shipping newsletter week35 (1)

8/3/2019 Shipping Newsletter Week35 (1)

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Tuesday, September 6, 2011 (Week 35)

IN THE NEWS Latest Company News 3rd Annual Global Derivatives Forum Interview with Dale Ploughman, Chairman & CEO of Seanergy Maritime Holdings Corp. Select Dividend Paying Shipping Stocks Weekly China Update

CAPITAL MARKETS DATA Currencies, Commodities & Indices Shipping Equities - Weekly Review

Weekly Trading Statistics, by Knight Capital Shipping Bonds - Weekly Review, by Knight Capital

SHIPPING MARKETS The Week In Review, by Golden Destiny Dry Bulk Market - Weekly Highlights, by Intermodal Shipbrokers Tanker Market - Weekly Highlights, by Charles R. Weber Company Weekly Tanker Market Opinion, by Poten & Partners Weekly Freight Rate & Asset Trends, by Intermodal Shipbrokers Container Market - Weekly Highlights, by Braemar Seascope S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny

Forward Freight Agreements - FFAs, by SSY Futures

TERMS OF USE & DISCLAIMER

CONTENT CONTRIBUTORS

Capital Link ShippingWeekly Markets Report


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New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526

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Capital Link - New York - London - Athenswww.capitallink.com

www.capitallinkforum.co

www.CapitalLinkShipping.comA web based resource that provides information on the major shipping and stock mark

Investor Relations & Financial Advisory

indices, as well as on all shipping stocks. It also features an earnings and conference ca

calendar, industry reports from major industry participants and interviews with CEOs, analys

and other market participants.

www.CapitalLinkWebinars.comSector Forums & Webinars: Regularly, we organize panel discussions among CEOs, analyst

bankers and shipping industry participants on the developments in the various shipping secto

(containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity

Shipping Today, Scrapping, etc).

Capital Link Investor Shipping ForumsIn New York, Athens and London bringing together investors, bankers, financial advisors, liste

companies CEOs, analysts, and shipping industry participants.

www.MaritimeIndices.comCapital Link Maritime Indices: Capital Link developed and maintains a series of stock mark

maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Inde

CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fle

Index, CL Shipping MLP Index Bloomberg page: CPLI. The Indices are also distribute

through the Reuters Newswires and are available on Factset.

Capital Link Shipping Weekly Markets ReportWeekly distribution to an extensive audience in the US & European shipping, financial an

investment communities with updates on the shipping markets, the stock market and liste

company news.

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our objective is to assist our clients enhance long term shareholder value and achieve prope

valuation through their positioning in the investment community. We assist them to determin

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Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on o

in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to th

shipping industry becoming the largest provider of Investor Relations and Financial Communications services t

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shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as

...Linking Shipping and Investors Across the Globe

Capital Link Shipping


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Tuesday, September 6, 2011 (WCapital Link ShippingWeekly Markets Report

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Latest Company NewsMonday, August 29, 2011

Nautilus Marine Acquisition Corporation Announces SeparateTrading of Common Stock and Warrants as of Today, August

29, 2011Nautilus Marine Acquisition Corporation (NASDAQ: NMARU)announced that pursuant to its initial public offering, whichwas consummated on July 20, 2011, the units issued in theinitial public offering automatically separate as of today, August29, 2011, into the common stock and warrants underlying theunits. Upon commencement of trading today, the common stockand warrants will trade separately on the Nasdaq Capital Marketunder the symbols NMAR and NMARW, respectively. Theunits, which were listed on the Nasdaq Capital Market under thesymbol NMARU, will no longer be listed on the Nasdaq CapitalMarket following the separation. Maxim Group LLC acted asthe sole book-running manager and sole representative for theunderwriters. EarlyBirdCapital, Inc. and Chardan Capital Markets,LLC acted as co-managers of the offering.

DryShips Inc. Announces Exchange Offer of Common Sharesby Ocean Rig UDW Inc.DryShips Inc. (NASDAQ: DRYS) announced the commencement ofan offer by its majority-owned subsidiary, Ocean Rig UDW (OceanRig), to exchange up to 28,571,428 new shares of Ocean Rigcommon stock (the Exchange Shares) that have been registeredunder the U.S. Securities Act of 1933, as amended (the SecuritiesAct) for an equivalent number of common shares of OceanRig previously sold in a private offering in December 2010 (theOriginal Shares). The exchange offer is being conducted uponthe terms and subject to the conditions set forth in the prospectusdated August 26, 2011, and the related letter of transmittal. TheExchange Shares are identical to the Original Shares, except thatthe Exchange Shares have been registered under the SecuritiesAct and, therefore, will not bear legends restricting their transfer.

Tuesday, August 30, 2011

DryShips Inc. Reports Financial and Operating Results forQ2 2011DryShips Inc. (NASDAQ: DRYS) announced its unaudited nancialand operating results for the second quarter and six month periodended June 30, 2011. For the second quarter of 2011, the Companyreported a net loss of $114.1 million, or $0.33 basic and dilutedloss per share. Included in the second quarter 2011 results areinfrequently occurring and non-cash items, totaling $131.5 million,or $0.37 per share. Excluding infrequently occurring and non-cashitems, the Companys net results would have amounted to a netincome of $17.4 million or $0.04 per share. In the drilling sector this

quarter, three of our four units commenced new contracts whichrequired mobilization before they were in a position to earn the fullcontractual daily operating rate. As such, earnings from drillingoperations this quarter do not reect the full earnings capacity ofits drilling eet.

Wednesday, August 31, 2011

Seanergy Maritime Holdings Corp. to Host an Investor Day onSeptember 9, 2011 in New York CitySeanergy Maritime Holdings Corp. (NASDAQ: SHIP) announcedthat the Companys Chairman and Chief Executive Ofcer, DalePloughman, and the Chief Financial Ofcer, Christina Anagnostara,will host an Investor Day Event on Friday, September 9, 2011 at

1:30pm EDT in New York City to discuss the Companys recendevelopments and dry bulk sector. Registration will begin a1:00pm EDT.

Goldenport Holdings Announces Interim Results for the SixMonths to 30 June 2011Goldenport Holdings Inc. (LSE: GPRT) announces its Interimresults for the six months ended 30 June, 2011 reporting aninterim dividend for 2011 of 2.0 pence per share an increase o11.1% compared to the 2010 interim dividend. It reported revenueof US$ 52,091, an increase of 22.4% compared to US$ 42,543during same period last year. EBITDA was US$ 25,685, up 24.4%compared to same period last year.

Thursday, Sept 1, 2011

Costamare Inc. Announces 2011 Annual Meeting of StockholdersCostamare Inc.(NYSE: CMRE) announced that its Board o

Directors has called an annual meeting of the stockholders to beheld in Athens, Greece on Tuesday, October 25, 2011. Stockholdersof record at the close of business on Monday, September 12, 2011will be entitled to receive notice of, and to vote at, the annuameeting and at any adjournments or postponements thereof.

Star Bulk Announces Simos Spyrou to Succeed GeorgeSyllantavos as Chief Financial OfcerStar Bulk Carriers Corp.(NASDAQ: SBLK) announced that MrSimos Spyrou has been appointed as Chief Financial Ofcer, tosucceed Mr. George Syllantavos, effective as of September 12011. Mr. Simos Spyrou joined Star Bulk Carriers Corp. as DeputyChief Financial Ofcer earlier this year. From 1997 to 2011, MrSpyrou worked at the Hellenic Exchanges (HELEX) Group, thepublic company which operates the Greek equities and derivativesexchange, the clearing house and the central securities depository

From 2005 to 2011, Mr. Spyrou held the position of Director ofStrategic Planning, Communication and Investor Relations at theHellenic Exchanges Group and he also served as a member othe Strategic Planning Committee of its Board of Directors. From1997 to 2002, Mr. Spyrou was responsible for nancial analysis atthe research and technology arm of the Hellenic Exchanges Group

dAmico Executes Buy-Back ProgramIn accordance with the authorization issued by the Shareholdersmeeting of 29 March 2011 and following the Board of Directorsresolution of 5 July 2011, dAmico International Shipping S.A. - asprovided by the Consob Resolution n. 16839 of 19 March 2009 andof article 4.4, therein recalled, of the Commission Regulation (CEn.2273/2003 of 22 December 2003 - hereby discloses that duringthe period between August 25 and August 31, 2011, repurchased

on the regulated market managed by Borsa Italiana S.p.A., nr46,538 own shares, representing the 0.0310% of the outstandingshare capital of the Company, at the average price of Euro 0.686for a total consideration of Euro 31,904. As at August 31, 2011dAmico International Shipping S.A. holds nr. 4,769,288 ownshares, representing the 3.1806% of the outstanding share capital

Navios Maritime Partners L.P. to Present at Jefferies 2011Global Shipping ConferenceNavios Maritime Partners L.P. (NYSE: NMM) announced thamembers of its management team will be presenting at Jefferies2011 Global Shipping Conference in New York City on WednesdaySeptember 7, 2011 at 10:30am local time.


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Danaos Corporation to Participate at the Jefferies 2011 GlobalShipping ConferenceDanaos Corporation (NYSE: DAC) announced that Dr. JohnCoustas, the companys President and Chief Executive Ofcer, will

be participating at the Jefferies 2011 Global Shipping Conferenceon Wednesday, September 7, 2011 at 1:00 p.m. ET. Theconference will be held in New York City.

Friday, Sept 2, 2011

Seanergy Maritime Holdings Corp. to Present at Jefferies2011 Global Shipping Conference on September 7, 2011Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) (NASDAQ:SHIPW) announced that the Companys management team willbe presenting at the Jefferies 2011 Global Shipping Conferencein New York City on Wednesday, September 7, 2011 at 8:00amlocal time.

Latest Company NewsEuroseas Ltd to Present at the Jefferies 2011 Global ShippingConference in New York CityEuroseas Ltd (NASDAQ: ESEA) announced that Aristides Pittasthe Chairman and CEO of Euroseas, will be presenting at the

Jefferies 2011 Global Shipping Conference in New York onWednesday, September 7, 2011 at 2:00pm EDT.

