Market insight By George Dermatis

SnP Broker

A new year has dawned upon us and it sure promises to be an exciting one which makes it practically impossible to resist the challenge of making a forecast –especially when asked to do the first insight of the year. And given the range of variables ahead, let make it a bit harder; let’s take a closer look on the DRY sector which remains at the forefront of volatility and the inherent liquidity of assets creates paradoxical examples faster than we can justify why it happened.

Many were anticipating a sluggish start to the year due to a strong Q4, markets taking a step back as they digest Trump taking over on 20Jan17 and of course the “inevitable seasonal lullaby” caused by the upcoming Chinese New year -28th January. However, activity levels and appetite for new business thus far point to a different direction. Sentiment remains strongly positive and literature around a much healthier 2017 is already stacking up. Negative fleet growth, lower than expected actual orderbook, higher commodity prices, focus on higher infrastructure spending globally and in-creasing pressure on older tonnage through a tighter regulatory framework are be-coming the flavor of the month and it’s becoming impossible to spot even ONE person that believes that 2017 will be similar –let alone worse- than 2016. Yes, sentiment plays a huge role but before talking about a self-fulfilling prophecy have we really sailed away from Scylla and Charybdis?

With Dow Jones, Nasdaq and other indices worldwide trading at historical highs, it is rather worrisome that Bankers observe such procrastination from investors towards new offerings as well as increasing criticism over the production potential of existing stocks. Most pundits believe that the commodity and energy post-election rally to be largely overvalued and we could soon see its flipside. Continuous delays on the Basel III implementation schedule seem to be short-term “wins” for the banking system but, truth be told, access to finance is not going to change until we see the new system being in place.

2016 was a record-setting year in the post-Lehman year in terms of sales transacted as well as asset value appreciations across all sizes but on the contrary demo activity –especially in the second half of 2016- dropped considerably and, god forbid, if deliv-eries-demolition balance looks as bad as the graph below, then we might reach a new dead-end. If you add to the equation a rising appetite and itchy fingers lining up for newbuilding orders due to low prices and Tier II regulations, it makes for an explosive “cocktail”.

Finally, don’t forget that when it comes to dry bulk Shipping in the new millennium, the determining factor was, is and will be China and they have two important mile-stones coming up -ahead of the implementation of its newly voted environmental tax law. Firstly, the timeline and extent of adopting to Basel III regulations and secondly, the 19th National Congress of the Communist Party of China will be held in Beijing, China in the autumn of 2017. The new 5-year-plan is the focal point of the Chinese economy and hopefully the trigger event for a truly happy year.

All in all, the industry has certainly found a footing BUT we need to remain rational, stay the course of recovery and manage expectations based on the fundamentals that have brought us to the present.

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

On the back off unexpectedly strong Capesize performance, the Dry Bulk market managed to move slightly up during the first week of the year. The BDI closed today (10/01/2017) at 926 points, down by 23 points compared to yesterday’s levels (09/01/2017) and decreased by 27 points when compared to previous Tuesday’s closing (03/01/2017). Rates in the crude carriers market witnessed pressure positionally last week and moved below the end of year highs as a result. The BDTI closed today (10/01/2017) at 1053, decreased by 35 points and the BCTI at 775, a decrease of 92 points compared to prior Tuesday’s (03/01/2017) levels.

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

End of year holidays did not weigh down on SnP activity, with Buyers across both the tanker and dry bulk second-hand markets remaining particularly active as 2017 kicked off. On the tanker side In the Suezmax sector we had the sale of the “SIFNOS” (150,875dwt-blt 99, Japan), which was sold to undisclosed buyers, for a price in the region of $12.5m. On the dry bulker side, In the Handysize sector we had the sale of the “BBC PLUTO” (37,495dwt-blt 10, China), which was sold to North European buyers, for a price in the region of $9.5m.

