Broker’s insight by Panos Makrinos

Is demolion the only soluon for market recovery?

From the second half of 2008 there has been a significant plunge of freight

rates which for some market segments has persisted unl today. All pares

involved in the shipping industry connually voice that in order to deal with

the severe oversupply problem and improve freight rates once more is to

limit new building orders scrap older tonnage. For the later soluon this

would mean that all the early/mid 80’s vessels would head to scrapyards

even if they are in excellent condion and well maintained with trading cer-

ficates for several more years. The queson that arises here is whether this

common thinking is indeed correct and able itself to recover the current

uncertain market.

Starng from the current levels of demolion, we see that demo price levels

are dropping incrementally week by week and the main reason for this fall

has mainly been the weak demand of steel which will probably connue to

suffer as Europe slides back into recession. This week, Bangladesh was the

leader of all demo players around the world as most of the deals which re-

ported for demo went to Bangladeshi scrap buyers at very impressive num-

bers in comparison with the price levels offered by all other demo markets.

In terms of scrap prices, the most recent considerable deal that has been

achieved in the dry segment was the Ukrainian built OKEAN type ‘’GOOD

UNION’’ with lightship 13.630tns which fetched an unbelievable price at

region USD 493 per ton.

On the other hand, the remaining demo buyers have appeared for one more

week to have had a very conservave appete, with their poor performance

caused by the fact that they were not in a posion to submit offers at a9rac-

ve price levels. Moreover, it is said that there was a large number of rene-

goaons that have taken place recently. For the me being, all the cash

buyers are becoming a li9le skepcal and deciding to focus on the tonnage

they have already bought and sell off exisng units before proceeding with

new acquisions.

Demo prices overall remained at similar price levels as they were in the last

week, with wet tonnages to be around USD 425-490 per lightweight and dry

units remaining to about USD 410-470 per lightship.

Throughout 2011, we had connuously repeated that despite the very high

acvity reported in the demolion market during that year, oversupply sll

remained a serious headache for all ship owners creang uncertainty for the

near term prospects of the shipping industry. In addion, the first four

months of this year we noced a large number of vessels being beached,

however, freight rates are sll remaining at low levels and nothing remarka-

ble has changed. This result points to the fact that scrapping of vessels alone

is not enough to provide a balance in the charter market. We will also need

to see cancelaons of N/B orders increase within the coming months, as well

as a more moderate newbuilding ordering strategy by shipowners.

Chartering (Wet: Firm+ / Dry: Firm+ )

The Dry Bulk market connued to move forward this week without the

support of the Capesize market which is sll on a downward slide. Much

of the increase in the rest of the size segments is sll being supported by

the firm acvity witnessed in the Atlanc basin these past couple of

weeks. The BDI closed today (01/05/2012) at 1,152 points, 26 points up

compared to its closure on Monday (30/04/2012) and an increase of 36

points compared to the previous Tuesday’s levels (24/04/2012). There

seems to be a great deal of volality being observed in the larger crud

oil carriers, while at the same me product tankers connue to suffer

with further decreases in freight levels. The BDTI Thursday

(30/04/2012), was at 775, 34 points up and the BCTI at 627, a decrease

of 2 points compared to the previous Monday’s levels (23/04/2012).

Sale & Purchase (Wet: Stable- / Dry: So#er- )

Acvity seemed to have dropped this week in the Dry Bulk sector, while

we are sll seeing increased acvity in the small product tankers. On the

Tankers side, we saw the sale of the Aframax “Taiyoh III” (95,666dwt-blt

97 Japan) which was reportedly sold to Thai buyers, namely Nathalin for

region $ 9.5m. While on the dry bulker of interest was the sale of the

Capesize “Regena N” (180,277dwt-blt 06 Japan) which was reported

sold to the joint venture between Harita and Winning for a price of $

33.0m.

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

There have been further reports of new orders being placed this week,

as demand connues to improve compared the first quarter of the year.

