weekly market reportfiles.irwebpage.com/reports/shipping/0ygu35tu0z...broker’s insight by john...
TRANSCRIPT
Broker’s insight by John Cotzias
China is the largest producer of steel in the world. Current sta�s�cs show
that Chinese steel produc�on accounts for 46% of the world crude steel pro-
duc�on. Chinese output exceeds that of Europe, USA, Russia, and Japan all
combined together. The Chinese produc�on is nearly 6 �mes that of the USA
and all this demand for steel is absorbed by China’s growing industry and
fuels its vast economic growth.
However China is slowing down, and as this growth is based on investment
and real estate, we feel that in general there is an overall tendency invest-
ment’s to be gradually reduced, as China’s Central Bank fights to overcome
the overhea�ng of the Chinese Economy through interest rate rises and re-
serve requirement expansion. Any a-empt to tackle infla�on and reduce it
always results in a slowdown in demand and that is evident in the economic
data we are studying. The Chinese automo�ve industry already shows a y2y
reduc�on of nearly 6.6% which follows another drop in the previous year of
approx. 1.5% so these could well be a clear indica�on that China is shi2ing to
a slower speed of growth! The Cement, automobile, Pig Iron and Electricity
industries are all showing signs that things are not theore�cal but are already
happening. We feel that there is a high likelihood that steel prices will fall
further as a result of the strong connec�on between prices of hot rolled steel
and the currently falling iron ore prices.
If we look at the recent price trend of Iron Ore Fe60% content, it is trading
today at a significant discount compared with prices of 12 months ago when
we had peaked at historical high levels nearing $187 per ton. Since Septem-
ber 2011 when iron/ore was trading at $177 per ton, we saw the commodity
price fall and remain stable un�l today at $135-$136 per ton levels. Histori-
cally if we look at the chart we see that over the past 30 years and up un�l
2004 iron/ore monthly prices were ranging between $9-$15 per ton. Since
2004 the price has shot up more than tenfold.
On the other hand Cold rolled steel prices have increased gradually since
2001, peaking just before the world financial crisis of Oct 2008 when they
dropped drama�cally by more than 60%. China performed over the past 2-3
months some serious overstocking, and has created some large “mountains”
of Iron/Ore stock piles reaching as much as 98.4mil tons, which will likely
need to be replenished at some point. Current sta�s�cs show that China,
overtook Japan to become the world’s greatest coal importer in 2011 and
this coal dependency is due to expand further in 2012 with the growth of
new coal-fired power genera�on plants.
However, the ques�on is, with a slowing economy, how much of the usual
massive intake will be chopped-off the corner? The futures market and prices
for iron ore forward swaps show a higher price that indicates a market belief
of a growing demand in the future. We believe that the current rise in iron
ore forward prices may well indicate a possible restocking of iron/ore by the
Chinese in the near-term. Iron Ore exports from Brazil during Jan 2012 are
seen to be at their lowest levels since 2009 ( something that coincides with
the recent rock bo-om freight levels witnessed for Capes) and this is a figure
that has plenty of room for improvement. We need to stress here that Vale
of Brazil has halted produc�on this past month due to the torren�al rainfall
and as produc�on is geIng back to normal over the past week we feel that
Iron Ore trade, the backbone of dry bulk shipping may have some be-er days
ahead for the Capesize market whose average is down to around $5,500 per
day levels .
Chartering (Wet: Stable+ / Dry: So�er- )
The Dry bulk Index is now only a breadth away from reaching a new
recorded low. The current record low of 663 points was recorded on 5th
December 2008, a level that has not been matched over the past twenty
years. The BDI closed today (31/01/2012) at 680 points, a decrease of 22
points compared to Monday’s (30/01/2012) closure, and down by 127
points compared to the previous Tuesday’s levels (24/01/2012). With
Eastbound ac�vity being limited during the start of the week, rates for
crude oil carriers witnessed a small correc�on, puIng a temporary
pause to their recent recovery path. The BDTI Monday (30/01/2012),
was at 822, 17 point up and the BCTI at 654, an increase of 37 points
compared to the previous Monday’s levels (23/01/2012).
