Market insight

By Christopher Thomas Whi�y

Marke�ng Manager - Towage & Port Agency

Cotzias Intermodal Shipping Inc

Oil producers have turned to the concept of limi�ng their output to January

levels as a certain form of ac�on to boost prices that have fallen more than

70% since the middle of 2014. Oil supply outpaces demand on any given

day, and billions of barrels of oil are being stored rather than consumed. As

a result, oil prices have collapsed to as low as $26 per barrel in February,

from well over $100 in 2014.

It is interes�ng that currently, Iran and Iraq both play an important role in

the contemplated produc�on freeze. Iran has already been increasing pro-

duc�on and the country’s posi�on is that it would consider oil-produc�on

caps only a+er the country’s output rises back to the levels before the West

imposed sanc�ons over its nuclear program.

Basically Iran wants to increase produc�on now, in an a/empt to revive

their share in the global markets, before they even consider discussing

about par�cipa�ng in an output freeze. Iraq also has a longstanding policy of

seeking to raise produc�on regardless of the price-stabilizing policies of the

OPEC.

Russia said that OPEC’s mee�ng with other key oil producers regarding an

output freeze will probably be held in Doha, Qatar in April. They said that

Iran supports the plan, while Tehran says it wants to double its crude ex-

ports to 4 million bpd first.

However, in reality according to the latest oil market data, both Russia and

Saudi Arabia ramped up their oil produc�on in February, despite talks about

supply caps. Russian oil supply reached a new high of 11.08 million barrels a

day in February, and Saudi Arabia during the same month increased its daily

output by 14,000 barrels, to 10.14 million barrels per day, according to

OPEC's analysis of market sources.

Generally speaking, countries are less willing to freeze and especially to cut

produc�on, because doing so means giving up market share for their oil,

which might be hard to win back especially during this transi�on period. The

four major oil powers, Saudi Arabia, Russia, Venezuela and Qatar, are heavi-

ly involved in the various discussions and the coordinated efforts will proba-

bly include soon also non OPEC countries such as Oman, Kazakhstan and

Azerbaijan.

Assuming all are on board, the oil glut could begin to ease, par�cularly with

American output on the decline. Or at least that is what they an�cipate with

this concept.

The fact is that a two million barrel-per-day surplus in oil supplies will con-

�nue to weigh on prices in the short term and even if these countries freeze

output, they would s�ll need more dras�c efforts to support prices in the

long term.

From my own perspec�ve, it looks like their ul�mate goal is to reach a cer-

tain consensus and, if they actually get there, I would expect them to quickly

focus on actually reducing produc�on in the long term. In any case, analysts

es�mate that maintaining produc�on at current levels will probably not

have a significant effect on prices.

.

Chartering (Wet: Firm + / Dry: Stable + )

Following another week of increases in earnings, sen�ment in the Dry

Bulk market is steadily improving, while the Capesize segment is s�ll

considerably underperforming the rest of the market. The BDI closed

today (15/03/2016) at 396 points, up by 3 points compared to Monday’s

levels (14/03/2016) and an increase of 30 points when compared to

previous Tuesday’s closing (08/03/2016). Rates for the crude carriers

market improved last week backed by strong VL performance, on the

back of impressive ac�vity in the Middle East both for prompt and more

forward dates. The BDTI Monday (17/03/2016) was at 861 points, an

increase of 123 points and the BCTI at 505, a decrease of 10 points com-

pared to previous Monday’s (07/03/2016) levels.

Sale & Purchase (Wet: Stable + / Dry: Firm +)

Low asset prices con�nue to a/ract buying interest in the Dry Bulk sec-

tor where the popularity of the geared segments among buyers has

been increasing following the recent posi�ve correc�on in the freight

market. On the tanker side, we had the sale of the “RATNA PUJA”

(104,635dwt-blt 06, China) which was sold to Greek buyers, for a price in

the region of $22.5m. On the dry bulker side, we had the resale of the

“SHIMANAMI 614” (37,500dwt-blt 16, Japan) which was reported being

sold for a price of $14.8m.