There has been another wave of orders for product tankers, while at the

same me there are rumours of increased interest in the dry bulk sector

as well. What's more is that we connue to see acvity being reported

for gas carriers thanks to their more favourable charter market condi-

ons, providing shipbuilders especially in S. Korea with an opportunity

to reach much of their years new order targets. In terms of reported

deals this week, most notable was the reported order placed by the U.K.

based Gas operator, Navigator Gas for 2 firm plus six oponal Ethylene/

LPG carriers (22,000cbm) at China’s Jiangnan Shipyard for a reported

price of $ 49.0m each.

Demoli'on (Wet: Stable- / Dry: Stable-+ )

The Indian market lost further support this week as offered prices

dropped due to the decreased demand noted. Bangladeshi breakers sll

hold the lead in prices offered, while it seems as though Pakistan was

able to cover the gap caused by the soLening Indian market. With de-

mand now remaining fairly soL, while the supply of candidates conn-

ues to put considerable downward pressure on the market, we could

start to see prices decrease further over the coming weeks. This has not

ben the case for the Turkish market were we have seen a sudden rapid

increase in price levels, likely supported by the firm demand for scrap

steel. Prices overall remained stable, with wet tonnages nong levels of

around 425-490$/ldt and dry units holding at about 410-470$/ldt.

Weekly Market Report

Week 17|Tuesday 1st May 2012

© Intermodal Research 02/05/2012 2

6080

100120140160180200220240260

WS p

oin

ts

CLEAN - WS RATESTC2 TC4 TC6 TC1

20

40

60

80

100

120

140

160

WS p

oin

ts

DIRTY - WS RATESTD3 TD5 TD8 TD4

Apr-12 Mar-12 ±% 2012 2011 2010

300KT DH 64.5 63.0 2.4% 64.2 77.6 87.2

150KT DH 44.9 44.5 0.8% 46.2 54.4 62.6

105KT DH 30.0 32.0 -6.3% 33.5 39.1 44.7

70KT DH 26.0 27.6 -5.8% 28.8 35.2 38.8

45KT DH 25.4 25.4 0.0% 25.8 28.4 26.5

Aframax

Panamax

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Week 17 Week 16 ±% Diff 2012 2011

300k 1yr TC 23,500 23,500 0.0% 0 21,015 25,197

300k 3yr TC 29,000 29,000 0.0% 0 26,774 31,681

150k 1yr TC 17,500 17,500 0.0% 0 16,603 19,837

150k 3yr TC 22,500 22,500 0.0% 0 20,376 23,830

105k 1yr TC 14,250 14,250 0.0% 0 13,985 15,707

105k 3yr TC 16,750 16,750 0.0% 0 16,229 18,335

70k 1yr TC 13,000 13,000 0.0% 0 13,132 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,391 16,263

45k 1yr TC 14,750 14,750 0.0% 0 14,441 13,918

45k 3yr TC 15,250 15,250 0.0% 0 14,891 14,738

36k 1yr TC 13,000 13,000 0.0% 0 12,529 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,229 13,412

