Market insight

By Panos Tsilingiris

SnP/ Newbuildings Broker

The steep appreciation in dry bulker values between late 2012 and March 2014 resulted in unrealistically expensive ship values compared to funda-mentals and vessel’s earnings. The concurrence of historically low prices in both second-hand and newbuilding markets, which approached the post Asian crisis lows in inflation-adjusted terms, offered the perfect background for asset play, but while several owners attempted to offload tonnage ac-quired at rock-bottom prices only a dozen of owners managed to successful-ly do so.

Most real-world buy-low-sell-higher cases concentrated on the flipping of newbuildings contracted at rock-bottom prices when we witnessed Handysize Newbuildings at sub-20musd levels, Ultramaxes at sub-24musd, Kamsarmaxes at rgn 26musd, and Capes at low-mid 40s. Today, after the ongoing correction in newbuildings prices, we still stand well in excess of 10% above previous lows. We do not anticipate witnessing new lows in the Newbuildings market because the costs of creating a new asset, ie, new-building prices, are well above previous lows. This is not only due to labor and maker’s inflation but also because of incoming new regulations (notably, Tier III engines, harmonized CSR, etc). Indeed, certain shipbuilders in all ma-jor shipbuilding countries have realized this and are more aggressively mar-keting slots again in advance in order to secure orders which demand a low-er cost of construction.

During the same period in the S&P market, volatility prevailed. As far as LME Panamaxes are concerned, ex-Ocean Planet (‘05 Sasebo) was com-mitted in January 2013 by Chartworld at rgn m$15 while ex-Ocean Lily (’06 Imabari) was sold to Sanko close to 25musd this March, resulting in a 2/3 value appreciation in just 14 months. The current correction notoriously commenced back in June with the sale of the ‘Yusho Spica’ at rgn 20musd which marked an abrupt 5musd discount from her same-year built sister ‘Ocean Lily’ sold just 3 months earlier (in March 2014). Asset values were brought back to May 2013 when the ex-Shoyo (76k ’06 Namura) was sold at 20.25musd to Diana. This week’s reported sale of 2008-built Japanese-built Kamsarmax Medi Sentosa at region 19.5musd to Greeks is marginally dis-counted when compared to the sale of ex-Stefania Lembo (82k, 2010, Tsu-neishi – JPN) to Diana Shipping back in September 2013. Interestingly, the price correction for older tonnage Panamax tonnage is steeper. More than a month ago the Japanese controlled Panamax Bulker 'Mishima' (76600kdwt, 2002, Imabari, MAN B&W 6S60) was committed at rgn 12.5musd to Greeks very close to the levels of ex-Archon (75k, Hitachi, 2001, B&W 6S60) which was committed in the end of January 2013 (very close to the bottom) by Greeks at rgn 12.4musd. That said, as far as mid/late 90s Panamaxes the prices are concerned, these are currently very close to the previous bottom.

Two ongoing factors that we need to take into consideration are the weak-ening Japanese Yen and the price of Oil/Bunkers. The Japanese Yen, which declined to a seven year low versus the dollar, and its outlook after the Bank of Japan unexpectedly increased monetary stimulus that tends to devalue the currency, will further entice more Japanese owners and Builders to sell Vessels and Slots, respectively, and accept less dollars. Moving on to the price of oil, a rule of thumb is that a 10% decrease will increase 0.25% off global growth, while the lower price of Bunkers will hurt the newbuildings ‘eco’ story and will give some support to “non-eco” tonnage. Based on the recent history and the rock-bottom price resistance levels witnessed before, there may be longer-term value in Newbuilding and S&P deals priced south of current market levels.

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

Leave it to Capes to turn things round for the BDI. The very strong per-formance of Capesize rates has brought some smiles back despite the fact that the smaller size segments didn't follow the upward trend. The BDI closed today (04/11/2014) at 1,484 points, up by 28 points com-pared to Monday’s levels (03/11/2014) and an increase of 89 points compared to previous Tuesday’s closing (28/10/2014). Far East demand has been supporting the crude carriers market, with VL activity ex-MEG jumping to impressive levels, while Aframaxes resumed the firm perfor-mance of late. The BDTI Monday (03/11/2014) was at 813 points, an increase of 78 points and the BCTI at 729, an increase of 37 points com-pared to previous Monday’s (27/10/2014)levels.

