Market insight

By Stelios Kollintzas

Specialized Products Desk

It is evident that that freight rates across the edible oil markets worldwide

are low. A�er a tradi�onal slow January, Chinese New Year had li!le effect

on increasing demand, when usually there is a rush of buying. Although

there are no clear signs of a sharp recovery, March already looks slightly

firmer and we expect freight rates to correct during the 2nd quarter of the

year.

In par�cular, freight rates in Asia’s long-haul palm oil routes, had been de-

scending for almost 6 months un�l the end of February. Last seen hire rates

on the usual �me charter trip to the West for the new building eco-ships are

18,250-18,500 usd/pd delivery ex-yard, whereas the normal MRs have been

reported earnings of 17,000-17500 usd/pd. Volumes across inter-regional

palm oil markets (China-India), have also dropped considerably during the

same period, with a scarce of cargoes against long lists of available ships.

However, we recently witnessed a slight increase of palm oil shipments into

India, a�er the country boosted its purchases due to a shor:all of its domes-

�c harvest of cooking oil. Yet, we s�ll have not seen the respec�ve reac�on

on rates. China’s demand of palm oil is weak, largely due to Chinese palm

buyers switching to cheaper soya bean oil. The going rates for Straits/WCI

and Straits/ECI bss 10-15k shipments are between 18-20 usd/pmt. Mid Chi-

na shipments pay around 38-39 usd/pmt bss 8-12k shipments.

Looking West, the export market for vegetable oils from Argen�na and Brazil

is not showing any signs of slowing down. Export volumes for February-

March along with demand from India and China have been healthy and

freight rates have been moving sideways - despite a recent spike in CPP mar-

ket across the Atlan�c. As such, it remains to see if the strong CPP market

will last and what the impact on freight rates ex-S. America will be. Overall,

with the new crops coming out in April/May, the outlook for the following

months remains posi�ve. In addi�on, a so� palm oil market in the East is a

good reason for many Owners to stay West, which may force charterers pay

an extra dollar in order to make Owners take the risk and sail East. Current-

ly, freight rates to W.C / E.C. India basis 30-35,000 MTS are se!led between

55-57 usd/pmt basis 1:2 and about 51-53 usd/pmt basis 2:2 on 40–42,000

MTS shipments.

Once again, Black Sea ac�on is concentrated on the intermediate sizes with

steady fixtures concluded for February and March. On the other hand, car-

go stems for MR and Handy size ships have again been rare. It is not surpris-

ing that many FOSFA posi�ons, which open in the East Med - Black Sea area

are forced to look for employment into the CPP market. Overall, freight

rates for cargoes to MED, CONT and East of Suez are so�. Shipments of

19/23 kmtons sunflower oil to India are paying as much as mid-high 50s usd,

where 18/19 kmtons shipments are concluded at low 40s usd. At last, since

the sanc�ons against Iran were li�ed earlier this year, more and more car-

goes are quoted in the market, but Owners are s�ll not rushing to get in-

volved in this trade.

On a closing note, we should highlight that Palm oil inventories in Malaysia

fell to an 11-month low in February as dry weather across SE Asia in August,

triggered by the strongest El Nino in almost two decades, hurt the crop in

the world’s second-largest producer. Decline in produc�on, increased prices

and further stockpile shrinkage are expected to be significant the next

months. At the �me of wri�ng, many of the global edible oil players are

gathered in Malaysia for the annual Palm Oil Conference where the afore-

men�oned issues will be amongst the major topics. .

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

The BDI noted another weekly increase with rates for Capes once again

missing on the market upside. The BDI closed today (08/03/2016) at 366

points, up by 12 points compared to Monday’s levels (07/03/2016) and

an increase of 34 points when compared to previous Tuesday’s closing

(01/03/2016). Rates for the crude carriers market so�ened last week,

while healthy Middle East ac�vity is expected to support the market in

the following days. The BDTI Monday (07/03/2016) was at 738 points,

an increase of 8 points and the BCTI at 515, unchanged compared to

previous Monday’s (29/02/2016) levels.