Sale & Purchase (Wet: So�er- / Dry: So�er- )
The market is s�ll holding fairly quiet, with limited buying interest com-
pared to a year ago keeping this essen�ally a buyers market for the mo-
ment. The current uncertainty surrounding the market is making any
sales condi�ons difficult while the lack of cash and rela�vely low freight
rates is keeping asset prices under pressure. On the Tankers side, most
notable was the reported sale of the Product/Chemical Tanker “Clipper
Miki” (19,998dwt-blt 09 Japan) which went to Singapore based buyers
for a price of $ 23.5m. While on the dry bulker of interest was the re-
ported sale of the Handymax “Id Nord” (46,640dwt-blt 99 Japan) which
went to Singaporean buyers for a reported price of around $ 14.8m.
Newbuilding (Wet: Stable- / Dry: Stable- )
With the Lunar New Year Fes�vi�es now over, we could see market
ac�vity pick up slightly once again. Market condi�ons however are not
ideal, as there are already significant worries over the orders already in
place. Several analysts are expressing doubts as to if current orders will
be delivered as planned, as a significant por�on of them s�ll do not have
financial backing in place. The main problems for shipbuilders will be to
provide innova�ve products in order to en�ce owners while at the same
�me provide interest buyers with some sort of access to financing. This
is why many shipbuilders par�cularly in China have been focused in
promo�ng new eco-design vessels with more complex financing struc-
tures such as BBHP. These are all in their infancy stage with few owners
showing keen interest in their current form. With regard to orders this
week, most noteworthy reported deal was the le-er of intent signed by
Norway’s Frontline for six firm MR (51,000dwt) tankers at S.Korea’s STX
for a price of around $ 32.5m each.
Demoli'on (Wet: Firm+ / Dry: Firm+ )
With breakers in the Indian Sub-con�nent remaining very ac�ve, sen�-
ment improved further pushing offered prices up further. Due to this
firm ac�vity specula�on amongst buyers was considerable as many ex-
pect that things may heat up further despite the ample demo candi-
dates available in the market. Even Chinese breakers seem to be taking
a more aggressive approach to such an extent that we wouldn’t be sur-
prised if the price gap decreases further over the next couple of weeks.
Offered Prices have firmed further this week, with wet tonnages now
climbing to around 440-505$/ldt and dry units rising to about 420-485$/
ldt.
Weekly Market Report
Week 04|Tuesday 31st January 2012
© Intermodal Research 31/01/2012 2
6080100120140160180200220240260
WS points
CLEAN - WS RATESTC2 TC4 TC6 TC1
20
40
60
80
100
120
140
160
WS points
DIRTY - WS RATESTD3 TD5 TD8 TD4
Jan-12 Dec-11 ±% 2012 2011 2010
300KT DH 64.0 58.0 10.3% 64.3 77.6 87.2
150KT DH 49.0 47.0 4.3% 49.3 54.4 62.6
105KT DH 37.3 35.4 5.2% 37.5 39.1 44.7
70KT DH 31.9 31.4 1.5% 32.1 35.2 38.8
45KT DH 26.1 25.8 1.3% 26.4 28.4 26.5
Aframax
Panamax
VLCC
Suezmax
Indicative Market Values ($ Million) - Tankers
Vessel 5yrs old
MR
Week 4 Week 3 ±% Diff 2012 2011
300k 1yr TC 20,500 19,500 5.1% 1000 19,500 25,197
300k 3yr TC 26,250 26,250 0.0% 0 25,575 31,681
150k 1yr TC 16,500 16,500 0.0% 0 16,250 19,837
150k 3yr TC 20,500 20,500 0.0% 0 20,200 23,830
105k 1yr TC 14,500 14,000 3.6% 500 13,875 15,707
105k 3yr TC 16,500 16,500 0.0% 0 16,200 18,335
