weekly market report · market insight hartering (wet: ... it remains to be seen whether hinese...
TRANSCRIPT
Market insight By Linos-Alexandros Kogevinas
Marketing—Harbour Towage & Port Agency
Cotzias Intermodal Shipping Inc.
Effects of the Chinese stock market crisis
All evidence is currently signaling that the Chinese stock market will be the newest hurdle for the global economy. With the world's second largest economy's stock market facing massive problems over the past six weeks, the Chinese government has taken various measures (including pouring almost half a trillion USD via state-owned financing entities and suspending IPOs) in an effort to stabilize the current situation.
However Monday's drop of ~8.5%, the largest drop recorded since February 2007, with commodity companies and consumer firms having felt the brunt of the decline, shows that these measures have been lackluster at best or that the problem is that much larger than expected; both equally problem-atic conclusions. Various researchers are now predicting further substantial drops in the coming weeks. This has fueled worries concerning the growth prospects of the Chinese economy which, given its influence on shipping via imports/exports, is sure to be felt by shipowners globally.
The June 12th peak signaled the start of a decline which has no visible bottom. The rout has to date wiped out almost four trillion USD in market value and while corrective measures did result in a +12% rally, the stock market has slumped once again, making this positive correction rather short. While the Chinese government has committed to stabilizing the situation, investor confidence is currently being shattered, as correctional actions have been largely ineffective, which is exacerbating the problem. With no certain idea of when, or indeed how, the situation might be stabilized, this is certain to have an adverse effect on the wavering Chinese economy as a whole.
China's economy has been slowing down for quite a while. As a result, growth prospects are being revised to lower levels, which should also have a major effect on imports / exports specifically in regards to crude oil/refined petroleum, iron ore, steel and soybeans. The various shipping routes to Chi-na are sure to feel the pressure on their respective freight rates. This could very well push various shipowners to choose different trading routes at less-than-desirable levels in order to compensate.
With the dry bulk market currently enjoying some long awaited improve-ments on rates, this upset could yet again drive down dry market freight rates (especially for capes which have shown s substantial rebound over the past few weeks).
One of the very ,very few certainties regarding the Chinese stock market situation is that the current volatility of the market is sure to persist until we see some stabilization on macro data and/or corporate earnings. The coming months will almost certainly bring wild swings in stock values and, until con-fidence is restored and stability is reached, the effects of the stock market crash on the Chinese economy will not slow down.
It remains to be seen whether Chinese policy makers will be able to mini-mize the damage or if the issue spirals out of their control. Whichever it is, it seems that the ride ahead remains bumpy.
Chartering (Wet: Stable - / Dry: Firm + )
The BDI noted another weekly increase mainly fueled by Capes, while things slowed down a bit just before the weekend. The BDI closed today (28/07/2015) at 1,094 points, up by 4 points compared to Monday’s levels (20/07/2015) and a decrease of 19 points compared to previous Tuesday’s closing (21/07/2015). The crude carriers market noted small declines for a second week in a row, while positive remains strong none-theless. The BDTI Monday (27/07/2015) was at 792 points, a decrease of 67 points and the BCTI at 740, a decrease of 95 points compared to pre-vious Monday’s (20/07/2015) levels.
Sale & Purchase (Wet: Stable + / Dry: Stable + )
Activity in the SnP market slowed down a bit compared to the week prior, while despite the peaking of the summer season, owners across all sectors remain active, with crude carriers proving the most popular candidates. On the tanker side, we had the sale of the “BARNES” (298,306dwt-blt 96, S. Korea) which was sold to Hong Kong based buy-ers for $19.8m. On the dry bulker side, we had the sale of the “NORD RELIABLE” (58,787dwt-blt 08, Philippines), which was sold to Greek own-er, Sea World, for a price in the region of $13.5m.
