Broker’s insight by Yannis Olziersky

The dry bulk market, a�er facing its worst quarter in the last 14 years due to

the con�nuous fleet expansion and weaker demand (especially for the two

largest classed vessels, i.e. capes & panamaxes), has finally managed to gain

some upward momentum. The BCI and BPI average of the 4 TC routes at the

�me of wri�ng stands at $ 11,556/day and $ 7,055/day respec�vely.

Capers found ground to recover due to increased Chinese appe�te for re-

stocking of iron ore, with import volume recording very high levels in Sep-

tember. Following this upward movement, Panamaxes managed to also

recover in the first two weeks of October, especially in the Atlan�c where

hires increased from the extremely lows of $ 1,000/day to $ 7,000/day , a

boost mainly a5ributed to the revival in US soyabean exports. In the Pacific,

recovery found ground in a plethora of spot cargoes of coal coming out of

Indonesia. This recovery however, doesn’t seem to be able to keep a steady

pace, as Indonesian coal miners have lowered their 2012 output target on

the back of expecta�ons of a so�ening demand from China. Such bearish

expecta�ons will definitely put pressure on Panamax and Supramax rates in

the region. In the mean�me, the smaller segments (handymaxes/handies),

have seen average earnings hold at rela�vely stable levels but close to their

seven month lows.

With demand failing to improve in order to cover the colossal increase of

tonnage, the dry bulk shipping market will likely con�nue to be under pres-

sure over the next year with low freight rates being the main characteris�c.

On the other hand s�mulus measures coming out of the Eurozone, US and

China may assist in clearing some of the sector’s excess supply. Especially the

1 trillion Yuan s�mulus plan, which was announced by China in order to

boost its economic growth, gives hope for a small recovery, as the plan will

mainly focus on local infrastructure, effec�vely pumping up demand for iron

ore.

Although s�mulus packages are good news, they are not sufficient to help

the market’s recovery; balance between supply and demand is they key and

in order to achieve this, owners should first refrain from making massive new

building orders and secondly, demoli�on ac�vity should preserve its current

pace, if not increase further. With less than three months le� �ll the end of

the year, 2012 is set to be a new record year. By the �me of wri�ng, nearly

44million dwt has been removed, a figure already in excess of the previous

record year which was back in 1985 where 42.5million dwt had been sent to

the beaches.

On the SnP front, despite the market’s weak sen�ment and future outlook,

there is some ac�vity with regards to concluded deals. Japanese owners

con�nue to be the most serious sellers despite the fact that in some occa-

sions they withdrew their sales candidate as they weren’t ready to “digest”

what the market was offering. Most important though, is that there is con-

siderably more ac�vity in inquiries coming from owners who wish to acquire

modern tonnage at good prices. This shows the faith that shipping people

have in the market’s future recovery as well as their appe�te to take ad-

vantage of low asset values even during these adverse �mes, despite the fact

that in some occasions they may have to pay from their pockets in order to

operate a vessel. A�er all you can’t expect to buy an asset at a very low price

and look forward to have posi�ve cash flows from day one !

Chartering (Wet: So�er- / Dry: Firm+ )

The Dry Bulk market con�nues to improve thanks to an increased de-

mand in the panamax market which has managed to see a full on recov-

ery thanks to a much improved demand in both basins. The BDI closed

Tuesday (16/10/2012) at 981 points, up by 40 points compared to Mon-

day’s levels (15/10/2012) and an increase of 106 points compared to the

previous Tuesday’s levels (09/10/2012). The Tanker market was a bit

more op�mis�c this week as demand for crude oil surged. This however,

had the added nega�ve effect of increased bunker prices which mini-

mized the gains in earnings received. The BDTI Monday (15/10/2012),

was at 668, 26 points up and the BCTI at 621, an increase of 2 points

compared to the previous Monday’s levels (08/10/2012).