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

With the end of 2017 marking one of the worst years for the shipbuild-ing industry, there is little - if any - hope that a substantial improvement in contracting volumes could be witnessed in 2017. During last year newbuilding activity was reduced by more than 83% in both dry bulkers and tankers compared to 2015 and even though it is hard for this decel-eration in ordering to continue at the same pace this year, reasons why a substantial improvement in ordering could be taking place in the next twelve months are also hard to find. Given that tanker rates enjoyed overall healthy rates last year and that the dry bulk market is nowhere close to such levels yet, despite having successfully rebounded from those haunting 2016 lows, we expect tanker ordering to once again witness higher ordering volumes compared to dry bulk contracting, with recently reported newbuilding activity being evidence of this trend. In terms of recently reported deals, Norwegian owner, Ship Finance Inter-national, placed an order for two firm and two optional Suezmaxes (114,000dwt) at Daehan, S. Korea for a price in the region of $44.5m and delivery set in 2018.

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

The demolition market has witnessed a strong end to the year, with a number of high priced sales taking place in the Indian subcontinent, boosting sentiment and allowing for an equally strong market during the first week of 2017. The strong comeback of Indian buyers during the past weeks of 2016 has pushed prices across the board up as a result. The continuous strengthening in Chinese scrap steel market has addi-tionally supported momentum and despite the slowdown the market there is now witnessing ahead of the Chinese year, we expect prices to stabilize around current levels in the next few weeks rather than start correcting downwards. A similar retreat in steel prices is also being re-ported during the past days in India but this has yet to translate into softer demolition prices as the appetite of local Buyers remains firm. What could nonetheless lead to softer demo prices in the following weeks is the lack of strong competition amidst reports of another acci-dent in Pakistan that is bound to once again push local breakers back to the sidelines at least for a little while. Average prices this week for tank-ers were at around 230-315 $/ldt and dry bulk units received about 220-300 $/ldt.

Weekly Market Report

Issue: Week 1 | Tuesday 10th January 2017

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17

Delivered Broken up Delivery forecasts Net change

© Intermodal Research 10/01/2017 2

2015 2014

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 85 56,107 80 51,559 8.8% 65,906 30,469

280k MEG-USG 58 29,557 48 26,279 12.5% 49,575 17,173

260k WAF-USG 85 56,510 85 56,593 -0.1% 76,251 40,541

130k MED-MED 95 36,533 95 37,687 -3.1% 50,337 30,950

130k WAF-USAC 95 28,603 95 29,473 -3.0% 40,490 24,835

130k BSEA-MED 95 36,487 95 37,070 -1.6% 50,337 30,950

80k MEG-EAST 95 14,932 95 15,241 -2.0% 34,131 19,956

80k MED-MED 120 26,978 110 20,724 30.2% 37,127 28,344

80k UKC-UKC 90 14,492 95 17,402 -16.7% 39,338 33,573

70k CARIBS-USG 145 22,686 210 49,450 -54.1% 36,519 25,747

75k MEG-JAPAN 115 19,163 120 21,150 -9.4% 30,482 16,797

55k MEG-JAPAN 110 11,786 115 12,676 -7.0% 24,854 14,461

37K UKC-USAC 155 16,363 155 16,803 -2.6% 19,973 10,689

30K MED-MED 180 15,179 215 22,615 -32.9% 24,473 18,707

55K UKC-USG 145 22,500 130 18,156 23.9% 27,228 23,723

55K MED-USG 145 21,423 130 17,466 22.7% 26,083 21,089

50k CARIBS-USAC 175 25,924 180 26,802 -3.3% 27,146 25,521

Vessel Routes

Week 1 Week 53$/day

±%

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Jan-17

avg

Dec-16

avg±% 2015 2014 2013

300KT DH 60.5 60.5 0.0% 80.9 73.8 56.2

150KT DH 41.5 42.0 -1.2% 59.5 50.4 40.1

110KT DH 30.5 30.5 0.0% 45.3 38.9 29.2

75KT DH 28.0 28.2 -0.7% 35.8 33.0 28.0

52KT DH 22.0 22.0 0.0% 27.3 27.5 24.7

Aframax

LR1

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Chartering

Following an overall strong end to the year, earnings in the crude carriers market moved mostly downwards last week, while VL rates outperformed the rest of the sizes. The period market has at the same time remained fairly busy, with enquiry focusing mostly on 6-month up to 1-year contracts and numbers reported remaining in line with last dones. As far as oil is con-cerned, reports on a rising U.S. production appear to have slowly started to outweigh the effect of the production cut decided by major producers to-ward the end of last year, with mounting pressure on prices witnessed dur-ing the past couple of days as a result.

