Market insight By Stelios Kollintzas Tanker Chartering - Specialized Products In an overall view, the edible oil markets across the globe seem to be in the doldrums, with low demand of tonnage in the regional South East Asia mar-ket and the deep sea trade and a slightly steadier pace of activity in South America and the Black Sea market.

Although volumes to India were slightly advanced during the last weeks in view of the Ramadan, which starts this June, freight levels have remained steady. Ample tonnage halted any improvement on rates, and owners are still waiting to take advantage of the seasonal boost in demand for edible oil.

The outlook on the long haul MR market is similar, if not worst. Whilst last month non-eco-ships could earn up to USD 17K per day and eco ships USD 19K, numbers have fallen to USD 16k and USD 18k respectively. On the FOSFA and NB vessels the outlook is slightly better, since the list is shorter and owners could be in the position to earn something extra.

Surprisingly, the Black Sea market has so far seen no impact arising from the political unrest in Ukraine, however, the situation is still of great concern amongst the shipping community. Rates in the Black Sea have been fairly stable with long haul cargoes to India, China and Iran being quickly covered, especially on the larger parcels of 25,000mts – 35,000mts. The best earners in this range are the CIQ candidates, where the list is tighter. Smaller ship-ments on the Black Sea to Med and Continent are showing significant activi-ty, steady rates and good tonnage/cargo balance.

Delays in South America are still making the life of traders difficult, forcing charterers to work on extended laycans or ending up working on replace-ment tonnage. Overall the region shows a positive pulse with stable activity and a fair number of outstanding enquiries in the market to India and less for Korea and China. Freight rates to India from Upriver Argentina and Brazil to West Coast or East Coast India are in the USD 48-50pmt region basis 2:2 and 40,000mts quantity shipments, where WCI+ECI are on the USD 53-54pmt range.

Finally, CIQ candidates to China could earn up to USD 64-66 on the ton. The South American market has also been an alternative option for several own-ers, who were looking to escape the prevailing poor CPP market in the Atlan-tic during the last weeks. Even with the addition of these vessels on the list, demand remained steady.

As far as the near future of the edible oil market is concerned, one should be cautious in making any forecasts. While meteorologists express an increased chance of an “El-Nino’’ around June or July, we wait to see how the shipping market will react on the impacts of the weather phenomenon. “El-Nino” can induce drought in some parts of the world while drench in others. Malaysia and Indonesia, the two biggest exporters of Palm Oil, expect 10% - 20% de-crease of output. Let’s hope that any effect on seaborne trade would be minor if the phenomenon occurs.

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

Uninspiring activity for Capes has pushed the BDI to below 1,000 points once more, while things for the segment improved in the Pacific just before the weekend. The BDI closed today (27/05/2014) at 973 points, up by 9 points compared to Friday’s levels (23/05/2014) and a decrease of 37 points compared to previous Tuesday’s closing (27/05/2014). The comeback of the Suezmax market allowed for smiles to return in the crude carriers side, while rates for VL are expected to remain under pressure during June as well. The BDTI Friday (23/05/2014), was at 691 points, an increase of 39 points and the BCTI at 532, unchanged, com-pared to previous Friday (16/05/2014).

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

This week’s increased SnP activity was entirely due to Singaporean own-er, BW group, who was responsible for almost half of the vessels report-ed changing hands, while second-hand dry bulker prices continued to soften. On the tanker side, we had the sale of the “RYUHO MARU” (281,050dwt-blt 99, Japan), which was picked up by Greek buy-ers for a price of $ 21.7m. On the dry bulker side, we had the sale of the “E WHALE” (319,869dwt-blt 10, S. Korea), which was picked up by Greek buyers for a price of US$ 61.0m.

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

This was another week of stalling prices on the newbuilding front, while at the same activity resumed the slow pace of the previous weeks. We are still looking at only a handful of orders being report on both the tankers and dry bulkers side, with a big chunk of them being exercised options rather than freshly inked deals. The course of the newbuilding market so far this year as well as since the beginning of the crisis has not allowed yards to enjoy long periods of sufficient business coming in, with the exception of last year. In this spirit, consolidation has been an unavoidable route for the industry and the recent announcement of another takeover in the Japanese front was no surprise. Namura Ship-building, probably one of the most financially sound Japanese yards, is taking over Sasebo Heavy Industries, in a deal that will result in the crea-tion of the second largest shipbuilding group in the country and will allow Namura to better deal with increasing competition in the industry. We are set to see more similar deals going forward, as the degree of consolidation needed under the current market environment is certainly higher especially if the pace of activity remains at these levels for more a longer period. In terms of new orders, Japanese owner Santoku Senpaku has returned to Tsuneishi Zhoushan in Japan, to exercise options for a pair of eco design Kamsarmaxes (81,500dwt), set to be delivered be-tween 2016 and 2017.