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

Activity in the second hand market has returned to healthy volumes this past week as buying interest appears to be steadily making a comeback. Dry bulk units had the lion’s share as the recent freight market come-back seems to be all that was needed for those owners who were sitting on the sidelines to get back in the game. On the tanker side, we had the sale of the “NORD STAR” (45,997dwt-blt 09, Japan) which was picked up for a price of US$ 19.0m. On the dry bulker side, we had the sale of the “MEDI SENTOSA” (83,690dwt-blt 08, Japan), which went to Greek buy-ers for a price of $ 19.5m.

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

Things on the newbuilding front remained very quiet this past week, with very few orders being reported, while prices show no intention of moving either direction in the short term. Despite the fact that this is one of the very rare times during the year that the freight market per-formance of both tankers and dry bulkers looks more than promising, it seems that the most owners are not yet ready to revisit the prospect of ordering, or they need more time of improved rates before they do so. At the same time, the tanker sector remains much more popular com-pared to the dry bulker one, possibly showing more faith in the longer term fundamentals of the market or simply revealing the weight that a much healthier orderbook can have on the decision to invest in shipping today and while excess supply of tonnage still remains the main industry worry. In terms of recently reported deals, Transport Recovery Fund has placed an order for two firm plus two optional Suezmax tankers (157,500dwt) at New Times, in China, for a price of USD 60.0m each and delivery set in 2016.

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

The demolition market remains under significant pressure, with cheap Chinese scrap steel weighing down heavily on any attempts for a posi-tive reversal. Most breakers across the Indian sub-Continent are in a wait and see mode, as there is no reason for them to commit to current levels, with the market softening as fast as it does. As a result, both vol-ume and prices have taken a big hit this past week, while those sales that are being reported at levels a lot higher than the market average, are deals concluded much earlier on. Some are hopeful that the volume of imported steel by China might start facing restrictions in the future, which could well be the case if some sort of import tax is applied. If this scenario materializes, market fundamentals could well support a price recovery, as the reality is that the performance of the Indian Rupee has stabilized a lot and steel demand remains at satisfactory levels across all demo markets despite recent doldrums. Average prices this week for wet tonnage were at around 300-485$/ldt and dry units received about 280-465$/ldt.

Weekly Market Report

Issue: Week 44 | Tuesday 4th November 2014

© Intermodal Research 04/11/2014 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 57 46,717 44 29,099 60.5% 25,369 21,133

280k MEG-USG 31 26,856 24 13,334 101.4% 14,064 7,132

260k WAF-USG 60 48,334 55 41,035 17.8% 35,984 26,890

130k MED-MED 80 33,150 68 23,255 42.5% 27,068 17,714

130k WAF-USAC 75 28,069 68 23,752 18.2% 21,349 13,756

130k BSEA-MED 80 33,790 68 22,577 49.7% 27,068 17,714

80k MEG-EAST 110 26,633 105 25,011 6.5% 17,389 11,945

80k MED-MED 120 35,672 88 21,380 66.8% 24,768 13,622

80k UKC-UKC 105 21,241 100 18,720 13.5% 32,356 18,604

70k CARIBS-USG 165 42,156 125 28,357 48.7% 24,616 16,381

75k MEG-JAPAN 135 33,199 118 26,800 23.9% 14,909 12,011

55k MEG-JAPAN 132 22,608 132 22,589 0.1% 13,092 12,117

37K UKC-USAC 150 18,515 145 17,893 3.5% 7,885 11,048

30K MED-MED 200 28,910 190 25,126 15.1% 15,475 17,645

55K UKC-USG 135 24,110 120 20,626 16.9% 22,649 14,941

55K MED-USG 125 21,804 113 17,229 26.6% 19,966 12,642

50k CARIBS-USAC 135 20,095 125 19,483 3.1% 25,017 15,083

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Vessel Routes

Week 44 Week 43$/day

±%

Oct-14 Sep-14 ±% 2014 2013 2012

300KT DH 75.8 74.0 2.4% 72.9 56.2 62.9

150KT DH 52.1 50.0 4.2% 49.2 40.1 44.9

110KT DH 42.3 41.8 1.3% 37.9 29.2 31.2

75KT DH 32.5 32.5 0.0% 32.8 28.0 26.7

52KT DH 25.5 25.5 0.0% 27.7 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

Spread the joy! The crude carriers market seems unstoppable, with rates jumping across the board and sentiment firming considerably, allowing for the built up of even greater expectations for the upcoming winter season. Despite the fact that bunker prices moved up this past week, even at these levels they still side with owners. At the same time, the significant increase of demand ex-China has been on of the main drivers of this latest surge, which has given some much needed legs to the mini rally of late. Activity ex MEG has jumped this past week, mainly driven by firming Far East enquiry, driving VL rates to over WS55 for the eastbound voyage, while the WAF region remained stable during the week in terms of fresh business coming through.

