Market insight By Linos-Alexandros Kogevinas

Marketing—Harbour Towage & Port Agency

Cotzias Intermodal Shipping Inc.

Effects of the Chinese stock market crisis

All evidence is currently signaling that the Chinese stock market will be the newest hurdle for the global economy. With the world's second largest economy's stock market facing massive problems over the past six weeks, the Chinese government has taken various measures (including pouring almost half a trillion USD via state-owned financing entities and suspending IPOs) in an effort to stabilize the current situation.

However Monday's drop of ~8.5%, the largest drop recorded since February 2007, with commodity companies and consumer firms having felt the brunt of the decline, shows that these measures have been lackluster at best or that the problem is that much larger than expected; both equally problem-atic conclusions. Various researchers are now predicting further substantial drops in the coming weeks. This has fueled worries concerning the growth prospects of the Chinese economy which, given its influence on shipping via imports/exports, is sure to be felt by shipowners globally.

The June 12th peak signaled the start of a decline which has no visible bottom. The rout has to date wiped out almost four trillion USD in market value and while corrective measures did result in a +12% rally, the stock market has slumped once again, making this positive correction rather short. While the Chinese government has committed to stabilizing the situation, investor confidence is currently being shattered, as correctional actions have been largely ineffective, which is exacerbating the problem. With no certain idea of when, or indeed how, the situation might be stabilized, this is certain to have an adverse effect on the wavering Chinese economy as a whole.

China's economy has been slowing down for quite a while. As a result, growth prospects are being revised to lower levels, which should also have a major effect on imports / exports specifically in regards to crude oil/refined petroleum, iron ore, steel and soybeans. The various shipping routes to Chi-na are sure to feel the pressure on their respective freight rates. This could very well push various shipowners to choose different trading routes at less-than-desirable levels in order to compensate.

With the dry bulk market currently enjoying some long awaited improve-ments on rates, this upset could yet again drive down dry market freight rates (especially for capes which have shown s substantial rebound over the past few weeks).

One of the very ,very few certainties regarding the Chinese stock market situation is that the current volatility of the market is sure to persist until we see some stabilization on macro data and/or corporate earnings. The coming months will almost certainly bring wild swings in stock values and, until con-fidence is restored and stability is reached, the effects of the stock market crash on the Chinese economy will not slow down.

It remains to be seen whether Chinese policy makers will be able to mini-mize the damage or if the issue spirals out of their control. Whichever it is, it seems that the ride ahead remains bumpy.

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

The BDI noted another weekly increase mainly fueled by Capes, while things slowed down a bit just before the weekend. The BDI closed today (28/07/2015) at 1,094 points, up by 4 points compared to Monday’s levels (20/07/2015) and a decrease of 19 points compared to previous Tuesday’s closing (21/07/2015). The crude carriers market noted small declines for a second week in a row, while positive remains strong none-theless. The BDTI Monday (27/07/2015) was at 792 points, a decrease of 67 points and the BCTI at 740, a decrease of 95 points compared to pre-vious Monday’s (20/07/2015) levels.

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

Activity in the SnP market slowed down a bit compared to the week prior, while despite the peaking of the summer season, owners across all sectors remain active, with crude carriers proving the most popular candidates. On the tanker side, we had the sale of the “BARNES” (298,306dwt-blt 96, S. Korea) which was sold to Hong Kong based buy-ers for $19.8m. On the dry bulker side, we had the sale of the “NORD RELIABLE” (58,787dwt-blt 08, Philippines), which was sold to Greek own-er, Sea World, for a price in the region of $13.5m.

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

Given the anaemic volumes of ordering of the past months, as well as the fact that we are now at the peak of the summer season, the number of last week’s freshly reported orders was definitely eye catching. Tank-er orders, which unsurprisingly continue to make up the majority of new deals coming to light, were for yet another week ample, while Scorpio’s impressive MR order in Hyundai, could be well marking the turning point as far as newbuilding activity in the segment is concerned. Let’s not forget that following the ordering frenzy during 2013, newbuilding interest for MRs fell sharply, as expectations in regards to prospects for the size were largely not met. After more than six months of continuous-ly healthy earnings, it seems that owners now slowly start believing once again in the segment’s potential and we could soon be seeing more orders surfacing. In terms of recently reported deals Greek owner, Finnish owner, Lundqvist Rederierna has placed an order for one firm Aframax (112,000dwt) at Sumitomo, in Japan, for a price in the region of $52.0m each and delivery set in 2018.