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

India continues to monopolize both the headlines as well as any action that is currently taking place in the Indian sub-Continent demolition scene. The waves of enthusiasm, sent across the market after the result of the recent national elections in the country, continue to support sen-timent, which appears to be stronger than what it has been during the year so far. The monsoon season is expected to weigh down on Indian demand to some extent, but we expect breakers to return with an equally strong appetite once this is over. At the same time, the competi-tion remains fairly inactive in the light of the budget announcements in Pakistan and Bangladesh, where prices have also softened a bit this past week as breakers in both countries are not too eager to stock up on tonnage ahead of June. Average prices this week for wet tonnage were at around 325-510$/ldt and dry units received about 310-500$/ldt.

Weekly Market Report

Issue: Week 21| Tuesday 27th May 2014

© Intermodal Research 27/05/2014 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 33.5 6,378 34 7,506 -15.0% 27,529 21,133

280k MEG-USG 24 5,793 24 5,823 -0.5% 18,790 7,132

260k WAF-USG 45 22,032 45 22,332 -1.3% 39,038 26,890

130k MED-MED 73 21,358 60 11,710 82.4% 28,182 17,714

130k WAF-USAC 70 19,256 55 8,842 117.8% 19,572 13,756

130k BSEA-MED 75 25,816 55 9,618 168.4% 28,182 17,714

80k MEG-EAST 98 18,880 100 19,913 -5.2% 16,590 11,945

80k MED-MED 95 19,748 80 11,304 74.7% 28,074 13,622

80k UKC-UKC 97.5 10,586 92.5 6,685 58.4% 35,889 18,604

70k CARIBS-USG 120 21,301 115 19,316 10.3% 27,557 16,381

75k MEG-JAPAN 95 14,880 100 16,963 -12.3% 10,992 12,011

55k MEG-JAPAN 117 14,956 118 15,280 -2.1% 10,521 12,117

37K UKC-USAC 105 5,307 110 6,741 -21.3% 9,628 11,048

30K MED-MED 115 17,952 115 16,037 11.9% 18,413 17,645

55K UKC-USG 115 17,313 120 19,519 -11.3% 25,226 14,941

55K MED-USG 110 14,489 112.5 15,821 -8.4% 23,333 12,642

50k CARIBS-USAC 125 18,068 145 25,711 -29.7% 28,425 15,083

Vessel Routes

Week 21 Week 20$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

May-14 Apr-14 ±% 2014 2013 2012

300KT DH 75.3 73.8 2.0% 71.2 56.2 62.9

150KT DH 50.0 50.0 0.0% 48.3 40.1 44.9

110KT DH 38.0 38.0 0.0% 36.6 29.2 31.2

75KT DH 34.8 34.3 1.5% 33.0 28.0 26.7

52KT DH 29.0 29.0 0.0% 29.5 24.7 24.6

Aframax

LR1

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Chartering

With the exception of the VL segment, the rest of the crude carriers market witnessed improved demand this week, which also finally translated to higher rates. Rates for VLs managed to hold on to their levels overall, de-spite the fact that the ballasters list in the MEG kept lengthening, as activity slightly improved compared to the first weeks of May. Nonetheless, rates for the segment are still under pressure, with no visible signs of a substan-tial upside taking place during next month, at least as far as MEG business is concerned. The West Africa VL is looking a bit stronger at the same time, on the back of rates for Suezmax tonnage continuing to gain strength in the region.

This past week has in fact closed off with great rate improvements across all of the Suez main routes. The absence of Libyan cargoes continues to sup-port West Africa business, which is being blessed by increased North Sea demand, allowing for the segment to achieve the best returns across the market and providing owners with a vital breather after having watched rates being battered for the greater part of the spring season.

The Aframax market has also seen some better numbers this past week, with both the cross-MED and cross-UKC Aframax almost doubling their TCE rates, while the Aframax Caribs has also gained on the back of slightly better activity.