The Suezmax market followed the overall market trend and closed off the week on the green despite the fact that the W. Africa market was a bit qui-eter compared to the week prior. Despite a quieter WAF region in terms of activity, steady European demand and strong rates for VLs in the region allowed Suezmax tonnage to also enjoy some significant upside as well.

Rates for Aframaxes also moved higher across the board , with cross-Med business noting another impressive jump sending rates from WS 88 to WS120,while at the same time the Caribs Afra maintained its strength de-spite the fact that activity scaled back midweek onwards.

Sale & Purchase

In the MR sector, we had the sale of the “NORD STAR” (45,997dwt-blt 09, Japan) which was picked up for a price of US$ 19.0m.

In the Product Chemical tankers sector we had the sale of the “CRYSTAL ATLANTICA” (16,631dwt-blt 00, Italy), which was sold to Sinochem for a price of US$ 9.0m.

Wet Market

Indicative Period Charters

- 2 yrs - 'SMITI' 2005 281,396dwt

- - $ 28,350/day - HMM

- 1 yr - 'PINK STARS' 2010 115,592dwt

- - $ 20,500/day - Reliance

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 44 Week 43 ±% Diff 2014 2013

300k 1yr TC 31,750 31,750 0.0% 0 27,216 20,087

300k 3yr TC 34,250 34,250 0.0% 0 29,632 23,594

150k 1yr TC 25,750 25,750 0.0% 0 21,614 16,264

150k 3yr TC 28,250 28,250 0.0% 0 23,643 18,296

110k 1yr TC 20,250 20,250 0.0% 0 16,932 13,534

110k 3yr TC 22,250 22,250 0.0% 0 18,575 15,248

75k 1yr TC 17,500 16,500 6.1% 1000 15,653 15,221

75k 3yr TC 17,250 17,250 0.0% 0 16,456 15,729

52k 1yr TC 15,000 14,750 1.7% 250 14,807 14,591

52k 3yr TC 15,250 15,250 0.0% 0 15,660 15,263

36k 1yr TC 13,250 13,250 0.0% 0 14,131 13,298

36k 3yr TC 14,250 14,250 0.0% 0 15,001 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

6080

100120140160180200220240

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 04/11/2014 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

Chartering

Following a fantastic week in terms of rate performance for Capes, the Dry

Bulk market managed to note another positive weekly closing, which

strongly supported the creation of better sentiment across the market. The

BDI managed to move above 1,400 points, making everyone hope that the

last quarter recovery, which everyone was longing for, has finally started.

The performance of the market this week, which has also kicked off in a

positive tone, will be crucial , as even the stabilizing of rates at these levels

will be more than most in the market have been hoping for and possibly

the catalyst for rates for the smaller size segments to start enjoying some

of the upside as well, as their stalling performance during recent weeks

have caused further worries to emerge.

The Capesize segment enjoyed firming rates across both basins, with ma-

jors being particularly active in the Pacific. The W. Australia to China route

fired up while the fronthaul ex Brazil was also very strong, allowing owners

to grab to upper hand and achieve fresh upside. Despite some slowdown

towards the end of the week expectations remain firm, while the period

market appears to be stable for the time being.

Rates for Panamaxes were also stronger especially in the Atlantic, while the

Pacific continued supporting last dones. Activity ex-ECSA continued sup-

porting Panamax rates while the period market noted gains across the

board.

Supras and Handies remained under pressure for yet another week, with

enquiry in the Pacific remaining uninspiring, while the USG region is still

weighed down by excessive tonnage in the Supra-Panamax range.

Sale & Purchase

In the Kamsarmax sector, we had the sale of the “MEDI SEN-

TOSA” (83,690dwt-blt 08, Japan), which went to Greek buyers for a price of

$ 19.5m.

