remained limited amongst “able” buyers, while many are

seemingly taking a wait and see a tude expec�ng much more promis-

ing opportuni�es to surface over the next couple of months. At the

same �me the poor charter market condi�ons are not proving to cause

any sort of haste, as current levels leave owners with limited margin in

their earnings. On the Tankers side, the Japanese built product tanker

“Maple Galaxy” (19,386dwt-blt 98 Japan) was reported sold this week

for a price of around $ 10.0m. While on the dry bulker the U.K. built

Capesize “Road Runner” (147,048dwt-blt 93 U.K.) was reported sold this

week to Sea Lion Marine at a price of around $ 9.6m via auc�on.

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

With a record number turn up by shipbuilders at the Posidonia Exhibi-

�on last week, one would expect a renewed interest and increased ac-

�vity reported this week. There has not been however the an�cipated

interest shipbuilders were hoping for, as there has s�ll been limited

interest amongst owners for conven�onal vessel types. What’s more is

that we saw an increased level of cri�cism over new orders being

placed, as many owners are fearful of a con�nua�on of the current

oversupply issue well into the next couple of years. This, coupled with

the fact that the new “Eco” designs are s�ll rela�vely fresh in the market

and as of yet have not proved their “worth”, it is likely that unless some-

thing changes drama�cally, new orders will con�nue to trickle in at a

very slow pace for the remaining months of the year. In terms of report-

ed deals this week, most notable was the order placed by US based Al-

terna Capital Partners for four firm MR tankers (49,600dwt) at S. Korea’s

STX Jinhae Shipyard for a price rumoured to be around $ 33.6m each.

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

The market con�nued to deteriorate, with offered prices falling further

week-on-week. The poor overall outlook for the global economy and

slacking demand for steel, has pushed many end buyers to take a more

conserva�ve stance and avoid any speculator buying. The monsoon

weather has not helped either, as many scrapyards have limited their

ac�vity. This in combina�on with the s�ll ample availability of demo

candidates le: many owners willing to accept the much lowered offered

prices in an effort to get rid of their overaged units. Prices have taken a

considerable slide this week, with wet tonnages falling to levels of

around 380-415$/ldt and dry units declining to about 360-395$/ldt.

Weekly Market Report

Week 23|Tuesday 12th June 2012

© Intermodal Research 12/06/2012 2

6080100120140160180200220240260

WS points

CLEAN - WS RATESTC2 TC4 TC6 TC1

20

40

60

80

100

120

140

160

WS points

DIRTY - WS RATESTD3 TD5 TD8 TD4

Jun-12 May-12 ±% 2012 2011 2010

300KT DH 65.0 65.0 0.0% 64.5 77.6 87.2

150KT DH 47.0 46.0 2.2% 46.3 54.4 62.6

105KT DH 32.0 31.0 3.2% 33.0 39.1 44.7

70KT DH 26.0 26.0 0.0% 28.1 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 23 Week 22 ±% Diff 2012 2011

300k 1yr TC 26,500 26,500 0.0% 0 21,946 25,197

300k 3yr TC 29,500 29,500 0.0% 0 27,320 31,681

150k 1yr TC 18,500 18,500 0.0% 0 16,902 19,837

150k 3yr TC 21,500 21,500 0.0% 0 20,635 23,830

105k 1yr TC 14,000 14,250 -1.8% -250 13,978 15,707

105k 3yr TC 16,000 16,500 -3.0% -500 16,243 18,335

70k 1yr TC 13,000 13,000 0.0% 0 13,033 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,341 16,263

45k 1yr TC 14,250 14,250 0.0% 0 14,370 13,918

45k 3yr TC 15,000 15,000 0.0% 0 14,885 14,738

36k 1yr TC 13,000 13,000 0.0% 0 12,587 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,287 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 45 23,436 49 26,894 -8% 34,090 18,217

