Market insight By Timos Papadimitriou SnP Broker Great expectations!

Back in January the expectations for Q3 and Q4 were more than great. Talks and claims for a rising BDI and a healthy market were coming from every-where. Almost everyone believed that things were finally starting to look up for a change! Now at the half way mark of the year, it seems that the only reason to look up is to pray for a miracle. The rates are dropping and the order book seems to be rising. “Seems” being a key word here, as we all know that there is a long road between the signing of an LOI and the deliv-ery of a ready ship.

On the asset side, particularly in the panamax sector, buyers are becoming scarce, with less and less superficial inspections compared to three months ago. It’s starting to feel like 2012 all over again, but we have a long way to go on the price front. Sellers are still resisting and as long as there are some buyers willing to inspect and offer now that the competition is minimal, prices will continue to stay buoyant.

On the boxships front and in contrast to the bulk carriers, the panamax seg-ment is showing an upward movement despite the super sizing that has been taking place in this sector. With Panamaxes having seen such relatively cheap rates it didn’t take much from the firming West Africa trade, which has been the main charter employment lately for several panamax and wide beam panamax units and in essence has cleared up some of the excess ton-nage that had accumulated in the market. How long will this continue for, is yet to be seen.

And since we started with the panamax, let’s move onto a private equity favourite, namely the LR1. The aggressive demand for modern assets (i.e. 10 year-old or younger) that still trade CPP, have pushed these ships to soar in value, reaching levels in the region of mid USD 20s million. On the other hand, older than 10 year-old ships are valued considerably less. The order book is indeed limited and with the exception of the Navig8 order, the seg-ment could easily be labelled as “forgotten” in the Newbuilding village. Once more, this is also a case in which the freight market does not support these prices, but leaves hints and hopes for better days to come for the CPP ves-sels.

Looking at the NB prices for each segment, dry bulk Kamsarmax-es experienced an increase close to 15% over the last 14 months. On the container side, there is significant pressure on yards to increase prices due to their increasing operating costs, but at the same time the lack of feedback from owners has kept prices steady for the time being. On the tankers side, a respective Newbuilding rose from USD 40,5 million back in early 2013 up to over USD 47 million almost a year later.

So we have three markets and three “panamaxes” with different character-istics. The work horse of the dry market, which is close to becoming the old horse being put out to pasture, its containership counterpart that has be-come the new black horse and the forgotten LR1, which is making a come-back for a limited number of players. How are these ships going to hold against the rising orderbooks and the competition from their smaller and/or larger equivalents, it will be very interesting to see.

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

Everything was pointing down in the Dry bulk market on Friday, with all segments closing off the week on the red and Panamax rates dipping further and marking fresh year-lows for yet another week. The BDI closed today (17/06/2014) at 858 points, down by 22 points compared to Monday’s levels (16/06/2014) and a decrease of 146 points com-pared to previous Tuesday’s closing (10/06/2014). Rates for VLs strengthened this past week on the back of activity ex-MEG firming as Far East demand picked up considerably for a second week in a row. The BDTI Monday (16/06/2014), was at 641 points, an increase of 5 points and the BCTI at 518, a decrease of 10 points compared to previous Mon-day (09/06/2014).

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

SnP activity increased slightly this past week, with buyers returning in the market most probably enticed by the softening of second-hand pric-es, while modern units are still proving to be most popular. On the tank-er side, we had the sale of the “KASSOS WARRIOR” (281,050dwt-blt 00, Japan), which was picked up by Greek buyers under private terms. On the dry bulker side, we had the en-bloc resale of the “TSUNEISHI ZHOUSHAN SS-152” (34,893dwt-blt 15, China) and the “TSUNEISHI ZHOUSHAN SS-153” (34,893dwt-blt 15, China) which were picked up by German buyers, for a price of US$ 25.0m each.

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

Activity on the newbuilding front picked up this past week, with an in-crease number of orders for tankers and bulkers coming through. On the tankers side, all orders reported involved MR vessels, something we hadn't seen for a very long time, as the segment has proved fairly un-popular amongst owners this year so far. Despite this slight pick up of activity we expect weeks like this one to be the exception during the summer season and possibly throughout the end of 2014 as well. Even in the case of a stronger second half for the freight market, most owners contemplating placing an order are expected to sit on the sidelines this time round and not rush to the yards, especially as long as the latter keep resisting to offer significant price discounts, which is what we have been witnessing during the past months. In terms of new orders, Hong Kong based owner, Parakou, has placed an order at SPP in S. Korea, for four firm plus eight optional MR tankers (50,000dwt), for a price of US $ 36.0m each and with delivery set between 2016 and 2017.