Sale & Purchase

In the VLCC sector, we had the sale of the “RYUHO MARU” (281,050dwt-blt 99, Japan), which was picked up by Greek buyers for a price of $ 21.7m.

In the MR sector we had the sale of the “IVER EXPRESS” (46,825dwt-blt 07, S. Korea), which was picked up by Dutch buyers for a price of $ 22.0m.

Wet Market

Indicative Period Charters

- 1 year - 'LADY M' 2003 115,418dwt

- - $ 15,500/day - Scorpio Tankers

- 1 year - 'STAVANGER BLISS ' 2008 105,700dwt

- - $ 15,000/day - Saudi Aramco

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 21 Week 20 ±% Diff 2014 2013

300k 1yr TC 23,750 25,250 -5.9% -1500 26,179 20,087

300k 3yr TC 27,750 27,750 0.0% 0 26,986 23,594

150k 1yr TC 19,250 19,250 0.0% 0 20,321 16,264

150k 3yr TC 23,250 23,250 0.0% 0 21,986 18,296

110k 1yr TC 15,500 15,500 0.0% 0 15,774 13,534

110k 3yr TC 17,250 17,250 0.0% 0 17,081 15,248

75k 1yr TC 15,500 15,500 0.0% 0 15,548 15,221

75k 3yr TC 16,500 16,500 0.0% 0 16,319 15,729

52k 1yr TC 15,000 15,000 0.0% 0 15,274 14,591

52k 3yr TC 15,750 15,750 0.0% 0 16,081 15,263

36k 1yr TC 14,500 14,500 0.0% 0 14,667 13,298

36k 3yr TC 15,500 15,500 0.0% 0 15,426 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

60

80

100

120

140

160

180

200

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 27/05/2014 3

0500

1,0001,5002,0002,5003,0003,5004,0004,500

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000$

/da

y

Average T/C Rates

AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

170K 6mnt TC 25,250 27,000 -6.5% -1,750 25,242 17,625

170K 1yr TC 23,250 24,750 -6.1% -1,500 26,164 15,959

170K 3yr TC 24,250 24,250 0.0% 0 24,069 16,599

76K 6mnt TC 12,750 12,750 0.0% 0 15,063 12,224

76K 1yr TC 13,250 13,500 -1.9% -250 14,440 10,300

76K 3yr TC 14,500 14,500 0.0% 0 14,440 10,317

55K 6mnt TC 12,250 12,500 -2.0% -250 13,498 11,565

55K 1yr TC 12,500 12,500 0.0% 0 12,879 10,234

55K 3yr TC 12,750 12,750 0.0% 0 12,760 10,482

45k 6mnt TC 10,750 10,750 0.0% 0 11,617 9,771

45k 1yr TC 10,750 10,750 0.0% 0 11,045 8,852

45k 3yr TC 11,000 11,000 0.0% 0 11,021 9,237

30K 6mnt TC 9,750 9,750 0.0% 0 10,188 8,244

30K 1yr TC 10,000 10,000 0.0% 0 10,050 8,309

30K 3yr TC 10,250 10,250 0.0% 0 10,188 8,926

Han

dym

axH

and

ysiz

e

Period

2013

Pan

amax

Sup

ram

ax

Week

21

Week

20

Cap

esi

ze

2014$/day ±% Diff

Chartering

The Dry Bulk market remained under pressure during this past week, with

all indices pointing down compared to the previous Friday. The Capesize

market noted the biggest decline across the board, while rates for the rest

of the dry bulk segments remained under significant pressure on the back

of absence of significant enquiry all around. With this current week kicking

off with a bank holiday and fresh business continuing to be scarce, we ex-

pect that thin volumes shall continue to prevail in the spot market for at

least the short term.

The Atlantic Capesize drifted to a slow close last week, with enquiry ex Bra-

zil remaining limited, while the average rate for the segment has now

slipped back to below $ 10,000/day on the back of disappointing business in

both basins. Towards the end of the week we saw some improved numbers

for iron ore cargoes in the Pacific and it seems that the trend will most

probably feed into this week as well.

The Atlantic Panamax improved slightly with activity in the region sustain-

ing its volumes and ECSA continuing to offer fresh inquiry albeit nothing

impressive so far. At the same time, business in the Pacific remained thin,

as tonnage continued building up in the East, with owners currently willing

to concede on rates in order to find cover.

Rates for Handy/Supra tonnage trended sideways in the Atlantic as the

week came to a quiet close, with activity in both the USG and ECSA remain-

ing soft. Handysize business was around last dones, with most believing

that the market has now bottomed at these levels.

