Weekly Market Report

Issue: Week 9 | Tuesday 7th March 2017

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

And up we go! The dry bulk market kept enjoying strong momentum last
By Timos Papadimitriou week, with earnings for Panamaxes substantially outperforming the rest
SnP Broker of the market. The BDI closed today (07/03/2017) at 859 points, up by
54 points compared to yesterday’s levels (06/03/2017) and increased by
So what's all the fuss about? During the past five months SnP activity has 174 points when compared to previous Tuesday’s closing (28/02/2017).
being surging exponentially in the dry bulk sector. Buyers are looking to get Rates in the crude carriers market lacked clear direction for yet another
their hands on any size within a big range of modern tonnage varying from week, while the Middle East market started becoming busier before the
small Handies to Newcastlemaxes. weekend. The BDTI on Monday (06/03/2017) was at 838, increased by 3
points and the BCTI at 617, an increase of 16 points compared to prior
Even if prices are more than 25% higher now than what they were eight Monday’s (27/02/2017) levels.
months ago, modern ships are still relatively cheap. A good example is the Sale & Purchase (Wet: Firm+ / Dry: Firm+)
“Billion Trader I”(82kdwt blt 07 Tsuneishi, Japan) and the “Billion Trader
“Get them while you can still afford them!” SnP activity in the Dry Bulk
II” (82kdwt blt 07 Tsuneishi, Japan), two sister ships reported sold eight
market continues to see impressive volumes, with second hand prices
months apart. The “Billion Trader I” was sold USD 9.5 million in June 2016
for modern vessels quickly increasing on the back of very strong compe-
and the “Billion Trader II” was sold in February 2017, 3 million more. Still
tition among interested Buyers. On the tanker side we had the sale of
USD 12,5 million for a 10-year old Japanese Kamsarmax is a lot cheaper com-
the “DHT ANN” (309,327dwt-blt 01, S. Korea), which was sold to Indone-
pared to the USD 21,5 million the ex- “Million Trader II” (76kdwt blt 04 Tsu-
sian owner, Bumi, for a price in the region of $21.0m. On the dry bulker
neishi, Japan )was sold at three years ago in February 2014.
side, we had the sale of the “ALESSANDRO VOLTA” (76,806dwt-blt 05,
Yes, the freight market today provides much more confidence compared to Japan), which was sold to Greek buyers, for a price in the region of
last year, but the reason Principals are going after tonnage with such a huge $9.8m.
appetite is because they are seeing the bigger picture, which is not ugly any- Newbuilding (Wet: Stable - / Dry: Stable -)
more. The signs that we are heading towards a healthier dry bulk market are
clearly visible and improving fundamentals are in place. Actually they have Recent newbuilding activity reveals signs of life in the troubled industry,
been in place for some time now and we had been discussing them in the with rumours in regards to a substantial Capesize order with big option-
past but the rock- bottom hire rates of late-2015 and early-2016 made it ality gathering most of the interest. With the sector only recently having
impossible for most to take notice. started to enjoy a steadier freight market, signs of a rebound in ordering
is certainly not the most desired development at this stage and while it
Now the diminishing order-book, the implementation of regulations and a is indeed too early to say whether this could be the beginning of a trend,
steady demand for transportation of cargo provide the necessary confidence the sharp rise in prices of modern vessels since the beginning of the year
for buyers to invest. On top of these factors we have to add the scarcity of could soon make a good argument for ordering instead of investing in
finance for NB orders. In the recent past a number of banks that were the second-hand market. Additionally, despite the overpublicized lack of
known for providing shipping finance have either reduced their portfolio or finance, the reality is that owners who desire to opt for a dry bulk new-
exited the industry all together. The financial institutions that took over building vessel can still get access to finance with the help of shipbuild-
these portfolios are very cautious and seem to have learnt by the past mis- ers in the Far East and let’s not forget the growing role of Chinese leas-
takes of their peers. So far they are demonstrating a selective resistance in ing companies. Having said that, it will be interesting to see how dry
backing new orders for bulk carriers. bulk owners behave in regards to new orders in the following months.
Of course the way the second hand market is heading, we won’t be sur- Hopefully with some sense. In terms of recently reported deals, Greek
prised if sooner rather than later NB slots will make more sense than ships in owner, Dryships, has exercised the second out of the four options, for a
the water. But the problem will not be the controlled and strategic orders VLGC (78,700 cbm) at Hyundai HI, S, Korea for a price of $83.5m and
from established owners with years of experience in shipping. The key (or delivery set in September this year.
the challenge) will be to avoid big orders similar to those witnessed five Demolition (Wet: Firm + / Dry: Firm +)
years ago. If the ordering stays in check for the next four years then we are
certainly heading towards better days. This rally has serious legs! Prices in the demolition market firmed sub-
stantially last week, further extending the strong momentum the market
The skeptics keep saying that moving on speculation is not wise but the has been enjoying for more than two consecutive months. Hungry cash
truth is that this time buyers are taking educated risks backed by facts and buyers proved to have extremely deep pockets last week, during which
not plain “gut” feeling or speculative decisions. a few sales were done at very impressive levels. Whether those prices
So the fuss is not about having to invest now because the market is booming are the result of a self-fulfilling prophecy in the form of competition and
and returns are exceptional. The fuss is that for the first time since 2008 speculation among buyers or improving fundamentals has been the
things are promising and that numbers back that promise. Again you don't question in everyone’s mind. Saying that, the fact that scrap steel prices
have to invest, but why wouldn't you? The next question is; how long this in China have been also moving up in sync with demo prices, means that
window will remain open? That is yet to be seen. Grain season is on its way despite the degree to which excitement is responsible for this price rally,
and freight rates should rise, which logically will also result in even higher market fundamentals have been also strengthening, given that cheap
asset prices. We have to see how the market will react and if Buyers will Chinese steel exports were crippling prices in the past couple of years.
take a step back or continue to pursuit opportunities in the second-hand Average prices this week for tankers were at around 270-350 $/ldt and
market. dry bulk units received about 260-330 $/ldt.
 Tanker Market
Spot Rates Indicative Period Charters
Week 9 Week 8 2016 2015
$/day - 12 mos - 'VIC.VENTURE' 2017 115,000 dwt
Vessel Routes WS WS
$/day $/day ±% $/day $/day - - $18,250/day - Navig8
points points
265k MEG-JAPAN 60 22,068 70 31,401 -29.7% 41,068 65,906 - 5 to 9 mos - 'FPMC 22' 2010 50,997 dwt
VLCC