Despite the fact that Middle East activity only slightly increased last week, sentiment was overall positive among VL owners, with the gap between earnings for modern and older tonnage remaining wide, while the West Africa market moved sideways.

The West Africa Suezmax witnessed a week of two speeds, with both activi-ty and rates reviving mid-week onwards, while the negative effects of softer activity in the Black Sea/Med market were offset by further delays in the Straits. With the exception of cross-Med rates, which rebounded to the highs of December on the back of firmer activity, rates for Aframaxes moved downwards, while the Caribs market witnessed the sharpest de-crease on the back of quickly increasing tonnage availability in the region.

Sale & Purchase

In the Suezmax sector we had the sale of the “SIFNOS” (150,875dwt-blt 99, Japan), which was sold to undisclosed buyers, for a price in the region of $12.5m.

In the Chemical sector we had the sale of the “EA SIRIUS” (12,922dwt-blt 09, S. Korea), which was sold to Philippine buyers, for a price in the region of $11.5m .

Tanker Market

- 6 to 9 mos - 'STEALTH SKYROS' 2011 115,000 dwt

- - $17,500/day - Trafigura

Indicative Period Charters

- 12 mos - 'XIN LIAN YANG' 2014 322,861 dwt

- - $30,300/day - Socar

2070

120170220270320370420470520

WS

po

ints

DIRTY - WS RATESTD3 TD6 TD9

Week 1 Week 53 ±% Diff 2015 2014

300k 1yr TC 31,000 31,000 0.0% 0 46,135 28,346

300k 3yr TC 29,000 29,000 0.0% 0 42,075 30,383

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

150k 3yr TC 20,250 20,250 0.0% 0 33,219 24,613

110k 1yr TC 17,500 17,500 0.0% 0 26,808 17,769

110k 3yr TC 17,250 17,250 0.0% 0 24,729 19,229

75k 1yr TC 13,750 14,000 -1.8% -250 23,596 16,135

75k 3yr TC 15,000 15,750 -4.8% -750 20,580 16,666

52k 1yr TC 12,500 12,500 0.0% 0 17,865 14,889

52k 3yr TC 14,000 14,000 0.0% 0 16,638 15,604

36k 1yr TC 11,750 11,750 0.0% 0 16,101 14,024

36k 3yr TC 13,000 13,000 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 10/01/2017 3

0

500

1,000

1,500

2,000

2,500

3,000

Ind

ex

Baltic Indices

BCI BPI BSI BHSI BDI

0

5000

10000

15000

20000

25000

$/d

ay

Average T/C Rates

Average of the 4 T / C AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

Chartering

Following an unexpectedly steady market during the year-end holiday peri-

od, which took most by surprise given the slowdown the substantial slow-

down the BDI had been witnessing since the winter season kick off, the Dry

Bulk market closed marginally up last week. The movement of the dry bulk

index was once more shaped by the opposite direction rates for the bigger

and the smaller sizes moved into, with the former significantly outperform-

ing the latter. The strength the Capesize market has been displaying during

the past weeks has been rather unexpected and while it has been definitely

easing to a degree the worries that started mounting back in November

when earnings for the size were sharply correcting downwards, everyone is

now anxiously waiting to see whether this stability can actually be extended

throughout the traditionally quiet Chinese New Year that is shortly ap-

proaching.

Capesize rates in the East held around the healthy levels achieved during

the last days of the year on the back of steady activity, while the fear of a

slow Atlantic market during the holidays kept tonnage supply in the region

tight, which in turn provided strong momentum to rates there.

Rates in the Atlantic Panamax market firmed last week, with a busy USG

and S. America market supporting sentiment, while in the East owners were

still struggling to shake off the discounted levels the market moved to fol-

lowing the pre-holiday fixing rush.