In the Panamax sector we had the sale of the “SEA OF FUTURE” (76,454dwt

-blt 05, Japan), which was sold for a price of US$ 15.8m

Oct-14 Sep-14 ±% 2014 2013 2012

180k 48.0 48.0 0.0% 48.5 35.8 34.6

76K 22.0 23.0 -4.3% 25.3 21.3 22.7

56k 22.6 23.6 -4.3% 25.3 21.5 23.0

30K 18.5 19.0 -2.6% 20.0 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 3 to 4 mos - 'ROSCO MAPLE' 2010 181,453dwt

- Tianjin spot - $ 20,000/day - RGL

- 12 mos - 'ROSCO LITCHI' 2011 82,153dwt

- retro PMO 24 Oct - $ 10,000/day - EDF

Dry Market

Index $/day Index $/day Index Index

BDI 1,428 1,192 236 1,098 1,205

BCI 3,552 $25,725 2,422 $17,691 1130 45.4% 1,947 2,106

BPI 1,233 $9,883 1,121 $8,971 112 10.2% 944 1,186

BSI 892 $9,326 900 $9,412 -8 -0.9% 940 983

BHSI 467 $6,839 489 $7,153 -22 -4.4% 531 562

24/10/2014

Baltic IndicesWeek 44

31/10/2014Week 43

Point

Diff

2014 2013$/day

±%

170K 6mnt TC 19,250 19,250 0.0% 0 23,316 17,625

170K 1yr TC 17,250 17,250 0.0% 0 23,342 15,959

170K 3yr TC 15,500 15,500 0.0% 0 22,419 16,599

76K 6mnt TC 11,000 10,100 8.9% 900 12,654 12,224

76K 1yr TC 11,500 10,550 9.0% 950 12,603 10,300

76K 3yr TC 12,750 12,500 2.0% 250 13,502 10,317

55K 6mnt TC 11,250 11,000 2.3% 250 12,280 11,565

55K 1yr TC 10,250 10,500 -2.4% -250 11,899 10,234

55K 3yr TC 10,000 10,250 -2.4% -250 11,893 10,482

30K 6mnt TC 8,500 8,500 0.0% 0 9,359 8,244

30K 1yr TC 8,500 8,500 0.0% 0 9,452 8,309

30K 3yr TC 8,750 8,750 0.0% 0 9,751 8,926Han

dys

ize

Period

2013

Pan

amax

Sup

ram

ax

Week

44

Week

43

Cap

esi

ze

2014$/day ±% Diff

© Intermodal Research 04/11/2014 4

Secondhand Sales

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

SUEZ AMIN 157,985 2009HYUNDAI SAMHO

HEAVY IN, S. KoreaMAN-B&W DH RMB 324m Chinese (Xin Ye)

auction sa le in

China

MR NORD STAR 45,997 2009SHIN KURUSHIMA

ONISHI, JapanMAN-B&W Oct-14 DH $ 19.0m undisclosed

PROD/

CHEM

CRYSTAL

ATLANTICA16,631 2000

ORLANDO FRATELLI,

Ita lyWarts i la Mar-15 DH $ 9.0m

Chinese

(Sinochem)StSt

PROD/

CHEMCLIPPER LEANDER 10,098 2006 YARDIMCI, Turkey MAN-B&W Jul-15 DH $ 7.6m European

