shipping newsletter week4

7/28/2019 Shipping Newsletter Week4

1/28

Tuesday, January 22 , 2013 (Week 4)

IN THE NEWS Latest Company News Select Dividend Paying Shipping Stocks

CAPITAL MARKETS DATA Currencies, Commodities & Indices Shipping Equities - Weekly Review

Weekly Trading Statistics, by Knight Capital

SHIPPING MARKETS Managed Service Market Report, by Cleartrade Dry Bulk Market - Week Highlights, by Intermodal Shipbrokers Weekly Tanker Market Opinion, by Poten & Partners Dry Bulk Market - Week Highlights, by Intermodal Shipbrokers Container Market - Weekly Highlights, by Braemar Seascope Tanker Market - Weekly Highlights, by Charles R. Weber Company S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny

TERMS OF USE & DISCLAIMER

CONTENT CONTRIBUTORS

Capital Link ShippingWeekly Markets Report


2/28

New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526

London - Longcroft House,2-8 Victoria Avenue, London, EC2M 4NS, U.K Tel. +44(0) 203 206 1320 Fax. +44(0) 203 206 1321Athens - 40, Agiou Konstantinou Str, Suite A 5, 151-24 Athens, Greece Tel. +30 210 6109 800 Fax +30 210 6109 801

Capital Link - New York - London - Athenswww.capitallink.com

www.capitallinkforum.co

www.CapitalLinkShipping.comA web based resource that provides information on the major shipping and stock mark

Investor Relations & Financial Advisory

indices, as well as on all shipping stocks. It also features an earnings and conference ca

calendar, industry reports from major industry participants and interviews with CEOs, analys

and other market participants.

www.CapitalLinkWebinars.comSector Forums & Webinars: Regularly, we organize panel discussions among CEOs, analyst

bankers and shipping industry participants on the developments in the various shipping secto

(containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity

Shipping Today, Scrapping, etc).

Capital Link Investor Shipping ForumsIn New York, Athens and London bringing together investors, bankers, financial advisors, liste

companies CEOs, analysts, and shipping industry participants.

www.MaritimeIndices.comCapital Link Maritime Indices: Capital Link developed and maintains a series of stock mark

maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Inde

CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fle

Index, CL Shipping MLP Index Bloomberg page: CPLI. The Indices are also distribute

through the Reuters Newswires and are available on Factset.

Capital Link Shipping Weekly Markets ReportWeekly distribution to an extensive audience in the US & European shipping, financial an

investment communities with updates on the shipping markets, the stock market and liste

company news.

Operating more like a boutique investment bank rather than a traditional Investor Relations firm

our objective is to assist our clients enhance long term shareholder value and achieve prope

valuation through their positioning in the investment community. We assist them to determin

their objectives, establish the proper investor outreach strategies, generate a recurrin

information flow, identify the proper investor and analyst target groups and gather investor an

analyst feedback and related market intelligence information while keeping track of their pe

group. Also, to enhance their profile in the financial and trade media.

Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on o

in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to th

shipping industry becoming the largest provider of Investor Relations and Financial Communications services t

international shipping companies listed on the US and European Exchanges. Capital Link's headquarters are in New Yor

with a presence in London and Athens.

In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge

shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as

...Linking Shipping and Investors Across the Globe

Capital Link Shipping


3/28

Tuesday, January 22, 2013 (WCapital Link ShippingWeekly Markets Report

Page 3

IN THE NE

Latest Company NewsMonday, January 14, 2013

DryShips Inc. Reports Sale of Two Newbuilding SuezmaxesDryShips Inc. announced the sale, via novation, of two of its tankersunder construction at Samsung Heavy Industries, Esperona andBlanca, to a third-party buyer. Under the terms of the two novationagreements dated December 27, 2012, the buyer assumes allrights, benets, liabilities and obligations under both shipbuildingcontracts, in exchange for cash consideration of $21.4 million(that is, $10.7 million for each vessel) paid by the Company to theBuyer. As a result of this transaction, Dryships is released fromall its obligations under the shipbuilding contracts, both as thecontracting party and as a guarantor.

Ocean Rig UDW Inc. Announces Signing of Contract for theEirik RaudeOcean Rig UDW Inc. announced that it has signed denitivedocumentation, following the previously announced Letter of Intent,

for one of its semi-submersible drilling rigs, the Eirik Raude, withan oil major. The drilling contract is for a one-well program, with anestimated duration of up to 6 months, for drilling offshore Ireland,with an estimated backlog of approximately $112 million, includingmobilization and demobilization. The rig is scheduled to commencethis contract in the second quarter of 2013, in direct continuationfrom its previous contract in West Africa.

Teekay Offshore Repurchases a Portion of Existing NorwegianBonds in Connection With New Norwegian Bond IssuanceTeekay Offshore Partners L.P. announced that in connection withthe recently completed NOK 1,300 million bond issuance in theNorwegian bond market, the Partnership repurchased NOK 388.5million of the existing NOK 600 million Teekay Offshore bond issue

TOP01 (ISIN:NO 001 059142.3) maturing 29 November 2013 at aprice of 102.50 percent of the principal amount of the repurchasedbonds.

Tuesday, January 15, 2013

Diana Shipping Inc. Announces Time Charter Contract for m/vNirefs With Intermare and m/v Myrto With CargillDiana Shipping Inc. announced that it has entered into a timecharter contract with Intermare Transport GmbH, Hamburg, througha separate wholly-owned subsidiary, for one of its Panamax drybulk carriers, the m/v Nirefs. The gross charter rate is US$8,000per day, minus a 5% commission paid to third parties, for a period

of minimum eighteen (18) months to maximum twenty-four (24)months. The charter is expected to commence at the end ofJanuary 2013.

Seaspan Declares Quarterly Dividends on Series C and SeriesD Preferred SharesSeaspan Corporation announced that the Companys Board ofDirectors has declared a cash dividend of $0.59375 per share onits Series C preferred shares for the period from October 30, 2012to January 29, 2013, and a cash dividend of $0.25948 per shareon its Series D preferred shares (NYSE:SSW.PR.D) for the periodfrom December 13, 2012 to January 29, 2013. The dividends willbe paid on January 30, 2013 to all Series C and Series D preferredshareholders of record as of January 29, 2013.

Wednesday, January 16, 2013

Seaspan Signs Newbuilding Contracts for Fuel Efcient

SAVER Design 14,000 TEU Class Vessels at HHISeaspan Corporation announced that it has signed contracts for theconstruction of ve 14,000 TEU class newbuilding containershipsat Hyundai Heavy Industries Co., Ltd. The vessels are scheduledfor delivery in 2015 and will be constructed using Seaspans fueefcient SAVER design. Concurrently with executing the newbuildingcontracts, Seaspan signed 10-year, xed-rate time charters for thevessels with Yang Ming Marine Transport Corporation. After theinitial 10-year charter periods, Yang Ming may extend the charterfor each vessel up to an additional two years.

Thursday, January 17, 2013

Nordic American Tankers Limited Declares the Dividend

Nordic American Tankers Ltd. announced that its Board of Directorshas declared a dividend of $0.16 for the fourth quarter of 2012The Company is assessing expansion plans including orderingof new vessels from shipyards or buying second hand vessels athistorically low prices. The level of the declared dividend shouldbe seen in the context of a planned eet expansion. Expansion isessentially the same as investing in the future. However, also yieldis a priority as demonstrated by this payment of dividend for the62nd consecutive quarter since the autumn of 1997.

NewLead Holdings Ltd. Announces Signing Agreement toAcquire Properties with Estimated Coal Reserves of 18.6Million Tons; Signing Agreement to Acquire Properties withEstimated Coal Reserves of 143.1 Million Tons and Securing

3-year Coal Supply Contracts Expected to Generate $873.5million of RevenueNewLead Holdings Ltd. announced that the Company hasentered into an agreement to acquire title and excavation rights inproperties containing 18.6 million tons of estimated coal reservesfor $11.0 million. NewLead also entered into an agreement toacquire ownership and leasehold interests in properties containingapproximately 143.1 million tons of coal for $55.0 million.

Costamare Inc. Declares Quarterly Dividend of $0.27 per ShareCostamare Inc. has declared a quarterly dividend of $0.27 peshare for the quarter ended December 31, 2012, payable onFebruary 13, 2013 to stockholders of record at the close of tradingof the Companys common stock on the New York Stock Exchange

on January 30, 2013. The Company has 74,800,000 shares ofcommon stock outstanding as of today.

Friday, January 18, 2013

Teekay LNG Partners L.P. Declares DistributionTeekay GP LLC, has declared a cash distribution of $0.675 per unifor the quarter ended December 31, 2012. The cash distributionis payable on February 14, 2013 to all unit holders of record onFebruary 1, 2013.

Teekay Offshore Partners L.P. Declares DistributionTeekay Offshore GP LLC, has declared a cash distribution of


4/28


Page 4

IN THE NE

Latest Company News$0.5125 per unit for the quarter ended December 31, 2012. Thecash distribution is payable on February 14, 2013 to all unit holdersof record on February 1, 2013.

NewLead Holdings Ltd. Announces Appointment of MichaelZolotas as ChairmanNewLead Holdings Ltd. announced that Michael Zolotas, presidentand chief executive ofcer of NewLead, will assume the role andresponsibilities of chairman of the Company following the recentresignation of Nicholas Fistes as chairman and director of theCompany.

Tuesday, January 22, 2013

Navios Maritime Partners L.P. Announces Cash Distribution o$0.4425 per UnitNavios Maritime Partners L.P. announced that its Board oDirectors has declared a cash distribution of $0.4425 per unit fothe quarter ended December 31, 2012. This distribution representsan annualized distribution of $1.77 per unit. The cash distributionwill be payable on February 14, 2013 to unit holders of record as oFebruary 8, 2013.

Capital Link ShippingProviding investors with information on shipping (maritime industry) and the listed

companies, featuring latest news, industry reports, interviews, article, industryreports and a shipping blog.

CapitalLinkShipping.com
http://www.capitallinkshipping.com/http://www.capitallinkshipping.com/http://www.capitallinkshipping.com/http://www.capitallinkshipping.com/http://www.capitallinkshipping.com/http://www.capitallinkshipping.com/


5/28


Page 5

IN THE NE

Select Dividend Paying Shipping Stocks

Get your message across to

36,000 weekly recipients around the globeJoin a select group of shipping & nancial industrys advertisers by promoting your brand with

Capital Links Shipping Weekly Markets Report.

