shipping intelligence weekly - poslovni dnevnik · shipping intelligence weekly, issue 1186....

Shipping Intelligence WeeklyIssue No. 1,186 28-Aug-2015 ISSN: 1358-8028

ClarkSea Index $13,491

Vessel Charter Rates This Week…1 Year VLCC TC Rate… | 1 Year Capesize TC Rate…

1 Year MR TC Rate… | 6-12m 2750 TEU TC Rate…

Asset Prices This Week…VLCC N/B… $95.5m | Capesize N/B… $48.5m | 2750 TEU N/B… $30.5m

VLCC 5yo… $84.0m | Capesize 5yo… $35.0m | 2750 TEU 5yo… $18.0m

This Week's Analysis (see Back Page)

Going West In The East? The Story Of China's Industrial Growth And Import Boom

$48,000/day $10,625/day

$20,000/day $9,750/day

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$,000/day

CONTENTS Crude Tanker Spot Market p2

Product Tanker Spot Market p3 Large Bulk Carrier Market p4 Tripcharter Market, Freight Indices & Futures p5

Gas & Chemical Markets p6 Liner & Offshore Markets p7 Secondhand Prices p8 Sale & Purchase Market pi Recent Ship Sales by Vessel Type pii

Fleet Changes, Bunkers & Capital Market Activity piii Timecharter Fixture Record piv The Timecharter Market p9

The Shipbuilding Market p10 The Demolition Market p11 Economic Indicators p12 Ship Demand Trends p13

World Fleets & Orderbooks p14-15 Analysis p16

Roberts Bank

New YorkPhiladelphia

Hampton RoadsHouston New Orleans

LOOP

Selection of ports covered by the various market sectors in this report

St Eustatius

BonaireBolivar

Rio de Janeiro

Tubarao

Mumbai

Mundra Jamnagar

GangavaramPipavav

Singapore

JakartaBanjarmasin

Dampier Hay Point

Sydney

Ningbo

Beilun OitaChiba

UlsanLongkou

Qingdao

Clarksons Research is respected worldwide as the most authoritative provider of intelligence for the global shipping industry. Clarksons Research is part of the Clarksons group, the world’s largest provider of shipbroking and integrated shipping services. For more detail about the Clarksons group visit www.clarksons.com.

Roberts Bank

New YorkPhiladelphia

Hampton RoadsHouston New Orleans

LOOP

Selection of ports covered by the various market sectors in this report

St Eustatius

BonaireBolivar

Rio de Janeiro

TubaraoSaldanha Bay

Richards Bay

Dar es Salaam

Lome

Bonny Offshore

Sullom Voe Primorsk

WilhelmshavenRotterdam

Lavera

ArzewEs Sider

Trieste

OdessaNovorossiysk

Augusta Agioi Theodoroi

Sidi Kerir

Ain SukhnaRas Tanura

Mumbai

Mundra Jamnagar

Gangavaram

Clarksons Research will be exhibiting atOffshore Europe, Aberdeen, Scotland fromthe 8th - 11th September 2015 and will belocated at stand 1G63 in the AberdeenExhibition and Conference Centre.

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hipping Intelligence Weekly, Issue 1186.

Crude Tanker Spot MarketCrude Tanker Highlights

VLCC Single WS 2015 Average earnings $ per day VLCC Earnings

Voyage..... Aug 21 Aug 28 2015 2014 2015 Aug 21 Aug 28 This Week ....

23 280,000t Gulf - Europe 23 21 35 21,719 49,287 28,829 27,160 SOFTER -6%23 280,000t Gulf - US Gulf * 22 20 34 16,475 42,054 23,856 22,207 SOFTER -7%23 265,000t Gulf - Japan * 30 32.5 60 27,462 58,802 22,769 28,768 FIRMER 26%23 265,000t Gulf - S.Korea * 29 30 58 26,167 54,912 21,151 25,011 FIRMER 18%23 270,000t Gulf - Sing 30 32.5 61 28,008 60,121 22,001 27,929 FIRMER 27%23 280,000t Gulf - Red Sea 37.5 37.5 67 38,648 69,668 34,161 36,635 FIRM.... 7%23 260,000t WAF - China * 40 42.5 61 27,028 56,639 34,408 39,589 FIRMER 15%23 260,000t WAF - US Gulf 47.5 50 69 39,442 69,629 46,756 51,267 FIRMER 10%23 260,000t WAF - WC India^ 3.25 3.50 4.79 32,389 64,012 40,663 47,793 FIRMER 18%23 275,000t Caribs-Singapore^ 6.00 5.50 6.82 52,937 102,087 92,309 84,441 WEAKER -9%23 VLCC Ave. Earnings * 27,315 53,102 25,546 28,894 FIRMER 13%^ Lump sum in million dollars. VLCC average earnings series based on a revised selection of routes from start 2015.

Suezmax Single WS 2015 Average earnings $ per day Suezmax Earnings


24 130,000t WAF - USAC 65 57.5 84 24,785 40,501 30,672 27,021 WEAKER -12%24 130,000t WAF - Med* 67.5 59 86 25,583 43,536 33,577 28,535 WEAKER -15%24 130,000t Med - Med * 70 62.5 90 30,796 49,259 36,302 31,352 WEAKER -14%24 140,000t Black Sea - Med* 70 62.5 90 31,000 52,118 36,758 30,911 WEAKER -16%24 130,000t Gulf - WC India* 65 60 92 21,612 39,592 24,418 22,499 SOFTER -8%24 Suezmax Ave. Earnings * 27,791 46,126 32,764 28,324 WEAKER -14%Suezmax average earnings series based on a revised selection of routes from start 2015.

Aframax Single WS 2015 Average earnings $ per day Aframax Earnings


25 100,000t Baltic - UKC * 75 75 97 28,519 46,508 33,688 34,695 STEADY 3%25 80,000t Black Sea - Med * 87.5 77.5 114 24,679 37,808 26,866 22,584 WEAKER -16%25 80,000t Sidi Kerir - Trieste * 80 77.5 112 24,427 37,094 23,988 23,647 STEADY -1%25 80,000t Mellitah - Fos^ 97.5 87.5 124 21,200 35,896 23,724 19,517 WEAKER -18%25 80,000t Med - USAC 80 72.5 103 22,059 32,556 24,497 22,054 WEAKER -10%25 80,000t UKC - UKC * 100 97.5 114 23,216 40,467 32,062 31,088 SOFTER -3%25 80,000t UKC - USAC 90 90 104 22,581 31,705 27,036 28,108 FIRM.... 4%25 80,000t Gulf - East * 97.5 95 117 23,075 35,401 30,270 30,398 STEADY 0%25 80,000t Indo - Japan * 97.5 95 119 23,060 38,105 31,840 31,667 STEADY -1%25 70,000t Caribs - US Gulf * 82.5 80 136 25,960 36,175 18,744 18,330 STEADY -2%25 Aframax Ave. Earnings * 24,705 38,794 28,208 27,487 STEADY -3%

^Earnings and rate based on Es Sider - Fos before 20th February 2015.

Clarksons Research

Crude Tanker Spot Earnings ($,000's/day)

2013

11,4868,31917,71016,93717,99425,88015,45422,66520,31329,60816,217

2013

14,24513,86316,77613,321

15,511

2013

19,90311,26511,3467,023

11,122

14,131"Voyage Earnings" are estimated from spot freight rates (see footnote on page 4); */ # Indicates constituent routes of "Average Earnings".

28-Aug-15

15,52511,63317,95814,18514,07616,508

• VLCCs: It was a fairly active week in the MEG, which supported the rate on the route to Japan rising to WS 32.5. However, the rate on the Gulf-US Gulf route fell to WS 20. Meanwhile, owners in WAF continue to resist downward pressure from charterers, particularly for long voyages, and the rate on the route to China rose to WS 42.5.

• Suezmaxes: There was limited enquiry and ample prompt tonnage in the Suezmax market this week, with the rate on the cross-Med route falling to WS 62.5. Suezmax average earnings dropped by 14% w-o-w to $28,324/day.

• Aframaxes: Although it was a relatively quiet week in the Southern European market, rates did not fall dramatically, with the rate on the Sidi Kerir-Trieste route declining to WS 77.5. Meanwhile, it was quite an active week in the North Sea and Baltic load regions, although the rate on the Baltic-UKC route remained steady at WS 75. Aframax average earnings decreased slightly w-o-w to $27,487/day.

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Product Tanker Spot MarketProduct Tanker Highlights

Clean Product WS 2015 Average earnings $ per day Clean Earnings

Single Voyage... Aug 21 Aug 28 2015 2013 2014 2015 Aug 21 Aug 28 This Week ....

26 75,000t Gulf - Japan 160 120 117 18,302 33,770 53,616 39,116 WEAKER!! -27%27 55,000t Gulf - Japan 130 115 131 15,232 27,591 29,579 26,371 WEAKER -11%28 37,000t UKC - USAC * 125 125 154 10,330 21,322 17,247 17,966 FIRM.... 4%28 37/38kt UKC-USAC-USG-UKC § 125/80 125/75 154/102 17,913 28,194 21,978 21,764 STEADY -1%28 37,000t UKC- W. Africa * 140 140 173 15,358 26,927 21,931 22,655 FIRM.... 3%28 38,000t USG - ECSA * 130 127.5 158 14,111 24,630 20,638 20,554 STEADY 0%28 30,000t Singapore-E Aus * 210 210 187 13,474 21,779 27,851 28,535 STEADY 2%28 30,000t Singapore-Japan 160 160 140 10,801 22,605 29,394 30,045 STEADY 2%28 35,000t WC India - Japan * 170 170 133 10,737 20,869 31,682 32,378 STEADY 2%28 35,000t Gulf - E.Africa 195 190 178 16,733 24,002 29,077 29,085 STEADY 0%28 40,000t Gulf-UKC * ^ 1.9 1.7 1.67 11,093 20,562 27,342 23,921 WEAKER -13%29 30,000t Med - Med # 135 135 179 13,079 27,761 18,085 18,537 STEADY 3%29 30,000t Black Sea - Med # 135 135 182 11,867 22,190 14,577 14,972 STEADY 3%

Clean 'MR' Ave. Earnings * 12,517 22,681 24,448 24,335 STEADY 0%Clean 'Hdy' Ave. Earnings # 12,473 24,975 16,331 16,755 STEADY 3%

^ Lump Sum in $million. § Earnings for a triangular voyage of UKC-USAC at WS 125, followed by USG-UKC at WS 75. See Sources & Methods.

Dirty Product WS 2015 Average earnings $ per day Dirty Earnings

Single Voyage... Aug 21 Aug 28 2015 2014 2015 Aug 21 Aug 28 This Week ....

31 55,000t Med - US Gulf * 97.5 92.5 130 17,418 26,552 19,152 18,500 SOFTER -3%31 55,000t UKC - US Gulf * 97.5 90 129 19,586 27,476 19,998 18,450 SOFTER -8%31 50,000t Caribs - US Gulf * 110 90 144 19,568 26,966 19,694 14,467 WEAKER!! -27%33 30,000t Black Sea - Med 140 137.5 168 17,630 20,793 15,744 15,601 STEADY -1%

Dirty Ave. Earnings * 18,858 26,998 19,614 17,139 WEAKER -13%

VLCC Spot Monthly Fixture Record VLCC Spot Market

Market Activity... Average No. Number Last This Week ...

2013 2014 Mar '15 May '15 Jun '15 Jul '15 4 Wks

Fixtures: Gulf-West 24 19 23 23 13 11 20 UP BY.... 82%Gulf-East/Japan 98 97 105 92 107 77 67 DOWN BY..... -13%Gulf-Red Sea 2 1 2 9 10 3 2 DOWN BY..... -33%Others 50 52 61 60 56 63 51 DOWN BY..... -19%

Total Number of Fixtures 173 169 191 184 186 154 140 DOWN BY..... -9%

Vessels due to arrive in Gulf ~ 82 92 113 115 82 107 94 DOWN BY..... -12%VLCCs Spot in Gulf ~ No. 4 6 4 7 1 1 9 UP BY.... 800%

000 Dwt 1,056 1,865 1,162 2,110 311 309 2,734 UP BY.... 785%~ As at the beginning of the month for historical data; for the next 4 weeks (vessels due) or this week (vessels spot) for current week's data.

Clarksons Research

Product Tanker Spot Earnings ($,000's/day)

13,68312,95110,46919,39917,78216,57414,36014,51710,76017,13410,84011,3549,98113,46410,668

10,53611,648

2013

11,19714,22511,127

Apr '15

2191

28-Aug-15

559

176

983

864

• Clean Products: The MR market west of Suez has been relatively quiet this week, with limited activity ex-UKC, although the rate on the UKC-USAC route remained steady at WS 125. Meanwhile, the market ex-USG has softened with the rate on the route to ECSA falling to WS 127.5. Clean MR average earnings remained steady w-o-w at $24,335/day, slightly higher than the year to date average. Meanwhile, the LR market ex-MEG continued to decline this week due to limited activity and as a result the LR2 rate on the route to Japan fell to WS 120, whilst the LR1 rate on the same route fell to WS 115.

• Dirty Products: Although there was an uptick in activity in the Caribbean and US Gulf this week, owners were unable to take advantage due to abundant tonnage in the region. As a result, the rate on the Caribs-US Gulf route fell to WS 90. Meanwhile, there was limited activity in both the Med and UKC load regions and the rate on the UKC-US Gulf route fell to WS 90. Dirty average earnings declined 13% w-o-w to stand at $17,139/day.

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MR Clean Tanker EarningsHandy Clean EarningsDirty Panamax Earnings

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Bulkcarrier Spot Earnings ($,000's/Day) Bulkcarrier Highlights

Capesize Single $ Per Ton Average Earnings $ Per Day Capesize Market

Voyage… Aug 21 Aug 28 2015 2013 2014 2015 Aug 21 Aug 28 This Week ...