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

The newbuilding market remains a quiet place where nothing exci�ng is

happening, while so+ening prices and thin ordering ac�vity con�nues to

pre/y much sum up all the ac�on or the lack thereof. When it comes to

tanker orders of above 25,000dwt, MR and Handy tankers have proven

to be considerably more popular compared to the bigger sizes. MR or-

ders are on top of the list, making up half of the ordering ac�vity over in

the tanker sector for 2016 so far. Very low vola�lity as far as freight

rates are concerned together with average earnings that have shown

the greatest resistance during the considerable downward correc�on of

the market in the beginning of the year, has extended ordering appe�te

in the segment. In addi�on, the fact that during 2014 and the biggest

part of 2015 very few orders were placed, has also resulted in MRs hav-

ing the smaller orderbook over in the tanker sector, which in itself has

provided extra encouragement to owners considering placing an order.

In terms of recently reported deals, Latvian Shpg. placed an order for

two firm MRs (50,000dwt) at Hyundai Vinashin, in Vietnam with delivery

set in 2018.

Demoli�on (Wet: Firm + / Dry: Firm + )

The price rally that kicked off in the beginning of March resumed last

week in the demoli�on market, boos�ng sen�ment further and geNng

more breakers back into ac�on in an�cipa�on of even higher prices in

the near future. Demo bids in the Indian subcon�nent have gained an-

other $15/ldt last week, a substan�al increase that was quickly reflected

in the volume of sales that reached impressive levels during the pat

days. It comes as no surprise that the number of Capesize and Panamax

bulkers sold for demo recently has once again risen, as an increase in

demo prices was all that troubled owners needed to see to opt for send-

ing their vessels for scrap. We expect this trend to con�nue as far as the

bigger bulkers are concerned especially as long as earnings for these

sizes remain stubbornly below OPEX. Prices this week for wet tonnage

were at around 140-265 $/ldt and dry units received about 120-245

$/ldt.

Weekly Market Report

Issue: Week 11 | Tuesday 15th

March 2016

© Intermodal Research 15/03/2016 2

2015 2014

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 95 79,895 52.5 39,381 102.9% 65,906 30,469