For additional advertising information and a media kit, please contact/email:

Nicolas Bornozis at +1 212 661-7566, [email protected]

Stock Prices as of January 18, 2013

Company Name TickerQuarterly

DividendAnnualizedDividend

Last Closing

Price (Jan. 18,2013)

Annualized

DividendYield

Containers

Costamare Inc CMRE $0.27 * $1.08 $15.24 7.09%

Dry Bulk

Navios Maritime Holdings Inc NM $0.06 $0.24 $3.70 6.49%

Navios Maritime Partners NMM $0.4425** $1.77 $14.30 12.38%

Safe Bulkers Inc SB $0.05 $0.20 $3.77 5.31%

TankersCapital Product Partners Lp CPLP $0.2325 $0.93 $8.03 11.58%Navios Maritime AcquisitionCorp NNA $0.05 $0.20 $2.62 7.63%

Tsakos Energy Navigation Ltd TNP $0.05 $0.20 $4.08 4.90%

Mixed Fleet

Euroseas Ltd ESEA $0.015 $0.06 $1.03 5.83%

*Board approved an eight percent (8%) dividend increase, beginning with the third quarter 2011 dividend, raising the quarterlydividend from $0.25 to $0.27 per common share.

** Board approved a 0.57% dividend increase, beginning with the second quarter 2012 dividend, raising the quarterly dividendfrom $0.44 to $0.4425 per unit.


6/28


Page 6

CAPITAL MARKETS DA

Currencies, Commodities & Indices

Week ending Friday, January 18, 2013KEY CURRENCY RATES

Rate Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

3-Month LIBOR (USD) $0.3020 $0.3040 -0.66% -48.15% $0.5393 $0.2844

10-Yr US Treasury Yield $1.8416 $1.8677 -1.40% -6.85% $3.3190 $2.3833

USD/CNY $6.2225 $6.2168 0.09% -1.17% $6.3964 $6.1985

USD/EUR $0.7509 $0.7495 0.19% -2.80% $1.5295 $0.7415

USD/GBP $0.6302 $0.6196 1.71% -1.56% $5.0050 $0.6106

USD/JPY $89.8700 $88.9600 1.02% 17.23% $90.2700 $76.0200

PRECIOUS METALS

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Copper $367.90 $365.40 0.68% 6.19% $401.50 $329.00

Gold $1,690.22 $1,669.47 1.24% 5.55% $1,796.05 $1,526.97

Palladium $722.75 $701.45 3.04% 10.13% $732.95 $589.75

Platinum $1,692.74 $1,626.45 4.08% 18.87% $1,737.25 $1,379.25

Silver $31.81 $30.68 3.70% 8.25% $37.47 $26.16

KEY AGRICULTURAL &CONSUMER COMMODITIES

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Cocoa $2,285.00 $2,256.00 1.29% 6.13% $2,710.00 $2,065.00

Coffee $156.30 $153.35 1.92% -33.64% $237.50 $141.25

Corn $727.50 $708.75 2.65% 23.36% $846.25 $511.00

Cotton $78.55 $75.62 3.87% -14.33% $98.50 $66.85

Soybeans $1,429.25 $1,373.25 4.08% 17.22% $1,728.25 $1,207.75

Sugar #11 $18.37 $19.17 -4.17% -24.18% $25.13 $18.25

Wheat $791.25 $754.75 4.84% 9.63% $948.25 $652.00

KEY FUTURES

Commodities Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Gas Oil Futures $948.75 $934.50 1.52% 1.12% $1,026.25 $800.50

Gasoline RBOB $279.68 $273.95 2.09% 5.68% $292.97 $220.35

Heating Oil $305.25 $300.85 1.46% 0.31% $333.46 $255.66

Natural Gas $3.57 $3.33 7.18% 15.18% $3.93 $1.90

WTI Crude Future $95.56 $93.56 2.14% -6.71% $109.43 $80.06


7/28


Page 7

CAPITAL MARKETS DA

Currencies, Commodities & Indices

MAJOR INDICES

Index Symbol Close Last Week % Change YTD % Change 2-Jan-13

Dow Jones INDU 13,649.70 13,488.43 1.20% 1.77% 13,412.55

Dow Jones Transp. TRAN 5,695.27 5,572.62 2.20% 4.77% 5,435.74

NASDAQ CCMP 3,134.71 3,125.64 0.29% 0.72% 3,112.26

NASDAQ Transp. CTRN 2,465.95 2,415.90 2.07% 5.81% 2,330.45

S&P 500 SPX 1,485.98 1,472.05 0.95% 1.61% 1,462.42

Russell 2000 Index RTY 892.8 880.77 1.37% 2.22% 873.42

FTSE 100 Index UKX 6,154.40 6,121.60 0.54% 2.11% 6,027.40

CAPITAL LINK MARITIME INDICES

Index Symbol 18 -January-13 11 -January-13 % Change 2-Jan-13 YTD % Change

Capital Link Maritime Index CLMI 2,143.53 2,086.16 2.75% 2,093.02 2.41%

Tanker Index CLTI 2,189.58 2,142.41 2.20% 2,123.34 3.12%

Drybulk Index CLDBI 678.24 664.74 2.03% 609.62 11.26%

Container Index CLCI 1,650.77 1,639.89 0.66% 1,588.01 3.95%

LNG/LPG Index CLLG 3,531.97 3,452.87 2.29% 3,423.06 3.18%

Mixed Fleet Index CLMFI 1,578.04 1,555.55 1.45% 1,550.21 1.80%

MLP Index CLMLP 3,056.75 3,027.13 0.98% 2,972.33 2.84%

BALTIC INDICES

Index Symbol 18 -January-13 11 -January-13 % Change 2-Jan-13 YTD % Change

Baltic Dry Index BDIY 837 760 10.13% 698 19.91%

Baltic Capesize Index BCIY 1605 1,367 17.41% 1,237 29.75%

Baltic Panamax Index BPIY 740 772 -4.15% 685 8.03%

Baltic Supramax Index BSI 730 745 -2.01% 737 -0.95%

Baltic Handysize Index BHSI 470 448 4.91% 446 5.38%

Baltic Dirty Tanker Index BDTI 630 641 -1.72% 696 -9.48%

Baltic Clean Tanker Index BCTI 690 715 -3.50% 694 -0.58%


8/28


Page 8

CAPITAL MARKETS DA

Shipping Equities: The Week in Review

SHIPPING EQUITIES OUTPERFORM THE BROADER MARKET

LNG/LPG THE BEST PERFORMER

During last week, shipping equities outperformed the broader market, with the Capital Link Maritime Index (CLMI), a

composite index of all US listed shipping stocks rising 2.75%, compared to the S&P 500 going up 0.95%, and the

Dow Jones Industrial Average (DJII) gaining 1.20%.

Stocks in all shipping sectors ended up higher last week. LNG/LPG stocks were the best performers during last week,

with Capital Link LNG/LPG Index leaping 2.29%, followed by Capital Link Tanker Index rising 2.20%. Container

equities were the last performer in last week, with Capital Link Container Index up 0.66%. The three biggest winners

of shipping stocks were Newlead Shipping (NEWL), Knightsbridge Tankers Limited (VLCCF), and StealthGas, Inc.

(GASS), up 35.45%, 12.03%, and 9.39%, respectively.

During last week, Dry Bulk shipping stocks underperformed the physical market, with Baltic Dry Index (BDI) soaring

10.13%, compared to the Capital Link Dry Bulk Index rising 2.03%. Year-to-date, the BDI is up 19.91%, compared tothe Capital Link Dry Bulk Index up 11.26%.

Tanker shipping stocks outperformed the physical market during last week, with Capital Link Tanker Index increased

2.20%, compared to Baltic Dirty Tanker Index (BDTI) sliding 1.72%, and Baltic Product tanker down 3.50%. Year-to-

date, the BDTI lost 9.48% and the BCTI slipped 0.58%, and Capital Link Tanker Index went up 3.12%.

The Trading Statistics supplied by Knight Capital provide details of the trading performance of each shipping stock

and analyze the markets trading momentum and trends for the week and year-to-date.

The objective of the Capital Link Maritime Indices is to enable investors, as well as all shipping market participants, to

better track the performance of listed shipping stocks individually, by sector or as an industry. Performance can be

compared to other individual shipping stocks, to their sector, to the broader market, as well as to the physical

underlying shipping markets or other commodities. The Indices currently focus only on companies listed on USExchanges providing a homogeneous universe. They are calculated daily and are based on the market capitalization

weighting of the stocks in each index. In terms of historical data, the indices go back to January 1, 2005, thereby

providing investors with significant historical performance.

There are seven indices in total; the Capital Link Maritime Index comprised of all 45 listed shipping stocks, and six

Sector Indices, the CL Dry Bulk Index, the CL Tanker Index, the CL Container Index, the CL LNG / LPG Index, the CL

Mixed Fleet Index and the CL Maritime MLP Index.

The Index values are updated daily after the market close and can be accessed at www.CapitalLinkShipping.com or

at orwww.MaritimeIndices.com. They can also be found through the Bloomberg page CPLI and Reuters.


9/28


Page 9

CAPITAL MARKETS DA

Shipping Equities: The Week in Review

MARITIME INDEXDAILY COMPARISONCHARTS (52-WEEK )

*SOURCE:BLOOMBERG

0.700.750.800.850.900.951.001.051.101.15

Capital Link Maritime Index S&P 500 Russell 2000

0.350.50

0.65

0.80

0.95

1.10

1.25

1.40

1.55

Capital Link Drybulk Index Baltic Dry Index

0.50

0.70

0.90

1.10

1.30

1.50

1.70

1.90

Capital Link Tanker Index Baltic Clean Tanker Index Baltic Dirty Tanker Index


10/28

Fed Fak s oe o te wolds most actve cooate law

fms wt a esece cal facal cetes acoss t

US, Euoe ad Asa.

Gowg wt ou clets busesses, we egulaly eese

comaes eac stage o develomet. Ou aoac s tudestad te essetal commecal elemets o ou clets

objectves ad tu, deloy taloed attoey teams wt t

exeece ad exetse to aceve te goals. Te Fm

beadt acoss actces ad ofces allow us to alg te g

esouces to addess ou clets busess ootutes a

calleges bot eectvely ad efcetly.