280k MEG-USG 30 4,653 32 8,062 -42.3% 44,269 49,575 - - $11,500/day - Vitoil

260k WAF-USG 65 28,708 75 36,602 -21.6% 53,995 76,251
130k MED-MED 77 11,397 75 10,248 11.2% 29,930 50,337
Suezmax

TD3 TD6 TD9 DIRTY - WS RATES

130k WAF-USAC 82 17,782 80 15,273 16.4% 23,591 40,490 520
470
130k BSEA-MED 82 13,762 80 12,327 11.6% 29,930 50,337 420
80k MEG-EAST 115 14,089 115 13,393 5.2% 20,111 34,131 370

WS poi nts
320
Aframax

80k MED-MED 117 18,595 110 16,603 12.0% 20,684 37,127 270
80k UKC-UKC 100 11,827 105 14,743 -19.8% 26,526 39,338 220
170
70k CARIBS-USG 140 18,150 148 20,126 -9.8% 20,501 36,519 120
70
75k MEG-JAPAN 105 9,682 115 11,547 -16.2% 16,480 30,482 20
Clean

55k MEG-JAPAN 115 8,637 120 9,111 -5.2% 12,891 24,854

37K UKC-USAC 140 8,650 130 7,090 22.0% 10,622 19,973
30K MED-MED 145 5,054 142 4,800 5.3% 9,056 24,473
55K UKC-USG 120 8,997 125 10,953 -17.9% 15,726 27,228
TC1 TC2 TC5 TC6 CLEAN - WS RATES
Dirty