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

Amidst exceptionally thin activity, plummeting prices and fears of things getting even worse going forward, the demolition market spent yet an-other week in desperate search of positive signs that could support sen-timent. The Indian subcontinent market has seen another $15-20/ldt being shed of local bids, while in some cases the discounts were even bigger, scaring away the few potential sellers left in the market. Where does it stop? This seems to be the question on everyone’s mind right now, especially as the end of the Eid holidays seem to have brought no change of appetite in either Bangladesh or Pakistan. Indian breakers have at the same time stayed on the sidelines for yet another week, with predictions for heavy rains in the following weeks and a weak Ru-pee adding to the already negative sentiment. Cheap Chinese steel ex-ports remains the main market hurdle that is weighing down on any efforts for a positive market reversal, while the fact that the rebound in dry bulk rates has severely hit the supply of tonnage, is viewed as the only price supporting factor at the moment. Prices this week for wet tonnage were at around $160-345/ldt and dry units received about $140-320/ldt.

Weekly Market Report

Issue: Week 30 | Tuesday 28th July 2015

© Intermodal Research 28/07/2015 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 73 78,991 82.5 93,038 -15.1% 30,469 21,133

280k MEG-USG 42 58,485 45 66,879 -12.6% 17,173 7,132

260k WAF-USG 75 80,269 85 92,081 -12.8% 40,541 26,890

130k MED-MED 75 38,096 80 42,110 -9.5% 30,950 17,714

130k WAF-USAC 73 33,055 72.5 31,971 3.4% 24,835 13,756

130k BSEA-MED 77 41,189 77.5 43,031 -4.3% 30,950 17,714

80k MEG-EAST 120 37,236 132.5 41,433 -10.1% 19,956 11,945

80k MED-MED 105 34,727 80 22,594 53.7% 28,344 13,622

80k UKC-UKC 95 27,110 100 30,876 -12.2% 33,573 18,604

70k CARIBS-USG 115 31,083 112.5 29,814 4.3% 25,747 16,381

75k MEG-JAPAN 155 49,808 162.5 60,012 -17.0% 16,797 12,011

55k MEG-JAPAN 172 43,402 170 42,675 1.7% 14,461 12,117

37K UKC-USAC 165 24,341 205 32,439 -25.0% 10,689 11,048

30K MED-MED 165 24,830 200 34,116 -27.2% 18,707 17,645

55K UKC-USG 135 30,138 145 33,293 -9.5% 23,723 14,941

55K MED-USG 135 28,726 145 31,432 -8.6% 21,089 12,642

50k CARIBS-USAC 150 28,697 150 28,028 2.4% 25,521 15,083

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Vessel Routes

Week 30 Week 29$/day

±%

Jul-15 Jun-15 ±% 2014 2013 2012

300KT DH 81.9 80.5 1.7% 73.6 56.2 62.9

150KT DH 59.9 59.0 1.5% 50.2 40.1 44.9

110KT DH 45.4 45.0 0.8% 38.6 29.2 31.2

75KT DH 36.0 35.8 0.7% 32.8 28.0 26.7

52KT DH 27.0 26.5 1.9% 27.2 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

The crude carriers market closed off last week on a softer note, with rates for VLs giving up a small portion of the significant gains achieved during the week prior, while the further fall of the price of oil, which lost more than 5% in just a few days, remained for yet another week the main catalyst shaping market sentiment. Oil, which is now traded at a four month low, lost further ground on the back of another sharp fall in the Chinese stock market and added worries of a supply glut, which ate further into investor’s confidence in regards to global demand for the commodity. The further battering of oil prices, naturally meant even cheaper bunkers as well, partly supporting TCE for tankers, while at the same time period business saw improved levels of activity.

The VL market slid quietly into the weekend, with charterers in the Middle East being less active compared to the first half of the month. The West Africa market was equally quiet especially mid-week onwards, while despite this recent slowdown, sentiment for the segment remains extremely firm overall, pointing to a steady market in the following days.