Newbuilding (Wet: Stable + / Dry: Soft - )
Given the anaemic volumes of ordering of the past months, as well as the fact that we are now at the peak of the summer season, the number of last week’s freshly reported orders was definitely eye catching. Tank-er orders, which unsurprisingly continue to make up the majority of new deals coming to light, were for yet another week ample, while Scorpio’s impressive MR order in Hyundai, could be well marking the turning point as far as newbuilding activity in the segment is concerned. Let’s not forget that following the ordering frenzy during 2013, newbuilding interest for MRs fell sharply, as expectations in regards to prospects for the size were largely not met. After more than six months of continuous-ly healthy earnings, it seems that owners now slowly start believing once again in the segment’s potential and we could soon be seeing more orders surfacing. In terms of recently reported deals Greek owner, Finnish owner, Lundqvist Rederierna has placed an order for one firm Aframax (112,000dwt) at Sumitomo, in Japan, for a price in the region of $52.0m each and delivery set in 2018.
Demolition (Wet: Soft - / Dry: Soft - )
Amidst exceptionally thin activity, plummeting prices and fears of things getting even worse going forward, the demolition market spent yet an-other week in desperate search of positive signs that could support sen-timent. The Indian subcontinent market has seen another $15-20/ldt being shed of local bids, while in some cases the discounts were even bigger, scaring away the few potential sellers left in the market. Where does it stop? This seems to be the question on everyone’s mind right now, especially as the end of the Eid holidays seem to have brought no change of appetite in either Bangladesh or Pakistan. Indian breakers have at the same time stayed on the sidelines for yet another week, with predictions for heavy rains in the following weeks and a weak Ru-pee adding to the already negative sentiment. Cheap Chinese steel ex-ports remains the main market hurdle that is weighing down on any efforts for a positive market reversal, while the fact that the rebound in dry bulk rates has severely hit the supply of tonnage, is viewed as the only price supporting factor at the moment. Prices this week for wet tonnage were at around $160-345/ldt and dry units received about $140-320/ldt.
Weekly Market Report
Issue: Week 30 | Tuesday 28th July 2015
© Intermodal Research 28/07/2015 2
2014 2013
WS
points$/day
WS
points$/day $/day $/day
265k MEG-JAPAN 73 78,991 82.5 93,038 -15.1% 30,469 21,133
280k MEG-USG 42 58,485 45 66,879 -12.6% 17,173 7,132
260k WAF-USG 75 80,269 85 92,081 -12.8% 40,541 26,890
130k MED-MED 75 38,096 80 42,110 -9.5% 30,950 17,714
130k WAF-USAC 73 33,055 72.5 31,971 3.4% 24,835 13,756
130k BSEA-MED 77 41,189 77.5 43,031 -4.3% 30,950 17,714
80k MEG-EAST 120 37,236 132.5 41,433 -10.1% 19,956 11,945
80k MED-MED 105 34,727 80 22,594 53.7% 28,344 13,622
80k UKC-UKC 95 27,110 100 30,876 -12.2% 33,573 18,604
70k CARIBS-USG 115 31,083 112.5 29,814 4.3% 25,747 16,381
75k MEG-JAPAN 155 49,808 162.5 60,012 -17.0% 16,797 12,011
55k MEG-JAPAN 172 43,402 170 42,675 1.7% 14,461 12,117
37K UKC-USAC 165 24,341 205 32,439 -25.0% 10,689 11,048
30K MED-MED 165 24,830 200 34,116 -27.2% 18,707 17,645
55K UKC-USG 135 30,138 145 33,293 -9.5% 23,723 14,941
55K MED-USG 135 28,726 145 31,432 -8.6% 21,089 12,642
50k CARIBS-USAC 150 28,697 150 28,028 2.4% 25,521 15,083
Dir
tyA
fram
axC
lean
VLC
CSu
ezm
ax
Spot Rates
Vessel Routes
Week 30 Week 29$/day
±%
Jul-15 Jun-15 ±% 2014 2013 2012
300KT DH 81.9 80.5 1.7% 73.6 56.2 62.9
150KT DH 59.9 59.0 1.5% 50.2 40.1 44.9
110KT DH 45.4 45.0 0.8% 38.6 29.2 31.2
75KT DH 36.0 35.8 0.7% 32.8 28.0 26.7
52KT DH 27.0 26.5 1.9% 27.2 24.7 24.6
VLCC
Suezmax
Indicative Market Values ($ Million) - Tankers
Vessel 5yrs old
MR
Aframax
LR1
Chartering
The crude carriers market closed off last week on a softer note, with rates for VLs giving up a small portion of the significant gains achieved during the week prior, while the further fall of the price of oil, which lost more than 5% in just a few days, remained for yet another week the main catalyst shaping market sentiment. Oil, which is now traded at a four month low, lost further ground on the back of another sharp fall in the Chinese stock market and added worries of a supply glut, which ate further into investor’s confidence in regards to global demand for the commodity. The further battering of oil prices, naturally meant even cheaper bunkers as well, partly supporting TCE for tankers, while at the same time period business saw improved levels of activity.