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

Ac�vity was slightly more firm this week with a number of enbloc deals

reported in both the tanker and dry bulk markets, while we have also

seen a number of deals which have been promoted by their banks in

order to “fix their porHolios. On the Tankers side, we had the sale of the

“Wildebeest” (39,999dwt-blt 09 S. Korea) which was picked up by Euro-

pean buyers for a price of $ 20.5m. While on the dry bulker side, we had

the sale of the “Nereid” (74,295dwt-blt 01 Japan) which was reported

sold for a price of $ 11.5m to Greek buyers.

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

On the newbuilding front, there was a tad more ac�vity reported this

week as we saw a number of owners showing keen interest for several

niche markets. Things are s�ll looking fairly difficult for most of the low-

er �er yards as most of the recently reported orders have been going to

major yards, especially in S. Korea. It seems as though interest for spe-

cialised sectors such as Gas carriers, PCTCs and Container vessels con�n-

ue to inspire interest for further investment. This sectors however will

likely remain out of reach for many shipyards who do not have a proven

track record on these vessel types. In terms of reported deals this week,

the most notable order was that placed by Switzerland's Atlanship at S.

Korea’s Hyundai Mipo for 2 stainless steel coated Fresh Juice carriers

(23,000dwt) for delivery between 2013 and 2014 at a reported price of

around $ 40.0m each.

Demoli)on (Wet: Firm+ / Dry: Firm+ )

With the Rupee s�ll holding strong and demand by ship breakers re-

maining firm, Indian and Pakistani demo buyers were able to push their

offered prices just a bit higher this week. There is s�ll a lot of uncertain-

ty due to the problems faced in the Bangladeshi market, while at the

same �me there was a slight weakening of the Indian Rupee towards

the end of the week, poin�ng to a possible drop in support for the cur-

rent firm demo prices. At the same �me Chinese demo buyers have

pushed there interest a li5le further this week offering slightly be5er

levels than what was seen a week prior. Prices improved this week, as

wet tonnages saw levels of 330-440$/ldt and dry units at about 315-415

$/ldt.

Weekly Market Report

Week 41|Tuesday 16th October 2012

© Intermodal Research 16/10/2012 2

2012 2011

WS

points$/day

WS

points$/day $/day $/day

265k AG-JAPAN 36 3,190 35 2,912 1% 22,045 18,217

280k AG-USG 25 -8,769 24 -8,522 2% 2,142 2,504

260k WAF-USG 45 20,624 43 17,888 6% 32,432 25,714

130k MED-MED 60 11,305 60 11,305 0% 23,143 25,125

130k WAF-USAC 58 5,125 58 5,707 0% 14,125 13,373

130k AG-CHINA 78 23,043 78 23,772 0% 22,964 14,815

80k AG-EAST 100 16,093 110 21,359 -9% 14,432 12,726

80k MED-MED 73 7,081 75 8,395 -3% 14,349 13,577

80k UKC-UKC 85 13,634 85 13,981 0% 18,666 18,604

70k CARIBS-USG 88 5,789 88 6,425 0% 12,018 8,240

75k AG-JAPAN 105 14,900 102 13,602 3% 8,377 10,467

55k AG-JAPAN 114 10,274 108 8,287 6% 8,341 7,768

37K UKC-USAC 125 7,336 130 8,729 -4% 8,975 11,022

30K MED-MED 170 24,645 160 21,804 6% 16,797 18,458

55K UKC-USG 133 20,295 130 19,908 2% 15,607 11,266

55K MED-USG 138 20,465 130 18,106 6% 13,808 9,676

50k CARIBS-USAC 110 8,804 118 11,659 -6% 13,267 10,700

Dir

tyA

fram

ax

Cle

anV

LCC

Sue

zmax

Spot Rates

Vessel Routes

Week 41 Week 40

±%

Oct-12 Sep-12 ±% 2012 2011 2010

300KT DH 62.0 62.3 -0.4% 64.2 77.6 87.2

150KT DH 43.0 44.0 -2.3% 46.0 54.4 62.6

105KT DH 28.0 29.8 -5.9% 32.1 39.1 44.7

70KT DH 24.5 26.0 -5.8% 27.2 35.2 38.8

45KT DH 22.5 24.0 -6.3% 25.1 28.4 26.5

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

Panamax

Chartering

With demand increasing this week, VLCCs were able to witness a rise in

freight rates across the board helping push earning to slightly improved

levels. The increased bunker have eaten slightly away at some of the gains

obtained by owners, however things are looking to be slightly be5er now

and as the winter season approaches we will hopefully start to see a strong-

er demand emerge. Till that point owners will have to strut along at current

levels.