SMALL RHONE 4,581 2007 CEKSAN, Turkey MaK DH $ 7.5m US based

Tankers

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

CAPE E. R. BEILUN 178,979 2010HYUNDAI HEAVY

INDS - G, S. KoreaMAN-B&W $ 49.3m

CAPE E. R. BRAZIL 178,978 2010HYUNDAI HEAVY

INDS - G, S. KoreaMAN-B&W $ 49.3m

KMAX MEDI SENTOSA 83,690 2008SANOYAS HISHINO

MIZ'MA, JapanMAN-B&W Jan-18 $ 19.5m Greek

PMAX SEA OF FUTURE 76,454 2005TSUNEISHI CORP -

TADOT, JapanMAN-B&W Feb-15 $ 15.8m undisclosed KDIC fleet tender

SMAX DARYA BHAKTI 56,060 2005MITSUI TAMANO,

Japan MAN-B&W Feb-15

4 X 30,5t

CRANES$ 16.8m undisclosed

SMAX PAX PHOENIX 50,236 2001MITSUI TAMANO,

Japan B&W Aug-16

4 X 30t

CRANES$ 11.0m Greek

HANDY ELENI T. 27,802 1997

HUDONG

SHIPBUILDING GR,

China

B&W Aug-174 X 30t

CRANES$ 5.3m Singaporean auction in Durban

HANDY NESTOR 27,407 1997

HUDONG

SHIPBUILDING GR,

China

B&W Jan-174 X 30t

CRANES$ 4.9m undisclosed auction in Pi raeus

HANDY TAN BINH 69 24,838 1999SHIKOKU

DOCKYARD, B&W

4 X 30t

CRANES$ 6.6m Chinese

HANDY EVER REGAL 23,468 1998TSUNEISHI HEAVY

CEBU, Phi l ippinesMAN-B&W Apr-18

4 X 30t

CRANES$ 5.8m Chinese

Chinese

(Sinotrans

Shipping)

TCB to sel lers

Bulk Carriers

© Intermodal Research 04/11/2014 5

Secondhand Sales

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

LPG NORGAS NAPA 10,790 2003

HUDONG-

ZHONGHUA

SHIPBU, China

MAN 10,208 $ 27.0mCanadian

(Teekay LNG)5 yrs bearboat

Gas/LPG/LNG

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

KARTINI 10,102 2003SHIN KOCHI,

JapanB&W

2 X 30,7t

CRS,1 X 30t

DRS

$ 3.5m S. Korean

MPP/General Cargo

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

FEEDER SANUKI 1,157 1997SHIN KOCHI,

JapanMitsubishi Feb-17

2 X 40t

CRANES$ 5.1m Asian

Containers

© Intermodal Research 04/11/2014 6

Things on the newbuilding front remained very quiet this past week, with very few orders being reported, while prices show no intention of moving either direction in the short term. Despite the fact that this is one of the very rare times during the year that the freight market performance of both tank-ers and dry bulkers looks more than promising, it seems that the most own-ers are not yet ready to revisit the prospect of ordering, or they need more time of improved rates before they do so. At the same time, the tanker sec-tor remains much more popular compared to the dry bulker one, possibly showing more faith in the longer term fundamentals of the market or simply revealing the weight that a much healthier orderbook can have on the deci-sion to invest in shipping today and while excess supply of tonnage still re-mains the main industry worry.

In terms of recently rumored deals, Transport Recovery Fund has placed an order for two firm plus two optional Suezmax tankers (157,500dwt) at New Times, in China, for a price of USD 60.0m each and delivery set in 2016.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

44

Week

43±% 2014 2013 2012

Capesize 180k 55.0 55.0 0.0% 56.1 49 47

Kamsarmax 82k 30.5 30.5 0.0% 30.4 27 28

Panamax 77k 29.5 29.5 0.0% 29.2 26 27

Ultramax 63k 27.5 27.5 0.0% 27 25 25

Handysize 38k 23.0 23.0 0.0% 23 21 22

VLCC 300k 98.0 98.0 0.0% 98.8 91 96

Suezmax 160k 66.0 66.0 0.0% 65 56 58

Aframax 115k 54.0 54.0 0.0% 54 48 50

LR1 75k 46.5 46.5 0.0% 45.9 41 42

MR 50k 37.0 37.0 0.0% 36.9 34 34

186.0 186.0 0.0% 185.8 185 186

79.0 79.0 0.0% 78.3 71 71

68.5 68.5 0.0% 66.6 63 62

45.5 45.5 0.0% 44.0 41 44

Vessel

Indicative Newbuilding Prices (million$)

Bu

lke

rsTa

nke

rs

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

10

30

50

70

90

110

mil

lion

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2+2 Tanker 157,500 dwt New Times, China 2016 Transport Recovery Fund $ 60.0m