70k 1yr TC 13,500 13,500 0.0% 0 13,250 14,995
70k 3yr TC 14,750 14,750 0.0% 0 14,450 16,263
45k 1yr TC 14,750 14,500 1.7% 250 14,250 13,918
45k 3yr TC 15,250 15,000 1.7% 250 14,700 14,738
36k 1yr TC 12,750 12,750 0.0% 0 12,500 12,471
36k 3yr TC 13,500 13,500 0.0% 0 13,200 13,412
Panamax
MR
Handy
size
TC Rates
$/day
VLCC
Suezmax
Aframax
2012 2011
WS
points$/day
WS
points$/day $/day $/day
265k AG-JAPAN 58 34,899 63 43,946 -9% 32,765 18,217
280k AG-USG 38 9,198 38 8,966 0% 5,483 2,504
260k WAF-USG 65 49,718 68 53,178 -4% 49,049 25,714
130k MED-MED 85 31,666 90 35,623 -6% 39,392 25,125
130k WAF-USAC 85 25,765 80 21,129 6% 25,742 13,373
130k AG-CHINA 85 24,125 85 24,057 0% 22,957 14,815
80k AG-EAST 110 17,083 110 17,092 0% 15,989 12,726
80k MED-MED 83 10,598 89 13,445 -7% 17,519 13,577
80k UKC-UKC 100 24,556 120 40,141 -17% 29,767 18,604
70k CARIBS-USG 130 22,355 125 20,015 4% 15,003 8,240
75k AG-JAPAN 88 3,691 88 3,565 0% 5,043 10,467
55k AG-JAPAN 105 4,346 105 4,233 0% 3,488 7,768
37K UKC-USAC 140 9,574 165 14,832 -15% 13,236 11,022
30K MED-MED 175 25,074 180 26,317 -3% 26,968 18,458
55K UKC-USG 120 13,992 118 12,811 2% 12,763 11,266
55K MED-USG 120 12,680 118 11,425 2% 11,556 9,676
50k CARIBS-USAC 110 7,846 100 4,359 10% 6,951 10,700
Spot Rates
Vessel Routes
Week 4 Week 3
±%
Dir
tyA
fram
axC
lean
VLC
CS
ue
zmax
Chartering
It seems as though there was a slight slide in rates this week for VLCCs,
likely due to the lack of Eastbound requirements during the start of the
week. The drop however was fairly small and it seems as though things
were looking firmer on Friday. Though tonnage availability is s�ll ample , it
looks as though we may witness boosted ac�vity over the next couple of
days which could possibly help rates rise further. With the East however s�ll
feeding most of the demand growth for crude, rate hikes as such tend to be
mainly limited to Eastbound voyages.
Rela�vely mixed market condi�ons were seen for Suezmaxes last week, as
the Black Sea/Med region seemed to be plagued by limited ac�vity and
increasing number of open vessels in the area, whereas The WAF was in for
a notable boost and a slight shortage of promptly available vessels. All this
has le2 the market with fairly mixed sen�ment, although there is a slight
bias towards a so2ening market due to the unfavourable posi�on lists.
There was a sudden end to the improving market condi�ons for Aframaxes
in the North Sea, as there was a sudden end to fresh inquires coming in
while there was an increased amount of ballasters arriving causing a sudden
increase in open tonnage. Con�nuing poor condi�ons in the Black Sea/Med
were not helping either, deteriora�ng overall sen�ment and pushing many
owners to ballast North in hope of be-er rates.
Sale & Purchase
Most notable deal this week was the reported sale of the Product/Chemical
Tanker “Clipper Miki” (19,998dwt-blt 09 Japan) which went to Singapore
based buyers for a price of $ 23.5m.
Also worth men�oning is the sale of the Product/Chemical Tanker “Eastern
Goodwill” (8,740dwt-blt 01 Japan) which went to S.Korea’s DM Shipping for
a price of around $ 8.3m.
Wet Market
Indicative Period Charters
- 3+3 mos - 'Eagle Valencia' 2005 306,000dwt
- - $ 30,000/day - PDVSA
- 11+14 mos - 'Politisa Lady' 2005 46,000dwt
- dely West end/Jan - $ 13,750/day - Koch
© Intermodal Research 31/01/2012 3
0
1,000
2,000
3,000
4,000
5,000
Index
Baltic Indices
BCI BPI BSI BHSI BDI