Monday, Sept 5, 2011

Nordic American Tankers Limited (NYSE: NAT) AnnouncesAcquisition of Its Twentieth VesselNordic American Tankers Limited (NYSE: NAT) announced thathe Company has agreed to acquire its twentieth vessel, a double-hull suezmax tanker built at Samsung Heavy Industries, KoreaThe agreed purchase price is $24.45 million. This rst class vesseis expected to be delivered to us no later than October 5, 2011The acquisition will be nanced from the nancial resources of theCompany. Nordic American has a modern eet of vessels at an

average age of about 9.5 years. The newly acquired vessel is builin the same year and at the same yard as the sister vessel, theNordic Sprite (1999).

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Interview with Dale Ploughman, Chairman & CEO

of Seanergy Maritime Holdings Corp.Seanergy Maritime Holdings Corp. is a Marshall Islands corporationwith its executive ofces in Athens, Greece. The Company isengaged in the transportation of dry bulk cargoes through theownership and operation of dry bulk carriers. The Companyscurrent eet consists of 20 drybulk carriers (four Capesize, threePanamax, two Supramax, one Handymax and ten Handysizevessels) with a total carrying capacity of approximately 1,295,594dwt and an average eet age of 13.5 years.

The Companys common stock and warrants trade on theNASDAQ Global Market under the symbols SHIP and SHIP.W,respectively.

Q) Please highlight for us Seanergys recent developments.

A) We reported our second quarter 2011 earnings with an increase

in revenues and net income compared to the same period last yearas a result of a number of factors. First, we had an increase in thesize of our wholly owned eet to 20 vessels from the successfulacquisitions of the remaining minority interests in Maritime CapitalShipping Limited and Bulk Energy Transport which were completedin the second half of 2010. Second, our eet employment strategywas important. We maintained a portfolio of both xed rate andprot sharing agreements or oating rate contracts that providedus with cash ow stability and protection against the volatile freightrate environment which has hampered the industry in 2011. I wantto note that our high charter coverage for the next two years shouldresult in high vessel utilization while minimizing the effects of shortterm freight rate volatility on our cash ows. As of today, our vesselshave secured period employment of 93% for 2011 and 64% for2012 all with credible and reliable counterparties. In addition, 12

of our charter contracts are subject to prot-sharing agreementsor oating rate contracts. Third, our signicant exposure to theHandysize segment has experienced less volatility than that of theother vessel classes. We expect these factors to continue to benetour revenues in the future.

Company developments include our announcement in May 2011 ofthe reorganization of our Hong Kong ofce, as it offers advantagesfor further growth in the Far East, a region of critical signicancefor drybulk shipping. We expect that an annual cost saving ofapproximately US$2 million will be realized for Seanergy.

We also announced a 1-for-15 Reverse Stock Split in June 2011that became effective on June 27th, in order to comply with theNASDAQ minimum bid requirement. Following the stock split, thenumber of outstanding shares were reduced from 109,773,980

to 7,318,263. With regards to the warrants, the exercise price didnot change following the reverse stock split and, accordingly, theprice at which a whole share of the Companys common stock maybe purchased at the time warrants are exercised increased by amultiple of fteen.

Q) What is the exercise price of Seanergys warrants and whenthey will expire?

A) The exercise price for the warrants is $6.50 per share and theyexpire on September 28, 2011. Because they are set to expire thismonth and our share price is trading well below the exercise pricewe will make a decision in the coming weeks on whether we aregoing to extend them and/or reduce the exercise price or just letthe warrants expire.

Q) Can you provide color on Seanergys Balance Sheet?

A) As of June 30th our cash reserves, inclusive restricted cashwere $45.1 million and our total assets amounted to $660.4 millionFor the six months ended June 30th our principal paymentsamounted to approximately $26.2 million. At the end of June 2011our debt was comprised of six facilities totaling $373.4 million. Ounet debt to book cap was 55% and our debt to book cap was 58%As of today, our total outstanding debt is $363.8 million

As of June 2011 we were in compliance with all our covenantswith the exception of the following: since the First Quarter 2011 wedid not comply with the nancial covenant relating to the minimumquarterly cash balance requirement Seanergy is obliged to maintainunder the loan agreement with Marn Egnatia Bank. Marn hasindicated its willingness to accommodate our request to waive the

breach and will ((commence?? introduce?)) certain nancial andother covenants of the particular loan agreement. In additionas of June 30, 2011, our subsidiary, Bulk Energy Transport, didnot comply with the covenant relating to the market value of theeet and the minimum equity ratio requirement under the Citibankfacility. We are in discussions with the bank to receive waiversand amendments of certain nancial and other covenants of theparticular loan agreement. We expect that all the requests will begranted. We expect that our lenders will not demand payment oour loans before their maturity.

Q) What are your plans for Seanergy moving forward?

A) We anticipate that the following months are going to becharacterized by volatile conditions, as there are a multitudeof factors that can affect the market, which are hard to predictLooking beyond short term uncertainty however, it is our rm beliethat we have proved our ability to deal with unfavorable marketfundamentals, and we believe we are poised to benet from anyfuture recovery in dry bulk shipping and continue our growth. Assevalues continue to decline and we are looking at opportunities thatwill only be accretive to our earnings. We are committed to our goato strengthen our position in the global shipping industry by buildingSeanergy into a leading player.

Q) What is your opinion on the world economy and dry bulktrade?

A) In the past quarter we have not seen a marked change in globaeconomic conditions, as economic growth in most developedcountries continued to be lackluster and has even fallen below


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of Seanergy Maritime Holdings Corp.

expectations, while risks to the stability of the nancial systemremain elevated. This has been especially pronounced as mostdeveloped economies have started to emphasize deleveragingand scal restraint, which is taking a toll on short term growth. It isin fact stipulated by many leading economic policy makers, suchas the IMF and the Federal Reserve, that if world political leadersfail to enact measures to promote investments and broad basedemployment gains, even the longer term economic prospects ofEurope and the US will be at risk of falling short of expectationsfor a gradual rebound in activity At the same time economic growthin emerging markets continues to be strong, although there arestill downside risks, as worries about inationary pressures and thestability of major trading partners in Europe and the U.S. are likelyto keep a lid on the stellar growth rates we have seen in the past.Be that as it may, the economic performance of large emergingeconomies such as China, Brazil and India continues to be strong,which is an important driver of demand for our industry. At the sametime, we are condent that the monetary tightening taking placein these countries is likely to contribute to more stable economicgrowth going forward, both on a domestic and international level.

Against this economic backdrop, the growth in demand for dry bulktransportation continues to be resilient, although to a lesser extentthan before. This has exacerbated the negative pressure on thedry bulk market caused by the oversupply of tonnage. Despite this,the past weeks, have seen a sustained increase in the spot ratesfor larger vessels, as Chinese demand for Brazilian iron ore hasmade for an increased level of activity translating in a healthieroperating environment for Capesize owners.

I think it would be safe to say that for the rest of the year we are

likely to see increased volatility in shipping rates as even smallperiods of weaker growth in demand can have a large negativeeffect on freight rates. As far as Handysize vessels are concerned,it is only natural that the generally depressed market sentiment islikely to keep rates low by historical standards, on the other handthe operational versatility of these vessels coupled with betterdemand and supply dynamics is contributing to a considerably lessvolatile environment than for larger vessel types.

Q) What about the supply side?

The oversupply of vessels has been the main factor keeping the drybulk market depressed, in the face of a relatively healthy demandIn 2011 the size of the dry bulk eet in terms of tonnage is projectedto grow by 12.8%. It is therefore evident that demand increasing aa pace of 5% or so is not going to be enough to cause rates to rmAs a result, we expect that the rate environment will remain soft fothe next 18 months. However, there will be pockets that will offesome reasonable relief during this period, as the smaller segmentsof the dry bulk market is not as unbalanced as the larger segment

On a positive note, we are seeing a very robust demolition marketas prices of scrap metal continue to be high and the vesseowners concern due to the low freight rates has resulted in limitednewbuilding ordering activity in the sector compared to earlier yearsThis would suggest that we should see a gradual stabilization of thedemand and supply dynamics going forward.

The supply picture is worse for larger vessels, as the outstandingorder book for Capes and Panamax vessels stands at around 50%of existing global capacity, while the supply for Supramax andHandymax vessels is also on an increasing trend. At the sametime the total order book for the Handy size vessels, representingthe smallest category, is just below 27%. Along with the fact thawe expect increased withdrawals of Handys from the market due totheir old age, we are faced with what we would like to believe is arather healthy market for Handy sized tonnage. The more favorablepicture for Handy sized vessels is also aided by their operationaversatility which makes them less reliant on a single route or cargoIn this respect we believe that Seanergys signicant exposure

to the Handy size segment should prove benecial to our abilityto generate cash ows going forward. In practice, the favorabledynamics presented in the Handy size segment can be seen bythe considerably lower volatility in the Handy size freight ratescompared to that of larger vessels.


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of Seanergy Maritime Holdings Corp.