The VL market slid quietly into the weekend, with charterers in the Middle East being less active compared to the first half of the month. The West Africa market was equally quiet especially mid-week onwards, while despite this recent slowdown, sentiment for the segment remains extremely firm overall, pointing to a steady market in the following days.
The West Africa Suezmax was overall unchanged last week, while rates in the Black Sea/Med moved further south amidst limited fresh business in the region. Rates for Aframaxes displayed a mixed picture at the same time, with the cross-Med and Caribs markets improving further, while things in the North Sea remained quiet throughout the bigger part of the week.
Sale & Purchase
In the VLCC sector, we had the sale of the “BARNES” (298,306dwt-blt 96, S. Korea) which was sold to Hong Kong based buyers for $19.8m.
In the MR sector we had the sale of the “CAMILLA MAERSK” (44,999dwt-blt 99, S. Korea) which was sold to Nigerian buyers for a price in the region of $10.0m.
Wet Market
Indicative Period Charters
-12 mos - 'JING YU ZUO' 2010 75,568 dwt
- - $20,000/day - Cargill
-36 mos - 'TI HELLAS' 2005 319,300 dwt
- - $40,250/day - Petrobras
20
70
120
170
220
WS
po
ints
DIRTY - WS RATESTD3 TD4 TD6 TD9
Week 30 Week 29 ±% Diff 2014 2013
300k 1yr TC 53,000 47,000 12.8% 6000 28,346 20,087
300k 3yr TC 44,500 42,500 4.7% 2000 30,383 23,594
150k 1yr TC 41,000 35,000 17.1% 6000 22,942 16,264
150k 3yr TC 35,000 33,500 4.5% 1500 24,613 18,296
110k 1yr TC 29,000 28,000 3.6% 1000 17,769 13,534
110k 3yr TC 25,000 25,000 0.0% 0 19,229 15,248
75k 1yr TC 25,000 22,000 13.6% 3000 16,135 15,221
75k 3yr TC 22,500 19,750 13.9% 2750 16,666 15,729
52k 1yr TC 20,000 19,000 5.3% 1000 14,889 14,591
52k 3yr TC 17,000 17,250 -1.4% -250 15,604 15,263
36k 1yr TC 18,000 17,500 2.9% 500 14,024 13,298
36k 3yr TC 16,500 16,250 1.5% 250 14,878 13,907
Panamax
MR
Handy
size
TC Rates
$/day
VLCC
Suezmax
Aframax
60
90
120
150
180
210
240
270
WS
po
ints
CLEAN - WS RATESTC1 TC2 TC5 TC6
© Intermodal Research 28/07/2015 3
0500
1,0001,5002,0002,5003,0003,5004,0004,500
Ind
ex
Baltic Indices
BCI BPI BSI BHSI BDI
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000$
/da
y
Average T/C Rates
AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI
Chartering
The positive sentiment that the Dry Bulk market has been enjoying as of the
previous month, was carried through last week as well, but despite the fact
that the BDI managed to move closer to 1,100 points, a level last ap-
proached in December 2014, there was a strong sense towards the end of
the week that the market was running on less steam. At the same time, a
mixed picture across the different size segments was additionally placing a
limit on expectations for the market moving another substantial leg up,
something that should be more clear during this week. On the negative
side, with the performance of the Chinese stock market still being bearish
for commodities demand and with China having already added more than 3
million metric tonnes to its iron ore stockpiles in July, it will definitely be
interesting to see how long can this restocking be extended for.