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

2012 2011

WS

points$/day

WS

points$/day $/day $/day

265k AG-JAPAN 63 43,774 50 22,663 25% 34,268 18,217

280k AG-USG 43 17,145 38 9,024 12% 6,696 2,504

260k WAF-USG 60 39,371 58 35,491 4% 43,546 25,714

130k MED-MED 68 14,059 68 14,537 0% 28,852 25,125

130k WAF-USAC 68 9,952 65 8,216 4% 17,848 13,373

130k AG-CHINA 78 18,981 80 20,728 -3% 22,696 14,815

80k AG-EAST 98 11,984 98 11,813 0% 13,578 12,726

80k MED-MED 98 17,215 95 16,263 3% 15,014 13,577

80k UKC-UKC 95 19,218 95 19,486 0% 19,498 18,604

70k CARIBS-USG 100 8,458 95 6,385 5% 13,535 8,240

75k AG-JAPAN 95 7,325 95 7,289 0% 3,805 10,467

55k AG-JAPAN 125 11,460 125 11,431 0% 4,152 7,768

37K UKC-USAC 133 7,229 138 8,512 -4% 11,615 11,022

30K MED-MED 140 14,306 133 12,322 6% 17,678 18,458

55K UKC-USG 138 19,444 128 15,931 8% 14,169 11,266

55K MED-USG 138 17,606 128 14,256 8% 11,890 9,676

50k CARIBS-USAC 140 16,297 125 11,590 12% 13,241 10,700

Spot Rates

Vessel Routes

Week 17 Week 16

±%

Dir

tyA

fra

ma

xC

lea

nV

LCC

Sue

zmax

Chartering

There has been a great deal of volality noted in the VLCC market these

past weeks, with the latest week nong a complete reversal of the previous

downward move. Freight rates started to climb again as tonnage lists were

kept to a minimum all around, while owners seemed to be more aggressive

in their strategy towards charterers. There may have been a very posive

outcome this week from the side of the owners, however it will likely prove

difficult to hold in the long term with the smaller Suezmax market unable to

provide sufficient support and the summer period, typically faced with

slower acvity quickly approaching.

The Suezmax sector connued to face difficulty in manifesng any improve-

ment this week despite the higher acvity noted towards the end of the

week. The Black Sea/Med region seemed to have held on par with the pre-

vious week’s closing. Things seemed slightly be9er in the WAF market were

we started to see an improving senment filter through, producing a slight

improvement in rates achieved there by owners.

The Black Sea/ Med region seemed to be slightly be9er for Aframaxes this

week, were the posive momentum helped push rates further up. Posion

lists are sll fairly ght, possibly providing a foundaon for further increases

in rates. The rest of the regions showed minimal change, with the excepon

of the Caribs market were we started to see a recovery in rates.

Sale & Purchase

WE connue to see a lot of acvity in the small product and chemical tanker

as well as the MR range, while there was a slight firming of interest this

week in the larger Aframaxes. At the same me there connues to be no

reported acvity for the large crude oil ranges.

Of interest was the sale of the Aframax “Taiyoh III” (95,666dwt-blt 97 Ja-

pan) which was reportedly sold to Thai buyers, namely Nathalin for region $

9.5m.

In the MR range, Spanish built “Sinbad 1786” (27,892dwt-blt 95 Spain) has

been reportedly sold for a price of $ 6.8m.

Wet Market

Indicative Period Charters

- 12+12 mos - 'Kristen Maersk' 2010 40,000dwt

- - $ 12,500/day - CSSSA

- 12+12 mos - 'Cielo Di Roma' 2003 37,000dwt

- - rnr - CSSSA

© Intermodal Research 02/05/2012 3

Index $/day Index $/day Index Index

BDI 1,156 1,067 8.3% 89 899 1,549

BCI 1,499 $6,478 1,533 $6,598 -2.2% -34 1,571 2,237

BPI 1,738 $13,877 1,487 $11,882 16.9% 251 1,065 1,749

BSI 1,102 $11,526 1,020 $10,667 8.0% 82 868 1,377

BHSI 589 $8,873 562 $8,482 4.8% 27 485 718

20/04/12

Baltic IndicesWeek 17

27/04/12

Week 16

±%2012 2011Point

Diff

0

1,000

2,000

3,000

4,000

5,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

170K 6mnt TC 13,750 14,250 -4% -500 14,296 18,474

170K 1yr TC 15,000 15,500 -3% -500 16,171 17,138

170K 3yr TC 16,000 16,000 0% 0 16,950 17,599

70K 6mnt TC 14,500 14,500 0% 0 12,825 17,238

70K 1yr TC 11,750 11,875 -1% -125 11,266 14,863

70K 3yr TC 12,250 12,250 0% 0 11,979 14,500

52K 6mnt TC 13,250 12,750 4% 500 11,553 15,587

52K 1yr TC 11,875 11,875 0% 0 11,171 14,308

52K 3yr TC 12,500 12,500 0% 0 12,171 14,046

45k 6mnt TC 11,250 11,000 2% 250 9,700 13,416

45k 1yr TC 10,250 10,250 0% 0 9,347 12,450

45k 3yr TC 10,500 10,500 0% 0 10,215 12,403

30K 6mnt TC 9,250 9,250 0% 0 8,251 11,712

30K 1yr TC 9,365 9,365 0% 0 8,559 11,787

30K 3yr TC 10,000 10,000 0% 0 10,141 12,044

Ha

nd

ym

ax

Ha

nd

ysi

ze

Period

2011

Pa

nam

axSu

pra

ma

x

Week

17

Week

16

Cap

esi

ze

2012$/day ±% Diff

Chartering

The downward turn connues in the Capesize market as we have yet to see

the iron ore trade revitalise in order to produce the much needed demand

to support the market. Tonnage lists have increased all around once again

and it is likely that we will see condions worsen further over the coming

days as there has been no indicaon of a recovery of demand from China or

Europe. It seems as though we will have to wait unl prices for iron ore

drop further before we are able to starng seeing movements in shipments

and an appete for increasing stockpiles once again.

