Braemar Seascope Report 20111013

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, 13 October 2011

Market Indicator Wet 12-Oct-11 Sep Avg Avg YTD 2010 Avg

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

260,000 NHC AG/EAST TD3 -6,500 -3,000 7,500 40,500

130,000 NHC WAFR/USAC TD5 28,000 6,500 11,000 24,000

80,000 NHC UK/CONT TD7 12,500 5,000 12,000 19,000

55,000 CLN AG/JAPAN TC5 2,500 8,000 6,000 9,500

37,000 CLN CONT/USAC TC2 7,500 7,000 11,500 12,000

38,000 CLN CARIB/USAC TC3 9,500 6,500 10,000 8,500

Dry 12-Oct-11 Sep Avg Avg YTD 2010 Avg

BDI 2,127 1,840 1,451 2,758

BCI 3,486 3,128 1,949 3,480

BPI 2,026 1,682 1,727 3,115

BSI 1,568 1,437 1,375 1,365

Container 10-Oct-11 Sep Avg Avg YTD 2010 Avg

B O X i 74.74 79.67 91.87 63.83

Financial 12-Oct-11 Sep Avg Avg YTD 2010 Avg

BRENT CRUDE US$/bbl 109.00 109.46 110.97 79.49

IFO 380 ROTT US$/mt 647.50 635.82 612.91 449.24

YEN/US$ 77.30 76.80 80.32 87.70

WON/US$ 1,165 1,116 1,098 1,155

US$/EURO 1.38 1.38 1.40 1.33

US$/STERLING 1.58 1.58 1.61 1.55

GOLD /US$ 1,683 1,772 1,539 1,224

Braemar Seascope Weekly Chartering Report 2

13/10/2011

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VLCC

Aristotle Onassis once said "After a certain point, money is meaningless. It ceases to be the goal. The game is what counts." We wonder if this has come back to haunt the industry in reverse. Shipowners in the AG are losing substan-tial sums of money and simply trying to keep ships moving. There was a time when the AG VLCC market was like a poker game. Charterers got their dates and assessed when they should put their cargoes in the market. Sometimes they got caught and paid the price, and owners won big. Other times they forced the market to the floor and were win-ners themselves. These days there is virtually zero volatility, and most of the time the market has about as much con-frontation as a game of patience. This week we did briefly see some owners putting up resistance for AG/East car-goes being lifted at the end of October. In a pattern often repeated, the western owners were trying to push rates up, refusing to trade below ws45.0. But then a Korean shipping company once again stepped in to save the blushes of their countrymen and fixed 267,500 x ws43.0. Evidently "local relationships" still hold firm, even when one party is bleeding money through the nose. The old adage that a chain is only as strong as its weakest link rings true, and there are just too many weak links in this market. West Africa has seen significant improvements for the earlier dates on the back of an improved suezmax market. However, as is always the danger when the AG is flat, ballasters will kill any markedly improved rates. For W Africa/US Gulf off early November dates, 260kt x ws60.0 was achieved. But with 260kt x ws45.0 fixed W Africa/East a cou-ple of times, this rate (to the US Gulf) must be down to the ws50.0 level. IOC are currently in the market for a W Af-rica/WC India cargo of 8-9 November laycan – the only cargo they have traded this week. At the time of writing, char-terers are countering US$2.85m for the business, reflecting the firmness seen in the Atlantic in the past week as the last done for W Africa/WC India was US$2.5m. We are assessing W Africa/WC India at US$3.0m and W Africa/EC India at US$3.2m. The 30-day availability index shows 59 double hulls and one single hull arriving at Fujairah, compared to 72 doubles and one single last week. So far for October we have seen 96 cargoes covered. We expect at least 110 cargoes for the month. The freight rate for 280,000mt AG/US Gulf is ws32.0, ws0.5 points less than last week. With bunkers at US$667/tonne, US$34/tonne up from last week, owners' earnings are: Double Hull TCE: US$-11,750/day (US$-8,000/day last week) - calculated round trip laden at 14.5kts via Cape / bal-last at 16kts via Suez The freight rate for 270,000mt AG/S Korea is ws43.0, up ws1.5 points from last week, making owners' earnings: Double Hull TCE: US$-1,830/day (US$-1,000/day last week) - calculated round trip Ras Tanura/Yosu laden at 14.5kts / ballast at 16kts N.B. Owners can improve earnings by reducing laden/ballast speed.