360 DEGrEES OF ShippinG

New York | Washington DC | London | Paris | Frankfurt | Hong Kong | Shanghai | friedfrank.com
http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/http://www.shlegal.com/


11/28


Page 11

CAPITAL MARKETS DA

Weekly Trading Statistics

Custom Statistics Prepared Weekly for Capital Link ShippingBROAD MARKETPercent Change of Major Indexes for the Week Ending Friday, January 18, 2013

Name Symbol Close Net Gain Percent Gain

Nasdaq Transportation Index TRANX 2465.95 50.05 2.07%

Russell 2000 Index RUT 892.8 12.03 1.37%

Russell 3000 Index RUA 883.67 8.82 1.01%

Russell 1000 Index RUI 824.24 7.99 0.98%

S&P 500 Index SPX 1485.88 13.83 0.94%

Nasdaq Composite Index COMPX 3134.71 9.07 0.29%

Nasdaq-100 Index NDX 2743.24 -5.02 -0.18%

SHIPPING INDUSTRY DATA (50 Companies)

Moving Averages 69.77% closed > 10D Moving Average. 90.70% closed > 50D Moving Average. 69.77% closed > 100D Moving Average. 51.16% closed > 200D Moving Average.

Top Upside Momentum (Issues with the greatest 100 dayupside momentum*)

Top Downside Momentum (Issues with the greatest 100 daydownward momentum*)

Symbol CloseWeekly %

Change50-Day %

Change

NEWL 1.49 35.45% 170.91%

GASS 9.9 9.39% 41.03%

STNG 7.59 2.71% 23.41%GNK 4.02 3.61% 33.11%

DCIX 6.72 1.20% 14.09%

DAC 3.51 2.03% 18.18%

CMRE 15.25 3.74% 9.71%

SFL 17.44 0.75% 14.74%

DSX 8.48 0.12% 11.73%

CPLP 8.03 4.42% 1.77%

*Momentum: (100D % change) + 1.5*(50D % change) +2.0*(10D % change) for each stock then sort group indescending order and report the top 10.

Symbol CloseWeekly %

Change50-Day %

Change

SB 3.77 -6.22% -31.58%

TRMD 3.18 -0.31% -30.87%

EGLE 2.25 -0.44% -22.95%

SHIP 1.44 -3.36% -7.10%

TNK 3.12 -6.87% -9.83%

NAT 8.61 -5.90% 0.23%

TNP 4.08 -0.73% -8.93%

DRYS 2.13 0.47% -10.13%

ESEA 1.03 -1.90% -6.36%

DHT 4.55 1.11% 8.08%

*Momentum: (100D % change) + 1.5*(50D % change) +2.0*(10D % change) for each stock - sort names that have anegative value in ascending order - report the top 10.

Top Consecutive Higher Closes Top Consecutive Lower Closes

Symbol Close Up StreakVLCCF 6.8 5

TK 34.5 5

GLNG 39.34 5

TGP 40.65 4

STNG 7.59 3

SSW 17.85 3

PRGN 3.88 3

GSL 3.43 3

BALT 3.44 3

DRYS 2.13 3

Symbol Close Down StreakGLBS 2.45 -2

GLOG 12.5 -2

FREE 0.22 -6

TNK 3.12 -6


12/28


Page 12

CAPITAL MARKETS DA


Top Largest Weekly Trading Gains Top Largest Weekly Trading Losses

SymbolClose OneWeek Ago

FridayClose

NetChange

%Change

NEWL 1.1 1.49 0.39 35.45%VLCCF 6.07 6.8 0.73 12.03%

GASS 9.05 9.9 0.85 9.39%

CPLP 7.69 8.03 0.34 4.42%

GLNG 37.92 39.34 1.42 3.74%

CMRE 14.7 15.25 0.55 3.74%

TK 33.27 34.5 1.23 3.70%

GNK 3.88 4.02 0.14 3.61%

GLOG 12.1 12.5 0.40 3.31%

STNG 7.39 7.59 0.20 2.71%

SymbolClose OneWeek Ago

FridayClose

NetChange

% Change

FREE 0.34 0.22 -0.12 -35.29%EXM 0.73 0.57 -0.16 -21.92%

TOPS 1.3 1.12 -0.18 -13.85%

MATX 29.8 26.91 -2.89 -9.70%

TNK 3.35 3.12 -0.23 -6.87%

SB 4.02 3.77 -0.25 -6.22%

NAT 9.15 8.61 -0.54 -5.90%

SHIP 1.49 1.44 -0.05 -3.36%

FRO 3.51 3.41 -0.10 -2.85%

SBLK 7.39 7.2 -0.19 -2.57%

Top Largest Monthly Trading Gains (A month has beenstandardized to 20 trading days)

Top Largest Monthly Trading*Losses (A month has beenstandardized to 20 trading days)

Symbol PriorClose

FridayClose

NetChange

% Change

NEWL 0.4 1.49 1.09 272.50%

FREE 0.1 0.22 0.12 120.00%

PRGN 2.47 3.88 1.41 57.09%

EGLE 1.45 2.25 0.80 55.17%

GLBS 1.59 2.45 0.86 54.09%

DAC 2.66 3.51 0.85 31.95%

VLCCF 5.24 6.8 1.56 29.77%

TEU 4.15 5.32 1.17 28.19%

CPLP 6.46 8.03 1.57 24.30%

GASS 8.02 9.9 1.88 23.44%

Symbol PriorClose

FridayClose

Net Change % Change

FRO 3.65 3.41 -0.24 -6.58%

TRMD 3.35 3.18 -0.17 -5.07%

MATX 28.18 26.91 -1.27 -4.51%

NAT 8.96 8.61 -0.35 -3.91%

TNK 3.18 3.12 -0.06 -1.89%

Stocks Nearest to 52-Week Highs Stocks Nearest To 52-Week LowsSymbol 52W High % Away

CPLP 8.08 -0.62%

SFL 17.59 -0.85%

TK 35.38 -2.50%

CMRE 15.82 -3.60%

TOO 28.73 -3.96%

DCIX 7.02 -4.31%

GLOG 13.22 -5.46%

SSW 19.09 -6.49%

NMM 15.46 -7.48%

NM 4.21 -11.78%

Symbol 52W Low % Away

NAT 7.94 8.42%

TOO 24.55 12.38%

FRO 3.02 12.91%

MATX 23.39 15.06%

ESEA 0.86 19.77%

SB 3.12 20.83%

SBLK 5.88 22.45%

TGP 33.12 22.72%

GMLP 25.52 24.14%

NNA 2.05 25.85%


13/28


Page 13

CAPITAL MARKETS DA


Top Stocks with Highest Weekly Volume Run Rate* > 1

Symbol Close Net % Change Run Rate

NEWL 1.49 35.45% 11.5975

FREE 0.22 -35.29% 3.1975

GASS 9.9 9.39% 2.1307

SHIP 1.44 -3.36% 1.3306

TK 34.5 3.70% 1.3247

NAT 8.61 -5.90% 1.2519

GNK 4.02 3.61% 1.1813

DRYS 2.13 0.47% 1.1021

PRGN 3.88 -1.27% 1.0988

TOPS 1.12 -13.85% 1.0933

*The Volume Run Rate is calculated by dividing the current week's volume by the average volume over the last 20 weeks. Forexample, a run rate of 2.0 means the stock traded twice its average volume.

Top Year-To-Date Gainers Top Year-To-Date Decliners

Symbol YTD Gain %

NEWL 272.50%

FREE 144.44%

PRGN 73.21%

EGLE 50.00%

GLBS 44.97%

SHIP 38.46%

DRYS 33.12%

EXM 32.56%

TEU 29.76%

VLCCF 29.52%

Symbol YTD Decline %

MATX -8.38%

NAT -1.60%

The following are the 43 members of this group: Symbol - Name: ANW - Aegean Marine Petroleum Network Inc; BALT - BalticTrading Ltd; CPLP - Capital Product Partners LP; CMRE- Costamere, Inc.; DAC - Danaos Corp; DCIX Diana Containerships; DHT- DHT Maritime Inc; DRYS - DryShips Inc; DSX - Diana Shipping Inc; EGLE - Eagle Bulk Shipping Inc; ESEA - Euroseas Ltd; EXM -Excel Maritime Carriers Ltd; FREE FreeSeas; FRO - Frontline Ltd; GASS - StealthGas Inc; GLBS Globus Maritime Limited ;GLNG - Golar LNG Ltd; GMLP Golar LNG Partners; GNK - Genco Shipping & Trading Ltd; GSL - Global Ship Lease Inc; MATX -Matson, Inc.; NAT - Nordic American Tanker Shipping; NEWL - NewLead Holdings Ltd; NM - Navios Maritime Holdings Inc; NMM -Navios Maritime Partners LP; NNA - Navios Maritime Acquisition Corp; OSG - Overseas Shipholding Group Inc; PRGN - ParagonShipping Inc; SB - Safe Bulkers Inc; SBLK - Star Bulk Carriers Corp; SFL - Ship Finance International Ltd; SHIP - SeanergyMaritime Holdings Corp; SSW - Seaspan Corp; STNG - Scorpio Tankers Inc; TGP - Teekay LNG Partners LP; TK - Teekay Corp;TNK - Teekay Tankers Ltd; TNP - Tsakos Energy Navigation Ltd; TOO - Teekay Offshore Partners LP; TOPS - TOP Ships Inc;TRMD - D/S Torm A/S; VLCCF - Knightsbridge Tankers Ltd

DISCLAIMERThis communication has been prepared by Knight Equity Markets, L.P. The information set forth above has been

compiled from third party sources believed by Knight to be reliable, but Knight does not represent or warrant its accuracy,completeness or timeliness of the information and Knight, and its affiliates, are not responsible for losses or damages arising out oferrors or omissions, delays in the receipt of this information, or any actions taken in reliance thereon. The information providedherein is not intended to provide a sufficient or partial basis on which to make an investment decision. The communication is foryour general information only and is not an offer or solicitation to buy or sell any security or product.

Knight and its affiliates most likely make a market in the securities mentioned in this document. Historical price(s) or value(s) are asof the date and, if applicable, time indicated. Knight does not accept any responsibility to update any information contained in thiscommunication. Knight and/or its affiliates, officers, directors and employees, including persons involved in the preparation orissuance of this material, may, from time to time, have long or short positions in, or buy or sell (on a principal basis or otherwise) thesecurities mentioned in this communication which may be inconsistent with the views expressed herein. Questions regarding theinformation presented herein or a request for a copy of this document should be referred to your Knight representative. Copyright2011 Knight Equity Markets, L.P. Member NASD/SIPC. All rights reserved.


14/28

September 2010 Knight Capital Group, Inc. All rights reserved.

Knight Equity Markets, L.P. and Knight Capital Markets LLC are o-exchange liquidity providers and members of FINRA and SIPC.

To learn about Knight Capi tal Group, Inc. (NYSE Euronext: KCG) go to kni ght.com.