280k MEG-USG 50 40,144 28 18,810 113.4% 49,575 17,173

260k WAF-USG 92.5 83,548 65 55,988 49.2% 76,251 40,541

130k MED-MED 77.5 29,322 80 31,423 -6.7% 50,337 30,950

130k WAF-USAC 75 28,108 65 23,960 17.3% 40,490 24,835

130k BSEA-MED 77.5 30,618 72.5 27,965 9.5% 50,337 30,950

80k MEG-EAST 130 34,349 117.5 31,079 10.5% 34,131 19,956

80k MED-MED 120 35,150 80 17,374 102.3% 37,127 28,344

80k UKC-UKC 92.5 19,817 92.5 20,790 -4.7% 39,338 33,573

70k CARIBS-USG 135 32,673 140 36,009 -9.3% 36,519 25,747

75k MEG-JAPAN 97.5 21,228 87.5 18,953 12.0% 30,482 16,797

55k MEG-JAPAN 114 17,723 105 16,998 4.3% 24,854 14,461

37K UKC-USAC 97.5 8,909 112.5 12,323 -27.7% 19,973 10,689

30K MED-MED 127.5 8,896 130 9,610 -7.4% 24,473 18,707

55K UKC-USG 95 15,137 100 17,323 -12.6% 27,228 23,723

55K MED-USG 95 14,540 100 16,493 -11.8% 26,083 21,089

50k CARIBS-USAC 122.5 19,569 130 22,449 -12.8% 27,146 25,521

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Spot Rates

Vessel Routes

Week 11 Week 10$/day

±%

Mar-16

avg

Feb-16

avg±% 2015 2014 2013

300KT DH 76.3 78.9 -3.3% 80.9 73.8 56.2

150KT DH 56.0 58.5 -4.3% 59.5 50.4 40.1

110KT DH 40.3 43.0 -6.4% 45.3 38.9 29.2

75KT DH 36.0 36.4 -1.0% 35.8 33.0 28.0

52KT DH 27.5 27.6 -0.5% 27.3 27.5 24.7

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

Rates for the crude carriers surged last week on the back of an excep�onal-

ly busy Middle East that set the posi�ve tone for earnings all around, while

despite the fact that we have been expec�ng an upward correc�on, the

scale of it certainly generates addi�onal confidence not only for the second

half of March but also in regards to the strength of market fundamentals

overall. The jump in oil prices seems to have indeed supported a demand

spike, with investors posi�oning themselves for a mini price rally as Saudi

Arabia, Russia and other OPEC countries appeared to be agreeing to cap

their output to January levels. Despite the fact that prices are now once

more under pressure, following Iran’s comments to cap output only a+er its

produc�on reaches 4 million barrels/day, this could in fact further support

demand, being regarded by traders as an opportunity to re-enter the mar-

ket at lower levels before another round of increasing prices takes place.

As fixing ac�vity in the Middle East resumed at the strong levels of late, the

posi�ve effects were finally reflected on VL rates, which more than doubled

with West Africa following course, while we expect to see these numbers

being sustained during the following days as well. A+er a slow start to the

week the W. Africa Suezmax finally managed to improve on steadily in-

creasing ac�vity, while Black Sea market numbers also inched up on steady

business volumes. Afra rates in the North Sea remained unchanged, while a

surge in Med enquiry resulted in impressive gains in the region. Oppositely,

the Caribs Afra pulled back a bit as demand slowed down considerably and

delays in the USG eased off.

Sale & Purchase

In the Aframax sector, we had the sale of the “TRIDENT STAR” (105,996dwt-

blt 05, Japan) which is on subjects to Thai owner, Nathalin, for a price in the

region of $26.5m.

In the same sector, we had the sale of the “RATNA PUJA” (104,635dwt-blt

06, China) which was sold to Greek buyers, for a price in the region of

$22.5m.

Wet Market

Indicative Period Charters

-12 mos - 'FRONT ENDURANCE' 2009 321,300 dwt

- - $46,000/day - Statoil

-12 mos - 'LUCTOR' 2011 50,000 dwt

- - $17,200/day - Koch

2070

120170220270320370420470520

WS p

oin

ts

DIRTY - WS RATESTD3 TD6 TD9

Week 11 Week 10 ±% Diff 2015 2014

300k 1yr TC 50,000 45,000 11.1% 5000 46,135 28,346

300k 3yr TC 40,000 40,000 0.0% 0 42,075 30,383

150k 1yr TC 35,000 35,000 0.0% 0 35,250 22,942

150k 3yr TC 31,000 31,000 0.0% 0 33,219 24,613

110k 1yr TC 27,000 27,500 -1.8% -500 26,808 17,769

110k 3yr TC 23,500 24,000 -2.1% -500 24,729 19,229

75k 1yr TC 23,000 23,000 0.0% 0 23,596 16,135

75k 3yr TC 21,000 21,000 0.0% 0 20,580 16,666

52k 1yr TC 17,750 17,750 0.0% 0 17,865 14,889

52k 3yr TC 17,500 17,500 0.0% 0 16,638 15,604

36k 1yr TC 16,750 16,750 0.0% 0 16,101 14,024

36k 3yr TC 16,250 16,250 0.0% 0 15,450 14,878

Panamax

MR

Handy

TC Rates

$/day

VLCC

Suezmax

Aframax

60

90

120

150

180

210

240

270

WS p

oin

ts

CLEAN - WS RATESTC1 TC2 TC5 TC6

© Intermodal Research 15/03/2016 3

0

500

1,000

1,500

2,000

2,500

3,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

$/d

ay

Average T/C Rates

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

Chartering

The BDI closed off posi�vely for a forth week in a row, and while with aver-

age earnings for all segments s�ll below OPEX it is definitely not “all smiles”

yet, hopes that the market will gain further ground going forward have

been building up. It goes without saying that this has helped owners’ psy-

chology improve considerably, fact that could expedite a further recovery in

earnings as the result of stronger resistance to charterers’ ideas. The

Capesize segment has once again missed on the upside of the market, with

the BCI looking for direc�on a+er marking a new historical low in the be-

ginning of the week. We should soon start seeing the spillovers of the over-

all market improvement on rates for Capes as well, although we reiterate

our opinion that the segment’s challenges are set to last longer than those

that the rest of the market is facing. Chinese steel output for the first two

months of the year has come in lower compared to the same period in

2015, while factory output growth in the country has recorded its lowest

level post Lehman, adding further to worries in regards to where could the

Capesize trade derive this extra needed support from going forward.