34 176,000t ore Tubarao/Rotterdam* 4.90 4.40 5.67 13,592 11,321 5,532 5,019 4,062 WEAKER -19%34 173,000t ore Tubarao/El Dekheila 5.80 5.50 6.26 16,371 13,477 8,778 9,584 9,518 STEADY -1%34 176,000t ore Tub/Qingdao* 12.60 10.60 11.51 27,023 27,342 13,794 18,926 15,048 WEAKER -20%34 166,500t coal Bolivar/Rotterdam* 6.80 5.70 6.34 17,168 13,601 8,106 12,196 8,992 WEAKER!! -26%34 175,000t ore Dampier/Qingdao* 5.45 4.45 4.95 16,162 12,511 5,426 10,626 6,679 WEAKER!! -37%34 176,000t ore Saldanha/Qingdao 8.30 7.10 8.16 19,047 18,862 9,366 12,211 9,861 WEAKER -19%34 176,000t ore Dampier/Japan 18m* 5.35 4.35 4.83 20,222 16,800 9,342 15,593 10,888 WEAKER!! -30%34 168,000t coal Hay Pt./China 5.90 4.50 6.15 14,270 15,690 7,564 9,358 4,466 WEAKER!! -52%34 168,500t coal R.Bay/Rotterdam 5.90 4.35 5.14 -845 499 -833 3,786 693 WEAKER!! -82%34 168,500t coal R.Bay/EC India 7.75 6.50 7.15 16,197 12,922 6,688 11,386 8,148 WEAKER!! -28%34 Capesize Average Earnings * 18,834 16,315 8,440 12,472 9,134 WEAKER!! -27%

Panamax Single $ Per Ton Average Earnings $ Per Day Panamax Market

Voyage… Aug 21 Aug 28 2015 2013 2014 2015 Aug 21 Aug 28 This Week ...

36 67,000t coal USGulf/ARA* 11.75 11.25 10.67 9,723 7,192 6,270 9,236 9,047 STEADY -2%36 67,000t coal Bolivar/ARA 10.85 10.10 9.90 9,481 6,456 7,314 10,560 9,781 SOFTER -7%36 65,000t coal Murmansk/ARA* 7.35 6.60 6.12 8,607 4,552 7,478 12,916 10,901 WEAKER -16%36 55,000t grain USGulf/N. China*^ 34.50 34.00 31.75 14,600 10,997 13,854 13,993 STEADY 1%36 72,000t coal Rob. Bank/N. China* 11.10 11.00 10.49 12,074 11,764 8,553 11,325 11,666 FIRM....... 3%36 72,000t coal Dalrymp. B./N. China* 8.55 8.75 8.64 10,814 10,569 7,590 9,129 10,068 FIRMER 10%36 70,000t coal Indonesia/S. China*^ 4.30 3.70 3.98 6,035 3,413 5,484 4,093 WEAKER!! -25%36 72,000t coal Indonesia/WC India* 7.50 7.00 7.32 13,956 11,119 9,568 11,411 10,619 SOFTER -7%36 72,000t coal Indonesia/EC India 6.75 6.25 6.50 16,355 12,558 10,150 12,097 11,126 WEAKER -8%36 60,000t grain Nopac/N. China*^ 16.50 16.60 16.56 9,384 6,551 7,828 8,265 FIRM....... 6%36 66,500t coal Richards B./Rott 7.40 7.00 7.46 1,243 2,596 1,328 2,902 3,096 FIRM....... 7%36 72,000t coal Richards B./WC India* 10.00 7.00 9.80 12,018 9,129 7,402 9,330 5,175 WEAKER!! -45%36 Panamax Average Earnings * 8,646 7,801 7,536 10,057 9,314 SOFTER -7%

Supramax Single $ Per Ton Average Earnings $ Per Day Supramax Market

Voyage... Aug 21 Aug 28 2015 2013 2014 2015 Aug 21 Aug 28 This Week ...

37 50,000t grain USGulf/Jap.(HSS) 35.50 33.50 30.94 19,212 18,950 12,660 17,807 16,905 SOFTER -5%37 50,000t coal Richards B./WC India 11.50 10.75 10.79 8,127 6,317 4,317 6,633 6,512 STEADY -2%37 Supramax Average Earnings 12,237 10,819 7,345 10,980 10,209 SOFTER -7%

Clarksons Research

Large Bulk Carrier Market

28-Aug-15

"Voyage Earnings" are calculated from spot freight rates for standard routes/ships. These assumptions are detailed in the "Sources & Methods" document on the Shipping Intelligence Network (www.clarksons.net). Standard ships are indicated by the figures on the left e.g. modern Capesize = standard ship no. 34. A wider selection of spot freight rate and earnings series, including for Kamsarmax vessels, is available on Shipping Intelligence Network. ^2014 averages comprised of July-December data.

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Capesize Average Spot

Panamax Average Spot

Supramax Tripcharter

• Capesize: The recent slide in rates has continued in the Capesize market. The South Atlantic market softened, with owners reducing their bids in response to aggressively low offers. Meanwhile, limited cargo out of Western Australia saw spot rates on the featured routes out of the region drop w-o-w by $1/tonne. Overall, average Capesize spot earnings dropped 27% w-o-w to $9,134/day.

• Panamax: The Pacific market was generally steady this week. Relatively strong spot rates in the US Gulf have attracted open tonnage in the North Pacific, since Transpacific rates have remained fairly weak. A long tonnage list in the Atlantic has exerted pressure on rates in the region.

• Handy: The USG lacked the activity seen in previous weeks, which saw the spot rate on the featured route drop to $33.50/tonne. Meanwhile, Supramax trip rates on the Indonesia to China route remained flat w-o-w, despite an increase in activity towards the end of the week.

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Tripcharter Market, Freight Indices & Futures

Capesize Capesize Market

Tripcharter... 2013 2014 2015 Jul 31 Aug 07 Aug 14 Aug 21 Aug 28 This Week ....

Cont/Far East 29,692 29,591 14,447 28,500 29,000 21,700 19,000 16,000 WEAKER -16%Transpacific R/V 14,168 12,723 5,804 14,000 16,000 11,200 10,650 8,000 WEAKER -25%Far East/Cont -635 159 -1,725 4,900 6,000 4,350 3,300 750 WEAKER!! -77%Transatlantic R/V 15,447 12,257 7,050 21,500 21,900 14,100 10,600 7,500 WEAKER!! -29%Average Capesize Earnings 14,668 13,683 6,394 17,225 18,225 12,838 10,888 8,063 WEAKER!! -26%

Panamax Panamax Market


Cont/Far East 17,625 15,336 10,774 14,250 14,750 14,500 14,500 13,250 WEAKER -9%Transpacific R/V 9,073 7,988 5,189 6,750 6,100 6,400 6,750 6,750 STEADY 0%Far East/Cont 349 974 490 1,000 500 500 700 700 STEADY 0%Transatlantic R/V 10,623 6,837 6,691 10,800 10,750 11,500 11,000 9,500 WEAKER -14%Average Panamax Earnings 9,418 7,783 5,786 8,200 8,025 8,225 8,238 7,550 WEAKER -8%

Supramax Supramax Market


Cont/Far East 15,538 14,918 9,893 12,750 12,750 13,000 13,750 13,750 STEADY 0%Transpacific R/V 8,653 8,894 6,344 7,000 7,000 6,750 7,250 7,250 STEADY 0%Far East/Cont 5,118 6,322 5,364 6,000 5,750 5,750 5,250 5,500 FIRM....... 5%Transatlantic R/V 9,284 6,351 5,929 10,000 9,750 9,750 9,750 9,750 STEADY 0%Indonesia - China~ 6,242 5,966 4,650 5,250 5,250 5,250 5,000 5,000 STEADY 0%Average Supramax Earnings* 9,648 9,121 6,883 8,938 8,813 8,813 9,000 9,063 STEADY 1%* Does not include Indonesia-China. ~ Based on delivery South China, redelivery South China.

Handysize Handysize Market


Cont/ECSA 6,211 5,656 3,600 4,500 4,750 4,750 5,500 5,500 STEADY 0%Cont/USEC-USG 5,668 5,319 3,821 4,500 5,000 5,250 6,000 6,000 STEADY 0%ECSA/Cont 11,563 10,100 9,136 11,500 13,000 14,000 14,500 14,250 STEADY -2%USEC-USG/Cont 13,942 10,683 7,450 9,500 9,250 10,000 10,500 10,250 STEADY -2%SEAsia/Australia R/V 7,074 6,920 4,291 4,000 4,250 4,250 4,000 4,000 STEADY 0%Transpacific R/V 7,004 7,294 5,100 4,750 4,750 4,750 4,250 4,250 STEADY 0%Average Handysize Earnings 8,577 7,662 5,566 6,458 6,833 7,167 7,458 7,375 STEADY -1%

Baltic Freight Indices Baltic Panamax Index TrendsDate BCI 2014 BSI BHSI BDI

18-Aug 1838 915 449 104619-Aug 1773 920 453 103120-Aug 1679 924 460 101421-Aug 1559 930 464 99424-Aug 1403 933 469 96825-Aug 1248 934 473 94226-Aug 1089 933 477 91827-Aug 1051 931 479 905

Max Value 1838 934 479 1046Min Value 1051 915 449 905Avg Value 1455 928 466 977

FFA Indications*$/day 27-Aug Aug-15 Q4 15 Cal 16

BCI 7 Bolivar-Rott. 8.10 6.70 6.35BCI 4 R.Bay-Rott. 6.65 5.65 5.50BPI 2A USG/F.East 14,425BPI 3A T/P R/V 6,750Cape TC Avg. 8,650 12,300 10,050P'max TC Avg. 7,050 7,350 6,900S'max TC Avg. 8,825 8,550 7,100*FFA Indications basis closing mid-price

Clarksons Research 28-Aug-15

4.3114,0096,7206,9857,9719,732

1000

105410001042

Index5.72

104910521054105210471031

Average Rate $ Per Day




BPI1052

Note: Vessels based on Baltic standards where appropriate. Tripcharter rates for a wider selection of standard vessels, including a 180,000 dwt Capesize, 58,000 dwt Supramax and 34,000 dwt Handysize are available on Shipping Intelligence Network at www.clarksons.net.

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Gas & Chemical Markets

LPG Charter Rates, $'000/month

Markets…. 2013 2014 Jun Jul 28 Aug Trends…

LPG Voyage Rates, $/mt

44/46K mt Gulf/Jap* 58.49 91.21 115.25 128.80 74.00 WEAKER!! -43%LPG TCE, $/day 82,000m³ modern 36,446 77,070 111,265 132,785 73,777 WEAKER!! -44% 78,000m³ modern 35,100 73,777 106,145 124,388 70,325 WEAKER!! -43%LPG 12 mths T/C, $/day 82,000m³ modern 31,430 51,810 71,919 72,955 62,467 WEAKER.. -14% 78,000m³ modern 31,022 50,897 70,358 71,508 61,810 WEAKER.. -14% 59,000m³ modern 32,138 45,839 64,933 66,741 62,467 SOFTER... -6% 35,000m³ 26,492 31,452 36,905 39,058 39,453 STEADY... 1% 22,500m³ modern 25,442 27,737 28,768 28,801 29,261 STEADY... 2% 20,500m³ Semi-Ref 30,162 33,361 32,466 32,483 31,234 SOFTER... -4% 15,000m³ Semi-Ref 21,247 24,133 23,836 23,836 23,014 SOFTER... -3% 8,250m³ Ethylene 17,295 17,011 16,932 16,932 16,932 STEADY... 0% 3,500m³ Pressure (East) 8,096 7,179 5,918 5,918 5,589 SOFTER... -6%LNG Spot Rate, $/day^160,000m³ (TFDE) 104,346 71,942 32,500 27,600 32,000 FIRMER... 16%*44K mt for 78K vessel/46K mt for 82K vessel. ^Single voyage loading within the next three months.

Chemical Freight Rates, $/mt

Markets…. 2013 2014 Jun Jul 28 Aug Trends…

Voyage Rates ($/mt)10,000 Gulf/WC India 31.40 32.79 35.00 35.60 35.00 STEADY... -2%15,000 Gulf/Ulsan 49.23 50.73 50.00 50.40 48.00 SOFTER... -5%15,000 Gulf/Med 62.06 60.62 59.00 60.00 61.00 STEADY... 2%15,000 Gulf/Rott. 69.40 66.48 61.00 61.60 61.00 STEADY... -1%5,000 Rott/Houston 45.48 44.01 42.75 43.70 43.50 STEADY... 0%10,000 Rott/Houston 41.11 39.28 39.00 39.40 38.00 SOFTER... -4%5,000 Rott/Ulsan 91.67 100.14 87.50 85.50 85.00 STEADY... -1%5,000 Singapore/Rott 98.23 93.04 90.75 90.20 94.00 FIRM... 4%1,000~ Sing./Houston 153.31 164.17 161.50 164.20 166.00 STEADY... 1%10,000 Ulsan/Houston 60.58 59.10 59.25 58.40 57.00 STEADY... -2%5,000 Houston/Rott 48.40 47.98 62.25 60.20 65.00 FIRM... 8%5,000 Houston/Ulsan 73.85 65.15 62.50 63.40 63.00 STEADY... -1%12 mths TC, $/day13,000 dwt IMO II 8,583 9,167 9,750 9,750 9,750 STEADY... 0%19,999 dwt S/S 13,438 14,042 15,250 15,250 15,500 STEADY... 2%Easychems except for: ~ Stainless Steel.


Gas Carrier Average 2015 Gas Market

Chemicals Average 2015 Chem Market

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Rott/Far E.Houston/Far E.

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• This week was a reminder that sentiment can be a powerful force in the VLGC sector. LPG vessel owners have become more assertive in recent months, being ruthless when there was an opportunity to firm rates and resistant to pressure from charterers. It is perhaps surprising that this week has seen virtual panic set in as owners chased the market down, wiping around $20/mt off the Baltic Index.

• The tonnage list in the AG is as long as has been seen this year and the spectre of idle time is a threat. Some newbuilds have delivered into the fleet and several third-party relets have been offered out. But the market AG-East has been as active as any other period this year. What is lacking is the resumption of West-East trade which has supported freight this year. Arbitrage opportunities take time - but patience while prices

adjust is lacking. Many of the third-party relets are speculative plays, where traders look to push ships out, banking on covering these later when rates fall. • In the current environment most timecharter discussions have faltered as bid/offer levels try to find some stability. Charterers are hoping that owners may be a bit more willing to put ships out on term business with the spot market in flux.

