Braemar Seascope Container

All details given in good faith but without guarantee Deep Sea Tankers +44 (0)20 7535 2626 Dry Cargo Chartering +44 (0)20 7535 2666 Container Chartering +44 (0)20 7535 2867

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Braemar Seascope Thursday, 01 August 2013

Market Indicator Wet* 31-Jul-13 Jul Avg Avg YTD 2012 Avg

TCE ( US $ / Da y ) TCE ( US $ / Da y ) TCE ( US $ / Da y ) TCE ( US $ / Da y )

260,000 NHC AG/EAST TD3 -2,500 10,000 -500 11,000

130,000 NHC WAFR/USAC TD5 10,500 8,000 5,000 12,000

80,000 NHC NSEA/CONT TD7 2,500 4,000 6,000 7,500

55,000 CLN AG/JAPAN TC5 500 1,500 7,500 8,500

37,000 CLN CONT/USAC TC2 13,500 10,000 13,500 10,000

38,000 CLN CARIB/USAC TC3 15,000 16,000 11,000 9,500

* All rates based on benchmark Baltic Exchange speed and consumption f igures

Dry 31-Jul-13 Jul Avg Avg YTD 2012 Avg

BDI 1,062 1,123 886 920

BCI 1,881 1,986 1,482 1,573

BPI 1,057 1,084 954 963

BSI 912 914 845 904

Container 29-Jul-13 Jul Avg Avg YTD 2012 Avg

B O X i 58.31 58.51 56.03 55.76

Financial 31-Jul-13 Jul Avg Avg YTD 2012 Avg

BRENT CRUDE US$/bbl 108.70 107.71 107.88 111.81

IFO 380 ROTT US$/tonne 599.50 599.11 601.17 640.97

YEN/US$ 98.37 99.75 96.02 79.70

WON/US$ 1,124 1,127 1,108 1,123

US$/EURO 1.33 1.31 1.31 1.34

Braemar Seascope Weekly Chartering Report 2

01/08/2013

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VLCC Charterers regained the upper hand this week and their tactics of slowly drip feeding the market with cargoes from the AG market paid dividends as owners’ confidence was slowly eroded. Despite the larger volume of the first decade, a total of 40 fixtures recorded, the slow and steady nature of fixing during the second decade has meant that the market has actually slipped. This has been summed up by our Korean friends S-Oil quoting a cargo off 13-15/August, nine vessels offered with some offering only three Worldscale points above the prevailing market rate. This was a red rag to a bull and enabled charterers to pressurise other owners into offering at similar levels to complete. A very smart trade enabled them to cover at 265kt x ws33.5 and they quickly managed to fix two other ships at the same rate off the same position. 3-0 to the charterers on that fixture, but with the downward spiral being led by oil company controlled tonnage, one must wonder if this was an inside job?! Nonetheless, a very smart piece of chartering and while the owners who fixed were left scratching their heads, the market quickly returned and stabilised at 270kt x ws34.0 for AG/Korea. This softening has heaped pressure on AG/West rates and while dates for western bound cargoes have been fixing off the 3rd decade, rates have again been eroded a point here or there with AG/West paying about 280kt x ws21.5 @ 11knots via Cape, and the same rate for 12.5knots via Suez. Once again, West African charterers have been encouraged by the adept chartering of their friends from the AG. Downward pressure from this area has meant that charterers have managed to move rates down from 260kt x ws38.5 to ws36.5 over a similar period for West Africa to eastern destinations. West Africa/West has not seen any activity and only can be assumed to be about ws40.0 for W Africa/USG. VLCCs discharging on the Continent have found no fuel oil cargoes from the area as the arbitrage has remained closed for the last few weeks and are having to ballast to West Africa, further softening the freight market in the area. From the Indian charterers this week, it was HPCL and IOC who covered their end August requirements off 28-29 and 25-26 dates respectively. HPCL received up to 12 offers for their cargo and fixed an Atlantic ship at US$3.4m, which was reflective of the weakening sentiment of the market at the beginning of this week. IOC were quickly on subs with an ex-Durban ship at US$3.125m, which was in line with HPCL's fixture as IOC's cargo was discharging at WC India, which normally attracts a discount of US$250,000 to EC India rates. Charterers should get busier next week, with their first decade September stems. We are assessing W Africa/WC India at US$3.1m and W Africa/EC India at US$3.35m. The 30 day availability index shows 70 VLCCs arriving at Fujairah, of which six are over 15 years old, compared to 65 last week. For the month of August, we have seen a total of 74 fixtures reported. But despite the large volume of fixtures last month (i.e. 131 for the 2nd month in a row), there seems to be no erosion of the tonnage list. In fact, 70 open vessels over the next 30 days is one of the largest totals we have counted all year. The bunker price today is US$596/tonne, up US$5.5/tonne from last week. The freight rate for 280,000mt AG/USG is ws22.0, same as last week. Owners' earnings are: Assuming one way (excludes any ballast) at 13knots laden, this equates to US$21,500/day (US$21,900/day last week) Round Trip Cape Laden (13knots)/Suez ballast (11knots) US$-3,850/day (US$-3,500/day last week) The freight rate for 270,000mt Ras Tanura/Ulsan is ws34.0, down ws2.0 points from last week, so owners' earnings are: Round Trip at 11knots ballast and 13knots laden: US$9,800/day (US$13,100/day last week)