The West Africa Suezmax was overall unchanged last week, while rates in the Black Sea/Med moved further south amidst limited fresh business in the region. Rates for Aframaxes displayed a mixed picture at the same time, with the cross-Med and Caribs markets improving further, while things in the North Sea remained quiet throughout the bigger part of the week.

Sale & Purchase

In the VLCC sector, we had the sale of the “BARNES” (298,306dwt-blt 96, S. Korea) which was sold to Hong Kong based buyers for $19.8m.

In the MR sector we had the sale of the “CAMILLA MAERSK” (44,999dwt-blt 99, S. Korea) which was sold to Nigerian buyers for a price in the region of $10.0m.

Wet Market

Indicative Period Charters

-12 mos - 'JING YU ZUO' 2010 75,568 dwt

- - $20,000/day - Cargill

-36 mos - 'TI HELLAS' 2005 319,300 dwt

- - $40,250/day - Petrobras

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD4 TD6 TD9

Week 30 Week 29 ±% Diff 2014 2013

300k 1yr TC 53,000 47,000 12.8% 6000 28,346 20,087

300k 3yr TC 44,500 42,500 4.7% 2000 30,383 23,594

150k 1yr TC 41,000 35,000 17.1% 6000 22,942 16,264

150k 3yr TC 35,000 33,500 4.5% 1500 24,613 18,296

110k 1yr TC 29,000 28,000 3.6% 1000 17,769 13,534

110k 3yr TC 25,000 25,000 0.0% 0 19,229 15,248

75k 1yr TC 25,000 22,000 13.6% 3000 16,135 15,221

75k 3yr TC 22,500 19,750 13.9% 2750 16,666 15,729

52k 1yr TC 20,000 19,000 5.3% 1000 14,889 14,591

52k 3yr TC 17,000 17,250 -1.4% -250 15,604 15,263

36k 1yr TC 18,000 17,500 2.9% 500 14,024 13,298

36k 3yr TC 16,500 16,250 1.5% 250 14,878 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

60

90

120

150

180

210

240

270

WS

po

ints

CLEAN - WS RATESTC1 TC2 TC5 TC6

© Intermodal Research 28/07/2015 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

The positive sentiment that the Dry Bulk market has been enjoying as of the

previous month, was carried through last week as well, but despite the fact

that the BDI managed to move closer to 1,100 points, a level last ap-

proached in December 2014, there was a strong sense towards the end of

the week that the market was running on less steam. At the same time, a

mixed picture across the different size segments was additionally placing a

limit on expectations for the market moving another substantial leg up,

something that should be more clear during this week. On the negative

side, with the performance of the Chinese stock market still being bearish

for commodities demand and with China having already added more than 3

million metric tonnes to its iron ore stockpiles in July, it will definitely be

interesting to see how long can this restocking be extended for.

Capesize enquiry was particularly strong during the first half of the week,

but things started to slow down in the Pacific just before the weekend. The

paper market remains firm, while this week has also kicked off on a sub-

stantially positive tone for the segment.

The Panamax market kept rising last week, however fresh business volumes

took a hit just before Friday with rates trending sideways. Ample business

out of East Coast South America remained the main force supporting rates.

Fresh enquiry out of the Atlantic resumed last week for the Handy/

Handymax/Supramax market, helping rates to hold around last dones,

while numbers in the Pacific were a bit off for Handysize business compared

to the week prior.

Sale & Purchase

In the Panamax sector, we had the sale of the “KANISHKA” (76,286dwt-blt 05, Japan), which was reported being sold at an auction to Far Eastern buy-ers for a price of $11.2m.

In the Supramax sector we had the sale of the “NORD RELIABLE” (58,787dwt-blt 08, Philippines), which was sold to Greek owner, Sea World, for a price in the region of $13.5m.