Knight Corporate Access is an unbiased service for issuers to

connect with institutional investors. Through a combination of

strategic investor introductions, thought leadership initiatives

and market insight, Knight can help strengthen and diversify a

companys investor base.

Knight is the leading source of o-exchange liquidity in U.S.

equities and has a greater share volume than any U.S. exchange.

For additional information,please contact:

Sandy Reddin

phone 212-455-9255

email [email protected]

www.knight.com


15/28


Page 15

SHIPPING MARKE

Managed Service Market Report

Contributed by

Cleartrade

Cleartrade Exchange Pte. Ltd6 Battery Road, #24-04BSingapore 049909

Phone: +65 637 29566Website: thecleartrade.com

FREIGHTCapesize 4TC Average BCI TC Volume: 5,015 lots

Average Chg Open Close Chg Low High

Jan 13 6951 330 6150 7000 850 6150 7300

Feb, Mar 13 8370 701 7900 7700 -200 7700 8800

Mar 13 8518 na 8050 8000 -50 8000 8750Q1 13 7570 126 7400 8150 750 7100 8300

Q2 13 8823 319 8500 8350 -150 8350 9200

Q3 13 9538 117 9500 9250 -250 9250 9875

Cal 13 10200 224 9950 10300 350 9950 10350

Cal 14 13065 465 12950 12900 -50 12900 13200

Panamax 4TC Average BPI TC Volume: 1,575 lots


Jan 13 5600 -300 5700 5500 -200 5500 5700

Feb 13 6564 -200 6650 6400 -250 6400 6750

Mar 13 7566 -56 7500 7400 -100 7400 7700

Q1 13 6524 -127 6650 6500 -150 6400 6650

Q2 13 8039 -199 8000 8000 0 7850 8250

Q3 13 6567 5 6550 6600 50 6550 6600

Cal 14 8200 67 8250 8150 -100 8150 8250

IRON ORE -TSI Iron Ore 62% Fines TSIO 62 Volume: 7,757 lots


Jan 13 149.14 -1.72 152.00 149.50 -2.50 148.00 152.00

Feb 13 139.12 -3.42 140.00 143.00 3.00 134.00 143.50

Mar 13 132.24 -2.83 136.00 139.00 3.00 131.00 139.00

Q2 13 130.62 0.23 132.00 134.00 2.00 127.00 134.00

Q3 13 126.45 -3.77 126.00 128.00 2.00 126.00 129.00

FERTILIZERUrea Nola Urea G N Volume: 9 lots


Mar 13 424.33 -0.44 423.00 425.00 2.00 423.00 425.00

DAP Tampa Volume: 32 lots


Mar 13 470.75 na 480.00 470.00 -10.00 465.00 480.00

BUNKER FUELSingapore 180cst S18 Volume: 3,000 mt


May 12 632 na 632 632 0.00 632 632

Nov 13 625 na 625 625 0.00 625 625Sep 12 627 na 627 627 0.00 627 627

Singapore 380cst S38 Volume: 4,300 mt


Feb 13 630.00 3.63 630.00 630.00 0.00 630.00 630.00

Mar 12 627.50 na 627.50 627.50 0.00 627.50 627.50

Apr 13 625.50 na 625.50 625.50 0.00 625.50 625.50

Contract

Contract

Contract

Contract

Contract

Contract

Contract

Commentary

Freight

Cape - The week started with optimism as Capesize and Panamaxsaw support as increased demand from China for coalimports helped bolster demand. The curve was generallywell supported till post index Thursday whereby prices

started drifting down and traded in a tight range in the lastday of the week.

Pana - Prices slipped across the curve at the start of the week withoversupply of tonnage kicking around in the East. Priceswas generally traded in a tight range with the week endinga touch stronger on Panamax. Post index market was veryquiet with more bids coming in towards the end pushing themarket up on Friday.

Iron Ore

The iron ore market opened strongly for the week, howevevolumes are lower than what was seen last week as tradersattempted to gauge the next directional move. The markewas relatively quiet towards the end of the week with littlephysical news, but we see more buyers as sentiment beganto shift slightly.

Fertilizer

Prices in the International Urea market continue to holdstable as participants gauge physical market direction andupcoming end user demand. We also saw some volumedone on DAP Tampa contracts with highest done at 480

closing at 470 ending the week. Yuzhnyy Urea has beenrather quiet this week, as participants are on a cautionarytone, awaiting signs from end user markets.

Bunker Fuel

Despite a growing appetite for fuel oil, power consumptionin Japans power sector is expected to decline this yearwhich caused projected demand to dip 2 to 3% from lasyear. Japan is expected to restart more nuclear poweplants and reduce the use of oil to generate electricityCash differentials for 380 cst fuel oil continued to plungeover the past week as there is lower demand from Chineseteapot reners and utility providers after weeks of stockpiling ahead of the Lunar New Year.

Legend

Average Weighted average price of the contract period for the week

Change (1) Difference between the current week Average and the previous week Average

Open Opening price of the week

Close Closing price of the week

Change (2) Different between the weekly Open and Close Price

Low Lowest price of the week

High Highest price of the week


16/28


Page 16

SHIPPING MARKE

Dry Bulk Market - Weekly Highlights

Contributed by

Intermodal

Intermodal Shipbrokers Co.17th km Ethniki Odos Athens-Lamia &3 Agrambelis Street,145 64 N. Kisia,Athens - Greece

Phone: +30 210 6293300Website: www.intermodal.gr

The Dry Bulk market looks like its determined to cover for all theDecember losses as it closed positive for a third week in a row,with the index rming signicantly from Wednesday onwards. Themain driver behind this upward movement was the Cape Market,

with rates rming on all main routes and with transatlantic xturesoffering the higher premium differences. Panamaxes didnt have agood week with freight rates for both basins feeling the pressureof tonnage oversupply. The Supra market also closed negativethis week, with the only notable positive exception being that ofrates offered for the Atwerp - Skaw route. Handies on the otherhand managed to rm across both basins, with the most notableincrease in rates offered for US Gulf to Skaw-Passero xtures.

Baltic Indices / Dry Bulk Spot Rates

Week 318/01/2013

Week 211/01/2013 %

PointDiff

2012 2011

Avg Index Avg IndexIndex $/day Index $/day

BDI 837 760 10.1% 77 921 1,549BCI 1,605 $8,990 1,367 $6,213 17.4% 238 1,571 2,237

BPI 740 $5,860 772 $6,123 -4.1% -32 965 1,749

BSI 730 $7,635 745 $7,791 -2.0% -15 906 1,377

BHSI 470 $7,012 448 $6,667 4.9% 22 518 718

We mentioned last week how expectations for more stimulus fromcentral banks have uplifted the commodities markets. Today theBank of Japan has started a policy meeting that is expected bythe majority of analysts to result in the announcement of additionalstimulus. China also announced that its GDP for the last quarter of2012 rose by 7.9%. Iron ore prices softened last week but some

correction downwards was almost expected as traders rushedto lock prots after the recent rally. At the same time coal pricesare expected to remain low as production for 2013 is estimatedto increase signicantly, while demand that has been mainlysupported by Asia, doesnt look like rming any time soon.

0

20

40

60

80

100

120

140

160

500

1,000

1,500

2,000

2,500

3,000

3,500

no.Fixtures

Index

Baltic Dry

p The Baltic Dry Index closed on Friday the 18th of January at

837 points with a weekly gain of77 points or10.1% over previousweeks closing. (Last Fridays the 11th of January closing value was

recorded at 760 points).

0

5

10

15

20

25

1,000

2,000

3,000

4,000

5,000

no

.Fixtures

Index

Capesize

CAPESIZE MARKET -p The Baltic Cape Index closed onFriday the 18th of January at 1,605 points with a weekly gain o238 points. For this week we monitor a 17.4% change on a week

on-week comparison, as Last Fridays the 11th of January closingvalue was 1,367 points). It is worth noting that the annual averageof 2011 for the Cape Index is currently calculated at 1,571 pointswhile the average for the year 2010 was 2,237 points.

WeekNo. of

FixturesHighestFixture

LowestFixture

this week 16 $27,000 $6,500

last week 7 $28,000 $5,000

Week Period Charter Trip Charter

this week $9,708 $10,278last week $9,250 $14,700


17/28


Page 17

SHIPPING MARKE

Dry Bulk Market - Weekly HighlightsFor Week 3 we have recorded a total of 16 timecharter xtures inthe Capesize sector, 7 for period charter averaging $9,708 per day,while 9 trip charters were reported this week with a daily averageof $10,278 per day.

This weeks xture that received the lowest daily hire was theM/V CRYSTAL TIGER, 181569 dwt, built 2010, dely Continentppt , redely Skaw-Cape Passero, $6500, Classic Maritime, for atransatlantic round 1500$ improved from last week, and the xturewith the highest daily hire was the M/V GENCO COMMODUS,169098 dwt, built 2009, dely Ashkelon 22/24 Jan , redely Far East,$27000, Phaethon, for a trip via Black Sea -1000$ reduced fromlast week.

The BCI is showing a17.2%gain on a weekly comparison, a -2.8%loss on a 1 month basis, a -12.4%loss on a 3 month basis, a 21.6%gain on a 6 month basis and a10.2% gain on a 12 month basis.

0

10

20

30

40

50

60

70

80

90

100

250

1,250

2,250

3,250

no.Fixtures

Index

Panamax

PANAMAX MARKET - q The Baltic Panamax Index closed onFriday the 18th of January with a loss at 740 points having lost -32points on a weekly comparison. It is worth noting that last Fridaysthe 11th of January saw the Panamax index close at 772 points.The week-on-week change for the Panamax index is calculated tobe-4.1%, while the yearly average for the Baltic Panamax Index forthis running year is calculated at 965 points while the average for2010 was 1,749 points.

WeekNo. of


LowestFixture

this week 54 $15,000 $4,000

last week 52 $15,500 $4,000Week Period Charter Trip Charter

this week $5,738 $8,932

last week $7,464 $8,048

For Week 3 we have recorded a total of 54 timecharter xtures inthe Panamax sector, 8 for period charter averaging $5,738 per day,while 46 trip charters were reported this week with a daily averageof $8,932 per day.

The daily earnings differential for the Panamaxes, that we calculatefrom all this weeks reported xtures, i.e. the difference betweenthe lowest and highest reported xture for this week was reduced,

and this weeks xture that received the lowest daily hire was theM/V ADRIATICA GRAECA, 74133 dwt, built 2007, dely Longkou20/24 Jan , redely China , $3900, BHP Billiton, for a trip via ECAustralia -100$ reduced from last week, and the xture with the

highest daily hire was the M/V NYON, 73035 dwt, built 1999dely Immingham 17/22 Jan , redely Singapore-Japan int fertilizers$15000, Chart Not Rep, for a trip via Baltic -500$ reduced fromlast week.