Route Size Load Discharge Today’s Assessment Last Week’s Average

TD1 280,000 Ras Tanura LOOP ws22.5 ws22.0

TD2 265,000 Ras Tanura Singapore ws35.0 ws36.0

TD3 265,000 Ras Tanura Chiba ws34.0 ws35.0

TD4 260,000 Bonny LOOP ws40.0 ws39.5

TD15 260,000 West Africa China ws36.5 ws37.0

China27%

USA19%

Korea-Japan18%

India15%

Spore/Indo12%

S.Africa3%

Med/R.Sea3%

N.W.Europe3%

VLCC AG Weekly Spot Fixtures by VolumeIntended Discharge (25 - 31 July)

Long East70%

Short East13%

West17%

VLCC AG Monthly Spot Fixtures by VolumeFinal Destination (July 2013)

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01/08/2013

As the week opened in West Africa, rates for UKC-Med looked firm at ws65.0. One charterer was struggling to fix, boosting owners’ sentiment. But there were ships there to be picked off at this market level, with ws66.25 duly fixed to Brazil. Whilst ws63.75 was fixed for UKC, it was alongside a Med rate of ws66.25 on a quoted cargo which was a good indication of owners' stance. Lower rates of ws60.0 were achieved for the USG throughout the week, whilst cargoes off prompt dates found themselves short of tonnage and paying a premium on the market at ws67.5. By the end of the week, this was still occurring on those charterers caught out by the position list, but ws63.75 was fixed off mid-month dates to suggest the market remains around the ws65.0 mark. Looking ahead, any remaining 2nd decade stems will likely find themselves paying up. The position list softens for the 3rd decade and we could see the market come off a little if the supply of cargoes off early dates dwindles. However, if the current level of activity continues, the strength should be sustained. We saw a ws75.0 cross-Med fixture early on this week, but a good indicator of positive sentiment was a healthy ws53.5 for the USG slightly later on. Ws67.5 for the UKC and ws75.0 for a short Med voyage were fixed subsequently, but with the adjacent Black Sea market experiencing worsening fortunes, it will be interesting to see whether these levels are sustained. Speaking of which, the Black Sea market ended last week with a flourish as 140kt x ws75.0 was fixed for UKC-Med. But as stem dates moved deeper into the month, these were steadily eroded by the lack of competitive cargoes in the Med and UKC markets. Rates dropped through ws67.5, ws62.5 and ws60.0 and in a matter of 72 hours we were looking at ws58.75, almost 20 points off the market at the beginning of the week. With only a handful of stems left to fix, the market could well remain sub-ws60.0 through the month. However, a strengthening West Africa market may help the Med/Black Sea market along. Meanwhile, the North Sea market was relatively quiet; some trans-Atlantic fixtures at ws52.5 for USG and ws54.5 for USAC were done before finally a shortish 135kt x ws75.0 for Baltic/Spain was achieved. The AG was looking much rejuvenated last week, and continued in the same vein. Despite westbound rates dropping off slightly, with 130kt x ws50.0 fixed to Italy, eastbound levels held firm. In fact, they improved somewhat; a prompt 131kt cargo to Chennai achieving ws103.0 and pushing rates up for cargoes off natural dates. We saw shortly thereafter more realistic levels of 131kt x ws89.0 fixed to Chennai followed by a ws85.0 for the West Coast and a ws78.0 for the East Coast, so rates did drop off steadily. However, come the end of the week, we have seen 93kt x ws120.0 fixed twice for Mumbai, an improvement of 3-4 points on last week's levels. These were both fixed off the same dates by the same charterer, so the VLCC restrictions at discharge clearly had a role to play in these rates. Additionally, a ws52.5 for Brazil was fixed late on as well as ws60.0 for USWC, largely in line with expectations. There remain a couple of cargoes in the market but it would not be surprising if what has been a relatively cheap market in recent months is allowed to cool off a little over the next week by charterers.