Rates for Capes were holding around last dones following another slow

start to the week, while in the period market the small up�ck noted was

nothing to read too much into as earnings are s�ll hovering at the bo/om.

Strong volumes of business boosted numbers in the Panamax Atlan�c mar-

ket, while the ECSA maintained its momentum. There is a sense that char-

terers are trying to push the market down and inquiries for April dates have

been cancelled/ postponed, but so far the market remains steady.

The geared sizes enjoyed another week of improved rates, with ECSA s�ll

seeing increased business, while in the Pacific the market con�nues to be-

come more busy, with improved numbers quoted throughout the week.

Sale & Purchase

In the Kamsarmax sector we had the sale of the “TENSHIN MARU”

(82,687dwt-blt 08, China), which was sold to Greek buyers, for a price in the

region of $8.0m.

In the Handysize sector we had the resale of the “SHIMANAMI 614”

(37,500dwt-blt 16, Japan) which was reported being sold for a price of

$14.8m.

Mar-16 avg Feb-16 avg ±% 2015 2014 2013

180k 20.0 20.9 -4.2% 33.1 47.5 35.8

76K 11.0 12.3 -10.2% 17.2 24.8 21.3

56k 9.0 9.8 -7.7% 16.1 25.2 21.5

30K 7.0 7.8 -9.7% 13.3 20.0 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

-12mos - 'NAVIOS JOY' 2013 181,389 dwt

-China 10/20 Mar - $ 6,500/day -Uniper

- 4 to 9 mos - 'BLACK PEARL' 2012 78,890 dwt

- Butterworth 09/11 Mar - $ 5,600/day - Bunge

Dry Market

Index $/day Index $/day Index Index

BDI 388 349 39 713 1,097

BCI 176 $2,172 164 $2,221 12 -2.2% 1,009 1,943

BPI 477 $3,827 386 $3,098 91 23.5% 692 960

BSI 420 $4,391 371 $3,875 49 13.3% 663 937

BHSI 249 $3,690 232 $3,446 17 7.1% 365 522

04/03/2016

Baltic IndicesWeek 11

11/03/2016

Week 10Point

Diff

2015 2014$/day

±%

180K 6mnt TC 4,500 4,500 0.0% 0 9,969 22,020

180K 1yr TC 5,500 5,000 10.0% 500 10,263 21,921

180K 3yr TC 6,500 6,500 0.0% 0 11,243 21,097

76K 6mnt TC 5,000 4,750 5.3% 250 7,921 12,300

76K 1yr TC 5,000 4,750 5.3% 250 7,705 12,259

76K 3yr TC 6,250 6,000 4.2% 250 8,724 13,244

55K 6mnt TC 4,750 4,500 5.6% 250 8,162 12,008

55K 1yr TC 5,750 5,500 4.5% 250 7,849 11,589

55K 3yr TC 6,750 6,750 0.0% 0 8,181 11,585

30K 6mnt TC 4,000 4,000 0.0% 0 6,690 9,113

30K 1yr TC 4,250 4,250 0.0% 0 6,897 9,226

30K 3yr TC 5,750 5,750 0.0% 0 7,291 9,541Han

dys

ize

Period

2014

Pa

na

ma

xS

up

ram

ax

Week

11

Week

10

Cap

esi

ze

2015$/day ±% Diff

© Intermodal Research 15/03/2016 4

Secondhand Sales

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

KMAX TENSHIN MARU 82,687 2008

TSUNEISHI

ZHOUSHAN HUL,

China

MAN-B&W Sep-18 $ 8.0m Greek

KMAX ZEYNEP K 81,000 2010STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W Apr-20 $ 10.25m

KMAX SADAN K 80,306 2010STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W Mar-20 $ 10.25m