Jul-15 Jun-15 ±% 2014 2013 2012

180k 31.1 31.5 -1.2% 47.3 35.8 34.6

76K 17.1 17.0 0.7% 24.5 21.3 22.7

56k 14.6 14.6 0.0% 24.7 21.5 23.0

30K 13.0 13.3 -1.9% 19.5 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 4 to 6 mos - 'EVER BEST' 2013 81,717dwt

- Inchon 01/10 Aug - $ 9,300/day - Itiro

- 3 to 5 mos - 'CMB MAXIME' 2010 57,982 dwt

- PG prompt - $ 9,000/day - MUR

Dry Market

Index $/day Index $/day Index Index

BDI 1,086 1,048 38 1,097 1,205

BCI 1,896 $14,603 1,712 $13,573 184 7.6% 1,943 2,106

BPI 1,137 $9,067 1,162 $9,261 -25 -2.1% 960 1,186

BSI 899 $9,402 846 $8,844 53 6.3% 937 983

BHSI 428 $6,294 427 $6,300 1 -0.1% 522 562

17/07/2015

Baltic IndicesWeek 30

24/07/2015Week 29

Point

Diff

2014 2013$/day

±%

180K 6mnt TC 14,000 12,500 12.0% 1,500 22,020 17,625

180K 1yr TC 12,500 12,000 4.2% 500 21,921 15,959

180K 3yr TC 13,250 13,000 1.9% 250 21,097 16,599

76K 6mnt TC 9,250 9,250 0.0% 0 12,300 12,224

76K 1yr TC 8,250 8,000 3.1% 250 12,259 10,300

76K 3yr TC 8,250 8,250 0.0% 0 13,244 10,317

55K 6mnt TC 8,750 8,500 2.9% 250 12,008 11,565

55K 1yr TC 8,000 7,750 3.2% 250 11,589 10,234

55K 3yr TC 8,000 8,000 0.0% 0 11,585 10,482

30K 6mnt TC 6,750 6,750 0.0% 0 9,113 8,244

30K 1yr TC 6,750 6,750 0.0% 0 9,226 8,309

30K 3yr TC 7,000 7,000 0.0% 0 9,541 8,926Han

dys

ize

Period

2013

Pan

amax

Sup

ram

ax

Week

30

Week

29

Cap

esi

ze

2014$/day ±% Diff

© Intermodal Research 28/07/2015 4

Secondhand Sales

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

LPGNAVIGATOR

MARINER23,272 2000

MITSUI CHIBA

ICHIHARA, JapanB&W Feb-15 20,900 undisclosed Indones ian

LPG AUTEUIL 2588 1995 KITANIHON, Japan Mitsubishi Oct-15 3,444 $ 2.0mS. Korean

(E Marine Co)

Gas/LPG/LNG

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

VLCC BARNES 298,306 1996DAEWOO HEAVY

INDUSTRIE, S. KoreaSulzer Mar-11 DH $ 19.8m

Hong Kong

based

AFRANAVIG8

GLADIATOR112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRA NAVIG8 GOAL 112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRA NAVIG8 GUIDE 112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRANAVIG8

GAUNTLET112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRANAVIG8

GRATITUDE112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRANAVIG8

GALLANTRY112,300 2015

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRA NAVIG8 GUARD 112,300 2016

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

AFRA NAVIG8 GRACE 112,300 2015

GUANGZHOU

LONGXUE SHIP,

China

MAN-B&W DH

MR ALPINE MARIE 48,005 2009 IWAGI, Japan MAN-B&W Sep-19 DH $ 22.5m undisclosed

MR SIRIUS I 46,341 1996 AESA SESTAO, Spain B&W Jan-16 DH $ 7.5m undisclosed

MR CAMILLA MAERSK 44,999 1999HALLA ENG & HI -

SAMHO, S. KoreaMAN-B&W DH $ 10.0m Nigerian

Tankers

Hong Kong

based (CSSC)

incl . 10yrs BB and

repurchase option

after 4 yrs , 20%

sel lers ’ credit

en-bloc

$ 304.0m

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

SEMELA 7,071 2000PEENE-WERFT,

GermanyMaK Nov-15

2 X 150t

CRANESundisclosed

German (Harren

& Partner)

MPP/General Cargo

© Intermodal Research 28/07/2015 5

Secondhand Sales

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

CAPE CORONA BULKER 179,600 2011HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Apr-16 $ 33.6m Greek (Marmaras)

