BANCOSTA Weekly Market Report · Where is India sourcing all this additional coal? The second graph shows imports in 2017 and 2018 by loading area. SE Asia (i.e. Indonesia) exports

twitter.com/banchero_costa

Follow us on: linkedin.com/company/banchero-costa

Weekly Market Report

Week 21/2019 (20 May – 24 May)

Comment: Indian Coal Imports

index

comment page 2

chartering

dry cargo “ 3

tankers “ 6

containers “ 8

sale & purchase

newbuildings / finance “ 9

secondhand / demolition “ 10

commodities

news “ 11

prices “ 13

banchero costa network chartering - sale&purchase - ship finance - insurance - agency - research - and more...

SE Asia +2%

E Australia +12%

S Africa +7%

US Atlantic +41%E Africa -14%

Far East +17%NoPac +35%

0

25

50

75

100

125

150

175

200

225

2017 2018

mln

Mt

India Coal Imports by Origin - 2017 Vs. 2018

Handysize, 1%

Supramax, 21%

Panamax, 37%

Post-Panamax, 11%

Capesize, 28%

NewCastlemax, 2%

India 1st Quarter 2017 Imports by Size

0%

19%

-11%

13%

-4%

8%

-4%

4% 7%

-20%

30%

80%

130 %

180 %

0

10

20

30

40

50

60

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

mln

Mt

India Quarterly Coal Imports - Last 2 years

Imports (in mln MT) Y-o-Y Growth

comment

2 market report - week 21/2019

During the first quarter of 2019 the most dynamic and fastest growing major commodity was coal which grew an estimated 7% compared to the first quarter of 2018 to over 310 million.

Whilst imports into China and Japan the first and third largest importers were slightly lower during 1Q19 compared to same period of 2018, there was a very large number of countries where imports recorded two digits growth (in a few cases three digits growth); to name the largest India, Taiwan, Malaysia, Thailand, Vietnam, Pakistan, Bangladesh. It is clear that with the economic development the Subcontinent and SE Asia are quickly becoming the new sources of demand for the coal trade.

The single largest driver was India with imports that increased 14% (1Q18 vs. 1Q19) to over 56 million. India is set to rival China again as the largest importer of coal in 2019, a record briefly detained in 2015 and 2016.

Where is India sourcing all this additional coal? The second graph shows imports in 2017 and 2018 by loading area. SE Asia (i.e. Indonesia) exports to India only increased 2%, whilst imports from North America, both from the Atlantic and Pacific basins increased 41% and 35% respectively; a lot more coal was also imported from Australia +12%: not only India is importing a lot more coal, it is also importing it from further away.

If we compare coal imports in 1Q17 and 1Q19 we can see that despite the trends just described above the share of imports by each vessel size did not change much with Supramax sourcing 22% (was 21% in 2017) of coal, Panamax 40% (was 37%) and Capesize 29% (was 28%). One would believe that importing a lot more and from further away the vessels’ choice would move to bigger units, but, mainly due to port restrictions, this is not the case for Indian imports that offer good demand growth both for Supramax and Panamax and also for Capesize.

Indian Coal Imports

Handysize, 0%

Supramax, 22%

Panamax, 40%

Post-Panamax

, 6%

Capesize, 29%

NewCastlemax, 2%

India 1st Quarter 2019 Imports by Size

Unit 24-May 17-May W-o-W Y-o-Y

BPI TC Avg. usd/day 10,446 10,042 +4.0% +7.8%

BPI 82 TC Avg. usd/day 12,197 11,683 +4.4% +10.6%

P1 Transatlantic r/v usd/day 10,795 10,578 +2.1% +45.7%

P2 Skaw-Gib Trip East usd/day 18,245 17,850 +2.2% +18.7%

P3 Pacific r/v usd/day 9,691 8,765 +10.6% -13.9%

1 Yr TC Period Panamax usd/day 11,250 11,000 +2.3% -6.3%

1 Yr TC Period Kamsarmax usd/day 12,750 12,000 +6.3% -5.6%


BCI TC Avg. usd/day 12,243 11,909 +2.8% +3.3%

C8 Transatlantic r/v usd/day 9,660 10,100 -4.4% -5.6%

C14 China-Brazil r/v usd/day 13,373 13,173 +1.5% +6.9%

C10 Pacific r/v usd/day 13,721 11,992 +14.4% +3.5%

1 Year TC Period usd/day 15,500 15,500 +0.0% -11.4%

dry cargo chartering

Capesize market continued to improve and ended the week at $12,243/d as average of 5 TC. In the Pacific, the West Australia/China gained $0.5/mt during the week with fixtures done at $7.05/7.10/mt for early-June lay/can. Time charter rates were traded in the low/mid teens depending on vessels' position and positions for PAC RV. Some activity was recorded from Brazil, with mid $16's/mt agreed for mid-June dates. Few cargoes from Brazil to UKC/Passero range were fixed in the region of $6.50/mt basisTubarao/Rotterdam. In the Atlantic, the Bolivar/Rotterdam was very quiet, standing in the $8/mt, and front hauls were fixed at equivalent of around $25,000/26,000/d. Some activity was recorded on short period, with $15,000/d agreed for 7/10 months dely FEast spot.