The Panamaxes have taken full advantage of the firm grain acvity noted in

the Atlanc basin again this week. Rates have rapidly increased while we

have seen a number of ballasters from the East starng to arrive to cover

the excess demand in the area. Despite this, with much of the East being on

holydays due to the labour day fesvies, support will likely be lost in the

Pacific basin and we could see this posive senment cool-off for the me

being. ECSA is expected to connue to provide a steady inflow of fresh

inquiries which could lead to a recovery towards the end of this week.

Similarly Supras and Handies have been benefing from both the firm grain

acvity noted in the Atlanc as well as the increased inquiries emerging due

to the imminent ban of nickel ore exports from Indonesia. There has been

considerable stockpiling taking place especially from China, while we have

seen an increased level of shipments being provided by the Philippines.

However, being an only temporary increase in acvity, we will likely see

things turn around once the export ban from Indonesia comes into force.

Sale & Purchase

Things seemed to be a lot more quiet this week in the dry bulk sector com-

pared to the extra acvity witnessed during and just aLer the Easter Holi-

days.

Notable was the sale of the Capesize “Regena N” (180,277dwt-blt 06 Japan)

which was reported sold to the joint venture between Harita and Winning

for a price of $ 33.0m.

In the Handysize segment, the “Atlanc Promise” (27,652dwt-blt 86 Japan)

has been reportedly commi9ed to Chinese buyers for a price of $ 3.7m.

0

10,000

20,000

30,000

40,000

50,000

$/d

ay

Average T/C Rates

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

Apr-12 Mar-12 ±% 2012 2011 2010

170k 35.0 36.0 -2.8% 36.7 43.5 57.4

75K 22.8 24.4 -6.8% 25.3 31.3 39.0

52k 21.6 21.7 -0.3% 22.8 25.6 30.2

29K 18.0 19.2 -6.3% 20.6 23.5 26.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Dry Market

Indicative Period Charters

- 12 mos - 'Iolcos Unity' 2006 74,476dwt

- dely Jebel Ali 1/5 May - $ 11,800/day - Bunge

- 3/5 mos - 'Egret Bulker' 2010 57,809dwt

- dely Continent 15/20 May - $ 16,000/day - D'Amico

© Intermodal Research 02/05/2012 4

Secondhand Sales

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

CAPE REGENA N 180,277 2006IMABARI SAIJO,

JapanMAN-B&W May-16 $ 33.0m

Indones ian/

Chinese (Hari ta-

Winning JV)

CAPE CAPE AMERICA 149,515 1991CHINA SHIPBLDG,

Chinese Ta ipeiB&W Feb-16 $ 8.5m

Indones ian/

Chinese (Hari ta-

Winning JV)

HANDYATLANTIC

PROMISE27,652 1986

MITSUBISHI

NAGASAKI, JapanMitsubishi May-15

4 X 25t

CRANES$ 3.7m Chinese committed

HANDY SIAM SAPPHIRE 27,652 1986MITSUBISHI

NAGASAKI, JapanMitsubishi Mar-16

4 X 25t

CRANES$ 3.1m undisclosed

HANDY AYYILDIZ 7 12,235 2000SHIN KOCHI,

JapanMitsubishi Mar-15

3 X 30t

CRANES$ 6.0m undisclosed

HANDYKOPALNIA

RYDULTOWY11,702 1990

A WARSKIEGO

STOCZNIA, PolandB&W Jun-15

4X16t CR,

1X12t CR$ 2.8m undisclosed

Bulk Carriers

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

ASIAN ROSALIE 8,905 1997SHIN KOCHI,

JapanB&W Aug-12

2X30t CR,

1X25t CR$ 3.5m Indones ian

PERGAMON 5,105 1985

SMIT E.J. SCHEEPS

WEST,

Netherlands

Warts i la May-152 X 15t

CRANES$ 1.5m Egyptian

MPP/General Cargo

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

AFRA TAIYOH II I 95,666 1997IMABARI

MARUGAME, JapanSulzer Jun-12 DH $ 9.5m Thai (Natha l in) for s torage

MR SINBAD 1786 27,892 1995 AESA SEVILLA, Spa in B&W Mar-15 DH $ 6.8m undisclosed

PROD/

CHEMGLOBAL THEMIS 11,394 1999 HIGAKI, Japan B&W Sep-14 DH $ 6.8m S. Korean Epoxy coated

