Broker’s insight by Theodore Ntalakos

Is there light at the end of the tunnel?

The two most frequent asked ques�ons to us brokers is (a) when will it be a

good �me to invest and (b) which type, size and age of vessel should one

buy?

Obviously there are no simple answers nor can we predict what will happen

in the near or longer future. We can however look at the available historic

data, and indicators to plan our strategy accordingly. We take the view that

the investment should have adequate remaining life ahead to give its owners

the required return. As far as the �ming of the investment is concerned, one

indicator is the forward ship supply at any given �me, which is simply defined

as the current fleet plus the orderbook at a specific point in �me.

If we look at the handysize sector we see that the forward ship supply as of

July 1st 2012 is less than what it was one year earlier by more than 50 ves-

sels. Combined with the fact that 45% of the fleet is over 15 years old we

believe that the supply in this segment has started shrinking and modern

vessels or new buildings of this size may be more a0rac�ve than other sizes.

Looking at the supramax size, we see that while the actual fleet grew by

more than 300 vessels the past year the forward supply grew only by 50 ves-

sels showing that the fleet is close to peaking and will soon start shrinking

too.

In the panamax size, the exis�ng fleet grew by 170 vessels the past year and

the forward supply grew by around 80 vessels, confirming the fact that the

panamax/kamsarmax supply has not peaked and the 650 vessels that are s�ll

on order will have a significant impact on the market. In the capesize seg-

ment we also have seen the forward supply contrac�ng due to the depressed

market leading to strong demoli�on ac�vity.

So, the graph above shows how close we are before the forward ship supply

nears its highest levels; a:er which the rate of demoli�on will decide how

the shrinking can be further accelerated in favor of be0er rates and returns

for shipowners. However, as we come out from the oversupply quicksand,

the ques�on is 'will the demand be there at the exit?

Chartering (Wet: So�er- / Dry: Firm+ )

The Dry bulk market managed to make a remarkable recovery this past

week thanks to the sudden increase in demand witnessed in both the

Capesize and Panamax sector as well as the overall limited availability of

open vessels. The BDI closed Tuesday (10/07/2012) at 1,160 points,

down by 2 points compared to Monday’s levels (09/07/2012) and an

increase of 147 points compared to the previous Tuesday’s levels

(03/07/2012). Things deteriorated further for crude oil tankers this

week as the coupled decrease in demand and increasing bunker prices

sent rates on some routes back to nega�ve figures. The BDTI Monday

(09/07/2012), was at 649, 28 points down and the BCTI at 557, a de-

crease of 4 points compared to the previous Monday’s levels

(02/07/2012).

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

There was some notable increase in interest for the larger size segments

this week in both the dry bulk and tanker markets. On the Tankers side,

we had the sale of the S. Korean built “Champion Power” (105,083dwt-

blt 99 S. Korea) which was reported sold to Saudi Arabian buyers, name-

ly Bakri Naviga�on for a price of around $ 11.7m. While on the dry bulk-

er side, the S. Korea built Capesize “Chris�na Bulker” (179,430dwt-blt 11

S. Korea) was reported sold to Greek buyers for a price of $ 38.0m.

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

Not much difference noted this week in the newbuilding market as re-

ported ac�vity con�nues to be slim. It looks as though all the marke�ng

that has been taking place these past months has not managed to cre-

ate sufficient interest amongst shipowners. At the same �me, we are

seeing a slow decline in prices of some tanker and gas carrier units. This

could be an indica�on that further price drops are to be seen fairly soon

in other size and shiptype segments. Nevertheless, it may be the case

that even with a considerable drop in quoted prices, fresh interest gen-

erated amongst owners would be limited. Many owners are now focus-

ing their more of their a0en�on on longer term projects where they can

avoid excessive risk and secure the returns the investment will make. In

terms of reported deals this week, most notable was the order placed

by Sweden’s Stena Bulk at China's Guangzhou Shipyard for 4 firm plus 4

op�onal MR (50,000dwt) tankers at a price of $38.0m each and for de-

livery between April and September 2014. The deal is in addi�on to the

2 units ordered earlier at the same yard by its subsidiary Concordia.