Capesize Market

Rates

Panamax Market

Rates

Last week ECSAm area maintained good levels with Kamsarmax still achieving around $16.5k/d + $650k bb basis aps dely for front haul trips to Spore/Japan range. Basis retro, similar sizes were also committed at around $13.25k/d basis India dely and around $12.5k/d basis MEG dely. Panamax were committed basis Spore dely at around $11/11.5k/d for front haul trips via ECSAm to Feast, while for redely Pakistan at $15k/d + $500k bb basis aps. Trips via ECSAm to Skaw/Gib redely were also reported on Pmax at $17.25K/d basis aps dely, while basis NBrazil dely an 82k dwt was reported done at 2-3LL at $15k/d basis redely Atlantic. Basis USG dely, a 75k dwt was reported at $15.25k/d + $525k bb for front haul, while basis Norfolk, an 82k dwt was reported fixed for trip within Atlantic at $14.5k/d redely Brazil. In Cont, a 92k dwt was reported for trip basis Hamburg dely via Baltic to India at $22k/d, while for same redely an 82k dwt was fixed basis Gib for a trip via Kamsar at $20k/d. Basis Gib, also an 82k dwt was heard for trip via NCSA to FEast at $18.75k/d. In Feast, Nopac rounds were reported on 75k dwt at $10.25k/d basis Korea dely, while for trip via Oz to Indo were heard at $9.1k/d basis CJK dely. Kmax were fixed at $13k/d for trip basis Limay for trip via Indo to Japan, while trip basis dely Zhoushan via EOz to China were fixed at $13k/d. Basis 2-3LL an 81k dwt was fixed basis SChina at $11k/d for redely Spore/Japan range and same size was also agreed on a 93k dwt basis CJK for 2 LL with same redely.

3

0

7,000

14,000

21,000

28,000

35,000

24/5/18 24/9/18 24/1/19 24/5/19

BCI TC and Capesize 1-YR Period (usd/day)

1-YR TC BCI TC

0

4,000

8,000

12,000

16,000

20,000

24/5/18 24/9/18 24/1/19 24/5/19

BPI TC and Panamax 1-YR Period (usd/day)

1-YR TC BPI TC

market report - week 21/2019


Supramax rates continued to move upwards with positive sentiment and more activity. Rates for USG to Cont/Med jumped around $13/14,000’s/d while Ultramax were even in the low $20,000's/d for clean cargoes to East, pulling even more higher rates for TARV. Handysize were slowly increasing but, at the time of writing, didn’t make the leap to ask for a decent level. Rates can be assessed around $6,500/7,000/d for USG to Med for 32/35k dwt and in the $8,500/9,000/d for larger 37/39 dwt. ECSAm market had a strong improvement during the week on all routes. Handies were getting $10/10,500/d for TA and $15.000/d for front hauls, while coastal trips within Brazil were fixed at $10,000/d level. On Supra/Ultra, trips via ECSAm to Cont/Med went around $15,500/d for Supra and $16,500/16,750/d for Ultra, gaining around $1/1,500/d compared to previous week. For what concerns trips FEast, Supra/Ultra rates improved to $14,000/d + $400k bb and to $15,000/d + $500k bb.

Supramax & Handysize Market

Ind

ia

S A

fric

a

Both Handies and Supra market were stable, with not so much activity to report. Handy rates basis dely Cont were around $7,500/8,000/d on 35k dwt modern type for quick round trip via NCont back to ARA range with coal. Rates for trip to EMed basis dely Cont on the same size were not too far apart, with ships getting around $8/8,500/d basis dely Cont redely EMed with scrap for a duration of around 30 days. No fixtures were reported on Supra/Ultra, however, there was the Owner of a nice 63k dwt rating $12,000/d basis dely NFrance for quick interCont RV and $18,500/d basis dop for TCT to Spore/Japan with grains or fertilizers, against Charterers rating at $16,000/d basis dop NFrance. The Shipping week in Copenhagen hasn't really helped trades in BlSea and Med areas, as the prevalent mood was pretty wait-and-see. Still, most Supra Owners were asking in the $8/9,000/d from Canakkale for quick trips via BlSea to EMed but we actually saw fixtures in the $6,000/d asp for similar. Some more excitement in the salt market, with many enquiries from Egypt to USEC or USG paying in the $5,000/d aps region on Supra. Handy market was following the same trend, with some 35k dwt being fixed in the mid $7,000/d region basis dely Canakkale for 3/5 months period in the Atlantic. Market remained strong for prompt requirements. A 63k dwt was fixed dely MEG for trip to ECI at very high $15,000/d levels and another similar sized fetched for trip to SEAsia around $12,000/d dop MEG port. A Dolphin57 was heard to be fixed delivery Pak port for trip via MEG to ECI around mid $10,000/d levels, while from WCI dely Kandla an Ultramax was heard to be fixed for China direction in excess of $10,000/d levels. From SAfrica, prompt Ultras were still asking in excess of $13,000/d + $300k bb for trips out to Indian Ocean or FEast, while mid-June cargoes were understood to be gone at slightly lower levels.

Far

East

P

acif

ic

The reduced number of enquiries for Supra/Ultras spot trade showed a decreasing trend for business between Spore/Japan range, where the customary premium for the 58k dwt Japanese types and the Ultras was still strong; otherwise, trips from this area to the middle where described as falling badly. The available reports showed a major concentration was seen on voyages from SEAsia to Northern FEast. A Tess58 delivering at Spore was fixed at $11,250/d for coal from Indo to China and a Dolphin56 delivering at Vietnam got $7,900/d, and a 53k dwt delivering at ECChina got $6,200/d. Apparently a 57,800 dwt delivered at SChina got only $8,000/d for a trip via Indo to WCI, while a Dolphin56 which agreed $4,000/d for a long duration trip with fertilizers from SChina to Brazil, before failing on subs. Handies trend looked stronger: a 23 y.o. 24k dwt was fixed for backhaul trip from NChina to Thailand at $6,250/d, a 2 y.o. fancy 39k dwt delivering at Spore got $12,000/d to perform a short trip with steels from Malaysia to Vietnam, which despite the vessel’s quality and the brief duration looked very high. Athe end of the week, other Handies were said to be fixed for spot business loading from these areas at rates well over the $4,700/d.