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

The demolition market has witnessed further pressure this past week, with prices moving down across the Indian sub-Continent and sentiment waning significantly. Despite the fact that Indian breakers managed to snap the great majority of candidate vessels for another week, this was merely a reflection of sentiment in the domestic demolition market. With the Indian Rupee falling to a six-week low against its USD counter-part and local steel prices taking a dip as well, there was only one direc-tion prices could go to and that was south. At the same time, the com-petition wasn't fairing any better either, with Bangladeshi breakers hav-ing to deal with the aftermath of the recently announced budget, which appears to have had a worse impact on the local market than what was originally estimated. At the same time, things in Pakistan remained qui-et, with some slightly better volumes of enquiry compared to their neighbors, while we expect activity in the next few weeks to keep slow-ing down across the Indian sub-Continent as the monsoon season is now underway. Average prices this week for wet tonnage were at around 325-490$/ldt and dry units received about 310-470$/ldt.

Weekly Market Report

Issue: Week 24| Tuesday 17th June 2014

© Intermodal Research 17/06/2014 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 37.5 12,404 34.5 8,634 43.7% 25,444 21,133

280k MEG-USG 25 7,548 24 5,823 29.6% 17,298 7,132

260k WAF-USG 45 21,982 45 21,932 0.2% 36,966 26,890

130k MED-MED 62.5 12,315 70 23,730 -48.1% 27,119 17,714

130k WAF-USAC 62.5 14,542 70 19,539 -25.6% 19,408 13,756

130k BSEA-MED 62.5 13,940 70 20,025 -30.4% 27,119 17,714

80k MEG-EAST 95 17,944 95 18,106 -0.9% 16,395 11,945

80k MED-MED 75 8,636 75 8,680 -0.5% 26,066 13,622

80k UKC-UKC 95 8,900 90 5,007 77.7% 32,644 18,604

70k CARIBS-USG 97.5 13,189 95 12,154 8.5% 25,980 16,381

75k MEG-JAPAN 83.5 10,594 82.5 10,403 1.8% 11,017 12,011

55k MEG-JAPAN 112.5 13,629 117 14,992 -9.1% 11,013 12,117

37K UKC-USAC 107.5 5,911 100 4,435 33.3% 9,025 11,048

30K MED-MED 120 17,952 125 16,037 11.9% 17,266 17,645

55K UKC-USG 110 15,685 110 15,678 0.0% 24,101 14,941

55K MED-USG 107.5 13,794 107.5 13,880 -0.6% 22,142 12,642

50k CARIBS-USAC 110 12,721 105 10,689 19.0% 26,445 15,083

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Vessel Routes

Week 24 Week 23$/day

±%

Jun-14 May-14 ±% 2014 2013 2012

300KT DH 75.0 75.2 -0.3% 71.6 56.2 62.9

150KT DH 50.0 50.0 0.0% 48.5 40.1 44.9

110KT DH 37.5 38.0 -1.3% 36.7 29.2 31.2

75KT DH 32.8 34.4 -4.8% 33.0 28.0 26.7

52KT DH 27.5 28.8 -4.5% 29.2 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

Suezmax performance aside, the crude carrier market has taken a deep breath this week as demand ex-MEG picked up. The escalation of tensions in Iraq could possibly give a short-term boost to rates, as supply disruptions or even simply the fear of them always create a sense of panic in the mar-ket or the need to start stocking from different areas and thus increasing tone-miles. Rates for VLs have moved up for both the Eastbound and West-bound voyages, with Far East demand being particularly firm. Despite this week’s performance though, the reality is that there is still a lot of available tonnage in the MEG region and probably a long way before owners start enjoying substantially longer periods of a less volatile market.

The Suezmax market resumed its downward movement for a second week in a row, as lack of fresh cargoes in the key trading routes prevented any rate upside. Activity in the WAF region remained soft, with the number of fixtures declining dramatically compared to the week prior, whilst thin busi-ness for cross-Med voyages has pushed rates to below WS63 in the region.

The North Sea and Caribs Afras both enjoyed more active markets last week and it looks like the rate for the Caribs/USG trip might enjoy some further upside this coming week. At the same time rates in the Med sustained their levels with uninspiring activity prevailing in the region.