• This week the Houston to Rotter-dam market has continued to soften due to a lack of fresh cargoes. Transpacific rates have also softened as the market has been quiet for 5,000mt parcels. Ex-MEG rates have also softened this week as the supply of available tonnage out-weighs current demand levels. • The Rotterdam to Far East Asia market has remained quiet this week with rates for all parcel sizes from

1,000mt to 5,000mt holding steady. This can be attributed to the supply demand fundamentals exhibiting a good balance, with owners and charterers fulfilling re-quirements. Ex-Rotterdam transatlantic rates have also softened this week as market activity has been sparse. • Meanwhile, rates for parcels on the SE Asia to Rotterdam route have tightened up by $2/mt for both 3,000mt and 5,000mt cargoes. This can be at-

tributed to a certain amount of bullish sentiment coming from owners, who are pushing up prices due to a number of requirements in the market.

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Liner & Offshore MarketsLiner Market Rates ($,000's/day) Liner Market News

Container / MPP / Average 2015 Liner Markets

Short Sea Markets 2011 2012 2013 2014 May Jun Jul Aug Trends*Containerships ($/Day, 6-12mth TC)Handy, 1,000 teu grd. 7,729 5,358 6,321 6,396 8,500 8,500 8,200 7,800 FIRM....... 7%Handy, 1,700 teu grd. 10,142 6,292 7,096 7,313 11,000 11,500 11,000 9,500 FIRMER... 13%Sub-P'max, 2,000 teu g'less 10,688 6,408 6,483 6,933 10,250 10,300 10,100 9,250 FIRMER... 9%Sub-P'max, 2,750 teu g'less 13,388 6,742 6,829 7,425 13,250 11,750 11,000 9,750 WEAKER... -10%Panamax, 3,500 teu g'less 14,871 7,179 7,021 7,746 14,000 13,500 12,500 11,750 STEADY... 1%Panamax, 4,400 teu g'less 19,854 9,942 8,696 8,771 15,350 15,000 15,000 13,750 STEADY... -2%MPP Tonnage ($/Day)^17,000 dwt, grd. 1 yr. t/c (liner) 9,729 8,988 9,780 9,763 8,500 8,300 8,300 8,300 SOFTER... -6%12,000 dwt, grd. 1 yr. t/c (liner) 8,870 8,508 7,400 7,400 7,500 7,500 STEADY... -1%

European Short Sea 3,000dwt ($/t)ECUK/ARAG - N.Spain 22.31 22.73 22.85 25.02 23.15 21.88 20.25 19.75 STEADY... -2%French Bay - ECUK 15.72 16.73 17.96 18.64 15.95 14.00 13.20 13.00 STEADY... -2%Lower Baltic - ARAG 20.42 20.42 20.98 21.64 17.15 16.44 16.00 15.50 SOFTER... -3%UK/ARAG - W.Med 30.71 33.22 33.22 35.56 31.05 30.00 28.40 25.75 WEAKER... -9%W.Med - UK/ARAG 24.91 26.11 27.56 27.06 22.10 21.13 19.95 18.50 SOFTER... -7%*3-month trend for Container/MPP; current month shows latest end month data. Change since previous month for Short Sea; see www.hcshipping.co.uk for market report. ^Data for 2011 and 2012 based on previous historical vessel specification (see Container Intelligence Monthly), 2013 average basis August-December data.

Offshore Offshore Market Offshore Vessel Charter Rates

Market 2013 2014 Latest Trends*North Sea OSV Market £/DayAHTS Spot, 18k+ BHP 38,655 38,400 10,097 FIRM....... 7%AHTS Term, 16-20k BHP 24,917 24,750 11,500 WEAKER.. -23%

PSV Spot, >800m2 16,050 12,229 4,734 FIRMER... 13%

PSV Term, >900m2 18,750 17,250 7,250 WEAKER!! -14%Regional OSV Market $/DaySE Asia, AHTS Term, 5k BHP 8,833 8,500 6,000 WEAKER!! -40%

W.Africa PSV Term, >900m2 32,167 30,917 14,000 WEAKER!! -27%

Brazil, PSV Term, >900m2 33,375 36,208 27,000 SOFTER... -8%Drilling Rig Market, $000/Day**Jack-Up, SE Asia, High-Spec 150-165 125-150 85-115 WEAKER.. -14%Floater, GoM, Ultra Deep 550-600 350-410 250-350 WEAKER!! -9%*3-month trend. ** Annual drilling rig dayrates on end year basis.

Offshore Fleet This Month

Trends 2013 2014 Obk % Fleet

Anchor Handling Tug/Supply 2,856 2,926 2,958 247 8%PSV/Supply 2,140 2,330 2,407 388 16%Mobile Drilling Units 999 1,030 1,019 204 20%Other Types 6,446 6,679 6,791 457 7%All Offshore Vessels 12,441 12,965 13,175 1,296 10%

Clarksons Research

Average

No. End

28-Aug-15

Jul-15

Offshore fleet includes all mobile units; for more detailed coverage of the full range of offshore sectors see Offshore Intelligence Monthly. See also Offshore Drilling Rig Monthly and Offshore Support Vessel Monthly.

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1,700 teu grd FCC, 6-12 mth TC

2,750 teu gls FCC, 6-12 mth TC

4,400 teu gls FCC, 6-12 mth TC

• Charter rates for all containership sizes softened duringAugust. By the end of the month, the benchmark one yearrate for a 2,750 TEU gearless boxship had fallen to$9,750/day, down 11% m-o-m, whilst the rate for a 1,000TEU geared boxship had dropped by 5% to $7,800/day. Inthe Panamax sector, the one year timecharter rate for a4,400 TEU containership declined by 8% m-o-m to reach$13,750/day. While charter rates have eased back inrecent weeks, rates still remain higher than at the end of2014. The one year rate for a 4,400 TEU Panamaxboxship averaged $8,771/day in full year 2014 and stoodat $10,150/day at the end of December, so current ratelevels still represent a notable improvement. However,current demand side signals remain relatively weak, andrecent weak data points have resulted in a downwardrevision to the projection for growth in global containertrade in 2015 to 4.6%, following growth of 5.3% in 2014.

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N.Sea Term, PSV, >900m2, £000/day (LHS)

W.Africa Term, PSV, >900m2, $000/day (RHS)

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Secondhand Prices

Oil Tanker End Year, $m Three Month Asset Play in Focus

Prices… 2012 2013 2014 Aug Trend…310,000 dwt d/h Resale 82.0 83.0 105.0 105.0 STEADY... 0%310,000 dwt d/h 5 yrs 57.0 60.0 77.0 84.0 STEADY... 2%300,000 dwt d/h 10 yrs 37.0 41.0 52.0 59.0 FIRMER... 11%300,000 dwt d/h 15 yrs 27.0 26.0 29.0 41.0 FIRMER... 24%160,000 dwt d/h Resale 55.0 57.0 72.0 73.0 STEADY... 3%160,000 dwt d/h 5 yrs 40.0 42.0 57.0 61.0 FIRM.... 4%150,000 dwt d/h 10 yrs 26.0 27.0 37.0 42.0 STEADY... 2%105,000 dwt d/h Resale 40.0 43.0 57.0 57.0 STEADY... 1%105,000 dwt d/h 5 yrs 27.5 32.0 42.0 46.0 STEADY... 1%105,000 dwt d/h 10 yrs 17.0 22.0 27.0 33.0 FIRM.... 7%73,000 dwt d/h Resale 35.0 41.0 45.0 50.0 FIRM.... 6%73,000 dwt d/h 5 yrs 25.0 31.0 33.5 37.5 FIRM.... 5%70,000 dwt d/h 10 yrs 16.5 21.0 23.5 25.0 FIRM.... 4%51,000 dwt d/h Resale 35.0 38.0 37.0 38.5 FIRM.... 3%47,000 dwt d/h 5 yrs 25.0 29.0 25.0 28.0 FIRM.... 4%45,000 dwt d/h 10 yrs 16.5 19.0 16.0 20.0 FIRM.... 7%45,000 dwt d/h 15 yrs 10.0 11.0 10.0 13.5 FIRMER... 8%37,000 dwt d/h 5 yrs 22.0 25.0 23.0 25.0 STEADY... 3%37,000 dwt d/h ^ 10 yrs 13.0 15.0 15.0 17.5 FIRM.... 6%19,999 dwt Chem S/S 5 yrs 21.5 24.5 26.8 27.5 STEADY... 3%5-y-o Tanker Index 112 129 131 144 FIRM.... 3%12 month Change -8% 15% 1% 12%Pre Jan-15: ^35k.

Bulkcarrier End Year, $m Three Month

Prices... 2012 2013 2014 Aug Trend…180,000 dwt Resale 40.0 54.0 54.0 47.0 STEADY... -2%180,000 dwt 5 yrs 32.5 44.0 39.0 35.0 STEADY... -2%170,000 dwt 10 yrs 21.0 31.0 27.5 20.0 SOFTER... -7%170,000 dwt 15 yrs 12.5 18.0 16.0 10.5 WEAKER.. -11%82,000 dwt Resale 28.5 33.0 31.0 28.0 STEADY... -2%76,000 dwt 5 yrs 18.0 25.5 20.0 18.0 STEADY... 3%75,000 dwt 10 yrs 13.0 18.0 14.5 12.0 SOFTER... -8%73,000 dwt 15 yrs 8.0 12.0 10.0 6.5 WEAKER.. -15%61,000 dwt * Resale 26.5 30.0 30.0 26.0 SOFTER... -4%56,000 dwt 5 yrs 19.5 24.5 20.5 15.5 SOFTER... -3%52,000 dwt 10 yrs 14.5 17.5 13.5 10.5 SOFTER... -5%45-48,000 dwt 15 yrs 9.0 11.0 9.0 6.0 SOFTER... -8%42-45,000 dwt 20 yrs 7.0 6.5 6.0 4.0 WEAKER.. -11%37,000 dwt Resale 21.8 23.5 24.0 21.0 STEADY... -2%32,000 dwt 5 yrs 15.5 19.0 17.0 13.0 SOFTER... -4%32,000 dwt 10 yrs 12.0 14.0 12.5 9.5 STEADY... -1%28,000 dwt 15 yrs 7.5 9.5 8.0 5.5 SOFTER... -8%5-y-o Bulker Index 105 135 116 93 STEADY... -2%12 month Change -25% 28% -14% -30%Pre Jan-14 (dwt): *58k.

Container & End Year, $m Three Month

Ro-Ro Prices 2012 2013 2014 Aug Trend …4,500 teu 5 yrs 25.5 20.0 19.0 20.0 STEADY... 0%2,750 teu 5 yrs 17.0 16.3 14.5 18.0 FIRM.... 8%1,700 teu 10 yrs 8.0 9.3 8.0 9.3 FIRM.... 8%10-y-o Container Index 36.6 37.1 24.7 39.5 FIRMER... 20%Ro-Ro 4,000 lm* 10 yrs 20.0 18.0 18.0 25.5 FIRM.... 6%Ro-Ro 2,500 lm* 10 yrs 21.0 17.0 17.0 20.0 FIRM.... 6%*Ro-Ro prices in euros, historical data converted using historical exchange rates

Clarkson End Year, Index Three Month

Index … 2012 2013 2014 Aug Trend …ALL VESSELS 96 111 102 102 STEADY... 1%Resale prices basis prompt delivery. 3-month trend: avg last 3 months vs avg previous 3 months. See SIN for full details of standard ship size history.


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Tanker Y-t-d Jul

Sales* .... 2014 2015 2015

Type: VLCC 80 32 2

Suezmax 38 34 8

Aframax 63 38 20

Handy/Pmax 207 134 16

Total No. Sales 388 238 46

Total DWT (,000) 44,951 24,589 4,698

Total Value ($ m) 11,556 7,529 1,415

Bulker Y-t-d Jul

Sales* .... 2014 2015 2015

Type: Capesize 54 42 4

Panamax 116 87 16

Handymax 129 89 14

Handysize 103 79 8


Total DWT (,000) 28,178 21,784 2,928

Total Value ($ m) 6,784 3,819 460

Other Y-t-d Jul

Sales .... 2014 2015 2015


Total dwt (,000s) 12,925 9,770 1,962

Total Value ($ m) 7,297 7,177 2,518

Total Y-t-d Jul

Sales ..... 2014 2015 2015

Buyers: Greece 241 174 30

Norway 56 43 11

Germany 41 41 6

China P.R. 102 81 16

UK 30 36 22

South Korea 57 27 2

Total No. Sales 1,332 926 152

Total Dwt (,000) 86,054 56,144 9,588

Total Value ($m.) 25,637 18,525 4,392

Average $/Dwt 298 330 458* Includes vessels over 10,000 dwt only. Sales of bulk vessels under 10,000 dwt and of non-bulk vessels are included in "Other Sales".

Clarksons Research i 28-Aug-15

Sale & Purchase Market

ALL DATA AND INFORMATION IN THIS REPORT ARE AS REPORTED UP TO NOON ON THE DATE OF PUBLICATION

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No. $m.

Sales Volumes & Values

Volume

Value

Tankers:

Despite the end of the seasonal holidays approaching, activity remains somewhat subdued in the tanker S&P market with only one confirmed transaction to report. Clients of Sovcomflot JSC have sold two late 90s built MR product carriers; the “AZOV SEA” (47,363 dwt, built 1998, Brod. Trogir, IMO III) and the “BERING SEA” (47,431 dwt, built 1998, Brodosplit, IMO III), for $8.1m each to undisclosed buyers. This transaction follows the sale of the “BARENTS SEA” (47,431 dwt, built 1998, Brodosplit, IMO III), which was sold last month for $8.5m and concludes the disposal of all the 90s built MR product carriers that the sellers acquired back in 2008.