Things also picked up considerably in the WAF market for Suezmaxes help-

ing create some slight op�mism. This however was not translated into high-

er earnings or increase freight levels, as rates remained on par with their

previous week’s levels. The Black Sea/Med region con�nues to suffer with

limited ac�vity and increased availability of open tonnage. The improved

sen�ment filtering through from the WAF market was likely the cataly�c

factor in why freight rates did not drop further but will not be able to hold

for long as downward pressure con�nues to mount on owners to accept

lower freight levels.

The Aframax market con�nued to suffer as the week was overall quiet in

most regions. The Black Sea/Med region was plagued by an oversupply of

tonnage while the North Sea/Bal�c region was unable to clear the excess

vessels that had accumulated over the past couple of weeks.

Sale & Purchase

In the MR segment this week, we had the sale of the

“Wildebeest” (39,999dwt-blt 09 S. Korea) which was picked up by European

buyers for a price of $ 20.5m.

Also noteworthy was the reported sale of the Japanese built “Freja

Ocean” (47,045dwt-blt 02 Japan) which went to U.A.E. based buyers for a

price of $ 12.9m.

Wet Market

Indicative Period Charters

- 3/5 mos - 'Mega Philomena' 2010 73,000dwt

- - $ 14,500/day - ST Ship

- 12+12mos - 'FPMC 20' 2009 51,000dwt

- - $ 11,750/day - Vitol

20

40

60

80

100

120

140

160

WS p

oin

ts

DIRTY - WS RATES TD3 TD5 TD8 TD4

Week 41 Week 40 ±% Diff 2012 2011

300k 1yr TC 22,500 22,500 0.0% 0 22,567 25,197

300k 3yr TC 27,000 27,000 0.0% 0 27,328 31,681

150k 1yr TC 17,500 17,500 0.0% 0 17,701 19,837

150k 3yr TC 22,000 22,000 0.0% 0 21,066 23,830

105k 1yr TC 14,000 14,000 0.0% 0 13,829 15,707

105k 3yr TC 16,250 16,250 0.0% 0 16,115 18,335

70k 1yr TC 13,000 13,000 0.0% 0 13,012 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,279 16,263

45k 1yr TC 13,000 13,000 0.0% 0 13,884 13,918

45k 3yr TC 14,500 14,500 0.0% 0 14,682 14,738

36k 1yr TC 12,750 12,750 0.0% 0 12,561 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,359 13,412

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

6080

100120140160180200220240260

WS p

oin

ts

CLEAN - WS RATES TC2 TC4 TC6 TC1

© Intermodal Research 16/10/2012 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$/d