Demoli'on (Wet: So�er- / Dry: So�er- )

A:er several weeks of rapidly worsening condi�ons in the market, there

was a sudden upturn in offered price levels as demand amongst demo

buyers started to firm. The combina�on of controls on exchange rate

and improved taxa�on levels seems to have sparked op�mism and spec-

ula�on once again. All of the Indian Sub-Con�nent noted a quick correc-

�on in prices and reported ac�vity increased considerably. At the same

�me current prices look to be to some degree sustainable for the �me

being, while many cash buyers are more than confidant in offering at

these levels without worrying of a quick collapse of the market. Prices

for wet tonnages have now fallen to levels of around 360-400$/ldt and

dry units have dropped to about 340-375$/ldt.

Weekly Market Report

Week 27|Tuesday 10th July 2012

0

500

1,000

1,500

2,000

2,500

3,000

2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012

VLOC/Capesize Kamsar/Panamax Supra/Handymax Handysize

No. Vessels Active On Order

© Intermodal Research 10/07/2012 2

6080

100120140160180200220240260

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

20

40

60

80

100

120

140

160

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Jul-12 Jun-12 ±% 2012 2011 2010

300KT DH 65.0 65.0 0.0% 64.6 77.6 87.2

150KT DH 47.0 47.0 0.0% 46.5 54.4 62.6

105KT DH 32.0 32.0 0.0% 32.9 39.1 44.7

70KT DH 26.0 26.0 0.0% 27.9 35.2 38.8

45KT DH 26.0 26.0 0.0% 25.7 28.4 26.5

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

Panamax

Week 27 Week 26 ±% Diff 2012 2011

300k 1yr TC 25,500 26,500 -3.8% -1000 22,546 25,197

300k 3yr TC 28,500 29,500 -3.4% -1000 27,561 31,681

150k 1yr TC 19,500 19,000 2.6% 500 17,176 19,837

150k 3yr TC 22,000 21,500 2.3% 500 20,737 23,830

105k 1yr TC 14,000 14,000 0.0% 0 13,944 15,707

105k 3yr TC 16,250 16,250 0.0% 0 16,200 18,335

70k 1yr TC 13,750 13,000 5.8% 750 13,019 14,995

70k 3yr TC 14,500 14,500 0.0% 0 14,320 16,263

45k 1yr TC 14,000 14,000 0.0% 0 14,287 13,918

45k 3yr TC 15,000 15,000 0.0% 0 14,857 14,738

36k 1yr TC 12,750 12,750 0.0% 0 12,593 12,471

36k 3yr TC 13,750 13,750 0.0% 0 13,311 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 35 5,882 40 16,866 -13% 31,331 18,217

280k AG-USG 25 -3,501 28 3,271 -11% 7,696 2,504

260k WAF-USG 43 23,455 45 27,348 -6% 41,021 25,714

130k MED-MED 73 24,569 73 26,154 0% 28,784 25,125

130k WAF-USAC 68 18,697 65 16,680 4% 18,378 13,373

130k AG-CHINA 75 22,909 78 27,063 -3% 23,455 14,815

80k AG-EAST 93 14,226 95 17,051 -3% 13,584 12,726

80k MED-MED 105 25,598 115 32,033 -9% 16,365 13,577

80k UKC-UKC 95 23,251 95 24,909 0% 20,668 18,604

70k CARIBS-USG 90 10,447 95 12,541 -5% 14,335 8,240

75k AG-JAPAN 98 13,650 95 14,071 3% 5,767 10,467

55k AG-JAPAN 125 16,072 120 15,728 4% 6,427 7,768

37K UKC-USAC 95 2,481 95 3,190 0% 10,476 11,022

30K MED-MED 130 13,899 138 16,394 -5% 16,840 18,458

55K UKC-USG 113 15,293 123 20,021 -8% 16,626 11,266

55K MED-USG 113 14,106 123 18,301 -8% 14,516 9,676

50k CARIBS-USAC 120 15,239 120 15,239 0% 15,650 10,700

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Spot Rates

Vessel Routes

Week 27 Week 26

±%

Chartering

The VLCC market was hit hard this week as the slacking demand con�nued

to create a moun�ng supply of open vessels while the upward moving bun-

ker prices pushed earnings into the nega�ve region once again. Demand is

looking fairly weak at the moment and is giving no indica�on of recovering

over the next couple of days, while condi�ons in the MEG are likely to re-

main depressed for longer. This deteriora�ng market in the East will inevita-

bly push ballasters towards the WAF market sooner or later and inevitably

lead to dropping rates there as well.