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

TD1 280,000 Ras Tanura LOOP ws32.0 ws32.0

TD2 265,000 Ras Tanura Singapore ws42.5 ws41.5

TD3 265,000 Ras Tanura Chiba ws42.5 ws41.5

TD4 260,000 Bonny LOOP ws59.0 ws61.5

TD15 260,000 West Africa China ws45.0 ws49.0

Long East61%

Short East27%

West12%

VLCC AG Monthly Spot Fixtures by VolumeFinal Destination (September 2011)

China40%

USA19%

Korea/Japan19% Spore/Indo

15%

India7%

VLCC AG Weekly Spot Fixtures by VolumeIntended Discharge (5th - 12th Oct 2011)

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13/10/2011

The market expected there to be a number of cargoes left to fix in the 25-30 window. There was a surprising develop-ment when the West Africa market produced a couple of cargoes in the 20-25 window at the end of last week. Under-standably, with charterers leaving these cargoes so late, the cargoes came up against some strong resistance from owners. Rates continued on their upward trend and by the end of last week, we had seen ws95.0 fixed to US Gulf. At the start of this week, charterers still had cargoes for October dates and rates continued to rise to ws105.0 for UK Cont-Med, with the US Gulf rates following in fairly closely behind. The pressure seemed to tell and charterers looked to go down the VLCC route – not necessarily a viable option for October dates, but moving into November dates the VLCC tonnage was available. This led to a slight quietening of the suezmax market, although sentiment was little changed very little. There was added spice coming to the market from the Med/Black Sea market, which was demonstrating good strength. We are yet to see November dates in earnest on the suezmaxes, however it is expected that charterers will try and sit back as long as possible in order to take some of the heat out of the market. The tonnage list still looks tight up to the first of the month, though it is difficult to know how owners will react after a couple of quiet days. The confidence the owners had last week in the Med/Black Sea market continued into this week, and if anything, in-creased. The immediate news over the weekend was the threat of increased tonnage having to queue to go through the Turkish straits, instantly doubling the length of delays. With rates for cross-Med sitting comfortably in the ws90s, owners seized on the uncertainty and pushed the Black Sea/US Gulf rates up to ws95.0, hinting that the UK Cont-Med rates would be over ws100.0. This led to a busy couple of days for charterers at the beginning of the week as they looked to cover their positions with safe ships. Through various stages, the Black Sea market jumped from ws105.0 UK Cont-Med through ws120.0 and upwards to ws145.0. This of course took cross-Med with it up to ws137.5 as owners took advantage of nervous charterers. As the week moved on, doubt started to build over the enforcement of the new Turkish straits regulations and at the time of writing, it looks like the new rules will not be enforced. This will naturally lead to a reduction in the delays through the Dardanelles. However, this is of course subject to the weather remaining clear, which is by no means certain at this time of year. The October program is now completed from the Black Sea, and we should have a couple of calmer days as charterers wait for their November Novorossiysk dates. It was interest-ing to see ships ballasting from the East to fix from the Med and Black Sea, which by the end of the week had maybe helped push the rates downwards to ws130.0 for cross-Med. The list still looks tight for early November stems, espe-cially if the delays do not decrease. As such, owners will be hoping to make the most of the current market conditions. In these days of global uncertainty, there is one constant. The AG suezmax market has remained effectively un-changed for about six months. There has been one significant development this week: we have seen a couple of ships desert the eastern market and ballast through to the Mediterranean market. We saw a single fixture for AG/S Africa which fixed at ws67.5. This was another demonstration of owners’ eagerness to get west. There were the usual fluctua-tions in the India runs, with 125kt x ws85.0 being fixed this week. The AG/East market continues to be relatively un-tested with the rates somewhere in the ws75.0-80.0 window. The VLCC market continues along in the doldrums, and this will continue to be the guiding influence on suezmaxes.