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

SnP ac�vity sustained its volume last week, with interest in Dry Bulk

tonnage being concentrated around the geared sizes, which seem to be

steadily regaining ground in the freight market. On the tanker side, we

had the sale of the “GREAT WHITE” (104,024dwt-blt 99, S. Korea) which

was sold to Indonesian owner, Soechi, for a price in the region of

$15.0m. On the dry bulker side, we had the sale of the “C. WINNER”

(169,237dwt-blt 08, S. Korea), which was sold to Greek owner, Brave

Mari�me, for a price in the region of $11.3m.

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

The increased number of orders surfacing last week brought back mem-

ories of the busy market of last year, however, given the fact the most

of these deals concern orders for tankers below 20,000dwt placed at

smaller yards as well as older deals surfacing now, we reiterate our

opinion that no sharp surge in ordering ac�vity should be expected any-

�me soon. Amidst con�nuously falling newbuilding prices and ailing

appe�te for ordering across all sectors, confirma�on of the Vale linked

order for 30 VLOCs, firstly reported back in November 2015, has brought

more clouds over the Dry Bulk market. The 30 Valemaxes are scheduled

for delivery in 2018, a �me during which the Capesize market is ex-

pected to be enjoying balanced supply as a result of non-existent order-

ing and intense scrapping during 2015 and 2016. The fact that even

within an environment in which Capes are being fixed at historically low

rates, key for the trade players in the likes of Vale chose to order in-

stead, outlines the structural nature of the challenges the segment is

facing. In terms of recently reported deals, Fairfield Maxwell placed an

order for one firm MR (49,800dwt) at Onomichi, in Japan with delivery

set in 2018.

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

Following almost three months of con�nuous price declines, the demoli-

�on market finally had to offer some good news last week as average

prices across both the Indian subcon�nent and China rebounded by

$10/ldt. The long awaited upward correc�on, which was purely inspired

by the recent jump in commodity prices, including steel, already had a

substan�al posi�ve effect on market sen�ment and resulted in in-

creased demand by breakers, a big part of whom returned to the market

with renewed appe�te. Nonetheless, given the market’s poor perfor-

mance so far this year, it is certainly difficult to be op�mis�c that this

rally could extend for much longer, as the spike was caused purely due

to posi�ve sen�ment surrounding announced Chinese ac�on to revive

growth. For fundamentals to once more become favorable for the dem-

oli�on market, the price of Chinese steel needs to move higher and stay

there. This, will happen on the back of strengthening demand by build-

ers in the country and not traders, who are the ones currently causing

the price surge. Prices this week for wet tonnage were at around 140-

250 $/ldt and dry units received about 120-235 $/ldt.

Weekly Market Report

Issue: Week 10 | Tuesday 8th

March 2016

© Intermodal Research 08/03/2016 2

2015 2014

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 52.5 39,381 52.5 39,650 -0.7% 65,906 30,469