4+2 Tanker 74,000 dwt Sungdong, S. Korea 2016-2017 Greek (TEN) $ 47.0m

2 Tanker 50,000 dwt Japanese yard 2015-2016 Japanese (Mitsui OSK) undisclosedmethanol powered

methanol carriers

2+2 Container 2,700 teu Zhejiang Ouhua, Chinastarting

2017HK based (Tribini Capital) undisclosed

2 Gas 174,000 cbm Daewoo, S. Korea 2017Norwegian (Fredriksen

Group)$ 205.0m

2 Gas 174,000 cbm Samsung, S. Korea 2017 S. Korean (SK Shipping) $ 207.0m

Newbuilding Orders Size

© Intermodal Research 04/11/2014 7

The demolition market remains under significant pressure, with cheap Chi-nese scrap steel weighing down heavily on any attempts for a positive rever-sal. Most breakers across the Indian sub-Continent are in a wait and see mode, as there is no reason for them to commit to current levels, with the market softening as fast as it does. As a result, both volume and prices have taken a big hit this past week, while those sales that are being reported at levels a lot higher than the market average, are deals concluded much earlier on. Some are hopeful that the volume of imported steel by China might start facing restrictions in the future, which could well be the case if some sort of import tax is applied. If this scenario materializes, market fundamentals could well support a price recovery, as the reality is that the performance of the Indian Rupee has stabilized a lot and steel demand remains at satisfacto-ry levels across all demo markets despite recent doldrums. Average prices this week for wet tonnage were at around 300-485$/ldt and dry units re-ceived about 280-465$/ldt.

One of the highest prices amongst recently reported deals, was that paid by Bangladeshi breakers for the container vessel ‘SITC KEELUNG’ (12,713dwt-5,103ldt-blt 94), which received a firm price of $ 505/ldt.

Demolition Market

Week

44

Week

43±% 2013 2012 2011

Bangladesh 475 480 -1.0% 422 440 523

India 470 475 -1.1% 426 445 511

Pakistan 485 490 -1.0% 423 444 504

China 300 300 0.0% 365 384 451

Bangladesh 460 465 -1.1% 402 414 498

India 445 450 -1.1% 405 419 484

Pakistan 465 470 -1.1% 401 416 477

China 280 280 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

EVER REACH 46,600 21,794 1994 ONOMICHI, Japan CONT $ 468/Ldt Bangladeshi

MARIE 35,230 9,909 1999SZCZECINSKA PORTA

HOLD, PolandGC $ 505/Ldt Indian

SITC KEELUNG 12,713 5,103 1994SZCZECINSKA

STOCZNIA S, PolandCONT $ 505/Ldt Bangladeshi

BRIGHT 11,301 2,877 1981 TAIHEI AKITSU, GC $ 450/Ldt Bangladeshi

ORAPIN 2 2,764 1,073 1981 KISHIMOTO KINOE, TANKER $ 450/Ldt Indian

Demolition Sales

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

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr Ms. Eva Tzima | e.tzima@intermodal.gr

Finance News

“Rickmers Maritime loses $53.02m

Over $60m in writedowns sent Rickmers Maritime deep into the red in the third quarter.

The Singapore-listed Trust reported a $53.02m deficit for the quarter as a result of the one off items.

Rickmers explains a $44.4m impairment was taken due to the reduced value of six vessels, with a further $18.6m provision recorded as a goodwill measure.

The Trust stresses it would have booked a quarterly gain of $10.0m if it had not carried the exceptional items, a figure that would have marked a fall from the $13.09m profit at this stage in 2013.

Rickmers Maritime saw quarterly revenue fall by one tenth due to charter renewals at lower rates, while operating costs increased by 4% and financial costs escalated by 6%.

It says a significant number of large newbuildings are set to arrive in 2015, meaning the structural oversup-ply issues of the market will persist despite higher scrapping.

“The charter market for modern panamax vessels has seen a gradual improvement in recent months. Alt-hough the trend could be subject to seasonal weak-ening towards the end of the year, the gradual recov-ery of time charter rates is expected to continue in 2015,” its quarterly report added” (Trade Winds)