Suezmax

USA28%

NW Europe44%

India East11%

S America11%

S Africa6%

Suezmax WAFR Weekly Spot Fixtures by VolumeIntended Discharge (5th - 12th Oct 2011)


TD5 130,000 Bonny Philadelphia ws105.0 ws104.5

TD6 135,000 Novorossiysk Augusta ws140.0 ws125.5

135,000 Mediterranean UK Cont ws130.0 ws115.0

135,000 North Sea US Gulf ws95.0 ws95.0

135,000 Ras Tanura South East Asia ws80.0 ws80.0

W Africa43%

Med/Red Sea7%

Black Sea23%

AG10%

Carib/EC Mex5%

NW Europe10%

S America2%

Suezmax Weekly Spot Fixtures by VolumeLoad Area (5th - 12th Oct 2011)


13/10/2011

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Aframax

It has been an interesting week for aframaxes in the West, with an improvement in rates seen in every aframax west-ern market. Following last week's spike in the Mediterranean and Black Sea markets, sentiment in the North Sea and Baltic continued too, as owners started to become bullish with their rate ideas. The tonnage list tightened as the week progressed as owners decided to ballast Continent ships towards the Mediterranean and Black Sea, where earnings were significantly better. Baltic/UK Cont rates firmed up to ws90.0 mid-week, but after continued strong sentiment and activity, they have continued to move in an upward direction with the market rated at least at 100kt x ws100.0, if not more. We are not even half way into the month, but the majority – if not all – of the month’s Primorsk stems for Octo-ber have now been covered. It is still unclear where this market is heading into next week. An important factor will be whether ships which are expected to receive discharge orders actually do so, and then reappear on the tonnage lists. The North Sea has experienced a steady flow of activity also this week, and for a typical cross-North Sea voyage, charterers can expect to pay in the region of 80kt x ws115.0-120.0, BITR came out at ws117.71 today.

In the Mediterranean and Black Sea, fixing rates got even better for owners. Last week's rumours became this week's reality. Turkish Strait delays increased to five to six days, meaning that charterers looked further ahead to cover their Black Sea programs. The consequence of this was more enquiry to an already bullish market. Seeing this, other char-terers moved to fix their cross-Med cargoes with a "get in, get out" approach in the rising market, which in turn added to the hype amongst owners. Suezmax rates jumped too, making them uncompetitive on a part cargo basis, meaning that there was no reprieve in that respect. As a result, last done ex-Black Sea is 80kt x ws177.5, while in the Mediter-ranean a replacement was done at 80kt x ws180.0. Vessels from all over are ballasting to pick up a substantial pay-day - from the North, from the States, from east of Suez. Rates seem steady currently, but it has been a fairly quiet 24 hours. This month's Black Sea program seems to be more or less covered, so enquiry should diminish for the time being. Coupled with this, restrictions are due to be reduced in the Turkish Straits, and barring no further bad weather – which is a big and very unpredictable 'if' – delays will decrease. With all of these factors considered, and a large list of possible tonnage due to the ballasters, fixing rates could drop very quickly. But this largely depends on the weather and whether charterers need to cover in advance.

Rates in the Caribbean continued to move upwards this week after rates finally budged from ws90.0 last week. Even though the market has not seen a high volume of activity, the market is currently rated at 70kt x ws115.0. With ton-nage ballasting trans-Atlantic from the USAC, tonnage lists will be shorter next week and if enquiry improves there is potential for rates to firm further.

