World Shipbuilding StatisticsFacts & Figures CommitteeFacts & Figures Committee

Simon StonehouseMarine Hull Underwriter

Brit Syndicates Ltd. / Lloyd’s of London

The statistics for this presentation have been derived from the Clarkson database. The Statistics have been compiled by the IUMI Facts and Figures Committee. The value of the current order book has been done by taking the known contract value or if not known the current new building price has been used.

Compensated Gross Tonnes :- In the 1970s European and Japanese builders came to the conclusion that measuring shipyard output by tonnage alone did not give a valid comparison. A yard building a 5,000 GT ferry would be doing as much work, in terms of man-hours and adding value, as a yard building a 15,000 GT bulk carrier. A set of conversion factors was agreed at the OECD in 1977 and updated in 1984. Under this system a VLCC of 250,000dwt and 125,000 GT would have a cgt of 31,250.

Region /Country ClassificationAfrica: Algeria, Angola, Ethiopia, Seychelles, South Africa

Americas: Argentina, Australia, Brazil, Canada, Chile, Venezuela

China: China

Europe: Austria, Belgium, Croatia, Cyprus, Denmark, Eire, Finland, France, Germany, Greece, Iceland, Italy, Monaco, Netherlands, Norway,

Poland,Portugal, Romania, Slovakia, Spain, Sweden, Switzerland, Turkey,

UK

Far East: Bangladesh, Hong Kong, India, Indonesia, Malaysia, Philippines, Singapore, Sri Lanka, Thailand, Vietnam

FSU: Azerbaijan, Kazakhstan, Latvia, Russia, Ukraine

Japan: Japan

Middle East: Dubai, Egypt, Iran, Israel, Kuwait, Qater, Saudi Arabia, U.A.E.

South Korea: South Korea

Taiwan: Taiwan

USA: USA

World Orderbook tops 200 m dwt

• Since 2002 the orderbook has jumped from 112 m dwt to 227 m dwt

• Orderbook is now 26.7% of the fleet, historically very high

• Biggest increase in 2005 LNG, LPG & containers

020406080

100120140160180200220

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Milli

on D

wt

LNGLPGMPPCellularCombosTankersBulkers

Doubled since 2002

Orderbook 1983-2006

Newbuilding Prices Peaked

• Aframax tanker peaked at $53MM in 1990, but new price fell to $33MM in Dec 1999 and today it costs $62 mill

• Some ships cost twice what they did four years ago 90

115

140

165

190

Jan

'90

Jan

'91

Jan

'92

Jan

'93

Jan

'94

Jan

'95

Jan

'96

Jan

'97

Jan

'98

Jan

'99

Jan

'00

Jan

'01

Jan

'02

Jan

'03

Jan

'04

Jan

'05

Jan

'06

New

Pri

ce In

dex

198

8=10

0 Note the price increase really clicked in during 2004

27%

New Prices 1990-2006

Orders by Country

New Orders by country

2005 Orders by Owner Country

0 2 4 6 8 10 12 14 16

Singapore

Iran

South Korea

Italy

Denmark

Greece

Norway

China P.R.

United States

Japan

Germany

Billion US Dollars

2005 Orders by Owner ($bn)

0.0 0.5 1.0 1.5 2.0 2.5

A.P. Moller

Reederei C.-P. Offen

Teekay Shpg. Canada

Kawasaki Kisen

Cido Shipping

Nippon Yusen Kaisha

Mediterranean Shpg.

NYK/KLine/MOL/Iino

Nat. Iranian Tanker

Royal Caribbean

Maersk Line

Billion US Dollars

• European owners dominated investment in 2005 with the Germans leading the way.

• Second was Japan followed by the United States, driven by an increase in large cruise ship contracting.

• Chinese owners the 4th largest investors in 2005.

• Maersk Line were the number one investor followed by Royal Caribbean and National Iranian Tankers.

World Shipbuilding: Shares of Deliveries

0 %

5 %

10 %

15 %

20 %

25 %

30 %

35 %

40 %

45 %

50 %1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

% C

GT

Deli

veri

es

Europe

Japan

Korea

China

Others

China Shipbuilding Expanding

• In 2001 China produced 1.1 million CGT, about the same as the previous four years.