The BPI is showing a -4.4%loss on a weekly comparison, a -19.0%loss on a 1 month basis, a-12.2%loss on a 3 month basis, a-38.4%loss on a 6 month basis and a -3.3%loss on a 12 month basis.

0

5

10

15

20

25

30

35

40

45

50

500

1,000

1,500

2,000

2,500

noFixtures

Inde

x

Supramax

SUPRAMAX & HANDYMAX MARKET - q The BalticSupramax Index closed on Friday the 18th of January at 730points down with a weekly loss of -15points or-2.0%. The BalticSupramax index on a weekly comparison is with a downward trend

as last Fridays the 11th of January closing value was 745 pointsThe annual average of the BSI is recorded at 906 points while theaverage for 2010 was 1,377 points.

WeekNo. of


LowestFixture

this week 30 $18,750 $5,000last week 24 $22,000 $5,500


this week $9,083 $10,293

last week $8,500 $11,055

For Week 3 we have recorded a total of 30 timecharter xtures inthe Supramax & Handymax sector, 3 for period charter averaging$9,083 per day, while 27 trip charters were reported this week witha daily average of $10,293 per day.

The minimum vs maximum daily rate differential as analyzed fromour xtures database was overall reduced and from the reportedxtures we see that this weeks xture that received the lowest dailyhire was the M/V GREAT PRAISE, 52424 dwt, built 2006, delyJintang spot , redely Continent, $5000, Chart Not Rep, for a trip5000 daily 1st 65 days 8250 daily balance -500$ reduced fromlast week, and the xture with the highest daily hire was the M/VSOPHIA, 45800 dwt, built 1996, dely aps Brazil 20/25 January redely Singapore-India, $18750, Chart Not Rep, for a trip -3250$reduced from last week.


18/28


Page 18

SHIPPING MARKE

Dry Bulk Market - Weekly Highlights

The BSI is showing a-1.7%loss on a weekly comparison, a -2.8%loss on a 1 month basis, a -6.8%loss on a 3 month basis, a -43.3%

loss on a 6 month basis and a 8.5%gain on a 12 month basis.

0

2

4

6

8

10

12

14

16

18

250

500

750

1,000

no.Fixtures

Index

Handysize

HANDYSIZE MARKET - p The Baltic Handysize Index closedon Friday the 18th of January with an upward trend at 470 pointswith a weekly gain of22 points and a percentage change of4.9%. Itis noted that last Fridays the 11th of January closing value was 448points and the average for 2011 is calculated at 518 points whilethe average for 2010 was 718 points.

WeekNo. of


LowestFixture

this week 9 $16,250 $3,500

last week 7 $12,600 $3,000


this week $0 $10,122

last week $0 $9,371

For Week 3 we have recorded a total of 9 timecharter xtures inthe Handysize sector, 0 for period charter averaging $0 per daywhile 8 trip charters were reported this week with a daily averageof $10,122 per day.

The minimum vs maximum daily rate differential as analyzed fromour xtures database was overall improved and this weeks xture

that received the lowest daily hire was the M/V KBS STAR, 30548dwt, built 2007, dely aps Black Sea end Jan, redely South Africa$3500, MUR, for a trip via Gibraltar 500$ improved from last weekand the xture with the highest daily hire was the M/V GREATRIVER, 33745 dwt, built 2005, dely Recalada 25/30 Jan, redelyMediterranean approx, $16250, Chart Not Rep, for a trip 3650$improved from last week.

In the bar chart on the left we see that the BHI is showing a 4.2%change on a weekly comparison, a 5.1%gain on a 1 month basisa 5.9%gain on a 3 month basis, a -32.1%loss on a 6 month basisand a 13.0%gain on a 12 month basis.


19/28


Page 19

SHIPPING MARKE

Weekly Tanker Market Opinion

Contributed by

Poten & Partners, Inc.

805 Third AvenueNew York, NY 10022

Phone: (212) 230-2000Website: www.poten.com

OPEC Moving to Tighten Market, as DemandRebounds

In todays Oil Market Report (OMR), the International EnergyAgency (IEA) provided a revised outlook that suggested a tighteroil market than orginally assumed, with rising demand estimatespushing against a decline in OPEC output. Indeed, with OPECcrude production having remained well above 31 mbpd during therst three quarters of 2012, global supply outpaced demand by 1.4mbpd during that period. Those comfortable inventory builds arecoming to an end for the moment, however, as the agency hashiked its oil demand forecasts, citing more rapid growth in Chineseoil demand. With OPEC already cutting its crude production by0.65 mbpd since October, to 30.64 mbpd in December, the cartelhas moved reduce supplies and cede market share to rising NorthAmerican production. Additional OPEC cuts may pressure thetanker markets during 1h13, but rising demand expectations aresuggesting a stronger end to the year, as dirty tanker eet growthslows signicantly.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12

yoyChange,mbpd

Report Month

IEA Global Oil Demand Growth Forecasts

yoy Change by Report Date

2011

20122013

Source: IEA

After being forced to cut their oil demand growth estimates duringmost of 2012, from concerns over global GDP growth, the IEA hasbegun to raise its demand forecasts during the past two months.Their growth outlook bottomed out during the Autumn, based

upon continued concerns over the European sovereign debt andsolvency crisis, chaotic US scal policy and apparent weakness

in Chinese economic indicators. As fears over OECD economicconditions have subsided and as Chinese growth has resumed, theIEA has boosted their estimates for 2012 and 2013 global demandgrowth by 0.30 mbpd and 0.10 mbpd, respectively, since theNovember 2012 OMR. This places the IEA 2012 demand estimate0.24 mbpd higher, at 89.83 mbpd, and the 2013 outlook 0.34 mbpdhigher, to 90.76 mbpd.

Upwards revisions to Chinese demand growth estimates wereresponsible for 59% of this recent, two-month boost to globademand numbers, while other non-OECD Asian economiescontributed another 27% share of the forecast revision. After signsof economic weakness in mid-2012, highlighted by at yoy growthin crude runs and electricity generation, Chinese macroeconomicand oil statistics rebounded during 4q12, contributing much of theupside surprise in oil demand during the quarter.

28.0

28.5

29.0

29.5

30.0

30.5

31.0

31.5

32.0

Dec-09 Dec-10 Dec-11 Dec-12

mbpd

Report Month

IEA Forecast Call on OPEC Crude

by Report Date

2011

2012

2013

Source: IEA

These higher global demand estimates for 2013 have only provideda modest uptick in the call on OPEC crude for the year, as rapidly-rising North American liquids production has partially offset thedemand gains. For 2013, the IEA estimates for the call on OPECcrude has risen by only 0.11 mbpd since November, to 29.96 mbpdas the non-OPEC supply forecast has increased by 0.23 mbpd.

This small move in the expected call on OPEC crude, howevermasks some seasonal shifts in crude demand that could inuencethe dirty tanker market. During the recent cycle in IEA forecasts


20/28


Page 20

SHIPPING MARKE

Weekly Tanker Market Opinionthe agency expectation for the OPEC call during the seasonally-weak 2q13 have remained stable near 29.2 mbpd. This had alwayssuggested trouble for the VLCC market, as a series of OPECproduction cuts seemed necessary to balance the market and stem

the global stock builds. Even allowing for a traditional build during2q13, the previous OPEC crude production levels above 31 mbpdsuggested more than 1 mbpd of output cuts.

With OPEC already cutting to 30.65 mbpd in December, accordingto IEA statistics, the cartel has removed 0.60 mbpd of output sinceSeptember and has moved partially towards a level that wouldstabilise inventories during the year.

Meanwhile, much higher IEA global demand estimates havepushed up expectations for the 4q13 call by 0.5 mbpd since theNovember OMR, to 30.6 mbpd. This is signicant, since earlierestimates as low as 30.1 mbpd for 4q13 would have implied OPECcrude production as low as 29.5 mbpd during the quarter to providenally a seasonal stock draw. This would have suggested that

OPEC reign in their crude production to this level in early-2013 andmaintain well into 2014.

27

28

29

30

31

32

33

34

1q06 1q08 1q10 1q12 1q14F

mbpd

OPEC Crude Output vs Call on OPEC Crude

Call on OPEC Cr ude O PEC Crude Output

Source: IEA

This lower, 29.5 mbpd level of OPEC crude output would haveplaced additional, severe pressure on the dirty tanker markets.

With the IEA boosting demand estimates, especially for late-2013,the OPEC crude demand outlook is appearing less dour now --although still hardly stellar. This would imply that OPEC couldnow cut production to 30.3 mbpd during 2013 and still achievedesired inventory balances, with small draws during the NorthernHemisphere winter months. Given the level of strategic inventorybuilding in non-OECD countries, this level of global build shouldprompt sufcient tightness in OECD stocks. Then, additionaldemand gains into 2014 might allow some recovery in OPECvolumes.

At the very least, this forecast environment provides a oor forthe dirty tanker rate carnage. With OPEC already producing at30.65 mbpd in December, the cartel is near the level at which itcan stabilise production and achieve its goals -- suggesting that the

oil supply pain for the dirty tanker market is nearing its conclusionStill, with an impulse of dirty tonnage supply during 1q13, from2012 deliveries pushed into 2013, these remaining OPEC cuts andtraditional seasonal weakness should heap additional punishmen

on the dirty tanker markets this spring. The recent start-up of therst 200 kbpd crude distillation unit at the Saudi Aramco-Total 400kbpd joint venture renery in Jubail should reduce Saudi Arabiancrude export availability, as should the seasonal recovery inregional electricity demand.

0

10

20

30

40

50

60

70

80

90

100

Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12

US$000

s/day

VLCC Spot TCE Earnings

Daily Data

TD1 & WAFR-China 260 AG-Japan

Source: Poten

After surging in November on a jump in AG xture levels, VLCCTCE earnings have softened during the past two months, as thelevel of xtures has slid. This has reected the realities of loweproduction and export availability, as well as shifts in regional VLCCownership. Lower OPEC crude production, led by swing produceSaudi Arabia, should continue to pressure VLCC earnings lowerduring the Spring. If this harsh rate environment encouragesowners to scrap additional tonnage, then the improving demandenvironment in late-2013 could support the market just as eegrowth slows and possibly contracts. Conversely, if owners do noembrace demolition this year, then forward prospects will dim.