NW Europe53%

Med/Red Sea31% USA

5%

India East11%

Aframax (West of Suez) Weekly Spot FixturesIntended Discharge Area (5th - 12th Oct 2011)

Baltic44%

N Africa/E Med31%

Black Sea12%

UK Cont7%

W Africa3%

Med3%

Aframax (West of Suez) Weekly Spot FixturesLoad Area (5th - 12th Oct 2011)


TD7 80,000 Sullom Voe Wilhelmshaven ws120.0 ws110.5

TD8 80,000 Mina Al Ahmadi Singapore ws97.5 ws94.5

TD9 70,000 Puerto La Cruz Corpus Christi ws120.0 ws107.5

TD14 80,000 Seria Sydney ws87.5 ws87.5

TD17 100,000 Primorsk Wilhelmshaven ws100.0 ws89.5

TD19 80,000 Ceyhan Lavera ws180.0 ws170.0


13/10/2011

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120,000

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TD3 - 260 - Ras Tanura - Chiba TCE

2009

2010

2011

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80,000

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TD5 - 130 - Bonny - Philadelphia TCE

2009

2010

2011

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60,000

80,000

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TD7 - 80 - Sullom Voe - Wilhelmshaven TCE

2009

2010

2011

-5,000

5,000

15,000

25,000

35,000

45,000

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TD9 - 70 Puerto La Cruz- Corpus Christi TCE

2009

2010

2011


13/10/2011

To quote one of the great bards of our time; Francis Rossi "down down deeper and down" or should that be "here we are and here are and here we go (again)". Either way, it's rare that the exquisite prose of this modern legend of euphonious poetry hasn't got a wise reflection on the current products shipping markets. Now, I Ain't Complaining (that's the last one, I promise) but charterers have taken full advantage of the owners Again and Again (sorry, that's definitely the last one) pushing rates down through the ws120.0 mark for LR1s, and sub US$1.8m confirmed for WC India/UK Cont, both mak-ing earnings of around US$3,000/day round trip. This has usually marked the bottom of any recent markets, and so maybe this week’s levels should mark a nadir (oh sod it) And That's a Fact. Through all of this the LR2s have managed to singularly avoid any reported straight AG/Japan or 'TC1' fixture all week, apart from a couple of Japanese ships going into COAs. In the meantime, the newbuilding aframax ships have been Burning Bridges (Bam!) for the LR2 ships, picking up the ULSD cargoes that are shifting from Korea and WC India into Med and UK Cont at levels US$250-300,000 dis-count to LR2 rates. With owners of the coated ships clinging to rates, especially in the West – which are looking increas-ingly out of kilter – then it's fast approaching Analyse Time (Wahey!) for the owners who are going to have to face rates to Japan likely to exceed ws110.0. This is in addition to serious discounts to their current ideas for voyages west. How-ever, I'm Giving Up My Worrying, I know Nothing Comes Easy but there's always Margarita Time (a little convoluted, but I wasn't coming out of this without getting Margarita Time in). It has been another tough few days for MR owners in the AG. The prompt position remains the main cause for concern with whats seems to be a never-ending list of well-approved modern vessels seeking short haul employment. That being said, the order of the week has been the Cross/AG market, not because it has been overly active, but because there has been nothing else to talk about. The usual players have taken advantage of low freight rates, picking off boats cheaply for UMS runs into Iraq and helping themselves to struggling LR1 tonnage desperate to kill a few days. The long haul market has been non-existent. Today, whatever glimmers of hope as questions emerge for South Africa bound cargoes off last decade October, which may serve to slow the ever sliding rates. Looking ahead into early Novemeber, there ap-pear to be a few more naphtha and gasoline cargoes either bought already or awaiting award ex-WC India, which can only be viewed as positive. In the meantime however, we need a bit of action to ensure these cargoes have an impact on rates when the time comes for them to be fixed.