Fleet Prole:

Vessel Name Vessel ClassCapacity

Year Built(DWT)

M/V Bremen Max Panamax 73,503 1993

M/V Hamburg Max Panamax 73,498 1994

M/V Davakis G. Supramax 54,051 2008

M/V Delos Ranger Supramax 54,057 2008

M/V African Zebra Handymax 38,632 1985

M/V African Oryx Handysize 24,112 1997

M/V BET Commander Capesize 149,507 1991

M/V BET Fighter Capesize 173,149 1992

M/V BET Prince Capesize 163,554 1995

M/V BET Scouter Capesize 172,173 1995

M/V BET Intruder Panamax 69,235 1993

M/V Fiesta Handysize 29,519 1997

M/V Pacic Fantasy Handysize 29,538 1996

M/V Pacic Fighter Handysize 29,538 1998

M/V Clipper Freeway Handysize 29,538 1998

M/V African Joy Handysize 26,482 1996

M/V African Glory Handysize 24,252 1998

M/V Asian Grace Handysize 20,138 1999

M/V Clipper Glory Handysize 30,570 2007

M/V Clipper Grace Handysize 30,548 2007

Total 20 1,295,594 13.5


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Select Dividend Paying Shipping Stocks

Company Name Ticker Quarterly Dividend AnnualizedDividend

Last ClosingPrice (Sept-02,2011)

AnnualizedDividend Yield

Containers

Costamare Inc CMRE $0.25 * $1.08* $15.04 7.18%

Box Ships Inc TEU $0.15 $0.60 $9.37 6.40%

Dry Bulk

Globus Maritime Ltd GLBS $0.16 $0.64 $7.00 9.14%

Navios Maritime Holdings Inc NM $0.06 $0.24 $3.58 6.70%

Navios Maritime Partners NMM $0.44** $1.76 $14.80 11.89%

Safe Bulkers Inc SB $0.15 $0.60 $6.92 8.67%

Star Bulk Carriers Corp SBLK $0.05 $0.20 $1.42 14.08%

Tankers

Tsakos Energy Navigation Ltd TNP $0.15 $0.60 $6.11 9.82%

Capital Product Partners Lp CPLP $0.233 $0.93 $6.06 15.35%

Navios Maritime Acquisition Corp NNA $0.05 $0.20 $3.33 6.01%

Mixed Fleet

Euroseas Ltd ESEA $0.07 $0.28 $3.75 7.47%

London Listed Companies (GBp) Ticker 2010 Total

Dividend

Last Closing

Price (Sept-02,2011)

Annualized

Dividend Yield

Hellenic Carriers Ltd HCL 7.60 54.50 13.94%

Goldenport Holdings GPRT 5.40 72.88 7.41%

*Board approved an eight percent (8%) dividend increase, beginning with the third quarter 2011 dividend, raising the quarterlydividend from $0.25 to $0.27 per common share.

**Dividend increased 2.3% over the prior quarters $0.43 per unit.

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Weekly China UpdateMajor Economic Indicators

The Development Project for New Material Industry during the 12 th

Five-year Project Period will be disclosed ofcially on Sept 7. It

was said to make breakthroughs in the essential techniques thatwere needed in national construction urgently and would lead thefuture development by 2015. It is expected to lift the self-sufciencyratio of essential new materials to 70% by 2015. Currently the newmaterial industry includes three parts including new-type functionalmaterial, advanced structural material and composite materials.Rare earth functional materials took the leading position among theproducts that were greatly encouraged to develop.

Also according to Chinas 12th Five-year Plan, the Chinesegovernment targets to expand the total length of oil and gas pipelinesin use to 150,000km in 2015, from approximately 77,000km in 2010,representing a CAGR of 14%. This translates into 5mn tonnes ofsteel pipes demand each year, assuming 350 tonnes of steel pipesare required per km. Meanwhile, regional pipeline network will

also be signicantly expanded in the coming years. The expecteddemand for oil and gas pipes will see a strong growth in the comingyears. In addition, China is planning to increase the penetrationrate of natural gas consumption, as it is more environmentallyfriendly than coal burning. While steadily increasing, natural gasonly accounted for 3.9% of total energy consumption in 2009, muchlower than the world average of 24%. The Chinese governmentaims to increase natural gas consumption to 8% and 10% of totalenergy consumed by 2015 and 2020 respectively. As such, Chinawill increase its natural gas imports to satisfy the growing demand,prompting the speed up of pipeline constructions in the comingyears.

China securities market on last Friday declined with uctuation. Allsectors underperformed. Only rare earth& permanent magnet sectorrose. Touch screen, and medical equipment sectors outperformed.

Textile sector plunged. Water conservancy, petroleum& chemical,coal, and food sectors all plunged. SSE Composite Index ended at2528.28, down by 1.08%. The market trading amount was 55.97billion Yuan. SZSE Component Index ended at 11228.3, down by1.09%. The market trading amount was 49.18 billion Yuan. Themarket trading amount in SSE and SZSE continued seeing low.

Coal

Steam coal price fell on slower inventory consumption due toweaker demand for thermal power generation. Steam coal price atQinhuangdao Port has been falling for 6 consecutive weeks, withits price dropping 2.8% or RMB25/tonne, which could be attributedto seasonal factors. Given a stronger hydropower generation inSummer due to higher rainfall in Northern China, Hubei and Hunan,

power generators were reluctant to

purchase steam coals as demand for thermal power generationdeclined, leading to a slight retreat in steam coal price at the ports.Meanwhile, due to the rapid growth in iron and steel demandbrought by the construction of affordable housing, coking coal pricestood rm with the price growing strongly in some regions.

Despite a fall in thermal coal price, the magnitude of fall wassmall and the price maintained at a high level. Coal inventory atQinhuangdao Port reported a bigger fall during the period and itnow stays at the same level as that of the corresponding periodlast year. Coal inventory of major power plants remained high withsteady consumption. The steam coal is likely to drop further inthe next 2 weeks given its adequate supply. However, the price

is expected to stabilize and rebound in the next few months onweaker hydro power supply, higher demand from thermal powegenerations and ination factors.

Iron Ore

Chinas spot iron ore import prices have continued to strengthenclimbing by another $3/tonne over the past week on persistingsolid demand. As of 31 August, average transaction prices foIndian-origin 63.5%/63% Fe nes stood at $187-188/tonne cfChina, according to Chinese and Indian traders surveyed by SteeBusiness Brieng. Chinas demand for iron ore has remainedsteady over the past week and market prospects for Septembeand October still appear positive. But with import prices now edgingvery close to the peak of around $190/t cfr approached severatimes this year, market concerns about a possible decline in thecoming weeks have been renewed. Chinas iron ore market haswitnessed a lot of volatility this year. For much of this year Chinasiron ore import prices have travelled through the $170-190/t range

about every 2-3 weeks even during June-August when traditionalow seasonal demand should have seen prices decline.

Oil

Chinas investment in the oil-rening industry jumped 17.1%year on year to RMB 69.6 billion in the rst seven months of thisyear, according to the latest statistics released by the NationaDevelopment and Reform Commission. In July, the industryreceived RMB 11.8 billion of investment, 25.8% less than in JuneThe output value of the oil-rening industry reached RMB 257billion in July, up 32.6% year on year. The country started theconstruction on 395 oil-rening projects in the rst seven months14.1% less than in the same period of 2010, and completed 204projects during the period, up 2.5% year on year. The oil reningsector processed 34.49 million metric tons of crude oil in July, 5.9%

more than in the corresponding period of last year. The output ooil products climbed 4.4% year on year to 22.16 million metric tonsin July. The gure included 6.54 million metric tons of gasolineand 13.99 million metric tons of diesel, up 3.4% and 4.3% year onyear, respectively. The country produced 1.63 million metric tons okerosene in Jul.

In July, rened oil exports and imports reached 1.03 million metrictons and 490,000 metric tons, respectively. Gasoline net exportsreached 300,000 metric tons.

Sugar

China has inked contracts to import around 2.33 million metric tonsof raw sugar to meet its demand. Some traders expected China

to import more sugar this year to make up reserves after it sold althe 200,000 metric tons from state reserves in a second auctionthis month. The Chinese government expected to cover a deciand limit fast-growing domestic price during the peak consumingseason. As of Aug. 26, China has bought 400,000 metric tons of rawsugar from Cuba, 225,000 metric tons from Thailand, 1.2 millionmetric tons from Brazil. China saw its sugar output reach 10.45million metric tons in the 2010/11 sugar season, according to guresreleased by the China Sugar Association. The gure was 284,100metric tons less than the 10.74 million metric tons in the previousseason. The sugar demand in China is likely to exceed 13.5 millionmetric tons this year, estimated by Guangdong Sugar Associationdown from an estimated 13.78 million metric tons a year earlier, assurging prices resulted in more use of cheaper replacements suchas corn syrup and eroded affordability for low-income consumers.


11/38


Page 11

IN THE NE

Weekly China Update

Shipping Indices

Shanghai Containerized Freight Index closed at 1057.11 for the week ended Sept 02, losing 0.67% week-on-week. While ChinaCoastal Bulk Freight Index gained 2.53% to 1381.04 during the same period.

Articles compiled by Capital Link, Inc with information provided by Jeff Yuan, Senior Manager at Guotai Junan Securities Co., Ltd.China.


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Page 12

CAPITAL MARKETS DA

Currencies, Commodities & Indices

KEY CURRENCY RATES

Rate Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

3-Month LIBOR 0.3306 0.3228 2.40% 9.17% 0.53925 0.28438

10-Yr US Treas. Yield 1.9866 2.1881 -9.21% -40.45% 3.3190 2.3833

USD/EUR 0.7043 0.6897 2.12% -5.94% $0.79 $0.67

USD/GBP 0.6169 0.6105 1.05% -4.49% $0.65 $0.60

USD/JPY 76.7600 76.9500 -0.25% -6.08% $85.94 $76.25

USD/CNY 6.3826 6.3872 -0.07% -3.31% $6.80 $6.38

PRECIOUS METALS

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Gold 1,851.93 1,786.45 3.67% 30.96% $1,913.50 $1,241.32

Silver 42.31 41.06 3.04% 37.85% $49.79 $19.56

Platinum 1,859.50 1,823.25 1.99% 5.09% $1,916.75 $1,540.00

Copper 411.50 411.75 -0.06% -7.22% $460.60 $340.85

Palladium 780.10 762.70 2.28% -2.07% $848.00 $705.50

KEY AGRICULTURAL &CONSUMER COMMODITIES

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Corn 760.00 767.00 -0.91% 22.48% $779.00 $447.00