Sale & Purchase

In the VLCC sector, we had the sale of the “KASSOS WARRIOR” (281,050dwt-blt 00, Japan), which was picked up by Greek buyers under private terms.

In the Aframax sector we had the sale of the “ARAB” (105,994dwt-blt 98, S. Korea), which was picked up for a price of $ 12.8m for shuttle tanker con-version.

Wet Market

Indicative Period Charters

- 18 mos - 'YASA GOLDEN BOSPHORUS' 2007 115,167dwt

- - $ 15,800/day - Teekay

- 12 mos - 'HAFNIA LUPUS' 2012 52,600dwt

- - $ 14,000/day - Valero

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 24 Week 23 ±% Diff 2014 2013

300k 1yr TC 23,750 23,750 0.0% 0 25,875 20,087

300k 3yr TC 27,750 27,750 0.0% 0 27,075 23,594

150k 1yr TC 19,250 19,250 0.0% 0 20,188 16,264

150k 3yr TC 23,250 23,250 0.0% 0 22,138 18,296

110k 1yr TC 15,500 15,500 0.0% 0 15,740 13,534

110k 3yr TC 17,250 17,250 0.0% 0 17,096 15,248

75k 1yr TC 15,250 15,250 0.0% 0 15,510 15,221

75k 3yr TC 16,500 16,500 0.0% 0 16,335 15,729

52k 1yr TC 14,500 14,750 -1.7% -250 15,198 14,591

52k 3yr TC 15,500 15,500 0.0% 0 16,002 15,263

36k 1yr TC 14,500 14,500 0.0% 0 14,646 13,298

36k 3yr TC 15,500 15,500 0.0% 0 15,429 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 17/06/2014 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 25,500 26,000 -1.9% -500 25,299 17,625

170K 1yr TC 24,500 24,500 0.0% 0 25,971 15,959

170K 3yr TC 22,750 22,750 0.0% 0 23,898 16,599

76K 6mnt TC 11,000 11,750 -6.4% -750 14,627 12,224

76K 1yr TC 11,000 12,500 -12.0% -1,500 14,140 10,300

76K 3yr TC 13,500 14,000 -3.6% -500 14,374 10,317

55K 6mnt TC 11,000 11,500 -4.3% -500 13,242 11,565

55K 1yr TC 11,500 11,750 -2.1% -250 12,742 10,234

55K 3yr TC 12,250 12,500 -2.0% -250 12,710 10,482

45k 6mnt TC 9,500 10,000 -5.0% -500 11,398 9,771

45k 1yr TC 10,250 10,250 0.0% 0 10,960 8,852

45k 3yr TC 10,500 10,750 -2.3% -250 10,971 9,237

30K 6mnt TC 9,250 9,500 -2.6% -250 10,085 8,244

30K 1yr TC 9,500 9,750 -2.6% -250 9,996 8,309

30K 3yr TC 10,000 10,250 -2.4% -250 10,179 8,926

Han

dym

axH

and

ysiz

e

Period

2013

Pan

amax

Sup

ram

ax

Week

24

Week

23

Cap

esi

ze

2014$/day ±% Diff

Chartering

The Dry Bulk market continues to face a very challenging environment over-

all, with any efforts for a turnaround hitting a wall so far. The BDI has lost

further ground this week, closing slightly above the 900 points levels on

Friday, while this current week has already shown signs of further slowing

down. On the other hand, news that China’s crude steel output reached

70.43million tons in May, hitting another record high, are reinforcing the

belief that seaborne iron ore should pick up soon as construction in the

country remains firm.

Rates for Capes displayed some strength in the first half of the week but the

positive sentiment quickly evaporated with rates all around pointing down-

wards as the week came to a close. The Atlantic Cape witnessed slightly

increased activity but no positive spill overs to affect rates, while in the

Pacific the rate for the W. Australia/China went back to below US$ 8/mt.

The Panamax market was the worst performer yet again, with rates strug-

gling on the back of uninspiring activity all around. In the Atlantic, volumes

ex-USG and ECSA remained thin, while in the Pacific, talks of owners decid-

ing not to trade altogether at these levels have started to emerge. The aver-

age T/C for the segment is currently below US$4,500/day and despite in-

creased period activity, T/C figures have also taken additional discounts.