Despite the extended drop in Atlantic Supramax levels, the USG has slowly

started to improve and trans-Atlantic business is still paying decent levels,

while in the East the market keeps softening for the smaller sizes as compe-

tition has been intensifying in anticipation of the Chinese New Year.

Sale & Purchase

In the Panamax sector we had the sale of the “JUN JIE” (74,005dwt-blt 00, Japan), which was sold to Chinese buyers, for a price in the region of $4.8m.

In the Handysize sector we had the sale of the “BBC PLUTO” (37,495dwt-blt 10, China), which was sold to North European buyers, for a price in the region of $9.5m .

Jan-17 avg Dec-16 avg ±% 2015 2014 2013

180k 24.0 24.0 0.0% 33.1 47.5 35.8

76K 14.0 14.0 0.0% 17.2 24.8 21.3

56k 14.0 14.0 0.0% 16.1 25.2 21.5

30K 12.0 11.3 6.2% 13.3 20.0 18.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Indicative Period Charters

- 13 to 15 mos - 'PELOREUS' 2014 182,200 dwt

- Samcheonpo 22 Dec - $ 12,000/day - ECTP

- 5 to 7 mos - 'ASIA ENERGY' 2001 28,083 dwt

- Far East - $ 5,500/day - CB Marine

Dry Bulk Market

Index $/day Index $/day Index Index

BDI 963 961 2 713 1,097

BCI 1,658 $12,345 1,385 $10,078 273 22.5% 1,009 1,943

BPI 892 $7,128 852 $6,826 40 4.4% 692 960

BSI 783 $8,188 903 $9,445 -120 -13.3% 663 937

BHSI 508 $7,264 597 $8,501 -89 -14.6% 365 522

30/12/2016

Baltic IndicesWeek 1

06/01/2017Week 53

Point

Diff

2015 2014$/day

±%

180K 6mnt TC 8,500 8,500 0.0% 0 9,969 22,020

180K 1yr TC 9,250 9,250 0.0% 0 10,263 21,921

180K 3yr TC 10,000 10,000 0.0% 0 11,243 21,097

76K 6mnt TC 8,750 8,000 9.4% 750 7,921 12,300

76K 1yr TC 8,250 8,250 0.0% 0 7,705 12,259

76K 3yr TC 8,500 7,750 9.7% 750 8,724 13,244

55K 6mnt TC 8,500 8,750 -2.9% -250 8,162 12,008

55K 1yr TC 7,500 7,750 -3.2% -250 7,849 11,589

55K 3yr TC 8,000 8,000 0.0% 0 8,181 11,585

30K 6mnt TC 7,000 7,000 0.0% 0 6,690 9,113

30K 1yr TC 7,250 7,250 0.0% 0 6,897 9,226

30K 3yr TC 7,250 7,250 0.0% 0 7,291 9,541Han

dys

ize

Period

2014

Pan

amax

Sup

ram

ax

Week

1

Week

53

Cap

esi

ze

2015$/day ±% Diff

© Intermodal Research 10/01/2017 4

Secondhand Sales

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

POST

PMAX

HANJIN

BUCHANAN115,000 2011

NEW TIMES

SHIPBUILDING,

China

MAN-B&W Nov-16 $ 13.0m

POST

PMAXHANJIN ODESSA 115,000 2011

NEW CENTURY

SHIPBUILDI, ChinaMAN-B&W Apr-17 $ 13.0m

PMAX JUN JIE 74,005 2000

IMABARI

MARUGAME,

Japan

B&W Mar-15 $ 4.8m Chinese

PMAX NYON 73,035 1999

CHINA

SHIPBUILDING

KAO, Ta iwan

Sulzer Aug-19 $ 4.1m Chinese

SMAXNEW CALEDONIA

MARU58,086 2013

TSUNEISHI HEAVY

