Market insight

By George Iliopoulos

SnP Broker

Is the market in a recovery mood?

August is typically a time when the shipping industry takes it easy… charter-ers book their requirements early on… shipowners go on holidays and every-thing rolls smoothly.

This year’s August proved to be slightly different. The market started to liven up early on and freight rates for Dry Bulkers enjoyed a small increase. The results from this small increase took no time at all to also show its face in the SnP market with activity there picking up again. If one wonders how could this be, let’s take a moment here to remind ourselves that the BDI was stuck below 1,000 points since early June, while since early April there had been only a handful of times that the index broke above this level. As such up to now it has mainly been a few traditional shipping houses and some new funds that have been active in the SnP market during this period.

All this seemed to have changed since early August where there was defi-nitely a positive momentum building up. After a period of hibernation, a number of owners started to display their buying appetite once more. Com-petition started to mount with this becoming quite evident in some of the latest reported deals and in some cases causing prices for ships to firm.

An example of such a case is the recent sale of the “LOWLANDS NEL-LO” (76,830dwt-blt 04 JPN) which went for USD 17.2m, compared to the sale of the “RONDEAU” (77,031dwt-blt 06 JPN) which didn’t even manage to reach USD 18m in early June despite being a younger vessel. The question therefore is if this is the end of a difficult period in the market or is whether there is still a long way to go before we can say that we are seeing better prospects which can support bigger waves of optimism.

During the past couple of weeks, Capes along with some fresh cargoes open-ing up in India and the Far East that have helped pull the whole market out of its hibernation. What remains to be seen now is how long will this last in order to provide rates with stronger support and at the same time guide the market out of this difficult period which has been denying our industry those long awaited better days.

It is also very interesting to see how asset values will fluctuate in the next few months, especially for those vessels built after 2000 which appear to be currently holding the prime buying interest amongst interested parties. Many buyers at this moment believe that prices are at a very attractive level and appear to be willing to offer slightly above market in order to secure the deal, considering that if the freight market starts to recover, prices will rise fairly fast, which is pretty much what we witnessed during the 2013 price boom.

We could therefore say that currently the shipping industry is pretty much stuck in a limbo, with market players being very conservative in respect to their next move, taking into consideration the recent past where we wit-nessed a market moving towards a recovery only to suddenly see a reversal and an abrupt landing. Unfortunately, conditions in this new age of shipping dictate that no one can make easy predictions with regards to even the near term future as there are too many external factors which affect the market’s direction. Let’s then just leave off on the hope that we will see a better mar-ket fairly soon.

Chartering (Wet: Softer - / Dry: Firm + )

The Dry Bulk market noted another weekly increase, with rates for Capes and Supras firming the most, while enquiry for the former seems to have eased a bit at the end of the week. The BDI closed today (26/08/2014) at 1,070 points, down by 18 points compared to Friday’s levels (22/08/2014) and an increase of 30 points compared to previous Tuesday’s closing (19/08/2014). The crude carriers market witnessed further softening this past week, although charterers in the MEG are expected to make a come back in the next days that should allow for rate improvements as far as VL tonnage is concerned. The BDTI Friday (22/08/2014) was at 759 points, an increase of 12 points and the BCTI at 548, a decrease of 1 point compared to previous Friday (15/08/2014).

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

SnP activity has warmed up a bit during the last week, as despite the cloud of uncertainty that still hangs over the Dry Bulk market the buying interest is still there, while Greek owners remain buyers in the case of both tankers and bulkers. On the tanker side, we had the sale of the “ULRIKEN” (309,996dwt-blt 98, S. Korea), which was picked up for a price of US$ 26.0m. On the dry bulker side, we had the sale of the “ZHUSHUI 5” (79,501dwt-blt 12, China) , which was picked up by Greek buyers for a price of $20.9m.

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

The newbuilding market has witnessed a bigger volume of orders during the past week and while most deals reported are probably contracts agreed at earlier dates it is still a notable firming in terms of activity. At the same time it seems that quotes from yards have softened further in the case of dry bulkers, while in those cases where prices on concluded orders are available we are noticing that these are even lower. Before the newbuilding market experiences improved prices, we will have to see some further buying interest in the SnP market or as in the case of newcomer in the industry AMK Securities, the revival of interest from private equity funds that might push prices higher. In terms of recently reported deals, Norwegian owner, Knutsen NYK, has placed an order at Hyundai, in S. Korea, for two firm and two optional Suezmax shuttle tankers (160,000dwt), for a price of US $ 125.0m each and with delivery set in 2016.