PMAX JI MAY 75,900 2001

TSUNEISHI

SHBLDG - FUK,

Japan

B&W Jan-20 $ 2.8m Chinese

PMAXWASHINGTON

TRADER74,228 2000

SASEBO SASEBO,

JapanB&W Jan-20 $ 2.6m Chinese

SMAX TENKO MARU 58,732 2008

TSUNEISHI

ZHOUSHAN HUL,

China

MAN-B&W Dec-184 X 30t

CRANES$ 7.8m

Bangladeshi

(SR Shipping)

SMAX DN MILLET 58,600 2011SPP SHIPBUILDING

- SAC, S. KoreaMAN-B&W Oct-16

4 X 36t

CRANES$ 8.3m

SMAX DN VATAN 58,600 2011SPP SHIPBUILDING

- SAC, S. KoreaMAN-B&W Sep-16

4 X 36t

CRANES$ 8.3m

SMAXCALYPSO

COLOSSUS55,429 2009

KAWASAKI

SHIPBUILDING,

Japan

MAN-B&W Jan-194 X 30,5t

CRANES$ 8.4m Greek (Eurobulk)

SMAXSANTA

MARGHERITA53,260 2005

NEW CENTURY

SHIPBUILDI, ChinaMAN-B&W Feb-17

4 X 36t

CRANES$ 3.5m undisclosed

HANDY SHIMANAMI 614 37,500 2016SHIMANAMI

ZOSEN KK, JapanMAN-B&W -

4 X 30,5t

CRANES$ 14.8m undisclosed

undisclosed at auc�on

undisclosed

Bulk Carriers

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

VEGA MERCURY 13,702 2009TAIZHOU KOUAN

SHIPBUIL, ChinaMAN-B&W Mar-19

2 X 45t

CRANESundisclosed

German

(Sa lamon)

MPP/General Cargo

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

PMAX PRETORIA 4,389 2002

HANJIN HI &

CONST - BU, S.

Korea

MAN-B&W Jun-17 undis closed Chinese

Containers

© Intermodal Research 15/03/2016 5

Secondhand Sales

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

AFRA TRIDENT STAR 105,996 2005NAMURA IMARI,

JapanMAN-B&W Nov-20 DH $ 26.5m Thai (Natha l in) on subs

AFRA RATNA PUJA 104,635 2006

SHANGHAI

WAIGAOQIAO SH,

China

MAN-B&W Jan-21 DH $ 22.5m Greek

MR GOLDEN GULF 46,700 1995HYUNDAI HEAVY

INDS - U, S. KoreaB&W Jan-20 DH $ 7.5m

PROD/

CHEMESHIPS EAGLE 13,148 2007

HYUNDAI MIPO

DOCKYARD, S. KoreaMaK Apr-17 DH $ 9.5m

PROD/

CHEMESHIPS AGAMID 13,130 2006

HYUNDAI MIPO

DOCKYARD, S. KoreaMaK Sep-16 DH $ 9.0m

PROD/

CHEM

ESHIPS

BARRACUDA13,130 2006

HYUNDAI MIPO

DOCKYARD, S. KoreaMaK Oct-16 DH $ 9.0m

PROD/

CHEMESHIPS COBIA 13,130 2006

HYUNDAI MIPO

DOCKYARD, S. KoreaMaK Nov-16 DH $ 9.0m

UAE based

(Tris tar)

en-bloc wi th

ESHIPS DANA &

ESHIPS SHAMAL

Tankers

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

LPG ESHIPS SHAMAL 7,879 2010STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W - 6,421 $ 23.0m

LPG ESHIPS DANA 7,868 2010STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W - 6,427 $ 23.0m

en-bloc with GOLDEN

GULF, ESHIPS EAGLE,

ESHIPS COBIA, ESHIPS

BARRACUDA, ESHIPS

AGAMID

UAE based

(Tris tar)

Gas/LPG/LNG

© Intermodal Research 15/03/2016 6

The newbuilding market remains a quiet place where nothing exci�ng is hap-

pening, while so+ening prices and thin ordering ac�vity con�nues to pre/y

much sum up all the ac�on or the lack thereof. When it comes to tanker

orders of above 25,000dwt, MR and Handy tankers have proven to be con-

siderably more popular compared to the bigger sizes. MR orders are on top

of the list, making up half of the ordering ac�vity over in the tanker sector

for 2016 so far. Very low vola�lity as far as freight rates are concerned to-

gether with average earnings that have shown the greatest resistance during

the considerable downward correc�on of the market in the beginning of the

year, has extended ordering appe�te in the segment. In addi�on, the fact

that during 2014 and the biggest part of 2015 very few orders were placed,

has also resulted in MRs having the smaller orderbook over in the tanker

sector, which in itself has provided extra encouragement to owners consider-

ing placing an order.