In the smaller size segments things were no different, with rates for Handy/

Supra tonnage trading in the USG region remaining soft, while enquiry was

fairly good in the Baltic Sea. At the same time the Handysize Index dipped

to below 450 points, a level last visited during March last year.

Sale & Purchase

In the Handymax sector, we had the sale of the “SKYE” (42,223dwt-blt 91,

Japan), which was picked for a price of US$ 5.2m.

In the Handysize sector we had the en-bloc resale of the “TSUNEISHI

ZHOUSHAN SS-152” (34,893dwt-blt 15, China) and the “TSUNEISHI

ZHOUSHAN SS-153” (34,893dwt-blt 15, China) which were picked up by

German buyers, for a price of US$ 25.0m each.

Jun-14 May-14 ±% 2014 2013 2012

180k 50.5 52.1 -3.1% 49.2 35.8 34.6

76K 26.0 26.8 -3.0% 26.9 21.3 22.7

56k 25.3 26.3 -4.0% 26.4 21.5 23.0

30K 20.3 20.5 -1.2% 20.7 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 6 to 10 mos - 'CAPE GANNET' 2004 180,181dwt

- Zhoushan 18/20 Jun - $ 23,000/day - Louis Dreyfus

- 3 to 5 mos - 'YASA ILHAN ' 2007 55,518dwt

- passing Singapore ppt - $ 10,500/day - Dreyfus

Dry Market

Index $/day Index $/day Index Index

BDI 906 989 -83 1,201 1,205

BCI 1,730 $13,050 1,793 $13,370 -63 -2.4% 1,973 2,106

BPI 582 $4,670 727 $5,838 -145 -20.0% 1,097 1,186

BSI 748 $7,822 802 $8,389 -54 -6.8% 1,012 983

BHSI 459 $6,833 481 $7,135 -22 -4.2% 608 562

06/06/2014

Baltic IndicesWeek 24

13/06/2014Week 23

Point

Diff

2014 2013$/day

±%

© Intermodal Research 17/06/2014 4

Secondhand Sales

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

VLCC SKYSAN 313,992 2006

KAWASAKI

SHIPBUILDING,

Japan

MAN-B&W Sep-16 DH undisclosedSingaporean

(Aramo)

VLCCKASSOS

WARRIOR281,050 2000 IHI - KURE, Japan Sulzer Nov-15 DH undisclosed Greek

AFRA ARAB 105,994 1998HYUNDAI HEAVY

INDS - U, S. KoreaB&W - DH $ 12.8m undisclosed

convers ion to

shuttle tanker

MR MARLIN IRIS 50,319 2008 GSI, China MAN-B&W Sep-18 DH $ 24.4m

MR MARLIN GLORY 50,319 2008 GSI, China MAN-B&W Dec-18 DH $ 24.4m

MR MARLIN TOPAZ 50,319 2009 GSI, China MAN-B&W Mar-14 DH $ 26.1m

SMALL PAN AEGIS 6,221 2008SELAY GEMI INSAAT,

TurkeyWarts i la Nov-18 DH undisclosed

SMALL PAN ADVENTURE 6,221 2008SELAY GEMI INSAAT,

TurkeyMaK May-18 DH undisclosed

SMALL PAN AGILITY 5,136 2005MARMARA

YARIMCA, TurkeyMaK Sep-15 DH undisclosed

Greek

UK based

(Boreal is )

commited in May

and fina l ised last

week

Tankers

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

RUIJIN 8,036 1991 NISHI, Japan B&W Dec-16

2 X 25t

DRS,2 X

20t DRS

$ 1.4m undisclosed

MPP/General Cargo

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

KMAX GREAT FUZHOU 82,500 2011

JIANGSU

SHENGHUA SHIPB,

China

MAN-B&W - $ 15.5m Chinese incomplete hul l

HMAX SKYE 42,223 1991

OSHIMA

SHIPBUILDING,

Japan

Sulzer Mar-164 X 25t

CRANES$ 5.2m undisclosed

HANDY

TSUNEISHI

ZHOUSHAN SS-

152

34,893 2015

TSUNEISHI

ZHOUSHAN HUL,

China

MAN-B&W -4 X 30t

CRANES$ 25.0m

HANDY

TSUNEISHI

ZHOUSHAN SS-

153

34,893 2015

TSUNEISHI

ZHOUSHAN HUL,

China

MAN-B&W - $ 25.0m

German

Bulk Carriers

© Intermodal Research 17/06/2014 5

Secondhand Sales

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

PMAX MANHATTAN 5,040 2005

HYUNDAI SAMHO

HEAVY IN, S.