55K MED-USG 120 9,190 120 9,440 -2.6% 14,879 26,083 270
50k CARIBS-USAC 120 5,208 140 10,828 -51.9% 15,549 27,146 240
WS poi nts 210
180
TC Rates 150
120
$/day Week 9 Week 8 ±% Diff 2016 2015 90
60
300k 1yr TC 29,000 29,000 0.0% 0 38,108 46,135
VLCC
300k 3yr TC 28,000 28,000 0.0% 0 34,379 42,075
150k 1yr TC 21,000 21,000 0.0% 0 27,363 35,250
Suezmax
150k 3yr TC 20,250 20,250 0.0% 0 25,653 33,219
110k 1yr TC 17,250 17,250 0.0% 0 22,396 26,808
Indicative Market Values ($ Million) - Tankers
Aframax Mar-17 Feb-17
110k 3yr TC 17,000 17,000 0.0% 0 20,948 24,729 Vessel 5yrs old ±% 2016 2015 2014
avg avg
75k 1yr TC 13,000 13,000 0.0% 0 19,127 23,596
Panamax VLCC 300KT DH 61.0 61.0 0.0% 68.7 81.2 73.8
75k 3yr TC 14,500 14,500 0.0% 0 18,592 20,580
Suezmax 150KT DH 41.5 41.5 0.0% 49.7 59.7 50.4
52k 1yr TC 12,500 12,500 0.0% 0 15,410 17,865
MR Aframax 110KT DH 30.5 30.5 0.0% 36.8 45.5 38.9
52k 3yr TC 14,000 14,000 0.0% 0 15,681 16,638
LR1 75KT DH 28.5 28.5 0.0% 32.9 36.1 33.0
36k 1yr TC 11,500 11,500 0.0% 0 14,380 16,101
Handy MR 52KT DH 22.0 22.0 0.0% 25.0 27.6 27.5
36k 3yr TC 13,000 13,000 0.0% 0 14,622 15,450

Chartering Sale & Purchase

Rates in the crude carriers market kept displaying a mixed picture last In the VLCC sector we had the sale of the “DHT ANN” (309,327dwt-blt 01, S.
week, with the VL segment still under pressure and the rest of the market Korea), which was sold to Indonesian owner, Bumi, for a price in the region
remaining more upbeat. Rate levels in the few period contracts surfacing in of $21.0m.
the past days signal a rather steady market nonetheless, while the slow- In the Aframax sector we had the sale of the “NISSOS ANAFI” (115,666dwt-
down in oil prices and consequently bunker cost has additionally boosted blt 12, S. Korea), which was sold to Greek owner, TMS Tankers, for a price in
TCE levels. As China’s lower growth for 2017 was reiterated by the country’s the region of $29.1m.
administration a couple of days ago, oil prices seem to have lost their re-
cent momentum, while negative pressure on prices also increased by esca-
lating violence in Libya. As a result, prices are still stuck in the tight range of
mid-$50/barrel and we expect them to remain there during March as well.
Despite the fact that last week kicked off on a very negative note for VLs in
the Middle East, the market got busier closer to Friday and expectations for
a rate upside this current week have now been built, while the West Africa
region also saw increased enquiry that should eventually translate to higher
earnings.
The West Africa and Black Sea/Med Suezmax remained on an upward path
last week on the back of balanced tonnage supply in both regions that saw
steady demand and rates firming. The Med Aframax kept covering some of
the ground lost during February, partially helped by delays in the Straits,
while the Caribs market faced increased pressure, which slightly reversed
during the second part of the week..

© Intermodal Research 07/03/2017 2

 Dry Bulk Market
Baltic Indices Indicative Period Charters
Week 9 Week 8
Point $/day 2016 2015 - 12 mos - 'ARISTOFANIS' 2011 178,926 dwt
03/03/2017 24/02/2017
Diff ±% - retro Lanqiao 21 Feb - $ 12,500/day - Rio Tinto
Index $/day Index $/day Index Index
BDI 939 875 64 676 713 - 5 to 6 mos - 'JOSCO FUZHOU' 2010 58,705 dwt
BCI 1,227 $9,425 1,165 $9,358 62 0.7% 1,030 1,009 - CJK 05/06 Mar - $ 9,500/day - Thoresen
BPI 1,118 $8,982 947 $7,613 171 18.0% 695 692
Baltic Indices
BSI 846 $8,848 809 $8,461 37 4.6% 601 663 BCI BPI BSI BHSI BDI
3,000
BHSI 462 $6,766 428 $6,277 34 7.8% 364 365
2,500
2,000

Index
1,500
1,000
500
Period 0
Week Week
$/day ±% Diff 2016 2015
9 8
180K 6mnt TC 11,500 11,000 4.5% 500 7,842 9,969
Capesize