ay

Average T/C Rates

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

Index $/day Index $/day Index Index

BDI 926 875 5.8% 51 908 1,549

BCI 1,914 $11,074 1,932 $11,237 -0.9% -18 1,444 2,237

BPI 871 $6,937 598 $4,769 45.7% 273 992 1,749

BSI 776 $8,110 795 $8,315 -2.4% -19 954 1,377

BHSI 444 $6,536 444 $6,535 0.0% 0 539 718

05/10/12

Baltic IndicesWeek 41

12/10/12

Week 40

±%2012 2011Point

Diff

170K 6mnt TC 15,500 15,500 0% 0 13,124 18,474

170K 1yr TC 14,250 14,250 0% 0 14,124 17,138

170K 3yr TC 13,500 13,500 0% 0 15,645 17,599

70K 6mnt TC 9,625 8,375 15% 1,250 11,535 17,238

70K 1yr TC 8,750 8,375 4% 375 10,322 14,863

70K 3yr TC 10,425 10,375 0% 50 11,335 14,500

52K 6mnt TC 10,000 9,750 3% 250 11,676 15,587

52K 1yr TC 9,500 9,750 -3% -250 10,712 14,308

52K 3yr TC 10,500 10,750 -2% -250 11,523 14,046

45k 6mnt TC 8,250 8,250 0% 0 9,804 13,416

45k 1yr TC 8,250 8,500 -3% -250 9,170 12,450

45k 3yr TC 9,000 9,250 -3% -250 9,871 12,403

30K 6mnt TC 8,250 8,500 -3% -250 8,508 11,712

30K 1yr TC 8,500 8,500 0% 0 8,617 11,787

30K 3yr TC 9,250 9,250 0% 0 9,645 12,044

Ha

nd

yma

xH

an

dy

size

Period

2011

Pa

nam

axSu

pra

ma

x

Week

41

Week

40

Cap

esi

ze

2012$/day ±% Diff

Chartering

Ac�vity in the Capesize market con�nued to hold for yet another week,

however we seem to have noted a slight correc�on as freight levels had

seemingly moved quicker than the current market could support. The bull-

ish sen�ment may have passed, however there is s�ll good support from

the demand side of things and although this maybe temporary it seems to

be holding for a li5le while longer.

The Panamax market was once again the one to lead the way in the recov-

ery managing to make an astonishing 45.7% increase on a week-on-week

basis. Things are now looking to move in a posi�ve direc�on with tonnage

lists considerably �ghter all around and demand s�ll holding at rela�vely

good levels. There is s�ll a long way to go before rates manage to reach

more viable levels, however if things con�nue at the current rate this could

be achieved by the start of next week.

Despite things looking more promising this week for Supras and Handies in

terms of ac�vity levels, especially in the Pacific basin, the market con�nued

to trend downwards albeit only by a small frac�on. Posi�on lists are now

looking to slowly improve and if demand is able to hold at the levels seen

over the last couple of days, it shouldn’t be long before the market makes a

turn for the be5er.

Sale & Purchase

In the Panamax sector we had the sale of the “Nereid” (74,295dwt-blt 01

Japan) which was reported sold for a price of $ 11.5m to Greek buyers.

In the Handymax sector there was the sale of the “Voshod 2” (47,639dwt-

blt 95 Japan) which was reported sold for a price of about $ 7.2m.

Oct-12 Sep-12 ±% 2012 2011 2010

170k 32.5 32.4 0.4% 35.1 43.5 57.4

75K 19.5 20.5 -4.9% 23.7 31.3 39.0

52k 19.0 19.6 -3.2% 21.8 25.6 30.2

29K 16.0 16.0 0.0% 18.6 23.5 26.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 10/14 mos - 'Mineral Haiku' 2010 180,000dwt

- dely Far East prompt in d/c - $ 12,000/day - Classic Maritime

- 4/7 mos - 'Hephaestus' 2001 74,306dwt

- dely Hong Kong spot - $ 7,000/day - Bunge

Dry Market

© Intermodal Research 16/10/2012 4

Secondhand Sales

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

AFRA GENMAR AJAX 96,183 1996SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W DH $ 7.5m

Turkish (Sochi

Holdings)

MR FREJA OCEAN 47,045 2002 ONOMICHI, Japan B&W Nov-13 DH $ 12.9m U.A.E. based

MR WILDEBEEST 39,999 2009SLS SHIPBUILDING

CO LT, S. KoreaMAN-B&W DH $ 20.5m European

MR NORDAMERIKA 35,775 2000

DAEDONG

SHIPBUILDING -, S.

Korea

B&W Aug-15 DH $ 12.5m undisclosed

PROD/

CHEMTARNSJO 10,776 1993

KVAERNER KLEVEN

LEIRVI, NorwayMaK Jun-13 DH undisclosed Greek

PROD/

CHEMDAIKO MARU 999 1994

MUKAISHIMA ZOKI,

JapanYanmar Mar-13 SH $ 0.9m S. Korean JPN Yen 70m

Tankers

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

STX FRONTIER 86,778 2010

HANJIN HI &

CONST - BU, S.