Korea

Sulzer Apr-15 $ 14.5mS. Korean

(Sinokor)

PMAX CONTI ANPING 4,298 2006HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Jul-16 $ 14.8m

S. Korean

(Sinokor)

Containers

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

LPG MAYFAIR 9,127 2007MIURA SAIKI,

JapanMAN-B&W Dec-17 9,343 undisclosed

LPG CHARLTON 9,127 2006MIURA SAIKI,

JapanMAN-B&W Dec-16 9,339 undisclosed

LPG MISTRAL 4428 1990KANREI NARUTO,

JapanMitsubishi Nov-15 3,245 undisclosed Indones ian

Singaporean

(Epic Gas)

Gas/LPG/LNG

© Intermodal Research 17/06/2014 6

Activity on the newbuilding front picked up this past week, with an increase number of orders for tankers and bulkers coming through. On the tankers side, all orders reported involved MR vessels, something we hadn't seen for a very long time, as the segment has proved fairly unpopular amongst owners this year so far. Despite this slight pick up of activity we expect weeks like this one to be the exception during the summer season and possibly throughout the end of 2014 as well. Even in the case of a stronger second half for the freight market, most owners contemplating placing an order are expected to sit on the sidelines this time round and not rush to the yards, especially as long as the latter keep resisting to offer significant price dis-counts, which is what we have been witnessing during the past months.

In terms of recently reported deals, Hong Kong based owner, Parakou, has placed an order at SPP in S. Korea, for four firm plus eight optional MR tank-ers (50,000dwt), for a price of US $ 36.0m each and with delivery set be-tween 2016 and 2017.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

24

Week

23±% 2014 2013 2012

Capesize 180k 58.0 58.0 0.0% 56.4 49 47

Kamsarmax 82k 30.8 30.8 0.0% 30.5 27 28

Panamax 77k 29.5 29.5 0.0% 29.2 26 27

Supramax 58k 28.0 28.0 0.0% 27 25 25

Handysize 35k 23.5 23.5 0.0% 23 21 22

VLCC 300k 101.0 101.0 0.0% 98.9 91 96

Suezmax 160k 66.0 66.0 0.0% 64 56 58

Aframax 115k 55.0 55.0 0.0% 54 48 50

LR1 75k 46.0 46.5 -1.1% 45.9 41 42

MR 52k 37.0 37.0 0.0% 36.9 34 34

LNG 150K 186.0 186.0 0.0% 185.6 185 186

LGC LPG 80k 80.0 80.0 0.0% 77.4 71 71

MGC LPG 52k 67.3 67.0 0.4% 65.9 63 62

Vessel

Indicative Newbuilding Prices (million$)

Gas

Bu

lke

rsTa

nke

rs

10

30

50

70

90

110

mil

lion

$Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

4+4+4 Tanker 50,000 dwt SPP, S. Korea 2016-2017 HK based (Parakou) $ 36.0m chemical

