Market insight By Tasos Papadopoulos SnP Broker With everyone still recovering from the receptions that took place during Posidonia week, it is not our intention to comment further on the much discussed swollen N/B orderbook and the plummeting freight market, but instead we grab the opportunity - in view of the recent announcement of the takeover of Sasebo Heavy Industries by Namura Zosen - to give an in-sight into the restructuring which has already taken place in some of the major newbuilding countries. This is the second consolidation move of its type in Japan; following the formation of Japan Marine United (JMU) through the merger of IHI Marine United and Universal Shipbuilding, which was set to turn two medium-sized Japanese shipbuilders into one of Japan’s major shipbuilding groups. At the same time it is worth remembering one of last year' failed attempts, when talks between Kawasaki Heavy Industries Ltd. And Mitsui Engineering & Shipbuilding Co. reached a stalemate. Despite setbacks like this, the Japanese government seems to be continuing to push its efforts to reduce the number of Japanese shipbuilders and in effect boosting the competitiveness of its industry against that of lower-cost rivals such as China and South Korea.

China CSSC Holdings Limited is also planning to restructure its facilities and reduce the number of its affiliated shipyards; it is rumoured that mergers of four major shipyards are under firm discussions, Hudong-Zhounghua Ship-building with Shanghai Shipyard and Shanghai Waigaoqiao Shipbuilding (SWS) together with Jiangnan Shipyard. Market players consider that the merger would boost up CSSC, by curbing keen competition between compa-nies under its wings for new business and orders, optimizing manpower and improving production efficiency.

Based on the current orderbook, the hardest hit sector has been China’s privately owned small to medium sized shipyards whose market share have considerably declined and it seems realistic that some may soon exit. These “lower standard, lower tech’” shipyards are struggling to survive, with small shipyards like Bluesky and Jingang, amongst others, having already filed for bankruptcy, whilst shipbuilding operations have been suspended at many other private shipyards in China which are struggling with cash flow difficul-ties; worth reminding that Rongsheng Heavy Industries Group, a mega-sized private yard, has been close to collapse due to similar cash flow issues and has asked the government for a bail out since July of last year.

Considering the large number of shipbuilders in China, industry experts have predicted that for the industry to stabilize, 30 to 50 percent will probably have to shut down operations over the next five years. This is supported by Yangzijiang’s executive chairman Ren Yuanlin’s statement that "a third of the nation’s yards face the danger of closure in about five years after failing to win orders." However, Xu Minle, an analyst at Bank of China International Ltd pointed out that "compared with shutting down of companies, mergers and acquisitions are less likely to cause social unrest.” It is obvious that shutting down shipyards is a hard choice for any government to make, while mergers and acquisitions are a “soft” alternative. Yet as much as it would benefit the industry to have a decline in shipbuilding capacity through M&A, it is not always an easy task to bring the two parties together. Maybe as a shift from the past, this time around, governments will choose to use incen-tives to trim the excess fat from their shipbuilding industry, rather than try-ing to support them all through artificial government-backed ordering and subsidies. The shipping industry could do with less “Sanko Steamship or-ders” (pertaining to the order of 123 dry bulkers in 1982 rumoured to have been supported then by the Japanese government) and more “Japan Marine United” mergers.

Chartering (Wet: Softer - / Dry: Stable+ )

The good performance of Capesize rates proved insufficient to inspire the rest of the market, which still operates under soft sentiment, while the Panamax segment has touched new year lows. The BDI closed today (10/06/2014) at 1,004 points, up by 5 points compared to Monday’s levels (09/06/2014) and an increase of 56 points compared to previous Tuesday’s closing (09/06/2014). A poor week for crude carriers with rates correcting downwards across the board. The BDTI Monday (23/05/2014) was at 636 points, a decrease of 15 points and the BCTI at 528, an increase of 4 points compared to previous Monday (02/06/2014).

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

The bad freight market together with the Posidonia event proved to be a bad combo for SnP activity, while Tankers were most popular for yet another week. On the tanker side, we had the sale of the “FORTUNE ELEPHANT” (317,174dwt-blt 11, S. Korea), which was picked up at a court sale by Greek buyers for a price of $ 77.5m. On the dry bulker side, we had the sale of the “EVER REGAL” (23,468dwt-blt 98, Philippines) which was picked up by European buyers, for a price of US$ 6.8m.