280k AG-USG 32 8,130 37 13,947 -14% 8,520 2,504

260k WAF-USG 49 30,546 55 38,674 -12% 43,735 25,714

130k MED-MED 73 25,173 75 25,681 -3% 29,432 25,125

130k WAF-USAC 68 16,818 70 16,898 -4% 18,560 13,373

130k AG-CHINA 80 27,987 80 25,610 0% 23,018 14,815

80k AG-EAST 93 14,925 93 13,269 0% 13,366 12,726

80k MED-MED 83 14,208 83 12,874 0% 14,410 13,577

80k UKC-UKC 95 24,121 98 25,070 -3% 20,056 18,604

70k CARIBS-USG 113 18,638 105 14,389 7% 14,414 8,240

75k AG-JAPAN 88 9,490 85 6,342 3% 4,510 10,467

55k AG-JAPAN 105 9,499 100 5,981 5% 5,385 7,768

37K UKC-USAC 125 9,000 138 10,838 -9% 11,349 11,022

30K MED-MED 140 16,804 145 17,685 -3% 17,031 18,458

55K UKC-USG 133 22,603 138 23,236 -4% 16,223 11,266

55K MED-USG 133 20,844 138 21,338 -4% 14,041 9,676

50k CARIBS-USAC 145 22,125 155 24,263 -6% 15,341 10,700

Spot Rates

Vessel Routes

Week 23 Week 22

±%

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Chartering

With an oversupply of open tonnage con�nuing in both the MEG and WAF,

VLCC rates were pushed into further decline. There has been a notable

decline in ac�vity as demand for crude oil weakens. LiOle effect is expected

to be seen by any increase in produc�on levels pushed by the Saudis, as

reserves are s�ll at rela�vely high levels leaving liOle possibility for stockpil-

ing. It has not been all bad news however, as the drop in bunker prices has

le:, for the moment, some breathing space for owners.

Things were not looking much beOer for Suezmaxes either, with limited

reported ac�vity throughout the week. Both the MEG and Black Sea/Med

regions witnessed a drop in freight rates. Things were holding marginally

beOer in the Black Sea/Med region were there were fewer open vessel

crea�ng a downward pressure on the market. This poor performance is

expected to con�nue over the coming week, despite a slight sign of op�-

mism emerging from the WAF market towards Friday’s closure.

Despite the overall quiet condi�ons evident for Aframaxes during the first

half of the week, rates were able to close off the week at levels close to

were they started on Monday. There was some ac�vity seen for mid June

stems helping keep the market buoyant, while the posi�ve performance of

the Caribs market helped boost sen�ment and keep owners more op�mis-

�c with regards to the near term prospects.

Sale & Purchase

The Japanese built product tanker “Maple Galaxy” (19,386dwt-blt 98 Japan)

was reported sold this week for a price of around $ 10.0m.

Wet Market

Indicative Period Charters

- 2+1+1 yrs - 'Targale' 2007 52,000dwt

- DEL WW May 2012 - $ 14,500-14,850-15,200/day - Scorpio

- 12 mos - 'Emerald Star' 2005 37,000dwt

- - $ 12,000/day - Clearlake

© Intermodal Research 12/06/2012 3

Index $/day Index $/day Index Index

BDI 877 904 -3.0% -27 943 1,549

BCI 1,223 $4,255 1,298 $4,814 -5.8% -75 1,547 2,237

BPI 914 $7,266 897 $7,138 1.9% 17 1,109 1,749

BSI 1,000 $10,453 1,023 $10,694 -2.2% -23 926 1,377

BHSI 607 $8,943 621 $9,217 -2.3% -14 521 718

01/06/12

Baltic IndicesWeek 23

08/06/12

Week 22

±%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 12,500 14,000 -11% -1,500 14,205 18,474