PROD/

CHEMPIONEER SPIRIT 8,735 1997

USUKI SHIPYARD,

JapanMitsubishi Dec-12 DH $ 6.0m Far Eas tern StSt tanks

PROD/

CHEMIONIAN 5,495 2008

CELIKTEKNE TUZLA,

TurkeyMAN-B&W Jun-13 DH $ 9.0m undisclosed

BUNKER

INGSWEET MIRI 1,837 1990

HONG LEONG-

LURSSEN SHY,

Malays ia

MWM Dec-15 SH $ 0.7m Dubai based Epoxy coated

Tankers

© Intermodal Research 02/05/2012 5

Secondhand Sales

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

RED DRAGON 3,983 1989KYOKUYO ZOSEN

CHOFU, JapanMitsubi shi Feb-14 3,514 $ 4.0m

Azerba i jani

(Caspian Shpg)

Gas/LPG/LNG

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

AHTSNORTHERN

CRUSADER2,783 1992

UDL ENGINEERING

PTE LT, SingaporeWarts i l a 15,400 Jun-12 undisclosed

U.A.E. based

(FEMCO)

PSVBORCOS

TASNEEM 11,473 2002

YUEXIN

SHIPBUILDING CO,

China

Caterpi l la r 4,258 Dec-12 $ 6.8mRuss ian

(Marcap)

TUG POSH HARMONY 188 2009JIANGSU WUXI

SHIPYARD, ChinaNi igata 4,400 Aug-14 undisclosed

TUG POSH HAZEL 182 2009JIANGSU WUXI

SHIPYARD, ChinaNi igata 4,400 Aug-14 undisclosed

Offshore

Malays ian

© Intermodal Research 02/05/2012 6

Week

17

Week

16±% 2012 2011 2010

Bangladesh 490 490 0.0% 487 523 422

India 475 480 -1.0% 491 511 427

Pakistan 480 475 1.1% 489 504 425

China 425 425 0.0% 434 451 383

Bangladesh 470 465 1.1% 461 498 375

India 450 455 -1.1% 464 484 394

Pakistan 455 450 1.1% 461 477 388

China 410 410 0.0% 417 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

350

400

450

500

550

600

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

350

400

450

500

550

600

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

The Indian market lost further support this week as offered prices dropped

due to the decreased demand noted. Bangladeshi breakers sll hold the lead

in prices offered, while it seems as though Pakistan was able to cover the gap

caused by the soLening Indian market. With demand now remaining fairly

soL, while the supply of candidates connues to put considerable downward

pressure on the market, we could start to see prices decrease further over

the coming weeks. This has not ben the case for the Turkish market were we

have seen a sudden rapid increase in price levels, likely supported by the firm

demand for scrap steel. Prices overall remained stable, with wet tonnages

nong levels of around 425-490$/ldt and dry units holding at about 410-470

$/ldt.

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

er ship ‘Bunga Terasek’ (20,000dwt-7,274ldt-blt 91) which reportedly went

for a firm price of $ 510/Ldt.