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

The Indian Sub-Continent demolition market has yet to find a more sta-ble footing, with bids from different breaking countries changing the direction every week. The performance of local currencies is as expected the major contributor to these movements. The Indian Rupee, which has spent a big chunk of the summer holding its ground against the US Dollar, has been struggling to retain its strength recently and the impact on the demo market has been overwhelming, with Indian prices shed-ding more than $40/ldt in just a few weeks. The good news is that the volatility of the Indian currency now seems to be easing off, with the currency settling back to the low 60s against its US counterpart, mainly due to the recent increased flow of foreign funds into the Indian equity and bond markets. This, in combination with the fact that the price of local steel plates has made an upward reversal recently, has allowed for the Indian market to make a mini come-back during the past week. At the same time, Bangladeshi breakers have remained overall quiet, while those in Pakistan have recently tasted some currency bitterness them-selves, fact which has removed steam off the activity in the country. Average prices this week for wet tonnage were at around 305-495$/ldt and dry units received about 290-470$/ldt.

Weekly Market Report

Issue: Week 34 | Tuesday 26th August 2014

© Intermodal Research 26/08/2014 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 53 33,728 55 36,241 -6.9% 25,847 21,133

280k MEG-USG 28 12,724 30 16,175 -21.3% 15,932 7,132

260k WAF-USG 55 34,365 60 40,381 -14.9% 36,415 26,890

130k MED-MED 65 16,641 73 22,576 -26.3% 27,961 17,714

130k WAF-USAC 63 15,969 73 22,708 -29.7% 21,446 13,756

130k BSEA-MED 63 13,035 73 22,034 -40.8% 27,961 17,714

80k MEG-EAST 105 21,718 118 26,031 -16.6% 17,539 11,945

80k MED-MED 105 27,327 92 19,908 37.3% 25,640 13,622

80k UKC-UKC 135 39,980 110 21,719 84.1% 35,213 18,604

70k CARIBS-USG 87 10,396 93 12,071 -13.9% 26,533 16,381

75k MEG-JAPAN 120 24,224 115 22,411 8.1% 12,582 12,011

55k MEG-JAPAN 128 18,414 125 17,383 5.9% 11,705 12,117

37K UKC-USAC 90 3,366 90 3,281 2.6% 7,139 11,048

30K MED-MED 115 7,022 115 6,932 1.3% 14,545 17,645

55K UKC-USG 115 15,909 125 19,673 -19.1% 22,874 14,941

55K MED-USG 113 14,390 120 17,166 -16.2% 20,226 12,642

50k CARIBS-USAC 120 15,737 115 8,793 79.0% 26,634 15,083

Vessel Routes

Week 34 Week 33$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Aug-14 Jul-14 ±% 2014 2013 2012

300KT DH 74.0 74.0 0.0% 72.4 56.2 62.9

150KT DH 49.0 48.5 1.0% 48.6 40.1 44.9

110KT DH 37.3 37.0 0.7% 36.8 29.2 31.2

75KT DH 32.8 32.6 0.4% 32.9 28.0 26.7

52KT DH 25.5 26.3 -2.9% 28.3 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

For the bigger part of August, the crude carriers market has been under downward pressure and last week was no exception. Limited enquiry seemed to be weighing on the market recently, Despite the performance of the market during the past week, sentiment still remains positive overall as the summer season has allowed for some healthy activity and numbers across all segments. Additionally, we expect to see rates bounce back up in the next few days, as charterers will eventually have to move more aggres-sively into the September program. Rates for VLs shed some additional WS points across the board this past week, but activity ex-MEG should be soon improving, while the supply of tonnage in the region is not expected to deny the market a mini recovery.

The Suezmax market remained under considerable pressure, with rates for cross-Med and Black Sea/Med voyages noting the biggest declines yet again. The WAF Suez was also very quiet during the biggest part of the week, while a glimpse of improvement was seen as the market slid into the weekend.