With ac�vity remaining firm in the WAF, Suezmaxes were able to see anoth-

er increase in rates. Inquiries are looking to hold at ample levels to keep the

posi�on lists in check, however if things deteriorate much further in the

VLCC market we could see a spill over affect and a drop a drop in freight

levels. The Black Sea/Med region was looking stable as the increased ac�vi-

ty in the region was not enough to push for any rise in freight levels.

Things took a downward turn this week for the Aframax sector with rates

deteriora�ng in the Black Sea/Med and Caribs markets despite the in-

creased ac�vity reported. However, things are looking hopefull that rates

will stabilise at these current levels as there are s�ll ample inquiries to cov-

er tonnage supply. At the same �me the North Sea/Bal�c region remained

stable for yet another week.

Sale & Purchase

On the Aframax segment, we had the sale of the S. Korean built “Champion

Power” (105,083dwt-blt 99 S. Korea) which was reported sold to Saudi Ara-

bian buyers, namely Bakri Naviga�on for a price of around $ 11.7m.

Also noteworthy was the reported sale of the LR1 “Kirsten” (83,660dwt-blt

88 Yugoslavia) which was picked up by Dubai based buyers for an price of

about $ 8.0m.

Wet Market

Indicative Period Charters

- 18 days - 'Torm Platte' 2006 47,000dwt

- DEL SK-JPN REDEL SK-JPN - $ 24,225/day - MSC

- 12 mos - 'Baltic Captain' 2000 37,000dwt

- DEL WEST JUNE - $ 11,750/day - Repsol

© Intermodal Research 10/07/2012 3

Index $/day Index $/day Index Index

BDI 1,157 1,004 15.2% 153 949 1,549

BCI 1,493 $7,904 1,190 $3,988 25.5% 303 1,498 2,237

BPI 1,129 $9,002 984 $7,835 14.7% 145 1,098 1,749

BSI 1,296 $13,556 1,257 $13,145 3.1% 39 962 1,377

BHSI 713 $10,309 719 $10,414 -0.8% -6 546 718

29/06/12

Baltic IndicesWeek 27

06/07/12

Week 26

±%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 16,000 12,500 28% 3,500 14,019 18,474

170K 1yr TC 15,125 13,875 9% 1,250 15,381 17,138

170K 3yr TC 15,750 15,750 0% 0 16,543 17,599

70K 6mnt TC 11,875 11,125 7% 750 12,515 17,238

70K 1yr TC 10,250 10,000 3% 250 10,969 14,863

70K 3yr TC 11,375 11,375 0% 0 11,788 14,500

52K 6mnt TC 13,750 13,500 2% 250 12,061 15,587

52K 1yr TC 11,250 11,000 2% 250 11,135 14,308

52K 3yr TC 11,500 11,500 0% 0 11,950 14,046

45k 6mnt TC 11,000 11,000 0% 0 10,043 13,416

45k 1yr TC 9,750 9,750 0% 0 9,413 12,450

45k 3yr TC 10,250 10,250 0% 0 10,154 12,403

30K 6mnt TC 9,250 9,500 -3% -250 8,603 11,712

30K 1yr TC 9,000 9,250 -3% -250 8,694 11,787

30K 3yr TC 9,750 9,750 0% 0 9,922 12,044

Ha

nd

yma

xH

an

dy

size

Period

2011

Pa

nam

axSu

pra

ma

x

Week

27

Week

26

Cap

esi

ze

2012$/day ±% Diff

Chartering

A:er a gradual improvement of market condi�ons these past weeks, Capes

were able to see a strong recovery in freight rates despite the pessimis�c

indica�ons given by the market. The combina�on of a fairly �ght tonnage

list and a strong increase in fresh cargoes has created a strong base for

owners to gradually push rates back to survival levels. Fronthaul voyages

from the Atlan�c made an almost 30% gain in one week, while the Pacific

basin was brought back to life with a number of reported fixtures and circu-

la�ng inquiries.