Dry Cargo:

In the dry S&P market this week, it has transpired that the United Ocean controlled “UNITED JOURNEY” (82,580 dwt, built 2009, Tsuneishi Zosen) has been committed to clients of Thenamaris for a price in the region of $18m. By comparison, the same owners sold the year older sister vessel “UNITED CHALLENGER” (82,641 dwt, built 2008, Tsuneishi Zosen) to clients of Zhini Holding, Turkey for $15.9m at the beginning of July. Meanwhile, the geared Panamax “MARITIME PUTIAN” (73,652 dwt, built 2000, Imabari Shipbuilding, C4x30T) has been sold for a price in the region of the low $5ms, and the Post-Panamax “NORTH FORTUNE III” (91,439 dwt, built 2000, Oshima SB Co.) has been committed for a price in the region of $7m.

In the Supramax segment, the Japanese controlled ‘Tess 58’ design “TENNEI MARU” (58,693 dwt, built 2009, Tsuneishi Zhoushan, C4x30T) invited offers this week and has now been committed for a steady price in excess of $14m to Far Eastern buyers. Meanwhile, the ‘Crown 58’ design “SKOMVAER” (58,018 dwt, built 2010, Sinopacific Dayang, C4x36T) has been acquired by Greek buyers for about $13m. Lastly, another United Ocean controlled vessel “OCEAN CHIE” (52,370 dwt, built 2003, Tsuneishi Zosen, C4x30T) has been sold for a price in the region of the mid $7ms.

In the Handysize sector, clients of Vietnamese owner Tan Binh have purchased “ECO VANGUARD” (28,492 dwt, built 2001, Imabari SB, C4x30T) for about $6.2m. Finally, the Handymax “AETOS” (48,893 dwt, built 2001, I.H.I., C4x30T) was sold at auction in South Africa for $5.5m to clients of Kon-Quest, whilst the “DS COMMANDER” (45,518 dwt, built 1994, Tsuneishi Zosen, C4x25T, 7,528 ldt) has been sold to Greek buyers for about $3.4m.

Baltic Sale & Purchase Assessments (weekly)

(Based on max. 5-year old vessels, as published by the Baltic Exchange) As of the 24th August 2015.

VLCC (305,000 DWT): $80.528m Aframax (105,000 DWT): $44.948m MR Product tanker (51,000 DWT): $27.320m Capesize (180,000 DWT): $32.861m Panamax (74,000 DWT): $17.503m Super Handy (56,000 DWT): $15.428m Note: Clarksons Platou brokers did not contribute to the above Baltic Sale & Purchase Assessment rates.

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Recent Ship Sales by Vessel TypeVessel Type Vessel name Dwt/Unit Blt. Yard Date Price $m. Buyers

Tanker Shuttle Mattea 126,647 1997 Samsung HI 18-Aug 11 Undisclosed interests

Tanker D/Hull Alpine Marie 48,045 2009 Iwagi Zosen 07-Aug rumoured 22.5 Japanese interests

TankChem IMO III Bering Sea 47,431 1998 Brodosplit 25-Aug 8.1 Undisclosed interests

TankChem IMO III Azov Sea 47,363 1998 Brod. Trogir 25-Aug 8.1 Undisclosed interests

TankChem IMO II/III Miranda I 7,355 1995 Murakami Hide 18-Aug undisclosed Undisclosed interests

TankChem IMO II/III Maxwell Bay* 50,352 2012 Guangzhou SY Intl 14-Aug 30 Undisclosed interests

TankChem IMO II/III Halsted Bay* 51,371 2007 SLS Shipbuilding 14-Aug 23 Undisclosed interests

TankChem IMO III Super Star* 51,099 2008 STX SB (Jinhae) 14-Aug 24.5 Clients of Target Marine

TankChem IMO III Harbour Star* 51,069 2008 STX SB (Jinhae) 14-Aug 24.5 Clients of Target Marine

TankChem IMO II/III Nordic Helsinki 13,034 2007 Sekwang H.I. 13-Aug high 9 Vietnamese interests

TankChem IMO II Eships Dugon 13,146 2007 Hyundai Mipo 12-Aug 11.2 S.American interests

TankChem IMO II N/B RESALE HULL 25* 50,000 2016 Aker Philadelphia 11-Aug 568 Clients of Kinder Morgan

TankChem IMO II N/B RESALE HULL 26* 50,000 2017 Aker Philadelphia 11-Aug # Clients of Kinder Morgan



Offshore Tug Suiattle 1965 Main Iron Works 26-Aug undisclosed Alaskan interests

Offshore Surv Viking II 4,410 1999 Mjellem & Karlsen 21-Aug undisclosed European interests

Offshore PSV Skandi Fjord 1,951 1983 Kaldnes M.V. 19-Aug 1.5 German interests

Dry MPP 962 teu. Asiaborg* 17,300 2007 Hudong Zhonghua 25-Aug 13.6 European interests

Dry MPP 962 teu. Australiaborg* 17,356 2007 Hudong Zhonghua 25-Aug 13.6 European interests

Dry MPP 912 teu. Macao 19,366 2010 Hudong Zhonghua 14-Aug 30 German interests

Container 1,900 teu. Klaus J* 26,262 1997 Meeres-Technik 25-Aug undisclosed Far Eastern interests

Container 1,900 teu. Helene J* 26,262 1997 Meeres-Technik 25-Aug undisclosed Far Eastern interests

Container 2,762 teu. Leo Osaka 43,093 2003 Koyo Dock K.K. 20-Aug 9.2 Undisclosed interests

Container 508 teu. Corsa 5,300 1998 J. J. Sietas 14-Aug 1.6 Undisclosed interests

Container 1,550 teu. Hansa Kristiansand 20,630 2002 Guangzhou Wenchong 12-Aug undisclosed Clients of Costamare

Container 3,429 teu. Zim China* 45,850 1997 Howaldtswerke Werft 11-Aug 7.8 Clients of Zhongyu

Container 3,429 teu. Zim USA* 46,350 1997 Howaldtswerke Werft 11-Aug 7.8 Clients of Zhongyu

Container 1,550 teu. Hansa Aalesund 20,700 2001 Guangzhou Wenchong 11-Aug 6.1 Clients of Koenig

Bulk 4x25t cr. DS Commander 45,518 1994 Tsuneishi Zosen 28-Aug region 3.4 Greek interests

Bulk 4x30t cr. Ocean Chie 52,370 2003 Tsuneishi Zosen 28-Aug mid 7 Undisclosed interests

Bulk 4x30t cr. Tennei Maru 58,693 2009 Tsuneishi Zhoushan 28-Aug excess 14 Far Eastern interests

Bulk Str. Hvy. United Journey 82,580 2009 Tsuneishi Zosen 27-Aug region 18 Clients of Thenamaris

Bulk Str. Hvy. Maritime Putian 73,652 2000 Imabari SB Marugame 27-Aug region 5 Undisclosed interests

Bulk 4x30t cr. Aetos 48,893 2001 I.H.I. 27-Aug auction 5.5 Clients of Kon-Quest

Bulk Gearless Genius* 170,057 2010 Sungdong SB 26-Aug 183 Clients of Seanergy

Bulk 4x30t cr. Gladiator* 56,785 2012 CSC Jinling Shipyard 26-Aug # Clients of Seanergy

Bulk Str. Hvy. Glorius* 171,314 2004 Hyundai Samho HI 26-Aug # Clients of Seanergy

Bulk Gearless Eternus* 170,018 2010 Sungdong SB 26-Aug # Clients of Seanergy

Bulk Str. Hvy. Maximus* 179,238 2011 Sungdong SB 26-Aug # Clients of Seanergy

Bulk Str. Hvy. Generous* 170,024 2010 Sungdong SB 26-Aug # Clients of Seanergy

Bulk 4x36t cr. Mystic Striker* 56,884 2011 CSC Jinling Shipyard 26-Aug # Clients of Seanergy

Bulk 4x30t cr. Eco Vanguard 28,492 2001 Imabari SB (Imabari) 25-Aug region 6.2 Clients of Tan Binh

Bulk 4x36t cr. Skomvaer 58,018 2010 Sinopacific Dayang 25-Aug region 13 Greek interests

Bulk 4x30t cr. Great Morning 28,710 2004 Shin Kochi Jyuko 25-Aug region 7 Vietnamese interests

Bulk Str. Hvy. North Fortune III 91,439 2000 Oshima SB Co 25-Aug region 7 Undisclosed interests

Bulk Str. Hvy. Grain Pearl 81,630 2013 Guangzhou Longxue 21-Aug low 17 Greek interests

Bulk Str. Hvy. Alpha Glory 72,270 1999 Imabari SB Marugame 20-Aug 5.3 Undisclosed interests

Bulk 4x36t cr. Port Mouton 53,299 2006 New Century S/Y 20-Aug 6.7 Clients of St Michael

Bulk 4x30t cr. Shirakami 52,224 2008 Oshima SB Co 20-Aug 10.85 Greek interests

Bulk Str. Hvy. Star Claudia 71,694 1997 Hitachi Zosen 18-Aug 3.7 Chinese interests

Bulk Str. Hvy. Ostende Max* 73,207 1998 Sumitomo (Yokosuka) 14-Aug region 4.5 Undisclosed interests

Bulk Str. Hvy. Antwerp Max* 73,144 1998 Sumitomo (Yokosuka) 14-Aug region 4.5 Undisclosed interests

Bulk 4x30t cr. Force Ranger 45,950 1996 CSBC (Keelung) 14-Aug region 4 Undisclosed interests

Bulk Str. Hvy. Pacific Wind 28,437 2007 Shimanami SB 12-Aug 8.6 Vietnamese interests

Bulk 4x30t cr. Ma Sik Ryong 18,612 1987 Uwajima Zosen 12-Aug at auction 1 Clients of Capeshore Maritime

Bulk Gearless Pinchat 81,290 2012 Hyundai HI 12-Aug 21.5 Greek interests

Bulk 4x45t cr. N/B RESALE HULL 12024B* 64,000 2015 Sainty SB (Yangzhou) 11-Aug 19.9 Clients of Clipper Group

Bulk 4x45t cr. N/B RESALE HULL 12025B* 64,000 2015 Sainty SB (Yangzhou) 11-Aug 19.9 Clients of Clipper Group

Bulk Gearless Umberto D'Amato 93,263 2011 Jiangsu New YZJ 11-Aug 14.8 Undisclosed interests

Bulk 4x36t cr. N/B RESALE HULL HT64-209 63,800 2015 Jiangsu Hantong HI 11-Aug 22.5 Undisclosed interests

Bulk 4x30.5t cr. Eco Wildfire 33,190 2015 Kanda S.B. Co. 11-Aug undisclosed Clients of Brave Maritime

Bulk Str. Hvy. Houheng 2 179,929 2011 HHIC-Phil (Subic SY) 07-Aug 31 European interests

* En bloc Sales. #En Bloc price shown under first ship of bloc.

Clarksons Research ii 28-Aug-15

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Fleet Changes, Bunkers & Capital Market Activity

Cargo Fleet Oil Tanker Fleet Bulk Carrier Fleet Containership Fleet

Changes 2014 2015 to date 2014 2015 to date 2014 2015 to date

(No. Vessels , 000dwt/teu) No. 000 Dwt No. 000 Dwt No. 000 Dwt No. 000 Dwt No. 000 Teu No. 000 TeuFleet 1st January 5,804 500,864 5,887 508,201 10,102 725,412 10,398 757,157 5,080 17,137 5,107 18,242Changes: Deliveries 185 16,576 174 13,241 609 48,078 457 34,556 201 1,489 136 1,143

Sold For Scrap 93 7,629 36 1,838 314 16,314 306 22,468 173 384 51 94Misc. Additions 2 620 6 97 1 0.5Misc.Removals/Losses 9 1,610 4 470 5 115 3 310 2 1

Net Change During Year 83 7,337 136 11,553 296 31,745 148 11,778 27 1,104 85 1,049Fleet End Yr/ Yr to Date 5,887 508,201 6,023 519,755 10,398 757,157 10,546 768,935 5,107 18,242 5,192 19,290% Change Since Start Year 1.4% 1.5% 2.3% 2.3% 2.9% 4.4% 1.4% 1.6% 0.5% 6.4% 1.7% 5.8%Tankers and bulkcarriers over 10,000 dwt only are included in the analysis in this table. Great Lakes Only vessels are excluded.

Deliveries to the World FleetType Date Vessel Name Flag Year Dwt Owner Shipyard & Yard No. Contracted

Built PriceBulk Aug'15 Medi Matsuura PA. 2015 81,788 Eiko Kisen Tsuneishi Zosen 1545

Bulk Aug'15 Mehmed Fatih MA. 2015 180,025 Ciner Denizcilik Hanjin HI (Yeongdo) 252 $m 55.00

Bulk Aug'15 STH Athens M.I. 2015 60,508 Unknown Mitsui Shipbuilding 1898

Container Aug'15 CMA CGM Bougainville FR. 2015 186,528 CMA-CGM Samsung HI 2094

Open Hatch Aug'15 Port Phillip Bay PA. 2015 37,595 Mitsui O.S.K. Lines Oshima SB Co 10710

AHT Aug'15 Lanpan 34 SG. 2015 800 Lanpan Guangxi Guijiang SY GJ01-2013-07

AHT Aug'15 Atlantis NE. 2015 200 Seacontractors Damen Song Cam 511801

Bulk Aug'15 Great Victory H.K. 2015 79,933 Sinotrans Shpg. Ltd. Jiangnan SY Group H2559

Bulk Aug'15 Great Progress H.K. 2015 64,000 Sinotrans Shpg. Ltd. CSC Jinling Shipyard JLZ9130433 $m 25.80

L.P.G. Aug'15 Kisber SG. 2015 9,000 Petredec Kyokuyo Shipyard 519

Container Aug'15 OOCL Genoa H.K. 2015 101,400 OOCL Hudong Zhonghua H1667A

L.P.G. Aug'15 Oscar Niemeyer BZ. 2015 5,079 Transpetro VARD Promar EP01

ROV/Sub Spt Aug'15 Fugro Aquarius BZ. 2015 1,250 Fugro Brasil Wilson Sons 556064

PSV Aug'15 Mamola Defender MA. 2015 3,310 Promar Shipping Damen Gorinchem 552038Crew/Fast Supply Aug'15 Emily Day McCall AM. 2015 550 Seacor Marine C & G Boat Works 126