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

4 X 30t

CRANEShigh $14.0m undisclosed

SMAX MEDI IMABARI 56,047 2008MITSUI TAMANO,

JapanMAN-B&W Nov-20

4 X 30t

CRANES$ 10.1m Greek

SMAX SANTA ISABELLA 55,862 2006

KAWASAKI

SHIPBUILDING,

Japan

MAN-B&W Feb-214 X 30,5t

CRANES$ 8.3m undisclosed

SMAX NAVIOS APOLLON 52,073 2000SANOYAS HISHINO

MIZ'MA, JapanSulzer Jun-20

5 X 30t

CRANES$ 5.0m Chinese

HMAX NEMTAS-2 48,857 2005

IHI MARINE

UNITED - YO,

Japan

Sulzer Jan-204 X 30,5t

CRANEShigh $7.0m Bangladeshi

HANDY BBC PLUTO 37,495 2010 XINGANG, China Warts i la Oct-104 X 30t

CRANES$ 9.5m North European ice 1C

HANDY ETERNAL OCEAN 33,382 2013SHIN KURUSHIMA

ONISHI, JapanMitsubishi

4 X 30t

CRANES$ 13.0m German (Schulte)

HANDY ZHI JING 33,076 2008

ZHOUSHAN

WUZHOU SHIP R,

China

Warts i la Jan-184 X 25t

CRANES$ 4.0m Chinese

HANDY AZURE BAY 31,700 2005

SAIKI HEAVY

INDUSTRIES,

Japan

Mitsubishi Mar-204 X 30t

CRANES$ 7.0m Greek

HANDY PROKOPIS K 23,825 1995NAIKAI ZOSEN -

SETODA, JapanB&W Jul-20

4 X 30t

CRANES$ 2.3m undisclosed

HANDY VOGE RENATE 23,407 1997TSUNEISHI HEAVY

CEBU, Phi l ippinesB&W Sep-17

4 X 30t

CRANES$ 2.4m Greek

Bulk Carriers

Greek

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

TAIYOUNG SUN 3,739 1992

DAE SUN

SHIPBUILDING &,

S. Korea

B&W Nov-16 undisclosed undisclosed

MPP/General Cargo

© Intermodal Research 10/01/2017 5

Secondhand Sales

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

VLCC NEPTUN 307,284 2007

DALIAN

SHIPBUILDING IN,

China

Warts i la Jul -12 DH $ 46.5m

VLCC NAUTILUS 307,284 2006

DALIAN

SHIPBUILDING IN,

China

Warts i la Dec-11 DH $ 46.5m

VLCC NAVARIN 307,284 2007

DALIAN

SHIPBUILDING IN,

China

Warts i la Apr-12 DH $ 46.5m

VLCC NUCLEUS 307,284 2007

DALIAN

SHIPBUILDING IN,

China

Warts i la Oct-12 DH $ 46.5m

SUEZ EUGENIE 157,672 2010SAMSUNG HEAVY

INDUSTRI, S. KoreaMAN-B&W Feb-20 DH $ 37.5m

SUEZ DEVON 157,642 2011SAMSUNG HEAVY

INDUSTRI, S. KoreaMAN-B&W Jan-21 DH $ 37.5m

SUEZ SIFNOS 150,875 1999NKK CORP - TSU,

JapanSulzer Oct-19 DH $ 12.5m undiscosed

PROD/

CHEMEA SIRIUS 12,922 2009

STX OFFSHORE, S.

KoreaMAN-B&W Jun-19 DH $ 11.5m Phi l ippino

SMALL CRYSTAL NORD 8,104 1994

BOELWERF

VLAANDEREN TE,

Belgium

Sulzer Feb-19 DH $ 3.5m undisclosed

SMALL MEDIATOR 5,706 2008QINGDAO HYUNDAI

SHIPBU, ChinaWarts i la Sep-18 DH $ 6.5m South Korean

SMALL LYDIAN TRADER 5,504 2008CELIKTEKNE TUZLA,

TurkeyMAN-B&W DH $ 7.1m

SMALL IONIAN TRADER 5,495 2008CELIKTEKNE TUZLA,

TurkeyMAN-B&W DH $ 7.1m

Tankers

incl . 5 years BB at

$22.000/day

U.S Based

(Wafra Capita l

Partners )