Suezmax

NW Europe35%

USA35%

India East15%

S.Africa5%

S.America10%

Suezmax WAFR Weekly Spot Fixtures by VolumeIntended Discharge (25 - 31 July)


TD5 130,000 Bonny Philadelphia ws67.5 ws65.0

TD6 135,000 Novorossiysk Augusta ws60.0 ws66.0

135,000 Mediterranean UK Cont ws67.5 ws67.5

135,000 North Sea US Gulf ws52.5 ws52.5

135,000 Ras Tanura South East Asia ws65.0 ws65.0

AG16%

W Africa36%

Med/Red Sea14%

NW Europe3%

Black Sea15%

Carib/EC Mex9%

S America2%

USA3%

Korea-Japan2%

Suezmax Weekly Spot Fixtures by VolumeLoad Area (25 - 31 July)


01/08/2013

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Aframax

Since this time last week, the North Sea and Baltic Aframax markets have seen a softening in rates, mainly due to the maintenance period in Primorsk. Rates slipped from 100kt x ws65.0 Baltic/UKC to 100kt x ws60.0 at the time of writing, with charterers pushing for ws57.5. It has been small pickings for cross-North Sea cargoes this week. The ones which have been covered have fallen into line with TD17 rates, to 80kt x ws80.0. Rates look flat currently, and we expect it will be another quiet week next week, putting further downward pressure on rates. On the up side for owners, with an expected twenty or so cargoes in ten days in the third decade in August, in the addition to the usual cross-North Sea stems, we could see rates firm upwards in this period. Further down in the Mediterranean, rates have remained fairly flat. However, with the feeling that there could be upward movement after an influx of cargoes early on, and tonnage being taken out, there was sufficient sentiment in the market to push rates up ws2.5 points to 80kt x ws85.0 from ws82.5. With there still being uncertainty in Libya over strikes in Es Sider, this could prove costly to owners with Libya being one of the main exporters of crude in the Med, which will in turn leave a higher volume of tonnage unemployed. Black Sea stems have been covered up until around mid-August, in line with cross-Med rates. So for the time being, a close eye will have to be kept on the market as to which direction rates move. In any case, we don't anticipate any significant changes in freight levels. Activity in the eastern hemisphere has seemingly quietened down after a lively few weeks with modest fixing volumes seen out of the region so far. There has not been much cause for excitement out of the AG, with light eastbound activity and TD8 rates are hovering around low ws90s level with a lack of fresh cargoes seen so far in the region. The Red Sea market has not seen much change from last week and activity is anticipated to pick up further in the region with more end-month tenders coming into the market and awaiting to be awarded. It has been a lacklustre week out of the Far East so far, with modest activity and Indo/up rates are softening slightly at ws80.0 as charterers are drip feeding the market. With adequate tonnage in the region, there is no reason for charterers to be in hurry to cover their requirements. Not much action has been seen out of North West Shelf, other than a replacement job being carried out at ws92.5 due to the lack of natural tonnage around the region.