AHTS Aug'15 Tag 15 IN. 2015 1,100 TAG Offshore Nanjing East Star ESS110111

Products/MPP Aug'15 Balt Flot 3 RS. 2015 5,589 Balt Flot Tanker Okskaya Shipyard 5403

Products/MPP Aug'15 Balt Flot 2 RS. 2015 5,589 Balt Flot Tanker Okskaya Shipyard 5402

Chem & Oil Aug'15 Bochem Luxembourg H.K. 2015 19,999 CMB Kitanihon Zosen 602

L.P.G. Aug'15 Navigator Centauri LI. 2015 16,680 Navigator Gas Jiangnan SY Group 2554 $m 45.00

Container Aug'15 Mackinac Bridge JA. 2015 145,500 K-Line Imabari SB Hiroshima 2535

Container Aug'15 Meridian SG. 2015 30,350 Schulte Group Zhejiang Yangfan 2297 $m 25.50

Ethy/LPG Aug'15 Taugas AT. 2015 15,135 Sloman Neptun Schiff STX SB (Jinhae) 4033 $m 33.00

Container Aug'15 Orea MA. 2015 25,044 Eastern Med. Mar. Huangpu Wenchong 446

Regional Prices This

Bunker Prices 2013 2014 2015 Aug 21 Aug 28 2013 2014 2015 Aug 21 Aug 28 Week (380 cst)Rotterdam 903 818 520 433 402 594 533 295 228 199 DOWN... -12.5%Hamburg 937 875 550 473 427 605 543 305 236 208 DOWN... -11.7%Genoa 973 903 585 503 472 617 561 319 251 215 DOWN... -14.3%Gibraltar 972 890 571 488 459 622 557 317 248 221 DOWN... -10.7%Philadelphia 998 977 608 495 455 615 577 334 263 228 DOWN... -13.3%Houston 997 935 595 480 470 602 547 306 231 213 DOWN... -7.8%Cristobal 1029 988 623 540 500 618 561 317 239 204 DOWN... -14.6%Los Angeles 1013 926 599 515 490 631 570 317 260 255 DOWN... -1.9%Japan - - - - - 657 607 376 285 248 DOWN... -13.0%Singapore 927 858 536 423 415 616 561 325 243 216 DOWN... -11.1%Fujairah 1002 961 738 673 643 617 563 327 249 211 DOWN... -15.3%

Capital Market Trends

Activity 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 This YearShipping IPOs 8 5 15 15 6 1,016 614 2,969 1,637 514 DOWN... -53%Shipping Follow Ons 13 16 60 56 24 1,750 3,037 6,735 8,260 2,444 DOWN... -56%Shipping Bonds 66 67 61 54 18 12,253 13,473 11,304 10,178 2,696 DOWN... -61%Total Shipping 87 88 136 125 48 15,019 17,123 21,008 20,075 5,654 DOWN... -58%Total Offshore^ 73 76 97 78 15 21,456 20,762 19,091 15,619 2,609 DOWN... -75%Total Shipyard^ 16 28 15 23 5 3,716 10,761 3,007 6,879 1,101 DOWN... -76%

Clarksons Research iii

Data includes companies whose core activity is owning merchant vessels, offshore units, or shipbuilding. ^Totals for Offshore and Shipyard activity include IPOs, follow ons, and bonds. Trends this year based on annualised figures for this year against last year. For further information see Shipping Intelligence Network and Capital Market Monthly.

Number $ Million

28-Aug-15

Average MGO Price, $/tonne Average 380 cst Price, $/tonne

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Latest Tanker Timecharter Fixtures...Reported Charterer Vessel Name D / Year Dwt Ice LR Ext. Period Rate Delivery

C Built equiv. $ per Day Date Place

17-Aug Scorpio Hamburg Star D 2005 73,869 2 Yrs $20,000 Aug 15 West

17-Aug Koch Overseas Mykonos D 2010 51,711 6 Mths low $17,000 Aug 15 ARA

07-Aug Penfield SN Azzura D 2003 72,365 2 Yrs circa $20,000 Aug 15

07-Aug Penfield SN Federica D 2003 72,344 2 Yrs circa $20,000 Aug 15

07-Aug Navig8 FD Sea Wish C 2002 40,081 2 Yrs $16,500 Sep 15 Med

07-Aug Unipec Taga D 2004 303,430 1 Yr + 1 Yr $45,000 Aug 15 Spore

23-Jul Scorpio Valfoglia/Vallesnia D 2009 109,060 1 Yr $26,000 net Aug 15

21-Jul UPT Cape Bille C 2003 35,089 2 Yrs $15,200 + pshare Oct 15

21-Jul UPT Cape Bruny C 2004 39,999 2 Yrs $15,200 + pshare Oct 15

20-Jul Cargill Jing Yu Zuo C 2010 75,568 1D 1 Yr $20,250 Jul 15 South China

20-Jul Koch Bright Dawn C 2007 50,650 3 Mths $21,000 Jul 15 East Med

13-Jul Shell Baltic Glory D 2005 309,375 2 Yrs low $30,000's + pshare Jul 15 Singapore

13-Jul Shell Baltic Sunrise D 2005 309,375 2 Yrs low $30,000's + pshare Jul 15 Singapore

13-Jul Shell Hua Lin Wan D 2012 109,475 1D 1 Yr RNR Jul 15 China

10-Jul Koch Turris C 2004 70,426 2 Yrs $20,500 Dec 15

07-Jul Koch New Century C 2005 73,901 1 Yr $22,500 Jul 15 D/C

02-Jul Koch Fulham Road C 2013 74,500 1 Yr $26,000 Jul 15 West

02-Jul Koch Kondor D 2011 297,974 2 Yrs $44,000 Aug 15 Singapore

02-Jul Navig8 Aldebaran C 2014 37,886 6 Mths $18,750 Jul 15 East Med

02-Jul Navig8 Superba C 2014 39,700 6 Mths $18,750 Jul 15 Central Mediterranean

29-Jun Scorpio Jenny I D 2003 40,128 1 Yr $16,000 Jul 15 East Med

25-Jun Cargill Gan-Tribute C 2010 51,556 1 Yr $17,000 Aug 15 Singapore

25-Jun ST Shipping United Ambassador D 2007 73,584 1 Yr $22,000/$24,000 Jun 15 US Gulf

05-Jun Petrochina Green Warrior D 2011 104,604 60-90 Days $36,500 Jun 15

02-Jun Koch St Jacobi C 2014 50,209 6 Mths $18,000/$18,500 Jun 15

02-Jun Koch Swarna Mala C 2010 51,277 1 Yr $16,750 Jun 15

29-May Shell DS Vector D 2001 298,990 1 Yr $43,500 Jun 15

28-May Shell MR Pegasus C 2009 50,070 6 Mths $17,250 Jun 15

Latest Dry Bulk Timecharter Fixtures...Reported Charterer Vessel Name Year Dwt Cbm Gear Period Rate Delivery

Built $ per Day Date Place26-Aug Panoceanic Thor Fortune 2011 54,250 63,847 4C x 36T 3-5 Months $14,000 Prompt US Gulf

25-Aug Transgrain Alcyon 2001 75,247 89,000 8-11 Months $7,600 22Aug PG

24-Aug Polaris Akili 2001 52,301 67,756 4C x 30T 4-6 Months $8,250 Prompt Mesaieed

24-Aug Klaveness Viola 2008 58,729 72,360 4C x 30T 10-15 Months $8.1k, $6k 1st 30 days Prompt Singapore

24-Aug Glencore Crystalia 2014 77,525 90,725 10-13 Months $9,000 28Aug Sual

24-Aug Graincom Diamond Ocean 2014 81,200 97,138 4-6 Months $8,500 Prompt Kagoshima

21-Aug Jaldhi Shandong Hai Xing 2014 75,491 92,070 4-8 Months $8,000 30Aug Taiwan

21-Aug Louis Dreyfus Pictor 2002 76,598 90,740 6-9 Months $7,700 24Aug-25Aug CJK

21-Aug Cobelfret Maritime King 2011 95,675 109,476 6-8 Months $8,250 30Aug-05Sep Zhoushan

21-Aug Louis Dreyfus Bulk Pegasus 2009 58,736 72,360 4C x 30T 3-5 Months $14,250 Prompt US Gulf

20-Aug Trammo Thor Independence 2001 52,407 67,756 4C x 30T 4-6 Months $11,500 21Aug-25Aug Liverpool

20-Aug Cargill Western Wilton 2011 57,981 71,549 4C x 36T 3-5 Months $8,250 Prompt CJK

19-Aug Refined Success Santa Julia 2009 55,701 70,855 4C x 30T 3-5 Months $12,000 Prompt East Med

17-Aug Phaethon Shi Zi Shan 2011 56,605 71,634 4C x 30T 5-7 Months $11,500 Prompt Antwerp

17-Aug Hudson Red Gardenia 2005 76,294 91,357 4-8 Months $7,000 14Aug-16Aug Zhoushan

17-Aug China Shipping Artemis 2006 76,942 92,128 1 Years $7,500 Prompt CJK

17-Aug United Pedhoulas Farmer 2012 81,541 96,072 5-8 Months $9,100 14Aug-15Aug Krishnapatnam

17-Aug CNR Star Nasia 2006 82,220 97,233 5-8 Months $9,000 Prompt Rizhao

17-Aug EGPN Concordia 2011 82,499 96,170 4-6 Months $9,000 16Aug-18Aug Tachibana

17-Aug EDF Barock 2007 82,668 97,233 2 Years $8,300 14Aug-15Aug Tianjin

14-Aug Norden Navios Aldebaran 2008 76,529 90,740 5-8 Months $8,000 17Aug-20Aug Singapore

14-Aug Oldendorff Medi Taipei 2003 76,633 89,384 4-8 Months $8,000 20Aug-22Aug Zhoushan

14-Aug CNR Zhe Hai 505 2011 35,130 44,000 4C x 30T 4-6 Months $8,000 19Aug-25Aug Durban

14-Aug Bunge Spar Lynx 2005 53,565 65,730 4C x 36T 4-6 Months $9,500 17Aug-21Aug Buenaventura

14-Aug Glovis NM Sakura 2015 60,948 77,240 4C x 30T 3-5 Months $15,750 23Aug-28Aug Sw Passage

13-Aug Ultrabulk Ocean Bloom 2012 38,233 47,125 4C x 30T 4-6 Months $9,000 Prompt East Med

13-Aug Oldendorff Simge Aksoy 2006 53,393 65,752 4C x 36T 3-5 Months $7,900 Prompt Persiangulf

Clarksons Research iv 28-Aug-15

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The Timecharter Market Tanker Timecharter Market

Timecharter Rates Average Rate $/day To Date Aug T/C Activity & The Freight Market2012 2013 2014 2015 28 VLCC (Modern)

One Year Timecharter310,000 Dwt Modern 22,125 19,837 28,115 46,886 48,000150,000 Dwt Modern 17,356 16,014 22,712 35,014 36,000110,000 Dwt Modern 13,639 13,288 17,538 25,229 29,00074,000 Dwt Modern 12,995 14,981 15,880 22,414 27,00047-48,000 Dwt Modern 13,514 14,351 14,630 17,086 20,00037,000 Dwt Modern 12,317 13,063 13,774 15,193 17,500

Three Year Timecharter310,000 Dwt Modern 26,995 23,404 30,183 42,500 43,500150,000 Dwt Modern 20,952 18,096 24,413 32,814 33,500110,000 Dwt Modern 15,870 15,048 19,029 23,729 25,00074,000 Dwt Modern 14,168 15,514 16,466 19,586 22,50047-48,000 Dwt Modern 14,389 15,063 15,399 15,893 17,00037,000 Dwt Modern 13,178 13,707 14,678 14,764 16,250

Five Year Timecharter310,000 Dwt Modern 30,827 27,481 32,154 41,400 40,000110,000 Dwt Modern 18,423 16,856 20,317 23,257 23,00047-48,000 Dwt Modern 14,962 15,567 16,063 16,007 16,500

T/C Activity… To Date

...over 1 year 2011 2012 2013 2014 2015

VLCC 200,000 + 13 26 12 30 42Suezmax 120-200,000 13 20 14 25 27Aframax 80-120,000 12 21 42 61 38Panamax 60-80,000 10 21 27 28 20Handy 10-60,000 60 108 139 101 72

Total No. Fixtures 108 196 234 245 199

Total in m. dwt 10.9 19.9 18.9 26.5 26.4

Estimated owners' rates. Modern=no more than 10 years old.

Bulk Carrier Timecharter Market

Timecharter Rates Average Rate $/day To Date Aug T/C Activity & The Freight Market(Average Pac/Atl Delivery) 2012 2013 2014 2015 28 Capesize (Modern)One Year Timecharter…Capesize Modern 13,685 15,760 21,751 10,361 10,625Panamax Modern 9,706 10,099 12,035 7,617 8,200Supramax Modern 10,130 10,034 11,385 7,936 8,500Handysize Modern 8,234 8,106 9,012 6,857 6,750Three Year Timecharter…Capesize Modern 15,082 16,413 20,889 11,466 11,250Panamax Modern 10,688 10,125 13,050 8,628 8,400Supramax Modern 10,995 10,284 11,385 8,207 8,250Handysize Modern 9,250 8,726 9,346 7,236 7,000Five Year Timecharter…Capesize Modern 16,798 17,303 21,038 12,891 11,500

Panamax Modern 11,798 10,870 13,935 9,911 9,200Supramax Modern 11,755 10,928 11,428 8,429 8,250Handysize Modern 10,250 9,385 9,519 7,429 7,250

T/C Activity… To Date

...over 1 year 2011 2012 2013 2014 2015

Capesize 100,000 + 32 20 33 61 25Panamax 65-100,000 72 55 78 70 31Handymax 40-65,000 36 18 11 9 2Handysize 10-40,000 7 3 1 3 0

Total No. Fixtures 147 96 123 143 58

Total in m. dwt 13.6 8.9 12.7 16.8 6.4

Clarksons Research Page 9 28-Aug-15

Total Fixtures

Total Fixtures

Tanker and bulk carrier T/C activity size ranges reflect existing CRSL ship type definitions. Modern is taken to mean no more than 10 years old. A wider selection of bulkcarrier timecharter rates are available on Shipping Intelligence Network at www.clarksons.net.