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

Slow activity continues to characterize the newbuilding market, alt-hough this last week we saw tankers and dry bulkers monopolizing the list of reported new orders after a long time. Greek owners continue to have a strong presence in the action that takes place, while their prefer-ence is currently in favour of tankers. The takeaway from this year’s Posidonia as far as the newbuilding market is concerned, is that with a little help from private equity funds, the market most probably moved ahead of itself in terms of new orders, which is pretty much common knowledge by now. Nevertheless, we wouldn't be surprised if a case of good freight markets during the second half of the year, brings another round of over-ordering. After all, in shipping as in most industries, memory most times proves to be short-term, especially when it comes to mistakes of the past being repeated. In terms of new orders, Norwe-gian owner, Frontline 2012, returned to New Times in China, to place an order of six firm Capesize vessels (180,000dwt), for a price of US $ 55.5m each and with delivery set between 2016 and 2017.

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

It was finally time for India to step back and allow the competition to grab some piece of the action. With the Indian Rupee settling lower to the US Dollar last week and the monsoon season approaching, activity in the country slowed down considerably compared to the past couple of months, as Indian breakers were facing both a drop in local steel prices as well as price levels that had possibly been inflated compared to mar-ket fundamentals. Prices for dry units softened in both India and Bangla-desh, while the rest of the board remained unchanged. Bangladesh has nonetheless managed to achieve most of the action that took place, partly due to the fact that their Indian competitors were absent from the market but mostly due to the fact that the recently announced budget brought no significant changes as far as the import of new ves-sels was concerned, which offered local breakers the reassurance need-ed to return to the bidding game. The budget in Pakistan was a differ-ence story though, with sentiment waning and action remaining non-existent, while at the same time China appears to have neither the in-tention nor the appetite to increase its bids. Average prices this week for wet tonnage were at around 325-500$/ldt and dry units received about 310-490$/ldt.

Weekly Market Report

Issue: Week 23| Tuesday 10th June 2014

© Intermodal Research 10/06/2014 2

2014 2013

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 34.5 8,634 32 5,493 57.2% 25,924 21,133

280k MEG-USG 24 5,823 24.5 6,685 -12.9% 17,714 7,132

260k WAF-USG 45 21,932 45 22,348 -1.9% 37,595 26,890

130k MED-MED 70 19,995 75 23,611 -15.3% 27,609 17,714

130k WAF-USAC 70 19,539 72.5 21,246 -8.0% 19,628 13,756

130k BSEA-MED 75 27,813 77.5 30,024 -7.4% 27,609 17,714

80k MEG-EAST 95 18,106 95 18,020 0.5% 16,458 11,945

80k MED-MED 75 8,680 82.5 12,682 -31.6% 26,736 13,622

80k UKC-UKC 90 5,007 92.5 5,869 -14.7% 33,502 18,604

70k CARIBS-USG 95 12,154 115 19,713 -38.3% 26,540 16,381

75k MEG-JAPAN 82.5 10,353 90 13,117 -21.1% 11,042 12,011

55k MEG-JAPAN 117 14,992 117 14,971 0.1% 10,902 12,117

37K UKC-USAC 100 4,435 100 4,309 2.9% 9,164 11,048

30K MED-MED 125 17,952 125 16,037 11.9% 17,666 17,645

55K UKC-USG 110 15,678 115 17,535 -10.6% 24,470 14,941

55K MED-USG 107.5 13,880 110 14,611 -5.0% 22,518 12,642

50k CARIBS-USAC 105 10,689 115 14,577 -26.7% 27,045 15,083

Vessel Routes

Week 23 Week 22$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Jun-14 May-14 ±% 2014 2013 2012

300KT DH 75.0 75.2 -0.3% 71.5 56.2 62.9

150KT DH 50.0 50.0 0.0% 48.4 40.1 44.9

110KT DH 38.0 38.0 0.0% 36.7 29.2 31.2

75KT DH 33.0 34.4 -4.1% 33.0 28.0 26.7

52KT DH 28.0 28.8 -2.8% 29.3 24.7 24.6

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

The crude carriers market remains under pressure, with rates correcting downwards across the board this past week. Charterers are holding firmly the upper hand as the available tonnage in most regions is more than enough to cover their needs. Rates for VLs are still hovering around year lows, while last week further rate softening was experienced across most key routes. The rate for the Eastbound route was the only positive excep-tion but the improvement merely brought any smiles back as the TCE is only just above OPEX levels. The rest of the month is expected to be fairly slow as well, with no substantial improvement as far as business ex-MEG is concerned.