Rates for Aframaxes presented a mixed picture last week, with numbers for both cross-Med and cross-UKC voyages moving much higher, while the Caribs Afra continued its downward movement on the back of limited fresh business and too many ballasters in the region.

Sale & Purchase

In the VLCC sector, we had the sale of the “ULRIKEN” (309,996dwt-blt 98, S. Korea ), which was picked up for a price of US$ 26.0m.

In the MR sector we had the resale of the “SPP SACHEON S5126” (50,300dwt-blt 14, S. Korea), which was picked up for a price of US$ 37.1m.

Wet Market

Indicative Period Charters

- 24 mos - 'CHLOE' 2011 320,000dwt

- - $ 25,000/day - TESORO

-12 mos - 'BULL' 2009 50,500dwt

- - $ 13,750/day - BP

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 34 Week 33 ±% Diff 2014 2013

300k 1yr TC 29,250 29,250 0.0% 0 26,221 20,087

300k 3yr TC 33,250 33,250 0.0% 0 28,318 23,594

150k 1yr TC 24,250 24,250 0.0% 0 20,676 16,264

150k 3yr TC 26,250 26,250 0.0% 0 22,774 18,296

110k 1yr TC 18,250 18,250 0.0% 0 16,221 13,534

110k 3yr TC 21,250 21,250 0.0% 0 17,715 15,248

75k 1yr TC 15,750 15,500 1.6% 250 15,463 15,221

75k 3yr TC 16,500 16,500 0.0% 0 16,369 15,729

52k 1yr TC 14,250 14,250 0.0% 0 14,949 14,591

52k 3yr TC 15,250 15,250 0.0% 0 15,796 15,263

36k 1yr TC 13,250 13,250 0.0% 0 14,390 13,298

36k 3yr TC 14,250 14,250 0.0% 0 15,237 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

60

80

100

120

140

160

180

200

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 26/08/2014 3

0500

1,0001,5002,0002,5003,0003,5004,0004,500

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000$

/da

y

Average T/C Rates

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

170K 6mnt TC 26,500 26,250 1.0% 250 24,410 17,625

170K 1yr TC 23,750 23,750 0.0% 0 24,766 15,959

170K 3yr TC 23,250 23,250 0.0% 0 23,560 16,599

76K 6mnt TC 10,375 10,000 3.8% 375 13,218 12,224

76K 1yr TC 11,250 11,250 0.0% 0 13,084 10,300

76K 3yr TC 12,250 12,250 0.0% 0 13,730 10,317

55K 6mnt TC 11,250 10,750 4.7% 500 12,421 11,565

55K 1yr TC 11,250 11,000 2.3% 250 12,126 10,234

55K 3yr TC 11,500 11,250 2.2% 250 12,207 10,482

45k 6mnt TC 9,750 9,750 0.0% 0 10,722 9,771

45k 1yr TC 9,750 9,750 0.0% 0 10,413 8,852

45k 3yr TC 10,000 10,000 0.0% 0 10,582 9,237

30K 6mnt TC 8,000 8,000 0.0% 0 9,634 8,244

30K 1yr TC 8,500 8,500 0.0% 0 9,674 8,309

30K 3yr TC 9,000 9,000 0.0% 0 9,921 8,926

Han

dym

axH

and

ysiz

e

Period

2013

Pan

amax

Sup

ram

ax

Week

34

Week

33

Cap

esi

ze

2014$/day ±% Diff

Chartering

The Dry Bulk market closed off the week on a positive note, while the slight

increase of fresh business coming through in most size segments has been

encouraging. Despite this recent reversal though, there is still a lot of scep-

ticism in the market. The quick downward correction that took place on

Friday and today represents either a sign of a softer market ahead or just

the existence of a few bumps along the way. Either or, following the yo-yo

performance of the dry bulk market during recent years, market players will

need to see some longer periods of sustainable week-on-week improve-

ments before they call this a reversal.

Rates for Capes noted the biggest increase across the board, with enquiry

across both basins warming up. Despite the fact that rates improved by a

lot week-on-week, there was a substantial pullback on Friday, while this

week has not kicked off on a positive note either with the Baltic closed yes-

terday and another negative closing today for Capers.