180K 1yr TC 12,500 11,500 8.7% 1,000 7,582 10,263

Average T/C Rates
180K 3yr TC 11,750 11,000 6.8% 750 8,728 11,243
25000 Av erage of the 4 T / C AVR 4TC BPI AV R 5TC BSI AVR 6TC BHSI
76K 6mnt TC 9,750 9,250 5.4% 500 6,492 7,921
Handysize Supramax Panamax

76K 1yr TC 9,500 9,000 5.6% 500 6,558 7,705 20000

76K 3yr TC 9,750 9,250 5.4% 500 7,068 8,724 15000

$/day

55K 6mnt TC 9,750 9,250 5.4% 500 6,582 8,162

10000
55K 1yr TC 9,000 8,750 2.9% 250 6,851 7,849
5000
55K 3yr TC 9,250 9,000 2.8% 250 6,827 8,181
30K 6mnt TC 7,250 7,250 0.0% 0 5,441 6,690 0
30K 1yr TC 7,250 7,250 0.0% 0 5,511 6,897
30K 3yr TC 7,250 7,250 0.0% 0 5,950 7,291

Chartering Indicative Market Values ($ Million) - Bulk Carriers

On the back of strong performance from the Panamax market, the Dry
Vessel 5 yrs old Mar-17 avg Feb-17 avg ±% 2016 2015 2014
Bulk index moved another leg up last week and sentiment among owners
further strengthened. With the BDI surpassing 1,000 points today, the Capesize 180k 26.0 24.0 8.3% 23.2 33.4 47.5
sense of optimism the Dry Bulk market is currently enjoying has not been Panamax 76K 16.0 15.0 6.7% 13.4 17.5 24.8
witnessed since December and this is evident from the strength in both
Supramax 56k 15.0 14.5 3.4% 12.2 16.6 25.2
the freight and SnP markets. Period numbers keep firming quickly, while
the extended improvement in Asian trade is offering meaningful support Handysize 30K 13.3 12.9 2.9% 9.4 13.8 20.0
to the market. The recent ease on Indonesia’s ban on ore exports, is ex-
pected to also keep providing substantial support in the Pacific basin trade, Sale & Purchase
which has partially suffered because of the ban that was introduced in the
In the Panamax sector we had the sale of the “ALESSANDRO VOLTA”
country back in 2014 and had negatively impacted Supramax and Panamax (76,806dwt-blt 05, Japan), which was sold to Greek buyers, for a price in
business in the region. the region of $9.8m.
The Capesize market managed to shake off the pressure that was In the Handysize sector we had the sale of the “OCEAN HARMONY”
mounting until mid-week, with majors in the Pacific being particularly ac- (31,882dwt-blt 10, Japan), which was sold to Monaco based owner,
tive just before the weekend, while period numbers were again firm, sus- Dabinovic, for a price in the region of $9.5m.
taining a substantial premium over the spot market in most cases.

The Atlantic Panamax kept firming on the back of strong activity ex–South
America that has started clearing tonnage particularly in North Atlantic,
while Asian trade saw additional premiums over last dones for both spot
and period business. The following weeks should be particularly interesting
for the segment, as the Black Sea grains trade is also expected to intensify
following the end of the winter season.

The Atlantic Supramax saw strong numbers particularly in the USG, while
in the East momentum was also getting stronger, with period enquiry
highlighting the positive market. Handysize rates were positive in both
basins, while both Supras and Handies should shortly start enjoying in-
creased support from the Black Sea market as well.

© Intermodal Research 07/03/2017 3

 Secondhand Sales

Bulk Carriers
Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
IMABARI
POST
EARNEST SKY 95,735 2012 MARUGAME, MAN-B&W Nov-17 $ 17.5m Greek (Pol embros )
PMAX
Ja pa n

UNITED TSUNEISHI FKY,

KMAX 81,918 2014 MAN-B&W Nov-19 xs $22.0m Greek
PRESTIGE Ja pa n

UNIVERSAL MAI,
KMAX NCS BEIJING 81,508 2009 MAN-B&W Ma r-19 $ 14.5m undi s cl os ed
Ja pa n