280k MEG-USG 28 18,810 32 23,012 -18.3% 49,575 17,173

260k WAF-USG 65 55,988 70 61,790 -9.4% 76,251 40,541

130k MED-MED 80 31,423 85 35,289 -11.0% 50,337 30,950

130k WAF-USAC 65 23,960 70 26,682 -10.2% 40,490 24,835

130k BSEA-MED 72.5 27,965 77.5 31,487 -11.2% 50,337 30,950

80k MEG-EAST 117.5 31,079 117.5 31,518 -1.4% 34,131 19,956

80k MED-MED 80 17,374 95 24,544 -29.2% 37,127 28,344

80k UKC-UKC 92.5 20,790 92.5 21,141 -1.7% 39,338 33,573

70k CARIBS-USG 140.0 36,009 145 37,277 -3.4% 36,519 25,747

75k MEG-JAPAN 87.5 18,953 88 19,314 -1.9% 30,482 16,797

55k MEG-JAPAN 105 16,998 97.5 15,069 12.8% 24,854 14,461

37K UKC-USAC 112.5 12,323 115 12,412 -0.7% 19,973 10,689

30K MED-MED 130 9,610 135 10,986 -12.5% 24,473 18,707

55K UKC-USG 100 17,323 110 20,182 -14.2% 27,228 23,723

55K MED-USG 100 16,493 110 19,425 -15.1% 26,083 21,089

50k CARIBS-USAC 130 22,449 130 22,357 0.4% 27,146 25,521

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Spot Rates

Vessel Routes

Week 10 Week 9$/day

±%

Mar-16

avg

Feb-16

avg±% 2015 2014 2013

300KT DH 76.5 78.9 -3.0% 80.9 73.8 56.2

150KT DH 56.5 58.5 -3.4% 59.5 50.4 40.1

110KT DH 40.5 43.0 -5.8% 45.3 38.9 29.2

75KT DH 36.0 36.4 -1.0% 35.8 33.0 28.0

52KT DH 27.5 27.6 -0.5% 27.3 27.5 24.7

Aframax

LR1

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Chartering

Rates for the crude carriers market remained on a downward path last

week despite the fact that the Middle East was busy overall compared to

the week prior, as the number of vessels looking for employment in the

region didn't allow owners to get the upper hand. Saying that, the lack of

extreme vola�lity remains evidence of an overall healthy market. We ex-

pect rates to win some of their lost ground back in the following days, as

the supply demand rela�onship looks to be regaining its balance as far as

the second half of March is concerned. The recent jump in oil prices, which

touched their 2016 highs, gathered naturally everyone’s a!en�on. Bold

statements from the Chinese administra�on in regards to addi�onal s�mu-

lus together with what seems as alignment of major oil producers in cuTng

back produc�on, pushed oil up, fact that could support demand especially

in an�cipa�on of higher prices ahead.

Substan�ally firmer enquiry managed to eat into open VL posi�ons in the

Middle East but the posi�ve effect on rates is yet to be witnessed given the

excess supply of tonnage that has been building up since mid-Feb in the

region.

The W. Africa Suezmax also saw improved ac�vity with rates covering part

of their losses during the second half of the week, while the Black Sea rate

performance aligned with that of W. Africa. Steady demand in the North

Sea kept Afra rates unchanged, while earnings in the Med moved to new

year low before improving a bit. The Caribs Afra closed off the week slightly

lower with owners s�ll benefiTng form delays in the USG .

Sale & Purchase

In the Aframax sector, we had the sale of the “GREAT WHITE” (104,024dwt-

blt 99, S. Korea) which was sold to Indonesian owner, Soechi, for a price in

the region of $15.0m.

In the MR sector, we had the sale of the “SEARAMBLER” (37,135dwt-blt 01,

S. Korea) which was sold to UAE based buyers, for a price in the region of

$11.0m.

Wet Market

Indicative Period Charters

-6 mos - 'LEOPARD SEA' 2013 51,800 dwt

- - $17,750/day - Cargill

-36 mos - 'PORTMAN' 1998 47,400 dwt

- - $17,600/day - Petrobras

2070

120170220270320370420470520

WS

po

ints

DIRTY - WS RATESTD3 TD6 TD9

Week 10 Week 9 ±% Diff 2015 2014

300k 1yr TC 45,000 45,000 0.0% 0 46,135 28,346

300k 3yr TC 40,000 41,000 -2.4% -1000 42,075 30,383

150k 1yr TC 35,000 35,000 0.0% 0 35,250 22,942

150k 3yr TC 31,000 32,000 -3.1% -1000 33,219 24,613

110k 1yr TC 27,500 29,000 -5.2% -1500 26,808 17,769

110k 3yr TC 24,000 25,000 -4.0% -1000 24,729 19,229

75k 1yr TC 23,000 23,500 -2.1% -500 23,596 16,135

75k 3yr TC 21,000 21,500 -2.3% -500 20,580 16,666

52k 1yr TC 17,750 17,750 0.0% 0 17,865 14,889

52k 3yr TC 17,500 18,250 -4.1% -750 16,638 15,604

36k 1yr TC 16,750 16,750 0.0% 0 16,101 14,024

36k 3yr TC 16,250 16,250 0.0% 0 15,450 14,878

Panamax

MR

Handy

TC Rates

$/day

VLCC

Suezmax

Aframax

60

90

120

150

180

210

240

270

WS

po

ints

CLEAN - WS RATESTC1 TC2 TC5 TC6

© Intermodal Research 08/03/2016 3

0

500

1,000

1,500

2,000

2,500

3,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

$/d

ay

Average T/C Rates

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

Chartering

With the BDI marking its third consecu�ve posi�ve weekly closing, it feels

safe to say that the market is regaining its balance; slowly and painfully

without a doubt but given the performance of earnings during the past

months these small up�cks is all owners can hope for now. Once again,

rates for Capes snubbed the upside, but we do expect to see sooner rather

than later some sort of posi�ve movement for Capes as well. A�er all, an

upward correc�on purely on the back of an overall improving market is

now long due for the segment. Looking ahead, the jump in commodity pric-

es on the back of Chinese policymakers commiTng once again to boost

growth together with indica�ons that a round of substan�al iron ore re-

stocking is coming up before summer, has pushed the price of the com-

modity over 20% up yesterday. Whether this could further help the

Capesize market is yet to be seen. Let’s not forget that it has been the ex-

cess supply of tonnage and not actual volumes of iron ore imports that

have been hammering rates.