After a few strong weeks, rates for Suezmaxes closed off on the red last Friday, with uninspiring activity impeding any further improvements. Busi-ness in the WAF region was the slowest it has been during the last month, taking a couple of WS points off rates, but the rest of June will most proba-bly turn out to be better for the segment compared to VLs, as the available Suezmax tonnage should not outweigh enquiries.

The Aframax market witnessed rates across most routes softening, with those for cross-Med and Caribs/USG voyages noting the biggest declines despite some decent volumes of activity, while cross-UKC voyages were also hurt due to oversupply of tonnage.

Sale & Purchase

In the VLCC sector, we had the sale of the “FORTUNE ELE-PHANT” (317,174dwt-blt 11, S. Korea), which was picked up at a court sale by Greek buyers for a price of $ 77.5m.

In the MR sector we had the sale of the “EVINOS” (49,997dwt-blt 13, S. Korea), which was picked up by Irish owner Ardmore, for a price of $ 36.0m.

Wet Market

Indicative Period Charters

- 7 mos - 'Ardmore Seafarer' 2004 45,744dwt

- - $ 14,000/day - Trafigura

- 1 year - 'BUNGA KASTURI TIGA' 2006 300,398dwt

- - $ 23,500/day - CPC

20

70

120

170

220

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 23 Week 22 ±% Diff 2014 2013