ALESSANDRO
PMAX 76,806 2005 SASEBO, Ja pa n MAN-B&W Aug-20 $ 9.8m Greek
VOLTA

SANOYAS HISHINO
PMAX OCEAN MINERVA 75,698 2007 MAN-B&W Aug-16 $ 11.0m undi s cl os ed
MIZ'MA, Ja pa n

SAMSUNG HI, S.
PMAX JUN HAO 72,867 2001 B&W Jun-16 $ 5.5m Indi a n
Korea

YANGZHOU 4 X 35t
UMAX JS TAMISE 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS MISSISSIPPI 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS MISSOURI 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS NARMADA 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

three out of ni ne
YANGZHOU 4 X 35t U.S Ba s ed (Ea gl e
UMAX JS YANGTSE 63,500 2013 MAN-B&W $ 253.0m ves s el s a re
DAYANG, Chi na CRANES Bul k)
opti ona l

YANGZHOU 4 X 35t
UMAX JS AMAZON 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS COLORADO 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS SANAGA 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

YANGZHOU 4 X 35t
UMAX JS MEKONG 63,500 2012 MAN-B&W
DAYANG, Chi na CRANES

TAIZHOU KOUAN 4 X 30t

SMAX FELIZ N 57,000 2010 MAN-B&W Apr-20 $ 8.6m undi s cl os ed
SHIPBUIL, Chi na CRANES

OSHIMA
ADMIRAL 4 X 30t
SMAX 55,309 2007 SHIPBUILDING, MAN-B&W Ja n-17 $ 9.8m Greek
SCHMIDT CRANES
Ja pa n

SHANGHAI 4 X 36t
SMAX TUBARAO 53,350 2007 MAN-B&W Ma r-22 $ 7.0m undi s cl os ed
SHIPYARD, Chi na CRANES

TSUNEISHI 4 X 30t
SMAX STELLA MARIS 52,454 2007 MAN-B&W Jun-20 $ 9.6m Greek
HOLDINGS, Ja pa n CRANES

© Intermodal Research 07/03/2017 4

 Secondhand Sales
Bulk Carriers continued.
Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments

SANOYAS HISHINO 5 X 30t

SMAX NAVIOS IONIAN 52,067 2000 Sul zer Aug-20 l ow $5.0m Chi nes e
MIZ'MA, Ja pa n CRANES

NAMURA IMARI, 4 X 30t

HANDY AUDREY-TRACY 34,874 2016 MAN-B&W Feb-21 $ 17.4m undi s cl os ed
Ja pa n CRANES

KANDA KAWAJIRI, 4 X 30,5t

HANDY CAMPANULA 32,576 2007 Mi ts ubi s hi Ma y-17 $ 6.6m undi s cl os ed
Ja pa n CRANES

OCEAN HAKODATE DOCK - 4 X 30t Mona co Ba s ed

HANDY 31,882 2010 Mi ts ubi s hi Dec-20 $ 9.5m
HARMONY HAKODA, Ja pa n CRANES (Da bi novi c)

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

HYUNDAI HI, S. Indones i a n on s ubs , s tora ge

VLCC DHT ANN 309,327 2001 B&W Aug-21 DH $ 21.0m
Korea (Bumi ) project

MITSUBISHI Chi nes e

VLCC FRONT CIRCASSIA 306,009 1999 MAN-B&W Feb-19 DH $ 18.5m
NAGASAKI, Ja pa n (Kunl un)

SAMSUNG HI, S. Greek

AFRA NISSOS ANAFI 115,666 2012 MAN-B&W DH $ 29.1m
Korea (TMS Ta nkers )

MR ALAM BAKTI 47,999 2003 IWAGI, Ja pa n MAN-B&W Jul -18 DH $ 10.0m Indones i a n

SMALL ASUKA 6,534 2004 HIGAKI, Ja pa n Mi ts ubi s hi Sep-19 DH $ 5.5m undi s cl os ed

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

POST KOYO MIHARA,

COSCO XIAMEN 5,800 2005 MAN-B&W Feb-20 undi s cl os ed undisclosed
PMAX Japan

POST KOYO MIHARA,

COSCO DALIAN 5,800 2005 MAN-B&W undi s cl os ed undisclosed
PMAX Japan

KOYO MIHARA,
PMAX COSCO TIANJIN 4,632 2005 MAN-B&W undi s cl os ed undisclosed
Japan
SHANGHAI
PMAX HS BRUCKNER 3,534 2009 SHIPYARD CO L, MAN-B&W Apr-17 $ 5.7m undisclosed
China