In terms of recently reported deals, Latvian Shpg. placed an order for two

firm MRs (50,000dwt) at Hyundai Vinashin, in Vietnam with delivery set in

2018.

Newbuilding Market

20

60

100

140

180

mil

lio

n $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

11

Week

10±% 2015 2014 2013

Capesize 180k 45.5 45.5 0.0% 49.9 56 49

Kamsarmax 82k 26.0 26.0 0.0% 27.8 30 27

Panamax 77k 25.5 25.5 0.0% 27.1 29 26

Ultramax 63k 24.0 24.0 0.0% 25 27 25

Handysize 38k 20.0 20.0 0.0% 21 23 21

VLCC 300k 92.0 92.0 0.0% 95.5 99 91

Suezmax 160k 61.5 61.5 0.0% 64 65 56

Aframax 115k 50.5 50.5 0.0% 53 54 48

LR1 75k 44.0 44.0 0.0% 45.8 46 41

MR 50k 35.0 35.0 0.0% 36.1 37 34

190.0 190.0 0.0% 190.0 186 185

76.5 77.0 -0.6% 77.4 78 71

67.5 68.0 -0.7% 68.0 67 63

44.0 44.0 0.0% 45.5 44 41

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

lio

n $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

1 Tanker 50,000 dwtHyundai Mipo, S.

Korea2018 Australian (ASP) $ 45.0m

option,

bi tumen/products

2 Tanker 50,000 dwtHyundai Vinashin,

Vietnam2018 Latvian (Latvian Shpg.) undisclosed

1 Gas 7,500 cbm Murakami Hide, Japan 2017Taiwanese (Wisdom

Marine)undis closed

older deal surfacing

now

2 MPP 4,000 dwt Ben Thuy, Vietnam 2017Vietnamese (Hiep Phuoc

Transport)undisclosed

Newbuilding OrdersSize

© Intermodal Research 15/03/2016 7

The price rally that kicked off in the beginning of March resumed last week in

the demoli�on market, boos�ng sen�ment further and geNng more break-

ers back into ac�on in an�cipa�on of even higher prices in the near future.

Demo bids in the Indian subcon�nent have gained another $15/ldt last week,

a substan�al increase that was quickly reflected in the volume of sales that

reached impressive levels during the pat days. It comes as no surprise that

the number of Capesize and Panamax bulkers sold for demo recently has

once again risen, as an increase in demo prices was all that troubled owners

needed to see to opt for sending their vessels for scrap. We expect this trend

to con�nue as far as the bigger bulkers are concerned especially as long as

earnings for these sizes remain stubbornly below OPEX. Prices this week for

wet tonnage were at around 140-265 $/ldt and dry units received about 120-

245 $/ldt.

The highest price amongst recently reported deals, was that paid by Bangla-

deshi breakers for the Container vessel “ZAMBIA” (82,171dwt-28,544ldt-blt

85), which received $287/ldt.

Demoli�on Market

Week

11

Week

10±% 2015 2014 2013

Bangladesh 265 250 6.0% 360 469 422

India 265 250 6.0% 361 478 426

Pakistan 265 250 6.0% 366 471 423

China 140 140 0.0% 193 313 365

Bangladesh 245 230 6.5% 341 451 402

India 245 235 4.3% 342 459 405

Pakistan 245 230 6.5% 343 449 401

China 120 120 0.0% 174 297 350

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

120

220

320

420

520

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

50

150

250

350

450

550$

/ld

t

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

ZAMBIA 82,171 28,544 1998MITSUI CHIBA ICHIHARA,

JapanCONT $ 287/Ldt BANGLADESHI

MOL INTEGRITY 66,559 24,572 2001 KOYO MIHARA, Japan CONT $ 258/Ldt UNDISCLOSEDas -i s Singapore, net price, incl .