Demoli'on Market

Name Size Ldt Built Yard Type $/ldt Breakers Comments

HANJIN DAMPIER 207,346 25,812 1989 HYUNDAI HI, S.Korea BULKER $ 490/Ldt undisclosed

KATSURAGI MARU 188,001 23,800 1986 SUMITOMO, Japan BULKER $ 490/Ldt Bangladeshi

BLUEFIN 84,040 14,830 1989 B&W, Denmark TANKER $ 507/Ldt Pakistani

MARANATA 65,617 12,073 1982 HASHIHAMA, Japan BULKER $ 424/Ldt Chinese

MSC CLAUDIA 59,283 14,466 1989 IHI - KURE, Japan CONT $ 482/Ldt Indian

PANAMAX STRENGTH 58,074 - 1983 NAMURA, Japan BULKER $ 475/Ldt Indian

GOOD UNION 52,370 13,420 1994 OKEAN, Ukraine BULKER $ 495/Ldt Bangladeshi

BOW PEACE 45,655 12,199 1987 HYUNDAI HI, S.Korea TANKER $ 535/Ldt Indianincluding 265 tonnes StSt on

board

MSC TINA 45,643 150,000 1986 TSUNEISHI, Japan CONT $ 487/Ldt Indian

GUO SHUN 26,874 6,617 1977 NAMURA, Japan BULKER $ 417/Ldt Chinese

SIBONEY BELLE 17,322 4,145 1985 IHI, Japan GC $ 493/Ldt Bangladeshi including 250T bunker ROB

ATLANTIC SPIRIT 16,165 13,134 1987 SUMITOMO, Japan RORO $ 494/Ldt Indian Green Recycling

GREAT PRIDE 11,998 3,634 1982TAIHEI AKITSU,

JapanCON $ 482/Ldt Bangladeshi

ORIENT PACIFIC 11,381 3,679 1976 IMABARI, Japan GC $ 405/Ldt Chinese

CENTAURUS 9,867 5,700 1989 AESA SEVILLA, Spain REEFER $ 412/Ldt Chinese

STELLAR PACIFIC 9,834 3,632 1984MIE YOKKAICHI,

JapanCONT $ 482/Ldt Bangladeshi

SEA WIND 8,749 3,550 1986 BRAILA, Romania GC $ 477/Ldt Indian

PLUTO 6,536 4,161 1988 DONGHAE, S. Korea REEFER $ 447/Ldt Indian

MARSAS 5,010 2,303 1989 KITANIHON, Japan REEFER $ 440/Ldt Indian

Demolition Sales

© Intermodal Research 02/05/2012 7

Week

17

Week

16±% 2012 2011 2010

Capesize 170k 46.0 46.0 0.0% 46 53 58

Panamax 75k 27.0 27.0 0.0% 27 33 35

Supramax 57k 25.5 25.5 0.0% 25 30 31

Handysize 30k 21.8 21.8 0.0% 22 25 27

VLCC 300k 96.0 96.0 0.0% 96 102 104

Suezmax 150k 58.0 58.0 0.0% 58 64 66

Aframax 110k 50.0 50.0 0.0% 50 54 55

LR1 70k 42.0 42.0 0.0% 42 45 46

MR 47k 33.5 33.0 1.5% 33 36 36

LPG M3 80k 71.0 71.0 0.0% 70 73 72

LPG M3 52k 62.0 62.0 0.0% 61 64 65

LPG M3 23k 44.0 44.0 0.0% 45 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nke

rs

There have been further reports of new orders being placed this week, as

demand connues to improve compared the first quarter of the year. There

has been another wave of orders for product tankers, while at the same me

there are rumours of increased interest in the dry bulk sector as well. What's

more is that we connue to see acvity being reported for gas carriers

thanks to their more favourable charter market condions, providing ship-

builders especially in S. Korea with an opportunity to reach much of their

years new order targets.

Worth menoning this week is the order placed by the U.K. based Gas opera-

tor, Navigator Gas for 2 firm plus six oponal Ethylene/LPG carriers

(22,000cbm) at China’s Jiangnan Shipyard for a reported price of $ 49.0m

each.

10

20

30

40

50

60

70m

illion $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

mil

lion $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

4+2+2 Tanker 51,000 dwt STX Dalian, China 2013-2014 Cypriot (SeaTankers) undisclosed

2+2 Tanker 49,600 dwt STX, S.Korea 04-05/2013 US based (Alterna Capital) undisclosed

2+2 Bulker 82,000 dwt Jinling, China 2014 Turkish (Densay) $ 27.0m incl. financing

2+6 Gas 22,000 cbm Jiangnan SY, China 2014 UK based (Navigator Gas) $ 49.0m Ethylene/LPG