300k 1yr TC 23,750 23,750 0.0% 0 25,967 20,087

300k 3yr TC 27,750 27,750 0.0% 0 27,048 23,594

150k 1yr TC 19,250 19,250 0.0% 0 20,228 16,264

150k 3yr TC 23,250 23,250 0.0% 0 22,091 18,296

110k 1yr TC 15,500 15,500 0.0% 0 15,750 13,534

110k 3yr TC 17,250 17,250 0.0% 0 17,091 15,248

75k 1yr TC 15,250 15,250 0.0% 0 15,522 15,221

75k 3yr TC 16,500 16,500 0.0% 0 16,330 15,729

52k 1yr TC 14,750 14,750 0.0% 0 15,228 14,591

52k 3yr TC 15,500 15,500 0.0% 0 16,026 15,263

36k 1yr TC 14,500 14,500 0.0% 0 14,652 13,298

36k 3yr TC 15,500 15,500 0.0% 0 15,428 13,907

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

60

80

100

120

140

160

180

200

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 10/06/2014 3

0500

1,0001,5002,0002,5003,0003,5004,0004,500

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000$

/da

y

Average T/C Rates

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

170K 6mnt TC 26,000 25,750 1.0% 250 25,292 17,625

170K 1yr TC 24,500 25,000 -2.0% -500 26,037 15,959

170K 3yr TC 22,750 22,750 0.0% 0 23,950 16,599

76K 6mnt TC 11,875 12,125 -2.1% -250 14,792 12,224

76K 1yr TC 12,500 12,750 -2.0% -250 14,278 10,300

76K 3yr TC 14,125 14,375 -1.7% -250 14,420 10,317

55K 6mnt TC 11,500 12,000 -4.2% -500 13,341 11,565

55K 1yr TC 11,750 12,250 -4.1% -500 12,798 10,234

55K 3yr TC 12,500 12,500 0.0% 0 12,733 10,482

45k 6mnt TC 10,000 10,250 -2.4% -250 11,483 9,771

45k 1yr TC 10,250 10,750 -4.7% -500 10,993 8,852

45k 3yr TC 10,750 10,750 0.0% 0 10,993 9,237

30K 6mnt TC 9,500 9,500 0.0% 0 10,124 8,244

30K 1yr TC 9,750 9,750 0.0% 0 10,020 8,309

30K 3yr TC 10,250 10,250 0.0% 0 10,189 8,926

Han

dym

axH

and

ysiz

e

Period

2013

Pan

amax

Sup

ram

ax

Week

23

Week

22

Cap

esi

ze

2014$/day ±% Diff

Chartering

The Dry Bulk market closed off the week positively, on the back of firming

Capesize rates, while the market overall continues to face a very challeng-

ing environment with Panamaxes suffering the most. A comment that was

heard often during last week, was that on average the first half of this year

was better than the same period last year. Another Posidonia takeaway was

also the expectation that the same story of a strong second half will also be

repeated this year, which could well be the reason why second-hand prices

are still holding high compared to freight levels.

The Capesize segment noted the only positive movement last week, on the

back of increased enquiry, which initially kicked off in the Pacific. Iron ore

majors returned to action and pushed the rate for the West Australia/China

voyage higher, while it was the same case for the Tubarao/Qingdao route.

The Atlantic Cape also improved, with the shortening of lists helping freight

levels considerably as the week progressed.

The Panamax market had to face further challenges this past week, which

closed off with the BPI touching a new low for the year. There was talk of

some slightly better numbers for more forward dates for ex-USG grain car-

goes, while the North Pacific and Australian round voyages witnessed rates

collapsing.

Rates for the Atlantic Handy/Supra tonnage are still being denied any help

ex-USG, with limited fresh business being concluded in the region, while

rates for Handies remained stable despite some better activity witnessed

positionally in both basins.

Sale & Purchase

In the Handysize sector, we had the sale of the “UNIPLUS” (28,024dwt-blt

89, Japan), which was picked for a price of US$ 4.0m.

In the same sector we had the sale of the “EVER REGAL” (23,468dwt-blt 98,

Philippines) which was picked up by European buyers, for a price of US$

6.8m.

Jun-14 May-14 ±% 2014 2013 2012

180k 51.0 52.1 -2.1% 49.2 35.8 34.6

76K 26.5 26.8 -1.1% 27.0 21.3 22.7

56k 25.5 26.3 -3.0% 26.5 21.5 23.0

30K 20.5 20.5 0.0% 20.7 18.2 18.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 3 to 5 mos - 'CHANNEL NAVIGATOR' 1997 172,058dwt

- CJK 14/16 Jun - $ 20,000/day - Louis Dreyfus

- 12 mos - 'ECOPRIDE GO' 2013 81,963dwt

- Qingdao 8/10 Jun - $ 10,500/day - Priminds

Dry Market

Index $/day Index $/day Index Index

BDI 989 934 55 1,212 1,205

BCI 1,793 $13,370 1,395 $9,986 398 33.9% 1,979 2,106

BPI 727 $5,838 872 $6,993 -145 -16.5% 1,116 1,186

BSI 802 $8,389 830 $8,678 -28 -3.3% 1,022 983

BHSI 481 $7,135 485 $7,196 -4 -0.8% 615 562

30/05/2014

Baltic IndicesWeek 23

06/06/2014Week 22

Point

Diff

2014 2013$/day

±%

© Intermodal Research 10/06/2014 4

Secondhand Sales

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

HANDY UNIPLUS 28,024 1989IMABARI

IMABARI, JapanB&W Oct-14

4 X 30t

CRANES$ 4.0m undisclosed

HANDY EVER REGAL 23,468 1998TSUNEISHI HEAVY

CEBU, Phi l ippinesMAN-B&W Apr-18

4 X 30t

CRANES$ 6.8m European

Bulk Carriers

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

FEEDER LEO AUTHORITY 1,560 1997

IMABARI

MARUGAME,

Japan

B&W Nov-17 $ 4.5m Chinese

FEEDER DEVON STRAIT 1,118 2008 JINLING, China MAN-B&W Mar-182 X 45t

CRANESundisclosed undisclosed

Containers

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

VLCCFORTUNE

ELEPHANT317,174 2011

HYUNDAI SAMHO

HEAVY IN, S. KoreaWarts i la Jan-16 DH $ 77.5m Greek court sa le

AFRAFORWARD

BRIGHT115,577 2007

SASEBO SASEBO,

JapanMAN-B&W Jun-17 DH undisclosed

AFRA PACIFIC POPPY 104,621 2011SUMITOMO HEAVY

MARINE, JapanMAN-B&W Jun-11 DH undisclosed

MR EVINOS 49,997 2013STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W - DH $ 36.0m Irish (Ardmore)