US

Atl

anti

c

Sou

th A

mer

ica

4

0

4,000

8,000

12,000

16,000

24/5/18 24/9/18 24/1/19 24/5/19

BSI TC and Supramax 1-YR Period (usd/day)

1-YR TC BSI TC

0

3,000

6,000

9,000

12,000

24/5/18 24/9/18 24/1/19 24/5/19

BHSI TC and Handysize 1-YR Period (usd/day)

1-YR TC BHSI TC



BSI TC Avg. usd/day 8,764 8,738 +0.3% -23.5%

S4A 58 USG-Skaw/Pass usd/day 12,894 12,044 +7.1% +2.2%

S9 58 WAF-ECSA-Med usd/day 8,754 8,246 +6.2% +6.4%

S1B 58 Canakkale-FEast usd/day 12,996 12,757 +1.9% -21.6%

S11 58 Pacific r/v usd/day 8,378 8,719 -3.9% -28.4%


BHSI TC Avg. usd/day 5,881 5,763 +2.0% -31.7%


Sup

ram

axH

and

y

Rates

N E

uro

pe

M

ed

ite

rran

ean

Unit 24-May 17-May W-o-WPremium/

Discount

May (19) usd/day 11,808 12,079 -2.2% -3.6%

Jun (19) usd/day 13,208 13,863 -4.7% +7.9%

Jul (19) usd/day 13,642 13,971 -2.4% +11.4%

Q3 (19) usd/day 14,622 14,900 -1.9% +19.4%

Q4 (19) usd/day 17,567 17,750 -1.0% +43.5%

Q1 (20) usd/day 12,400 12,617 -1.7% +1.3%

Cal 20 usd/day 14,436 14,600 -1.1% +17.9%

Cal 21 usd/day 13,321 13,446 -0.9% +8.8%

Cal 22 usd/day 13,425 13,525 -0.7% +9.7%

May (19) usd/day 10,008 9,838 +1.7% -4.2%

Jun (19) usd/day 11,167 9,863 +13.2% +6.9%

Jul (19) usd/day 11,042 10,100 +9.3% +5.7%

Q3 (19) usd/day 10,918 10,222 +6.8% +4.5%

Q4 (19) usd/day 10,988 10,867 +1.1% +5.2%

Q1 (20) usd/day 8,938 8,875 +0.7% -14.4%

Cal 20 usd/day 9,359 9,327 +0.3% -10.4%

Cal 21 usd/day 8,938 8,767 +2.0% -14.4%

Cal 22 usd/day 8,221 8,171 +0.6% -21.3%

May (19) usd/day 8,738 8,742 -0.0% -0.3%

Jun (19) usd/day 9,646 9,179 +5.1% +10.1%

Jul (19) usd/day 9,921 9,479 +4.7% +13.2%

Q3 (19) usd/day 10,343 10,039 +3.0% +18.0%

Q4 (19) usd/day 10,625 10,504 +1.2% +21.2%

Q1 (20) usd/day 8,488 8,583 -1.1% -3.1%

Cal 20 usd/day 9,525 9,492 +0.3% +8.7%

Cal 21 usd/day 9,200 9,188 +0.1% +5.0%

Cal 22 usd/day 8,621 8,604 +0.2% -1.6%

May (19) usd/day 5,975 6,075 -1.6% +1.6%

Jun (19) usd/day 6,575 6,525 +0.8% +11.8%

Jul (19) usd/day 7,125 7,075 +0.7% +21.2%

Q3 (19) usd/day 7,552 7,517 +0.5% +28.4%

Q4 (19) usd/day 8,388 8,388 +0.0% +42.6%

Q1 (20) usd/day 7,456 7,444 +0.2% +26.8%

Cal 20 usd/day 8,150 8,150 +0.0% +38.6%

Cal 21 usd/day 7,969 7,969 +0.0% +35.5%

Cal 22 usd/day 7,925 7,919 +0.1% +34.8%

Han

dys

ize

Cap

esi

zeP

anam

axSu

pra

max

0

3,000

6,000

9,000

12,000

May-18 May-19 May-20 May-21

Handysize Forward Curve (usd/day)

0

4,000

8,000

12,000

16,000


Supramax Forward Curve (usd/day)

0

8,000

16,000

24,000

32,000


Capesize Forward Curve (usd/day)


Dry Bulk FFAs (Baltic Forward Assessments)

5

0

4,000

8,000

12,000

16,000


Panamax Forward Curve (usd/day)