Capesize enquiry was particularly strong during the first half of the week,
but things started to slow down in the Pacific just before the weekend. The
paper market remains firm, while this week has also kicked off on a sub-
stantially positive tone for the segment.
The Panamax market kept rising last week, however fresh business volumes
took a hit just before Friday with rates trending sideways. Ample business
out of East Coast South America remained the main force supporting rates.
Fresh enquiry out of the Atlantic resumed last week for the Handy/
Handymax/Supramax market, helping rates to hold around last dones,
while numbers in the Pacific were a bit off for Handysize business compared
to the week prior.
Sale & Purchase
In the Panamax sector, we had the sale of the “KANISHKA” (76,286dwt-blt 05, Japan), which was reported being sold at an auction to Far Eastern buy-ers for a price of $11.2m.
In the Supramax sector we had the sale of the “NORD RELIABLE” (58,787dwt-blt 08, Philippines), which was sold to Greek owner, Sea World, for a price in the region of $13.5m.
Jul-15 Jun-15 ±% 2014 2013 2012
180k 31.1 31.5 -1.2% 47.3 35.8 34.6
76K 17.1 17.0 0.7% 24.5 21.3 22.7
56k 14.6 14.6 0.0% 24.7 21.5 23.0
30K 13.0 13.3 -1.9% 19.5 18.2 18.2
Capesize
Panamax
Supramax
Indicative Market Values ($ Million) - Bulk Carriers
Vessel 5 yrs old
Handysize
Indicative Period Charters
- 4 to 6 mos - 'EVER BEST' 2013 81,717dwt
- Inchon 01/10 Aug - $ 9,300/day - Itiro
- 3 to 5 mos - 'CMB MAXIME' 2010 57,982 dwt
- PG prompt - $ 9,000/day - MUR
Dry Market
Index $/day Index $/day Index Index
BDI 1,086 1,048 38 1,097 1,205
BCI 1,896 $14,603 1,712 $13,573 184 7.6% 1,943 2,106
BPI 1,137 $9,067 1,162 $9,261 -25 -2.1% 960 1,186
BSI 899 $9,402 846 $8,844 53 6.3% 937 983
BHSI 428 $6,294 427 $6,300 1 -0.1% 522 562
17/07/2015
Baltic IndicesWeek 30
24/07/2015Week 29
Point
Diff
2014 2013$/day
±%
180K 6mnt TC 14,000 12,500 12.0% 1,500 22,020 17,625
180K 1yr TC 12,500 12,000 4.2% 500 21,921 15,959
180K 3yr TC 13,250 13,000 1.9% 250 21,097 16,599
76K 6mnt TC 9,250 9,250 0.0% 0 12,300 12,224
76K 1yr TC 8,250 8,000 3.1% 250 12,259 10,300
76K 3yr TC 8,250 8,250 0.0% 0 13,244 10,317
55K 6mnt TC 8,750 8,500 2.9% 250 12,008 11,565
55K 1yr TC 8,000 7,750 3.2% 250 11,589 10,234
55K 3yr TC 8,000 8,000 0.0% 0 11,585 10,482
30K 6mnt TC 6,750 6,750 0.0% 0 9,113 8,244
30K 1yr TC 6,750 6,750 0.0% 0 9,226 8,309
30K 3yr TC 7,000 7,000 0.0% 0 9,541 8,926Han
dys
ize
Period
2013
Pan
amax
Sup
ram
ax
Week
30
Week
29
Cap
esi
ze
2014$/day ±% Diff
© Intermodal Research 28/07/2015 4
Secondhand Sales
Type Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments
LPGNAVIGATOR
MARINER23,272 2000
MITSUI CHIBA
ICHIHARA, JapanB&W Feb-15 20,900 undisclosed Indones ian
LPG AUTEUIL 2588 1995 KITANIHON, Japan Mitsubishi Oct-15 3,444 $ 2.0mS. Korean
(E Marine Co)
Gas/LPG/LNG
Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments
VLCC BARNES 298,306 1996DAEWOO HEAVY
INDUSTRIE, S. KoreaSulzer Mar-11 DH $ 19.8m
Hong Kong
based
AFRANAVIG8
GLADIATOR112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRA NAVIG8 GOAL 112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRA NAVIG8 GUIDE 112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRANAVIG8
GAUNTLET112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRANAVIG8