Capesize vessels kept opera�ng in an environment of limited enquiry and

historically low rates, while any small up�cks were quick to disappear as the

re are just too many vessels compe�ng for very few cargoes across both

basins.

Fresh Panamax inquiries from East Coast South America con�nued coming

up generously this week as well, however the rest of the Atlan�c, including

the U.S. Gulf, remain rather slow. The Pacific basin saw slightly improved

numbers as well, with increased Australian coal cargoes providing support

to rates in the region.

On the geared sizes front, there has been a strong sense of op�mism lately

as ECSA has become very ac�ve, while in the Pacific reported business was

steadily above last dones, signalling a further improving market.

Sale & Purchase

In the Capesize sector we had the sale of the “C. WINNER” (169,237dwt-blt

08, S. Korea), which was sold to Greek owner, Brave Mari�me, for a price in

the region of $11.3m.

In the Ultramax sector we had the resale of the “IWAGI 395” (61,000dwt-blt

16, Japan) which was reported being sold to Japanese buyers for a price of

$18.5m.

Mar-16 avg Feb-16 avg ±% 2015 2014 2013

180k 20.0 20.9 -4.2% 33.1 47.5 35.8

76K 11.0 12.3 -10.2% 17.2 24.8 21.3

56k 9.0 9.8 -7.7% 16.1 25.2 21.5

30K 7.0 7.8 -9.7% 13.3 20.0 18.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Indicative Period Charters

-4 to 7 mos - 'MAVERICK GUARDIAN' 2012 82,740 dwt

-Lianyungang 22/27 Feb - $ 5,100/day -Oldendorff

- 10 to 13 mos - 'OCEAN GARLIC' 2012 82,036 dwt

- Singapore 15 Feb - $ 4,850/day - BDH

Dry Market

Index $/day Index $/day Index Index

BDI 349 327 22 713 1,097

BCI 164 $2,221 177 $2,396 -13 -7.3% 1,009 1,943

BPI 386 $3,098 352 $2,823 34 9.7% 692 960

BSI 371 $3,875 333 $3,481 38 11.3% 663 937

BHSI 232 $3,446 212 $3,146 20 9.5% 365 522

26/02/2016

Baltic IndicesWeek 10

04/03/2016

Week 9Point

Diff

2015 2014$/day

±%

180K 6mnt TC 4,500 4,500 0.0% 0 9,969 22,020

180K 1yr TC 5,000 5,000 0.0% 0 10,263 21,921

180K 3yr TC 6,500 6,500 0.0% 0 11,243 21,097

76K 6mnt TC 4,750 4,750 0.0% 0 7,921 12,300

76K 1yr TC 4,750 4,750 0.0% 0 7,705 12,259

76K 3yr TC 6,000 6,250 -4.0% -250 8,724 13,244

55K 6mnt TC 4,500 4,250 5.9% 250 8,162 12,008

55K 1yr TC 5,500 5,250 4.8% 250 7,849 11,589

55K 3yr TC 6,750 6,750 0.0% 0 8,181 11,585

30K 6mnt TC 4,250 4,250 0.0% 0 6,690 9,113

30K 1yr TC 4,250 4,250 0.0% 0 6,897 9,226

30K 3yr TC 5,750 5,750 0.0% 0 7,291 9,541Han

dys

ize

Period

2014

Pa

na

ma

xS

up

ram

ax

Week

10

Week

9

Cap

esi

ze

2015$/day ±% Diff

© Intermodal Research 08/03/2016 4

Secondhand Sales

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

AFRA PACIFIC LONDON 113,334 1999SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W May-19 DH $ 15.0m undis closed

AFRA GREAT WHITE 104,024 1999SAMSUNG HEAVY

INDUSTRI, S. KoreaMAN-B&W Feb-19 DH $ 15.0m

Indones ian

(Soechi )