Korea

Warts i l a $ 97.0m (Hoegh LNG)purchase option

50% stake

GAS LEO 49,996 1990MITSUBISHI

NAGASAKI, JapanMitsubishi $ 10.6m (Naftomar)

Gas/LPG/LNG

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

APACHE MAIDEN 23,325 1987KURUSHIMA

ONISHI, JapanMitsubishi Oct-14

3 X 25.9t

CRANES,1

X 25t

CRANES,1

$ 2.5m Chinese bss 'as i s ' Xiamen

MPP/General Cargo

© Intermodal Research 16/10/2012 5

Secondhand Sales

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

PMAXEMERALD

STREAM76,858 2003

OSHIMA

SHIPBUILDING,

Japan

MAN-B&W Apr-13 $ 14.2m Greek

PMAX NEREID 74,295 2001

OSHIMA

SHIPBUILDING,

Japan

B&W $ 11.5m Greek

SMAX VEGA PIONEER 52,466 2002SANOYAS HISHINO

MIZ'MA, JapanB&W Jun-17

4 X 30t

CRANES$ 14.3m

German

(Oldendorff)

HMAX VOSHOD 2 47,639 1995

OSHIMA

SHIPBUILDING,

Japan

B&W Jan-154 X 25t

CRANES$ 7.2m undisclosed

HANDY PAN DYNAMIC 26,717 1985KURUSHIMA

ONISHI, JapanB&W

4 X 30t

CRANES$ 2.7m Syrians

incl bunkers 350tns

IFO + 50tns MGO

Bulk Carriers

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

FEEDER BALTIC TRADER 547 1995

PETERS PETERS

WEWELSFL,

Germany

MAN Sep-15 $ 2.5m Indonesian

FEEDER HANSEDUO 541 1984

SIETAS

SCHIFFSWERFT

KG, Germany

Deutz2 X 35t

CRANES$ 1.6m undisclosed

Containers

© Intermodal Research 16/10/2012 6

Week

41

Week

40±% 2012 2011 2010

Bangladesh 395 400 -1.3% 446 523 422

India 440 435 1.1% 451 511 427

Pakistan 435 425 2.4% 449 504 425

China 330 325 1.5% 387 451 383

Bangladesh 375 375 0.0% 422 498 375

India 415 415 0.0% 425 484 394

Pakistan 405 400 1.3% 423 477 388

China 315 305 3.3% 368 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

With the Rupee s�ll holding strong and demand by ship breakers remaining

firm, Indian and Pakistani demo buyers were able to push their offered prices

just a bit higher this week. There is s�ll a lot of uncertainty due to the prob-

lems faced in the Bangladeshi market, while at the same �me there was a

slight weakening of the Indian Rupee towards the end of the week, poin�ng

to a possible drop in support for the current firm demo prices. At the same

�me Chinese demo buyers have pushed there interest a li5le further this

week offering slightly be5er levels than what was seen a week prior. Prices

improved this week, as wet tonnages saw levels of 330-440$/ldt and dry

units at about 315-415$/ldt.

Most notable this week was the price paid by Indian breakers for the tanker

‘Bow Lion’ (39,423dwt-9,689ldt-blt 87) which reportedly received a price of

around $ 468/Ldt including some stainless steel content on board.

Demoli)on Market

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

SEA GLORY 269,605 41,402 1993 KAWASAKI, Japan TANKER $ 440/Ldt Indian

WELMOUNTAIN 143,500 18,926 1989 KAWASAKI, Japan BULKER $ 415/Ldt Pakistani

QINFA 6 69,841 12,553 1984 IMABARI , Japan BULKER undisclosed Indian

FRONTIER CARRIER 65,224 11,912 1983 HYUNDAI, S. Korea BULKER $ 412/Ldt Indian

GREAT ONE 64,911 11,480 1981 MITSUBISHI, Japan BULKER undisclosed Indian

MP PANAMAX 3 63,883 12,709 1983 OSHIMA, Japan BULKER $ 428/Ldt Indianbss 'as is' Sri Lanka incl enough

bunkers ROB for last voyage

BOW LION 39,423 9,689 1987KOREA SHBLDG, S.