3 Tanker 50,000 dwt Guangzhou, China 2016 Chinese (COSCO Dalian) undisclosed

2 Tanker 50,000 dwtAker Philadelphia,

U.S.A.2016-2017

USA based (Philly Tankers

AS)$ 125.0m Jones Act

2 Tanker 3,500 dwt Daesun, China 2016S. Korean (Heung-A

Shipping)undisclosed

3 Bulker 180,000 dwtHyundai Samho, S.

Korea2015-2016 German ( Blumenthal) $ 59.0m

options, 4 ordered in

total

2 Bulker 81,500 dwtTsuneishi Cebu,

Philippines2016-2017 Japanese (Nissen Kaiun) undisclosed

eco, options, 5

ordered in total

1 Bulker 81,500 dwtTsuneishi Cebu,

Philippines11/2016 Japanese (Hisafuku Kisen) undisclosed

2 Bulker 34,000 dwt Namura, Japan 2017 Swedish (Lauritzen Bulkers) undisclosed

10 Container 1,900 teu Hanjin, S. Korea 2016-2017 Belgian (Delphis)region $

30.0mLOI stage

1 Gas 4,500 cbm Murakami Hide, Japan 2015 Japanese (Fuji Iron Works) undisclosed

1 Gas 4,500 cbm Murakami Hide, Japan 2016Japanese (Daytona

Industries)undisclosed

Newbuilding Orders Size

© Intermodal Research 17/06/2014 7

The demolition market has witnessed further pressure this past week, with prices moving down across the Indian sub-Continent and sentiment waning significantly. Despite the fact that Indian breakers managed to snap the great majority of candidate vessels for another week, this was merely a reflection of sentiment in the domestic demolition market. With the Indian Rupee fall-ing to a six-week low against its USD counterpart and local steel prices taking a dip as well, there was only one direction prices could go to and that was south. At the same time, the competition wasn't fairing any better either, with Bangladeshi breakers having to deal with the aftermath of the recently announced budget, which appears to have had a worse impact on the local market than what was originally estimated. At the same time, things in Paki-stan remained quiet, with some slightly better volumes of enquiry compared to their neighbors, while we expect activity in the next few weeks to keep slowing down across the Indian sub-Continent as the monsoon season is now underway. Average prices this week for wet tonnage were at around 325-490$/ldt and dry units received about 310-470$/ldt.

The highest prices amongst recently reported deals, was that paid by Indian breakers for the Bulker ‘FISHER D’ (29,003dwt-6,197ldt-blt 81), which re-ceived a firm price of $ 507/ldt.

Demolition Market

Week

24

Week

23±% 2013 2012 2011

Bangladesh 475 480 -1.0% 422 440 523

India 490 500 -2.0% 426 445 511

Pakistan 470 470 0.0% 423 444 504

China 325 325 0.0% 365 384 451

Bangladesh 450 455 -1.1% 402 414 498

India 470 480 -2.1% 405 419 484

Pakistan 450 450 0.0% 401 416 477

China 310 310 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

MSC HINA 21,370 10,665 1984WARNOWWERFT ,

GermanyCONT $ 490/Ldt Indian failed last week and resold

BALTIC MERCUR 19,036 8,920 1988WARNOWWERFT ,

GermanyGC $ 480/Ldt Indian

SAN TEODORO 29,462 7,134 1985USUKI IRON WORKS,

JapanBULKER $ 493/Ldt Indian

GLORIOUS 40,836 7,017 1986SANOYAS CORP,

JapanBULKER $ 490/Ldt Bangladeshi

BALTIC NOVATOR 10,510 6,752 1984GIESSEN-DE NOORD,

NetherlandsREEFER $ 496/Ldt Indian incl. 72T aluminum

FLORIDA II 28,234 6,485 1980MITSUBISHI

SHIMONOSEKI, JapanBULKER $ 457/Ldt Indian

UNI-BROTHERS 27,650 6,388 1984HITACHI ZOSEN -

INNOSH, JapanBULKER $ 477/Ldt Indian

FISHER D 29,003 6,197 1981HAKODATE DOCK,

JapanBULKER $ 507/Ldt Indian

BENEGAS 6,110 3,443 1981HITACHI ZOSEN -

INNOSH, JapanGAS $ 495/Ldt Indian

NEW FORTUNE 6,831 2,374 1986 NISHI, Japan GC $ 430/Ldt Bangladeshi

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

“Star Bulk and Oceanbulk to Merge

Star Bulk Carriers Corp. said Monday it will merge with Oceanbulk Shipping, owned by Oaktree Capital Management L.P. and the family of Star Bulk's nonex-ecutive chairman Petros Pappas, creating the largest U.S.-listed dry-bulk company.

Starbulk will issue 54.1 million shares of stock, cur-rently valued at about $653 million, to Oaktree and the Pappas family, and in turn Oceanbulk Shipping LLC and Oceanbulk Carriers LLC will become indirect wholly-owned units of Star Bulk. Oaktree will own about 61% of Star Bulk's shares upon the closing of the deal. The Pappas family will hold 12.5% of the company's stock.

Mr. Pappas will become the chief executive of Star-bulk and Spyros Capralos, current president and chief executive of Star Bulk, will become nonexecutive chairman as part of the deal. The merger, which is expected to add to Starbulk's earnings, is seen closing within the next 30 days.

Star Bulk will also agree to certain voting restrictions, standstill obligations and ownership limitations as part of the deal, as well as certain rights for Oaktree Investors to make board nominations and to appoint officers of the company.

Star Bulk will acquire an operating fleet of 15 dry-bulk carrier vessels, including newly built vessels. The combined company will be the largest U.S. listed dry bulk company with a fully delivered fleet of 69 ves-sels, according to Star Bulk.