SUB CRIST SP Z OO, 3 X 45t

ULYSSES 2,496 2006 MAN-B&W Sep-21 $ 6.2m Chinese
PMAX Poland CRANES

SEDEF TUZLA, 2 X 40t

FEEDER AMERICA FEEDER 584 1997 MAN Dec-17 $ 2.0m Filipino
Turkey CRANES

© Intermodal Research 07/03/2017 5

 Secondhand Sales

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

Vi etna mi s e
LPG PGC DARKO KING 6,665 1997 HIGAKI, Ja pa n B&W Nov-17 6,520 $ 4.3m
(FGAS Petrol Co)

YAMANISHI CORP, Vi etna mi s e

LPG GAS BANGKA 3994 2010 MAN-B&W Aug-20 3,535 $ 7.0m
Ja pa n (FGAS Petrol Co)

© Intermodal Research 07/03/2017 6

 Newbuilding Market

Indicative Newbuilding Prices (million$) Recent newbuilding activity reveals signs of life in the troubled industry, with
rumours in regards to a substantial Capesize order with big optionality gath-
Week Week
Vessel ±% 2016 2015 2014 ering most of the interest. With the sector only recently having started to
9 8 enjoy a steadier freight market, signs of a rebound in ordering is certainly not
Capesize 180k 41.5 41.5 0.0% 43.2 50 56 the most desired development at this stage and while it is indeed too early
Bulkers

Kamsarmax 82k 24.0 24.0 0.0% 24.8 28 30 to say whether this could be the beginning of a trend, the sharp rise in prices
Ultramax 63k 22.0 22.0 0.0% 23 25 27 of modern vessels since the beginning of the year could soon make a good
Handysize 38k 19.5 19.5 0.0% 20 21 23 argument for ordering instead of investing in the second-hand market. Addi-
VLCC 300k 80.0 80.0 0.0% 88.5 96 99 tionally, despite the overpublicized lack of finance, the reality is that owners
who desire to opt for a dry bulk newbuilding vessel can still get access to
Tankers

Suezmax 160k 54.0 54.0 0.0% 58 64 65

finance with the help of shipbuilders in the Far East and let’s not forget the
Aframax 115k 43.0 44.0 -2.3% 48 53 54 growing role of Chinese leasing companies. Having said that, it will be inter-
LR1 75k 41.0 41.0 0.0% 42.5 46 46 esting to see how dry bulk owners behave in regards to new orders in the
MR 50k 32.5 32.5 0.0% 33.7 36 37 following months. Hopefully with some sense.
LNG 160k cbm 189.0 189.0 0.0% 189 190 186
In terms of recently reported deals, Greek owner, Dryships, has exercised the
LGC LPG 80k cbm 71.0 71.0 0.0% 74.1 77 78
Gas

second out of the four options, for a VLGC (78,700 cbm) at Hyundai HI, S,
MGC LPG 55k cbm 64.0 64.0 0.0% 65.7 68 67 Korea for a price of $83.5m and delivery set in September this year.
SGC LPG 25k cbm 42.0 42.0 0.0% 42.8 45 44

Tankers Newbuilding Prices (m$) Bulk Carriers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR Capesize Panamax Supramax Handysize
180 110

140 90
mi l lion $

mi l lion $

70
100
50
60
30
20 10

Newbuilding Orders
Units Type Size Yard Delivery Buyer Price Comments

2 Tanker 35,500 dwt Shin Kurushima, Japan 2018-2019 undisclosed undi s cl os ed chemical carrier
Jiangsu Dajin HI,
1 Tanker 7,000 dwt 2018 undisclosed $ 10.5m
China
Cosco Guangdong,
3 Container 1,750 teu 2018 Greek (Lomar Shpg) undi s cl os ed option declared
China
2+2 Gas 173,400 cbm Daewoo, S. Korea 2019 European undi s cl os ed