MR EASTERN FORCE 48,056 2009 IWAGI, Japan MAN-B&W Jun-14 DH $ 22.6m Danish (Maersk)

MRATLANTIC

INNOVATOR47,472 2008 ONOMICHI, Japan MAN-B&W Aug-18 DH $ 23.0m

MRPACIFIC

INNOVATOR47,472 2008 ONOMICHI, Japan MAN-B&W Jul-18 DH $ 23.0m

PROD/

CHEMROYAL CRYSTAL 7 13,102 2007

21ST CENTURY

SHIPBUILD, S. KoreaMAN-B&W Mar-17 DH

PROD/

CHEMROYAL EMERALD 13,102 2006

21ST CENTURY

SHIPBUILD, S. KoreaMAN-B&W Jul-16 DH

PROD/

CHEMROYAL AQUA 13,072 2008

21ST CENTURY

SHIPBUILD, S. KoreaMAN-B&W May-18 DH

UK based

(Zodiac)

undisclosed

en-bloc

$ 39.0mSingaporean

Tankers

© Intermodal Research 10/06/2014 5

Slow activity continues to characterize the newbuilding market, although this last week we saw tankers and dry bulkers monopolizing the list of reported new orders after a long time. Greek owners continue to have a strong pres-ence in the action that takes place, while their preference is currently in fa-vour of tankers. The takeaway from this year’s Posidonia as far as the new-building market is concerned, is that with a little help from private equity funds, the market most probably moved ahead of itself in terms of new or-ders, which is pretty much common knowledge by now. Nevertheless, we wouldn't be surprised if a case of good freight markets during the second half of the year, brings another round of over-ordering. After all, in shipping as in most industries, memory most times proves to be short-term, especial-ly when it comes to mistakes of the past being repeated.

In terms of reported deals last week, Norwegian owner, Frontline 2012, re-turned to New Times in China, to place an order of six firm Capesize vessels (180,000dwt), for a price of US $ 55.5m each and with delivery set between 2016 and 2017.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

23

Week

22±% 2014 2013 2012

Capesize 180k 58.0 58.0 0.0% 56.3 49 47

Kamsarmax 82k 30.8 30.8 0.0% 30.5 27 28

Panamax 77k 29.5 29.5 0.0% 29.2 26 27

Supramax 58k 28.0 28.0 0.0% 27 25 25

Handysize 35k 23.5 23.5 0.0% 23 21 22

VLCC 300k 101.0 101.0 0.0% 98.8 91 96

Suezmax 160k 66.0 66.0 0.0% 64 56 58

Aframax 115k 55.0 55.0 0.0% 54 48 50

LR1 75k 46.5 46.5 0.0% 45.9 41 42

MR 52k 37.0 37.0 0.0% 36.8 34 34

LNG 150K 186.0 186.0 0.0% 185.6 185 186

LGC LPG 80k 80.0 80.0 0.0% 77.3 71 71

MGC LPG 52k 67.0 67.0 0.0% 65.8 63 62Gas

Bu

lke

rsTa

nke

rs

Vessel

Indicative Newbuilding Prices (million$)

10

30

50

70

90

110

mil

lion

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2 Tanker 318,000 dwt JMU, Japan 2017 Greek xs $ 100.0m