POST

PMAXWELSUCCESS 93,328 2010

JIANGSU NEW

YANGZIJIAN,

China

MAN-B&W $ 14.8m SS/DD passed

POST

PMAXWELHERO 93,328 2010

JIANGSU NEW

YANGZIJIAN,

China

MAN-B&W $ 14.4m SS/DD due

PMAX KANISHKA 76,286 2005TSUNEISHI CORP -

TADOT, JapanB&W $ 11.2m Far Eastern auction sa le

PMAX LUYANG RISING 76,243 2012YANGFAN GROUP

CO LTD, ChinaMAN-B&W Oct-17 xs $ 15.0m European

UMAXYANGZHOU

DAYANG DY21663,500 2015

YANGZHOU

DAYANG SHIPBU,

China

MAN-B&W4 X 35t

CRANESrgn $22.5m U.S. based

SMAX NORD RELIABLE 58,787 2008TSUNEISHI HEAVY

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

4 X 30t

CRANESrgn $13.5m Greek (Sea World)

HMAX SYMI 45,916 1997HALLA ENG & HI -

SAMHO, S. KoreaMAN-B&W Apr-15

4 X 30t

CRANES$ 3.5m Egyptian (Elamira)

HANDY TUPI MAIDEN 38,852 1992IHI - TOKYO,

JapanSulzer Mar-19

4 X 25t

CRANES$2.75m undisclosed

HANDY OCEAN HONEY 27,209 1995HANJIN HI CO LTD -

ULS, S. KoreaMAN-B&W Jun-15

4 X 25t

CRANES$ 3.4m Chinese

European

Bulk Carriers

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

POST

PMAX

NEDLLOYD

DRAKE5,468 2000

AKER MTW,

GermanySulzer $ 14.8m

Greek (Poseidon

Containers)

SUB

PMAX

GUANGZHOU

WENCHONG

GWS448

2,500 2015

GUANGZHOU

WENCHONG SHI,

China

MAN-B&W $ 36.5m Danish

FEEDERHEUNG-A

BANGKOK650 1995

HANJIN HI CO LTD

- BUS, S. KoreaB&W $ 4.0m

FEEDERHEUNG-A

HONGKONG650 1995

HANJIN HI CO LTD

- BUS, S. KoreaB&W $ 4.0m

FEEDER BF VALENCIA 508 1996SIETAS KG,

GermanyMaK undisclosed undisclosed

Malaysian

Containers

© Intermodal Research 28/07/2015 6

Given the anaemic volumes of ordering of the past months, as well as the fact that we are now at the peak of the summer season, the number of last week’s freshly reported orders was definitely eye catching. Tanker orders, which unsurprisingly continue to make up the majority of new deals coming to light, were for yet another week ample, while Scorpio’s impressive MR order in Hyundai, could be well marking the turning point as far as newbuild-ing activity in the segment is concerned. Let’s not forget that following the ordering frenzy during 2013, newbuilding interest for MRs fell sharply, as expectations in regards to prospects for the size were largely not met. After more than six months of continuously healthy earnings, it seems that owners now slowly start believing once again in the segment’s potential and we could soon be seeing more orders surfacing.

In terms of recently reported deals Finnish owner, Lundqvist Rederierna has placed an order for one firm Aframax (112,000dwt) at Sumitomo, in Japan, for a price in the region of $52.0m each and delivery set in 2018.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

30

Week

29±% 2014 2013 2012

Capesize 180k 49.0 49.0 0.0% 55.8 49 47

Kamsarmax 82k 27.5 27.5 0.0% 30.4 27 28

Panamax 77k 26.5 26.5 0.0% 29.2 26 27

Ultramax 63k 25.0 25.0 0.0% 27 25 25

Handysize 38k 21.5 21.5 0.0% 23 21 22

VLCC 300k 95.5 95.5 0.0% 98.6 91 96

Suezmax 160k 64.5 64.5 0.0% 65 56 58

Aframax 115k 53.0 53.0 0.0% 54 48 50

LR1 75k 46.0 46.0 0.0% 45.9 41 42

MR 50k 36.5 36.5 0.0% 36.9 34 34

190.0 190.0 0.0% 186.0 185 186

77.0 77.0 0.0% 78.4 71 71

68.0 68.0 0.0% 66.9 63 62

45.5 45.5 0.0% 44.3 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

1 Tanker 112,000 dwt Sumitomo, Japan 2018Finnish (Lundqvist

Rederierna)$ 52.0m option

1 Tanker 73,500 dwtSTX Shipbuilding, S.

Korea2017 Greek (Pleiades) $ 46.0m LR1, option

2+2+2+2 Tanker 50,000 dwtHyundai Mipo, S.