A:er two weeks of so:ening rates, Panamaxes were able to stall any fur-

ther drop and started the week firm. Tonnage lists had already improved

considerably in both basins from the week prior, while there was ample

demand to feed sen�ment in both basins. The Atlan�c noted the biggest

gains as things were looking to heat up in the USGulf and ECSA region due

to a lacking of open tonnage to cover demand. The week started more sub-

dued in the Pacific where there was a significant amount of open tonnage.

Things were not looking as rosy in the Supras and Handies markets. Supras

were barely able to close the week with a posi�ve gain mainly due to good

ac�vity levels noted in ECSA, Cont/Med, Indonesia and India. Things were

more difficult in the Handysize segment were limited ac�vity coupled with

increased availability of vessels led the market to close off the week a touch

so:er compared to a week prior.

Sale & Purchase

The S. Korea built Capesize “Chris�na Bulker” (179,430dwt-blt 11 S. Korea)

was reported sold this week to Greek buyers for a price of $ 38.0m.

In the Supramax segment, we had the sale of the “Stella Maris” (52,454dwt

-blt 07 Japan) which was reported sold for a price of around $ 18.0m.

0

10,000

20,000

30,000

40,000

50,000

$/d

ay

Average T/C Rates

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

Jul-12 Jun-12 ±% 2012 2011 2010

170k 35.0 35.0 0.0% 36.1 43.5 57.4

75K 23.5 23.5 0.0% 24.7 31.3 39.0

52k 21.5 21.5 0.0% 22.5 25.6 30.2

29K 17.0 17.8 -4.5% 19.7 23.5 26.2

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

- 12/14 mos - 'Darya Shree' 2004 74,823dwt

- dely South China 12/14 July - $ 9,250/day - cnr

- 3/5 mos - 'Spar Sirius' 1996 45,402dwt

- dely Foynes spot - $ 17,000/day - STX Pan Ocean

Dry Market

© Intermodal Research 10/07/2012 4

Secondhand Sales

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

VLOCBAOSTEEL

EDUCATION228,527 2009

NAMURA IMARI,

JapanMitsubishi Mar-14 $ 45.0m Japanese (MOL)

20yrs TC to MOL at

$20,000/day

CAPECHRISTINA

BULKER179,430 2011

HANJIN HI &

CONST - BU, S.

Korea

MAN-B&W $ 38.0m Greek

SMAXKAWASAKI KOBE

165058,000 2012

KAWASAKI

SHIPBUILDING,

Japan

MAN-B&W4 X 30.5t

CRANES$ 27.0m

UK based

Greeks (A.M.

Nomikos)

SMAX PRISCO UDOKAN 57,337 2009STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W Sep-14

4 X 30t

CRANES$ 21.0m

SMAX PRISCO ABAKAN 57,334 2009STX OFFSHORE &

SHBLDG, S. KoreaMAN-B&W Sep-14

4 X 30t

CRANES$ 21.0m

SMAX STELLA MARIS 52,454 2007TSUNEISHI

HOLDINGS, JapanMAN-B&W Aug-12

4 X 30t

CRANES$ 18.0m undisclosed

HMAX CORDELIA 40,763 1986SANOYAS CORP,

JapanSulzer Jan-16

5 X 25t

CRANES$ 3.1m Chinese

HANDY KEN ANN MARU 32,115 1997 ONOMICHI, Japan Mitsubishi Aug-174 X 30t

CRANES$ 8.3m Turkish

HANDY RANUNCULUS 29,678 2005SHIKOKU

DOCKYARD, JapanMAN-B&W Jul -15

4 X 30.5t

CRANES$ 15.0m S. Koreans Committed

HANDY GLOBAL NEXTAGE 24,830 1996SHIN KURUSHIMA

ONISHI, JapanMitsubishi Jul -16

4 X 30.5t

CRANES$ 8.0m undisclosed

incl . 3 yrs T/C Back

to Sel lers at

$8,500/day

Greek (Navios

Mari time

Holdings )