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• Tanker timecharter activity this week… The guideline one year VLCC timecharter rate declined by 2% w-o-w to stand at $48,000/day, although this is still significantly higher than the 2014 annual average.Meanwhile, the one year timecharter rate for an MR also fell this week to $20,000/day, taking the year to date average to $17,086/day.

• Bulk carrier timecharter activity this week… The 2008-built Supramax “VIOLA” was chartered by Klaveness this week for 10-15 months at $6,000/day for the first 30 days, followed by an increase to $8,100/day for the remaining period. Other activity included the 2014 built Panamax “CRYSTALIA” chartered by Glencore for 10-13 months at $9,000/day.

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The Shipbuilding Market What's Been Ordered...

S Type Date Dwt/Unit Delivery Builder Price Owner/Manager*5 Tanker Aug-15 320,000 2018 Mitsui Shipbuilding Mitsui & Co

5 Tanker Aug-15 320,000 2018 Mitsui Shipbuilding Mitsui & Co

5 Tanker Aug-15 320,000 2019 Mitsui Shipbuilding Mitsui & Co

5 Tanker Aug-15 320,000 2018 Mitsui Shipbuilding Nissen Kaiun K.K.5 Tanker Aug-15 320,000 2019 Mitsui Shipbuilding Nissen Kaiun K.K.5 Tanker Aug-15 320,000 2018 JMU Ariake Shipyard K-Line5 Tanker Aug-15 320,000 2018 JMU Ariake Shipyard Iino Kaiun Kaisha5 Chem & Oil Aug-15 25,000 2018 Shin Kurushima Tokyo Marine Co. Ltd

5 Chem & Oil Aug-15 25,000 2018 Shin Kurushima Tokyo Marine Co. Ltd

5 Chem & Oil Aug-15 25,000 2018 Shin Kurushima Tokyo Marine Co. Ltd

5 Bulk Aug-15 39,300 2017 Jiangmen Nanyang Unknown Chinese




17 Wind T. (SE) Aug-15 Jan 2018 Xiamen Shipbuilding Unknown Chinese

5 PSV Aug-15 3,000 Mar 2017 Arctech Shipyard Eur.m 125.00 Mintrans Russia

5 PSV Aug-15 3,000 Jun 2017 Arctech Shipyard Eur.m 125.00 Mintrans Russia

5 Tanker Aug-15 115,000 Sep 2017 Samsung HI $m 55.00 Unisea Shipping Ltd.

5 Tanker Aug-15 115,000 Dec 2017 Samsung HI $m 55.00 Unisea Shipping Ltd.

5 Chem & Oil Aug-15 50,000 Jan 2017 Hyundai Mipo $m 35.70 Scorpio Tankers

5 Chem & Oil Aug-15 50,000 Mar 2017 Hyundai Mipo $m 35.70 Scorpio Tankers

5 Chem & Oil Aug-15 50,000 Apr 2017 Hyundai Mipo $m 35.70 Scorpio Tankers5 Chem & Oil Aug-15 50,000 Jun 2017 Hyundai Mipo $m 35.70 Scorpio TankersS=Status, where: 5=confirmed order, 16=unconfirmed order, 17=option. Other units are: teu for containerships, cbm for gas vessels, numbers of cars or passengers.* The Primary Reference Company, as used in the Clarkson Fleet Database i.e. the company with the main commercial responsibility for the ship.

Newbuilding Year End, $m. Three Month Shipbuilding News

2012 2013 2014 Aug

TankersVLCC 320,000 dwt 93.0 94.0 97.0 95.5 WEAKER... -0.9%Suezmax 157,000 dwt 56.5 59.5 65.0 64.5 WEAKER... -0.5%Aframax 115,000 dwt 48.0 52.3 54.0 53.0 WEAKER... -0.6%'MR' Tanker 51,000 dwt 34.0 34.8 36.8 35.5 WEAKER... -1.4%Bulk CarriersCapesize 180,000 dwt 46.0 53.5 54.0 48.5 WEAKER... -4.6%Panamax 76,000 dwt 25.8 27.8 29.0 26.3 WEAKER... -3.1%Handymax 62,000 dwt 24.3 26.5 27.0 24.8 WEAKER... -2.6%Handysize 35,000 dwt 21.0 22.3 23.0 21.0 WEAKER... -2.7%Gas VesselsLPG 82,000m³ 70.0 74.5 79.0 77.0 WEAKER... -0.2%LNG 160,000m³ 199.5 198.0 200.0 200.0 SAME.......Dry CargoContainer 13,000 teu 107.0 113.5 116.0 116.0 SAME.......Container 2,750 teu 30.5 31.5 32.5 30.5 WEAKER... -0.5%Pure Car Carrier 6,000 ceu 64.5 66.5 64.0 59.0 WEAKER... -1.4%

Clarkson Index 126 133 138 133 WEAKER.... -0.2%

Newbuilding Vessels Contracted Year-on-Year Newbuilding Price Index

2012 2013 2014 2015

Oil Tankers 88 206 169 145 FIRMER... 31%Chemical & Spec. Tankers 156 323 193 45 WEAK…. -64%LPG Carriers 56 122 110 16 WEAK…. -78%LNG Carriers 39 46 72 22 WEAK…. -53%Bulk Carriers 357 1,254 759 66 WEAK…. -87%Containerships 81 279 146 125 FIRMER... 30%General Cargo Vessels 67 93 87 50 WEAK…. -12%Ro-Ro Vessels 45 57 30 24 FIRMER... 22%Refrigerated Vessels 1 2 7Offshore Vessels 557 584 420 95 WEAK…. -66%FPSO/FSU 8 5 7 1 WEAK…. -78%Passenger & Cruise Ships 38 63 54 18 WEAK…. -49%Other Misc. Vessels 28 24 19 4 WEAK…. -68%TOTAL CONTRACTING 1,521 3,058 2,073 611 WEAK…. -55%


Prices .... Trend ...

Activity .... Trend ...

Newbuilding prices vary as to country of build, delivery and ship specification. Prices here are end year/latest and from Jun-08 assume a "European spec", 20/20/20/20/20% payments and "first class competitive yards" quotations, and relate to market contracts where these have taken place and to brokers' best estimates when no contracts have occurred. 3-month trend basis last 3 vs previous 3 months.

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Ten year trend innewbuilding

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• Whilst the newbuilding market maintains some momentum in terms of ongoing discussion, for the first time in some months we have no fresh orders to report this week. As we come to the end of the traditionally quiet summer period, it is an opportune time to briefly review ordering activity in 2015 so far. A total of 611 newbuilding contracts have been placed in the ytd, compared to over 1,650 orders signed over the same period in 2014. Just over 10% of this year’s contracts have been placed in the dry bulk sector with the vast majority of orders for Handysize up to Post-Panamax bulkers. Crude tankers make up around a sixth of orders in 2015 so far with interest split across the Aframax, Suezmax and VLCC sectors, though the latter has seen the largest number of orders (around 45 units). The product carrier market, including MR tankers up to LR2 ships, has seen around 50 orders and around 25 chemical tankers (<40,000 dwt) have been ordered. Boxship orders account for around a fifth of the ytd total, with interest for 1,800 TEU feeders up to 21,000 TEU behemoths. Most sizes inbetween have also seen some activity.

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The Demolition Market What's Been Scrapped...

Type Date Vessel Name Flag Blt Dwt Ldt Owner Buyer $/ldt $ m.Bulk Aug '15 Cape Falcon 1993 161,475 19,574 Zodiac Maritime Agy Old sale

Bulk Aug '15 Matsura Maru 1990 139,999 19,280 Hachiuma Steamship India 295.0 5.69

Bulk Aug '15 Preventer 1990 69,995 SNP Shipping Service India 331.0

Ore Aug '15 Rebekka N 1990 249,378 35,615 Neu Seeschiffahrt Pakistan 325.0 11.57

Tanker Aug '15 Mex III 1989 44,575 11,557 Unknown India

Tanker Aug '15 Ralda 1981 31,543 8,169 Shipmate Bangladesh

Bulk Aug '15 Zhen Fen 15 1992 19,753 CSCL PRC

Supply Aug '15 GSO Marechal Rondon 1975 965 Vestland Marine Old sale

Supply Aug '15 Beka 3 1973 1,755 Hempel Shipping Old sale

Seis. Survey Aug '15 Ocean Explorer 1979 2,632 PGS Denmark

Seis. Survey Aug '15 Falcon Explorer 1985 1,329 PGS Denmark

MPP Aug '15 Samskip Akrafell 2003 5,565 Samskip H/F Old sale

Open Hatch Aug '15 Star Atlantic 1986 30,402 7,726 Grieg Star Old sale

Research Aug '15 Fugro Gemini 1987 143 Fugro Survey Unknown

AHTS Aug '15 Jade Fish 1982 1,440 Trinity Offshore India

CS/BW Dredger Aug '15 Hercules 1977 840 3,280 Van Oord Turkey

Bulk Aug '15 Bei Lun Hai 36 1990 65,702 11,948 Ningbo Longsheng Sh. Old sale

MPP Aug '15 Gofer B 1983 4,800 Beserler Denizcilik Turkey

Bulk Aug '15 C. Royal 1996 151,044 17,992 Chang Myung Shipping Pakistan 325.0 5.85

Bulk Aug '15 Chang Bai Shan 1986 39,036 Guangzhou Zhenhua Old sale

Standby Safety Aug '15 Aurelia 1971 Unknown Old sale

PCC Aug '15 Marine 1 1992 5,260 Unknown Old sale

MPP Aug '15 E. Karakaya 1991 7,148 Unknown Belgium

Scrap Year End ($/ldt) This Year Scrapping Price Trends

Prices... 2012 2013 2014 Latest %

Tankers 420 435 450 305 -32%

Dry Cargo 405 425 420 320 -24%

Buyer Year (m dwt) This Year

Activity... 2012 2013 2014 2015 %

China 12.1 11.1 8.3 4.7 -15%

India 18.3 11.8 8.8 5.1 -14%

Bangladesh 13.6 11.8 6.9 9.0 93%

Pakistan 10.2 9.4 6.9 6.0 28%

Other 4.2 2.7 2.6 3.4 90%

TOTAL 58.5 46.8 33.6 28.2 28%

Size & Year (m dwt) This Year

Type... 2012 2013 2014 2015 % Demolition Market News

Tankers VLCC 2.7 5.0 2.7 0.5 -70%

Suezmax 3.0 1.0 1.1 -100%

Aframax 3.5 2.4 2.4 0.2 -88%

Handy 2.3 2.3 1.8 1.1 -8%

< 10,000 dwt 0.2 0.1 0.1 0.0 -75%

Total Tankers 11.9 10.8 8.0 1.9 -66%

Bulkcarriers

Capesize 11.7 7.9 4.2 12.3 330%

Panamax 8.7 5.0 4.8 4.5 39%

Handymax 4.7 3.5 3.0 2.0 -2%

Handysize 8.3 6.7 4.2 3.7 32%

Total Bulkers 33.4 23.1 16.2 22.5 106%

Containerships 5.0 6.3 5.5 1.4 -62%

Gas Vessels 0.2 0.4 0.3 0.2 9%

Other Dry 8.0 6.2 3.6 2.2 -7%

TOTAL 58.5 46.8 33.6 28.2 24%* The % change is based on annualised figures for this year against last year.


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Note: The scrap prices ($/ldt) are based on Indian prices for VLCC tankers and a Handy dry bulk carrier of around 8,000 ldt.

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Tankers - IndiaHandy Bulk - IndiaTankers - Bangladesh

• Strike while the iron is hot! This is the market feeling as prices for tonnage heading to India have risen significantly from previous weeks’ levels. Owners may benefit from this improved sentiment if they move quickly as it is not clear how long it will last. This reversal in sentiment has come as a major surprise - despite a stronger domestic steel market, the continued depreciation of the Rupee makes the Indian demolition market very hard to predict. Currently, Indian scrap rates are around $20/ldt higher than those in Bangladesh and Pakistan, making it the likely destination for new tonnage, specifically the more conventional units. However, as illustrated by the reported sales, a larger ldt unit will still attract some serious competition from Pakistan. With no beaching tides to aim for, no major custom formalities prior to tendering the Notice of Readiness and cheaper port dues, the waterfront at Gadani can still attract owners who are not aiming for ‘green’ standards of recycling. While 75 Capesize bulkers have now been sold for scrap this year, it is highly unlikely that the Bangladeshi market will see many more units arriving to its shores as the cartel currently in place is seeking price levels considerably lower than in other recycling destinations.