Sale & Purchase

In the VLOC sector, we had the sale of the “E WHALE” (319,869dwt-blt 10,

S. Korea), which was picked up by Greek buyers for a price of US$ 61.0m.

In the Post-Panamax sector we had the sale of the “SEA STAR” (92,500dwt-

blt 10, China) which was also picked by HK based owner, Great Harvest, for

a price of US$ 22.8m.

May-14 Apr-14 ±% 2014 2013 2012

180k 52.4 52.3 0.2% 49.0 35.8 34.6

76K 26.9 27.8 -3.2% 27.0 21.3 22.7

56k 26.5 27.0 -1.9% 26.6 21.5 23.0

30K 20.5 20.8 -1.2% 20.8 18.2 18.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Indicative Period Charters

- 11 to 14 mos - 'CORONIS' 2006 74,381dwt

- Haldia 05/15 Jun - $ 11,500/day - Cerraghil

- 10 to 12 mos - 'GLOBAL TRUST' 2012 179,407dwt

- China 01/05 Jun - $ 22,250/day - SwissMarine

Dry Market

Index $/day Index $/day Index Index

BDI 964 1,027 -63 1,237 1,205

BCI 1,358 $9,721 1,530 $11,205 -172 -13.2% 2,025 2,106

BPI 1,001 $8,016 1,041 $8,328 -40 -3.7% 1,141 1,186

BSI 866 $9,052 899 $9,395 -33 -3.7% 1,041 983

BHSI 480 $7,089 485 $7,195 -5 -1.5% 628 562

16/05/2014

Baltic IndicesWeek 21

23/05/2014Week 20

Point

Diff

2014 2013$/day

±%

© Intermodal Research 27/05/2014 4

Secondhand Sales

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

VLCC SYNERGY QUEEN 309,741 2010IMABARI SAIJO,

JapanMAN-B&W DH $ 79.0m DHT Holdings

VLCC SAMHO CROWN 300,482 1996HYUNDAI HEAVY

INDS - U, S. KoreaB&W DH $ 21.1m undisclosed

auction, probably

demo buyers

VLCC RYUHO MARU 281,050 1999 IHI - KURE, Japan Sulzer Sep-14 DH $ 21.7m Greek

10 X MR

SPP GOSEONG

S1148 / S1149,

8 X ELANDRA MRs

49,999 -

50,300

2013-

2014SPP , S. Korea MAN-B&W - DH undisclosed

Singaporean

(BW Group)

MR IVER EXPRESS 46,825 2007HYUNDAI MIPO

DOCKYARD, S. KoreaMAN-B&W Jul-17 DH $ 22.0m Dutch purchase option

10 X

PROD/

CHEM

STREAM LUNA,

STREAM M IA,

SHITANOE 7058 /

7060 / 7061 / 7062 /

7065, SHITANOE

1306 / 1307 / 1308

19,9002008-

2016

FUKUOKA /

SHITANOE, JapanMAN-B&W - DH undisclosed

Singaporean

(BW Group)

PROD/

CHEMMARILENA 12,948 2009

STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W DH $ 13.0m undisclosed

SMALL FROSTA 5,675 2006CELIKTEKNE TUZLA,

TurkeyMAN-B&W Aug-16 DH $ 7.1m undisclosed

SMALL TROMA 5,565 2007CELIKTEKNE TUZLA,

TurkeyMAN-B&W Mar-17 DH $ 7.5m undisclosed

Tankers

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

VLOC E WHALE 319,869 2010HYUNDAI HEAVY

INDS - U, S. KoreaWarts i la Oct-15

6 X 30t

CRANES$ 61.0m Greek

CAPE CAPE OCEANIA 152,025 1994

CHINA

SHIPBUILDING

KEE, Ta iwan

B&W Jul-14 $ 10.4mGerman

(Blumenthal )

POST

PMAXSEA STAR 92,500 2010

YANGFAN GROUP

CO LTD, ChinaMAN-B&W Feb-15 $ 22.8m

HK based

(Great Harvest)

SMAXWESTERN

SINGAPORE52,239 2003

TSUNEISHI HEAVY

CEBU, Phi l ippinesB&W Sep-17

4 X 30t

CRANES$ 17.5m Indian

HMAX WANDERLUST 42,000 2006

BULYARD

SHIPBUILDING I,

Bulgaria

B&W Feb-164 X 30t

CRANES$ 15.5m

Bulkgarian

(Navibulgar)