Soybeans 1,445.75 1,423.50 1.56% 4.84% $1,465.00 $998.50

Wheat 775.50 797.00 -2.70% -3.72% $986.75 $639.00

Cocoa 3,098.00 3,075.00 0.75% 2.08% $3,600.00 $2,695.00

Coffee 288.05 279.20 3.17% 19.77% $313.75 $170.95

Cotton 105.89 104.32 1.50% -25.53% $144.66 $80.35

Sugar #11 29.18 30.22 -3.44% -9.15% $31.85 $17.75

KEY FUTURES

Commodities Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low

Gas Oil 943.75 946.00 -0.24% 19.12% $1,061.25 $724.00WTI Crude 86.69 85.44 1.46% -5.39% $115.55 $76.15

Natural Gas 3.86 3.96 -2.53% -16.63% $4.98 $3.21

Heating Oil 300.40 300.35 0.02% 17.40% $336.90 $223.50

Gasoline RBOB 284.50 293.33 -3.01% 17.03% $311.67 $205.55

Week ending Friday, September 2, 2011


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Page 13

CAPITAL MARKETS DA

Currencies, Commodities & IndicesMAJOR INDICES

Index Symbol Close Last Week % ChangeYTD %

Change

3-Jan-11

Dow Jones INDU 11,240.26 11,284.54 -0.39% -3.69% 11,444.61

Dow Jones Transp. TRAN 4,445.32 4,460.19 -0.33% -14.10% 4,693.59

NASDAQ CCMP 2,480.33 2,479.85 0.02% -7.85% 2,532.41

NASDAQ Transp. CTRN 2,072.97 2,091.20 -0.87% -20.28% 2,151.96

S&P 500 SPX 1,173.97 1,176.80 -0.24% -7.70% 1,199.38

Russell 2000 Index RTY 683.36 691.79 -1.22% -14.43% 714.63

Amex Oil Index XOI 1,123.37 1,114.49 0.80% -8.36% 1,148.91

FTSE 100 Index UKX 5,292.03 5,129.92 3.16% -12.00% 5,246.99

CAPITAL LINK MARITIME INDICES

Index Symbol 02-September-11 26-August-11 % Change 3-Jan-11 YTD % Change

Capital Link Maritime Index CLMI 1,747.25 1,703.14 2.59% 2,031.89 -14.01%

Tanker Index CLTI 1,745.24 1,671.86 4.39% 2,355.67 -25.91%

Drybulk Index CLDBI 672.28 669.57 0.40% 894.91 -24.88%

Container Index CLCI 1,083.91 1,062.39 2.03% 2,182.51 -50.34%

LNG/LPG Index CLLG 3,069.70 2,949.49 4.08% 3,004.87 2.16%

Mixed Fleet Index CLMFI 1,464.29 1,453.17 0.77% 1,943.64 -24.66%

MLP Index CLMLP 2,599.40 2,528.75 2.79% 2,963.32 -12.28%

BALTIC INDICES

Index Symbol 02-September-11 26-August-11 % Change 4-Jan-11 YTD % Change

Baltic Dry Index BDIY 1,740 1,541 12.91% 1,693 2.78%

Baltic Capesize Index BCIY 2,975 2,346 26.81% 2,285 30.20%

Baltic Panamax Index BPIY 1,630 1,651 -1.27% 1,798 -9.34%

Baltic Supramax Index BSI 1,379 1,387 -0.58% 1,421 -2.96%

Baltic Handysize Index BHSI 670 667 0.45% 807 -16.98%

Baltic Dirty Tanker Index BDTI 677 693 -2.31% 842 -19.60%

Baltic Clean Tanker Index BCTI 674 695 -3.02% 635 6.14%


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Page 14

CAPITAL MARKETS DA

Shipping Equities: The Week in ReviewSHIPPING EQUITIES OUTPERFORMED THE BROADER MARKET

TANKER STOCKS THE BEST PERFORMERS

During last week, shipping equities outperformed the broader market. The Capital Link Maritime Index (CLMI), a composite index of all USlisted shipping stocks gained 2.59% compared to the S&P 500 sliding 0.24%, and the Dow Jones Industrial Average (DJII) losing 0.39%Year-to-date, the CLMI has lost 14.01% versus the losses of 3.69% for the DJII and 7.70% for the S&P 500. The broader markets remainvolatile during last week, while each of our shipping universes outperformed.

Tanker stocks performed the best during last week, with the Capital Link Tanker Index increasing 4.39%, compared to the gains of 4.08%for the Capital Link LNG/LPG Index, 2.79% for the Capital Link MLP Index, 2.03% for the Capital Link Container Index, 0.77% for CapitaLink Mixed Fleet Index and 0.40% for Capital Link Dry Bulk Index. Year-to-date, the best performing sector has been LNG/LPG stockswith the Capital Link LNG/LPG Index gaining 2.16%, followed by Capital Link MLP Index decreasing 12.28% and Capital Link Mixed FleeIndex sliding 24.66%. The top three largest weekly trading gainers are Globus Maritime Limited (GLBS), Seanergy Maritime Holdings(SHIP), and Genco Shipping (GNK), with stock prices increasing 33.84%, 17.33% and 13.68%, respectively.

During last week, dry bulk stocks underperformed the physical shipping market, as the Baltic Dry Index (BDI) increased 12.91% comparedto a gain of 0.40% for the Capital Link Dry Bulk Index. Year-to-date, the BDI has gained 2.78% compared to a loss of 24.88% for theCapital Link Dry Bulk Index. The Capesize rates surged last week to the highest levels since the beginning of 2011.

Tanker stocks outperformed the physical tanker shipping market during last week, with the Baltic Dirty Tanker Index (BDTI) slipping 2.31%and the Baltic Clean Tanker Index (BCTI) losing 3.02% compared to a gain of 4.39% for the Capital Link Tanker Index. Year-to-date, theBDTI has lost 19.60% and the BCTI has gained 6.14%, while the Capital Link Tanker Index has lost 25.91%. Brent Crude Oil gained3.33% for the week, and 22.90% year-to-date. VLCC rates dropped into negative territory despite higher xing activity.

MARITIME INDEX DAILY COMPARISON CHARTS (3MONTHS)*

*SOURCE:BLOOMBERG

CAPITAL LINK TANKER INDEX DAILY COMPARISON CHARTS (3MONTHS)*

*SOURCE:BLOOMBERG

CAPITAL LINK DRY BULK INDEX DAILY COMPARISON CHARTS (3MONTHS)*

*SOURCE:BLOOMBERG

0.70

0.80

0.90

1.00

1.10

1/14/11 2/14/11 3/14/11 4/14/11 5/14/11 6/14/11 7/14/11 8/14/11

CapitalLinkMaritimeIndex

S&P 500

Russell2000

0.50

0.70

0.90

1.10

1.30

1.50

1.70

1.90

1/14/11 3/14/11 5/14/11 7/14/11

CapitalLinkTankerIndexBalticCleanTankerIndexBalticDirtyTankerIndex

0.35

0.50

0.65

0.80

0.95

1.10

1.25

1.40

1/14/11 2/14/11 3/14/11 4/14/11 5/14/11 6/14/11 7/14/11 8/14/11

Capital LinkDrybulkIndex

Baltic DryIndex

The Trading Statistics supplied by Knight Capital providedetails of the trading performance of each shipping stockand analyze the markets trading momentum and trends forthe week and year-to-date.

The objective of the Capital Link Maritime Indices is toenable investors, as well as all shipping market participants,to better track the performance of listed shipping stocksindividually, by sector or as an industry. Performance can

be compared to other individual shipping stocks, to theirsector, to the broader market, as well as to the physicalunderlying shipping markets or other commodities. TheIndices currently focus only on companies listed on USExchanges providing a homogeneous universe. They arecalculated daily and are based on the market capitalizationweighting of the stocks in each index. In terms of historicaldata, the indices go back to January 1, 2005, therebyproviding investors with signicant historical performance.

There are seven indices in total; the Capital Link MaritimeIndex comprised of all 50 listed shipping stocks, and sixSector Indices, the CL Dry Bulk Index, the CL Tanker Index,the CL Container Index, the CL LNG / LPG Index, the CLMixed Fleet Index and the CL Maritime MLP Index.

The Index values are updated daily after the market closeand can be accessed at www.CapitalLinkShipping.com orat or www.MaritimeIndices.com. They can also be foundthrough the Bloomberg page CPLI and Reuters.
http://www.capitallinkshipping.com/http://www.maritimeindices.com/http://www.maritimeindices.com/http://www.capitallinkshipping.com/


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Page 15

CAPITAL MARKETS DA

Shipping EquitiesDry Bulk Ticker

FridayClose

Prev. WeekClose

%Change

YTD%Chg

52 WeekHigh

52 WeekLow

1 Month AverageVolume

Baltic Trading Ltd BALT $4.79 $4.44 7.88% -54.12% $12.69 $3.64 226,660

Diana Shipping Inc DSX $8.81 $8.40 4.88% -24.57% $13.71 $7.52 979,083DryShips Inc DRYS $2.95 $2.73 8.06% -43.16% $6.44 $2.19 11,967,929Eagle Bulk Shipping Inc EGLE $1.79 $1.92 -6.77% -64.13% $5.75 $1.62 903,503Excel Maritime Carriers EXM $1.87 $1.75 6.86% -67.31% $6.63 $1.63 569,441FreeSeas Inc FREE $1.20 $1.17 2.57% -68.00% $5.35 $1.01 21,772Genco Shipping GNK $6.64 $5.85 13.50% -54.30% $18.08 $4.15 1,090,966Globus Maritime GLBS $7.00 $5.23 33.84% -28.06% $13.59 $4.58 13,582Navios Maritime Hldgs NM $3.58 $3.57 0.28% -34.07% $6.29 $2.88 960,227Navios Maritime Ptns NMM $14.80 $15.07 -1.79% -25.06% $21.56 $11.06 598,615OceanFreight Inc OCNF $15.99 $15.85 0.88% -14.03% $23.00 $5.22 61,503Paragon Shipping Inc PRGN $1.27 $1.28 -0.78% -63.08% $4.04 $1.20 315,246Safe Bulkers Inc SB $6.92 $6.84 1.17% -22.07% $9.78 $6.20 161,630Seanergy Maritime Hldg SHIP $3.86 $3.29 17.33% -73.19% $20.25 $2.71 6,439Star Bulk Carriers Corp SBLK $1.42 $1.37 3.65% -47.60% $3.23 $1.00 488,028