KoreaTANKER $ 468/Ldt Indian incl some StSt

DUBAI 35,615 12,899 1982 HYUNDAI, S. Korea CONT $ 435/Ldt Indianbss 'as is' Kor Fakkan incl enough

bunkers ROB for last voyage

FRIGIA 35,246 8,122 1978 NKK CORP, Japan BULKER $ 424/Ldt Indian

LANGERON 28,086 6,396 1984 HITACHI, Japan BULKER $ 435/Ldt Indian

GULMAR 27,048 6,890 1981 NIPPONKAI., Japan BULKER $ 430/Ldt Indian

ATLANTIC EXPRESS 24,393 6,508 1985ANKERLOKKEN,

NorwayBULKER $ 385/Ldt Bangladeshi

ELBE TRADER 22,525 7,170 1994 MTW, Germany CONT $ 425/Ldt Indian bss 'as is' Colombo

CAPE PRESTON 22,351 9,400 1983 MITSUBISHI, Japan GC $ 432/Ldt Indianbss 'as is' Fujairah incl enough

bunkers ROB for last voyage

Demolition Sales

© Intermodal Research 16/10/2012 7

Week

41

Week

40±% 2012 2011 2010

Capesize 170k 45.5 45.5 0.0% 46 53 58

Panamax 75k 25.3 25.5 -1.0% 27 33 35

Supramax 57k 24.3 24.5 -1.0% 25 30 31

Handysize 30k 20.6 20.8 -0.6% 22 25 27

VLCC 300k 94.5 94.5 0.0% 94 102 103

Suezmax 150k 57.0 57.0 0.0% 58 64 66

Aframax 110k 48.5 48.5 0.0% 49 54 55

LR1 70k 42.0 42.0 0.0% 42 45 46

MR 47k 33.5 33.5 0.0% 33 36 36

LPG M3 80k 70.0 70.0 0.0% 70 73 72

LPG M3 52k 61.5 61.5 0.0% 61 64 65

LPG M3 23k 41.5 41.5 0.0% 44 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

On the newbuilding front, there was a tad more ac�vity reported this week

as we saw a number of owners showing keen interest for several niche mar-

kets. Things are s�ll looking fairly difficult for most of the lower �er yards as

most of the recently reported orders have been going to major yards, espe-

cially in S. Korea. It seems as though interest for specialised sectors such as

Gas carriers, PCTCs and Container vessels con�nue to inspire interest for

further investment. This sectors however will likely remain out of reach for

many shipyards who do not have a proven track record on these vessel

types.

The most noteworthy order reported this week is that placed by Switzer-

land's Atlanship at S. Korea’s Hyundai Mipo for 2 stainless steel coated Fresh

Juice carriers (23,000dwt) for delivery between 2013 and 2014 at a reported

price of around $ 40.0m each.

Newbuilding Market

20

40

60

80

100

120

mil

lion $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

10

20

30

40

50

60

70m

illion $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2 Tanker 23,000 dwtHyundai Mipo, S.

Korea2013-2014 Swiss (Atlanship) $ 40.0m

StSt Fruite Juice

carriers

2+4 Bulker 82,000 dwt Jinl ing SY, China 09-11/2014 German (Oldenforff) undisclosed

3+3 Bulker 39,000 dwt Jinl ing SY, China 08-12/2014 German (Oldenforff) undisclosedDelta Marine

design

4+4 Container 2,300 teuZhejiang Yangfan,

China2014-2015 German (Schulte Group) $ 26.5m

1+1 Gas 9,000 cbm STX, S. Korea 08/2014Swiss based (Geogas

Maritime)$ 27.0m LPG

1 MPP 5,000 dwtShandong Huanghai,

China07/2014

French Ply. based

(Polynesienne Maritime)undisclosed with pax capacity

2 RoRo 7,000 ceu Imabari, Japan 2014-2015 Japanese (NYK) undisclosed PCTC

2 RoRo 7,000 ceu Shin Kurushima, Japan 2014-2015 Japanese (NYK) undisclosed PCTC

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 wri5en authoriza�on of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valua�ons Department | Mr George Lazaridis