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Economic IndicatorsGDP Growth & Forecasts*

China Japan USA Germany Euro Area World2012 7.8% 1.5% 2.3% 0.9% -0.8% 3.4%2013 7.8% 1.6% 2.2% 2.1% -0.5% 3.4%2014 7.4% -0.1% 2.4% 1.6% 0.9% 3.4%4Q14 7.3% -0.8% 2.4% 1.5% 0.9% 0.0%1Q15 7.0% -0.9% 2.9% 1.0% 1.0% 0.0%2Q15 7.0% 0.7% 2.3% 1.6% 1.2% 0.0%

2015 (f) 6.8% 0.8% 2.5% 1.6% 1.5% 3.3%2016 (f) 6.3% 1.2% 3.0% 1.7% 1.7% 3.8%

Industrial Production*: OECDavg: Germany U.K. USA Japan Europe OECD2012 -0.6% -2.3% 3.5% 0.0% -2.7% -0.1%2013 0.2% -0.1% 2.6% -0.7% -0.8% 0.4%2014 1.2% 1.9% 4.1% 2.1% 0.5% 2.0%

Jun '15 0.6% 1.5% 1.3% 2.3% 1.4%Jul '15 0.0% 0.0% 1.3% 0.0% 0.0% 0.0%

Industrial Production*: Asia

avg: R.o K. China Taiwan Thailand Malaysia India2012 1.8% 10.0% 0.2% 7.2% 4.0% 1.5%2013 -0.2% 9.7% 0.9% -3.1% 2.7% 0.4%2014 0.0% 8.3% 6.2% -4.6% 5.1% 1.2%

May '15 -2.8% 6.1% -3.5% -7.6% 4.5% 2.7%Jun '15 1.2% 6.8% -1.4% -8.0% 4.4% 3.8%Jul '15 0.0% 6.0% -3.0% 0.0% 0.0% 0.0%

Ind. Production*: E.Europe & S. Americaavg: Russia Czech. Hungary Poland Argentina Brazil2012 2.7% -1.1% -1.7% 1.4% -1.1% -2.6%2013 -0.2% 0.6% 1.8% 2.3% -0.1% 1.2%2014 1.7% 5.1% 7.1% 3.5% -2.5% -3.1%

May '15 -5.4% 2.1% 6.2% 2.8% -0.9% -8.9%Jun '15 -4.7% 8.0% 5.9% 7.6% 1.0% -3.2%Jul '15 -4.6% 0.0% 0.0% 3.7% 0.6% 0.0%

Currency Trends Spot ~ & Forward# ... Exchange Rate Trendsend: Euro U.K. Japan Switz. Norway China2012 1.32 1.61 85.93 0.91 5.58 6.242013 1.37 1.64 104.70 0.90 6.15 6.072014 1.33 1.65 105.77 0.91 6.30 6.16Jun 1.13 1.56 123.71 0.93 7.79 6.20Jul 1.10 1.56 123.34 0.95 8.12 6.21Aug 1.11 1.55 123.37 0.97 8.27 6.35

28-Aug 1.12 1.54 120.70 0.96 8.31 6.413mo.# 1.13 1.54 120.65

12mo.# 1.14 1.54 119.80

end: R.o K. H.Kong Singapore SDR India Australia2012 1,072.2 7.75 1.22 1.54 54.96 0.972013 1,059.3 7.76 1.27 1.54 62.07 1.132014 1,052.3 7.75 1.27 1.49 61.04 1.11Jun 1,109.9 7.75 1.34 1.40 63.85 1.29Jul 1,149.9 7.75 1.36 1.40 63.69 1.35Aug 1,177.7 7.75 1.40 1.40 65.12 1.37

28-Aug 1,185.2 7.75 1.40 1.41 66.00 1.40 *% change year-on-year. Source: IMF, OECD, The Economist. ~Currency units per US$ except £, Euro and SDR.

Interest Rate Trends ... Inflation & Prices … Prices in $/bbl or $/tPrime Lending Rates: Consumer Prices Crude Grain Steel

$ Libor Oil Wheat Ship Plate

avg: 6 mths. avg: Brent USG Japan

2012 0.88% 1.50% 6.26% 1.48% 3.25% 0.69% 2012 2.9% 2.1% 0.0% 2.3% 110.57 333 6862013 0.54% 1.50% 6.00% 1.48% 3.25% 0.41% 2013 1.9% 1.5% 0.4% 1.6% 108.24 322 6212014 0.16% 1.50% 5.95% 1.48% 3.25% 0.33% 2014 1.1% 1.6% 2.7% 1.7% 98.34 302 592Jun 0.05% 1.50% 5.10% 1.48% 3.25% 0.44% May 0.9% 0.0% 0.5% 0.6% 62.58 234 520Jul 0.05% 1.50% 4.85% 1.48% 3.25% 0.46% June 0.7% 0.1% 0.4% 0.6% 60.65 235 520Aug 0.05% 1.50% 4.79% 1.48% 3.25% 0.52% July 0.0% 0.2% 0.0% 0.0% 52.69 217 520

28-Aug 0.05% 1.50% 4.60% 1.48% 3.25% 0.53% Latest 0.0% 0.0% 0.0% 0.0% 47.14 214 480

Clarksons Research Page 12

May '15 2.2% 2.1% 1.4% -3.9% 2.4%

#Forward Rates as of: 28-Aug

Euro U.K. China Japan U.S.A. USA Japan OECD

28-Aug-15

1.0%Industrial Production

Eur

• Stock markets in China and across the world showed further volatility this week. After severe declines in the Shanghai Composite Index early in the week, China lowered its benchmark interest rate by 0.25 percentage points to 4.6%; the fifth cut since November 2014. By the end of the week, the Shanghai Composite Index had recovered some of the week’s losses, but is still down by almost 20% from mid-August. Positive indicators for the US economy also helped to support markets towards the end of this week. US economic growth is now reported to have reached an annualised q-o-q rate of 3.7% in Q2 2015, up from the previous estimate of 2.3%, reflecting greater corporate investment than previously estimated. Strong consumer and government spending, as well as higher exports have supported the acceleration in US economic growth since Q1, when expansion of 0.6% was recorded.

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Ship Demand Trends

Oil Tanker million barrels per day % Chg

Demand .... 2012 2013 2014 2015* 2015/14

Oil ProductionWorld 91.0 91.4 93.2 94.5 1%USA 8.9 10.0 11.6 12.4 7%Middle East 29.0 28.8 29.3 29.7 1%West Africa 5.5 5.3 5.2 5.3 0%South & Central America 7.4 7.4 7.5 7.6 1%North Africa 4.1 3.5 3.0 3.1 4%

VLCC DemandAG Exports to China 2.8 3.0 3.3 3.5 7%

to Japan 2.9 2.9 2.7 2.6 -3%to Korea 2.1 2.0 2.0 2.1 6%to USA/UKC 2.6 2.5 2.2 2.2 -1%

Total Gulf Crude Exports 17.9 17.9 17.4 17.8 2%

Crude Oil TradeImports: USA (seaborne) 6.1 5.1 4.5 4.2 -6%

EU-5 6.1 5.8 5.5 5.7 4%China 4.9 5.1 5.6 6.1 7%

Total Seaborne Imports 38.2 36.8 36.1 36.8 2%

Products TradeImports: USA 1.5 1.6 1.4 1.3 -4%

EU-5 2.5 2.6 2.5 2.6 5%Latin America 1.7 1.7 1.8 2.0 10%Asia 7.4 7.8 7.9 8.2 4%

Total Seaborne Imports 19.2 20.1 20.3 21.1 4%*2015 data are projections. Oil production data shows total supply including crude oil, lease condensates and NGLs; world supply includes refinery gains, other liquids.

Dry Bulk million tonnes % Chg

Demand .... 2012 2013 2014 2015* 2015/14

Steel ProductionP.R. China 716.5 815.4 822.7 818.6 -1%Japan 107.2 110.6 110.7 106.6 -4%EU-27 169.4 166.0 167.1 169.2 1%Total Steel Prod. (listed) 993.2 1091.9 1100.4 1094.4 -1%

Iron Ore TradeImports: China 723.5 794.9 913.8 944.3 3%

Japan 131.1 135.9 136.7 140.9 3%South Korea 66.0 63.4 73.5 74.8 2%

Total Seaborne Imports 1110.2 1189.5 1337.5 1380.2 3%Exports: Australia 493.7 579.0 719.2 784.9 9%

Coal TradeImports: ** China 228.7 264.9 239.0 182.9 -23%

India 158.1 175.3 215.6 240.0 11%Japan 179.2 186.1 183.2 181.7 -1%South Korea 122.5 123.0 128.3 133.3 4%

Exports: ** Australia 308.4 344.9 372.9 376.4 1%Indonesia 381.8 415.5 408.2 390.1 -4%

Total Seaborne Coal Trade 1123.2 1179.3 1212.4 1191.0 -2% *2015 data are projections. ** Steam coal, lignite & coking coal.

World Seaborne million tonnes % Chg

Trade… 2012 2013 2014 2015* 2015/14

Crude Oil 1,901 1,832 1,799 1,834 2%Oil Products 923 963 974 1,013 4%Dry Bulk 4,099 4,333 4,548 4,602 1%Containers 1,464 1,544 1,631 1,723 6%Other 1,454 1,507 1,552 1,604 3%World Seaborne Trade 9,841 10,180 10,504 10,776 3%y-o-y growth 4.2% 3.4% 3.2% 2.6%Data based on latest available information at start Aug-15. For more detail see Seaborne Trade Monitor on Shipping Intelligence Network.


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$,000/dayIndex

Steel Production Index

Capesize Earnings

Steel Production and Capesize Earnings

Major Oil Trades News: • This week Shell declared force majeure on crude ex-ports from the port of Bonny, Nigeria, after two key pipe-lines of a combined capacity of almost 0.8m bpd, the Trans Niger and Nembe Creek Trunkline, were shut due to damage from theft. No timeline for recommencement of operations has been given. Oil theft is a widespread problem in Nigeria and this is not the first time pipelines have been closed due to theft. In 1H 2015, Nigerian crude exports have reportedly risen 2% y-o-y.

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OPEC Production & VLCC Earnings

OPEC Oil Production

VLCC Earnings

Major Bulk Trades News: • Chinese seaborne steam coal imports grew 31%m-o-m in July 2015, to 11.8mt. Rather than representing a firm recovery, this m-o-m increase highlights the low base in June, which was the smallest monthly total in over four years (9.0mt). Indeed, Chinese seaborne steamcoal imports dropped 21% y-o-y in July, contributing to a38% y-o-y decline in the first seven months of the year. The drop has been driven by declining domestic coal demand, compounded by a crackdown on air pollution,through strict coal quality regulations. Meanwhile, Chinese seaborne coking coal imports increased 36% y-o-y in July, to 5.3mt: the highest monthly total this year. However, imports in January-July dropped 25% y-o-y, reflecting the slowdown in the country’s steel output.

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World Fleets & Orderbooks

Total Cargo Year End Orderbook & Delivery Schedule

Fleet, m. Dwt 2011 2012 2013 2014 No. m.Dwt No. m.Dwt % Fleet 2015 2016 2017+

OIL TANKERS >10k dwt 441.7 460.4 468.7 475.3 4,463 484.5 607 80.1 16.5% 12.5 36.8 30.7OIL TANKERS <10k dwt 12.1 12.7 13.1 13.2 5,031 13.2 58 0.3 1.9% 0.3 0.0 0.0CHEMICAL TANKERS 37.2 37.9 38.4 39.0 3,488 40.1 249 5.7 14.1% 1.4 2.6 1.6OTHER TANKERS 3.3 3.3 3.4 3.4 655 3.5 35 0.8 23.9% 0.2 0.6 0.0BULKERS 620.3 686.0 725.4 757.2 10,534 767.8 1,667 135.6 17.7% 47.8 66.6 21.2COMBOS 6.8 4.7 4.2 3.9 19 2.8 0 0.0 0.0% 0.0 0.0 0.0LPG CARRIERS 15.1 15.4 16.3 17.0 1,300 18.0 204 6.9 38.5% 1.6 3.8 1.4LNG CARRIERS 28.9 28.9 30.0 32.6 430 34.0 161 12.9 38.0% 2.0 3.1 7.8CONTAINERSHIPS 196.8 206.4 216.1 228.0 5,179 238.1 427 41.8 17.6% 9.5 13.5 18.8MULTI-PURPOSE 28.8 29.2 29.5 29.4 3,229 29.4 128 1.9 6.6% 0.8 0.8 0.4GENERAL CARGO 33.3 32.3 31.8 31.3 14,465 31.4 80 0.4 1.4% 0.3 0.1 0.1RO-RO 8.3 8.1 7.7 7.5 1,254 7.6 15 0.4 5.8% 0.4 0.0 0.1CAR CARRIERS 11.3 11.8 11.9 12.1 782 12.3 69 1.3 10.2% 0.3 0.4 0.5REEFERS 6.0 5.3 5.2 5.0 1,401 5.0 8 0.0 0.9% 0.0 0.0 0.0OFFSHORE (AHTS/PSV) 7.3 7.9 8.6 9.5 5,365 9.8 635 1.8 18.6% 1.1 0.6 0.1OTHER CARGO 5.6 5.7 5.7 5.7 753 5.7 14 0.1 2.1% 0.1 0.0 0.0WORLD CARGO FLEET 1,462.9 1,555.9 1,616.1 1,670.0 58,348 1,703.2 4,357 290.2 17.0% 78.4 129.0 82.8TOTAL WORLD FLEET 1,533.7 1,626.8 1,687.9 1,744.5 89,863 1,777.9 5,239 298.2 16.8% 79.9 131.5 86.8TOTAL WORLD FLEET ($bn)* 855.7 826.2 895.7 915.6 89863 907.7 5,239 292.8 32.3% 70.7 110.7 111.4

Tanker Year End Orderbook & Delivery ScheduleFleet, m. Dwt 2011 2012 2013 2014 No. m.Dwt No. m.Dwt % Fleet 2015 2016 2017+

VLCC 200,000+ 175.5 187.2 190.2 194.2 641 197.2 117 36.2 18.4% 5.6 17.7 12.9Suezmax 120-200,000 68.3 72.6 76.2 76.0 499 77.3 93 14.6 18.9% 0.5 6.3 7.9Aframax 80-120,000 96.7 97.6 96.9 96.1 914 98.5 140 15.7 15.9% 2.7 6.1 7.0Panamax 60-80,000 29.3 29.8 29.9 29.9 408 29.6 51 3.7 12.6% 0.2 2.0 1.5Small 10-60,000 103.3 105.1 107.8 111.8 3,554 115.8 436 16.0 13.8% 5.0 7.9 3.1

31.5 32.0 32.3 32.8 1,553 33.9 230 6.2 18.4% 1.5 3.1 1.7<10,000 21.2 22.0 22.6 22.9 7,621 23.0 112 0.5 2.3% 0.4 0.1 0.0

TOTAL FLEET >10,000 473.2 492.4 501.0 508.0 6,016 518.4 837 86.3 16.6% 14.0 39.9 32.4of which: Single Hull 15.7 10.9 7.6 5.1 153 3.9

Double Hull 457.5 481.5 493.4 503.3 5,863 514.5Combos in Oil 4.3 4.0 2.4 2.7 13 2.0 Increase in size of Tanker Fleet:Laid-up 4.8 2.9 7.9 5.8 62 5.6 2014/2013 1.4%Storage 1.8 2.3 2.4 2.3 14 3.7 2015*/2014 2.0% * year to dateACTIVE FLT. >10,000 470.9 491.2 493.2 502.6 5,953 511.1

Bulk Carrier Year End Orderbook & Delivery ScheduleFleet, m. Dwt 2011 2012 2013 2014 No. m.Dwt No. m.Dwt % Fleet 2015 2016 2017+

Capesize 100,000+ 249.9 280.0 293.9 308.2 1,625 307.9 270 53.4 17.3% 16.5 28.8 8.0Panamax 65-100,000 151.6 169.8 184.9 193.3 2,471 196.2 355 28.9 14.7% 11.6 12.4 4.8Handymax 40-65,000 130.9 146.9 157.8 165.8 3,230 173.3 657 39.7 22.9% 14.9 18.9 5.9Handysize 10-40,000 87.9 89.3 88.7 89.8 3,208 90.5 385 13.6 15.1% 4.8 6.4 2.5TOTAL FLEET 620.3 686.0 725.4 757.2 10,534 767.8 1,667 135.6 17.7% 47.8 66.6 21.2Combos in Dry 2.5 0.7 0.4 0.6 3 0.3 Increase in size of Bulkcarrier Fleet:Laid-up 0.3 1.2 0.6 0.7 22 2.6 2014/2013 4.4%Storage 0.2 0.1 0.2 0.2 6 0.8 2015*/2014 1.4% * year to dateACTIVE FLEET 622.3 685.3 725.1 756.9 10,509 764.7Note: Panamax fleet includes vessels 60-65,000 dwt built prior to 2000.