300T ROB

CAPE VENUS 172,612 21,165 1996 NKK CORP - TSU, Japan BULKER $ 239/Ldt INDIAN green recycling

CAPE CENTURY 172,683 21,104 2001 NKK CORP - TSU, Japan BULKER $ 247/Ldt PAKISTANI as-is Singapore, incl. 500T ROB

POS AMBITION 149,330 17,077 1992 SAMSUNG, S. Korea BULKER $ 245/Ldt BANGLADESHI

ZIM EUROPA 45,850 16,900 1997HDW AG - KIEL - GEU,

GermanyCONT $ 245/Ldt INDIAN

ARNOLD SCHULTE 41,000 13,900 2002HYUNDAI HEAVY INDS -

U, S. KoreaCONT $ 274/Ldt UNDISCLOSED as-is Singapore, incl. 600T ROB

PRIWALL 39,666 11,447 1997FLENSBURGER KG,

GermanyCONT $ 270/Ldt UNDISCLOSED as-is Mumbai

SUERTE 72,516 11,343 1995 DAEWOO, S. Korea BULKER $ 257/Ldt INDIAN

MP PANAMAX 6 68,541 10,306 1995 IMABARI, Japan BULKER $ 256/Ldt UNDISCLOSED as-is Dubai

THE CREATOR 68,371 9,861 1995 SASEBO SASEBO, Japan BULKER $ 260/Ldt INDIAN

ORIENT RICH 70,119 9,284 1995 SUMITOMO, Japan BULKER $ 260/Ldt UNDISCLOSED Indian Subcon�nent

AK ABBA 29,611 6,656 1985NKK CORP - SHIMIZU,

JapanBULKER $ 251/Ldt UNDISCLOSED India/Pakistan op�on

CONISTON 4,801 2,490 1991 ASAKAWA, Japan GAS $ 240/Ldt BANGLADESHI

Demolition Sales

The informa�on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa�on to be factual and reliable without mak-

ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc�on of the above review, no liability can be accepted for any loss or damage incurred in any way

whatsoever by any person who may seek to rely on the informa�on and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-

producing is allowed, without the prior wri/en authoriza�on of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valua�ons Department | research@intermodal.gr

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

Mr. Vassilis Logothe�s | v.logothe�s@intermodal.gr

Market News

“Tsakos Energy: best result this decade

Tsakos Energy Naviga�on (TEN) has reported its best

financial result this decade as annual profit enjoyed a

fivefold increase. The tanker owner posted net in-

come of $158.2m for the full year, compared to

$33.5m in 2014. Earnings per share of $1.69 beat the

Wall Street forecast by six cents. A strong fourth

quarter performance with revenue of $112.9m, up

13.5%, contributed to the posi�ve annual result. Ni-

kolas Tsakos, president and chief execu�ve of TEN,

said: “As we enter our 23rd year of successful opera-

�ons, we are pleased to report our strongest results

in this decade and look forward to a 2016 as a pivotal

year of unprecedented growth.” TEN a/ributed the

big increase in its earnings to low crude prices and a

robust world oil demand.

Milestone growth in 2016

Besides pos�ng a strong annual bo/om line for last

year, the company is expec�ng to record milestone

growth in 2016, with nine vessel deliveries. TEN

boosted its �me charter equivalent (TCE) for 2015 to

$25,940 per day compared to $19,834 in 2014.

And it expects the healthy oil demand to con�nue

into 2016, further strengthening the company’s posi-

�on. Tsakos said: “Looking ahead, TEN’s cash flow

genera�ng ability will be enhanced and broadened.