Korea- Italian (Scorpio Tankers) $ 35.0m

2+2+2+2 Tanker 37,000 dwtHyundai Mipo, S.

Korea- Italian (Scorpio Tankers) $ 32.5m

1 MPP 13,000 dwtEstaleiro Vitoria,

Brazil2016 Brazilian (Posidonia Shpg) $ 17.0m

4+2 MPP 13,000 dwtHudong Zhonghua,

China2017 $ 40.0m

2+2 MPP 13,000 dwtHudong Wenchong,

China2017 $ 40.0m

4+2+2 Container 2,250 teu Yangfan, China 2016 Dutch (Seatrade Groningen) $ 32.0m

2 Cruise 180,000 GT Meyer Turku, Finland 2019-2002 Carnival Group undisclosed LNG powered

Newbuilding Orders Size

Chinese (CSSC Leasing)Heavy-lift, incl. T/C to

Intermarine Inc.

© Intermodal Research 28/07/2015 7

Amidst exceptionally thin activity, plummeting prices and fears of things getting even worse going forward, the demolition market spent yet another week in desperate search of positive signs that could support sentiment. The Indian subcontinent market has seen another $15-20/ldt being shed of local bids, while in some cases the discounts were even bigger, scaring away the few potential sellers left in the market. Where does it stop? This seems to be the question on everyone’s mind right now, especially as the end of the Eid holidays seem to have brought no change of appetite in either Bangladesh or Pakistan. Indian breakers have at the same time stayed on the sidelines for yet another week, with predictions for heavy rains in the following weeks and a weak Rupee adding to the already negative sentiment. Cheap Chinese steel exports remains the main market hurdle that is weighing down on any efforts for a positive market reversal, while the fact that the rebound in dry bulk rates has severely hit the supply of tonnage, is viewed as the only price supporting factor at the moment. Prices this week for wet tonnage were at around $160-345/ldt and dry units received about $140-320/ldt.

The only price surfacing amongst recently reported deals, was that paid by Bangladeshi breakers for the small tanker “VIVA” (1,439dwt-772ldt-blt 82), which received $305/ldt.

Demolition Market

Week

30

Week

29±% 2014 2013 2012

Bangladesh 335 355 -5.6% 469 422 441

India 340 355 -4.2% 478 426 445

Pakistan 345 355 -2.8% 471 423 444

China 160 190 -15.8% 313 365 384

Bangladesh 310 330 -6.1% 451 402 415

India 315 330 -4.5% 459 405 419

Pakistan 320 330 -3.0% 449 401 416

China 140 170 -17.6% 297 350 365

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

150

250

350

450

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

150

250

350

450

550

$/ld

t

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

ISA DELTA 41,061 - 1984SANOYAS CORP,

JapanBULKER undisclosed Bangladeshi

HUASTECO 38,940 22,772 1960MITSUBISHI NIPPON

Y, JapanOFFSH undisclosed Indian

WILSON MARIN 5,845 2,290 1978 LUERSSEN, Germany BULKER undisclosed Turkish

VIVA 1,439 772 1982 KANMON, Japan TANKER $ 305/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 Ms. Eva Tzima | e.tzima@intermodal.gr

Mr. Vassilis Logothetis | v.logothetis@intermodal.gr

Finance News

“Precious readies notes issue

Khalid Hashim’s Precious Shipping is lining up a po-tential SGD 500m ($365.67m) notes issue.

The Thai owner has drafted BNP Paribas to lead the multi-currency notes project, with the bank taking on purchase obligations.

While no issue has yet taken place, the bulker owner says any future cash raised will go towards refinanc-ing, funding its capital expenditure requirements and further expansion.