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Clean Products - East

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TC1 - 75 - Ras Tanura - Yokohama TCE

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2010

2011

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30,000

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TC5 - 55 - Ras Tanura - Yokohama TCE

2009

2010

2011


TC1 75,000 Ras Tanura Yokohama ws117.5 ws119.0

TC5 55,000 Ras Tanura Yokohama ws115.0 ws118.5

TC4 30,000 Singapore Chiba ws150.0 ws150.0

TC12 35,000 WC India Japan ws140.5 ws142.0


13/10/2011

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Clean Products - West

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30,000

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TC2 - 37 - Rotterdam - New York TCE

2009

2010

2011

0

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15,000

20,000

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TC3 - 38 - Aruba - New York TCE

2009

2010

2011


TC2 37,000 Rotterdam New York ws145.0 ws148.0

TC3 38,000 Aruba New York ws155.0 ws152.5

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

There has been a much larger than average volume of fixing this week on the Continent, yet rates have barely moved, and may well end up nominally weaker than they were at the start of the week. A week which has seen 19 TC2 vessels fixed long haul, with a further four on subs as of time of writing, has witnessed rates remain firmly in the 37kt x ws145.0-150.0 bracket, with the rate currently arguably closer to ws145.0 than ws150.0. This has very much been a function of the active back haul market, with tonnage now piling up on the Continent on a fairly prompt basis. Indeed, had we not seen this level of fixing then it is easy to envisage rates now languishing at ws140.0 or even be-low, taking into account that the average number of TC2 fixtures during any given week is seven to nine. Activity has very much tailed off over the last 24 hours and there are now few, if any, remaining stems ex-Continent being shown. With tonnage still in reasonable supply up to the 20th of the month, and charterers now looking out beyond 23/24 dates, it will take a similar volume of fixtures in the early part of next week to prevent further erosion in both confi-dence and rates. That said, gasoline stock figures this week are bullish, showing a 4.1m bbl draw, with talk currently that the arbitrage into the States is open. For owners, then, the hope is that the volume of activity can be maintained along with the rates as at the moment tonnage supply is more than adequate to absorb the increased activity. Activity this week in the Mediterranean has mirrored the continent in that Monday/Tuesday were far more active than usually expected, although that activity has lapsed over the last 24 hours. However, unlike the Continent, there has at least been enough momentum to push rates somewhat, with cross-Med rates now up to 30kt x ws165.0, and rates ex-Black Sea and for the Continent some ten points higher than that. At one stage this week, congestion into the Black Sea looked like it might force rates up towards the ws200.0 mark, but that now looks most unlikely. Trans-Atlantic activity has been reasonable, but with nominal rates some five points below those being seen ex-Continent. The Caribbean market is still broadly holding the levels achieved by the end of last week, although TC3 Caribs/USAC can now be said to be a soft 38kt x ws155.0. Back haul, however, continues to flourish, and despite charterers best efforts to push the level back down towards 38kt x ws115.0, ws120.0 is now firmly established. For owners triangulat-ing with TC2 in the mid-high ws140s, this will finally be showing returns that are somewhat more than halfway decent.

13/10/2011

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Despite several national holidays, the week got off to a positive start on Monday, which set the tone for the week so far. The 4TC average has now broken the US$30,000/day mark and stands at US$31,034/day, an increase of US$3,750. The BCI has kept pace with the market and has risen over the week to 3546 (increase of 384), although the feeling is that these levels won't last past mid-next week, let alone the new year, with Q1 2012 FFA valued around US$14,100/day. The majority of fixing has been for W Australia/China. With as many as 15 ships fixed last week we have seen this level of activity continue until now, with the entrance of other miners to the market pushing the rates up. At the time of writing, all three majors have been busy taking vessels in a range of US$12.40-12.85/tonne, although most feel that US$12.50/tonne seems to be the market level. India also came into the market along with South Africa (which re-mains an active area), so owners had some available options to help improve rates on their side. Tonnage remains relatively tight in the Atlantic, and owners can now expect around US$36,500/day for a trans-Atlantic RV, up from around US$30,000/day this time last week. Tubarao/Qingdao also proved that the earlier posi-tions still command a premium over the index, and as a result of a firming Pacific, the front haul Brazil/China has risen from US$26/tonne level to US$28.50-29.00/tonne, and looks to move even further. On the period front it has been relatively quiet as the paper market has not reflected owners´ expectations. However, there are still charterers willing to look for vessels for a one or two year period. Anything beyond that seems very unlikely.