TD1 MEG-USG ws 18.68 19.14 -2.4% -0.1%

TD1 MEG-USG usd/day -9,326 -9,596 +2.8% +42.8%

TD2 MEG-Spore ws 42.08 41.71 +0.9% -11.3%

TD3C MEG-China ws 41.38 40.88 +1.2% -12.3%

TD3C MEG-China usd/day 12,831 11,511 +11.5% +45.9%

TD15 WAF-China ws 43.33 41.08 +5.5% -7.0%

Avg. VLCC TCE usd/day 1,753 958 +83.0% +146.7%

1 Year TC Period usd/day 31,000 30,500 +1.6% +55.0%

TD6 BSea-Med ws 78.14 75.83 +3.0% -17.5%

TD6 BSea-Med usd/day 12,831 10,230 +25.4% -9.0%

TD20 WAF-Cont ws 58.66 59.32 -1.1% -20.5%

MEG-EAST ws 62.50 62.50 +0.0% -9.4%

TD23 MEG-Med ws 33.00 27.92 +18.2% +26.9%

Avg. Suezmax TCE usd/day 11,454 9,459 +21.1% +3.4%


TD7 NSea-Cont ws 100.00 101.67 -1.6% -6.0%

TD7 NSea-Cont usd/day 11,469 10,978 +4.5% +189.8%

TD17 Baltic-UKC ws 74.17 75.00 -1.1% -15.5%

TD17 Baltic-UKC usd/day 10,176 9,267 +9.8% +4.3%

TD19 Med-Med ws 112.75 107.22 +5.2% -22.8%

TD19 Med-Med usd/day 18,711 15,269 +23% -14.1%

TD8 Kuwait-China ws 111.11 112.50 -1.2% +12.7%

TD8 Kuwait-China usd/day 13,736 13,565 +1.3% +351.8%

TD9 Caribs-USG ws 89.06 108.13 -17.6% -25.3%

TD9 Caribs-USG usd/day 5,778 10,899 -47.0% -15.8%

Avg. Aframax TCE usd/day 12,538 12,480 +0.5% +40.8%


VLC

CSu

ezm

axA

fram

ax

tanker chartering

Vlcc rates remained pretty much flat throughout the week, just slightly firmer in the West. Meanwhile, Suezmax West African market went again below WS60 on 130,000 mt to Europe, whilst Black Sea/Med remained stable and ships were taking Aframax stems basis part/cargo too. Rates remained below WS50 for ECMex/USG to Europe business as well. The 140,000 mt Basrah stems to Med finally moved above WS30 as a flurry of June cargoes was getting fixed. The Aframax market went up to 80,000 mt at WS115 for CrossMed and at WS120 for Black Sea/Med, with Owners pushing for higher numbers for CPC stems. Pretty much steady elsewhere except in the Americas, where rates have been under pressure for most of the week. Otherwise, delays at Turkish straits for daylight restricted tankers up to 2 (and even 3) days both ways as construction of Dardanelles bridge (and yacht races at Bosporus) led to some disruption.

Crude Oil Tanker Market

6

Rates


-10,000

5,000

20,000

35,000

50,000

65,000

24/5/18 24/9/18 24/1/19 24/5/19

VLCC MEG-Far East (usd/day)

-5,0005,000

15,00025,00035,00045,00055,00065,00075,000

24/5/18 24/9/18 24/1/19 24/5/19

TD6 Suexmax BSea-Med (usd/day)

-15,000-5,0005,000

15,00025,00035,00045,00055,000

24/5/18 24/9/18 24/1/19 24/5/19

TD19 Aframax Med-Med (usd/day)

10,00015,00020,00025,00030,00035,00040,00045,000

May-18 Aug-18 Nov-18 Feb-19 May-19

1 YR TC Period (usd/day)

VLCC Suezmax Aframax

10,00012,00014,00016,00018,00020,00022,00024,000

May-18 Aug-18 Nov-18 Feb-19 May-19

1 YR TC Period (usd/day)

LR2 MR2

0

5,000

10,000

15,000

20,000

25,000

24/5/18 24/9/18 24/1/19 24/5/19

MR Pacific Basket (usd/day)

05,000

10,00015,00020,00025,00030,00035,000

24/5/18 24/9/18 24/1/19 24/5/19

MR Atlantic Basket (usd/day)

05,000

10,00015,00020,00025,00030,00035,000

24/5/18 24/9/18 24/1/19 24/5/19

TC1 LR2 MEG-Japan (usd/day)

tanker chartering

Product Tanker Market

Delays at Turkish Straits for Daylight Restricted Vessels

East of Suez, LR2 rates were steady at WS107.5 for MEG/Japan voyages, while MEG/UKC voyages consolidated at $2.2 mln. LR1 discharging East remained overall steady as well at WS117.5. West of Suez, LR2 and LR1 trading UKC/Japan their rates at $1.925 mln and $1.6 mln levels respectively. In Med, clean Handysizes involved in CrossMed increased at WS162.5, with Black Sea/Med rates firming up to WS180 mark. In Cont, clean Handies involved in Baltic/UKC were still at WS110 level, with CrossCont following at around WS100. Clean MRs’ rates on Cont/US picked up and reached WS115 basis 37,000 mt, while back hauls, despite a weak start, firmed at WS90 basis 38,000 mt. The dirty market in Med and Black Sea areas saw Handies’ activity still enough to keep rates stable, with Owners trying to push up the market: CrossMed rates remained at WS145, while from Black Sea ranged from WS155 up to WS160 reported on subjects. Dirty Mrs’ rates kept same levels as well, with CrossMed at WS115 and Black Sea/Med at WS120. In Cont instead, both Handies and MRs market were quiet, as rates for Handies softened to WS120, while no significant activity was reported basis 45,000 mt. Dirty Panamaxes also were quiet as well, from both Cont and Med, thus rates lost a couple of points down to WS95/100 level basis 55,000 mt.



TC1 MEG-Japan ( 7 5 k ) ws 107.56 108.00 -0.4% +10.0%

TC1 MEG-Japan ( 7 5 k ) usd/day 15,394 15,031 +2.4% +149.9%

TC8 MEG-UKC ( 6 5 k ) usd/mt 27.01 27.08 -0.2% +6.5%

TC5 MEG-Japan ( 5 5 k ) ws 117.22 118.81 -1.3% +2.4%

TC5 MEG-Japan ( 5 5 k ) usd/day 12,307 12,274 +0.3% +82.1%

TC2 Cont-USAC ( 3 7 k ) ws 113.61 103.33 +9.9% -18.9%

TC2 Cont-USAC ( 3 7 k ) usd/day 6,627 3,978 +66.6% +18.4%

TC14 USG-Cont ( 3 8 k ) ws 89.64 95.36 -6.0% +12.1%

TC14 USG-Cont ( 3 8 k ) usd/day 2,857 3,079 -7.2% +200.1%

TC9 Baltic-UKC ( 2 2 k ) ws 110.00 108.93 +1.0% -24.1%

TC6 Med-Med ( 3 0 k ) ws 165.00 153.88 +7.2% +17.9%

TC7 Spore-ECAu ( 3 0 k ) ws 159.89 161.81 -1.2% -13.0%

TC7 Spore-ECAu ( 3 0 k ) usd/day 12,433 12,414 +0.2% +13.5%

TC11 SK-Spore ( 4 0 k ) usd/mt 9.05 9.47 -4.4% -0.7%

MR Pacific Basket usd/day 13,318 11,757 +13.3% +66.4%

MR Atlantic Basket usd/day 11,209 10,152 +10.4% +76.9%

LR2 1 Year TC Period usd/day 21,500 21,500 +0.0% +53.6%

MR2 1 Year TC Period usd/day 14,250 14,250 +0.0% +5.6%

TD12 Cont-USG ( 5 5 k ) ws 98.44 99.06 -0.6% -5.4%

TD18 Baltic-UKC ( 3 0 K) ws 121.67 128.75 -5.5% -23.2%

BSea-Med ( 3 0 k ) ws 155.0 142.5 +8.8% -18.4%

Med-Med ( 3 0 k ) ws 145.0 132.5 +9.4% -14.7%

Cle

anD

irty

Rates


Northbound days 2.0 1.5 +33.3% +33.3%

Southbound days 2.0 1.5 +33.3% +33.3%

600

700

800

900

1,000

24/5/18 24/9/18 24/1/19 24/5/19

Shanghai Container Freight Index

5,000

7,000

9,000

11,000

13,000

23/5/18 23/9/18 23/1/19 23/5/19

Geared - 1 YR TC Period (usd/day)