Bulk Carriers

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

VLCC LA ESPERANZA 299,700 1993ODENSE LINDO,

DenmarkMits ubishi May-12 DH $ 21.0m undisclosed s torage buyers

AFRACHAMPION

POWER105,083 1999

SAMSUNG HEAVY

INDUSTRI, S. KoreaB&W Feb-14 DH $ 11.7m

Saudi Arabian

(Bakri

Navigation)

LR1 KIRSTEN 83,660 1988

3 MAJ

BRODOGRADILISTE,

Yugos lavia

Sulzer Jun-13 DH $ 8.0m Dubai bas ed

PROD/

CHEMSOLEY-3 7,064 2010 SOLI SHYD, Turkey MAN-B&W Nov-15 DH undisclos ed

Danish (Uni

Tankers)

PROD/

CHEMVANDA 6,300 2009

SURABAYA,

Indones iaYanmar Feb-14 DH undisclos ed undisclosed Epoxy coated

Tankers

© Intermodal Research 10/07/2012 5

Secondhand Sales

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

FEEDERHYUNDAI

CONCORD1,032 2002 IWAGI, Japan B&W Oct-12 $ 8.5m

S. Korean

(Hueng A)

FEEDER EMILIA SCHULTE 834 1999MAWEI SHIPYARD

- CHR, ChinaB&W Jan-14 $ 4.0m S. Korean

FEEDER AVONMOOR 779 1998 JINLING, China Wartsila Aug-132 X 40t

CRANES$ 1.1m undisclosed

via auction in

Malta

Containers

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

PACIFIC HARMONY 49,701 1990KAWASAKI HEAVY

INDS -, JapanB&W Apr-14 75,386 $ 19.5m Indian LPG

Gas/LPG/LNG

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

STENA

CALEDONIA131.8 1,000 306 1981

HARLAND &

WOLFF BEL, U. K.Pielstick May-16 undisclosed ADSP Ferry

Ferries

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

PSV MAKALU 3,289 2009MARITIM SP Z OO,

PolandBergens 5,452 Mar-14 undisclosed

Chi nese

(Shenzhen

Huawei)

Offshore

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

BERND 8,874 1998ZHONGHUA

SHIPYARD, ChinaWarts i la Mar-13

2 X 150t

CRANES$ 3.5m

Ghani an (UT

Bank of Ghana)

SINAR TUBAN 5,690 2006SURABAYA,

Indones iaCaterpi l l ar

rgn

$ 2.7-2.9mundi s cl osed

SIPAN 1,650 2007

KRALJEVICA

BRODOGRADIL,

Croatia

MaK Apr-12 undis clos ed Indones ian

MPP/General Cargo

© Intermodal Research 10/07/2012 6

Week

27

Week

26±% 2012 2011 2010

Bangladesh 400 390 2.6% 466 523 422

India 395 380 3.9% 466 511 427

Pakistan 390 380 2.6% 466 504 425

China 360 360 0.0% 418 451 383

Bangladesh 375 370 1.4% 442 498 375

India 365 350 4.3% 441 484 394

Pakistan 360 350 2.9% 439 477 388

China 340 340 0.0% 399 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

300

350

400

450

500

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

350

400

450

500

550

600

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

A:er several weeks of rapidly worsening condi�ons in the market, there was

a sudden upturn in offered price levels as demand amongst demo buyers

started to firm. The combina�on of controls on exchange rate and improved

taxa�on levels seems to have sparked op�mism and specula�on once again.

All of the Indian Sub-Con�nent noted a quick correc�on in prices and report-

ed ac�vity increased considerably. At the same �me current prices look to be

to some degree sustainable for the �me being, while many cash buyers are

more than confidant in offering at these levels without worrying of a quick

collapse of the market. Prices for wet tonnages have now fallen to levels of

around 360-400$/ldt and dry units have dropped to about 340-375$/ldt.

Most notable this week was the price paid by Bangladeshi breakers for the

OBO ‘Bic Irini’ (103,203dwt-17,087ldt-blt 93) which reportedly received a

price of around $ 425/Ldt.