Capesize

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The Baltic Capesize Index vs Atlantic & Pacific Earnings

Atlantic Pacific BCI

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13/10/2011

With the end of the year festive season already occupying the minds of many owners, there has been an increased attention to short period business in the Pacific, with a number of fixtures being concluded close to mid-US$14,000/day levels. Tighter tonnage supply and respectable period rates have helped to drive the Pacific round trip rates to mid-to-high US$15,000/day levels. However, we anticipate an increased flow of tonnage in this region in the near term and the current trend is unlikely to be sustained during next week. It has been a steady and well-supported week in the Atlantic with positional fixtures at firmer levels reaching US$27,500/day + US$700,000 BB for front haul. There is talk of the market beginning to look a little toppy as the order list is dwindling, but still trans-Atlantic rounds are achieving US$18,000/day levels. For forward positions, charterers are holding out for lower rates whilst owners are now seeking preferably longer employment to beyond the festive sea-son and into 2012. We expect to see the Atlantic market remain firm into next week when it may slow and follow the cape trend.


Panamax

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The Baltic Panamax Index vs Atlantic & Pacific Earnings

Atlantic Pacific BPI

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13/10/2011


It has been a busy time charter week for supramaxes, with short period charters being concluded at inflated rates over the spot market. It appears that most owner-operators are drip feeding the tonnage market and a good balance is being maintained. The handysize market looks to be weakening as the tonnage list grows longer with spot fixture rates easing down. The Continent has once again remained strong this week, with scrap rates especially holding firm. The lack of a ton-nage, combined with increased demand – namely on handysizes – is really making it an owners’ market for the time being. It was rumoured that a 38k dwt vessel in the Baltic fixed a trip to the Far East at US$25,500/day. Handymax and supramax rates out of ECSA have firmed up considerably this week. Vessels out of W Africa are seeing in the region of mid-US$20s DOP for a trip to the Far East via ECSA. On the handysize front, owners of the larger handys are rating firm upper teens for trips to Continent.

Handy/Handymax/Supramax

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The Baltic Supramax Index vs Atlantic & Pacific Earnings