AFRA KASSOS 95,420 1995HYUNDAI HEAVY

INDS - U, S. KoreaB&W Aug-20 DH $ 8.3m Indi an (Arya)

MR SEARAMBLER 37,135 2001HYUNDAI MIPO

DOCKYARD, S. KoreaB&W Oct-16 DH $ 11.0m UAE based

PROD/

CHEMKASUGTA 19,822 2004

FUKUOKA FUKUOKA,

JapanB&W Aug-19 DH $ 17.2m Chinese

PROD/

CHEMDEVA MARIA 13,921 1990

SHIN KURUSHIMA

AKITSU, JapanB&W Apr-20 DH $ 2.5m undis closed

Tankers

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

CAPE C. WINNER 169,237 2008

DAEHAN

SHIPBUILDING -,

S. Korea

MAN-B&W Nov-18 $ 11.3mGreek (Brave

Mari time)

PMAXLOWLANDS

CAMELLIA76,807 2006

SASEBO SASEBO,

JapanMAN-B&W Dec-19 $ 6.5m Greek

UMAX IWAGI 395 61,000 2016 IWAGI, Japan MAN-B&W -4 X 30,7t

CRANES$ 18.5m Japanese

SMAXCHANG CHENG

GUO XING57,173 2010

XIAMEN

SHIPBUILDING IN,

China

MAN-B&W -4 X 30t

CRANES$ 6.9m

SMAXCHANG CHENG

GUO RONG57,080 2010

XIAMEN

SHIPBUILDING IN,

China

MAN-B&W -4 X 30t

CRANES$ 6.9m

SMAXCHANG CHENG

GUO RUI57,000 2011

YANGFAN GROUP

CO LTD, ChinaMAN-B&W -

4 X 30t

CRANES$ 7.3m

SMAX CAPITAL 56,000 2013

HYUNDAI-

VINASHIN SHIPY,

Vietnam

MAN-B&W Feb-184 X 30t

CRANES$ 8.3m

SMAX SECRET 56,000 2012

HYUNDAI-

VINASHIN SHIPY,

Vietnam

MAN-B&W Jan-184 X 35t

CRANES$ 8.3m

SMAX GLOBAL ISLAND 53,556 2004 IWAGI, Japan MAN-B&W Jul -194 X 30,5t

CRANES$ 4.5m Greek

HMAXAURORA

SAPPHIRE48,893 2000

IHI - TOKYO,

JapanSulzer Jan-20

4 X 30t

CRANES$ 2.9m Banglades i

HANDY CS CHARA 30,634 2006COCHIN

SHIPYARD, IndiaMAN-B&W Apr-16

4 X 30t

CRANES$ 4.3m Greek (Tide Line)

Chinese (Jiangsu

Suneng Logis ti cs ) at auc�on

Greek

Bulk Carriers

© Intermodal Research 08/03/2016 5

Secondhand Sales

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

SCL MARGRIT 7,776 2009TIANJIN XINHE

SHIPBUIL, ChinaMAN-B&W Feb-19 $ 2.9m

SCL ELISE 7,694 2009TIANJIN XINHE

SHIPBUIL, ChinaMAN-B&W Jul -19 $ 2.9m

SCL NICOLE 7,678 2009TIANJIN XINHE

SHIPBUIL, ChinaMAN-B&W Oct-19 $ 2.9m

SAN NICOLAS 5,099 2000 JINLING, China MaK Jan-202 X 40t

CRANES$ 1.6m undis clos ed

ADDI L 4,557 1995 SLIP, Russ ia Deutz - $ 1.7m undis clos ed

FAABORG 3,469 2004SLOVENSKE,

SlovakiaMaK Mar-19

2 X 35t

CRANES$ 3.0m undis clos ed

CONTENDER 3,155 1998

BARKMEIJER

STROOBOS,

Netherlands

MaK Apr-17 undis clos edDutch( Van Oord

NV)

undis clos ed

MPP/General Cargo

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

POST

PMAX

CMA CGM

CORNEILLE6,572 2009

HANJIN HI &

CONST - BU, S.