0
10,000
20,000
30,000
40,000
50,000
$/day
Average T/C Rates
AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI
Index $/day Index $/day Index Index
BDI 726 862 -15.8% -136 1,076 1,549
BCI 1,465 $5,566 1,554 $6,688 -5.7% -89 1,887 2,237
BPI 815 $6,488 1,020 $8,131 -20.1% -205 1,229 1,749
BSI 695 $7,268 807 $8,441 -13.9% -112 942 1,377
BHSI 426 $6,264 485 $7,115 -12.2% -59 513 718
27/01/12
Week 3
±%2012 2011Point
Diff20/01/12
Baltic IndicesWeek 4
170K 6mnt TC 14,000 14,000 0% 0 14,575 18,474
170K 1yr TC 17,500 17,500 0% 0 17,763 17,138
170K 3yr TC 17,750 17,750 0% 0 17,825 17,599
70K 6mnt TC 12,500 13,250 -6% -750 13,669 17,238
70K 1yr TC 11,000 11,375 -3% -375 11,388 14,863
70K 3yr TC 11,875 12,125 -2% -250 12,138 14,500
52K 6mnt TC 9,500 12,000 -21% -2,500 11,638 15,587
52K 1yr TC 10,750 11,750 -9% -1,000 11,450 14,308
52K 3yr TC 12,500 12,750 -2% -250 12,450 14,046
45k 6mnt TC 8,250 10,000 -18% -1,750 9,575 13,416
45k 1yr TC 9,250 9,750 -5% -500 9,575 12,450
45k 3yr TC 10,750 11,000 -2% -250 10,700 12,403
30K 6mnt TC 8,000 8,500 -6% -500 8,575 11,712
30K 1yr TC 8,000 9,250 -14% -1,250 9,013 11,787
30K 3yr TC 11,000 11,500 -4% -500 11,138 12,044
Han
dy
max
Ha
nd
ysiz
e
Period
2011
Pa
na
ma
xSu
pra
ma
x
Week
4
Week
3
Cap
esi
ze
2012$/day ±% Diff
Chartering
The downward spiral in Capesize freight rates seems to have slowed down
considerably as it near absolute rock bo-om levels. As expected the Lunar
New Year fes�vi�es had a nock on effect on the already ba-ered rates early
on in the week. All this le2 the market with more open tonnage to cover
while the Chinese New Year did not bring any swi2 recovery in demand
levels. At the current state of things it will take a considerable increase in
trade to bring freight rates back to respectable levels.
With the Pacific basin almost completely silent, the Panamax market was
dealt another quick blow, as rates lost another 20% on a week-on-week
comparison. It seems as though we could have further weakening over the
next couple of days as there are considerably swollen tonnage lists all
around while newbuilding deliveries con�nue to pile on to the growing
oversupply problem.
Similarly, Supras and Handies were no�ng loses across all regions, as the
limited demand was unable to provide any sort of support for owners caus-
ing a strong collapse in freight levels. Significant levels of open tonnage
have started to accumulate in both the Pacific and Atlan�c, poin�ng to a
like further slowdown and even lower freight rates.
Sale & Purchase
Most noteworthy deal this week was the reported sale of the Handymax “Id
Nord” (46,640dwt-blt 99 Japan) which went to Singaporean buyers for a
reported price of around $ 14.8m.
Also of interest was the reported sale of the handysize ‘Good Pil-
grims’ (29,400dwt-blt 09 India) which went to Thai Buyers, namely Precious
Shipping for a price of about $ 17.7m.
Jan-12 Dec-11 ±% 2012 2011 2010
170k 38.0 36.2 5.0% 38.3 43.5 57.4
75K 27.5 26.5 3.8% 27.8 31.3 39.0
52k 23.5 22.7 3.5% 24.0 25.6 30.2
29K 22.5 21.0 7.1% 23.0 23.5 26.2Handysize
Capesize
Panamax
Supramax
Indicative Market Values ($ Million) - Bulk Carriers
Vessel 5 yrs old
Dry Market
Indicative Period Charters
- 5/9 mos - 'C. Phoenix' 2011 176,000dwt
- dely retro Rongsheng 6 Jan - $ 11,800/day - Swiss Marine
- 10/14 mos - 'Global Bonanza' 2011 74,916dwt
- dely Oita 3/8 Feb - $ 10,000/day - GMI