GRATITUDE112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRANAVIG8
GALLANTRY112,300 2015
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRA NAVIG8 GUARD 112,300 2016
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
AFRA NAVIG8 GRACE 112,300 2015
GUANGZHOU
LONGXUE SHIP,
China
MAN-B&W DH
MR ALPINE MARIE 48,005 2009 IWAGI, Japan MAN-B&W Sep-19 DH $ 22.5m undisclosed
MR SIRIUS I 46,341 1996 AESA SESTAO, Spain B&W Jan-16 DH $ 7.5m undisclosed
MR CAMILLA MAERSK 44,999 1999HALLA ENG & HI -
SAMHO, S. KoreaMAN-B&W DH $ 10.0m Nigerian
Tankers
Hong Kong
based (CSSC)
incl . 10yrs BB and
repurchase option
after 4 yrs , 20%
sel lers ’ credit
en-bloc
$ 304.0m
Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
SEMELA 7,071 2000PEENE-WERFT,
GermanyMaK Nov-15
2 X 150t
CRANESundisclosed
German (Harren
& Partner)
MPP/General Cargo
© Intermodal Research 28/07/2015 5
Secondhand Sales
Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
CAPE CORONA BULKER 179,600 2011HYUNDAI HEAVY
INDS - U, S. KoreaMAN-B&W Apr-16 $ 33.6m Greek (Marmaras)
POST
PMAXWELSUCCESS 93,328 2010
JIANGSU NEW
YANGZIJIAN,
China
MAN-B&W $ 14.8m SS/DD passed
POST
PMAXWELHERO 93,328 2010
JIANGSU NEW
YANGZIJIAN,
China
MAN-B&W $ 14.4m SS/DD due
PMAX KANISHKA 76,286 2005TSUNEISHI CORP -
TADOT, JapanB&W $ 11.2m Far Eastern auction sa le
PMAX LUYANG RISING 76,243 2012YANGFAN GROUP
CO LTD, ChinaMAN-B&W Oct-17 xs $ 15.0m European
UMAXYANGZHOU
DAYANG DY21663,500 2015
YANGZHOU
DAYANG SHIPBU,
China
MAN-B&W4 X 35t
CRANESrgn $22.5m U.S. based
SMAX NORD RELIABLE 58,787 2008TSUNEISHI HEAVY
CEBU, Phi l ippinesMAN-B&W Oct-18
4 X 30t
CRANESrgn $13.5m Greek (Sea World)
HMAX SYMI 45,916 1997HALLA ENG & HI -
SAMHO, S. KoreaMAN-B&W Apr-15
4 X 30t
CRANES$ 3.5m Egyptian (Elamira)
HANDY TUPI MAIDEN 38,852 1992IHI - TOKYO,
JapanSulzer Mar-19
4 X 25t
CRANES$2.75m undisclosed
HANDY OCEAN HONEY 27,209 1995HANJIN HI CO LTD -
ULS, S. KoreaMAN-B&W Jun-15
4 X 25t
CRANES$ 3.4m Chinese
European
Bulk Carriers
Size Name Teu Built Yard M/E SS due Gear Price Buyers Comments
POST
PMAX
NEDLLOYD
DRAKE5,468 2000
AKER MTW,
GermanySulzer $ 14.8m
Greek (Poseidon
Containers)
SUB
PMAX
GUANGZHOU
WENCHONG
GWS448
2,500 2015
GUANGZHOU
WENCHONG SHI,
China
MAN-B&W $ 36.5m Danish
FEEDERHEUNG-A
BANGKOK650 1995
HANJIN HI CO LTD
- BUS, S. KoreaB&W $ 4.0m
FEEDERHEUNG-A
HONGKONG650 1995
HANJIN HI CO LTD
- BUS, S. KoreaB&W $ 4.0m
FEEDER BF VALENCIA 508 1996SIETAS KG,
GermanyMaK undisclosed undisclosed
Malaysian
Containers
© Intermodal Research 28/07/2015 6
Given the anaemic volumes of ordering of the past months, as well as the fact that we are now at the peak of the summer season, the number of last week’s freshly reported orders was definitely eye catching. Tanker orders, which unsurprisingly continue to make up the majority of new deals coming to light, were for yet another week ample, while Scorpio’s impressive MR order in Hyundai, could be well marking the turning point as far as newbuild-ing activity in the segment is concerned. Let’s not forget that following the ordering frenzy during 2013, newbuilding interest for MRs fell sharply, as expectations in regards to prospects for the size were largely not met. After more than six months of continuously healthy earnings, it seems that owners now slowly start believing once again in the segment’s potential and we could soon be seeing more orders surfacing.