Korea

MAN-B&W Jun-19 $ 60.0m undisclosed incl. 9yr T/C

PMAXNORDIC

WISMAR3,421 2011

RONGCHENG

SHENFEI SHIP,

China

Wartsi la Nov-163 X 45t

CRANES,1 X

35t CRANES$ 20.0m

Norwegian

(NRP)

finance attached,

incl. T/C at

$11,500/day

Containers

© Intermodal Research 08/03/2016 6

The increased number of orders surfacing last week brought back memories

of the busy market of last year, however, given the fact the most of these

deals concern orders for tankers below 20,000dwt placed at smaller yards as

well as older deals surfacing now, we reiterate our opinion that no sharp

surge in ordering ac�vity should be expected any�me soon. Amidst con�nu-

ously falling newbuilding prices and ailing appe�te for ordering across all

sectors, confirma�on of the Vale linked order for 30 VLOCs, firstly reported

back in November 2015, has brought more clouds over the Dry Bulk market.

The 30 Valemaxes are scheduled for delivery in 2018, a �me during which

the Capesize market is expected to be enjoying balanced supply as a result of

non-existent ordering and intense scrapping during 2015 and 2016. The fact

that even within an environment in which Capes are being fixed at historical-

ly low rates, key for the trade players in the likes of Vale chose to order in-

stead, outlines the structural nature of the challenges the segment is facing.

In terms of recently reported deals, Fairfield Maxwell placed an order for one

firm MR (49,800dwt) at Onomichi, in Japan with delivery set in 2018.

Newbuilding Market

20

60

100

140

180

mil

lio

n $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

10

Week

9±% 2015 2014 2013

Capesize 180k 45.5 45.5 0.0% 49.9 56 49

Kamsarmax 82k 26.0 26.0 0.0% 27.8 30 27

Panamax 77k 25.5 25.5 0.0% 27.1 29 26

Ultramax 63k 24.0 24.0 0.0% 25 27 25

Handysize 38k 20.0 20.0 0.0% 21 23 21

VLCC 300k 92.0 92.5 -0.5% 95.5 99 91

Suezmax 160k 61.5 62.0 -0.8% 64 65 56

Aframax 115k 50.5 51.0 -1.0% 53 54 48

LR1 75k 44.0 44.5 -1.1% 45.8 46 41

MR 50k 35.0 35.5 -1.4% 36.1 37 34

190.0 190.0 0.0% 190.0 186 185

77.0 77.0 0.0% 77.4 78 71

68.0 68.0 0.0% 68.0 67 63

44.0 44.0 0.0% 45.5 44 41

Vessel

Indicative Newbuilding Prices (million$)

Bu

lke

rsTa

nke

rs

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

10

30

50

70

90

110

mil

lio

n $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2 Tanker 310,000 dwt NACKS, China 2017-2018 Japanese (Kawasaki Kisen) undisclosedolder deal surfacing

now

1 Tanker 49,800 dwt Onomichi, Japan 2018USA based (Fairfield-

Maxwell)undisclosed total 3 on order

3 Tanker 17,500 dwtPT Multi Ocean

Shipyard, Indonesia2017 $ 25.0m

3 Tanker 17,500 dwtPT Daya Radar Utama,

Indonesia2017 $ 25.0m

2 Tanker 17,500 dwtPT Anggrek Hitam,

Indonesia2017 $ 25.0m

2 Tanker 6,500 dwt Pha Rung, Vietnam 2018 S. Korean (BS Shpg.) $ 13.0m IMO-II

1 Tanker 6,500 dwt Pha Rung, Vietnam 2018 S. Korean (Y-Entec) $ 13.0m IMO-II

4 Bulker 34,500 dwt Oshima, Japan 2018 Canadian (Fednav) undisclosedlakes fitted, older

deal surfacing now

Newbuilding OrdersSize

Indonesian (Pertamina)

© Intermodal Research 08/03/2016 7

Following almost three months of con�nuous price declines, the demoli�on

market finally had to offer some good news last week as average prices

across both the Indian subcon�nent and China rebounded by $10/ldt. The

long awaited upward correc�on, which was purely inspired by the recent

jump in commodity prices, including steel, already had a substan�al posi�ve

effect on market sen�ment and resulted in increased demand by breakers, a

big part of whom returned to the market with renewed appe�te. Nonethe-

less, given the market’s poor performance so far this year, it is certainly diffi-

cult to be op�mis�c that this rally could extend for much longer, as the spike

was caused purely due to posi�ve sen�ment surrounding announced Chinese

ac�on to revive growth. For fundamentals to once more become favorable

for the demoli�on market, the price of Chinese steel needs to move higher

and stay there. This, will happen on the back of strengthening demand by

builders in the country and not traders, who are the ones currently causing

the price surge. Prices this week for wet tonnage were at around 140-250

$/ldt and dry units received about 120-235 $/ldt.