Indian (Great

Eastern

Shipping)

Turkish (Atlantis

Tankers )

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

SUB

PMAXBERWICK 2,602 2002

STX

SHIPBUILDING -

JIN, S. Korea

B&W Sep-174 X 40t

CRANES$ 3.0m undisclosed

Containers

Name Loa(m) Pass Cars Built Yard M/E SS due Price Buyers Comments

HIGHSPEED 6 96 966 236 2000

INCAT TASMANIA

PTY LTD,

Australia

Ruston undisclosedSpanish

(Naviera Armas)

REGULA 71.2 800 105 1971

MEYER

PAPENBURG,

Germany

Deutz Mar-18 $ 4.2mEstonian (Port

of Tallinn)

Ferries

© Intermodal Research 10/01/2017 6

With the end of 2017 marking one of the worst years for the shipbuilding industry, there is little - if any - hope that a substantial improvement in con-tracting volumes could be witnessed in 2017. During last year newbuilding activity was reduced by more than 83% in both dry bulkers and tankers com-pared to 2015 and even though it is hard for this deceleration in ordering to continue at the same pace this year, reasons why a substantial improvement in ordering could be taking place in the next twelve months are also hard to find. Given that tanker rates enjoyed overall healthy rates last year and that the dry bulk market is nowhere close to such levels yet, despite having suc-cessfully rebounded from those haunting 2016 lows, we expect tanker order-ing to once again witness higher ordering volumes compared to dry bulk contracting, with recently reported newbuilding activity being evidence of this trend .

In terms of recently reported deals, Norwegian owner, Ship Finance Interna-tional, placed an order for two firm and two optional Suezmaxes (114,000dwt) at Daehan, S. Korea for a price in the region of $44.5m and delivery set in 2018.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

10

30

50

70

90

110

mil

lion

$

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Week

1

Week

53±% 2015 2014 2013

Capesize 180k 41.5 41.5 0.0% 49.9 56 49

Kamsarmax 82k 24.0 24.0 0.0% 27.8 30 27

Ultramax 63k 22.0 22.0 0.0% 25 27 25

Handysize 38k 19.5 19.5 0.0% 21 23 21

VLCC 300k 85.0 85.0 0.0% 95.5 99 91

Suezmax 160k 55.0 55.0 0.0% 64 65 56

Aframax 115k 45.0 45.0 0.0% 53 54 48

LR1 75k 41.0 41.0 0.0% 45.8 46 41

MR 50k 32.5 32.5 0.0% 36.1 37 34

189.0 189.0 0.0% 190 186 185

72.0 72.0 0.0% 77.4 78 71

64.0 64.0 0.0% 68.0 67 63

42.0 42.0 0.0% 45.5 44 41

LNG 160k cbm

LGC LPG 80k cbm

MGC LPG 55k cbm

SGC LPG 25k cbm

Gas

Bu

lke

rsTa

nke

rs

Vessel

Indicative Newbuilding Prices (million$)

Units Type Yard Delivery Buyer Price Comments

2+2 Tanker 114,000 dwt Daehan, S. Korea 2018Norwegian (Ship Finance

International)$ 44.5m

1 Tanker 51,000 dwt Minami Nippon, Japan 2019 Japanese (Asahi Tanker Co.) undisclosed

1 Tanker 50,000 dwt Hyundai Mipo, S. Korea 2018South Korean

(Sangji Shipping)undisclosed

1+1 Gas 13,000 cbm Jiangnan, China 2019 Algerian (Hyproc Shipping) undisclosed LPG