E-mail: research@intermodal.gr

On behalf of Intermodal Sale & Purchase, Newbuilding and Chartering Departments

E-mail: snp@intermodal.gr, tankers@intermodal.gr, dry@intermodal.gr

1,700

1,720

1,740

1,760

1,780

1,800

80

90

100

110

120

130

gold oil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

12-Oct-12 5-Oct-12W-O-W

Change %

Rotterdam 1,005.0 1,012.0 -0.7%

Houston 1,055.0 1,030.0 2.4%

Singapore 950.0 941.0 1.0%

Rotterdam 628.0 617.0 1.8%

Houston 640.5 625.0 2.5%

Singapore 651.0 635.5 2.4%

Rotterdam 649.0 640.0 1.4%

Houston 687.5 695.0 -1.1%

Singapore 667.5 653.0 2.2%

Bunker Prices

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World Economy News

Industrial produc�on in the U.S. rose more than forecast in September, par-

�ally reversing the prior month’s slump, indica�ng manufacturers are regain-

ing their foo�ng. Output at factories, mines and u�li�es rose 0.4 percent

a�er a 1.4 percent decline in August that was the biggest since March 2009,

the Federal Reserve reported today in Washington. The biggest two-month

gain in retail sales in almost two years may mean demand from American

consumers is making up for slowing sales overseas and declining business

investment as the so-called fiscal cliff approaches. (Bloomberg)

Energy & Commodi)es

The biggest slump in Indian iron-ore exports on record is driving rates for

ships hauling the cargoes to the lowest since at least 2005, extending losses

for owners. Supramaxes, each hauling enough ore to make about 33,000

metric tons of steel, will earn an average of $8,500 a day in 2013, 15 percent

less than this year, based on forward freight agreements traded by brokers

and used to bet on shipping costs. (Bloomberg)

Finance News

Three-quarters of this year have now passed and it is

clear that all major sectors of the shipping industry

con�nue to lose money.

Perhaps more worrying are a number of develop-

ments that will prolong these depressed markets

further.

The principal problem that the industry faces is an

enormous shortage of equity and the burden of the

huge debts it incurred in ordering and taking delivery

of large numbers of expensive ships without any spe-

cific employment.

The cargo capacity increase that took place in the

second half of the last decade would not have been

absorbed even if China’s economy had grown at 10%.

Furthermore, the fact that charterers retreated to the

spot markets for several years was the strongest indi-

cator that the high rates would not survive.

Recent developments have shown charterers and

major owners combining on new construc�on and

long-term contract deals.

Reduced newbuilding prices and very cheap debt

supported by long-term charters combine to make

these deals a5rac�ve. (Lloyds List)