21/28


Page 21

SHIPPING MARKE

Weekly Freight Rate & Asset Trends

Contributed by

Intermodal

Intermodal Shipbrokers Co.17th km Ethniki Odos Athens-Lamia &3 Agrambelis Street,145 64 N. Kisia,Athens - Greece

Phone: +30 210 6293300Website: www.intermodal.gr

Tanker Spot Rates

Vessel Routes

Week 03 Week 02

%

2012 2011

WSpoints

$/dayWS

points$/day $/day $/day

VLCC 265k AG-JAPAN 40 19,611 42 21,846 -4% 21,835 18,217

280k AG-USG 24 -4,460 24 -4,407 -2% 1,604 2,504

260k WAF-USG 48 33,412 45 27,937 6% 31,457 25,714

Suezmax 130k MED-MED 60 14,538 65 18,855 -8% 22,121 25,125

130k WAF-USAC 58 11,142 60 12,396 -4% 13,373 13,373

130k AG-CHINA 73 25,708 73 19,936 0% 22,181 14,815

Aframax

80k AG-EAST 80 11,057 83 11,952 -3% 14,182 12,726

80k MED-MED 73 9,678 75 10,168 -3% 13,700 13,577

80k UKC-UKC 85 13,510 88 15,174 -3% 18,517 18,604

70k CARIBS-USG 85 8,772 84 7,567 1% 12,325 8,240

Clean

75k AG-JAPAN 80 8,305 90 13,025 -11% 11,258 10,467

55k AG-JAPAN 105 11,848 115 15,377 -9% 10,867 7,768

37K UKC-USAC 160 18,832 175 22,042 -9% 9,251 11,022

30K MED-MED 170 26,559 170 26,405 0% 19,062 18,458

D

irty

55K UKC-USG 105 14,290 108 14,735 -2% 16,571 11,266

55K MED-USG 105 12,740 108 13,031 -2% 14,735 9,676

50k CARIBS-USAC 108 12,117 104 10,251 4% 13,028 10,700

Tanker Time Charter Rates

$/dayWeek

03

Week

02% Diff 2012 2011

VLCC300k 1yr TC 21,500 21,500 0.0% 0 22,375 25,197

300k 3yr TC 27,000 27,000 0.0% 0 27,195 31,681

Suezmax150k 1yr TC 17,500 17,500 0.0% 0 17,606 19,837

150k 3yr TC 22,000 22,000 0.0% 0 21,152 23,830

Aframax105k 1yr TC 14,500 14,500 0.0% 0 13,889 15,707

105k 3yr TC 16,000 16,000 0.0% 0 16,070 18,335

Panamax70k 1yr TC 14,250 14,500 -1.7% -250 13,245 14,995

70k 3yr TC 15,250 15,250 0.0% 0 14,368 16,263

MR45k 1yr TC 14,500 14,000 3.6% 500 13,764 13,918

45k 3yr TC 15,000 14,750 1.7% 250 14,589 14,738

Handysize36k 1yr TC 13,000 13,000 0.0% 0 12,567 12,471

36k 3yr TC 14,000 14,000 0.0% 0 13,378 13,412

Dry Bulker Time Charter Rates

$/dayWeek

03

Week

02% Diff 2012 2011

Capesize 170K 6mnt TC 12,500 12,000 4% 500 13,549 18,474

170K 1yr TC 12,750 11,750 9% 1,000 13,885 17,138

170K 3yr TC 14,000 14,000 0% 0 15,282 17,599

Panamax 70K 6mnt TC 10,000 10,000 0% 0 11,003 17,238

70K 1yr TC 8,625 8,625 0% 0 9,906 14,863

70K 3yr TC 9,250 9,250 0% 0 10,888 14,500

Supramax 52K 6mnt TC 9,750 9,750 0% 0 11,176 15,587

52K 1yr TC 9,250 9,250 0% 0 10,330 14,308

52K 3yr TC 10,000 10,250 -2% -250 11,195 14,046

Handymax 45k 6mnt TC 8,250 8,250 0% 0 9,375 13,416

45k 1yr TC 8,000 8,000 0% 0 8,849 12,450

45k 3yr TC 8,750 8,750 0% 0 9,575 12,403

Handysize 30K 6mnt TC 7,500 7,250 3% 250 8,255 11,712

30K 1yr TC 7,750 7,750 0% 0 8,424 11,787

30K 3yr TC 9,000 9,000 0% 0 9,450 12,044

Secondhand Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old Jan-13 Dec-12 % 2012 2011 2010

VLCC 300KT DH 57.0 57.0 0.0% 62.9 77.6 87.2

Suezmax 150KT DH 40.0 40.0 0.0% 44.9 54.4 62.6

Aframax 105KT DH 27.5 27.6 -0.5% 31.2 39.1 44.7

Panamax 70KT DH 25.0 25.0 0.0% 26.7 35.2 38.8

MR 45KT DH 25.0 25.0 0.0% 24.6 28.4 26.5

Secondhand Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5yrs old Jan-13 Dec-12 % 2012 2011 2010

Capesize 170k 32.7 32.5 0.5% 34.6 43.5 57.4

Panamax 73K 18.0 18.0 0.0% 22.7 31.3 39.0

Supramax 52k 19.5 19.8 -1.3% 23.0 28.1 32.2

Handysize 29K 15.5 15.8 -1.6% 18.2 23.5 26.2

New Building Indicative Market Prices (million$)

VesselWeek

03

Week

02% 2012 2011 2010

Bulkers

Capesize 170k 45.5 45.5 0.0% 46 53 58

Panamax 75k 25.3 25.3 0.0% 26 33 35Supramax 57k 24.3 24.3 0.0% 25 30 31

Handysize 30k 21.0 21.0 0.0% 21 25 27

Tankers

VLCC 300k 91.5 92.0 -0.5% 94 102 103

Suezmax 150k 56.0 56.0 0.0% 57 64 66

Aframax 110k 47.0 47.5 -1.1% 49 54 55

LR1 70k 40.5 41.0 -1.2% 41 45 46

MR 47k 33.5 33.5 0.0% 33 36 36

Gas

LPG M3 80k 184.5 184.5 0.0% 182 187 187

LPG M3 52k 69.5 69.5 0.0% 70 73 72

LPG M3 23k 61.5 61.5 0.0% 61 64 65


22/28


Page 22

SHIPPING MARKE

Contributed by

Braemar Seascope

35 Cosway StreetLondon NW1 5BTUnited Kingdom

Phone: +44 (0) 20 7535 2650Website: www.braemarseascope.com

Container Market - Weekly Highlights

This week has seen a further pick up in enquiry as well as more forward

projects making their way out of the woodwork. This has meant our

BOXi has managed to post a small improvement of 0.18 points, some-

thing which was certainly thin on the ground in the last months of

2012.

The Far Eastern market is still largely playing things cautiously, with

many plans and key decisions on hold until it is clear how China in par-

ticular restarts after the Lunar New Year. In terms of the spot market it

is largely a continuation of last week with rates holding around last

done. That said, feeder vessels in the East will likely start to feel pres-

sure build as a number will find themselves redelivered over the slack

period as carriers temporarily reduce feeder capacity.

Vessel (TEU/HMG) Index +/-

510/28 5TEU (GL) 15.5 k 3.61 0.00

700/44 0TEU (GL) 17.5 k 4.00 0.00

750/415TEU (G) 16 k 4.71 0.00

1,000/65 0TEU (G) 17.5 k 5.00 0.00

1,100/71 5TEU (G) 19 k 6.06 0.11

1,350/92 5TEU (G) 20 k 4.19 0.00

1,600/1,1 50TEU (GL) 18 k 5.15 0.00

1,700/1,1 25TEU (G) 19.5 k 4.65 0.00

1,740/1,3 00TEU (G) 20.5 k 4.76 0.00

2,000/1,6 00TEU (G) 21 k 1.80 0.00

2,500/1,9 00TEU (G) 22 k 3.16 0.07

2,800/2,0 00TEU (GL) 22 k 2.70 0.00

3,500/2,5 00TEU (GL) 23 k 2.23 0.00

4,250/2,8 00TEU (GL) 24 k 1.72 0.00

Index Total 53.74 0.18

The Mediterranean on the other hand is seeing relatively healthy en-

quiry for feeder vessels and as a result increasingly firm rates are being

commanded for vessels between 1000-1700teu. With the rate differen-

tial to the Far East in the region of US$500 per day, which given the low

rates of today is a considerable premium in percentage points.

While the week has seen more potential forward enquiry being laid

down in the East it is mostly dependant on how the fundamentals fare

in February. In the meantime one would expect the charter market to

continue somewhat in Limbo until liner operators are able get a clear

read on the year to come.

20

40

60

80

100

120

Mar2010

May2010

Jul2010

Sep2010

Nov2010

Jan2011

Mar2011

May2011

Jul2011

Sep2011

Nov2011

Jan2012

Mar2012

May2012

Jul2012

Sep2012

Nov2012

Jan2013

Mar2013

The BOX Index (BOXi) 53.74

Braemar Seascope Containers - London - Singapore - ShanghaiS&P email: [email protected] Chartering email: [email protected]

London: Nick Hubbard, Phil Woodington, Graham Booth, Ben Jeans, Ranulf Swallow, Lily Gao, Peyton Broer, Bill Price and James Klonaris

Singapore: James Buck, Roy Edkins, Ming Xiang Ling and Tanja Friese Shanghai: Axel Huang

Research: Jonathan Roach

www.braemarseascope.com

Every effort as been made to ensure the information contained within this report is accurate, Braemar Seascope cannot accept responsibi lity for error, omission or consequence therefrom

Representative Fixtures

Name Dwt Teu 14T Blt Spd Cons GR Charterer Dely Date Period US$/day

Miramarin 85,523 6,574 4,864 2010 25.6 206.0 GL MSC NE Asia Jan 12 mos 20,000

Mol Infinity 68,539 5,711 4,360 1996 25.6 202.0 GL HMM NE Asia Jan 2 mos 13,500

OCL Eagle 39,000 2,824 2,029 2007 24.0 95.0 GL Oman Shipping PGI Jan 5 mos 6,250

Santa Bettina 39,418 2,824 2,030 2007 24.0 95.0 GL CMA CGM UK Cont Ja n 8-12 mos 6,500

Meta 2,708 2,708 2,200 2001 22.0 86.0 GL CMA CGM Med Jan 2-12 mos 5,900

Sirius 25,107 1,617 1,212 1998 20.0 70.0 G CMA CGM Med Jan 3-5 mos 6,500

Mount Bokor 13,698 1,114 700 2005 19.0 41.0 G Merchant Shipping SE As ia Jan 30 days 5,100

Indian Express 13,760 1,102 700 2008 19.6 42.0 G MCC NE Asia Jan 2-4 mos 5,350

Mol Grace 17,700 1,032 920 1998 19.0 38.0 GL SITC SE As ia Jan 24 mos 6,200

Hohebank 11,500 966 604 2007 18.8 37.0 G MSC SE Asia Jan 12 mos 5,650


23/28


Page 23

SHIPPING MARKE

Tanker Market - Weekly Highlights

Contributed by

Charles R. Weber Company, Inc.