Demoli'on Market

Name Size Ldt Built Yard Type $/ldt Breakers Comments

SHAGANG SUNRISE 172,904 24,896 1997 NKK CORP, Japan BULKER $ 353/Ldt undisclosed

LEI TSU II 152,835 24,766 1992CHINA SHIPBLDG,

Chinese TaipeiTANKER undisclosed Pakistani

STELLAR FORTUNE 151,283 17,800 1995 NKK CORP, Japan BULKER $ 353/Ldt Chinese

BIC IRINI 103,203 17,087 1993HYUNDAI HI, S.

KoreaOBO $ 425/Ldt Bangladeshi

VSP DIAMOND 63,800 11,872 1984HYUNDAI HI, S.

KoreaBULKER $ 360/Ldt Chinese

LINDOS 52,540 13,720 1990 OKEAN, Russia BULKER $ 394/Ldt Bangladeshi

LION 46,538 9,550 1989KOREA SHBLDG, S

.koreaTANKER $ 410/Ldt Pakistani incl. some bunkers ROB

FRESENA 20,983 7,273 1997 THYSSEN, Germany CONT undisclosed Turkish bss 'as is' Cyprus

AZTEC MAIDEN 19,777 5,500 1984SHIN YAMAMOTO,

JapanGC $ 350/Ldt Chinese

JOSHU MARU 2,494 974 1978 MITSUBISHI, Japan RO-PAX $ 330/Ldt Chinese

Demolition Sales

© Intermodal Research 10/07/2012 7

Week

27

Week

26±% 2012 2011 2010

Capesize 170k 46.0 46.0 0.0% 46 53 58

Panamax 75k 26.8 26.8 0.0% 27 33 35

Supramax 57k 25.3 25.3 0.0% 25 30 31

Handysize 30k 21.6 21.6 0.0% 22 25 27

VLCC 300k 95.3 95.5 -0.3% 95 102 103

Suezmax 150k 58.0 58.0 0.0% 58 64 66

Aframax 110k 49.0 49.5 -1.0% 50 54 55

LR1 70k 42.0 42.0 0.0% 42 45 46

MR 47k 34.0 34.0 0.0% 33 36 36

LPG M3 80k 70.5 71.0 -0.7% 70 73 72

LPG M3 52k 62.0 62.0 0.0% 61 64 65

LPG M3 23k 43.5 44.0 -1.1% 44 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

Not much difference noted this week in the newbuilding market as reported

ac�vity con�nues to be slim. It looks as though all the marke�ng that has

been taking place these past months has not managed to create sufficient

interest amongst shipowners. At the same �me, we are seeing a slow decline

in prices of some tanker and gas carrier units. This could be an indica�on that

further price drops are to be seen fairly soon in other size and shiptype seg-

ments. Nevertheless, it may be the case that even with a considerable drop

in quoted prices, fresh interest generated amongst owners would be limited.

Many owners are now focusing their more of their a0en�on on longer term

projects where they can avoid excessive risk and secure the returns the in-

vestment will make.

Worth men�oning this week is the order placed by Sweden’s Stena Bulk at

China's Guangzhou Shipyard for 4 firm plus 4 op�onal MR (50,000dwt) tank-

ers at a price of $38.0m each and for delivery between April and September

2014. The deal is in addi�on to the 2 units ordered earlier at the same yard

by its subsidiary Concordia.

10

20

30

40

50

60

70

mil

lio

n $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

mil

lio

n $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

4+4 Tanker 50,000 dwt Guangzhou, China 04-09/2014 Swedish (Stena Bulk) $ 38.0m

in addition to 2

units ordered by

Concordia

1 Tanker 1,700 dwt Akdeniz Gemi, Turkey 10/2013 Swedish (Pallas Shpg) undisclosed bunkering tanker

1+1 Bulker 38,000 dwt Imabari, Japan 2014 Chilean (Ultrabulk Shpg) undisclosed

1 Gas 153,000 cbm Kawasaki, Japan 11/2014 Japanese (Mitsui OSK Lines) undisclosed LNG

2 Gas 38,000 cbm Hyundai, S.Korea 2013-2014 Turkish (Negmar Denizci lik) $ 48.0m LPG

2 Offshore 4,900 dwtMyklebust Verft,

Norway03-09/2014 Norway (Sartor Shpg AS) $ 59.0m PSV

2 Offshore 3,800 dwt STX, Norway 12/2013Norway (Island Offshore

Mgmt)$ 42.0m PSV

Newbuilding Orders

Size

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 wri0en authoriza�on of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valua�ons 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