The Panamax segment underperformed the rest of the market, with num-

bers moving sideways for the bigger part of the week. The Pacific Panamax

remained under pressure as the days progressed, despite positive signs in

the beginning of the week, while there were some improvements on the

number of voyages ex-USG and ECSA, with both regions witnessing healthy

volumes of activity.

Rates for Supras and Handies were also stronger across the USG region as

well as in the Black Sea. In the Pacific, things have also started to warm up a

bit following a very quiet summer period, with Australian and Indonesian

rounds achieving some very good numbers overall.

Sale & Purchase

In the Panamax sector, we had the sale of the “ZHUSHUI 5” (79,501dwt-blt 12, China) , which was picked up by Greek buyers for a price of $20.9m.

In the same sector we had the sale of the “RED IRIS” (75,730dwt-blt 03,

Japan), which was also picked up by Greek buyers for a price of $ 15.5m.

Aug-14 Jul-14 ±% 2014 2013 2012

180k 47.0 47.0 0.0% 48.7 35.8 34.6

76K 24.0 24.0 0.0% 26.1 21.3 22.7

56k 24.1 24.9 -3.0% 25.9 21.5 23.0

30K 19.1 19.5 -1.9% 20.3 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 12 to 16 mos - 'MAIA' 2009 82,193dwt

- Singapore ex DD 20/30 Sep - $ 12,000/day - RWE

- 3 to 5 mos - 'DENSA DOLPHIN ' 2010 58,772dwt

- dop Taiwan prompt - $ 10,000/day - Norden

Dry Market

Index $/day Index $/day Index Index

BDI 1,088 1,015 73 1,094 1,205

BCI 2,535 $17,066 2,151 $15,561 384 9.7% 1,864 2,106

BPI 812 $6,467 803 $6,397 9 1.1% 951 1,186

BSI 937 $9,797 877 $9,170 60 6.8% 928 983

BHSI 413 $6,120 382 $5,663 31 8.1% 543 562

15/08/2014

Baltic IndicesWeek 34

22/08/2014Week 33

Point

Diff

2014 2013$/day

±%

© Intermodal Research 26/08/2014 4

Secondhand Sales

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

PMAX ZHUSHUI 5 79,501 2012JINHAI HEAVY

INDUSTRY, ChinaMAN-B&W Jan-17 $ 20.9m Greek

PMAX RED IRIS 75,730 2003SANOYAS HISHINO

MIZ'MA, JapanB&W Aug-18 $ 15.5m Greek (Omikron)

SMAX ALIANCA ORIENT 52,454 2006TSUNEISHI CORP -

FUKUY, JapanMAN-B&W Oct-16

4 X 30t

CRANES$ 17.5m Indian

HANDY

ZHOUSHAN

CHANGHONG

CHB002

39,000 2014

ZHOUSHAN

CHANGHONG INT,

China

MAN-B&W -4 X 30,5t

CRANES$ 22.2m

HANDY

ZHOUSHAN

CHANGHONG

CHB001

39,000 2014

ZHOUSHAN

CHANGHONG INT,

China

MAN-B&W -4 X 30,5t

CRANES$ 22.2m

HANDYFORTUNE

FRONTIER29,738 2002

SHIKOKU

DOCKYARD, JapanB&W May-17

4 X 30,5t

CRANES$ 10.5m Greek

SMALL CELAL AMCA 12,274 2001SHIN KURUSHIMA

IMABARI, JapanMitsubishi Apr-16

3 X 30t

CRANES$ 4.9m Turkish

HK based

Bulk Carriers

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

LPGNORGAS

PETALUMA9,352 2003

HUDONG-

ZHONGHUA

SHIPBU, China

MAN Mar-18 8,385 $ 24.0mSingaporean

(SGPC)

Gas/LPG/LNG

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

VLCC ULRIKEN 309,996 1998SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W Dec-18 DH $ 26.0m undisclosed

AFRA MOSCOW 106,553 1998NKK CORP - TSU,

JapanSulzer Nov-18 DH $ 12.0m Russ ian

AFRA D.T. PROVIDENCE 104,255 2008

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W Jun-18 DH $ 33.5m

AFRA ENRICA LEXIE 104,255 2008

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W Aug-18 DH $ 33.5m

MRSPP SACHEON

S512650,300 2014

SPP SHIPBUILDING -

SAC, S. KoreaMAN-B&W - DH $ 37.1m Ital ian (Scorpio)