Charles R. Weber Company, Inc.Greenwich Ofce Park One,Greenwich CT 06831

Phone: 203 629-2300Website: www.crweber.com

VLCCs, Aframaxes lead 2012 tanker marketimprovement

Average earnings across the key tanker classes marked a returnto year-on-year gains during 2012, paring losses observed during2011. The key VLCC, Suezmax and Aframax segments recorded a31% y/y rise in earnings, led by strong gains of 28% and 57% in theVLCC and Aframax classes, respectively.

VLCCs benetted from an early boost in ton-mile demand during1H12 as Eastern nations reduced imports of crude from Iran aheadof mid-year sanctions implementation and a narrower Brent/Dubaiprice premium, stoking greater numbers of long-haul voyages onthe WAFR-FEAST and CBS-FEAST routes. A simultaneous 1H12rise in Middle East VLCC cargoes materialized on the back ofrenewed efforts by Saudi Arabia to allay fears over any prospectivecrude supply constraints resulting from reduced export volumes ofIranian crude also aided the market by prompting greater heavycrude imports at the USG area. Though during 1H12 the greater

corresponding long-haul AG-USG chartering activity was largelyattributed to inventory building at Port Arthur, TX, ahead of Motivas325,000 b/d expansion, y/y demand gains on the route remainedthrough 2H12 despite a halting of the expanded rening capacityduring 2H12 due to corrosion issues.

Overall, ton-mile demand growth in the VLCC sector expandedby 10.8%, y/y, following a 32.9% y/y growth rate during 2011. Nety/y eet growth rates of 6.2% and 7.0% during 2012 and 2011,respectively, improved prevailing overall supply/demand ratios in thesector, as evidenced by the rise in earnings in the sector to $22,500/day during 2012 from $17,600/day during 2011.

Aframaxes earnings growth led the tanker sector, rising to anaverage of $15,700/day during 2012 from $14,500/day during 2011.

Mediterranean market demand benetted from a quicker thanexpected recovery of Libyan crude exports which expanded Libya-driven spot market activity in the region in excess of pre-war levelsafter charterers reduced period cover over the course of the war. Inthe Baltic Sea market, the inauguration of BPS-2 and its Ust-Lugaterminus in the Gulf of Finland boosted monthly Aframax volumes inthe region by as much as 144% from October, when phase 1 of thesystem progressed into full operations when compared to the monthspreceding the systems test phase between March and September.

In the Caribbean market, total Aframax demand rose by 10.1%, y/y.The demand gain is inclusive of a 6.1% y/y gain in cargoes fromthe Caribbean area to points in the US, despite stronger competitionfrom Suezmaxes, for which regional activity rose 36%, y/y.

Tanker Earnings Progression

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

VLCC

Suezmax

Aframax

$/day

Data: C R Weber

Spot Market WS TCE WS TCE

VLCC 01/11 01/18

AG>USG 280 kMT 24.5 $(3,100) 23.0 $(5,30

AG>SPORE 270 kMT 42.0 $21,400 40.0 $18,4

AG>JPN 265 kMT 42.0 $21,300 40.0 $18,1WAFR>USG 260 kMT 43.5 $22,400 43.5 $22,8

WAFR>CHINA 260 kMT 42.5 $21,300 40.25 $18,0

SUEZMAX

WAFR>USAC 130 kMT 62.5 $16,400 57.5 $12,8

B.SEA>MED 135 kMT 67.5 $14,400 60.0 $7,50

CBS>USG 130 kMT 67.5 $16,900 67.0 $16,7

AFRAMAX

N.SEA>UKC 80 kMT 85.0 $14,200 82.5 $12,4

AG>SPORE 70 kMT 85.0 $14,300 85.0 $14,4

CBS>USG 70 kMT 85.0 $7,700 85.0 $7,90

MED>MED 80 kMT 80.0 $11,600 77.5 $10,1

PANAMAX

CBS>USAC 50 kMT 105.0 $8,500 110.0 $10,4

CONT>TA 55 kMT 102.5 $10,700 97.5 $10,0

ECU>USWC 50 kMT 151.0 $25,200 152.5 $26,5

CPP

CONT>TA 37 kMT 170.0 $20,600 160.0 $18,3

CBS>USAC 38 kMT 140.0 $15,300 135.0 $14,2

USG>TA 38 kMT 110.0 $8,800 100.0 $6,40

AG>JPN 35 kMT 125.0 $9,400 125.0 $9,40

SPOR>JPN 30 kMT 140.0 $9,800 137.0 $9,30AG>JPN 75 kMT 88.0 $15,800 82.0 $12,9

AG>JPN 55 kMT 115.0 $16,800 107.5 $14,2

Time Charter Market$/day (theoretical)

1 Year 3 Years

VLCC $20,250 $24,000

Suezmax $16,500 $20,000

Aframax $13,750 $16,000

Panamax $13,500 $14,500

MR $13,500 $14,750


24/28


Page 24

SHIPPING MARKE

THE TANKER MARKETS

VLCC

The VLCC market was observably slower this week acrossall markets as charterers awaited stem conrmations beforeprogressing more concertedly into the February Middle Eastprogram and West Africa cargoes were impacted by a slowerNigeria exports program. Mounting negative pressure on rates,which had been building through most of the week culminatedtowards the end of the week with rate declines on key Middle Eastand West Africa routes after a single Middle East cargo receivedupwards of 8 offers. Near term downside appears greatest on theAG-USG route as owners are keen on the onward triangulatedtrading prospects given present triangulated Westbound tradeearnings of ~$25,900/day versus AG-East voyages which arepresently yielding ~$18,800/day.

We note that owners remain highly resistant to lower rates, which

has provided some limit to downside. Historically, January is arelatively strong month, but with MTD earnings averaging some25% below the January 2012 levels, owners remain keen to keeprates strong as forward rate progression remains uncertain withTD3 FFA indications presently in backwardation.

Though the two recent months Middle East cargo programs haveremained well below the 2012 monthly average of 127 and the1H12 average of 132, the 26 observed VLCC xtures from WestAfrica during December was well above the 2012 monthly averageof 23. Given the fact that units coming free in the Far East tend toweigh on both Middle East and West Africa positions, the ability forthe share of West Africa exports serviced by VLCCs to remain highwill likely be a key driver of the market given the higher ton-miledemand relative to the AG-Far East route.

Middle East

There were 20 fresh xtures reported in the Middle East market thisweek. Rates to the Far East shed 1.9 points, w/w, to an averageof ws41.5. TCEs on the route averaged ~$20,900/day, a w/wloss of ~$3,300/day. Rates to the USG eased 1.6 points, w/w, toan average of ws41.5. Triangulated Westbound trade earningsdropped ~$1,400/day, w/w, to an average of ~$25,500/day.

To date, 117 January and 18 February Middle East cargoes havebeen covered. With the January program now appearing to havelikely concluded early at this level, some 10 units will carry over intoFebruary dates and be compounded by a further 28 units comingfree through the rst decade of the month. Against this, we project20-22 cargoes through the same period of time. We expect that

rates will remain under modest negative pressure through thecoming week accordingly, though a faster pace of fresh cargoesas charterers progressing more aggressively into the Februaryprogram could limit or delay negative movements.

Atlantic Basin

The Atlantic basin was much quieter this week with just 7 freshxtures reported and more than half of these emanating fromWest Africa, and all bound for points in the East. Rates on theWAFR-FEAST route eased 2.5 points to ws40.3. TCEs on theroute averaged ~$18,300/day. In the Caribbean and North Seamarkets, rates posted modest gains on the back of tighter positionlists. In the former, positions were particularly tight for Februarydates prompting rates to West Coast India to rise to $3.8m (LS)

Tanker Market - Weekly Highlightswhile those to Singapore were untested but are presently assessedat $4.33m (LS) a $50k gain, w/w.

Suezmax

The Atlantic Suezmax market was under continued negativepressure this week on slower activity and a further supply/demandimbalance. Rates on the WAFR-USAC route shed 5 points toconclude at ws57.5. In the Black Sea market, rates on the BSEAMED route shed 7.5 points to settle at ws60.0, despite weatherrelated delays at Novorossiysk since Tuesday. The delays arereportedly expected to continue through the weekend, but onlya small number of loadings appear to have been prevented fromloading thus far. Assuming that cargo loading operations resumeon Monday, an impact on rate progression is unlikely.

Aframax

The Caribbean Aframax market saw little movement this week

as an oversupply of units continues to hamper owners ability tocommand higher rates on the back of continued weather and ullagedelays at the USG area. The CBS-USG route was unchanged athe ws85 level throughout the week. Though an improvement inrates appears unlikely during the week ahead, with some unitshaving disappeared from position lists towards the end of the weeknegative pressure is also likely to be limited.

The European Aframax market saw modest negative pressure thisweek as overall vessel availability prevented owners from holdingon to earlier rates. The NSEA-UKC route eased 2.5 points and theMED-MED route shed 2.5 points to ws77.5, despite weather delaysin the Black Sea.

Panamax

The Caribbean Panamax market saw an uptick in activity whichallowed rates to pare the previous weeks losses. The CBS-USACroute gained 5 points to conclude at ws110. With owners remainingbullish, sustained activity during the week ahead should see ratesextend this weeks gains.

Despite gains in the Caribbean market, rates in the Europeanmarket eased on a slower pace of fresh activity. The CONT-USGroute dropped 5 points to conclude at ws97.5. With TCEs in theCaribbean and European markets now within ~$400/day of eachother, ballasting between markets is unlikely.

MR

The Caribbean MR market remained active this week, led by

sustained exports from the USG area. Some 18 units are presentlyon subjects for USG liftings after charterers made a late-weekpush to cover requirements ahead of the US holiday weekendSome charterers were also looking at taking units on USG-FEASTvoyages to capture a potential Naphtha arbitrage, but ultimatelyno xtures materialized on the route. Rates on the USG-TA routewere volatile, closing around ws100 but with recent xtures havingrecently concluded both above and below this level.

The European MR market was under negative pressure as unitscame free off voyages from the USG and an uncertain gasolinearbitrage. The Cont-USAC route dropped 10 points to concludeat ws160.