Newbuilding OrdersSize

© Intermodal Research 10/01/2017 7

50

150

250

350

450

550

$/ld

tDry Bulk Demolition Prices

Bangladesh India Pakistan China

The demolition market has witnessed a strong end to the year, with a num-ber of high priced sales taking place in the Indian subcontinent, boosting sentiment and allowing for an equally strong market during the first week of 2017. The strong comeback of Indian buyers during the past weeks of 2016 has pushed prices across the board up as a result. The continuous strength-ening in Chinese scrap steel market has additionally supported momentum and despite the slowdown the market there is now witnessing ahead of the Chinese year, we expect prices to stabilize around current levels in the next few weeks rather than start correcting downwards. A similar retreat in steel prices is also being reported during the past days in India but this has yet to translate into softer demolition prices as the appetite of local Buyers remains firm. What could nonetheless lead to softer demo prices in the following weeks is the lack of strong competition amidst reports of another accident in Pakistan that is bound to once again push local breakers back to the sidelines at least for a little while. Average prices this week for tankers were at around 230-315 $/ldt and dry bulk units received about 220-300 $/ldt.

The highest price amongst recently reported deals was paid by Indian break-ers for the Chemical Tanker “PACIFIC STREAM” (24,728dwt-7,835ldt-blt 85), which received $540/ldt.

Demolition Market

Week

1

Week

53±% 2015 2014 2013

Bangladesh 315 315 0.0% 360 469 422

India 315 300 5.0% 361 478 426

Pakistan 310 310 0.0% 366 471 423

China 230 230 0.0% 193 313 365

Bangladesh 300 300 0.0% 341 451 402

India 295 280 5.4% 342 459 405

Pakistan 290 285 1.8% 343 449 401

China 220 220 0.0% 174 297 350

Dry

Bu

lk

Indicative Demolition Prices ($/ldt)

Markets

Tan

ker

120

220

320

420

520

$/l

dt

Tanker Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

VARADA BLESSING 299,994 38,115 1993DAEWOO

SHIPBUILDING &, S. TANKER $ 299/Ldt undisclosed

as-is Hong Kong

AL ENTERPRISE 61,441 22,444 2003IHI MARINE UNITED -

YO, JapanCONT $ 336/Ldt Indian

ZIM SAVANNAH 66,937 20,896 2004HYUNDAI SAMHO

HEAVY IN, S. KoreaCONT $ 334/Ldt Indian

as-is Singapore

LONG FU STAR 171,039 19,992 1996 IHI - KURE, Japan BULKER $ 329/Ldt undisclosedBangladesh/Pakistan option

RUN PENG 59,840 18,895 1995 IHI - CHITA, Japan CONT $ 327/Ldt undisclosedas -is Fujairah

PACIFIC STREAM 24,728 7,835 1985 AESA SESTAO, Spain TANKER $ 540/Ldt Indian 1,130T StSt

CRESCO 22,900 7,771 1996SZCZECINSKA

STOCZNIA S, PolandCONT $ 335/Ldt undisclosed India/Pakistan option

SONOMA 22,384 7,430 1997SZCZECINSKA

STOCZNIA S, PolandCONT $ 341/Ldt Indian

KOTA WISATA 24,155 7,284 1994SHIN KURUSHIMA

ONISHI, JapanCONT $ 322/Ldt Bangladeshi

ELENI I 22,250 7,284 1996 MTW, Germany CONT $ 310/Ldt undisclosedas-is Yantian

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

Mr. George Panagopoulos | g.panagopoulos@intermodal.gr

Market News

“Zhonggu Shipping to raise $87m for fleet expan-sion

ZHONGGU Shipping, a containership and multi-purpose vessel operator that focuses on Chinese domestic trade, will raise up to Yuan600m ($86.7m) via a share offering, mainly to purchase new ships and boxes.

The company is planning to issue a maximum of 30m shares, priced between Yuan16.8 and Yuan20, via subsidiary Zhongguo Logistic, whose shares are listed on the National Equities Exchange and Quota-tions (NEEQ), China’s leading over-the-counter equi-ty-exchange platform.

Of the total fundraising, Yuan375m will be used to fund 10 2,518 teu newbuildings ordered in May 2016; Yuan195m to buy 650,000 teu of containers to go with the new ships; and the remaining Yu-an30m to upgrade information systems.

Total investment for the new ships and containers amounts to Yuan1.5bn and Yuan975m, respectively, with the remaining to be financed by bank loans and leasing.

Zhonggu said the expansion was in line with its outlook on China’s domestic container shipping market for the next several years.