TBS International PLC TBSI $0.88 $0.90 -2.21% -69.76% $6.07 $0.83 86,603

Tankers TickerFridayClose

PriceLastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow


Aegean Marine Petrol ANW $5.42 $4.85 11.75% -48.03% $18.61 $3.89 661,709Capital Product Ptns CPLP $6.06 $6.51 -6.91% -36.94% $11.39 $4.85 330,974Crude Carriers Corp CRU $8.50 $8.39 1.31% -49.52% $18.40 $5.93 182,906DHT Holdings Inc DHT $2.79 $2.64 5.68% -42.12% $5.19 $2.60 578,983Frontline Ltd FRO $6.86 $6.48 5.86% -73.58% $29.47 $6.10 2,432,276General Maritime Corp GMR $0.38 $0.39 -2.26% -88.72% $4.98 $0.34 2,097,463Navios Maritime Acq. NNA $3.33 $3.06 8.89% -17.78% $5.95 $3.00 64,660Nordic American Tanker NAT $17.25 $17.33 -0.46% -34.39% $27.50 $16.02 494,736Omega Navigation Ent. ONAVQ.PK $0.28 $0.33 -15.15% -79.10% $1.54 $0.13 77,118Overseas Shipholding OSG $16.29 $15.81 3.04% -54.57% $38.32 $14.77 886,505Scorpio Tankers Inc STNG $6.24 $6.15 1.46% -39.65% $12.18 $5.74 119,487Teekay Corp TOO $26.40 $25.40 3.94% -5.07% $31.50 $22.01 223,734Teekay Offshore Ptns TK $26.07 $24.58 6.06% -21.40% $37.93 $21.37 505,348Teekay Tankers Ltd TNK $6.06 $6.11 -0.82% -51.94% $13.30 $5.87 607,156Torm A/S TRMD $1.94 $2.03 -4.43% -72.94% $8.00 $1.94 22,007

Tsakos Energy Nav. TNP $6.11 $6.18 -1.13% -39.32% $13.87 $6.09 190,880

Containers TickerFridayClose

Price LastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow


Box Ships Inc TEU $9.37 $8.49 10.37% -14.82% $12.00 $7.29 84,632Costamare Inc CMRE $15.04 $15.05 -0.07% 4.52% $18.48 $10.55 61,811Danaos Corp DAC $3.76 $3.65 3.01% -3.83% $7.87 $2.65 55,019

Diana Containerships DCIX $5.01 $5.14 -2.53% -67.15% $15.50 $4.61 150,437Global Ship Lease Inc GSL $3.07 $3.03 1.32% -39.21% $7.75 $2.56 95,843Horizon Lines Inc HRZ $0.55 $0.70 -21.09% -87.67% $5.95 $0.49 493,131Seaspan Corp SSW $13.30 $12.94 2.78% 1.99% $21.33 $10.97 429,829

LNG/LPG TickerFridayClose

Price LastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow


Golar LNG Ltd GLNG $31.82 $30.19 5.40% 108.37% $39.90 $10.65 807,111Golar LNG Partners LP GMLP $25.60 $24.74 3.48% 3.02% $29.74 $22.41 95,477StealthGas Inc GASS $4.25 $4.01 5.99% -47.79% $8.80 $3.40 93,149Teekay LNG Partners TGP $32.88 $32.07 2.53% -13.63% $41.50 $28.81 193,993


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Page 16

CAPITAL MARKETS DA

Shipping Equities

Mixed Fleet TickerFridayClose

Price LastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow


B+H Ocean Carriers Ltd BHO $4.80 $5.50 -12.73% 12.68% $7.56 $2.65 1,784Euroseas Ltd ESEA $3.75 $3.69 1.63% -2.09% $5.28 $3.38 48,089Knightsbridge Tankers VLCCF $17.06 $19.24 -11.33% -24.81% $25.80 $16.09 187,976NewLead Holdings Ltd NEWL $0.86 $0.79 8.86% -65.60% $5.67 $0.60 6,063

Ship Finance Intl SFL $15.17 $14.04 8.05% -30.57% $23.07 $11.44 570,413TOP Ships Inc TOPS $2.06 $2.40 -14.17% -80.75% $11.60 $1.62 10,757

London ListedCompanies (GBp)

TickerFridayClose

Price LastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow

1 MonthAverage Volum

Hellenic Carriers Ltd HCL.L $54.50 54.50 0.00% -29.68% 81.50 52.00 5,746.1Goldenport Holdings GPRT.L $72.88 73.13 -0.34% -37.44% 132.00 70.00 64,864.3

Milan Listed Company (Euro) TickerFridayClose

Price LastWeek

%Change

YTD%Chg

52 WeekHigh

52 WeekLow

1 MonthAverage

dAmico International Shipping DIS 0.68 0.67 1.49% -31.31% 1.15 0.67 N/A


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Page 17

CAPITAL MARKETS DA

Weekly Trading Statistics

Custom Statistics Prepared Weekly for Capital Link Shipping

BROAD MARKET

Percent Change of Major Indexes for the Week Ending Friday, September 02, 2011

Name Symbol Close Net Gain Percent Gain

Amex Networking Index NWX 239.83 12.22 5.37%

Nasdaq-100 Index NDX 2167.83 5.86 0.27%

Nasdaq Composite Index COMPX 2480.33 0.48 0.02%

Russell 1000 Index RUI 649.3 -1.24 -0.19%

S&P 500 Index SPX 1173.96 -2.84 -0.24%

Russell 3000 Index RUA 694.57 -1.89 -0.27%

Dow Jones Transportation Index TRAN 4445.32 -14.87 -0.33%

Dow Jones Industrial Average Index INDU 11240.26 -44.28 -0.39%Nasdasq Transportation Index TRANX 2072.97 -18.23 -0.87%

Russell 2000 Index RUT 683.49 -8.30 -1.20%

Index Data: INDU (Dow Jones Industrial AverageIndex. The INDU closed today at 11,240.26 for aweekly loss of -44.28 pts (-0.3924%). The high of theweek was 11,739.39 while the low was 11,211.35(close = 5.47% of high/low range). The INDU closed13.06% from its 52 week high (12,928.45) and 9.08%from its 52 week low (10,304.44).

INDU Important Moving Averages

50 Day: 11,886.70

100 Day: 12,134.79

200 Day: 11,996.08

SHIPPING INDUSTRY DATA (50 Companies)

Moving Averages

55.10% closed > 10D Moving Average. 10.20% closed > 50D Moving Average. 4.08% closed > 100D Moving Average. 6.12% closed > 200D Moving Average

Top Upside Momentum (Issues with the greatest100 day upside momentum*)

Top Downside Momentum (Issues with the greatest100 day downward momentum*)

Symbol CloseWeekly %

Change50-Day %

Change

OCNF 15.99 0.88% 142.27%BHO 4.8 -12.73% 37.14%

GLNG 31.82 5.40% -2.63%

CMRE 15.09 0.27% -7.59%

*Momentum: (100D % change) + 1.5*(50D % change) +2.0*(10D % change) for each stock then sort group indescending order and report the top 10.

Symbol CloseWeekly %

Change50-Day %

Change

GMR 0.39 0.00% -72.34%HRZ 0.55 -21.43% -50.45%

TRMD 1.94 -4.43% -52.68%

FRO 6.87 6.02% -55.59%

TOPS 2.06 -14.17% -42.78%

PRGN 1.28 0.00% -36.32%

NEWL 0.86 8.86% -52.49%

GSL 3.07 1.32% -46.23%

TNP 6.14 -0.65% -38.48%

TNK 6.07 -0.65% -32.48%

*Momentum: (100D % change) + 1.5*(50D % change) +2.0*(10D % change) for each stock - sort names that have anegative value in ascending order - report the top 10.


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Page 18

CAPITAL MARKETS DA

Weekly Trading StatisticsTop Consecutive Higher Closes Top Consecutive Lower Closes

Symbol Close Up Streak

GLBS 7 4

ESEA 3.75 2TOPS 2.06 2

Symbol Close Down Streak

ALEX 40.37 -2

OCNF 15.99 -2NMM 14.81 -2

STNG 6.26 -2

TGP 32.88 -2

GNK 6.65 -2

GMR 0.39 -2

FRO 6.87 -2

CRU 8.5 -2

TNP 6.14 -2

Top Largest Weekly Trading Gains Top Largest Weekly Trading Losses

SymbolClose OneWeek Ago

FridayClose

NetChange

%Change

GLBS 5.23 7 1.77 33.84%

SHIP 3.29 3.86 0.57 17.33%GNK 5.85 6.65 0.80 13.68%

ANW 4.85 5.4 0.55 11.34%

TEU 8.49 9.43 0.94 11.07%

NEWL 0.79 0.86 0.07 8.86%

NNA 3.06 3.33 0.27 8.82%

BALT 4.44 4.82 0.38 8.56%

DRYS 2.73 2.95 0.22 8.06%

SFL 14.04 15.17 1.13 8.05%

SymbolClose OneWeek Ago

FridayClose

NetChange

%Change

HRZ 0.7 0.55 -0.15 -21.43%

TOPS 2.4 2.06 -0.34 -14.17%BHO 5.5 4.8 -0.70 -12.73%

VLCCF 18.74 17.06 -1.68 -8.96%

CPLP 6.51 6.06 -0.45 -6.91%

EGLE 1.92 1.79 -0.13 -6.77%

TRMD 2.03 1.94 -0.09 -4.43%

DCIX 5.14 5.01 -0.13 -2.53%

TBSI 0.9 0.88 -0.02 -2.22%

NMM 15.07 14.81 -0.26 -1.73%

Top Largest Monthly Trading Gains (A month hasbeen standardized to 20 trading days)

Top Largest Monthly Trading*Losses (A month hasbeen standardized to 20 trading days)