© Intermodal Research 31/01/2012 4
Secondhand Sales
Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments
MR BOX 50,366 2009SPP SHIPBUILDING,
S. KoreaMAN-B&W Dec-14 DH $ 30.0m undisclosed
MR KING EDWIN 35,775 2000 DAEDONG, S. Korea B&W Oct-15 DH undisclosed undisclosed
PROD/
CHEMCLIPPER MIKI 19,998 2009
FUKUOKA
NAGASAKI, JapanMAN-B&W Apr-14 DH $ 23.5m Singaporean StSt/Epoxy coated
PROD/
CHEM
STENA
CARIBBEAN9,996 2002
GDYNIA STOCZNIA
SA, PolandWarts i la Jun-12 DH $ 13.0m Austra l ian Epoxy coated
PROD/
CHEM
GOLDEN
MICRONESIA9,091 2004
KURINOURA
DOCKYARD CO,
Japan
Mitsubishi Jul -14 DH $ 9.0mSingaporean
(Wi lmar)
StSt tanks , incl TC
ti l l 08/2012
PROD/
CHEM
EASTERN
GOODWILL8,740 2001
SHIN KURUSHIMA
IMABARI, JapanMAN-B&W Nov-16 DH $ 8.3m
S.Korea (DM
Shipping)StSt tanks
PROD/
CHEMCHARTSMAN 6,397 1993
MALAYSIA
SHIPYARD & EN,
Malays ia
Blackstone Oct-13 DH $ 3.3m NigerianEpoxy coated, old
sa le
Tankers
Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments
SIGLOO CRYSTAL 12,240 1991BENETTI
VIAREGGIO, Ita lyB&W Jan-12 $ 6.0m undisclosed Ethylene Carrier
HAYDOCK 4,313 2001 KITANIHON, Japan Mitsubishi May-16 $ 12.0mPhi l ippino
(Petrol i ft)
Gas/LPG/LNG
Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
SMAX ABG 315 54,000 2011 ABG, India MAN-B&W4 X 30t
CRANES$ 28.0m
Singaporean
(Global Bulk
Carriers )
HMAX ID NORD 46,640 1999MITSUI TAMANO,
JapanB&W Feb-14
4 X 30.5t
CRANES$ 14.8m Singaporean
HMAX SOLON 42,183 1987SASEBO SASEBO,
JapanSulzer Dec-17
5 X 25t
CRANESundisclosed Bangladeshi
HMAX AFRICAN STAR 42,004 1991
OSHIMA
SHIPBUILDING,
Japan
Sulzer May-154 X 25t
CRANES$ 8.5m undisclosed on subs
HMAX SEALIGHT 41,093 1984SANOYAS CORP,
JapanSulzer Oct-14
4 X 25t
CRANES$ 4.2m undisclosed
HANDYCALLIROE
PATRONICOLA29,608 1985
NKK CORP -
SHIMIZU, JapanSulzer Jul -15
4 X 16t
CRANES$ 5.0m Syrian
HANDY GOOD PILGRIMS 29,400 2009HINDUSTAN,
IndiaMAN-B&W Aug-14
4 X 30t
CRANES$ 17.7m
Thai (Precious
Shipping)
Bulk Carriers
© Intermodal Research 31/01/2012 5
Week
4
Week
3±% 2012 2011 2010
Bangladesh 495 485 0.0% 488 523 422
India 505 500 1.0% 494 511 427
Pakistan 500 495 1.0% 491 504 425
China 440 440 0.0% 440 451 383
Bangladesh 470 460 0.0% 465 498 375
India 485 475 2.1% 470 484 394
Pakistan 475 470 1.1% 465 477 388
China 420 420 0.0% 420 432 364
Dry
Indicative Demolition Prices ($/ldt)
Markets
We
t
350
400
450
500
550
600
$/ldt
Dry Demolition Prices
Bangladesh India Pakistan China
350
400
450
500
550
600
$/ldt
Wet Demolition Prices
Bangladesh India Pakistan China
With breakers in the Indian Sub-con�nent remaining very ac�ve, sen�ment
improved further pushing offered prices up further. Due to this firm ac�vity
specula�on amongst buyers was considerable as many expect that things
may heat up further despite the ample demo candidates available in the
market. Even Chinese breakers seem to be taking a more aggressive ap-
proach to such an extent that we wouldn’t be surprised if the price gap de-
creases further over the next couple of weeks. Offered Prices have firmed
further this week, with wet tonnages now climbing to around 440-505$/ldt
and dry units rising to about 420-485$/ldt.
Most notable this week was the price paid by Indian breakers for the contain-
er vessel ‘Khaled Ibn Al Waleed’ (35,615dwt-12,858ldt-blt 83) which report-
edly went for a price of about $ 514/Ldt basis delivery ‘as is’ Khor Fakkan
including some bunkers remaining on board.