HANDY CITRUS VENUS 28,492 2001IMABARI

IMABARI, JapanB&W Mar-16

4 X 30,5t

CRANES$ 10.2m Greek

HANDY AMAR JUNIOR 22,242 1992SAIKI JUKOGYO,

JapanMitsubishi May-15

4 X 30t

CRANES$ 5.0m Lebanese

Bulk Carriers

© Intermodal Research 27/05/2014 5

Secondhand Sales

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

STAR LYGRA 50,741 2013

HYUNDAI MIPO

DOCKYARD, S.

Korea

MAN-B&W Dec-184 X 75t

CRANES$ 49.0m

USA based

(CIT Finance LLC)

long period BB charter

back, end of Apri l sa le

LORD CURZON 27,868 1997NAIKAI ZOSEN -

SETODA, JapanB&W Oct-17

4 X 30t

CRANES$ 9.0m undisclosed

NARJES 5,215 1995MARMARA

YARIMCA, TurkeyMaK Feb-17

2 X 40t

CRANES$ 1.4m Iraqi

MPP/General Cargo

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

LPG EEKLO 29458 1995KAWASAKI HEAVY

INDS -, JapanB&W Sep-15 36,770 $ 34.0m

Singaporean

(Global United)

Gas/LPG/LNG

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

POST

PMAXYM UTMOST 8,208 2006

HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Oct-16 $ 58.0m

45mos T/C at

$33k/day

POST

PMAXYM UNISON 8,208 2006

HYUNDAI HEAVY

INDS - U, S. KoreaMAN-B&W Nov-16 $ 58.0m

45mos T/C at

$33k/day

PMAX MSC CURITIBA 4,545 1997HYUNDAI HEAVY

INDS - U, S. KoreaB&W Nov-17 $ 9.0m Swiss (MSC)

FEEDER MERKUR BEACH 1,728 1996

SZCZECINSKA

STOCZNIA S,

Poland

Sulzer Feb-163 X 40t

CRANES$ 3.5m undisclosed

Containers

undisclosed

© Intermodal Research 27/05/2014 6

This was another week of stalling prices on the newbuilding front, while at the same activity resumed the slow pace of the previous weeks. We are still looking at only a handful of orders being report on both the tankers and dry bulkers side, with a big chunk of them being exercised options rather than freshly inked deals. The course of the newbuilding market so far this year as well as since the beginning of the crisis has not allowed yards to enjoy long periods of sufficient business coming in, with the exception of last year. In this spirit, consolidation has been an unavoidable route for the industry and the recent announcement of another takeover in the Japanese front was no surprise. Namura Shipbuilding, probably one of the most financially sound Japanese yards, is taking over Sasebo Heavy Industries, in a deal that will result in the creation of the second largest shipbuilding group in the country and will allow Namura to better deal with increasing competition in the in-dustry. We are set to see more similar deals going forward, as the degree of consolidation needed under the current market environment is certainly higher especially if the pace of activity remains at these levels for more a longer period.

In terms of reported deals last week, Japanese owner Santoku Senpaku has returned to Tsuneishi Zhoushan in Japan, to exercise options for a pair of eco design Kamsarmaxes (81,500dwt), set to be delivered between 2016 and 2017.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

21

Week

20±% 2014 2013 2012

Capesize 180k 57.5 57.5 0.0% 56.1 49 47

Kamsarmax 82k 30.8 30.8 0.0% 30.5 27 28

Panamax 77k 29.5 29.5 0.0% 29.1 26 27

Supramax 58k 27.5 27.5 0.0% 27 25 25

Handysize 35k 23.5 23.5 0.0% 23 21 22

VLCC 300k 101.0 101.0 0.0% 98.5 91 96

Suezmax 160k 66.0 66.0 0.0% 64 56 58

Aframax 115k 55.0 55.0 0.0% 54 48 50

LR1 75k 46.5 46.5 0.0% 45.8 41 42

MR 52k 37.0 37.0 0.0% 36.8 34 34

LNG 150K 186.0 186.0 0.0% 185.6 185 186

LGC LPG 80k 79.0 79.0 0.0% 77.0 71 71

MGC LPG 52k 67.0 67.0 0.0% 65.7 63 62Gas

Bu

lke

rsTa

nke

rs

Vessel

Indicative Newbuilding Prices (million$)