SymbolPrior

CloseFridayClose

NetChange

% Change

GNK 4.64 6.65 2.01 43.32%BHO 3.5 4.8 1.30 37.14%

GLBS 5.52 7 1.48 26.81%

SFL 12.38 15.17 2.79 22.54%

NMM 12.22 14.81 2.59 21.19%

ANW 4.58 5.4 0.82 17.90%

OCNF 14.25 15.99 1.74 12.21%

SSW 12.1 13.3 1.20 9.92%

GASS 3.95 4.25 0.30 7.59%

TK 24.39 26.09 1.70 6.97%

SymbolPrior

CloseFriday Close

NetChange

%Change

GMR 0.74 0.39 -0.35 -47.30%TRMD 3.45 1.94 -1.51 -43.77%

HRZ 0.83 0.55 -0.28 -33.73%

TBSI 1.26 0.88 -0.38 -30.16%

NEWL 1.15 0.86 -0.29 -25.22%

OSG 20.63 16.29 -4.34 -21.04%

STNG 7.82 6.26 -1.56 -19.95%

FRO 8.39 6.87 -1.52 -18.12%

DHT 3.23 2.8 -0.43 -13.31%

TNP 7.01 6.14 -0.87 -12.41%

Stocks Nearest to 52-Week Highs Stocks Nearest To 52-Week Lows

Symbol 52W High % Away

TOO 30.45 -13.20%

GMLP 29.74 -13.92%

CMRE 17.95 -15.93%

TGP 40.10 -18.01%

TEU 11.80 -20.11%

GLNG 39.90 -20.25%

SB 9.39 -26.28%

ALEX 54.78 -26.30%

ESEA 5.11 -26.59%

NMM 20.53 -27.85%

Symbol 52W Low % Away

TNK 5.87 3.41%

TBSI 0.83 6.02%

PRGN 1.20 6.67%

DHT 2.60 7.69%

VLCCF 15.67 8.87%

STNG 5.74 9.06%

DCIX 4.58 9.37%

NAT 15.76 9.59%

OSG 14.77 10.29%

EGLE 1.62 10.49%

Top Stocks with Highest Weekly Volume Run Rate* > 1


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CAPITAL MARKETS DA

Weekly Trading Statistics

Symbol Close Net % Change Run Rate

TOPS 2.06 -14.17% 7.8659

SHIP 3.86 17.33% 2.8483

TRMD 1.94 -4.43% 2.5645

FRO 6.87 6.02% 2.1524

NM 3.58 0.28% 1.4371

DHT 2.8 6.06% 1.4319

OCNF 15.99 0.88% 1.3985

TNP 6.14 -0.65% 1.3642

SFL 15.17 8.05% 1.3138

ESEA 3.75 3.59% 1.2862

*The Volume Run Rate is calculated by dividing the current week's volume by the average volume overthe last 20 weeks. For example, a run rate of 2.0 means the stock traded twice its average volume.

Top Year-To-Date Gainers Top Year-To-Date Decliners

Symbol YTD Gain %GLNG 117.05%

BHO 12.94%

SSW 10.83%

CMRE 9.27%

ESEA 6.84%

GMLP 3.02%

ALEX 2.96%

DAC 0.53%

TOO 0.19%

Symbol YTD Decline %GMR -88.00%

HRZ -87.41%

TOPS -81.10%

FRO -72.66%

TRMD -72.25%

SHIP -72.03%

TBSI -69.66%

FREE -67.91%

DCIX -66.93%

EXM -66.61%

The following are the 50 members of this group: Symbol Name: ALEX - Alexander & Baldwin Inc;

ANW - Aegean Marine Petroleum Network Inc; BALT - Baltic Trading Ltd; BHO - B+H Ocean Carriers Ltd; CPLP -Capital Product Partners LP; CRU - Crude Carriers Corp; CMRE- Costamere, Inc.; DAC - Danaos Corp; DCIXDiana Containerships; DHT - DHT Maritime Inc; DRYS - DryShips Inc; DSX - Diana Shipping Inc; EGLE - Eagle BulkShipping Inc; ESEA - Euroseas Ltd; EXM - Excel Maritime Carriers Ltd; FREE FreeSeas; FRO - Frontline Ltd;GASS - StealthGas Inc; GLBS Globus Maritime Limited ; GLNG - Golar LNG Ltd; GMLP Golar LNG Partners;GMR - General Maritime Corp; GNK - Genco Shipping & Trading Ltd; GSL - Global Ship Lease Inc; HRZ - HorizonLines Inc; NAT - Nordic American Tanker Shipping; NEWL - NewLead Holdings Ltd; NM - Navios Maritime HoldingsInc; NMM - Navios Maritime Partners LP; NNA - Navios Maritime Acquisition Corp; OCNF - OceanFreight Inc; ONAV- Omega Navigation Enterprises Inc; OSG - Overseas Shipholding Group Inc; PRGN - Paragon Shipping Inc; SB -Safe Bulkers Inc; SBLK - Star Bulk Carriers Corp; SFL - Ship Finance International Ltd; SHIP - Seanergy MaritimeHoldings Corp; SSW - Seaspan Corp; STNG - Scorpio Tankers Inc; TBSI - TBS International Ltd; TEU Box ShipsInc; TGP - Teekay LNG Partners LP; TK - Teekay Corp; TNK - Teekay Tankers Ltd; TNP - Tsakos EnergyNavigation Ltd; TOO - Teekay Offshore Partners LP; TOPS - TOP Ships Inc; TRMD - D/S Torm A/S; VLCCF -Knightsbridge Tankers Ltd

NotesThese symbols were ignored in some analysis (i.e. 200 day moving average) due to the lack of historical data: BALT,

CMRE, CRU, GLBS and STNG. 0DISCLAIMER This communication has been prepared by Knight Equity Markets, L.P. The information set forthabove has been compiled from third party sources believed by Knight to be reliable, but Knight does not represent orwarrant its accuracy, completeness or timeliness of the information and Knight, and its affiliates, are not responsiblefor losses or damages arising out of errors or omissions, delays in the receipt of this information, or any actions takenin reliance thereon. The information provided herein is not intended to provide a sufficient or partial basis on which tomake an investment decision. The communication is for your general information only and is not an offer orsolicitation to buy or sell any security or product.Knight and its affiliates most likely make a market in the securities mentioned in this document. Historical price(s) orvalue(s) are as of the date and, if applicable, time indicated. Knight does not accept any responsibility to update anyinformation contained in this communication. Knight and/or its affiliates, officers, directors and employees, includingpersons involved in the preparation or issuance of this material, may, from time to time, have long or short positionsin, or buy or sell (on a principal basis or otherwise) the securities mentioned in this communication which may beinconsistent with the views expressed herein. Questions regarding the information presented herein or a request for acopy of this document should be referred to your Knight representative. Copyright 2011 Knight Equity Markets, L.P.Member NASD/SIPC. All rights reserved.


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Page 20

CAPITAL MARKETS DA

Shipping Bonds Contributed by

Month to date high yield deal volume is $0.0 billion in 0 deals. The year to date high yield deal volume is $211.154 billion in 471deals. The current quarter to date high yield deal volume is $19.232 billion in 38 deals. There are currently no high yield deals being

marketed.


21/38


Page 21

CAPITAL MARKETS DA

Shipping Bonds


22/38

September 2010 Knight Capital Group, Inc. All rights reserved.

Knight Equity Markets, L.P. and Knight Capital Markets LLC are o-exchange liquidity providers and members of FINRA and SIPC.

To learn about Knight Capital Group, Inc. (NYSE Euronext: KCG) go to knight.com.

Knight Corporate Access is an unbiased service for issuers to

connect with institutional investors. Through a combination of

strategic investor introductions, thought leadership initiatives

and market insight, Knight can help strengthen and diversify a

companys investor base.

Knight is the leading source of o-exchange liquidity in U.S.

equities and has a greater share volume than any U.S. exchange.

For additional information,please contact:

Sandy Reddin

phone 212-455-9255

email [email protected]

www.knight.com


23/38


Page 23

SHIPPING MARKE

Dry Bulk Market - Weekly Highlights

Contributed by

Intermodal

Intermodal Shipbrokers Co.17th km Ethniki Odos Athens-Lamia & 3 Agrambelis Street,145 64 N. Kisia,Athens - Greece

Phone: +30 210 6293300Website: www.intermodal.gr

The dry bulk market continues for yet another week on its recoverypath, fueled by the increased activity seen in the Pacic as therewas a plethora of coal and iron ore cargoes, especially for Capesizevessels. With tonnage lists swiftly tightening for Capesize vessels,owners were able to quickly capitalize on this and push for anincrease in freight levels on most routes. Panamaxes on the otherhand noted a small drop from their previous weeks levels despitethe good volume of activity reported throughout the week. Thisseems to be mainly due to poor sentiment and bad position listsas most of the reported activity seen was in the Pacic basin, whileit was the Atlantic basin that was swamped with open vessels.Similarly Supras also closed in the red this week due to a poorlyperforming Atlantic, with a notable drop this week in the number of xtures reported coming out of ECSA and US Gulf. Unlike Panamxeshowever there seemed to also be minimal activity in the Pacic leading to a signicant increase in open vessels all around. Handies arestill holding fairly stable while showing signs of a slight improvement as activity continues to be rm while we are still seeing a constaninow of stems emerge powering the market for a further improvement in rates.

Baltic Indices / Dry Bulk Spot Rates

Week 3502/09/2011

Week 3426/08/2011 %

PointDiff

2011 2010

AvgIndex

AvgIndexIndex $/day Index $/day

BDI 1,740 1,541 12.9% 199 1,377 2,758

BCI 2,975 $23,899 2,346 $16,716 26.8% 629 1,746 3,480

BPI 1,630 $13,061 1,651 $13,214 -1.3% -21 1,724 3,115

BSI 1,379 $14,415 1,387 $14,508 -0.6% -8 1,360 2,148

BHSI 670 $9,945 667 $9,870 0.4% 3 728 1,124

Despite the recent upward movement in rates, there are still many

in the market that fear that this recovery path cannot be sustainedas there is still a signicant number of vessels being deliveredevery day and an overwhelming orderbook which is scheduledfor delivery within the next 16 months. The trade growth trendobserved since the start of the year has already shown difculty indealing with this oversupply in vessels, while there are now worriesthat this growth in demand may start to slowdown as troubles in theworld economy continue.