The highest price amongst recently reported deals, was that paid by Indian

breakers for the Container vessel “NORTHERN DIVINITY” (45,117dwt-

14,446ldt-blt 85), which received $257/ldt.

Demoli)on Market

Week

10

Week

9±% 2015 2014 2013

Bangladesh 250 240 4.2% 360 469 422

India 250 240 4.2% 361 478 426

Pakistan 250 240 4.2% 366 471 423

China 140 130 7.7% 193 313 365

Bangladesh 230 220 4.5% 341 451 402

India 235 225 4.4% 342 459 405

Pakistan 230 220 4.5% 343 449 401

China 120 110 9.1% 174 297 350

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

120

220

320

420

520

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

50

150

250

350

450

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

QUORN 179,869 22,586 1996 SASEBO SASEBO, Japan BULKER $ 246/Ldt Bangladeshi

SUNNY VOYAGER 152,025 18,254 1994CHINA SHIPBUILDING

KEE, TaiwanBULKER $ 247/Ldt Bangladeshi

NORTHERN DIVINITY 45,117 14,446 1997HYUNDAI HEAVY INDS -

U, S. KoreaCONT $ 257/Ldt Indian

as-is Singapore,

incl. 200T ROB

THE OPENER 70,029 12,126 1994HUDONG SHIPYARD,

ChinaBULKER $ 238/Ldt undisclosed

option India/Pakistan,

incl. 300T ROB

AQUARIA 73,236 10,481 1994SAMSUNG HEAVY

INDUSTRI, S. KoreaBULKER $ 240/Ldt Indian

KYTHNOS WARRIOR 72,072 9,617 1996HITACHI ZOSEN -

MAIZUR, JapanBULKER $ 230/Ldt Indian

SEA GLORY 27,279 6,935 1997HUDONG SHIPBUILDING

GR, ChinaBULKER $ 135/Ldt Chinese

FLORA 26,587 5,618 1985KANASASHI ZOSEN -

TOYO, JapanBULKER $ 230/Ldt undisclosed

option India/Pakistan,

incl. 300T ROB

FORTUNE

NAVIGATOR8,515 4,246 1998 MURAKAMI HIDE, Japan CONT $ 245/Ldt Indian

PORT NUMBAY 7,920 3,240 1983RICKMERS RICKMERS,

GermanyGC $ 230/Ldt Bangladeshi

MIGHTY PLEIADES 68,962 1997IMABARI MARUGAME,

JapanBULKER $ 240/Ldt Indian

Demolition Sales

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 & Valua�ons Department | research@intermodal.gr

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

Mr. Vassilis Logothe�s | v.logothe�s@intermodal.gr

Market News

“CMA CGM profit dips amid difficult trading condi-

)ons

Jacques Saade-led containership operator expects

market-bea�ng cargo volumes again in 2016. MA

CGM has seen full-year net profit slip by just 3% de-

spite the tough opera�ng environment in the sector.

The world’s third-largest container shipping firm said

net income for 2015 was $567m versus the $584m

seen a year earlier. Revenue was $15.7bn, down 6.4%

from 2014, as a 6.3% increase in transported volumes

was outweighed by the steep fall in freight rates.

Commen�ng on the results, Rodolphe Saade, CMA

CGM Group vice-chairman said: “Our opera�ng per-

formance once again illustrates the strength of our

business model and our capacity to adapt.

“In a challenging market environment, we con�nued

to roll out our strategy while adjus�ng our cost and

financing structure to best effect.