170K 1yr TC 13,500 14,500 -7% -1,000 15,657 17,138

170K 3yr TC 15,750 16,250 -3% -500 16,733 17,599

70K 6mnt TC 11,125 11,000 1% 125 12,700 17,238

70K 1yr TC 10,500 10,625 -1% -125 11,146 14,863

70K 3yr TC 11,625 11,625 0% 0 11,901 14,500

52K 6mnt TC 12,500 12,500 0% 0 11,863 15,587

52K 1yr TC 11,000 11,000 0% 0 11,200 14,308

52K 3yr TC 11,500 11,750 -2% -250 12,080 14,046

45k 6mnt TC 10,250 10,500 -2% -250 9,950 13,416

45k 1yr TC 9,500 9,500 0% 0 9,417 12,450

45k 3yr TC 10,250 10,250 0% 0 10,189 12,403

30K 6mnt TC 9,250 9,500 -3% -250 8,532 11,712

30K 1yr TC 9,000 9,250 -3% -250 8,672 11,787

30K 3yr TC 9,750 9,750 0% 0 10,004 12,044

Ha

nd

yma

xH

an

dy

size

Period

2011

Pa

nam

axSu

pra

ma

x

Week

23

Week

22

Cap

esi

ze

2012$/day ±% Diff

Chartering

The market con�nues to deteriorate for Capes for yet another week, with

the 4TC average reaching levels of $4,255 per day. The Atlan�c basin saw

limited fresh inquiry pushing owners to accept ever lower rates. The Pacific

has yet to see any posi�ve light emerge, with slacking ac�vity surfacing

from Australia and limited demand from China again this week. With de-

mand for both iron ore and coal on the slide, we expect these poor condi-

�ons to remain for some �me, with many expec�ng that a notable recovery

can only be seen a:er the summer period.

There was a slight correc�on in Panamax rates this week from the previous

lows hit at the end of the previous week. The improved ac�vity surfacing

mid week helped improve sen�ment amongst owners, while the fact that

toonage lists were able to remain stable allowed owners to push for slightly

beOer levels. However it now looks as though this recovery may well be

short lived as things are expected to slowdown once again over the coming

days as both grain and coal ac�vity becomes more limited.

The overall quiet condi�ons in the market had a significant nega�ve effect

on both the Supras and Handies this week. Freight levels witnessed a fur-

ther decline on a week-on-week basis as limited stems were available in

both basins. Things looked to be holding off slightly beOer in the Atlan�c

were tonnage lists were s�ll holding fairly �ght. The Bal�c is s�ll showing an

overall lack of interest, leaving earnings to fall further.

Sale & Purchase

The U.K. built Capesize “Road Runner” (147,048dwt-blt 93 U.K.) was report-

ed sold this week to Sea Lion Marine at a price of around $ 9.6m via auc-

�on.

In the Handysize segment, we saw the “Susaki Wing” (31,802dwt-blt 97

Japan) being reported sold to Chinese buyers for a price of $ 7.2m basis SS/

DD due in a couple of months.

0

10,000

20,000

30,000

40,000

50,000

$/day

Average T/C Rates

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

Jun-12 May-12 ±% 2012 2011 2010

170k 35.0 35.0 0.0% 36.3 43.5 57.4

75K 23.5 23.5 0.0% 24.9 31.3 39.0

52k 21.5 21.5 0.0% 22.6 25.6 30.2

29K 18.0 18.0 0.0% 20.0 23.5 26.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Dry Market

Indicative Period Charters

- 4/6 mos - 'Lotus Sun' 1995 75,464dwt

- dely Bayuquan ppt - $ 5,950/day - Oldendorff

- 3/5 mos - 'Mandarin Glory' 2009 56,780dwt

- dely PG early July in d/c - $ 10,000/day - Victory Shipping

© Intermodal Research 12/06/2012 4

Secondhand Sales

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

PROD/

CHEMMAPLE GALAXY 19,386 1998

SHIN KURUSHIMA

AKITSU, JapanMitsubishi Nov-13 DH $ 10.0m Undisclosed

PROD/

CHEMKATERINA M 13,937 1989

INCHON

ENGINEERING & S,

S. Korea

Warts i la Jan-13 DH $ 4.4m (APSCO)