Despite this, coal continues to show promise of further growthas demand for this energy commodity remains high especiallyfrom advanced economies such as Japan which have switched asignicant portion of the energy needs, due to its cheaper price andprice stability. At the same time steel producers in most of Asia areholding a bullish outlook on future demand pushing their productionand in turn import needs for both coking coal and iron ore.

0

20

40

60

80

100

120

140

160

180

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

no.Fixtures

Index

Baltic Dry

p The Baltic Dry Index closed on Friday the 2nd of Septembe

at 1,740 points with a weekly gain of 199 points or12.9% oveprevious weeks closing. (Last Fridays the 26th of August closingvalue was recorded at 1,541 points).

0

5

10

15

20

25

30

35

1,000

2,000

3,000

4,000

5,000

6,000

no.Fixtures

Index

Capesize

CAPESIZE MARKET -p The Baltic Cape Index closed onFriday the 2nd of September at 2,975 points with a weekly gain o629 points. For this week we monitor a 26.8% change on a weekon-week comparison, as Last Fridays the 26th of August closingvalue was 2,346 points). It is worth noting that the annual averageof 2011 for the Cape Index is currently calculated at 1,746 pointswhile the average for the year 2010 was 3,480 points.


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SHIPPING MARKE

Dry Bulk Market - Weekly Highlights

WeekNo. of

FixturesHighestFixture

LowestFixture

this week 12 $43,000 $14,000

last week 11 $38,000 $12,000Week Period Charter Trip Charter

this week $15,625 $21,735

last week $14,750 $21,688

For Week 35 we have recorded a total of 12 timecharter xturesin the Capesize sector, 2 for period charter averaging $15,625 perday, while 10 trip charters were reported this week with a dailyaverage of $21,735 per day.

This weeks xture that received the lowest daily hire was the M/VCIC ELLI S, 171448 dwt, built 2003, dely Dalian 6/10 Sept,redely worldwide, $14000, Cargill, for a 4/6 months trading 2000$improved from last week, and the xture with the highest daily hirewas the M/V SALT LAKE CITY, 171670 dwt, built 2005, delyMoneypoint 20/22 Sept , redely China, $43000, Rio Tinto, for a tripvia Seven Islands 5000$ improved from last week.

The BCI is showing a 26.8% increase on a weekly comparison,a67.6% increase on a 1 month basis, a 53.9% increase on a 3month basis, a 126.2%increase on a 6 month basis and a -24.4%decrease on a 12 month basis.

010

2030

4050

607080

90100

1,000

2,000

3,000

4,000

5,000

no.F

ixtures

Ind

ex

Panamax

PANAMAX MARKET - q The Baltic Panamax Index closed onFriday the 2nd of September with a loss at 1,630 points havinglost -21 points on a weekly comparison. It is worth noting thatlast Fridays the 26th of August saw the Panamax index close at1,651 points. The week-on-week change for the Panamax index

is calculated to be -1.3%, while the yearly average for the BalticPanamax Index for this running year is calculated at 1,724 pointswhile the average for 2010 was 3,115 points.

Week No. of FixturesHighestFixture

LowestFixture

this week 52 $30,000 $7,000

last week 46 $25,000 $9,000

Week Period Charter Trip Charter

this week $13,045 $13,860

last week $12,705 $13,683

For Week 35 we have recorded a total of 52 timecharter xturesin the Panamax sector, 11 for period charter averaging $13,045per day, while 41 trip charters were reported this week with a dailyaverage of $13,860 per day.

The daily earnings differential for the Panamaxes, that we calculatefrom all this weeks reported xtures, i.e. the difference between thelowest and highest reported xture for this week was improved, andthis weeks xture that received the lowest daily hire was the M/VGRAND RODOSI, 68788 dwt, built 1990, dely Zhoushan spo, redely China, $7000, Chokang, for a trip via Indonesia -2000$reduced from last week, and the xture with the highest daily hirewas the M/V IRON MAN, 72861 dwt, built 1995, dely Constanza3/6Sept , redely India, $30000, Chart Not Rep, for a trip via BlackSea 5000$ improved from last week.

The BPI is showing a -1.3%decrease on a weekly comparisona 10.1% increase on a 1 month basis, a -9.0%decrease on a 3month basis, a-10.0%decrease on a 6 month basis and a -47.8%

decrease on a 12 month basis.

0

10

20

30

40

50

60

500

1,000

1,500

2,000

2,500

3,000

3,500

noFixtures

Index

Supramax

SUPRAMAX & HANDYMAX MARKET - q The BalticSupramax Index closed on Friday the 2nd of September at 1,379points down with a weekly loss of -8points or-0.6% . The BalticSupramax index on a weekly comparison is with a downward trendas last Fridays the 26th of August closing value was 1,387 pointsThe annual average of the BSI is recorded at 1,360 points while theaverage for 2010 was 2,148 points.


LowestFixture

this week 16 $27,000 $8,500last week 26 $31,000 $6,900


this week $14,750 $15,214

last week $16,875 $14,738

For Week 35 we have recorded a total of 16 timecharter xtures inthe Supramax & Handymax sector, 2 for period charter averaging$14,750 per day, while 14 trip charters were reported this week witha daily average of $15,214 per day.

The minimum vs maximum daily rate differential as analyzed from


25/38


Page 25

SHIPPING MARKE

Dry Bulk Market - Weekly Highlightsour xtures database was overall reduced and from the reportedxtures we see that this weeks xture that received the lowestdaily hire was the M/V AMOY DREAM, 57000 dwt, built 2011,dely Jintang 1/3 Sept, redely EC India, $8500, WBC, for a trip via

Indonesia 1600$ improved from last week, and the xture with thehighest daily hire was the M/V NASCO JADE, 57000 dwt, built2011, dely Houston spot, redely China approx, $27000, ABT, for atrip int petcoke -4000$ reduced from last week.

The BSI is showing a-0.6%decrease on a weekly comparison, a10.1%increaseon a 1 month basis, a -3.2%decrease on a 3 monthbasis, a -0.4%decrease on a 6 month basis and a -30.8%decreaseon a 12 month basis.

0

2

4

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8

10

12

14

16

18

20

500

750

1,000

1,250

1,500

1,750

n

o.Fixtures

Index

Handysize

HANDYSIZE MARKET -p The Baltic Handysize Index closedon Friday the 2nd of September with an upwardtrend at 670 pointswith a weekly gain of3 points and a percentage change of0.4%. It

is noted that last Fridays the 26th of August closing value was 667points and the average for 2011 is calculated at 728 points whilethe average for 2010 was 1,124 points.


LowestFixture

this week 8 $13,500 $8,000

last week 8 $18,000 $7,500


this week $12,000 $11,829

last week $11,100 $11,957

For Week 35 we have recorded a total of 8 timecharter xturesin the Handysize sector, 1 for period charter averaging $12,000per day, while 8 trip charters were reported this week with a dailyaverage of $11,829 per day.

The minimum vs maximum daily rate differential as analyzed fromour xtures database was overall reduced and this weeks xturethat received the lowest daily hire was the M/V CATCH 22, 29142

dwt, built 2009, dely Ghent 2/6 Sept, redely Venezuela approx$8000, Ultrabulk, for a trip via Continent 500$ improved from lasweek and the xture with the highest daily hire was the M/V BLUEPRINCESS, 36913 dwt, built 1986, dely Brazil prompt, redelyeast Mediterranean/Black Sea, $13500, Chart Not Rep, for a trip-4500$ reduced from last week.

The BHI is showing a 0.4% change on a weekly comparison, a0.9%increaseon a 1 month basis, a -12.0%decrease on a 3 monthbasis, a -2.6%decrease on a 6 month basis and a -37.1%decreaseon a 12 month basis.

All Baltic Dry Indices, 1 day, 1week , 1 month, 3 months, 6 months and

12 months % changes based on last Fridays closing gures.

INDEX 1 DAY 1WEEK 1MONTH 3MONTHS 6MONTHS 1 YEAR

BDI 3.4% 12.9% 38.1% 17.3% 39.8% -39.5%

BCI 6.0% 26.8% 67.6% 53.9% 126.2% -24.4%

BPI 0.4% -1.3% 10.1% -9.0% -10.0% -47.8%

BSI -0.1% -0.6% 10.1% -3.2% -0.4% -30.8%

BHI -0.1% 0.4% 0.9% -12.0% -2.6% -37.1%


26/38


Page 26

SHIPPING MARKE

The Week In Review

Contributed by

Golden Destiny S.A.

Golden Destiny S.A.57 Akti Miaouli, Piraeus, 18536,Greece

Phone: +30 210 4295000Website: www.goldendestiny.gr

ECONOMIC ENVIRONMENT

The astonished U.S. debt downgrade seems to have been left behindand the economy has started to show some evidence of strength. The

Hurricane Irene failed to shut the nancial markets and the week begunwith a positive note in the U.S. stocks market. The S&P 500 indexexperienced the biggest increase in almost two months following FederalReserve Chairman Ben S. Bernanke positive announcements that theeconomy isnt weak enough to warrant immediate stimulus via a thirdround of quantitative easing. Furthermore, the U.S. consumer spendinghas shown its biggest growth in the last ve months climbing in Julyby 0.8% with the U.S. savings rate falling to a four month low of 5%,according to gures from the Commerce Department in Washington. Therebound of U.S. consumer spending in July alters the weak outlook ofthe U.S. GDP growth for the second half of the year since the consumerspending accounts almost 70% of the economic activity.