“The beginning of 2016 was tough and marked by

freight rates under pressure. We are therefore

strengthening our con�nuous efforts to adapt and

op�mize our mari�me services as well as our cost

reduc�on program.” Volumes carried in 2015 rose by

6.3% year-on-year to 13mteu supported by the

launch of a vessel-sharing alliance with China Ship-

ping and UASC, as well as expansion on US routes

that allowed it to benefit from an accelera�ng econo-

my in the US...” (Trade Winds)

Commodi)es & Ship Finance

4-Mar-16 3-Mar-16 2-Mar-16 1-Mar-16 29-Feb-16W-O-W

Change %

10year US Bond 1.880 1.830 1.840 1.830 1.740 6.8%

S&P 500 1,999.99 1,993.40 1,986.45 1,978.35 1,932.23 2.7%

Nasdaq 4,717.02 4,707.42 4,703.42 4,689.60 4,557.95 2.8%

Dow Jones 17,006.77 16,943.90 16,899.32 16,865.08 16,516.50 2.2%

FTSE 100 6,199.43 6,130.46 6,147.06 6,152.88 6,097.09 1.7%

FTSE All-Share UK 3,405.27 3,367.83 3,373.43 3,377.18 3,345.84 1.8%

CAC40 4,456.62 4,416.08 4,424.89 4,406.84 4,353.55 3.3%

Xetra Dax 9,824.17 9,751.92 9,776.62 9,717.16 9,495.40 3.5%

Nikkei 17,014.78 16,960.16 16,746.55 16,085.51 16,026.76 6.2%

Hang Seng 20,176.70 19,941.76 20,003.49 19,407.46 19,111.93 4.2%

DJ US Maritime 201.94 196.13 188.84 183.72 185.82 8.8%

$ / € 1.10 1.09 1.09 1.09 1.09 0.6%

$ / ₤ 1.42 1.42 1.41 1.40 1.39 2.6%

¥ / $ 113.80 113.70 113.48 113.92 112.44 -0.2%

$ / NoK 0.12 0.12 0.12 0.12 0.12 2.4%

Yuan / $ 6.52 6.50 6.55 6.54 6.55 -0.2%

Won / $ 1,198.30 1,211.84 1,227.40 1,228.66 1,238.60 -3.6%

$ INDEX 88.77 89.21 89.57 89.93 89.97 -0.4%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

an

ge

Da

ta

1,100

1,150

1,200

1,250

1,300

1,350

25

30

35

40

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

4-Mar-16 26-Feb-16W-O-W

Change %

Rotterdam 313.5 294.0 6.6%

Houston 340.0 343.0 -0.9%

Singapore 320.0 307.0 4.2%

Rotterdam 147.5 137.0 7.7%

Houston 135.0 140.0 -3.6%

Singapore 157.5 147.5 6.8%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 04-Mar-16 26-Feb-16

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 7.44 7.14 4.2%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 3.35 3.31 1.2%

COSTAMARE INC NYSE USD 9.01 7.18 25.5%

DANAOS CORPORATION NYSE USD 4.18 4.45 -6.1%

DIANA SHIPPING NYSE USD 2.84 2.45 15.9%

DRYSHIPS INC NASDAQ USD 0.14 0.11 27.3%

EAGLE BULK SHIPPING NASDAQ USD 1.29 0.69 87.0%

EUROSEAS LTD. NASDAQ USD 1.92 2.00 -4.0%

FREESEAS INC NASDAQ USD 0.02 0.04 -50.0%

GLOBUS MARITIME LIMITED NASDAQ USD 0.13 0.13 0.0%

GOLDENPORT HOLDINGS INC LONDON GBX 13.35 13.12 1.8%

HELLENIC CARRIERS LIMITED LONDON GBX 3.25 4.25 -23.5%

NAVIOS MARITIME ACQUISITIONS NYSE USD 1.78 1.70 4.7%

NAVIOS MARITIME HOLDINGS NYSE USD 1.25 0.82 52.4%

NAVIOS MARITIME PARTNERS LP NYSE USD 1.38 1.03 34.0%

PARAGON SHIPPING INC. NYSE USD 3.41 0.04 8425.0%

SAFE BULKERS INC NYSE USD 0.79 0.55 43.6%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.72 2.85 -4.6%

STAR BULK CARRIERS CORP NASDAQ USD 0.92 0.60 53.3%

STEALTHGAS INC NASDAQ USD 3.50 3.10 12.9%

TSAKOS ENERGY NAVIGATION NYSE USD 6.42 5.83 10.1%

TOP SHIPS INC NASDAQ USD 3.50 2.81 24.6%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

08/03/2016

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