NW Europe26%

Med/Red Sea51%

USA5%

Korea/Japan11%

SE Asia5%

India2%

Aframax (West of Suez) Weekly Spot FixturesIntended Discharge Area (25 - 31 July)

Baltic5%

Black Sea2%

UKC30%

Med45%

N Africa/E Med11%

USA7%

Aframax (West of Suez) Weekly Spot FixturesLoad Area (25 - 31 July)


TD7 80,000 Sullom Voe Wilhelmshaven ws80.0 ws82.5

TD8 80,000 Mina Al Ahmadi Singapore ws92.5 ws94.5

TD9 70,000 Puerto La Cruz Corpus Christi ws85.0 ws98.0

TD14 80,000 Seria Sydney ws80.0 ws81.5

TD17 100,000 Primorsk Wilhelmshaven ws60.0 ws62.0

TD19 80,000 Ceyhan Lavera ws85.0 ws83.0


01/08/2013

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TD3 - 260 - Ras Tanura - Chiba TCE

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TD5 - 130 - Bonny - Philadelphia TCE

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TD7 - 80 - Sullom Voe - Wilhelmshaven TCE

2011

2012

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35,000

45,000

55,000

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TD9 - 70 Puerto La Cruz- Corpus Christi TCE

2011

2012

2013


01/08/2013

Pro

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Time Charter

The summer period continues and market activity remains relatively stagnant. The only sector which saw a bit more action this week was the MR one. Three Vietnamese newbuild, eco MRs were reportedly chartered by a Middle East operator at US$16,000/day for two years with an option for another year at US$17,500/day. Deliveries are expected to commence in the middle of next year. Furthermore, an MR was taken in by a trading house at $14,000/day for one year. Finally, on the Suezmax segment a vessel was fixed by an Oil major for US$13,500/day.

1 yr 3 yr 5 yr

Handy 13,000 13,750 14,750

MR 14,250 15,000 15,750

LR1 15,000 15,500 17,000

Panamax 13,000 14,500 16,500

LR2 15,500 16,750 18,250

Aframax 11,000 13,500 16,750

Suezmax 15,000 18,000 22,500

VLCC 18,000 21,000 25,000

US$/day

Contact [email protected] London: Michael B. Friis / Mike Roberts / Vassilis Kolovos / Freddie Shepherd

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1 Year Time Charter RatesPast 5 Years

MR Aframax VLCC

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1 Year Time Charter RatesPast 12 Months

MR Aframax VLCC

Vessel Size Yard Built Period Rate (US$/day) Charterer

DHT Trader Suezmax HHI 2000 1 year $13,500 BP

Monoikos MR Hyundai Vinashin 2014 2 years $16,000 E-Ships

Ecomaxx MR Hyundai Vinashin 2015 2 years $16,000 E-Ships

Ecotank MR Hyundai Vinashin 2016 2 years $16,000 E-Ships

Sea Hermes MR Shin Kurushima 2004 1 year $14,000 Morgan Stanley


01/08/2013

The week started very slowly with rates showing little sign of changing from recent levels. ERG came into the market and took a reportedly very low rate as owners looked to cut and run from the malaise encompassing the Middle East region's markets. However, since then, whilst LR2 activity is still low and rates unmoved, especially for AG/Japan which has been fixed several times at ws69.0-70.0, it seems that the ERG deal will mark a definite low point, as owners refuse to chase down to such levels and are steadfastly trying to hold rates to something at least within striking distance of last week's levels. This may be helped by a literal explosion in LR1 activity, as we wake up Thursday morning to find 17 firm enquiries in the market, and at time of writing a reported ws85.0 on subs for 55kt AG/Japan. This is still pretty miserable in the grand scheme of things, but at least a small chink of light for owners who have for so long been mired in gloom. MR rates have drifted sideways this week in the AG. There really isn’t any more room to squeeze out of rates. TC12 remains at 35kt x ws90.0-92.5, giving owners negative returns basis round trip voyages. AG/UKC remains flat at US$950,000 1:1, the lowest levels seen for this voyage this year. New lows have been seen AG/E Africa, with 35kt x ws129.0 being fixed – a scarily low number given the risk to vessels venturing down there. All in all, a quiet week with a hefty tonnage list prompt on. LR1 activity has picked up and MR owners are hoping that this activity will filter down, but there are a lot of ships to clear off the list before any sort of revival can start to be made. We've said it before, but we will say it again; the market is at the absolute bottom.