• In 2005 output reached 3.7 million CGT, putting China in the Big League

• 7.2 million CGT of orders in 2005

0 1 1 1 1 1 1 1 12

3 34

0

1

2

3

4

5

6

7

8

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Milli

on C

GT D

eliv

erie

s

ForecastDeliveriesOrders

Source: China Shipbuilding

China Orders & Deliveries

World Fleet Growth 2001-5 & Forecast

2001 2002 2003 2004 2005 2006 2007

Orders 45.4 52.8 117.2 103.9

Deliveries 45.6 49.5 55 61.4 70.5 71.8 71.3

Scrapping 28.3 28.7 27.1 10.6 8.5 13.1 13

World Fleet yr end 755.3 773.3 797.1 843.9 906 966 1,024

Increase (m dwt) 13 18 24 46 62 60 58

Dwt of Ships Forecast Jan 2006

0 %

2 %

4 %

6 %

8 %

2001 2002 2003 2004 2005 2006 2007

Growth of World fleet

China24 %

FSU2 %

Europe19 %Far East

8 %

Japan19 %

Middle East1 %

South Korea23 %

Taiwan1 %

USA1 %

Americas1 %

Unknown1 %

Total No 5,653

Vessels on Order By Country of build @ August 2006 (Number)

Americas1 % China

19 %

FSU1 %

Europe14 %

Far East3 %Japan

21 %

Middle East0 %

Taiwan1 %

USA1 %

South Korea39 %

CGT

Vessels on Order by country of build @ 16th August 2006 (CGT)

Total 119.8 million CGT

Average size of vessel built by Region

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000A

me

rica

s

Ch

ina

FS

U

Eu

rop

e

Fa

r E

ast

Jap

an

Mid

dle

Ea

st

So

uth

Ko

rea

Ta

iwan

Un

kn

ow

n

Av

g D

Wt

0

100

200

300

400

500

600

700

800

900

1000

Ger

man

y

Japa

n

Gre

ece

Nor

way

Den

mar

kC

hina

P.R

.

Italy

Net

herla

nds

Uni

ted

State

sSin

gapo

re

Turk

eySou

th K

orea

Hon

g K

ong

Fran

ce

Uni

ted

Kin

gdom

Top Contracting Countries by Number of Vessels on Order

China

Europe

FSU

Japan

South Korea

Taiwan

Unknown

USA

Far East

Middle East

AfricaAmericas

FSU

Number on Vessels on order by Owner region (Number)

0

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

Japa

nG

reec

eG

erm

any

Chi

na P

.R.

Den

mar

kN

orw

ayH

ong

Kon

g

Iran

Italy

South

Kor

eaU

nite

d Sta

tes

Saudi

Ara

bia

Turk

eySin

gapo

reTa

iwan

Can

ada

Rus

sia

Top Contracting Countries by DWT of Vessels on Order

FSU

Japan

South Korea

Taiwan

Unknown

USA

Far East

Middle East

Africa

Europe

ChinaAmericas

FSU

Number on Vessels on order by ownership region (DWT)

What’s being built? (Number)

0

200

400

600

800

1000

1200

1400

Conta

iner

Bulk

Chem

& O

ilPro

duct

s

Tanke

r

MPP

Tug/Supply

Other

LPG

PCCGen

Cargo

LNG

RoRO

Ferry

What’s being built? (DWT)

0

10 000 000

20 000 000

30 000 000

40 000 000

50 000 000

60 000 000

70 000 000

80 000 000

Tanke

r

Bulk

Conta

iner

Produ

cts

Chem

& O

il

LNG

LPG

MPP

PCC

Other

FPSO/F

SOGen

Cargo

RoRO

Tug/SupplyCru

ise

Ferry

China19 %

FSU1 %

Europe18 %

Far East3 %

Japan19 %

Middle East0 %

South Korea37 %

Americas2 %

Taiwan1 %Unknown

0 %

Total Value 275.1 billion US$

Overall contract value of vessels on order

Actual Value of New building Vessel Type

0

10 000 000 000

20 000 000 000

30 000 000 000

40 000 000 000

50 000 000 000

60 000 000 000

70 000 000 000

80 000 000 000

Conta

iner

Bulk

Tanke

rLN

G

Produ

cts

Chem

& O

il

Cruise

Other

LPG

PCCM

PP

FPSO/F

SORoR

O

Tug/S

uppl

y

Ferry

GenCar

go

US

D

Contract Value of New building contracts by country

0

20 000 000 000

40 000 000 000

60 000 000 000

80 000 000 000

100 000 000 000

120 000 000 000

SouthKorea

China Japan Europe

US

D

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

China

Croat

ia

Denmar

k

Finlan

d

Franc

e

Germ

any

Italy

Japa

n

Nether

lands

Norway

Poland

Romania

Russia

Singap

ore

South

Kore

a

Taiwan

Turke

yUSA

Vietnam

US

D

Average US$ per CGT