10

30

50

70

90

110

mil

lion

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

1 Tanker 19,950 dwt Kitanihon, Japan 2017 Belgian (CMB NV) undisclosed

3 Tanker 19,900 dwtFukuoka / Shitanoe,

Japan2016

Norwegian

(Stream Tankers )undisclosed

2 Bulker 250,000 dwt Qingdao Beihai, China -Singapore based (Cara

Shipping)undisclosed options

2 Bulker 180,000 dwt Qingdao Beihai, China -Singapore based (Cara

Shipping)undisclosed options

2 Bulker 81,500 dwtTsuneishi Zhoushan,

Japan2016-2017 Japanese (Santoku Senpaku) undisclosed options, eco design

2 Cruise 15,000 dwt Fincantieri, Italy 2017-218 Swiss (MSC Cruises) $ 700.0m

2 Gas 176,000 cbm Hyundai HI, S.Korea 2016-2017 Norwegian (Knutsen NYK) undisclosed LNG

1 Gas 35,000 cbmHyundai Mipo, S.

Korea2016 West Africa LPG $ 53.5m LPG

2 Gas 20,400 cbmSinopacific Offshore,

China2016 French (Jacaar Holdings) undisclosed LPG/LNG/Ethylene

Newbuilding Orders Size

© Intermodal Research 27/05/2014 7

India continues to monopolize both the headlines as well as any action that is currently taking place in the Indian sub-Continent demolition scene. The waves of enthusiasm, sent across the market after the result of the recent national elections in the country, continue to support sentiment, which ap-pears to be stronger than what it has been during the year so far. The mon-soon season is expected to weigh down on Indian demand to some extent, but we expect breakers to return with an equally strong appetite once this is over. At the same time, the competition remains fairly inactive in the light of the budget announcements in Pakistan and Bangladesh, where prices have also softened a bit this past week as breakers in both countries are not too eager to stock up on tonnage ahead of June. Average prices this week for wet tonnage were at around 325-510$/ldt and dry units received about 310-500$/ldt.

The highest prices amongst recently reported deals, was that paid by Indian breakers for the VLOC ‘PHYLLIS N’ (285,768dwt-40,839ldt-blt 90), which re-ceived a firm price of $ 500/ldt.

Demolition Market

Week

21

Week

20±% 2013 2012 2011

Bangladesh 485 490 -1.0% 422 440 523

India 510 510 0.0% 426 445 511

Pakistan 475 480 -1.0% 423 444 504

China 325 325 0.0% 365 384 451

Bangladesh 465 475 -2.1% 402 414 498

India 500 500 0.0% 405 419 484

Pakistan 455 460 -1.1% 401 416 477

China 310 310 0.0% 350 365 432

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

PHYLLIS N 285,768 40,839 1990

DAEWOO

SHIPBUILDING &, S.

Korea

BULKER $ 500/Ldt Indian

DA FU STAR 69,006 12,216 1987NAMURA IMARI,

JapanBULKER $ 470/Ldt Bangladeshi

VALDIVIA 68,232 16,250 1994 ZALIV, Ukraine TANKER $ 402/Ldt Indian as-is Chile

PALANIMALAI 33,056 8,861 1992 AESA SESTAO, Spain TANKER $ 435/Ldt Indian as-is Vizag

Demolition Sales

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

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr

Analysts: Mr. George Lazaridis | g.lazaridis@intermodal.gr

Ms. Eva Tzima | e.tzima@intermodal.gr

Finance News

“Backing for OSG

Overseas Shipholding Group (OSG) has won the back-ing of more creditors for its $1.5bn share sale as it seeks to complete its bankruptcy restructuring.

A group holding more than half of its 2024 7.5% notes had been opposed to the deal.

But now it has agreed to buy up to $190m of stock that is not sold in the offering, according to OSG law-yer Luke Barefoot, Bloomberg reported.

The US tanker owner this month revised its restruc-turing, ditching a previously favoured pact with its lenders in favour of a competing proposal from equi-ty holders.

The lender plan originally backed by OSG would have seen holders of the company’s senior debt - now mostly hedge funds - come away with 97% of the equity in the reorganised company.

Equity holders were relegated to a total recovery of $61m, which one analyst calculated to be worth about $2 per share.