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Clean Products - East

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TC1 - 75 - Ras Tanura - Yokohama TCE

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TC5 - 55 - Ras Tanura - Yokohama TCE

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TC1 75,000 Ras Tanura Yokohama ws70.0 ws70.0

TC5 55,000 Ras Tanura Yokohama ws85.0 ws80.5

TC4 30,000 Singapore Chiba ws105.0 ws105.0

TC12 35,000 WC India Japan ws93.5 ws94.5


01/08/2013

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Clean Products - West

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TC2 - 37 - Rotterdam - New York TCE

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TC3 - 38 - Aruba - New York TCE

2011

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TC2 37,000 Rotterdam New York ws167.5 ws148.5

TC3 38,000 Aruba New York ws147.5 ws151.0

TC6 30,000 Skikda Lavera ws155.0 ws160.0

MRs off the Continent have enjoyed the biggest increase in rates this week. With tonnage now extremely tight and activity on the up, rates off the Continent for trans-Atlantic and West Africa have soared by as much as 25 Worldscale points. Voyages have now firmed up at ws160.0-165.0 basis 37kt for TC2 and ws175.0 for voyages down to Wes Africa, a TCE of US$14,700/day for a TC2 round trip. Tonnage is continuing to look tight and we are seeing charterers fixing forward with dates out to the second decade of August. It is likely that MR rates off the Continent will continue to firm as we move into next week. FFAs for August began the week at ws132.0/ws136.0, but as physical tonnage tightened and fresh enquiry grew, paper was bought up aggressively to the current level of ws155.0/ws157.0. September at time of writing is still backwardated at ws140.0/ws141.0, offering better value if the market continues in its firmer vein. LR vessels have also been active this week off the Continent, with a number of UKC/W Africa voyages being fixed 60kt x ws100.0-102.5 for LR1s and 80kt x ws95.0 for the bigger LR2s. It seems with a number of LR1s getting fixed away, available vessels are thinning and we expect to see owners try to push the market back towards the ws107.5 we saw last week for UKC/W Africa. The Mediterranean has remained active, especially for LR2s, with Med/Japan voyages either being fixed the US$2.55m mark despite higher rates being reported to have failed. MRs in the Med have softened slightly as tonnage and enquiry appears balanced. Rates have dropped slightly to 30kt x ws155-157.5, with the view that by the weekend rates may be a further five points below this. Handies and Flexies have enjoyed a slight increase in activity after weeks of summer stability. Handies for cross-Continent are around ws142.5 basis 30kt, whilst Flexies have firmed to 22kt x ws182.5. Rates out of the US Gulf have shown the opposite to those on the Continent. With less activity, freight rates have corrected down over the week. USG/trans-Atlantic voyages have softened to around the ws100.0 level basis 38kt, with reports that a vessel is on subs for below ws100.0. However, this is for a straight USG/UKC voyage with a dirty cargo history.

01/08/2013

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A week of gradual decline has managed to reverse itself, thanks mainly to a resurgence in rates in the Pacific, both for EC Australia R/Vs and ex-West Australia/China, where levels reportedly exceeded US$8.50/tonne in some instances. As a result, the four route average climbed back to close to where it was a week ago. Today it stands at US$12,043/day, just US$93 less. The Atlantic Basin, however, was less active, and consequently unable to contribute to the improvement. The volume of enquiry ex-Brazil to the East was also less than has previously been seen. A positive feature was the report that a vessel of 177,000 Dwt was fixed for a period suggested to be 30/36 months at US$14,100/day.