“In the next eight quarters, we will take delivery of 15

fully-financed vessels, the majority of which are un-

der long-term accre�ve employment. “These will be

added to the exis�ng fixed contracts, a number of

which on profit sharing arrangements allowing us to

benefit from the strong market.” Shares in TEN

closed at $6.47 each on the New York Stock Exchange

yesterday, up by 2.17%.”(Trade Winds)

Commodi�es & Ship Finance

11-Mar-16 10-Mar-16 9-Mar-16 8-Mar-16 7-Mar-16W-O-W

Change %

10year US Bond 1.980 1.930 1.900 1.830 1.910 5.3%

S&P 500 2,022.19 1,989.57 1,989.26 1,979.26 2,001.76 1.1%

Nasdaq 4,748.47 4,662.16 4,674.38 4,648.82 4,708.25 0.7%

Dow Jones 17,213.31 16,995.13 17,000.36 16,964.10 17,073.95 1.2%

FTSE 100 6,139.79 6,036.70 6,146.32 6,125.44 6,182.40 -1.0%

FTSE All-Share UK 3,367.52 3,314.20 3,369.93 3,362.78 3,394.68 -1.1%

CAC40 4,492.79 4,350.35 4,425.65 4,404.02 4,442.29 0.8%

Xetra Dax 9,831.13 9,498.15 9,723.09 9,692.82 9,778.93 0.5%

Nikkei 16,938.87 16,852.35 16,642.20 16,783.15 16,911.32 0.2%

Hang Seng 20,199.60 19,984.42 19,996.26 20,011.58 20,159.72 0.1%

DJ US Maritime 197.67 194.00 193.01 189.66 201.97 -2.1%

$ / € 1.12 1.12 1.10 1.10 1.10 1.4%

$ / ₤ 1.42 1.43 1.42 1.42 1.43 -0.6%

¥ / $ 113.82 112.85 113.24 112.67 113.50 0.0%

$ / NoK 0.12 0.12 0.12 0.12 0.12 0.8%

Yuan / $ 6.49 6.51 6.51 6.51 6.52 -0.5%

Won / $ 1,188.55 1,206.00 1,210.25 1,209.95 1,200.00 -0.8%

$ INDEX 87.99 88.20 88.68 88.74 88.64 -0.9%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

an

ge

Da

ta

1,100

1,150

1,200

1,250

1,300

1,350

25

30

35

40

45

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

11-Mar-16 4-Mar-16W-O-W

Change %

Rotterdam 347.5 313.5 10.8%

Houston 363.5 340.0 6.9%

Singapore 357.0 320.0 11.6%

Rotterdam 166.0 147.5 12.5%

Houston 165.0 135.0 22.2%

Singapore 187.5 157.5 19.0%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 11-Mar-16 04-Mar-16

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 7.64 7.44 2.7%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 2.94 3.35 -12.2%

COSTAMARE INC NYSE USD 8.72 9.01 -3.2%

DANAOS CORPORATION NYSE USD 4.07 4.18 -2.6%

DIANA SHIPPING NYSE USD 2.65 2.84 -6.7%

DRYSHIPS INC NASDAQ USD 2.15 3.50 -38.6%

EAGLE BULK SHIPPING NASDAQ USD 1.39 1.29 7.8%

EUROSEAS LTD. NASDAQ USD 1.95 1.92 1.6%

FREESEAS INC NASDAQ USD 0.03 0.02 50.0%

GLOBUS MARITIME LIMITED NASDAQ USD 0.15 0.13 15.4%

GOLDENPORT HOLDINGS INC LONDON GBX 19.63 13.35 47.0%

HELLENIC CARRIERS LIMITED LONDON GBX 3.25 3.25 0.0%

NAVIOS MARITIME ACQUISITIONS NYSE USD 1.77 1.78 -0.6%

NAVIOS MARITIME HOLDINGS NYSE USD 1.36 1.25 8.8%

NAVIOS MARITIME PARTNERS LP NYSE USD 1.45 1.38 5.1%

PARAGON SHIPPING INC. NYSE USD 2.18 3.41 -36.1%

SAFE BULKERS INC NYSE USD 0.79 0.79 0.0%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 3.49 2.72 28.3%

STAR BULK CARRIERS CORP NASDAQ USD 0.77 0.92 -16.3%

STEALTHGAS INC NASDAQ USD 3.34 3.50 -4.6%

TSAKOS ENERGY NAVIGATION NYSE USD 6.46 6.42 0.6%

TOP SHIPS INC NASDAQ USD 2.65 3.50 -24.3%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

15/03/2016

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