CompanyStock

ExchangeCurr. 12-Oct-12 05-Oct-12

W-O-W

Change %Max 41wk Min 41wk

AEGEAN MARINE PETROL NTWK NYSE USD 6.13 6.23 -1.6% 6.31 6.13

BALTIC TRADING NYSE USD 3.24 3.12 3.8% 3.24 3.07

BOX SHIPS INC NYSE USD 5.16 5.35 -3.6% 5.40 5.16

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 8.10 8.20 -1.2% 8.18 8.09

COSTAMARE INC NYSE USD 15.21 15.60 -2.5% 15.48 15.21

DANAOS CORPORATION NYSE USD 2.92 3.03 -3.6% 3.05 2.91

DIANA SHIPPING NYSE USD 6.67 6.75 -1.2% 6.72 6.53

DRYSHIPS INC NASDAQ USD 2.27 2.29 -0.9% 2.32 2.25

EAGLE BULK SHIPPING NASDAQ USD 3.12 3.47 -10.1% 3.28 3.07

EUROSEAS LTD. NASDAQ USD 1.17 1.15 1.7% 1.20 1.13

EXCEL MARITIME CARRIERS NYSE USD 0.49 0.62 -21.0% 0.58 0.49

FREESEAS INC NASDAQ USD 0.21 0.21 0.0% 0.24 0.21

GENCO SHIPPING NYSE USD 3.68 3.88 -5.2% 3.68 3.47

GLOBUS MARITIME LIMITED NASDAQ USD 2.21 2.19 0.9% 2.50 2.21

GOLDENPORT HOLDINGS INC LONDON GBX 43.32 44.00 -1.5% 43.40 42.00

HELLENIC CARRIERS LIMITED LONDON GBX 20.95 19.70 6.3% 20.95 19.70

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.62 2.73 -4.0% 2.74 2.62

NAVIOS MARITIME HOLDINGS NYSE USD 3.55 3.67 -3.3% 3.66 3.50

NAVIOS MARITIME PARTNERS LP NYSE USD 14.72 15.14 -2.8% 15.03 14.48

NEWLEAD HOLDINGS LTD NASDAQ USD 0.48 0.55 -12.7% 0.52 0.48

PARAGON SHIPPING INC. NYSE USD 0.43 0.45 -4.4% 0.46 0.42

SAFE BULKERS INC NYSE USD 5.75 5.83 -1.4% 5.83 5.75

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.65 1.81 -8.8% 1.70 1.61

STAR BULK CARRIERS CORP NASDAQ USD 8.77 9.45 -7.2% 9.75 8.77

STEALTHGAS INC NASDAQ USD 6.76 6.52 3.7% 6.76 6.55

TSAKOS ENERGY NAVIGATION NYSE USD 4.56 4.98 -8.4% 4.85 4.56

TOP SHIPS INC NASDAQ USD 1.11 1.14 -2.6% 1.12 1.11

Maritime Stock Data

Commodi)es & Financials

12-Oct-12 11-Oct-12 10-Oct-12 9-Oct-12 8-Oct-12W-O-W

Change %

10year US Bond 1.660 1.670 1.690 1.720 1.750 -4.0%

S&P 500 1,428.59 1,432.84 1,432.56 1,441.48 1,455.88 -2.2%

Nasdaq 3,044.11 3,049.41 3,051.78 3,065.02 3,112.35 -2.9%

Dow Jones 13,328.85 13,326.39 13,344.97 13,473.53 13,583.65 -2.1%

FTSE 100 5,793.32 5,829.75 5,776.71 5,810.25 5,841.74 -1.3%

FTSE All-Share UK 3,025.62 3,043.58 3,017.76 3,035.52 3,051.62 -1.4%

CAC40 3,389.08 3,413.72 3,365.87 3,382.78 3,406.53 -2.0%

Xetra Dax 7,232.49 7,281.70 7,205.23 7,234.53 7,291.21 -2.2%

Nikkei 8,534.12 8,546.78 8,596.23 8,769.59 - -3.7%

Hang Seng 21,136.43 20,999.05 20,919.60 20,937.28 20,824.56 0.6%

Dow Jones 207.22 208.13 208.16 210.39 208.79 -1.4%

$ / € 1.30 1.29 1.29 1.29 1.30 -0.4%

$ / ₤ 1.61 1.60 1.60 1.60 1.60 -0.7%

₤ / € 0.81 0.81 0.80 0.81 0.81 0.3%

¥ / $ 78.40 78.35 78.25 78.28 78.29 -0.2%

$ / Au$ 1.02 1.03 1.02 1.02 1.02 0.0%

$ / NoK 0.18 0.17 0.17 0.17 0.18 -0.5%

$ / SFr 0.93 0.94 0.94 0.94 0.93 0.3%

Yuan / $ 6.28 6.29 6.30 6.30 6.29 -0.3%

Won / $ 1,111.95 1,113.16 1,113.95 1,111.73 1,112.75 0.2%

$ INDEX 79.67 79.60 79.60 79.60 79.40 0.5%

Market Data

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