The company said it plans to pursue additional acqui-sitions that will add to earnings.” (The Wall Street Journal)

Commodities & Ship Finance

13-Jun-14 12-Jun-14 11-Jun-14 10-Jun-14 9-Jun-14W-O-W

Change %

10year US Bond 2.600 2.590 2.640 2.630 2.610 0.0%

S&P 500 1,936.16 1,930.11 1,943.89 1,950.79 1,951.27 -0.7%

Nasdaq 4,310.65 4,297.63 4,331.93 4,338.00 4,336.24 -0.2%

Dow Jones 16,775.74 16,734.19 16,843.88 16,945.92 16,943.10 -0.9%

FTSE 100 6,777.90 6,843.10 6,838.90 6,873.60 6,875.00 -1.2%

FTSE All-Share UK 3,618.54 3,658.57 3,655.75 3,675.21 3,676.19 -1.4%

CAC40 4,543.28 - 4,555.11 4,595.00 4,589.12 -0.8%

Xetra Dax 9,912.87 - 9,949.81 10,028.80 10,008.63 -0.7%

Nikkei 15,097.84 14,973.53 15,069.48 14,994.80 15,124.00 0.1%

Hang Seng 23,319.17 - 23,257.29 23,315.74 23,117.47 1.6%

DJ US Maritime 372.18 371.65 373.20 373.09 376.06 -0.5%

$ / € 1.35 1.35 1.35 1.36 1.36 -0.7%

$ / ₤ 1.70 1.68 1.68 1.68 1.68 0.9%

¥ / $ 101.99 101.93 102.08 102.35 102.50 -0.4%

$ / NoK 0.17 0.17 0.17 0.17 0.17 -0.5%

Yuan / $ 6.19 6.20 6.21 6.20 6.21 -0.5%

Won / $ 1,018.17 1,017.25 1,016.84 1,017.19 1,017.91 -0.2%

$ INDEX 86.80 86.80 86.90 87.10 87.00 -0.1%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,240

1,300

1,360

1,420

1,480

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

13-Jun-14 6-Jun-14W-O-W

Change %

Rotterdam 895.5 864.5 3.6%

Houston 979.0 980.0 -0.1%

Singapore 909.0 882.0 3.1%

Rotterdam 586.0 578.0 1.4%

Houston 592.5 592.5 0.0%

Singapore 600.5 592.5 1.4%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 13-Jun-14 06-Jun-14

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 10.55 10.52 0.3%

BALTIC TRADING NYSE USD 6.27 6.35 -1.3%

BOX SHIPS INC NYSE USD 1.53 1.51 1.3%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 10.73 10.66 0.7%

COSTAMARE INC NYSE USD 22.28 22.37 -0.4%

DANAOS CORPORATION NYSE USD 6.19 5.98 3.5%

DIANA SHIPPING NYSE USD 11.44 11.46 -0.2%

DRYSHIPS INC NASDAQ USD 3.36 3.16 6.3%

EAGLE BULK SHIPPING NASDAQ USD 3.49 3.35 4.2%

EUROSEAS LTD. NASDAQ USD 1.13 1.18 -4.2%

FREESEAS INC NASDAQ USD 0.88 0.90 -2.2%

GLOBUS MARITIME LIMITED NASDAQ USD 3.60 3.82 -5.8%

GOLDENPORT HOLDINGS INC LONDON GBX 325.00 329.40 -1.3%

HELLENIC CARRIERS LIMITED LONDON GBX 41.00 41.54 -1.3%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.56 3.55 0.3%

NAVIOS MARITIME HOLDINGS NYSE USD 9.86 9.45 4.3%

NAVIOS MARITIME PARTNERS LP NYSE USD 19.05 18.72 1.8%

NEWLEAD HOLDINGS LTD NASDAQ USD 0.60 0.66 -9.1%

PARAGON SHIPPING INC. NYSE USD 5.55 5.67 -2.1%

SAFE BULKERS INC NYSE USD 9.18 8.60 6.7%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.42 1.40 1.4%

STAR BULK CARRIERS CORP NASDAQ USD 12.07 12.04 0.2%

STEALTHGAS INC NASDAQ USD 10.05 10.43 -3.6%

TSAKOS ENERGY NAVIGATION NYSE USD 7.26 7.23 0.4%

TOP SHIPS INC NASDAQ USD 2.19 1.85 18.4%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

17/06/2014

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