1,540

1,560

1,580

1,600

1,620

1,640

70

80

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

6-Jul-12 29-Jun-12W-O-W

Change %

Rotterdam 880.0 823.0 6.9%

Houston 923.0 854.0 8.1%

Singapore 865.0 821.0 5.4%

Rotterdam 598.0 550.5 8.6%

Houston 552.5 552.5 0.0%

Singapore 610.5 573.5 6.5%

Rotterdam 615.5 577.5 6.6%

Houston 587.5 587.5 0.0%

Singapore 620.5 586.5 5.8%

Bunker Prices

MD

O3

80

cst

18

0cs

t

World Economy News

European governments laid the groundwork for possible purchases of Italy’s

bonds and fast- tracked aid for Spain’s banks, trying to shield the euro area’s

third- and fourth-largest economies from the resurgent debt crisis. Finance

ministers worked out a way for the euro bailout funds to intervene in bond

markets and said the first 30 billion euros ($37 billion) of 100 billion euros in

rescue loans will start flowing to Spanish banks this month. (Bloomberg)

Energy & Commodi'es

China’s imports of many raw materials fell in June from the previous month,

underscoring how slowing growth in the world’s second-largest economy is

impac�ng commodi�es demand. The country is the world’s biggest buyer of

many raw materials including iron ore, copper and coal, and its monthly trade

data – released on Tuesday by the Customs Bureau – are closely watched as

an indicator of global demand trends. (Financial Times)

Finance News

If you are a container line, forget everything you

thought you knew about the eurozone crisis.

Well, not everything — it is s�ll having a nasty affect

on European consumer demand and it is s�ll a threat

to the US recovery, a key threat according to the IMF:

“lower demand in the euro area would reduce US

exports to the region.”

But we have all apparently missed a trick. Rather than

focus solely on Europe’s periphery for the source of

dampened European demand — that’s the big mess

in Greece, Spain and Portugal for anyone living on the

Moon — the IMF also pinpoints Europe’s core as an

important dampener. That means that when IMF

managing director Chris�ne Lagarde says the US

“remains vulnerable to contagion from an intensifica-

�on of the euro area debt crisis”, she is also talking

about Germany and France.

Confused? The US is at direct risk from Europe’s core:

“US financial ins�tu�ons have limited direct claims on

the euro area periphery, but strong financial linkages

with the core euro area,” says the IMF.

That is not exactly good news for container lines,

when Europe’s bigger countries are supposed to be

the ones that will eventually s�mulate demand and

growth again. (Lloyds List)