2500 1700 1100

6,000

8,000

10,000

12,000

14,000

23/5/18 23/9/18 23/1/19 23/5/19

Gearless - 1 YR TC Period (usd/day)

4250 3500 2700


ConTex index 402 402 +0.0% -23.3%

4250 teu (1Y, g’less) usd/day 9,183 9,167 +0.2% -27.3%



2500 teu (1Y, geared) usd/day 9,033 9,045 -0.1% -23.8%



The New ConTex level remained unchanged from previous week, with Charter rates being stable for all the segments at a level except for the 5,500 TEU and above, where we recorded some increases in hire rates.

containers

VHSS Containership Timecharter Assessment (source: Hamburg Shipbrokers’ Association)

Containership Market

Shanghai Containerized Freight Index (source: Shanghai Shipping Exchange)

8


Comprehensive Index index 724 726 -0.3% -5.3%

Services:

Shanghai - North Europe usd/teu 743 723 +2.8% -9.9%

Shanghai - Mediterranean usd/teu 710 696 +2.0% -16.3%

Shanghai - WC USA usd/feu 1,294 1,340 -3.4% +0.9%

Shanghai - EC USA usd/feu 2,540 2,597 -2.2% +11.8%

Shanghai - Dubai usd/teu 657 611 +7.5% +35.7%

Shanghai - Santos usd/teu 803 887 -9.4% -56.6%

Shanghai - Singapore usd/teu 140 140 +0.2% -0.7%


Recent Fixtures

Vessel Name Built TEUs TEU@14 Gear Fixture Period Rates

Rdo Concert 2009 6,966 4,930 no fixed to Oocl 12 m $19,500/d

Tabea 2006 5,527 4,203 no fixed to Cma Cgm 9/10 m $15,750/d

Maine Trader 2004 4,992 3,280 no fixed to One 4/6 m $9,200/d

Burgundy 2008 3,426 2,410 no fixed to Msc 9/10 m $9,000/d

Georgia Trader 2007 2,127 1,452 yes fixed to Cma Cgm 3/5 m $9,800/d

Hansa Limburg 2006 1,732 1,330 yes extended to Hapag Lloyd 3/5 m $8,600/d

Type Size Built Yard Buyers Price Comment

Bulk 61,000 END 2020 DACKS Santoku Sempaku n.a.

Crude 158,000 2021 Daehan Enesel n.a. 2 opts declared

Crude 158,000 2021 JMU Samos Steamship n.a. 1 unit - OL scrubber

100

105

110

115

120

24/5/18 24/9/18 24/1/19 24/5/19

Yen/USD Exchange

1.05

1.10

1.15

1.20

1.25

24/5/18 24/9/18 24/1/19 24/5/19

USD/Euro Exchange

20

30

40

50

May-17 Nov-17 May-18 Nov-18 May-19

Newbuilding Prices (usd mln)

Ultramax LR2 MR2

3 yrs 5 yrs 7 yrs 10 yrs 15 yrs 20 yrs

USD 2.13 2.13 2.18 2.28 2.39 2.45

Euro -0.20 -0.05 0.13 0.40 0.75 0.92

Libor USD Libor Euro Euribor Euro

6 Months 2.55 -0.32 -0.24

12 Months 2.62 -0.22 -0.15

Santoku Sempaku — instead of placing as common practice for Japanese Owners their Newbuildings in the domestic market— decided to order 2 x 61,000 dwt Ultramax Bulkers at Dalian Cosco (Dacks) for dely from end 2020 at undisclosed price. Wisdom Marine, Taiwan placed 2 x 37.800 dwt Bulkers at Imabari at level of $ 25 mln per unit for dely 2021. On the wet side, three Suezmaxes have been ordered/options declared: Enesel declared their option for 2 x 158,000 dwt at Daaehan (scrubber fitted) for dely 2021, while Samos Steamship, Greece placed their order to Japan Marine United (JMU) for 1 x 158,000 dwt Suezmax Tanker (Open-loop scrubber fitted) for dely 2021 at undisclosed price.

Newbuilding Market

Newbuilding Reported Orders

Indicative Newbuilding Prices (China)

sale & purchase

Interest Rates

Interest Rate Swaps

9

Unit 01-May-19 M-o-M Y-o-Y

Capesize usd mln 49.1 +0.0% +5.5%

Ultramax usd mln 26.2 -0.1% +2.4%

Supramax usd mln 23.2 +0.0% +2.3%

VLCC usd mln 84.1 -0.2% +4.0%

LR2 Coated usd mln 46.8 +0.2% +5.2%

MR2 Coated usd mln 33.7 +0.0% +0.9%

24-May 17-May W-o-W Y-o-Y

USD/Euro 1.12 1.12 +0.1% -4.6%

Yen/USD 109.3 110.0 -0.6% +0.0%

SK Won/USD 1,188 1,196 -0.6% +10.1%

Exchange Rates


TYPE VESSEL NAME DWT BLT YARD BUYERS PRICE NOTE

Bulk Pacific Glory 233,694 2004 Imabari Undisclosed 14.6

Bulk Iron Fitz 176,000 2003 Universal Chinese buyers 12.3

Bulk Mineral China 171,000 2003 Hyundai South Korean 14 3 yrs TC back

Crude Brightoil Glory 318,000 2012 Hyundai C.of Delta Tanker 58 at auction

Prod Fidelity II 48,000 2011 Iwagi European buyer 18.25

Prod Papillon 47,000 2007 Onomichi Turkish buyers n.a.