2+4 Gas 22,000 cbm STX, S.Korea 2013-2014 Chilean (Ultragas) $ 42.0m LPG

1 Offshore 59,000 gt Samsung, S.Korea 04/2014 Norwegian (Seadri ll ) $ 600.0m Drillship

Newbuilding Orders

Size

The informaon contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informaon to be factual and reliable without mak-

ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the producon 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 informaon 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 wri9en authorizaon of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuaons Department | Mr George Lazaridis

E-mail: research@intermodal.gr

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

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

1,600

1,620

1,640

1,660

1,680

1,700

90

100

110

120

130

140

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

27-Apr-12 20-Apr-12W-O-W

Change %

Rotterdam 1,010.0 996.0 1.4%

Houston 1,030.0 1,032.5 -0.2%

Singapore 983.0 985.0 -0.2%

Rotterdam 694.0 685.5 1.2%

Houston 703.0 702.5 0.1%

Singapore 716.5 714.5 0.3%

Rotterdam 717.5 713.5 0.6%

Houston 703.0 732.5 -4.0%

Singapore 728.5 725.5 0.4%

Bunker Prices

MD

O3

80

cst

18

0cs

t

World Economy News

China’s manufacturing expanded at the fastest pace in a year, reducing pres-

sure on policy makers to open the taps on credit in the world’s second-largest

economy. The Purchasing Managers’ Index rose to 53.3 in April from 53.1 in

March, China’s stascs bureau and logiscs federaon said in a statement

yesterday. That’s the fiLh straight reading above the 50 level dividing expan-

sion from contracon and compares with the 53.6 median forecast in a

Bloomberg News survey of 27 economists. (Bloomberg)

Energy & Commodi'es

The cost of thermal coal in Asia, the biggest consumer of the commodity used

to firepower staons, is flirng with the key $100 a tonne level for the first

me in 18 months as supply connues to flood the market. US thermal coal

producers have been shipping unusually high amounts of the commodity into

the Asia-Pacific and Atlanc markets as domesc consumpon has fallen due

to increased compeon from cheaper US natural gas. (Financial Times)

Finance News

The Bank of China has introduced a tempng bargain

for ship financing, all in support of China’s ailing ship-

yard industry.

The state-owned bank is now offering yuan-

denominated loans from its Hong Kong unit for ship-

owners that want to build in Chinese yards. The move

is very much in line with the fast acceleraon of off-

shore yuan trading, mostly through Hong Kong, in the

past two years.

Offshore trading in the currency in Hong Kong began

in 2007, but it began taking off in 2011, with the

growth of yuan deposits in Hong Kong and investors

buying into yuan appreciaon through investment in

so-called dim sum bonds. The frenzy has ebbed a bit

and interest rates on offshore yuan have risen, and

the offshore market is growing and maturing.

However, for shipowners that want to take the bait

to build in China’s yards, the offer seems a9racve.

China eased rules over repatriaon of yuan to China

in the second half of last year. According to the Bank

of China, shipyards in the People’s Republic can offer

up to a 5% discount off of vessel prices for payment

in yuan. (Lloyds List)