T/C to Shell, 2nd

1 Gas 78,700 cbm Hyundai, S. Korea 2017 Greek (Dryships) $ 83.5m
option declared

© Intermodal Research 07/03/2017 7

 Demolition Market

Indicative Demolition Prices ($/ldt) This rally has serious legs! Prices in the demolition market firmed substantial-
Week Week ly last week, further extending the strong momentum the market has been
Markets ±% 2016 2015 2014 enjoying for more than two consecutive months. Hungry cash buyers proved
9 8
to have extremely deep pockets last week, during which a few sales were
Bangladesh 350 330 6.1% 287 360 469 done at very impressive levels. Whether those prices are the result of a self-
Tanker

India 340 330 3.0% 283 361 478 fulfilling prophecy in the form of competition and speculation among buyers
Pakistan 335 325 3.1% 284 366 471 or improving fundamentals has been the question in everyone’s mind. Saying
China 270 255 5.9% 176 193 313 that, the fact that scrap steel prices in China have been also moving up in
Bangladesh 330 310 6.5% 272 341 451 sync with demo prices, means that despite the degree to which excitement is
Dry Bulk

India 320 310 3.2% 268 342 459 responsible for this price rally, market fundamentals have been also
strengthening, given that cheap Chinese steel exports were crippling prices in
Pakistan 315 300 5.0% 267 343 449
the past couple of years. Average prices this week for tankers were at around
China 260 245 6.1% 160 174 297 270-350 $/ldt and dry bulk units received about 260-330 $/ldt.
One of the highest price amongst recently reported deals was paid by Bangla-
deshi breakers for the Capesize Bulker “CSK GRANDEUR” (170,170dwt-
21,464ldt-blt 00), which received $350/ldt.

Tanker Demolition Prices Dry Bulk Demolition Prices

Bangladesh India Pakistan China 550 Bangladesh India Pakistan China

520 450
420 350
$/l dt

$/l dt

320 250
220 150

120 50

Demolition Sales
Name Size Ldt Built Yard Type $/ldt Breakers Comments
ATLANTIQUE CHS, as-is Labuan
FPSO MARLIM SUL 277,734 53,000 1977 OFFSH $ 300/Ldt undisclosed
France
IHI MARINE UNITED - as-is Philippines
AL ENCORE 61,441 22,444 2003 CONT $ 351/Ldt undisclosed
YO, Japan
as-is Singapore incl. bunkers
CSK GRANDEUR 170,170 21,464 2000 SAMHO HI, S. Korea BULKER $ 350/Ldt Bangladeshi

PAL INDONESIA, Indian Sub-Cont options

THOR HARMONY 43,220 13,170 2001 BULKER $ 345/Ldt undisclosed
Indonesia
CHERNOMORSKYI, as-is Singapore
KRITI AMBER 45,614 12,450 1995 TANKER $ 345/Ldt Bangladeshi
Ukraine

© Intermodal Research 07/03/2017 8

 Commodities & Ship Finance

Market Data Basic Commodities Weekly Summary

W-O-W Oil WTI $ Oil Brent $ Gold $
3-Mar-17 2-Mar-17 1-Mar-17 28-Feb-17 27-Feb-17
Change % 60 1,300

10year US Bond 2.490 2.490 2.460 2.360 2.370 7.3% 55

S&P 500 2,383.12 2,381.92 2,395.96 2,363.64 2,369.75 0.6%
oil 50 1,250 gold
Stock Exchange Data

Nasdaq 5,870.75 5,861.22 5,904.03 5,825.44 5,861.90 0.2%

Dow Jones 21,005.71 21,002.97 21,115.55 20,812.24 20,837.44 0.8% 45

FTSE 100 7,374.26 7,382.35 7,382.90 7,263.44 7,253.00 1.8% 40 1,200

FTSE All-Share UK 4,007.47 4,013.29 4,014.72 3,953.42 3,946.27 1.7%
CAC40 4,995.13 4,963.80 4,960.83 4,858.58 4,845.18 3.1%
Xetra Dax 12,027.36 12,059.57 12,067.19 11,834.41 11,822.67 1.7%
Nikkei 19,469.17 19,564.80 19,393.54 19,118.99 19,107.47 1.9%
Hang Seng 23,552.72 23,728.07 23,776.49 23,740.73 23,925.05 -1.6%
DJ US Maritime 230.43 229.28 230.76 227.15 231.25 -0.4% Bunker Prices
$/€ 1.05 1.05 1.06 1.06 1.06 -0.5% W-O-W
3-Mar-17 24-Feb-17
$/₤ 1.23 1.23 1.24 1.24 1.24 -1.5% Change %
Currencies