Tankers

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

CAPE ROAD RUNNER 147,048 1993HARLAND &

WOLFF, U. K.B&W Jul -14 $ 9.6m

Bangladeshi

(Sea Lion

Marine)

via auction

HANDY SUSAKI WING 31,802 1997HAKODATE DOCK -

HAKODA, JapanMitsubishi Nov-12

4 X 30.5t

CRANES$ 7.2m Chinese logger, SS/DD due

HANDY VERA I 29,998 1992

SZCZECINSKA

STOCZNIA S,

Poland

B&W Sep-13 $ 4.6m Turkish

Bulk Carriers

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

HESPERIA 13,565 1991

RAUMA-REPOLA

OFFSHORE,

Finland

B&W Jul-163 X 35t

CRANES$ 4.0m Russ ians

SINAR BORNEO 4,700 2003ASL BATAM,

Indones iaMAN $ 1.6m

SINAR BARITO 4,700 2003ASL BATAM,

Indones iaMAN $ 1.6m

TRANSNJORD 4,550 1995SIETAS KG,

GermanyMaK Feb-15 $ 1.5m undisclosed

Singaporean (PT

Al fa Trans Raya)

MPP/General Cargo

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

FEEDER CS CHRISTINE 1,388 1992

KVAERNER

WARNOW,

Germany

Sulzer Nov-123 X 40t

CRANES$ 3.6m Indonesian

FEEDER SUMIDA 1,157 1997SHIN KOCHI,

JapanMitsubishi Jul-12

2 X 40t

CRANES$ 6.1m Indonesian

Containers

© Intermodal Research 12/06/2012 5

Secondhand Sales

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

PROGRESS 58,560 2009HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Jan-14 undisclosed

PROSPECT 58,551 2009HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Mar-14 undisclosed

GAS LOMBOK 10,308 2008STX SHIPBUILDING

- BUS, S. KoreaMAN-B&W May-13 $ 31.0m

GAS SUMBAWA 10,282 2008STX SHIPBUILDING

- BUS, S. KoreaMAN-B&W Jul-13 $ 31.0m

GAS HAWK 2,891 1998TACHIBANA,

JapanHanshin Mar-13 $ 6.0m S. Korean

(Avance Gas)

Odjfel l

Payment by shares

in Avance Gas

Gas/LPG/LNG

© Intermodal Research 12/06/2012 6

Week

23

Week

22±% 2012 2011 2010

Bangladesh 400 450 -11.1% 478 523 422

India 415 435 -4.6% 480 511 427

Pakistan 415 435 -4.6% 479 504 425

China 380 400 -5.0% 427 451 383

Bangladesh 380 430 -11.6% 454 498 375

India 395 410 -3.7% 455 484 394

Pakistan 395 410 -3.7% 452 477 388

China 360 380 -5.3% 408 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

350

400

450

500

550

600

$/ldt

Dry Demolition Prices

Bangladesh India Pakistan China

350

400

450

500

550

600

$/ldt

Wet Demolition Prices

Bangladesh India Pakistan China

The market con�nued to deteriorate, with offered prices falling further week

-on-week. The poor overall outlook for the global economy and slacking de-

mand for steel, has pushed many end buyers to take a more conserva�ve

stance and avoid any speculator buying. The monsoon weather has not

helped either, as many scrapyards have limited their ac�vity. This in combi-

na�on with the s�ll ample availability of demo candidates le: many owners

willing to accept the much lowered offered prices in an effort to get rid of

their overaged units. Prices have taken a considerable slide this week, with

wet tonnages falling to levels of around 380-415$/ldt and dry units declining

to about 360-395$/ldt.

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

Handymax bulker ‘Sun Enterprise’ (42,208dwt-8,120ldt-blt 84) which report-

edly received a price of around $ 450/Ldt.

Demoli'on Market

Name Size Ldt Built Yard Type $/ldt Breakers Comments

FRONT CLIMBER 169,146 23,607 1991HYUNDAI Hi, S.