CompanyStock

ExchangeCurr. 27-Apr-12 20-Apr-12

W-O-W

Change %Max 17wk Min 17wk

AEGEAN MARINE PETROL NTWK NYSE USD 7.31 7.45 -1.9% 7.31 7.16

BALTIC TRADING NYSE USD 4.77 4.64 2.8% 4.77 4.40

BOX SHIPS INC NYSE USD 8.84 8.71 1.5% 8.86 8.67

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 8.62 8.44 2.1% 8.64 8.38

COSTAMARE INC NYSE USD 14.07 14.15 -0.6% 14.14 13.93

DANAOS CORPORATION NYSE USD 3.69 3.90 -5.4% 3.79 3.69

DIANA SHIPPING NYSE USD 7.98 7.98 0.0% 7.98 7.86

DRYSHIPS INC NASDAQ USD 3.22 3.16 1.9% 3.26 3.17

EAGLE BULK SHIPPING NASDAQ USD 1.73 1.78 -2.8% 1.88 1.73

EUROSEAS LTD. NASDAQ USD 1.86 1.89 -1.6% 1.91 1.85

EXCEL MARITIME CARRIERS NYSE USD 1.74 1.75 -0.6% 1.75 1.69

FREESEAS INC NASDAQ USD 1.23 1.39 -11.5% 1.30 1.22

GENCO SHIPPING NYSE USD 5.45 5.51 -1.1% 5.45 5.31

GLOBUS MARITIME LIMITED NASDAQ USD 5.10 4.70 8.5% 5.10 4.58

GOLDENPORT HOLDINGS INC LONDON GBX 85.75 86.75 -1.2% 85.75 84.00

HELLENIC CARRIERS LIMITED LONDON GBX 36.10 37.00 -2.4% 39.50 36.10

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.00 3.10 -3.2% 3.00 2.98

NAVIOS MARITIME HOLDINGS NYSE USD 3.83 3.84 -0.3% 3.89 3.80

NAVIOS MARITIME PARTNERS LP NYSE USD 16.12 15.53 3.8% 16.12 15.34

NEWLEAD HOLDINGS LTD NASDAQ USD 3.11 3.11 0.0% 3.36 3.07

OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.37 0.40 -7.5% 0.38 0.37

PARAGON SHIPPING INC. NYSE USD 0.73 0.73 0.0% 0.73 0.71

SAFE BULKERS INC NYSE USD 6.68 6.44 3.7% 6.68 6.37

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 3.50 3.81 -8.1% 3.50 3.25

STAR BULK CARRIERS CORP NASDAQ USD 0.99 0.94 5.3% 1.00 0.94

STEALTHGAS INC NASDAQ USD 6.40 6.15 4.1% 6.47 6.25

TSAKOS ENERGY NAVIGATION NYSE USD 6.36 6.38 -0.3% 6.45 6.36

TOP SHIPS INC NASDAQ USD 2.07 2.16 -4.2% 2.15 2.07

Maritime Stock Data

27-Apr-12 26-Apr-12 25-Apr-12 24-Apr-12 23-Apr-12W-O-W

Change %

10year US Bond 1.930 1.960 1.980 1.960 1.930 -2.0%

S&P 500 1,403.36 1,399.98 1,390.69 1,371.97 1,366.94 1.8%

Nasdaq 3,069.20 3,050.61 3,029.63 2,961.60 2,970.45 2.3%

Dow Jones 13,228.31 13,204.62 13,090.72 13,001.56 12,927.17 1.5%

FTSE 100 5,777.11 5,748.72 5,718.89 5,709.49 5,665.57 0.1%

FTSE All-Share UK 3,003.97 2,987.03 2,973.03 2,966.39 2,944.06 0.1%

CAC40 3,266.27 3,229.32 3,233.46 3,169.32 3,098.37 2.4%

Xetra Dax 6,801.32 6,739.90 6,704.50 6,590.41 6,523.00 0.8%

Nikkei 9,520.89 9,561.83 9,561.01 9,468.04 9,542.17 -0.4%

Hang Seng 20,741.45 20,809.71 20,646.29 20,677.16 20,624.39 -1.3%

Dow Jones 238.65 237.04 231.87 227.50 227.95 3.6%

$ / € 1.32 1.32 1.32 1.32 1.31 0.3%

$ / ₤ 1.62 1.62 1.61 1.61 1.61 0.7%

₤ / € 0.82 0.82 0.82 0.82 0.82 -0.4%

¥ / $ 80.69 80.94 81.29 81.20 81.11 -1.3%

$ / Au$ 1.04 1.04 1.03 1.03 1.03 0.7%

$ / NoK 0.17 0.17 0.17 0.17 0.17 -0.2%

$ / SFr 0.91 0.91 0.91 0.91 0.92 -0.3%

Yuan / $ 6.29 6.29 6.31 6.30 6.30 -0.2%

Won / $ 1,133.28 1,135.94 1,140.89 1,140.06 1,141.89 -0.5%

$ INDEX 79.50 79.70 80.10 80.00 80.30 -0.9%

Oil WTI $ 104.90 104.60 104.10 103.60 103.10 1.0%

Oil Brent $ 119.80 119.90 119.10 118.20 118.70 0.8%

Gold $ 1,657.80 1,658.50 1,636.50 1,638.10 1,642.50 0.9%

Market Data

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Commodi'es & Financials