Demoli'on Market
Name Size Ldt Built Yard Type $/ldt Breakers Comments
ATLANTIC
PROSPERITY311,690 40,378 1995 HITACHI, Japan TANKER undisclosed Indian (Green Recycling)
PRINCESS
KATHERINE164,100 26,263 1986 BOELWERF, Belgium BULKER $ 440/Ldt Chinese bss 'as is' China
PIONEER EPOS 75,470 13,404 1981 VEROLME, Brazi l BULKER $ 475/Ldt Pakistani
SEA BIRD 63,868 11,600 1984 HYUNDAI, S. Korea BULKER $ 510/Ldt Pakistanidely India-Pakistan range. Incl
250Tof bunkers ROB
KHALED IBN AL
WALEED35,615 12,858 1983 HYUNDAI, S. Korea CONT $ 514/Ldt Indian
bss 'as is' Khor Fakkan incl some
bunkers ROB
BM FREEDOM 31,247 9,030 1980 KANASASHI, Japan GCG $ 462/Ldt Indian bss 'as is' Dubai
GEMINI 29,870 9,199 1986CHINA SHIPBLDG,
Chinese TaipeiTANKER $ 495/Ldt Indian
SIAM STAR 29,617 6,232 1984 MITSUBISHI, Japan BULKER $ 488/Ldt Indian less 3% comms
BM HOPE 29,129 7,933 1978CHINA SHIPBLDG,
Chinese TaipeiBULKER $ 462/Ldt Bangladeshi bss 'as is' Chittagong
SEA DREAM 26,223 7,296 1981 CCN MAUA, Brazil BULKER $ 500/Ldt Indiandely India-Pakistan range. Incl
full set of spares
AGIOS NECTARIOS I 23,969 5,734 1982 IMABARI, Japan BULKER $ 492/Ldt Indian
BM DEFENDER 22,882 8,405 1981 HASHIHAMA, Japan GC $ 462/Ldt Bangladeshi bss 'as is' Batam
BM INTREPID 19,310 5,940 1983 WESER, Germany GC $ 462/Ldt Bangladeshi bss 'as is' Chittagong
BM PRIDE 18,982 7,174 1983 SWAN, U.K. GC $ 462/Ldt Pakistani bss 'as is' Karachi
MALLAK 18,270 5,596 1981 CAMIALTI, Turkey BULKER $ 500/Ldt Indian
BM ADVENTURE 17,520 6,478 1980 CANECO, Brazil GC $ 462/Ldt Bangladeshi bss 'as is' Jakarta
YASAKA BAY 10,647 5,503 1983 HITACHI, Japan REEFER $ 489/Ldt Indian
Demolition Sales
© Intermodal Research 31/01/2012 6
Week
4
Week
3±% 2012 2011 2010
Capesize 170k 47.5 47.5 0.0% 47 53 58
Panamax 75k 28.0 28.0 0.0% 28 33 35
Supramax 57k 26.0 26.5 -1.9% 26 30 31
Handysize 30k 22.0 22.0 0.0% 22 25 27
VLCC 300k 97.5 98.5 -1.0% 97 102 104
Suezmax 150k 59.5 60.0 -0.8% 59 64 66
Aframax 110k 51.5 51.5 0.0% 51 54 55
LR1 70k 42.0 42.5 -1.2% 43 45 46
MR 47k 33.5 34.5 -2.9% 34 36 36
LPG M3 80k 71.5 71.5 0.0% 71 73 72
LPG M3 52k 62.5 62.5 0.0% 62 64 65
LPG M3 23k 45.5 45.5 0.0% 45 46 46
Indicative Newbuilding Prices (million$)
Ga
s
Vessel
Bu
lke
rsTa
nk
ers
With the Lunar New Year Fes�vi�es now over, we could see market ac�vity
pick up slightly once again. Market condi�ons however are not ideal, as there
are already significant worries over the orders already in place. Several ana-
lysts are expressing doubts as to if current orders will be delivered as
planned, as a significant por�on of them s�ll do not have financial backing in
place. The main problems for shipbuilders will be to provide innova�ve prod-
ucts in order to en�ce owners while at the same �me provide interest buyers
with some sort of access to financing. This is why many shipbuilders par�cu-
larly in China have been focused in promo�ng new eco-design vessels with
more complex financing structures such as BBHP. These are all in their infan-
cy stage with few owners showing keen interest in their current form.
With regard to orders this week, most noteworthy reported deal was the
le-er of intent signed by Norway’s Frontline for six firm MR (51,000dwt)
tankers at S.Korea’s STX for a price of around $ 32.5m each.