The equity-holders plan features a larger commit-ment from US bank Jefferies: a $600m term loan secured by OSG’s US-flag fleet, a $600m term loan secured by its international fleet, and a $75m revolv-ing loan for each unit designed to provide working capital upon exit from Chapter 11.

A hearing on the matter has been delayed until Tues-day.” (Trade Winds)

Commodities & Ship Finance

23-May-14 22-May-14 21-May-14 20-May-14 19-May-14W-O-W

Change %

10year US Bond 2.540 2.560 2.540 2.510 2.540 0.0%

S&P 500 1,900.53 1,892.49 1,888.03 1,872.83 1,885.08 0.8%

Nasdaq 4,185.81 4,154.34 4,131.54 4,096.89 4,125.81 1.5%

Dow Jones 16,606.27 16,543.08 16,533.06 16,374.31 16,511.86 0.6%

FTSE 100 6,815.80 6,820.60 6,821.00 6,802.00 6,844.60 0.2%

FTSE All-Share UK 3,630.98 3,631.41 3,628.99 3,614.99 3,632.12 0.4%

CAC40 4,493.15 - 4,469.03 4,452.35 4,469.76 0.9%

Xetra Dax 9,768.01 - 9,697.87 9,639.08 9,659.39 1.3%

Nikkei 14,462.17 14,337.79 14,042.17 14,075.25 14,006.44 2.6%

Hang Seng 22,965.86 - 22,836.52 22,834.68 22,704.50 0.6%

DJ US Maritime 356.56 356.54 347.00 348.43 352.76 1.1%

$ / € 1.36 1.37 1.37 1.37 1.37 -0.4%

$ / ₤ 1.68 1.69 1.69 1.68 1.68 0.1%

¥ / $ 101.90 101.65 101.19 101.36 101.32 0.4%

$ / NoK 0.17 0.17 0.17 0.17 0.17 -0.2%

Yuan / $ 6.22 6.22 6.22 6.22 6.21 0.1%

Won / $ 1,024.88 1,025.05 1,026.20 1,024.66 1,023.20 0.0%

$ INDEX 86.70 86.60 86.60 86.40 86.20 0.3%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,240

1,300

1,360

1,420

1,480

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

23-May-14 16-May-14W-O-W

Change %

Rotterdam 882.0 883.5 -0.2%

Houston 991.0 979.0 1.2%

Singapore 900.0 904.0 -0.4%

Rotterdam 584.0 575.0 1.6%

Houston 605.5 603.0 0.4%

Singapore 600.5 595.0 0.9%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 23-May-14 16-May-14

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 10.37 9.31 11.4%

BALTIC TRADING NYSE USD 6.84 6.32 8.2%

BOX SHIPS INC NYSE USD 1.52 1.50 1.3%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 10.84 10.75 0.8%

COSTAMARE INC NYSE USD 21.79 21.52 1.3%

DANAOS CORPORATION NYSE USD 6.29 6.20 1.5%

DIANA SHIPPING NYSE USD 11.32 10.92 3.7%

DRYSHIPS INC NASDAQ USD 3.08 3.03 1.7%

EAGLE BULK SHIPPING NASDAQ USD 3.47 3.25 6.8%

EUROSEAS LTD. NASDAQ USD 1.22 1.17 4.3%

FREESEAS INC NASDAQ USD 1.25 1.14 9.6%

GLOBUS MARITIME LIMITED NASDAQ USD 3.63 3.50 3.7%

GOLDENPORT HOLDINGS INC LONDON GBX 350.90 360.00 -2.5%

HELLENIC CARRIERS LIMITED LONDON GBX 41.50 43.00 -3.5%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.58 3.58 0.0%

NAVIOS MARITIME HOLDINGS NYSE USD 9.18 8.31 10.5%

NAVIOS MARITIME PARTNERS LP NYSE USD 18.56 18.27 1.6%

NEWLEAD HOLDINGS LTD NASDAQ USD 2.83 31.50 -91.0%

PARAGON SHIPPING INC. NYSE USD 5.87 5.91 -0.7%

SAFE BULKERS INC NYSE USD 8.62 8.09 6.6%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.35 1.35 0.0%

STAR BULK CARRIERS CORP NASDAQ USD 11.04 11.19 -1.3%

STEALTHGAS INC NASDAQ USD 11.02 10.03 9.9%

TSAKOS ENERGY NAVIGATION NYSE USD 7.48 6.95 7.6%

TOP SHIPS INC NASDAQ USD 4.29 4.51 -4.9%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

27/05/2014

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