Capesize

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The Baltic Capesize Index vs Atlantic & Pacific Earnings

Atlantic Pacific BCI

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01/08/2013

Conditions slowed further from the previous week and chances of steadier conditions returning to the market in the near term remain doubtful, with the start of the summer holiday period. Rates have eased across all areas in the Pacific, with North Pacific vessels continuing to struggle the most amid limited business opportunities. A few grain charterers have been in the market for September stems out of US Gulf, but only the most fuel-efficient candidates with warranted figures have been attracting attention on DOP basis. With the market likely to ease further in the coming weeks, charterers have retreated for the time being and the new benchmark for the remaining early ballasters heading towards the US Gulf remains to be seen. The number of enquiries from operators for period tonnage has been increasing in the past seven days, with charterers’ ideas registering around low-mid US$8,000/day levels for 11/13 months duration. The EC S America market has remained surprisingly resistant, with APS rates of US$15,000/day plus US$500,000 GBB still being talked in the market. However, this region is also expected to soften in the coming weeks with the South American grain season drawing to a close. There has been some period activity at decent rates. For LMEs - short period (4-7 months) at US$8,250/day levels and 1yr at US$9,250/day levels. M/V Artemis (76k Dwt/2006) rumoured to have gone for about US$9,350/day for 24 months to Rio Tinto. NoPac has been very quiet again. However, there has been some light activity seen for iron ore exports from WC Mexico.


Panamax

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The Baltic Panamax Index vs Atlantic & Pacific Earnings

Atlantic Pacific BPI

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01/08/2013


Rates for Supramax and Handysize sectors have remaining steady this week in South East Asia and the Far East. We are starting to see an increase in prompt tonnage. Therefore, it would seem that rates have peaked unless we see an improved level of cargo enquiry going into August. Tonnage continues to pile up in EC S America and West Africa this week, with a healthy number of positions for full August dates and a steady trickle of ballasters rounding the cape and heading towards the River Plate. In light of this, charterers are continuing to try and force the numbers down in their favour after a recent period of surprising vitality in the South Atlantic. Short period numbers for mid-sized Handymax tonnage (40/50k Dwt) are being quoted by owners around US$8,500-9,000/day for Atlantic redelivery and US$10,000-10,500/day for Pacific redelivery. Single trip rates for vessels open in West Africa for business heading east are being discussed in the very low teens. Charterers are pushing for, and getting, APS rates plus a corresponding ballast bonus. Ramadan has kept the Pacific markets – especially the Indonesian coal trades – relatively quiet. Tonnage opening SE Asia is getting US$9,000/day levels for a trip to China. For large modern Supramaxes, short period (4-7 months) is at US$9,000/day levels and 1yr at US$9,250/day levels.

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The Baltic Supramax Index vs Atlantic & Pacific Earnings

Atlantic Pacific BSI


01/08/2013

Indian iron ore recovery on the horizon Indian imports of iron ore are forecast to increase as much as eight times on last year. India was previously the third-largest importer of iron ore until two years ago, but domestic output has plummeted in the last couple years due to a mining ban in Goa and Karnataka. Indian production is due to fall an estimated 30% further in 2013 and become a net importer in this financial year. India's imports of iron ore are likely to reach 20-24m tonnes this year, up from around 3m tonnes last year. China buys up Aussie wheat In the last six weeks, China has bought 1.5m tonnes of Australian wheat, with an expected 3-4m tonnes of Australian new season wheat forecast for purchase this year. This is as a result of extensive crop damage from flooding and frost, which made at least 20m tonnes (16%), of the nation's wheat crop unfit for human consumption. In comparison to prior years, China has typically bought just 500,000 tonnes of Australia's still-growing winter crops of wheat, oats and barley, with total annual purchases typically less than 1m tonnes. Indonesia to buy more wheat Indonesia is forecast to become the world's biggest importer of wheat in the next five years, overtaking Egypt, with Australia looking to capitalise on this growth. Indonesia has been Australia's top wheat buyer for much of the past decade. Indonesia was one of the "New Asian 7" countries, the other six countries being China, India, Japan, South Korea, Malaysia and Thailand which, collectively, would account for half of global GDP by 2050. Rebar extends monthly gains as China manufacturing strengthens Steel reinforcement-bar futures extended a second monthly gain after China’s manufacturing unexpectedly strengthened in July, suggesting the Chinese slowdown may be stabilizing. The Purchasing Managers’ Index (an index reading above 50 demonstrates growth, whereas below 50 reflects contraction) at 50.3, higher than the forecasted average by 35 analysts, of 49.8 and up on June’s 50.1. While Chinese economic growth has moderated, steel demand in property and infrastructure is still pretty strong. Japan iron and steel exports up by 7.8% during first half 1H 2013 saw Japanese exports of iron and steel related products increased nearly 8% compared to the same period last year, up to 22.2m tonnes. Japan's iron and steel product exports to the US decreased by 13.6% to 1.1m tonnes, exports to China decreased by 2.3% to 3m tonnes, exports to the Middle East fell by 8.8% to 905,000 tonnes and iron and steel exports to ASEAN countries rose by 19.1% to 7.1m tonnes, all compared to the first half of 2012. Grain harvest in Western Australia seen reduced by dry weather Grain output in Western Australia, poised to be the country’s biggest wheat producer, may be curbed for a second year by dry weather. The state wheat crop tumbled 38% to 6.9m tonnes last year after dry weather curbed yields, positively though the output may rebound to 8.8m tonnes this year on increased area. However, the state’s south had an extraordinarily dry June and southwest regions had near-average rainfall in May. Maintenance at Australian BMA Hay Point coal terminal to last till August 12 Scheduled maintenance is underway at BHP Billiton-Mitsubishi Alliance's Hay Point terminal for coking coal exports in the Australian state of Queensland and is expected to last until mid-August. Hay Point terminal's coal shipment capacity is being expanded to 55m tonnes/year from 44m tonnes/year currently to accommodate output from BMA's new coking coal mines in Queensland's Bowen Basin.