KoreaBULKER $ 400/Ldt Bangladeshi INCLUDING 1,150t bunkers ROB

LINGAYEN STAR 43,609 8,071 1985TSUNEISHI SHBLDG,

JapanBULKER $ 412/Ldt Bangladeshi

SUN ENTERPRISE 42,208 8,120 1984 MITSUI, Japan BULKER $ 450/Ldt Pakistani

OCEAN OLYMPIC 37,963 6,966 1985 KAWASAKI HI, Japan BULKER $ 400/Ldt Bangladeshiincluding 280T IFO & 80T MDO

ROB

LA JOLLA BELLE 35,025 7,755 1982 TOHOKU, Japan BULKER $ 393/Ldt Bangladeshi

UNION TRADER 32,755 9,270 1985 WARSKIEGO, Poland BULKER $ 370/Ldt Chinese

HONG QI 202 18,886 - 1980 JIANGNAN, China BULKER $ 407/Ldt Chinese

HONG QI 203 18,886 - 1980 JIANGNAN, China BULKER $ 407/Ldt Chinese

SAN ANTONIO 9,360 7,398 1988MATHIAS-THESEN,

GermanyREEFER $ 340/Ldt Chinese

Demolition Sales

© Intermodal Research 12/06/2012 7

Week

23

Week

22±% 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% 95 102 103

Suezmax 150k 58.0 58.0 0.0% 58 64 66

Aframax 110k 54.0 53.0 1.9% 51 54 55

LR1 70k 42.0 42.0 0.0% 42 45 46

MR 47k 34.0 34.0 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% 44 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

With a record number turn up by shipbuilders at the Posidonia Exhibi�on last

week, one would expect a renewed interest and increased ac�vity reported

this week. There has not been however the an�cipated interest shipbuilders

were hoping for, as there has s�ll been limited interest amongst owners for

conven�onal vessel types. What’s more is that we saw an increased level of

cri�cism over new orders being placed, as many owners are fearful of a con-

�nua�on of the current oversupply issue well into the next couple of years.

This, coupled with the fact that the new “Eco” designs are s�ll rela�vely fresh

in the market and as of yet have not proved their “worth”, it is likely that

unless something changes drama�cally, new orders will con�nue to trickle in

at a very slow pace for the remaining months of the year.

Worth men�oning this week is the order placed by US based Alterna Capital

Partners for four firm MR tankers (49,600dwt) at S. Korea’s STX Jinhae Ship-

yard for a price rumoured to be around $ 33.6m each.

10

20

30

40

50

60

70

million $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

million $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

4 Tanker 49,600 dwt STX, S.Korea 2013 US based (Alterna Capital) $ 33.6m

1 Bulker 50,000 dwt Hantong, China 1Q2014 undisclosed undisclosed LNG dual-fuel

2 Bulker 36,100 dwt Yangfan, China 2013 Canadian (CSL) undisclosed

2 Bulker 35,000 dwt CSBC, Taiwan 2013 Chinese (China Steel Corp) $ 25.0mdesigned to carry

steel coi ls

1+1 Gas 160,000 cbm Hyundai HI, S.Korea 2015 Greek (Tsakos) $ 208.0m LNG

4 MPP 28,000 dwt Jinhai HI, China 2014 Chinese undisclosed

5 Container 5,100 teuHanjin Subic Bay,

Phil ippines2014 (JV Schulte & JP Morgan) undisclosed

1 Offshore 180,000 cbm DSME, S.Korea 01/2015 Malaysian (Petronas) $ 777.0m FPSO/LNG

1 Offshore 150,000 dwtZhoushan Wison,

China12/2014 US based (Exmar Offshore) undisclosed FPSO/LNG

1 Offshore 4,700 dwt Kleven Verft, Norway 01/2014Norwegian (Ugland

Supplier)undisclosed PSV

2 Offshore 2,200 dwt PT Miclyn, Indonesia 08-10/2013Singapore based (Miclyn

Express)$ 14.0m PSV

Newbuilding Orders

Size

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 wriOen 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