MR NORD FAST 40,083 2008SLS SHIPBUILDING

CO LT, S. KoreaMAN-B&W Jan-18 DH $ 20.4m undisclosed epoxy

SMALL ALFATEM 6,753 2000 DEARSAN, Turkey MAN-B&W Oct-15 DH undisclosed undisclosed marinel ine

Tankers

Greek

© Intermodal Research 26/08/2014 5

Secondhand Sales

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

FEEDER PLUTO 1,835 1999GDYNIA STOCZNIA

SA, PolandB&W May-14

3 X 45t

CRANES$ 5.0m Greek

FEEDER AS POSEIDON 1,835 1999

GDANSKA

STOCZNIA GRUPA,

Poland

B&W Aug-143 X 45t

CRANES$ 5.0m Greek

FEEDER WILHELM E 1,452 1995

KVAERNER

WARNOW,

Germany

Sulzer - $ 4.2m Singaporean

FEEDER VEGA TURMALIN 1,116 1999TIANJIN XINGANG

SHIPYA, ChinaSulzer -

2 X 45t

CRANES$ 2.9m UAE based

FEEDER JOHANNA 700 1999SIETAS KG,

GermanyMAN Dec-14 $ 1.6m

German

(Foroohari

Reederei)

Containers

© Intermodal Research 26/08/2014 6

The newbuilding market has witnessed a bigger volume of orders during the past week and while most deals reported are probably contracts agreed at earlier dates it is still a notable firming in terms of activity. At the same time it seems that quotes from yards have softened further in the case of dry bulkers, while in those cases where prices on concluded orders are available we are noticing that these are even lower. Before the newbuilding market experiences improved prices, we will have to see some further buying inter-est in the SnP market or as in the case of newcomer in the industry AMK Securities, the revival of interest from private equity funds that might push prices higher.

In terms of recently reported deals, Norwegian owner, Knutsen NYK, has placed an order at Hyundai, in S. Korea, for two firm and two optional Su-ezmax shuttle tankers (160,000dwt), for a price of US $ 125.0m each and with delivery set in 2016.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

34

Week

33±% 2014 2013 2012

Capesize 180k 55.5 55.5 0.0% 56.4 49 47

Kamsarmax 82k 30.0 30.5 -1.6% 30.5 27 28

Panamax 77k 29.0 29.5 -1.7% 29.3 26 27

Supramax 58k 27.5 27.5 0.0% 27 25 25

Handysize 35k 23.0 23.5 -2.1% 23 21 22

VLCC 300k 98.5 98.5 0.0% 99.0 91 96

Suezmax 160k 65.0 65.0 0.0% 65 56 58

Aframax 115k 53.5 53.5 0.0% 54 48 50

LR1 75k 45.5 45.5 0.0% 45.8 41 42

MR 52k 37.0 37.0 0.0% 36.9 34 34

186.0 186.0 0.0% 185.7 185 186

79.5 79.5 0.0% 78.0 71 71

67.0 67.0 0.0% 66.2 63 62

44.0 44.0 0.0% 43.8 41 44

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

Bu

lke

rsTa

nke

rs

Vessel

Indicative Newbuilding Prices (million$)

10

30

50

70

90

110

mil

lion

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2+2 Tanker 160,000 dwt Hyundai HI, S.Korea 2016 Norwegian (Knutsen NYK) $ 125.0mshuttle tankers, T/C

to BG

2 Tanker 74,500 dwt Sungdong, S.Korea 2016-2017 Japanese (Nisshin Shpg) undisclosed eco design

1 Tanker 50,000 dwt Honghua Offshore 2016S. Korean (Udin

Engineering)

around

$33.0m

10+10+10 Bulker 206,000 dwt Jinhai, China 2016-2019 US Fund (AMK Securities) $ 59.0m