In a statement today the shipowner did not say when the notes would be issued, with the timing to be de-termined by market conditions. Precious has 40 bulk-ers on the water and a 27 strong newbuilding pro-gramme.” (Andy Pierce, Trade Winds)

Commodities & Ship Finance

24-Jul-15 23-Jul-15 22-Jul-15 21-Jul-15 20-Jul-15W-O-W

Change %

10year US Bond 2.270 2.280 2.330 2.350 2.380 -3.0%

S&P 500 2,079.65 2,102.15 2,114.15 2,119.21 2,128.28 -2.2%

Nasdaq 5,088.63 5,146.41 5,171.77 5,208.12 5,218.86 -2.3%

Dow Jones 17,568.53 17,731.92 17,851.04 17,919.29 18,100.41 -2.9%

FTSE 100 6,579.81 6,655.01 6,667.34 6,769.07 6,788.69 -2.9%

FTSE All-Share UK 3,595.91 3,633.40 3,639.52 3,687.94 3,697.47 -2.6%

CAC40 5,057.36 5,086.74 5,082.57 5,106.57 5,142.49 -1.3%

Xetra Dax 11,347.45 11,512.11 11,520.67 11,604.80 11,735.72 -3.3%

Nikkei 20,544.53 20,683.95 20,593.67 20,841.97 20,650.92 -0.5%

Hang Seng 25,128.51 25,398.85 25,282.62 25,536.43 25,404.81 -1.1%

DJ US Maritime 238.41 242.51 246.26 248.52 246.94 -4.3%

$ / € 1.10 1.10 1.09 1.09 1.08 1.3%

$ / ₤ 1.55 1.55 1.56 1.56 1.56 -0.6%

¥ / $ 123.81 123.89 124.08 123.87 124.30 -0.2%

$ / NoK 0.12 0.12 0.12 0.12 0.12 -0.5%

Yuan / $ 6.21 6.21 6.21 6.21 6.21 0.0%

Won / $ 1,171.40 1,162.55 1,157.80 1,148.95 1,156.60 1.8%

$ INDEX 88.47 88.32 88.34 88.19 88.68 -0.1%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

40

45

50

55

60

65

70

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

24-Jul-15 17-Jul-15W-O-W

Change %

Rotterdam 468.0 486.5 -3.8%

Houston 516.5 539.0 -4.2%

Singapore 457.0 485.5 -5.9%

Rotterdam 282.0 295.5 -4.6%

Houston 292.5 300.5 -2.7%

Singapore 301.0 310.5 -3.1%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 24-Jul-15 17-Jul-15

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 11.57 12.18 -5.0%

BOX SHIPS INC NYSE USD 0.87 0.96 -9.4%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.97 7.70 3.5%

COSTAMARE INC NYSE USD 17.56 18.50 -5.1%

DANAOS CORPORATION NYSE USD 6.09 5.86 3.9%

DIANA SHIPPING NYSE USD 7.51 8.11 -7.4%

DRYSHIPS INC NASDAQ USD 0.55 0.68 -19.1%

EAGLE BULK SHIPPING NASDAQ USD 8.19 8.71 -6.0%

EUROSEAS LTD. NASDAQ USD 6.67 0.75 789.3%

FREESEAS INC NASDAQ USD 1.36 2.20 -38.2%

GLOBUS MARITIME LIMITED NASDAQ USD 1.35 1.50 -10.0%

GOLDENPORT HOLDINGS INC LONDON GBX 139.75 130.00 7.5%

HELLENIC CARRIERS LIMITED LONDON GBX 19.00 21.56 -11.9%

NAVIOS MARITIME ACQUISITIONS NYSE USD 4.07 4.33 -6.0%

NAVIOS MARITIME HOLDINGS NYSE USD 3.94 4.33 -9.0%

NAVIOS MARITIME PARTNERS LP NYSE USD 10.27 11.04 -7.0%

PARAGON SHIPPING INC. NYSE USD 1.08 1.15 -6.1%

SAFE BULKERS INC NYSE USD 3.53 3.89 -9.3%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.00 1.35 -25.9%

STAR BULK CARRIERS CORP NASDAQ USD 3.01 3.29 -8.5%

STEALTHGAS INC NASDAQ USD 5.77 5.98 -3.5%

TSAKOS ENERGY NAVIGATION NYSE USD 9.44 10.01 -5.7%

TOP SHIPS INC NASDAQ USD 1.15 1.26 -8.7%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

28/07/2015

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