25/28


Page 25

SHIPPING MARKE

S&P Secondhand, Newbuilding & Demolition Markets

Contributed by

Golden Destiny S.A.

Golden Destiny S.A.57 Akti Miaouli, Piraeus, 18536,Greece

Phone: +30 210 4295000Website: www.goldendestiny.gr

Key: (*) Incl. Crude Oil, Clean & Dirty Products, Chemical, Asphalt & Veg.

Oil,

(**) incl. LPG, LNG, (***) incl. Multi-purpose and Tweendeckers,

(*****) incl. Bulk-Ore, Ore-Oil and Bulk-Oil carriers,

(*****) incl. Ro-Ro Cargo, Ro-Ro Passenger,

(******) incl. Oil & Drilling Rigs, Tugs, Livestock, Trawlers, Cable/Exploration/

Navy/Support Vessels,

The newbuilding business remains hot for the rst month of the

year with investors being also willing to conclude S&P transactions

in the secondhand market and dispose their vintage tonnage at the

current favoring scrap prices. The third week of January ends with

lower volume of newbuilding deals but with higher value contracts

for the construction of large sized vessels, fewer reported demolitiontransactions at rm scrap prices and appetite for secondhand

purchases in the bulk carrier and tanker segments.

Overall, 19 transactions reported worldwide in the secondhand

and demolition market, down by 61% week on week due to a

53% decrease of secondhand purchasing activity and 74% lower

scrapping vessel removals. At similar week in 2012, the total S&P

activity was standing 69% higher than the current levels, when 32

transactions had been reported and secondhand ship purchasing

activity was 15% higher than the ordering business. The highest

activity has been recorded in the newbuilding market with 30 new

orders reported, while secondhand purchasing activity has been

centered more on vintage tonnage than modern vessels.

SECONDHAND MARKET

The week ended with S&P transactions in all main vessel segments

with focus on small vessel sizes of vintage tonnage. In the bulk

carrier segment, there was an activity in the handymax segment for

vessels of more than 15yrs old. The most modern S&P transaction

took place in the handysize segment for a vessel of 32,400dwt built

2003 Japan for about $10,5mil with special survey passed. In the

tanker segment, two S&P transactions reported in the very large

crude carrier segment for vessels built 1993 and 1997 sold for

about $21mil and $26,5mil respectively.

Overall, 14 vessels reported to have changed hands this week

at a total invested capital in the region of US$ 146 mil , 5 S&P

deals in the bulk carrier, 3 in the tanker, 2 in the gas tanker, 2 in

the liner and 2 in the container segment. In terms of the reported

number of transactions, the S&P activity is down by 53% from lastweeks activity, due to a 58% weekly decrease in the purchase of

bulk carriers and 81% decrease in tanker purchases. Comparable

with previous years weekly S&P activity is almost at similar levels

when 15 vessels induced buyers interest at a total invested capita

of about $219,02mil with tankers holding 53% of the total volume

of S&P activity. In terms of invested capital, the tanker segmen

appears as the most overweight segment by attracting abou

39% of the total amount of money invested with the purchase of 2

VLCCs and one handysize vessel.

NEWBUILDING MARKET

Key:/ * The total invested capital does not include deals reported withundisclosed contract price

** Deals reported as private and condential (not revealed

contract price)

In the newbuilding market, the third week of January concludes

with slower business from previous weeks but with interesting

news for the upcoming construction of large sized vessels unde

negotiations. In the container segment, Seaspan is sealing an

agreement with Hyundai Heavy Industries for the construction o

up to ten 14,000 TEU boxships including a t ime charter agreemen


26/28


Page 26

SHIPPING MARKE

S&P Secondhand, Newbuilding & Demolition Marketsfor over ten years with Yangming Marine. In the gas LNG tanker

segment, China Shipping Group and Mitsui OSK are expected to

conclude an agreement for the construction of up to eight 174,000

cum LNG carriers before the Chinese New year with Hudong-Zhonghua shipyard of China with a total value of about $1,5bn to

service the Australia Pacic LNG project. In addition, Bonny Gas of

Nigeria has reached an agreement with South Korean shipyards

for the construction of six 170,000 cum LNG carriers, four will be

built in Samsung and two in Hyundai for delivery in 2015-2016.

One more interesting newbuilding deal emerged for South

Korean shipyards under the current freight market recession and

uncertainty of worldwide shipping demand for the construction

of new vessels in the main vessel segment. Spore-based BW

Maritime has signed a contract with Samsung Heavy Industries

of South Korea for the construction of a LNG oating storage

regacication unit of 170,000 cbm at an undisclosed contractprice with delivery in 2015. Chinese yards are still beneting from

newbuilding deals in the very large crude carrier tanker segment

under the countrys strategic plan to establish a giant VLCC pool

of 50 very large crude carriers. Following Decembers order of last

year from China Ocean Shipping Group for the construction two

308,000dwt tankers in Dalian Shipbuilding, China Merchant Energy

is said to have now ordered three very large crude carriers with an

option of three more at CSSC Jiangnan shipyard.

Overall, the week closed with 30 fresh orders reported worldwide at

a total deadweight of 2,252,500 tons, posting a 33 % week-on-week

decline from previous week due to a 900% decline in contracting

activity for bulk carriers and 1800% downfall in the demand for

the construction of special projects. In the gas tanker segment,

there has been a remarkable 700% week-on-week increase from

strong LNG orders placed at South Korean Shipyards, while in the

container segment the massive postpanax order from Seaspan

lifted the weekly contracting activity by 600%. This weeks total

newbuilding business is up by 131% from similar weeks closing in

2012, when 13 fresh orders had been reported, 2 for bulkers, 6 for

tankers, 1 gas tanker and 4 special projects. In terms of invested

capital, the total amount of money invested is estimated in the

region of more than $2,25bn, 17 newbuidling deals reported at

an undisclosed contract price, with a hefty amount invested in the

offshore segment from the placement of a contract in Chinese yard,

CIMCs Yantai Rafes for two semisubmersible drilling rigs fromFrigstad Deepwater of Cyprus at a total cost of $1,3bn.

In the bulk carrier segment, Ultrabulk of Denmark will build

kamsarmax vessel of 81,000 dwt in Tsuneishi yard of Japan and it

would charter the vessel for up to 13 years upon its delivery at end-

2014. In the handysize segment, Canadian CanForNav has order

four 36,000dwt vessels in Yangfan yard of China, an eco design

with an option for two more vessels.

In the tankersegment, China Merchant Energy is said to have now

ordered three very large crude carriers with an option of three more

at CSSC Jiangnan shipyard. The rst very large crude carrier is

scheduled to be delivered at the end of 2014 and the other two

in the rst and third quarter of 2015. In addition, US listed -Nordic

American Tankers is under the process of ordering two suezmaxtankers in Samsung Heavy Industries of South Korea for delivery

from late 2014 at an expected cost of about $56-$57mil each

including option for further units.

In the product segment, Stena Bulk of Sweden has declared

an option for two more sophisticated vessels of 50,000dwt for

construction at Guangzhou Shipyard International (GSI) for its

vegoil activities, extending the series to eight sister vessels from

its initial order of six vessels placed in May 2012. The newbuilding

cost is estimated in the region of $40mil each with delivery in late

2015.

In the gastankersegment, Bonny Gas of Nigeria has reached anagreement with South Korean shipyards for the construction of six

170,000 cum LNG carriers, four will be built in Samsung and two in

Hyundai for delivery in 2015-2016.

In addition, Spore-based BW Maritime has signed a contract with

Samsung Heavy Industries of South Korea for the construction of

a LNG oating storage regacication unit of 170,000 cbm at an

undisclosed contract price with delivery in 2015. A company ofcia

stated in Fairplay: We are not strangers to the LNG business

We want to increase LNG activities as this is our strategy going

forward. BW noted that it has a good relationship with South

Korean shipbuilders and that it chose Samsung, the second-bigges

among South Koreas yard groups, because it offered an attractiveproposition. SHI also has a proven track record in delivering LNG

vessels to some of the worlds biggest LNG players, it added. BW

has been investing in the LPG and LNG sectors. In the last 18

months, we have had six LPG acquisitions, and we ordered two

LNG carrier newbuildings, BW explained. The Singaporean owne

declines to reveal either the price of the newbuilding or future

employment of the vessel.

In the container segment, Hyundai Heavy Industries of South

Korea has won the order for ve 14,000 TEU containerships

including an option for ve more, for Canadian shipowner Seaspan

to be chartered on a long term contract with Taiwans Yang Ming

Marine Transport Corp. The order is valued at about $600mil and

vessels will be delivered from the beginning of 2015. The ships wil

measure 368m in length, 51m in width and 30m in depth, HHI said

The vessels will have electronically controlled main engines for fue

efciency and HiBallast seawater treatment systems, HHI added.

DEMOLITION MARKET

In the demolition market, Bangladesh and India have remained

very active for the rst weeks of January with aggressive prices

above $400/ldt, while China is in very close proximity with the

Indian subcontinent region before the Chinese New Year. During

2012, 1291 vessels are estimated to have been sent to the scrap


27/28


Page 27

SHIPPING MARKE

S&P Secondhand, Newbuilding & Demolition Marketsyards, 529 bulkers, 158 tankers, 169 containers, with an ongoing

trend for further intensive scrapping in 2013. Compared with 2011

levels, demolition activity increased by 49% year-on-year, when 869

vessels were scrapped, 321 bulkers, 147 tankers, 42 containers.The week ended with 5 vessels reported to have been headed

to the scrap yards of total deadweight 130,077 tons. In terms of

the reported number of transactions, the demolition activity has

been marked with a 74% week-on-week decline, due to 78% and

72% lower volume of demolition transactions in the bulk carrier

and container segment respectively. In terms of deadweight sent

for scrap, there has been 86% decrease with no activity in the

disposal Iarge sized vessels. India won 3 of the 5 total demolition

transactions and China 2 demo deals. At a similar week in 2012,

demolition activity was up by 240% from the current levels, in

terms of the reported number of transactions, 17 vessels had

been reported for scrap of total deadweight 1,009,630 tons with

bulk carriers grasping 41% of the total number of vessels sent for

disposal. India and Pakistan had been offering $470-$475/ldt for

dry and $495-$500/ldt for wet cargo.

GREEK PRESENCE

The third week of January ends with weak investments of Greek

owners. In the newbuilding market, there were no contracts

reported by Greek owners, while in the secondhhand market, they

reported to have purchased one handymax bulker of 46,641dwt

built 1995 Japan for about $6,5mil with drydock due this month and

one handy containership built 1997 South Korea

shipping newsletter week4

Documents