Prod Uacc Strait 46,000 2004 Shin Kurushima Undisclosed 8.75

Prod High Power 46,000 2004 Naikai Indian 8.5

350

400

450

500

20/5/18 20/9/18 20/1/19 20/5/19

SubCon Demo Assessment (usd/ldt)

Dirty Tnk Clean Tnk Dry Bulk

15

20

25

30

35

40

20/5/18 20/9/18 20/1/19 20/5/19

Secondhand Values (usd mln)

Panamax Aframax MR


Dry Bulk usd/ldt 434.3 439.5 -1.2% -0.4%

Dirty Tanker usd/ldt 440.0 444.9 -1.1% -1.7%

Clean Tanker usd/ldt 437.9 442.6 -1.1% -1.3%

sale & purchase

Secondhand Market

Baltic Secondhand Assessments

Baltic Demolition Assessment (Subcontinent)

10


Capesize usd mln 35.4 35.5 -0.1% +4.6%

Panamax usd mln 21.0 21.0 -0.1% -2.8%

Supramax usd mln 17.5 17.6 -0.6% -3.9%

VLCC usd mln 67.2 67.2 -0.0% +9.2%

Aframax usd mln 33.7 33.7 +0.0% +12.6%

MR Product usd mln 27.9 27.9 +0.1% +8.3%


On the Dry Bulk segment, an ore carrier 'PACIFIC GLORY' around 233,000 dwt 2004 Imabari was sold to Korean buyers for $14 mil. A couple of older Capesize bulkers changed hands,'MINERAL CHINA' 171,100 dwt 2003 Hyindai and 'IRON FRITZ' around 176,200 dwt 2003 Universal sold at $14 mil to Korean buyers and at$12,3 mil to Chinese buyers respectively. A Panamax 'CHRIS' around 77,000 dwt 2006 Imabari was sold to undisclosed at $10.6 mln, whilst in the Uupramax segment a soft price of tick below $10 mln was achieved by 'VIL BALTIC' 57,000 dwt Qinshan 2010 built. On Tankers, One of the distressed assets of Brightoil, a modern VLCC 'BRIGHTOIL GLORY' 319,000 dwt 2012 built Hyundai was sold at auction in Hong Kong to clients of Delta Tankers at region $58 mln. A sister, but one year younger 'BRIGHTOIL GRACE' will be auctioned on 4th June along with an Aframax tanker 'BRIGHTOIL LION' around 107,500 dwt 2010 built Tsuneishi - will be interesting to see which price these may achieve in a upturning market. The MR2 'FIDELITY' II' was sold basis prompt T/C free delivery to clients of Maersk Tankers at region $18.25 mln. Finally, two smaller MR1 'CELSIUS PENANG' and 'CELSIUS PERTH' around 37,200 dwt 2004 Hyundai Mipo were sold enbloc to Indonesian buyers at region $8 mln each.

Secondhand Reported Sales

news

Dry Bulk Commodities

China's April soybean imports from U.S. up 15.9% month-on-month, Brazilian imports soar China’s soybean imports from the United States rose in April, helped by an earlier easing of trade tensions with Washington, while imports from Brazil surged after buyers back loaded their March orders to benefit from a tax cut on agricultural products. China, the world’s top soybean buyer, brought in 1.75 million tonnes of the oilseed from the United States, up 15.9% from 1.51 million tonnes in March, according to data from the General Administration of Customs released on Saturday. Meanwhile, China in April bought 5.79 million tonnes of soybeans from Brazil, more than doubling the 2.79 million tonnes in March, customs data showed. For the month, China's soybean imports hit 7.64 million tonnes, up 11% from March, as buyers scheduled cargoes to arrive in April to take advantage of a cut in value-added tax (VAT) on agricultural products effective from April 1. Brazilian soybean exports could rise amid the escalation of US-China trade dispute Brazil-origin soybean exports could increase at the cost of US-origin beans, amid the recent escalation of US-China trade dispute, weak Brazilian currency and approaching corn harvest, grain exporter AgriBrasil told S&P Global Platts. Brazil soybean exports January-April period are seen at 26.3 million mt, up 12% year on year, according to a report released by Brazilian ministry of economy. Brazil is the world's biggest soybean exporter, with total exports of 83.61 million mt in 2017-18, according to a recent Conab report. China bought 20.25 million mt from Brazil during the four-month period, down 13% on year, the data showed. In April, Brazil exported 10 million mt of soybean, up 16.2% on month, according to Portarias da Secretaria de Comercio Exterior-SECEX. China imports of U.S. coking coal rise five-fold in April on trade deal bets China's imports of U.S. coking coal rose more than five times in April from a month earlier, customs data showed, on traders' earlier bets that trade tensions between Beijing and Washington were easing. Shipments of coking coal from the United States rose to 308,789 tonnes last month, up from 60,585 tonnes in March, according to data released by the General Administration of Customs over the weekend. China's port controls for Australian thermal coal remain open-ended Import restrictions are continuing to hold up shipments of Australian thermal coal at Chinese ports and a solution to the deadlock is not expected any time soon, market sources said on Friday. Chinese officials are still to advise on the likely duration of the import controls, which include customs clearance times of 40-50 days for arriving Australian coal ships, market sources said. As a result, very few bids were seen during Friday's Asian trading session for Australian 5,500 kcal/kg NAR thermal coal, and sources described this market as well offered at $59-$60/mt FOB Newcastle in terms of June and July shipments. Trump administration announces $16 bln farm aid plan to offset trade war losses The Trump administration on Thursday unveiled a $16 billion farm aid package to offset losses from a 10-month trade war with China and said payment rates to farmers would be determined by where they farm rather than what crops they grow. The package, the bulk of which will be spent on direct payments, surprised growers and traders who had expected to learn separate payment rates for soybeans, hogs, corn and other crops in the Department of Agriculture (USDA) briefing. Vietnam swine fever cull surges, 1.7 million pigs dead Vietnam culled a further 500,000 pigs over the past two weeks to tackle an oubreak of African swine fever, taking the total killed so far to 1.7 million, or 5% of the country's herd, the agriculture ministry said on Monday. Pork accounts for three-quarters of total meat consumption in Vietnam, a country of 95 million people where most of its 30 million farm-raised pigs are consumed domestically. The virus, first detected in the Southeast Asian country in February, has spread to 42 of the country's 63 provinces, the agriculture ministry's Livestock Production Department said in a statement on its website. British Steel collapses after failing to secure extra funding British Steel, the country’s second largest steel producer, has collapsed and put 25,000 jobs at risk after failing to secure emergency government funding, Britain’s Official Receiver said on Wednesday. The High Court ordered the compulsory liquidation of the company, although staff will remain employed for now as the liquidator oversees the operation of the main site in Scunthorpe, northern England. Business Minister Greg Clark said British Steel was open to new buyers, while the opposition Labour Party called on the government to bring it back into public ownership. Source: Refinitiv / Argus Media / Platts