As of end-2016, Zhonggu operates 90 vessels, of which 20 are self-owned, according to its official website.

It operates 180,000 teu of containers, of which 100,000 teu are self-owned.” (Lloyd’s List)

Commodities & Ship Finance

6-Jan-17 5-Jan-17 4-Jan-17 3-Jan-17 2-Jan-17W-O-W

Change %

10year US Bond 2.340 2.370 2.450 2.450 2.450 -4.5%

S&P 500 2,276.98 2,269.00 2,270.75 2,257.83 2,238.83 1.7%

Nasdaq 5,521.06 5,487.94 5,477.00 5,429.08 5,383.12 2.6%

Dow Jones 19,963.80 19,899.29 19,942.16 19,881.76 19,762.60 1.0%

FTSE 100 7,210.05 7,195.31 7,189.74 7,177.89 7,142.83 0.9%

FTSE All-Share UK 3,913.55 3,905.23 3,897.31 3,891.54 3,873.22 1.0%

CAC40 4,909.84 4,900.64 4,899.40 4,899.33 4,882.38 1.0%

Xetra Dax 11,599.01 11,584.94 11,584.31 11,584.24 11,598.33 0.0%

Nikkei 19,454.33 19,520.69 19,594.16 19,114.37 19,114.37 1.8%

Hang Seng 22,503.01 22,456.69 22,134.47 22,150.40 22,000.56 2.3%

DJ US Maritime 224.20 223.21 222.88 217.47 218.29 2.7%

$ / € 1.05 1.06 1.05 1.04 1.05 0.1%

$ / ₤ 1.23 1.24 1.23 1.22 1.23 -0.4%

¥ / $ 117.01 115.30 117.14 117.64 117.46 0.0%

$ / NoK 0.12 0.12 0.12 0.12 0.12 2.0%

Yuan / $ 6.92 6.88 6.95 6.96 6.95 -0.4%

Won / $ 1,202.07 1,185.75 1,195.61 1,207.00 1,204.75 -0.4%

$ INDEX 102.22 101.52 102.70 103.21 102.83 0.0%

Market Data

Cu

rre

nci

es

Sto

ck E

xch

ange

Dat

a

1,050

1,100

1,150

1,200

40

45

50

55

60

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

6-Jan-17 30-Dec-16W-O-W

Change %

Rotterdam 475.0 475.5 -0.1%

Houston 525.0 525.0 0.0%

Singapore 505.0 500.0 1.0%

Rotterdam 312.5 307.0 1.8%

Houston 312.5 307.5 1.6%

Singapore 352.5 347.5 1.4%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 06-Jan-17 30-Dec-16

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 10.45 10.15 3.0%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 3.21 3.18 0.9%

COSTAMARE INC NYSE USD 5.99 5.60 7.0%

DANAOS CORPORATION NYSE USD 2.65 2.65 0.0%

DIANA SHIPPING NYSE USD 3.60 3.02 19.2%

DRYSHIPS INC NASDAQ USD 3.03 3.69 -17.9%

EAGLE BULK SHIPPING NASDAQ USD 6.12 5.85 4.6%

EUROSEAS LTD. NASDAQ USD 1.85 1.69 9.5%

GLOBUS MARITIME LIMITED NASDAQ USD 4.36 4.08 6.9%

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.02 1.70 18.8%

NAVIOS MARITIME HOLDINGS NYSE USD 1.62 1.41 14.9%

NAVIOS MARITIME PARTNERS LP NYSE USD 1.61 1.41 14.2%

SAFE BULKERS INC NYSE USD 1.30 1.15 13.0%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.20 1.15 4.3%

STAR BULK CARRIERS CORP NASDAQ USD 6.11 5.11 19.6%

STEALTHGAS INC NASDAQ USD 3.40 3.38 0.6%

TSAKOS ENERGY NAVIGATION NYSE USD 5.04 4.69 7.5%

TOP SHIPS INC NASDAQ USD 2.45 2.25 8.9%

Maritime Stock Data

© Intermodal Shipbrokers Co

9

10/01/2017

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