7 Tanker 50,300 dwt SPP, S. Korea 2015-2016 Greek (Ceres Shipping) undisclosed

3 Tanker 33,000 dwt Fukuoka, Japan 2016 Chinese (Sinochem) undisclosed chemical

1 Tanker 19,900 dwt Fukuoka, Japan 11/2015 Tarinus Line undisclosed chemical

1 Tanker 15,000 dwt 3 Maj, Croatia 2015 Swedish (Wisby Tankers) undisclosed asphalt/bitumen

6 Bulker 180,000 dwt New Times, China 2016-2017 Norwegian (Frontline 2012) $ 55.5m

4 Bulker 61,000 dwt Dalian Cosco, China 2016 Chinese (Fortune Ocean) $ 28.5m

Newbuilding Orders Size

© Intermodal Research 10/06/2014 6

It was finally time for India to step back and allow the competition to grab some piece of the action. With the Indian Rupee settling lower to the US Dollar last week and the monsoon season approaching, activity in the coun-try slowed down considerably compared to the past couple of months, as Indian breakers were facing both a drop in local steel prices as well as price levels that had possibly been inflated compared to market fundamentals. Prices for dry units softened in both India and Bangladesh, while the rest of the board remained unchanged. Bangladesh has nonetheless managed to achieve most of the action that took place, partly due to the fact that their Indian competitors were absent from the market but mostly due to the fact that the recently announced budget brought no significant changes as far as the import of new vessels was concerned, which offered local breakers the reassurance needed to return to the bidding game. The budget in Pakistan was a difference story though, with sentiment waning and action remaining non-existent, while at the same time China appears to have neither the in-tention nor the appetite to increase its bids. Average prices this week for wet tonnage were at around 325-500$/ldt and dry units received about 310-490$/ldt.

The highest prices amongst recently reported deals, was that paid by Indian breakers for the Container ‘MSC HINA’ (21,370dwt-10,665ldt-blt 84), which received a firm price of $ 502/ldt.

Demolition Market

Week

23

Week

22±% 2013 2012 2011

Bangladesh 480 480 0.0% 422 440 523

India 500 500 0.0% 426 445 511

Pakistan 470 470 0.0% 423 444 504

China 325 325 0.0% 365 384 451

Bangladesh 455 460 -1.1% 402 414 498

India 480 490 -2.0% 405 419 484

Pakistan 450 450 0.0% 401 416 477

China 310 310 0.0% 350 365 432

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

MSC HINA 21,370 10,665 1984WARNOWWERFT

WARNEMUEND,

Germany

CONT $ 502/Ldt Indian

ISA ACTIVE 21,289 5,277 1982SHIN YAMAMOTO

KOCHI, JapanBULKER $ 455/Ldt Bangladeshi

GLOBAL EMINENCE 6,962 2,576 1983TAIHEI HASHIHAMA,

JapanTANKER $ 470/Ldt Bangladeshi

TATARSTAN 1,961 2,242 1977GORKOGO

ZELENODOLSK,

Russia

FISHNG $ 400/Ldt Bangladeshi

GLENN BATAAN 2,990 1,298 1982FUKUOKA FUKUOKA,

JapanTANKER $ 442/Ldt Bangladeshi

Demolition Sales

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without mak-ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production 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 information 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 written authorization of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr

Analysts: Mr. George Lazaridis | g.lazaridis@intermodal.gr

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

Finance News

“Aurora LPG eyes IPO

Norwegian gas player Aurora LPG looks set to list in Oslo by the late summer the company has disclosed.

The shipowner, which already trades on Oslo’s over-the-counter (OTC) market, says its intention is to list on the Oslo Axess in August.

The Borge F Johansen-led company confirmed that it has already met the Exchange in an introductory meeting.

“We do not expect to launch an offering of shares in connection with the listing, thus no advisor has been appointed to this date,” it said.

News of the proposed listing came as the company confirmed it had raised NOK 300m ($50m) from a private placement of 6.4m shares at NOK 47 each.

Fearnley Securities, Pareto Securities and SEB have acted as joint lead managers and book runners for the fund raiser.

Aurora LPG said the gross proceeds will mainly be used to fund the equity portion of a second hand 2009-built VLGC.

The shipowner has ambitions to create a fleet of eight to 12 VLGCs within six to 12 months. It has re-cently taken delivery of two secondhand VLGCs.