2 Bulker 82,000 dwt Tsuneishi Zosen, China 2017 Japanese (Santoku Senpaku) undisclosed

2 Container 19,000 teu DSME, S. Korea 2016 BCLC China undisclosed long T/C to MSC

2 Container 1,000 teu Dae Sun, S. Korea 2016S. Korean (Nam Sung

Shipping)undisclosed

2 Container 1,000 teu Dae Sun, S. Korea 2016Shanghai International Port

Groupundisclosed

1 Gas 84,000 cbm Hyundai HI, S.Korea 2016 S. Korean (KSS Line) $ 78.0m LPG, against long T/C

Newbuilding Orders Size

© Intermodal Research 26/08/2014 7

The Indian Sub-Continent demolition market has yet to find a more stable footing, with bids from different breaking countries changing the direction every week. The performance of local currencies is as expected the major contributor to these movements. The Indian Rupee, which has spent a big chunk of the summer holding its ground against the US Dollar, has been struggling to retain its strength recently and the impact on the demo market has been overwhelming, with Indian prices shedding more than $40/ldt in just a few weeks. The good news is that the volatility of the Indian currency now seems to be easing off, with the currency settling back to the low 60s against its US counterpart, mainly due to the recent increased flow of foreign funds into the Indian equity and bond markets. This, in combination with the fact that the price of local steel plates has made an upward reversal recently, has allowed for the Indian market to make a mini come-back during the past week. At the same time, Bangladeshi breakers have remained overall quiet, while those in Pakistan have recently tasted some currency bitterness them-selves, fact which has removed steam off the activity in the country. Average prices this week for wet tonnage were at around 305-495$/ldt and dry units received about 290-470$/ldt.

The highest price amongst recently reported deals, was that paid for the Bulker ‘PRINCESS VANYA’ (70,329dwt-9,074ldt-blt 89), which received a very firm price of $ 514/ldt as it included full spares.

Demolition Market

Week

34

Week

33±% 2013 2012 2011

Bangladesh 480 485 -1.0% 422 440 523

India 485 480 1.0% 426 445 511

Pakistan 495 495 0.0% 423 444 504

China 305 305 0.0% 365 384 451

Bangladesh 455 460 -1.1% 402 414 498

India 455 450 1.1% 405 419 484

Pakistan 470 470 0.0% 401 416 477

China 290 290 0.0% 350 365 432

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

JAG PRACHI 28,610 9,680 1991KHERSONSKIY SSZ -

USR, RussiaTANKER $ 484/Ldt Indian

PRINCESS VANYA 70,329 9,074 1989 SANOYAS, Japan BULKER $ 514/Ldt undisclosed incl. full spares

MERATUS SPIRIT 2 13,226 5,422 1989SHANGHAI

SHIPYARD, ChinaGC $ 479/Ldt Bangladeshi

G. INEBOLU 18,466 5,258 1983DENIZCILIK

CAMIALTI, TurkeyBULKER $ 490/Ldt Indian

Demolition Sales

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without mak-ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.

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

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

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

Finance News

“Voters OK Capital change

The plan's approval paves the way for a five-newbuilding acquisition from the New York-listed owner's sponsor and general partner, Evangelos Marinakis-controlled Capital Maritime & Trading. About 51.7% of Capital Products Partners' common unitholders approved the changes to the incentive distribution rights (IDRs) structure, which will have the effect of boosting Capital Maritime's share of distributions, or dividends, beyond its 2% general partner split. It is meant as an incentive for further vessel dropdowns. However, Capital Product said that after the vote, Capital Maritime unilaterally decided to forego IDR payments until common unitholders receive distributions of at least $0.25 per share, up from the planned threshold of nearly $0.243 per share. Of the combined common and preferred shareholders, 59.5% approved the changes. Some 85.8% of common unitholders and 89.7% of com-bined preferred and common shareholders partici-pated in the meeting to approve the plan.

The IDR plan is sweetened for shareholders by below-market prices that Piraeus-based Capital Product is poised to pay for three newbuilding containerships and two products tanker newbuildings from Capital Maritime. The spin-off will pay $81.5m each for three 9,160-teu eco-flex containerships at Daewoo Ship-building & Marine Engineering. The vessels come with 60-month charters to French liner operator CMA CGM. Capital Product will pay $33.5m each for the medium-range products tankers under construction at Samsung Heavy Industries. Those ships come with charters to Capital Maritime for two years at $17,000 per day, plus a 50-50 profit share.” (Trade Winds)