10
20
30
40
50
60
70million $
Bulk Carriers Newbuilding Prices (m$)
Capesize Panamax Supramax Handysize
20
40
60
80
100
120
million $
Tankers Newbuilding Prices (m$)
VLCC Suezmax Aframax LR1 MR
Newbuilding Market
Units Type Yard Delivery Buyer Price Comments
1 Tanker 52,000 dwt Hyundai Mipo, S.Korea 2014 Turkish (Ditas-Denizci lik)
6 Tanker 51,000 dwt STX, S.Korea 2013-2014 Norwegian (Frontline) $ 32.5m LOI signed
Newbuilding Orders
Size
The informa�on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa�on to be factual and reliable without mak-
ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc�on 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 informa�on 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 wri-en authoriza�on of Intermodal Shipbrokers Co.
Compiled by Intermodal Research Department | Mr George Lazaridis
E-mail: [email protected]
On behalf of Intermodal Sale & Purchase, Newbuilding and Chartering Departments
E-mail: [email protected], [email protected], [email protected]
1,640
1,660
1,680
1,700
1,720
1,740
80
90
100
110
120
130
goldoil
Basic Commodities Weekly Summary
Oil WTI $ Oil Brent $ Gold $
27-Jan-12 20-Jan-12W-O-W
Change %
Rotterdam 937.0 963.0 -2.7%
Houston 987.5 997.5 -1.0%
Singapore 969.0 976.0 -0.7%
Rotterdam 678.5 685.0 -0.9%
Houston 670.5 676.5 -0.9%
Singapore 737.5 736.5 0.1%
Rotterdam 694.5 697.5 -0.4%
Houston 700.5 706.5 -0.8%
Singapore 750.5 750.0 0.1%
Bunker Prices
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80
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18
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World Economy News
U.S. stocks fell for a fourth day, the longest losing streak for the Dow Jones Industrial Average since August, while 10-year Treasuries gained as reports showed American consumer confidence trailed estimates and business activity cooled in January. The Dow lost 66.11 points to 12,587.61 and the Standard & Poor’s 500 Index slipped 0.3 percent to 1,308.57 at 11:27 a.m. in New York. The Dollar Index rose 0.2 percent as the euro fell 0.5 percent to $1.3083. Ten- year Treasury yields lost three basis points to 1.82 percent. (Bloomberg)
Energy & Commodi'es
Iran, the master of brinkmanship, is keeping the oil market guessing. There is an increasing possibility that embattled Greece could become entangled in Tehran’s dealings with Europe, with dire consequences. When the European Union announced an oil embargo on the country from July 1 – designed to give Greece, Spain and Italy time to find alternative suppliers – Iran responded with a threat to pre-empt the ban halting ex-ports immediately. The Iranian parliament failed on Sunday to approve a bill to promptly stop European exports. (Financial Times)
Finance News
Teekay Offshore Partners has raised $100m through a
bond issue in Norway, its second such foray since the
autumn of 2010.
The Teekay Corpora�on spinoff said on Wednesday it
had placed NKr600m in a five-year series of bonds
that will mature in January 2017, which comes at the
mid-point of the NKr500m-NKr700m range an-
nounced earlier in the week.
The proceeds, which will become available to the
company at the end of the month, have been
swapped into US dollars, which comes to roughly
$100m at today’s prevailing exchange rate.
All interest and principal payments will be swapped
into US dollars, Teekay Offshore said. The statement
did not announce the interest rate, and the compa-
ny’s spokesperson at its Vancouver head office could
not be reached.