The 82,000-cbm Mill Reef (renamed Aurora Leo) and Mill House (renamed Aurora Taurus, both built 2008) were acquired from Petredec for $75m each.” (Trade Winds)

Commodities & Ship Finance

6-Jun-14 5-Jun-14 4-Jun-14 3-Jun-14 2-Jun-14W-O-W

Change %

10year US Bond 2.600 2.580 2.610 2.590 2.530 5.7%

S&P 500 1,949.44 1,940.46 1,927.88 1,924.24 1,924.97 1.3%

Nasdaq 4,321.40 4,296.23 4,251.64 4,234.08 4,237.20 1.9%

Dow Jones 16,924.28 16,836.11 16,737.53 16,722.34 16,743.63 1.2%

FTSE 100 6,858.20 6,813.50 6,818.60 6,836.30 6,864.10 0.2%

FTSE All-Share UK 3,669.04 3,641.00 3,643.13 3,650.34 3,666.64 0.4%

CAC40 4,581.12 - 4,501.00 4,503.69 4,515.89 1.4%

Xetra Dax 9,987.19 - 9,926.67 9,919.74 9,950.12 0.4%

Nikkei 15,077.24 15,079.37 15,067.96 15,034.25 14,935.92 3.0%

Hang Seng 22,951.00 - 23,151.71 23,291.04 - -0.6%

DJ US Maritime 374.19 373.51 368.94 366.45 367.06 2.9%

$ / € 1.36 1.36 1.36 1.36 1.36 0.2%

$ / ₤ 1.68 1.68 1.68 1.67 1.67 0.4%

¥ / $ 102.44 102.59 102.62 102.39 102.14 0.7%

$ / NoK 0.17 0.17 0.17 0.17 0.17 0.2%

Yuan / $ 6.23 6.25 6.23 6.23 6.23 0.0%

Won / $ 1,020.15 1,020.77 1,024.23 1,023.36 1,023.16 -0.1%

$ INDEX 86.90 87.00 87.10 87.00 86.90 0.3%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,240

1,300

1,360

1,420

1,480

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

6-Jun-14 30-May-14W-O-W

Change %

Rotterdam 864.5 873.5 -1.0%

Houston 980.0 992.0 -1.2%

Singapore 882.0 900.0 -2.0%

Rotterdam 578.0 581.0 -0.5%

Houston 592.5 591.5 0.2%

Singapore 592.5 598.5 -1.0%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 06-Jun-14 30-May-14

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 10.52 10.13 3.8%

BALTIC TRADING NYSE USD 6.35 6.41 -0.9%

BOX SHIPS INC NYSE USD 1.51 1.52 -0.7%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 10.66 10.72 -0.6%

COSTAMARE INC NYSE USD 22.37 21.77 2.8%

DANAOS CORPORATION NYSE USD 5.98 5.95 0.5%

DIANA SHIPPING NYSE USD 11.46 10.90 5.1%

DRYSHIPS INC NASDAQ USD 3.16 3.01 5.0%

EAGLE BULK SHIPPING NASDAQ USD 3.35 3.33 0.6%

EUROSEAS LTD. NASDAQ USD 1.18 1.23 -4.1%

FREESEAS INC NASDAQ USD 0.90 1.12 -19.6%

GLOBUS MARITIME LIMITED NASDAQ USD 3.82 3.72 2.7%

GOLDENPORT HOLDINGS INC LONDON GBX 329.40 331.00 -0.5%

HELLENIC CARRIERS LIMITED LONDON GBX 41.54 42.47 -2.2%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.55 3.57 -0.6%

NAVIOS MARITIME HOLDINGS NYSE USD 9.45 9.05 4.4%

NAVIOS MARITIME PARTNERS LP NYSE USD 18.72 18.45 1.5%

NEWLEAD HOLDINGS LTD NASDAQ USD 0.66 1.38 -52.2%

PARAGON SHIPPING INC. NYSE USD 5.67 5.56 2.0%

SAFE BULKERS INC NYSE USD 8.60 8.10 6.2%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.40 1.30 7.7%

STAR BULK CARRIERS CORP NASDAQ USD 12.04 10.67 12.8%

STEALTHGAS INC NASDAQ USD 10.43 10.50 -0.7%

TSAKOS ENERGY NAVIGATION NYSE USD 7.23 7.18 0.7%

TOP SHIPS INC NASDAQ USD 1.85 3.62 -48.9%

Maritime Stock Data

© Intermodal Shipbrokers Co

8

10/06/2014

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