LPG Carrier Year End Orderbook & Delivery ScheduleFleet ,000m³ 2011 2012 2013 2014 No. ,000m³ No. ,000m³ % Fleet 2015 2016 2017+

<5,000 cbm 1,516 1,531 1,524 1,543 638 1,533 11 39 2.5% 35 4 05-20,000 cbm 2,341 2,428 2,579 2,599 328 2,671 41 402 15.1% 166 200 3720-45,000 cbm 3,338 3,394 3,552 3,797 136 3,920 59 1,760 44.9% 158 832 77045-65,000 cbm 1,184 1,184 1,184 1,184 22 1,305 3 180 13.8% 60 120 0>65,000 cbm 11,249 11,411 12,484 13,153 176 14,240 90 7,545 53.0% 1,927 4,440 1,177TOTAL FLEET 19,628 19,948 21,323 22,276 1,300 23,669 204 9,926 41.9% 2,346 5,596 1,984TOTAL M. DWT 15.1 15.4 16.3 17.0 18.0 6.91 38.5% 1.63 3.85 1.43


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"Oil Tankers" includes vessels in the crude oil & oil products sectors, including all IMO 3 tankers and specified IMO 2 tankers (see Oil & Tanker Trades Outlook for detailed definition). "Chemical" includes IMO 1 tankers and specified IMO 2 tankers. "Specialised" includes chemical tankers and other tankers designed for the carriage of specialist liquids.

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World Fleets & Orderbooks

LNG Carrier Year End Orderbook & Delivery ScheduleFleet ,000m³ 2011 2012 2013 2014 No. ,000m³ No. ,000m³ % Fleet 2015 2016 2017+

<40,000 cbm 277 293 231 231 26 289 18 410 142.1% 155 170 8540-60,000 cbm 122 0 0 0 0 0 1 45 #DIV/0! 0 0 4560-100,000 cbm 1,070 1,070 982 839 9 684 0 0 0.0% 0 0 0>100,000 cbm 51,547 51,725 54,002 59,030 395 61,668 142 24,242 39.3% 3,654 5,653 14,936TOTAL FLEET 53,016 53,088 55,216 60,101 430 62,640 161 24,697 39.4% 3,808 5,823 15,066TOTAL M. DWT 28.9 28.9 30.0 32.6 34.0 12.9 38.0% 2.0 3.1 7.8

Containership Year End Orderbook & Delivery ScheduleFleet ,000 Teu 2011 2012 2013 2014 No. ,000teu No. ,000teu % Fleet 2015 2016 2017+

100-999 teu 729.4 707.1 687.1 659.8 1,052 649.2 3 2.0 0.3% 1.5 0.5 0.01-2,999 teu 3,609.8 3,482.4 3,399.0 3,353.8 1,873 3,358.3 152 305.3 9.1% 85.9 152.8 66.53,000 &+ teu (Panamax) 3,975.9 3,954.0 3,782.7 3,636.6 855 3,598.7 4 13.0 0.4% 9.9 3.1 0.03-7,999 teu (Post-Pmax) 3,203.9 3,403.8 3,656.4 3,800.9 676 3,897.6 31 129.5 3.3% 27.9 13.0 88.68-11,999 teu (Post-Pmax) 2,805.8 3,119.3 3,550.7 4,092.1 500 4,477.2 105 1,009.6 22.6% 386.8 465.5 157.312,000 &+ teu (Post-Pmax) 1,007.2 1,576.4 2,057.4 2,694.3 223 3,188.4 132 2,172.2 68.1% 300.6 531.5 1,340.1TOTAL FLEET 15,331.9 16,243.0 17,133.3 18,237.5 5,179 19,169.3 427 3,631.6 18.9% 812.6 1,166.4 1,652.6TOTAL M. DWT 196.8 206.4 216.1 228.0 238.1 41.8 17.6% 9.5 13.5 18.8

Multipurpose Year End Orderbook & Delivery ScheduleFleet ,000 Teu 2011 2012 2013 2014 No. ,000teu No. ,000teu % Fleet 2015 2016 2017+

100 - 499 teu 555.3 554.7 549.3 541.4 2,137 537.5 29 10.7 2.0% 8.1 2.6 0.0500 - 999 teu 576.9 580.5 561.9 540.1 780 536.7 71 50.3 9.4% 16.8 23.6 9.81000 &+ teu 290.3 334.3 398.7 432.6 312 446.0 28 45.4 10.2% 18.8 19.5 7.1TOTAL FLEET 1,422.5 1,469.5 1,509.9 1,514.0 3,229 1,520.3 128 106.4 7.0% 43.8 45.7 16.9MPP FLEET M. DWT 28.8 29.2 29.5 29.4 29.4 1.9 6.6% 0.8 0.8 0.4GC FLEET M. DWT 33.3 32.3 31.8 31.3 14,465 31.4 80 0.4 1.4% 0.3 0.1 0.1

Ro-Ro Vessel Year End Orderbook & Delivery ScheduleFleet, m. Dwt 2011 2012 2013 2014 No. m.Dwt No. m.Dwt % Fleet 2015 2016 2017+

<5,000 dwt 1.2 1.1 1.1 1.1 703 1.0 1 0.0 0.3% 0.0 0.0 0.05,000-10,000 dwt 2.5 2.4 2.3 2.3 316 2.3 4 0.0 1.3% 0.0 0.0 0.010,000 &+ dwt 4.6 4.5 4.3 4.1 235 4.3 10 0.4 9.5% 0.4 0.0 0.1TOTAL FLEET 8.3 8.1 7.7 7.5 1,254 7.6 15 0.4 5.8% 0.4 0.0 0.1CAR CARRIERS 11.3 11.8 11.9 12.1 782 12.3 69 1.3 10.2% 0.3 0.4 0.5

Reefer Vessel Year End Orderbook & Delivery ScheduleFleet m. ft³. 2011 2012 2013 2014 No. m.ft³ No. m.ft³ % Fleet 2015 2016 2017+

< 200,000 cu ft 51.5 48.3 47.7 46.5 970 46.5 2 0.4 0.8% 0.4 0.0 0.0200-449,999 cu ft 90.1 76.0 74.9 73.9 246 73.7 6 1.5 2.0% 1.0 0.5 0.0> 450,000 cu ft 125.4 111.8 108.7 104.5 185 102.8 0 0.0 0.0% 0.0 0.0 0.0TOTAL FLEET 266.9 236.2 231.3 224.9 1,401 223.0 8 1.8 0.8% 1.4 0.5 0.0TOTAL M. DWT 6.0 5.3 5.2 5.0 5.0 0.0 0.9% 0.0 0.0 0.0

Owner Fleets by Year End Orderbook & Delivery ScheduleNationality, m. GT 2011 2012 2013 2014 No. m. GT No. m. GT % Fleet 2015 2016 2017+

Greece 142.8 151.0 164.2 179.9 5,074 185.7 483 29.2 15.7% 8.0 14.5 6.7Japan 149.7 157.8 160.7 162.9 8,635 163.8 313 18.5 11.3% 2.8 4.9 10.7China P.R. 100.3 111.4 117.4 120.0 6,526 125.2 610 29.6 23.6% 9.8 12.7 7.1Germany 94.4 96.8 94.8 94.0 3,968 93.7 228 8.3 8.9% 2.4 4.0 1.9United States 50.5 51.2 52.8 58.0 5,005 58.4 254 12.4 21.1% 2.2 6.8 3.4

Clarksons Research Page 15

Note: All fleet figures are from the Clarkson Research Ship and Orderbook Databases, expressed in the units indicated. All dwt figures are metric. Annual data are as at yearend, monthly data at the beginning of the month. The databases comprise vessels of 100gt and above. For access to more detailed fleet data visit World Fleet Register atwww.clarksons.net/wfr. * Value of the world fleet based on estimates of the value of each vessel based on type, size and age. For specialised and non-cargo vessels,coverage may not be complete. Value of the orderbook based on reported newbuilding contract prices wherever possible and estimated contract prices adjusted for vesseltype, size and the date of the contract elsewhere. For more detail see World Fleet Monitor.

A "Sources & Methods" document which describes the methodology by which Clarkson Research Services gathers and processes the data set outin this report, including the calculation of voyage earnings for tankers and bulk carriers, is available on our website at www.clarksons.net. Furtherenquiries may be made to the addresses set out on the back page.

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Analysis

In English if you say “he’s gone west” you mean he’s a “goner” (i.e. dead). It’s a phrase the stock market might now be applying to China’s economy. But in China, if you “go west” you get to the town of Urumqi. It has 3 million people, per capita income of $11,000 a year, the Texas Cafe serves great Tex-Mex, and it’s China’s “fastest growing city”. Oh yes - and it’s the world city most remote from the sea (2,400km).

China Really Is A Big Place The point is that, unlike any other devel-oping region, China is a very, very big place. Many economists would classify China’s recent growth as typical of the “Trade Development Cycle” model. Eco-nomic development uses vast quantities of raw materials, for building infrastruc-ture and stocks of durables. Then the focus turns to less material intensive products – there’s not much iron ore in a Gucci handbag. Anyway, it looks as if China might have reached this inflection point in its development cycle. Previous Growth Regions Forty years ago Europe and Japan went through the same process. Between 1965 and 1973 Japan was the miracle economy, accounting for two thirds of dry bulk trade growth – just like China. The problems began in 1973 as heavy indus-try, especially steel, reached unsustaina-ble capacity levels. In 2001 China’s steel output was 151mt, up from 90mt in 1993. Useful growth which brought China’s steel production in line with Europe’s out-put of 159mt. But by 2013 China’s output hit 815mt and is likely to be about the same in 2015. Familiar territory. How Big Is Too Big? The problem is figuring out when China’s trade development is overshooting. China is so much bigger than Japan and Eu-rope. But by looking at the ratio of the growth in total Chinese seaborne imports to growth in Chinese industrial produc-tion, a change is apparent (see chart). If the ratio is over 1, trade is growing more quickly than industrial production - from

2000 to 2003 the ratio averaged 1.6. If the ratio is 1, seaborne imports and in-dustrial production are growing at around the same rate - in 2004-12 the ratio aver-aged 0.9. Below 1 is bad news - since 2012 the ratio has averaged 0.4 and has been negative in recent months. Good News & Bad The good news is that China’s industrial production trend remains at about 5-6% per annum. There is still a long way to go in developing the economy, especially the inland provinces. The bad news is that the stagnation of imports looks suspi-ciously like the structural slowdown of a

maturing Trade Development Cycle. For a while it seemed that coal might fill the growth gap, but with the new attitude to the environment, that seems less likely. Pushing West So there you have it. Lots of drama, but the underlying economics suggest that the Chinese economy is having normal development pains, intensified by its size and the pace of growth. For shipping this may not be the end of the road, but it’s time to take a careful look at the manage-ment of the business. When a customer the size of China gets growth pains, you just can’t ignore it. Have a nice day.

Graph of the Week China’s Trade And Industry: Showing Growth Pains?

The red line on the graph shows the ratio of year-on-year growth in China’s total seaborne imports to Chinese industrial production growth. The blue line shows the centred 12 month moving aver-age of this ratio.

Source : Clarksons Research

Has China’s Seaborne Import Boom “Gone West”?

Shipping Intelligence Weekly, 28 August 2015 Published by: Clarkson Research Services Limited Commodity Quay, St Katharine Docks London E1W 1BF, England. Tel: + (44) (0) 20 7334 3134 E-mail: [email protected] On-line Shop: http://www.crsl.com Website: http://www.clarksons.com/research Shipping Intelligence Network: http://www.clarksons.net World Fleet Register: http://www.clarksons.net/wfr Shipping Intelligence Weekly is published 50 times a year. It is available on subscription at a price of £845/£910 a year (within Europe/outside Europe) including postage.

Editorial Board: Managing Director Stephen Gordon Research Director Trevor Crowe Analysis Martin Stopford Publisher Rob Benson Editor Samantha Barnwell Clarksons Platou Contacts: S&P J. Brynteson Tankers R. Knight Specialised R. Whittet Gas J.R. Evans Dry Cargo M. Goodall Containers J. Tolstrup-Moller Freight Derivatives A. Gray Offshore P. Middleton

The material and the information contained herein are provided for general information purposes, and may not be reproduced without the written permission of Clarksons Research. To the maximum extent permitted by law, Clark-sons Research shall not be liable to the recipient or any third party for any loss, liability or damage, cost or expense including without limitation, direct, indirect, consequential loss or damage, any loss of profit, loss of use, loss of or interruption in business, loss of goodwill, loss of data aris-ing out of, or in connection with, the use of and the reliance on the information whether in contract, tort, negligence, bailment, breach of statutory duty or otherwise, even if foreseeable. This disclaimer shall be governed by and construed in accordance with English law.

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Ratio of growth in seaborne imports to industrial production

Imports much more volatile than industry

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Blue line shows 12 month moving

average (centred) Imports fallinto negative

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