“The proceeds of the bonds are expected to be used
for general partnership purposes,” Teekay Offshore
said. (Lloyds List)
CompanyStock
ExchangeCurr. 27-Jan-12 20-Jan-12
W-O-W
Change %Max 3wk Min 3wk
AEGEAN MARINE PETROL NTWK NYSE USD 5.05 4.83 4.6% 5.14 5.00
BALTIC TRADING NYSE USD 4.12 4.48 -8.0% 4.43 4.09
BOX SHIPS INC NYSE USD 8.28 8.42 -1.7% 8.57 8.28
CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.70 7.36 4.6% 7.70 7.31
COSTAMARE INC NYSE USD 15.02 15.67 -4.1% 15.34 14.83
DANAOS CORPORATION NYSE USD 3.60 3.48 3.4% 3.60 3.49
DIANA SHIPPING NYSE USD 8.34 8.44 -1.2% 8.40 8.31
DRYSHIPS INC NASDAQ USD 2.21 2.36 -6.4% 2.26 2.20
EAGLE BULK SHIPPING NASDAQ USD 1.43 1.21 18.2% 1.43 1.29
EUROSEAS LTD. NASDAQ USD 2.80 2.73 2.6% 2.92 2.80
EXCEL MARITIME CARRIERS NYSE USD 1.46 1.60 -8.8% 1.59 1.46
FREESEAS INC NASDAQ USD 0.46 0.43 7.0% 0.46 0.41
GENCO SHIPPING NYSE USD 7.19 7.50 -4.1% 7.66 7.19
GLOBUS MARITIME LIMITED NASDAQ USD 4.30 4.32 -0.5% 4.39 3.96
GOLDENPORT HOLDINGS INC LONDON GBX 60.37 60.00 0.6% 60.78 59.25
HELLENIC CARRIERS LIMITED LONDON GBX 44.50 43.50 2.3% 44.50 42.94
NAVIOS MARITIME ACQUISITIONS NYSE USD 2.99 3.00 -0.3% 3.08 2.99
NAVIOS MARITIME HOLDINGS NYSE USD 3.69 3.62 1.9% 3.69 3.55
NAVIOS MARITIME PARTNERS LP NYSE USD 16.27 15.95 2.0% 16.27 16.03
NEWLEAD HOLDINGS LTD NASDAQ USD 0.70 0.57 22.8% 0.76 0.65
OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.16 0.18 -11.1% 0.18 0.16
PARAGON SHIPPING INC. NYSE USD 0.64 0.65 -1.5% 0.64 0.62
SAFE BULKERS INC NYSE USD 7.28 6.67 9.1% 7.28 6.86
SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.16 2.37 -8.9% 2.22 2.16
STAR BULK CARRIERS CORP NASDAQ USD 1.12 0.92 21.7% 1.12 0.98
STEALTHGAS INC NASDAQ USD 4.26 4.54 -6.2% 4.56 4.26
TSAKOS ENERGY NAVIGATION NYSE USD 6.56 6.17 6.3% 6.60 6.35
TOP SHIPS INC NASDAQ USD 1.70 1.83 -7.1% 1.76 1.70
Maritime Stock Data
27-Jan-12 26-Jan-12 25-Jan-12 24-Jan-12 23-Jan-12W-O-W
Change %
10year US Bond 1.900 1.930 2.010 2.060 2.070 -6.4%
S&P 500 1,316.33 1,318.43 1,326.06 1,314.65 1,316.00 0.1%
Nasdaq 2,816.55 2,805.28 2,818.31 2,786.64 2,784.17 1.1%
Dow Jones 12,660.46 12,734.63 12,756.96 12,675.75 12,708.82 -0.5%
FTSE 100 5,733.45 5,795.20 5,723.00 5,751.90 5,782.56 0.1%
FTSE All-Share UK 2,958.86 2,987.74 2,949.97 2,962.12 2,980.33 0.1%
CAC40 3,318.76 3,363.23 3,312.48 3,322.65 3,338.42 -0.1%
Xetra Dax 6,511.98 6,539.85 6,421.85 6,419.22 6,436.62 1.7%
Nikkei 8,841.22 8,849.47 8,883.69 8,785.33 8,765.90 0.9%
Hang Seng 20,501.67 20,439.14 - - - 1.9%
Dow Jones 221.43 222.53 221.00 219.15 220.78 -1.1%
$ / € 1.31 1.31 1.29 1.30 1.30 1.5%
$ / ₤ 1.57 1.57 1.56 1.56 1.56 1.1%
₤ / € 0.84 0.84 0.83 0.83 0.84 0.4%
¥ / $ 76.97 77.58 78.06 77.59 76.90 0.0%
$ / Au$ 1.07 1.07 1.05 1.05 1.06 1.9%
$ / NoK 0.17 0.17 0.17 0.17 0.17 2.0%
$ / SFr 0.92 0.92 0.93 0.93 0.93 -1.5%
Yuan / $ 6.31 6.31 6.31 6.31 6.31 -0.3%
Won / $ 1,122.59 1,121.59 1,129.34 1,132.80 1,130.30 -0.9%
$ INDEX 79.30 79.40 80.30 80.10 79.70 -1.1%
Oil WTI $ 99.60 99.70 99.40 99.00 99.60 1.3%
Oil Brent $ 111.50 110.80 109.80 110.00 110.60 1.5%
Gold $ 1,720.90 1,710.25 1,666.00 1,677.30 1,658.65 3.8%
Market Data
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Commodi'es & Financials