The sentiment changed also in Greece with the benchmark GeneralIndex of the Athens Stock Exchange ending 14.4% higher from the

strategic announcement between the countrys second and third largestlenders, Eurobank and Alpha Bank to merge and create the Greecesbiggest bank and eurozones 25th biggest bank with assets of EUR150bn and EUR 80bn of deposits. Finance Minister Evangelos Venizeloswelcomed the movement stating that the decision by the two banks toproceed with a merger is a positive development and demonstratesthat todays crisis could serve as a corrective opportunity and providea boost in the nancial sector as well as in the real economy. The dealincludes a capital injection of EUR 500mil convertible bonds by the QatarInvestment Authority, which already holds 5% stake in Alpha Bank since2008. The terms of the merger agreement include an exchange ratio of5 new Alpha Bank ordinary shares for every 7 Eurobank EFG ordinaryshares.

Even the positive outlook created in nancial markets this week,the International Monetary Fund cut its growth forecasts for U.S. andeurozone. The Fund slashed its U.S. growth forecast for 2011 to 1.6%from 2.5% two months ago and for the eurozone to 1.9% from 2%,stating that the Federal Reserve and the European Central Bank mustbe ready to easy policy. The fund warned that with growth faltering andination risks diminishing in the eurozone, the European Central Bankshould avoid raising interest rates and have room to ease monetarypolicy if downside growth risks persist. Furthermore, business andconsumer optimism in the eurozone fell in August reinforcing fears fora weak growth in the forthcoming months as political leaders struggle tosmooth the government debt crisis.

The overall weak environment in US and eurozone and the high ination

in both countries have also inuenced the pace of growth of the worldstwo largest emerging countries, China and India. The faltering growthof Chinas top three trading partners, United States, European Unionand Japan, has made the U.S. investment bank JP Morgan to revise itsgrowth forecast for China below 9% with prediction for further reductionto 8.5% in 2012, after enjoying a double digit growth for more than adecade. On the other hand, Indias economy grew by 7.7% in the secondquarter, the slowest growth for 18 months compared with an 8.8% growthin the same period a year ago. The higher interest rates applied by IndianCentral Bank to battle near double digit ination have hit the expansion ofone of the worlds fastest growing economies after China.

SHIPPING MARKETIt is worth highlighting that the announced merger agreement betweenGreeks largest banks, Alpha Bank and EFG Eurobank, creates newopportunities for the Greek ship nancing industry and enhance itscompetitiveness in the shipping nance industry. Experts of the sectocommented on Lloyds List that the shipping portfolios of the two

banks are likely to be complimentary, with the two banks generallyhaving a different clientele from each other and the combined portfoliowould currently surpassed only by Royal Bank of Scotland, DeutscheSchiffsbank and Credit Suisse in terms of lending to Greek owners.

In the dry market, a high level of iron ore xtures from Brazil and WesAustralia contributes to the recent rally of the market with the BDI jumpingin mid-week at levels above 1,600 points mark and surpassing even the1,700 points level, posting a 38%growth since the end of July. Capesizeearnings have been in a positive trend due to rm amount of iron oreChinese demand, but there is still hesitation about the solidness of themarket as Chinas port stockpiles are still high, despite signs of decreasethe last weeks. According to Commodore Research, approximately 92.2million tons of iron ore are currently stockpiled at Chinese ports, 500,000

tons (-0.5%) less than a week ago, but the amount remains close to theall time record of 94,4mt that was stockpiled at the beginning of August.

Spot and period chartering activity has shown signs of strength withearnings for all vessel sizes oating at levels above operating expensesAccording to Commodore Research, a weekly average of 26 iron orextures came to the market in August, 9 more than Julys average of 17iron ore xtures. Capesizes are expected to be the most beneciaries asIndian iron ore exports will be far below the 2010 levels due to ongoingmining bans in the states of Karnataka and Goa and Indias governmengoal to boost its domestic steel production. This implies that moreiron ore will be exported from Australia and Brazil, primarily carried incapesize vessels with panamaxes and supramaxes loosing ground. Iworth mentioning that last weeks iron ore prices hit a three month high

above $180/tonne due to strong Chinese demand and supply outagesaccording to Platts data.

Despite the recent rally of the market and stronger signs on the demandside in terms of Chinese thermal coal and iron ore imports, there is stia pessimistic outlook on the market due to the dry bulk eet growth. Thesecond half of the year, particularly the third quarter, is usually the peakseason but the industry is being prepared for a renewed pressure on themarket. According to a recent BIMCO Report, the active dry bulk eethas grown by 7.4% so far in 2011 with a delivery of 52.5mdwt vesselsand predicts that another 450 newbuilding dry bulk vessels with anaverage size of 84,000 dwt will enter the eet during the remaining partof the year.


27/38


Page 27

SHIPPING MARKE

The Week In ReviewThe BDI closed today at 1,740 points, which is the highest level that themarket has experienced since the beginning of the year. The index isup by 13% from last weeks closing anddown by 39.5 % from a similarweek closing in 2010 when it was2,876 points.The highest rate increasehas been in the capesize segment, BCI up 27%w-o-w, BPI down 1.3%w-o-w, BSI down 0.6% w-o-w, BHSI up 0.4% w-o-w

Capesizes are currently earning $23,899/day, an increase of $7,183/day from a week ago, while panamaxes are earning $13,061/day, anincrease of $153/day. At similar week in 2010, capesizes were earningmore than $39,000/day, while panamaxes were earning more than$25,000/day. Supramaxes are trading at lower levels than capesizesby earning $14,415/day, down by $93/day from last weeks closing, butare still 10.4% higher than panamax earnings. At similar week in 2010,supramaxes were getting region $20,800/day, hovering at discountedlevels from capesize and panamax earnings. Handysizes are trading at$ 9,945/day, up by $75/day from last week, when at similar week in 2010were earning $15,702/day.

In thewet market, the outlook remains pessimistic with crude freight rateshovering below operating expenses and asset values being squeezedat lower levels. The geopolitical events have inuenced dramatically thetanker environment in conjunction with oversupply issues and the hopesfor an early recovery of the industry are limited even now that the Libyascivil war has ended. Libyas oil industry will need at least $25 billion ininvestment to increase its oil production to two million barrels per day,said the chairman of drilling rig operator Challenger Ltd, since the Libyanoil industry needs a lot of revamping after the civil war. The armed conictin Libya has reduced the nations output to 100,000 barrels/day in Julyfrom the 1,6 million barrels/day before the uprising started in February.

The current environment pushes tanker owners for more lay-ups and

scrapping to ease the ample available list of tonnage. Furthermore,owners have to be very selective in choosing voyages so as to increasewait time between cargo voyages and push the charter rates upwards.According to market sources from Tradewinds Press, there has been alarge increase of VLCCs layups enquiries in Southeast Asia as ownersconsider putting their large tankers on ice in Asian lay up anchorages.Most of the enquiries are coming from independent tanker owners ratherthan oil majors. Returns from shipping Middle East crude oil to Asia, theworlds busiest route for supertankers fall to the lowest level in sevendays this week with daily rental income for VLCCs on the benchmarkSaudi Arabia-Japan voyage falling to minus $207, according to the BalticExchange in London. According to a median estimate in a BloombergsNews Survey there are 14% more very large crude carriers to hire overthe next 30 days than there are likely cargoes.

A major operator, Frontline has already reported second quarter netlosses of $35,2mil in 2q 2011that were worse than expected, comparedto net prots of $85,6 mil in the same period last year. Revenues fell to$219.4M from $356.1M over the same period. The company announcedthat that will aim to optimize its eet utilization in the current weak marketthrough super-slow steaming.

In the gas market, prospects seem very positive in terms of demandas the LNG demand recorded a 8.5% year on year in the rst half of2011 and is expected to grow by 12% for the whole year, driven byincremental demand from Japan, the United Kingdom and India, andcontinued growth from traditional buyer South Korea, according toBernstein Research. Japanese LNG demand rose strongly in the

second quarter of 2011 due to the lost nuclear power from the March 11t

earthquake and tsunami. Japans LNG import were up 8% year on yeain H1 2011, or equivalent to 2,64 million mt/year of additional demandcompared with the rst half of 2010. Korea also recorded a 8% yeaon year increase in imports for the same period, or equivalent to 1.33million mt/year of additional demand compared with H2 2010. AsianLNG demand growth, averaging 9% year on year in H1 2011, was thestrongest in India and China, where LNG imports were up 26% and 10%year on year, respectively, the analysts said. Europe saw a 15% increasein LNG imports in H1 2011 compared with the corresponding period of2010, with the UK, in particular, posting a 76% rise, which was equivalento 4.73 million mt/year of incremental demand. The UK, Japan, KoreaIndia, China and emerging markets in Latin America such as Brazil andChile would support the near-term demand outlook, the Bernstein reporsaid. On the longer term, it is expected that the global LNG demand wilgrow from 218 million mt/year in 2010 to 310 million mt/year by 2015 and410 million mt/year by 2020

In the container market, the secondhand ship purchasing activity issignicantly subdued as it seems that there is big gap between sellersand buyers price expectations. The Shanghai Container Freight Indexremained at last week with the European route posting 0.8% week-onweek change. Europe normally imports more goods during the end of thethird quarter, September, as shops begin stockpiling for the Decembeholidays. However, the ongoing European sovereign debt is going tocurb the amount of imports as consumer spending has been hurt also bya high rate of unemployment. Container trade on the Asia-Europe routeone of the busiest container routes, will expand by an average of 4%-6%this year, compared with a 15% growth in eet capacity, according toMorgan Stanley.

In the shipbuilding industry, Chinese shipbuilding industry faces

reduced ordering activity for the period January-July 2011 comparingwith a similar period in 2010. Despite the low newbuilding prices offeredby Chinese yards, the demand for newbuilding vessels in the mainvessel segments, bulk carriers and tankers, has dropped signicantlydue to pessimistic outlook that the industry holds for both sectors giventhe overow of newbuilding deliveries through 2013. South Koreanyards have dropped their interest to more sophisticated newbuildingvessels, offshore units, LNG carriers, meg

shipping newsletter week35 (1)

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