1,520

1,540

1,560

1,580

1,600

1,620

70

80

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

8-Jun-12 1-Jun-12W-O-W

Change %

Rotterdam 861.0 886.0 -2.8%

Houston 885.0 918.0 -3.6%

Singapore 838.0 880.0 -4.8%

Rotterdam 575.5 608.0 -5.3%

Houston 582.5 609.5 -4.4%

Singapore 594.0 624.5 -4.9%

Rotterdam 597.5 634.5 -5.8%

Houston 612.5 639.5 -4.2%

Singapore 608.0 642.0 -5.3%

Bunker Prices

MD

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World Economy News

U.K. lawyers are fielding a flood of ques�ons from mul�na�onal firms as a

government shake-up of visa rules threatens to cut short the careers of top

traders and other execu�ves transferred from overseas. Changes in the past

two years include a five-year cap on how long employees who moved to the

U.K. under the Intra Company Transfer system can stay, and the removal of

their right to seOle permanently. (Bloomberg)

Energy & Commodi'es

Saudi Arabia is on course for a showdown with fellow Opec members at this

week’s mee�ng of the global oil cartel, a:er it called for a higher output tar-

get despite the recent drop in crude prices. “Our analysis suggests that we

will need a higher ceiling than currently exists,” Ali Naimi, Saudi Arabia’s oil

minister, said in an interview with the Gulf Oil Review. (Financial Times)

Finance News

Yesterday, Lloyd’s List broke the news that invest-

ment bank JP Morgan had made a $225m boxship

order.

JP Morgan is no newcomer to the shipping market.

Through its commodi�es trading arm, the bank has

long been ac�ve in tanker chartering, moving oil and

petroleum products around the planet for profit.

S�ll, it is the first �me in recent history that an invest-

ment bank is reported to have invested in self-owned

tonnage.

The ques�on is what to make of this.

Banks tradi�onally steer well clear of shipowning,

because it involves risks that are difficult for them to

oversee. The most likely explana�on for JP Morgan’s

sudden hunger to invest in tonnage is that it has

spoOed an opportunity for asset specula�on.

Op�mists will probably interpret the arrival of smart

money in shipping as a sure sign that the container

market will soon take a turn for the beOer. Perhaps

that is true.

However, the return of specula�ve money to ship-

ping is no cause for celebra�on.

Generally speaking, specula�ve money is a hotbed for

asset bubbles. And sooner or later, bubbles always

burst. (Lloyds List)