Commodities & Ship Finance

22-Aug-14 21-Aug-14 20-Aug-14 19-Aug-14 18-Aug-14W-O-W

Change %

10year US Bond 2.400 2.410 2.430 2.400 2.390 2.1%

S&P 500 1,988.40 1,992.37 1,986.51 1,981.60 1,971.74 1.7%

Nasdaq 4,538.55 4,532.10 4,526.48 4,527.51 4,508.31 1.6%

Dow Jones 17,001.22 17,039.49 16,979.13 16,919.59 16,838.74 2.0%

FTSE 100 6,775.30 6,777.70 6,755.50 6,779.30 6,741.30 1.3%

FTSE All-Share UK 3,619.38 3,618.89 3,606.33 3,621.34 3,600.68 1.3%

CAC40 4,252.80 4,292.93 4,240.79 4,254.45 4,230.65 1.9%

Xetra Dax 9,339.17 9,401.53 9,314.57 9,334.28 9,245.33 2.7%

Nikkei 15,539.19 15,586.20 15,454.45 15,449.79 15,322.60 1.4%

Hang Seng 25,112.23 24,994.10 25,159.76 25,122.95 24,955.46 0.6%

DJ US Maritime 398.86 399.11 398.03 398.27 398.48 1.5%

$ / € 1.33 1.33 1.33 1.33 1.34 -0.9%

$ / ₤ 1.66 1.66 1.66 1.66 1.67 -0.7%

¥ / $ 103.90 103.83 103.32 102.72 102.47 1.4%

$ / NoK 0.16 0.16 0.16 0.16 0.16 -0.1%

Yuan / $ 6.15 6.15 6.15 6.15 6.15 0.1%

Won / $ 1,019.96 1,022.48 1,021.52 1,018.04 1,020.00 0.0%

$ INDEX 88.40 88.20 88.00 87.80 87.50 1.0%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,270

1,280

1,290

1,300

1,310

1,320

1,330

90

95

100

105

110

115

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

22-Aug-14 15-Aug-14W-O-W

Change %

Rotterdam 831.0 840.5 -1.1%

Houston 964.5 964.5 0.0%

Singapore 866.5 859.5 0.8%

Rotterdam 559.0 563.0 -0.7%

Houston 567.5 577.5 -1.7%

Singapore 589.5 595.5 -1.0%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 22-Aug-14 15-Aug-14

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 10.10 10.07 0.3%

BALTIC TRADING NYSE USD 5.88 5.84 0.7%

BOX SHIPS INC NYSE USD 1.32 1.45 -9.0%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 10.97 11.02 -0.5%

COSTAMARE INC NYSE USD 22.68 23.46 -3.3%

DANAOS CORPORATION NYSE USD 5.82 5.61 3.7%

DIANA SHIPPING NYSE USD 10.88 10.69 1.8%

DRYSHIPS INC NASDAQ USD 3.32 3.20 3.7%

EAGLE BULK SHIPPING NASDAQ USD 1.21 1.49 -18.8%

EUROSEAS LTD. NASDAQ USD 1.16 1.16 0.0%

FREESEAS INC NASDAQ USD 0.75 0.71 5.6%

GLOBUS MARITIME LIMITED NASDAQ USD 3.40 3.49 -2.6%

GOLDENPORT HOLDINGS INC LONDON GBX 350.70 346.19 1.3%

HELLENIC CARRIERS LIMITED LONDON GBX 36.50 38.00 -3.9%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.38 3.37 0.3%

NAVIOS MARITIME HOLDINGS NYSE USD 9.43 8.84 6.7%

NAVIOS MARITIME PARTNERS LP NYSE USD 20.07 20.06 0.0%

NEWLEAD HOLDINGS LTD NASDAQ USD 0.30 0.38 -21.1%

PARAGON SHIPPING INC. NYSE USD 5.19 5.17 0.4%

SAFE BULKERS INC NYSE USD 8.63 8.34 3.5%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.42 1.43 -0.7%

STAR BULK CARRIERS CORP NASDAQ USD 13.77 12.67 8.7%

STEALTHGAS INC NASDAQ USD 9.73 10.25 -5.1%

TSAKOS ENERGY NAVIGATION NYSE USD 7.54 6.92 9.0%

TOP SHIPS INC NASDAQ USD 2.04 1.88 8.5%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

26/08/2014

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