Atlantic Pacific BSI


13/10/2011

BHP gets the go ahead for Olympic Dam BHP Billiton secured approval from the South Australian government to expand its Olympic Dam project, subject to the company starting construction within five years. The project would become the world’s fourth biggest copper and gold deposit and largest uranium deposit. It is expected that BHP will give the final go ahead for the US$27 billion expansion by June 2012. The proposed mine expansion in the remote centre of South Australia will aim to produce 750,000 tonnes of copper and 19,000 tonnes of uranium oxide per year over 30 years. Current production of copper and uranium at the mine is 180,000 and 4,000 tonnes respectively. The South Australian government has given BHP assurance that royalty payments will not be raised for 45 years. Rio Tinto increases its exposure to copper next door to BHP Rio Tinto has signed an agreement with Tasman Resources with the intention of increasing its exposure to copper. The Vulcan prospect, only 30 kilometres north of Olympic Dam, will receive an instant injection of US$10m from Rio Tinto to fund exploration. Under the agreement, Rio would then have the option of acquiring an 80% stake in the project, with the company also agreeing to pay up to US$92m for the copper-gold project. China to further tax oil and gas in November Starting next month, the Chinese government will impose a value-based tax on the nation’s oil and natural gas sales at a rate of 5% to 10%. The tax is designed to help preserve energy in the world’s fastest growing economy and ensures that poorer areas producing much of China’s oil receive a greater share of the benefits. Coal stockpiles plunge in China The price of coal has risen as inventories at Qinhuangdao fell 25% to 4.41m tonnes from two weeks earlier. The demand for coal comes mainly from power plants in China that typically start buying and stockpiling early before winter. In July, China’s coal imports reached record levels of 17.5m tonnes with the majority being carried on pana-max vessels. FMG’s Nyidinghu deposit exceeds expectations Fortescue has revised its original estimates of iron ore reserves at its Nyidinghu deposit from 1.03 billion tonnes to 2.01 billion tonnes, increasing Fortescue’s total resource inventory to around 11.4 billion tonnes. Australia’s carbon pricing scheme given green light The carbon price reform was passed by the Australian House of Representatives by only two votes. The carbon price legislation will come into effect on 1 July 2012 and will see only a small proportion of listed companies being taxed at A$23 (US$23.40) a tonne for their carbon emissions. It is hoped the tax will fund research into renewable energy, but many executives argue that the tax is not “calibrated” with what’s going on with the rest of the world and puts the Australian economy at a disadvantage. Iron ore output record for Rio Tinto Despite global economic fears, Rio Tinto has produced 60m tonnes of iron ore for the third quarter, which is a 5% increase from last year. The company is confident that it will meet its 2011 forecast of producing a record 240m tonnes of iron ore.

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13/10/2011


A predictably slow market this week with several holidays being enjoyed around the shipping market. It would be fair to say that no one has missed much with little new business around, although a flurry of extension activity prevents it all being doom and gloom. On the back of last week, the post-panamax sector continued its dramatic decline, with one major operator in par-ticular sweeping up a number of positions in that size, having been idle for a while. Owners in this segment seem to have been forced into the decision to at least look to cover operational costs, never mind the pressure exerted by the banks, which we are sure is felt by most. Whilst this rate decline is a major concern when considering the extent to which it will affect the smaller size sectors moving forward, it has to be said that the number of idle ships in that size is now decreasing, so one would hope to hear less bad news on that front for now. As for fixing activity elsewhere, the 1700teu sector has again seen high levels of interest and the 1000teu size and smaller feeders are continuing to hold their own. Doubts remain as to how long the market can sustain a scenario whereby a b-170 design is fixing at higher levels than a 5000teu vessel. For now, though, extensions are being con-cluded at solid levels and vessels particularly well suited to respective trades can command a level in line with last done. Sentiment, as is often the case, is having a major impact on the current market and cannot be underestimated - with continuously damning news from the world's financial markets, it is hardly surprising that our shipping market is rather downbeat, so the massive challenge to ride out the current storm remains in the hope of a healthier, more balanced market in 2012.

Containers

72.71

Vessel (Teu/Hmg) Gear Speed Knots Index + / -510/285 Gearless 15.5 4.17 ► 0.00

700/440 Gearless 17.5 5.00 ▼ 0.10

750/415 Geared 16.0 5.52 ► 0.00

1000/650 Geared 17.5 6.10 ▼ 0.40

1100/715 Geared 20.0 7.61 ▼ 0.17

1350/925 Geared 20.0 5.60 ▼ 0.17

1600/1150 Gearless 18.0 7.22 ▼ 0.13

1700/1125 Geared 19.5 6.66 ▼ 0.15

1740/1300 Geared 20.5 7.00 ▼ 0.30

2000/1600 Geared 21.0 2.89 ▼ 0.04

2500/1900 Geared 22.0 5.04 ▼ 0.07

2800/2000 Gearless 22.0 4.73 ▼ 0.15

3500/2500 Gearless 23.0 3.50 ▼ 0.16

4250/2800 Gearless 24.0 1.67 ▼ 0.21

Index Total 72.71 ▼ 2.06

Documents

Braemar Seascope Report 20111013