CompanyStock

ExchangeCurr. 08-Jun-12 01-Jun-12

W-O-W

Change %Max 23wk Min 23wk

AEGEAN MARINE PETROL NTWK NYSE USD 4.80 4.51 6.4% 5.01 4.51

BALTIC TRADING NYSE USD 3.28 3.64 -9.9% 3.46 3.14

BOX SHIPS INC NYSE USD 7.78 7.89 -1.4% 7.82 7.50

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.10 7.04 0.9% 7.10 6.45

COSTAMARE INC NYSE USD 13.31 12.84 3.7% 13.32 12.88

DANAOS CORPORATION NYSE USD 4.04 3.97 1.8% 4.18 4.03

DIANA SHIPPING NYSE USD 7.32 7.70 -4.9% 7.48 7.31

DRYSHIPS INC NASDAQ USD 2.12 2.12 0.0% 2.12 1.96

EAGLE BULK SHIPPING NASDAQ USD 2.84 2.75 3.3% 3.11 2.74

EUROSEAS LTD. NASDAQ USD 1.16 1.19 -2.5% 1.17 1.16

EXCEL MARITIME CARRIERS NYSE USD 0.67 0.69 -2.9% 0.70 0.66

FREESEAS INC NASDAQ USD 0.68 0.67 1.5% 0.69 0.65

GENCO SHIPPING NYSE USD 3.12 3.02 3.3% 3.19 2.93

GLOBUS MARITIME LIMITED NASDAQ USD 3.12 3.61 -13.6% 3.57 3.12

GOLDENPORT HOLDINGS INC LONDON GBX 67.00 66.90 0.1% 67.00 67.00

HELLENIC CARRIERS LIMITED LONDON GBX 29.00 31.89 -9.1% 31.89 29.00

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.55 2.73 -6.6% 2.78 2.55

NAVIOS MARITIME HOLDINGS NYSE USD 3.28 3.25 0.9% 3.37 3.24

NAVIOS MARITIME PARTNERS LP NYSE USD 13.60 13.21 3.0% 13.81 13.03

NEWLEAD HOLDINGS LTD NASDAQ USD 1.39 1.43 -2.8% 1.50 1.31

OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.35 0.38 -7.9% 0.38 0.35

PARAGON SHIPPING INC. NYSE USD 0.56 0.55 1.8% 0.56 0.52

SAFE BULKERS INC NYSE USD 6.38 6.43 -0.8% 6.42 6.26

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.23 2.17 2.8% 2.39 2.20

STAR BULK CARRIERS CORP NASDAQ USD 0.73 0.76 -3.9% 0.73 0.73

STEALTHGAS INC NASDAQ USD 5.56 5.33 4.3% 5.75 5.25

TSAKOS ENERGY NAVIGATION NYSE USD 5.04 5.05 -0.2% 5.15 5.02

TOP SHIPS INC NASDAQ USD 1.33 1.38 -3.6% 1.40 1.33

Maritime Stock Data

8-Jun-12 7-Jun-12 6-Jun-12 5-Jun-12 4-Jun-12W-O-W

Change %

10year US Bond 1.640 1.650 1.650 1.560 1.530 11.6%

S&P 500 1,325.66 1,314.99 1,315.13 1,285.50 1,278.18 3.7%

Nasdaq 2,858.42 2,831.02 2,844.72 2,778.11 2,760.01 4.0%

Dow Jones 12,554.20 12,460.96 12,414.79 12,127.95 12,101.46 3.6%

FTSE 100 5,435.08 5,447.79 5,384.11 - - 3.3%

FTSE All-Share UK 2,822.17 2,829.37 2,795.61 - - 3.3%

CAC40 3,051.69 3,071.16 3,058.44 2,986.10 2,954.49 3.4%

Xetra Dax 6,130.82 6,144.22 6,093.99 5,969.40 5,978.23 1.3%

Nikkei 8,459.26 8,639.72 8,533.53 8,382.00 8,295.63 0.2%

Hang Seng 18,502.34 18,678.29 18,520.53 18,259.03 18,185.59 -0.3%

Dow Jones 199.20 197.12 198.61 193.90 192.20 2.3%

$ / € 1.25 1.26 1.25 1.24 1.24 1.2%

$ / ₤ 1.54 1.56 1.55 1.53 1.54 0.8%

₤ / € 0.81 0.81 0.81 0.81 0.81 0.4%

¥ / $ 79.32 79.46 79.15 78.24 78.12 1.6%

$ / Au$ 0.98 1.00 0.99 0.97 0.97 2.0%

$ / NoK 0.16 0.17 0.16 0.16 0.16 0.8%

$ / SFr 0.96 0.95 0.96 0.97 0.97 -1.1%

Yuan / $ 6.38 6.36 6.36 6.37 6.36 0.1%

Won / $ 1,174.67 1,169.09 1,175.31 1,180.42 1,180.94 -0.5%

$ INDEX 76.70 76.50 76.80 76.90 82.40 -6.9%

Oil WTI $ 84.10 84.80 85.00 84.30 84.00 1.1%

Oil Brent $ 99.50 99.90 100.60 98.80 98.90 1.1%

Gold $ 1,544.85 1,543.55 1,542.30 1,535.50 1,563.20 -1.2%

Market Data

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Commodi'es & Financials