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01/08/2013


Containers

Vessel (TEU/HMG) Index + / -770/440 TEU (GL) 17.5 k 3.28 ► 0.00

1,043/660 TEU (GL) 18 k Eco 4.74 ► 0.00

1,100/715 TEU (G) 19 k 7.67 ► 0.00

1,700/1,125 TEU (G) 19.5 k 8.75 ► 0.00

1,740/1,300 TEU (G) 20.5 k 8.75 ► 0.00

1,714/1,250 TEU (G) 19 k Bkk Max 5.34 ► 0.00

2,500/1,900 (G) 22 k 4.41 ► 0.00

2,800/2,000 TEU (GL) 22 k 3.60 ▲ 0.05

3,500/2,500 TEU (GL) 23 k 1.61 ► 0.00

4,250/2,800 TEU (GL) 24 k 2.92 ► 0.00

5,500/4,200 TEU (GL) 25 k 3.00 ► 0.00

6,500/4,800 (GL) 25 k 4.25 ► 0.00

Index Total 58.31 ▲ 0.05

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The Box Index B O X i

Activity has been a little more subdued this week with the summer beginning to bite into fixture turnover. That being said, the week has passed leaving our BOXi going in a fairly sideways direction. The Panamax market, which has been a relative hive of activity over the past few weeks, has had a very much slower pace this week with a number of requirements being temporised. Instead the main focus of enquiry has been 2,800TEU gearless tonnage, with a number of operators vying for the same designs and having to face fixing alternatives for short period to buy them time to find their ideal ship. Of note this week was a 3,500TEU finding a home for a respectable period of 12 to 18 months at US$7,500/day. The landscape of the 1,700-1,100TEU feeder marker remains unchanged but the recent tight supply of geared 1,700TEU units in SE Asia seems to be easing slightly with instead their gearless counterparts being quite thin on the ground in Asia. Chartering enquiry for newbuilding deliveries into early next year is beginning to gather momentum, although the bid-ask spreads are rather large as it stands. The owners of the next 1,700TEU 'Bangkokmax' delivery for example have their sights set on achieving a five figure number. Whether this can be achieved in the coming month will be an interesting barometer on how much of a premium new designs can hope to achieve now that owners have concrete performance information in hand from the first deliveries. For the time being, earnings are holding steady though a number of operators have made no secret of their plans to hand back ships to their owners to make way for their own newbuildings. In spite of this, with a little more in the way of encouraging news from the eurozone economies, perhaps the charter market can get through the summer without a backward step.

Documents

Braemar Seascope Container