¥/$ 114.35 114.11 113.08 112.75 112.18 2.0% Rotterdam 471.0 472.5 -0.3%

MDO
$ / NoK 0.12 0.12 0.12 0.12 0.12 -1.3% Houston 505.0 505.0 0.0%
Yuan / $ 6.89 6.88 6.87 6.87 6.87 0.2%
Singapore 505.0 505.0 0.0%
Won / $ 1,150.93 1,140.57 1,137.79 1,134.95 1,130.82 1.8%
Rotterdam 301.5 303.5 -0.7%

380cst
$ INDEX 101.54 102.20 101.78 101.12 101.13 0.4%
Houston 307.0 295.0 4.1%
Singapore 322.5 327.5 -1.5%

Market News
Maritime Stock Data “Ratings agency downgrades struggling Rickmers
Stock W-O-W Holding
Company Curr. 03-Mar-17 24-Feb-17
Exchange Change % A LEADING German ratings agency has downgraded
AEGEAN MARINE PETROL NTWK NYSE USD 11.35 10.25 10.7% Rickmers Holding from CCC to C (watch), a level
deemed to denote high to very high insolvency risk.
CAPITAL PRODUCT PARTNERS LP NASDAQ USD 3.32 3.29 0.9%
“This is mainly due to continuing strong negative
COSTAMARE INC NYSE USD 6.34 6.27 1.1% developments on the basis of current market condi-
tions,” Creditreform said. “We anticipate restructur-
DANAOS CORPORATION NYSE USD 2.20 2.50 -12.0%
ing measures to be stabilised in the short term,
DIANA SHIPPING NYSE USD 3.94 3.77 4.5% including a restructuring of financial liabilities.” The
DRYSHIPS INC NASDAQ USD 1.37 1.87 -26.7% problems facing the German operator, owned by
high-profile Hamburg shipping king Bertram Rick-
EAGLE BULK SHIPPING NASDAQ USD 5.41 5.46 -0.9% mers, have already received extensive publicity,
EUROSEAS LTD. NASDAQ USD 1.38 1.41 -2.1% after its then affiliate in Singapore defaulted on a
bond repayment last year. Rickmers Holding subse-
GLOBUS MARITIME LIMITED NASDAQ USD 6.30 7.11 -11.4% quently sold its stake to an entity called Brick Hold-
NAVIOS MARITIME ACQUISITIONS NYSE USD 1.84 1.86 -1.1% ing Invest Trust, believed to be owned by Bertram
Rickmers. Bertram tried last year to negotiate a
NAVIOS MARITIME HOLDINGS NYSE USD 1.73 1.72 0.6% merger with the shipping interests of ER Capital,
NAVIOS MARITIME PARTNERS LP NYSE USD 1.85 1.80 2.8% owned by his brother Erck Rickmers. But in the
event, the two siblings — who reputedly do not
SAFE BULKERS INC NYSE USD 1.54 1.38 11.6%
enjoy cordial relations — failed to come to terms. In
SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.03 1.00 3.0% February, the group sold its multipurpose division
Rickmers-Linie to rivals Zeaborn, although consider-
STAR BULK CARRIERS CORP NASDAQ USD 10.71 9.20 16.4%
ation was kept under wraps. The likely flashpoint
STEALTHGAS INC NASDAQ USD 4.69 4.27 9.8% will come in June, when Rickmers Holding will need
TSAKOS ENERGY NAVIGATION NYSE USD 4.67 4.62 1.1% to find €25m ($26m) to pay the coupon on a high-
yield bond issued four years ago, at a punishingly
TOP SHIPS INC NASDAQ USD 2.05 2.23 -8.1% high coupon of 8.9%. The bond is currently trading
at just 15% of its nominal value. The company is
known to be in restructuring talks with its bankers,
seeking to once again extend maturities after an
earlier restructuring deal in February 2015.
Lloyd’s List has approached senior managers for
comment.” (Lloyd’s List)
The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbr okers 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 | [email protected]

Ms. Eva Tzima | [email protected]
Mr. George Panagopoulos | [email protected]
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© Intermodal Shipbrokers Co 07/03/2017 10