CompanyStock

ExchangeCurr. 06-Jul-12 29-Jun-12

W-O-W

Change %Max 27wk Min 27wk

AEGEAN MARINE PETROL NTWK NYSE USD 5.54 5.35 3.6% 5.61 5.40

BALTIC TRADING NYSE USD 3.60 3.44 4.7% 3.71 3.46

BOX SHIPS INC NYSE USD 8.41 8.07 4.2% 8.41 8.13

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.82 7.56 3.4% 7.83 7.70

COSTAMARE INC NYSE USD 14.25 13.90 2.5% 14.25 13.84

DANAOS CORPORATION NYSE USD 4.03 4.15 -2.9% 4.24 4.03

DIANA SHIPPING NYSE USD 7.72 7.78 -0.8% 8.09 7.72

DRYSHIPS INC NASDAQ USD 2.46 2.19 12.3% 2.51 2.26

EAGLE BULK SHIPPING NASDAQ USD 3.34 3.16 5.7% 3.40 3.11

EUROSEAS LTD. NASDAQ USD 1.25 1.18 5.9% 1.25 1.20

EXCEL MARITIME CARRIERS NYSE USD 0.56 0.56 0.0% 0.57 0.56

FREESEAS INC NASDAQ USD 0.64 0.73 -12.3% 0.66 0.64

GENCO SHIPPING NYSE USD 3.49 3.05 14.4% 3.55 2.99

GLOBUS MARITIME LIMITED NASDAQ USD 2.98 3.20 -6.9% 3.01 2.95

GOLDENPORT HOLDINGS INC LONDON GBX 61.75 59.00 4.7% 62.00 60.00

HELLENIC CARRIERS LIMITED LONDON GBX 25.00 22.10 13.1% 25.00 22.10

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.49 2.34 6.4% 2.54 2.30

NAVIOS MARITIME HOLDINGS NYSE USD 3.42 3.32 3.0% 3.51 3.35

NAVIOS MARITIME PARTNERS LP NYSE USD 13.77 13.59 1.3% 13.83 13.56

NEWLEAD HOLDINGS LTD NASDAQ USD 1.34 1.20 11.7% 1.45 1.22

OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.35 0.35 0.0% 0.38 0.35

PARAGON SHIPPING INC. NYSE USD 0.55 0.54 1.9% 0.56 0.54

SAFE BULKERS INC NYSE USD 6.28 6.17 1.8% 6.28 6.11

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.15 2.07 3.9% 2.30 2.05

STAR BULK CARRIERS CORP NASDAQ USD 0.78 0.72 8.3% 0.78 0.74

STEALTHGAS INC NASDAQ USD 5.94 5.81 2.2% 5.94 5.82

TSAKOS ENERGY NAVIGATION NYSE USD 5.66 4.87 16.2% 5.66 5.08

TOP SHIPS INC NASDAQ USD 1.84 1.68 9.5% 1.84 1.62

Maritime Stock Data

6-Jul-12 5-Jul-12 4-Jul-12 3-Jul-12 2-Jul-12W-O-W

Change %

10year US Bond 1.540 1.600 - 1.630 1.580 -7.2%

S&P 500 1,354.68 1,367.58 - 1,374.02 1,365.51 -0.5%

Nasdaq 2,937.33 2,976.12 - 2,976.08 2,951.23 0.1%

Dow Jones 12,772.47 12,896.67 - 12,943.82 12,871.39 -0.8%

FTSE 100 5,662.63 5,692.63 5,684.47 5,687.73 5,640.64 1.6%

FTSE All-Share UK 2,936.85 2,952.19 2,949.57 2,951.72 2,927.12 1.6%

CAC40 3,168.79 3,229.36 3,267.75 3,271.20 3,240.20 -0.9%

Xetra Dax 6,410.11 6,535.56 6,564.80 6,578.21 6,496.08 -0.1%

Nikkei 9,020.75 9,079.80 9,104.17 9,066.59 9,003.48 0.2%

Hang Seng 19,800.64 19,809.13 19,709.75 19,735.53 - 1.8%

Dow Jones 192.54 195.10 - 196.63 195.00 -1.7%

$ / € 1.24 1.24 1.26 1.26 1.26 -1.7%

$ / ₤ 1.55 1.56 1.56 1.57 1.57 -0.4%

₤ / € 0.80 0.80 0.80 0.80 0.80 -1.3%

¥ / $ 79.88 79.78 79.84 79.73 79.81 0.4%

$ / Au$ 1.03 1.03 1.03 1.03 1.03 0.6%

$ / NoK 0.16 0.17 0.17 0.17 0.17 -1.9%

$ / SFr 0.97 0.97 0.96 0.96 0.95 1.6%

Yuan / $ 6.37 6.36 6.35 6.35 6.35 0.2%

Won / $ 1,139.51 1,134.46 1,137.00 1,136.22 1,144.03 -0.4%

$ INDEX 82.40 82.20 81.80 81.60 81.60 1.1%

Oil WTI $ 84.50 87.20 87.10 87.70 83.80 -0.6%

Oil Brent $ 98.20 100.70 99.80 100.70 97.30 0.4%

Gold $ 1,604.85 1,615.63 1,617.85 1,597.18 1,597.60 3.4%

Market Data

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Commodi'es & Financials