Commodities & Ship Finance

31-Oct-14 30-Oct-14 29-Oct-14 28-Oct-14 27-Oct-14W-O-W

Change %

10year US Bond 2.340 2.310 2.320 2.280 2.260 3.1%

S&P 500 2,018.05 1,994.65 1,982.30 1,985.05 1,961.63 2.7%

Nasdaq 4,630.74 4,566.14 4,549.23 4,564.29 4,485.93 3.3%

Dow Jones 17,390.52 17,195.42 16,974.31 17,005.75 16,817.94 3.5%

FTSE 100 6,546.50 6,463.60 6,453.90 6,402.20 6,363.50 2.5%

FTSE All-Share UK 3,503.46 3,458.91 3,452.52 3,425.41 3,405.27 2.5%

CAC40 4,233.09 4,141.24 4,110.64 4,112.67 4,096.74 2.5%

Xetra Dax 9,326.87 9,114.84 9,082.81 9,068.19 8,902.61 4.8%

Nikkei 16,413.76 15,658.20 15,553.91 15,329.91 15,388.72 7.3%

Hang Seng 23,998.06 23,702.04 23,819.87 23,520.36 23,143.23 3.0%

DJ US Maritime 362.98 354.74 367.77 367.71 361.67 -1.2%

$ / € 1.26 1.26 1.27 1.27 1.27 -0.7%

$ / ₤ 1.60 1.60 1.61 1.61 1.61 -0.5%

¥ / $ 111.44 109.04 108.27 108.00 107.86 3.2%

$ / NoK 0.15 0.15 0.15 0.15 0.15 -2.7%

Yuan / $ 6.13 6.12 6.12 6.12 6.12 0.0%

Won / $ 1,065.86 1,052.61 1,047.94 1,049.55 1,054.56 0.9%

$ INDEX 93.20 92.00 91.20 91.30 91.50 1.6%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,190

1,200

1,210

1,220

1,230

1,240

1,250

70

75

80

85

90

95

100

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

31-Oct-14 24-Oct-14W-O-W

Change %

Rotterdam 733.5 718.0 2.2%

Houston 845.0 843.0 0.2%

Singapore 732.0 719.0 1.8%

Rotterdam 466.5 451.0 3.4%

Houston 460.0 455.0 1.1%

Singapore 479.0 468.0 2.4%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 31-Oct-14 24-Oct-14

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 8.45 8.25 2.4%

BALTIC TRADING NYSE USD 3.75 3.79 -1.1%

BOX SHIPS INC NYSE USD 1.08 1.12 -3.6%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 9.23 9.42 -2.0%

COSTAMARE INC NYSE USD 20.57 19.85 3.6%

DANAOS CORPORATION NYSE USD 5.48 4.49 22.0%

DIANA SHIPPING NYSE USD 8.45 8.66 -2.4%

DRYSHIPS INC NASDAQ USD 1.48 1.52 -2.6%

EAGLE BULK SHIPPING NASDAQ USD 16.19 16.16 0.2%

EUROSEAS LTD. NASDAQ USD 1.05 1.02 2.9%

FREESEAS INC NASDAQ USD 0.16 0.20 -20.0%

GLOBUS MARITIME LIMITED NASDAQ USD 3.20 3.11 2.9%

GOLDENPORT HOLDINGS INC LONDON GBX 286.00 297.00 -3.7%

HELLENIC CARRIERS LIMITED LONDON GBX 32.20 32.15 0.2%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.17 2.71 17.0%

NAVIOS MARITIME HOLDINGS NYSE USD 5.89 5.55 6.1%

NAVIOS MARITIME PARTNERS LP NYSE USD 16.16 16.45 -1.8%

PARAGON SHIPPING INC. NYSE USD 3.65 3.55 2.8%

SAFE BULKERS INC NYSE USD 5.34 5.47 -2.4%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.42 1.36 4.4%

STAR BULK CARRIERS CORP NASDAQ USD 10.32 10.19 1.3%

STEALTHGAS INC NASDAQ USD 8.40 8.33 0.8%

TSAKOS ENERGY NAVIGATION NYSE USD 6.77 6.52 3.8%

TOP SHIPS INC NASDAQ USD 1.86 1.65 12.7%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

04/11/2014

Select Price in US$

Weekly Publications

Weekly Market Report Annual Subscription □ Free

Monthly Publications

Shipping Monthly Recap - free summary Annual Subscription - 12 issues □ Free version

Shipping Monthly Recap - full report Annual Subscription - 12 issues □ $ 1,000

Your Contact Details

Full Name: Title:

Company: Position:

Address:

Country: Post code:

E-mail: Telephone:

Company Website: Fax:

Name and address to appear on invoice (if different from above):

□ I will be paying by bank transfer (please contact us for our bank details)

You can contact us directly by phone or by e-mailing, faxing or posting the

below form completed with all your details:

Tel: +30 210 6293 300

Fax:+30 210 6293 333-4

Email: research@intermodal.gr

Intermodal Shipbrokers Co.

17th km Ethniki Odos Athens-Lamia & 3 Agrambelis street,

145 64 N.Kifisia,

Athens - Greece