market report - week 21/2019 11

news

Oil & Gas

Oil rises more than 1% but sets biggest weekly loss of 2019 Oil prices climbed more than 1% on Friday ahead of long U.S. and UK holiday weekends, but posted the biggest weekly drop of the year, pressured by rising inventories and worries about the global economy. Brent crude rose 93 cents, or 1.4%, but the global benchmark notched a weekly decline of about 4.5%. U.S. West Texas Intermediate crude rose 72 cents, or 1.2%. It notched a weekly decline of about 6.4%, its steepest since December. U.S. crude was pressured by climbing inventories, which are at their highest nationwide since July 2017 and at the highest since December 2017 at the Cushing, Oklahoma, delivery hub for the U.S. benchmark. Economic worries fed by U.S.-China trade tensions have hit global markets, with the MSCI All Country index headed for a weekly fall exceeding 1%, its third week in the red. OPEC+ considers moving oil policy meeting to early July OPEC and its allies are considering moving the date of their next oil policy meeting in Vienna to July 3-4 from June 25-26, two OPEC sources said on Monday. The date change has been proposed but has not been officially confirmed, the sources said. The Organization of the Petroleum Exporting Countries (OPEC), Russia and other non-member producers have reduced output by 1.2 million barrels per day since Jan. 1. The meeting is to decide whether to extend the pact or adjust it China's crude oil imports from Saudi Arabia up 43% y/y in April China's crude oil imports from Saudi Arabia rose 43% last month, making the Middle Eastern OPEC kingpin once again the top supplier to the world's secondbiggest economy, boosted by demand from new private refiners. Saudi imports grew to 6.30 million tonnes, or 1.53 million barrels per day (bpd) on a daily basis, compared with 1.07 million bpd in the year ago period, according to data from the General Administration of Customs released on Saturday. Russia’s May 1-21 oil output falls to 11.147 mln bpd Russia’s average oil production May 1-21 fell to an average of 11.147 million barrels per day (bpd) from 11.23 million bpd in April, two industry sources familiar with the data told Reuters. Russian oil output has been hurt in May as one of the country’s main export routes to Europe, the Druzhba pipeline, remains mostly shut after the discovery of contaminated oil. The May 1-21 daily average was the lowest since June 2018, when output fell to 11.06 million bpd, Energy Ministry data shows. Output May 1-16 was 11.156 million bpd, below the 11.18 billion bpd level Russia pledged as part of an international deal among producers to curb output to support prices. Russia to pump dirty oil back from Belarus Russia will pump dirty crude oil back from Belarus as it tries to clear a major pipeline of the contaminated oil that has caused the worst ever disruption to its oil exports, sources and officials said on Friday. Some 5 million tonnes of oil were contaminated in April with organic chloride and the dirty crude is now stuck in pipelines in Belarus and further West - in Poland, Germany, Ukraine, Slovakia, Hungary and the Czech Republic. The sources said it could take months to fully resolve the crisis Turkey stopped purchasing Iranian oil as of May Turkey stopped purchasing Iranian oil as of May as U.S. waivers granted last November to eight buyers expired, and will continue to abide by Washington's demand that it halt all imports of crude oil from the Islamic Republic, a senior Turkish official said on Wednesday. "We are not getting any oil from Iran now," said the official, who spoke on condition of anonymity. "We were one of the eight countries getting an exception from those sanctions, and now we are ready to abide by them," he said. Reuters on Monday reported that no tankers loaded in Iran have arrived at Turkish ports so far in this month, according to Refinitiv tracking data. Analysts said it was replacing Iranian oil with supplies from Iraq, Russia and Kazakhstan Mediterranean ECA may be proposed next year: IMO A proposal for an Emissions Control Area (ECA) across the Mediterranean could be submitted next year, the International Maritime Organisation (IMO) said. The IMO's head of air pollution and energy efficiency, Edmund Hughes, told S&P Global Platts' Bunker Fuel Conference in Amsterdam that there were discussions over a possible ECA in the Mediterranean for nitrous oxide (NOx) and sulphur emissions. ECAs aim to cut emissions from ships near land in the hope of improving human health and mitigating pollution of the seas caused by shipping. The onus for creating a proposal for a Mediterranean ECA would be on the 22 member states of the Barcelona Convention, he said. The Italian and French environment ministries recently issued a joint call for the introduction of an ECA in the Mediterranean, although Cyprus, Greece, and Malta have previously opposed the move. Source: Refinitiv / Argus Media / Platts

market report - week 21/2019 12

300

400

500

600

24/5/18 24/9/18 24/1/19 24/5/19

Wheat and Corn Prices (usd/t)

Corn Wheat

3,000

3,500

4,000

4,500

5,000

17/5/18 17/9/18 17/1/19 17/5/19

Steel Prices in China (rmb/t)

Rebar Plate

40

60

80

100

120

24/5/18 24/9/18 24/1/19 24/5/19

Iron Ore and Coal Prices (usd/t)

Steam Coal Iron Ore

40

50

60

70

80

90

24/5/18 24/9/18 24/1/19 24/5/19

Brent and WTI Oil Prices (usd/bbl)

Brent WTI

200

400

600

800

24/5/18 24/9/18 24/1/19 24/5/19

Bunker Prices @ Singapore (usd/t)

IFO 380 IFO 180 MGO


Wheat usd/t 489.5 473.5 +3.4% -9.9%

Corn usd/t 404.3 388.8 +4.0% -0.4%

Soybeans usd/t 829.8 829.8 +0.0% -20.3%

Palm Oil usd/t 480.8 502.5 -4.3% -22.0%


Iron Ore (Platts) usd/t 98.1 96.3 +1.9% +48.1%

Iron Ore China @Tangshan rmb/t 758.0 712.0 +6.5% +62.3%

Rebar in China rmb/t n.a. 4,086 n.a. n.a.

Plate in China rmb/t n.a. 4,142 n.a. n.a.

HR Coil in China rmb/t n.a. 4,109 n.a. n.a.

CR Sheet in China rmb/t n.a. 4,438 n.a. n.a.


Steam @ Richards Bay usd/t 67.8 68.2 -0.6% -33.9%

Steam @ Newcastle usd/t 83.8 84.1 -0.4% -21.4%

Coking Coal Australia usd/t 206.5 208.5 -1.0% +12.7%


Crude Oil Brent usd/bbl 68.7 72.5 -5.3% -8.2%

Crude Oil WTI usd/bbl 58.3 63.0 -7.5% -11.9%

Crude Oil Dubai usd/bbl 67.4 72.3 -6.9% -11.2%

Natural Gas Henry Hub usd/mmbtu 2.61 2.68 -2.6% -10.9%

Gasoline Nymex usd/gal 1.93 2.05 -5.9% -9.8%

ICE Gasoil usd/t 604.8 652.8 -7.4% -9.6%

Naphtha Tokyo usd/t 557.4 572.7 -2.7% -17.5%

Jet-Kerosene Asia usd/bbl 81.4 83.6 -2.6% -10.0%


Rotterdam usd/t 392.5 410.0 -4.3% -11.0%

Gibraltar usd/t 418.0 433.0 -3.5% -12.3%

Singapore usd/t 407.5 425.5 -4.2% -11.5%

Rotterdam usd/t 435.0 446.0 -2.5% -8.3%

Gibraltar usd/t 448.0 461.5 -2.9% -10.1%

Singapore usd/t 448.0 460.0 -2.6% -8.1%

Rotterdam usd/t 599.0 623.5 -3.9% -9.8%

Gibraltar usd/t 638.0 667.0 -4.3% -13.5%

Singapore usd/t 613.5 637.5 -3.8% -12.2%

IFO

38

0IF

O 1

80

MG

O

commodities

Oil & Gas Prices

Coal Prices

Iron Ore and Steel Prices

Agricultural

Bunker Prices


head office: via pammatone, 2 16121 genoa (italy)

phone: + 39-010-[5631-1]

dry - capesize 5631-200 [email protected] research 5631-535 [email protected]

dry - panamax 5631-200 [email protected] ship finance 5631-556 [email protected]

dry - handy 5631-200 [email protected] insurance 5631-700 [email protected]

dry - operation 5631-200 [email protected] p&i 5631-770 [email protected]

tankers 5631-300 [email protected] yachting 5631-764 [email protected]

containers 5631-515 [email protected] agency 5631-600 [email protected]

s&p 5631-500 [email protected] ship repair 5631-626 [email protected]

offshore 5631-550 [email protected] towage/salvage 5631-626 [email protected]

bancosta uk bancosta monaco bancosta sa medioriental

london monte carlo geneva dubai

phone: +44-207-398-1870 phone: +377-97-707-497 phone: +41-22-737-2626 phone: +971-4-360-5598

[email protected] [email protected] [email protected] [email protected]

bancosta oriente bancosta oriente bancosta oriente japan rep.office singapore hong kong beijing tokyo

phone: +65-6327-6862 phone: +852-2865-1535 phone: +86-10-8453-4993 phone: +81-362-688-958

[email protected]

[email protected]

[email protected] [email protected]

web site: www.bancosta.com

linkedin: linkedin.com/company/banchero-costa

twitter: twitter.com/banchero_costa

In addition to regular market reports, banchero costa research recognize the need for bespoke reports & analysis, tailored to specific client needs.

Reports can be produced on a wide range of shipping markets including dry bulk, tankers, gas & containers. In addition in-depth reports can be produced on specific commodity markets.

To discuss individual requirements please contact:

Phone: +65 6327 6863

Email: [email protected]

Legal notice: The information and data contained in this presentation is derived from a variety of sources, own and third party’s, public and private, and

is provided for information purposes only.

Whilst banchero costa has used reasonable efforts to include accurate and up-to-date information in this presentation, banchero costa makes no

warranties or representations as to the accuracy of any information contained herein or accuracy or reasonableness of conclusions drawn there from.

Although some forward-looking statements are made in the report, banchero costa cannot in any way guarantee their accuracy or reasonableness.

banchero costa assumes no liabilities or responsibility for any errors or omissions in the content of this report.

Documents

BANCOSTA Weekly Market Report · Where is India sourcing all this additional coal? The second graph shows imports in 2017 and 2018 by loading area. SE Asia (i.e. Indonesia) exports