In terms of recently reported deals Finnish owner, Lundqvist Rederierna has placed an order for one firm Aframax (112,000dwt) at Sumitomo, in Japan, for a price in the region of $52.0m each and delivery set in 2018.
Newbuilding Market
20
60
100
140
180
mil
lion
$
Tankers Newbuilding Prices (m$)
VLCC Suezmax Aframax LR1 MR
Week
30
Week
29±% 2014 2013 2012
Capesize 180k 49.0 49.0 0.0% 55.8 49 47
Kamsarmax 82k 27.5 27.5 0.0% 30.4 27 28
Panamax 77k 26.5 26.5 0.0% 29.2 26 27
Ultramax 63k 25.0 25.0 0.0% 27 25 25
Handysize 38k 21.5 21.5 0.0% 23 21 22
VLCC 300k 95.5 95.5 0.0% 98.6 91 96
Suezmax 160k 64.5 64.5 0.0% 65 56 58
Aframax 115k 53.0 53.0 0.0% 54 48 50
LR1 75k 46.0 46.0 0.0% 45.9 41 42
MR 50k 36.5 36.5 0.0% 36.9 34 34
190.0 190.0 0.0% 186.0 185 186
77.0 77.0 0.0% 78.4 71 71
68.0 68.0 0.0% 66.9 63 62
45.5 45.5 0.0% 44.3 41 44
Vessel
Indicative Newbuilding Prices (million$)
Bu
lke
rsTa
nke
rs
LNG 160k cbm
LGC LPG 80k cbm
MGC LPG 55k cbm
SGC LPG 25k cbm
Gas
10
30
50
70
90
110
mil
lion
$
Bulk Carriers Newbuilding Prices (m$)
Capesize Panamax Supramax Handysize
Units Type Yard Delivery Buyer Price Comments
1 Tanker 112,000 dwt Sumitomo, Japan 2018Finnish (Lundqvist
Rederierna)$ 52.0m option
1 Tanker 73,500 dwtSTX Shipbuilding, S.
Korea2017 Greek (Pleiades) $ 46.0m LR1, option
2+2+2+2 Tanker 50,000 dwtHyundai Mipo, S.
Korea- Italian (Scorpio Tankers) $ 35.0m
2+2+2+2 Tanker 37,000 dwtHyundai Mipo, S.
Korea- Italian (Scorpio Tankers) $ 32.5m
1 MPP 13,000 dwtEstaleiro Vitoria,
Brazil2016 Brazilian (Posidonia Shpg) $ 17.0m
4+2 MPP 13,000 dwtHudong Zhonghua,
China2017 $ 40.0m
2+2 MPP 13,000 dwtHudong Wenchong,
China2017 $ 40.0m
4+2+2 Container 2,250 teu Yangfan, China 2016 Dutch (Seatrade Groningen) $ 32.0m
2 Cruise 180,000 GT Meyer Turku, Finland 2019-2002 Carnival Group undisclosed LNG powered
Newbuilding Orders Size
Chinese (CSSC Leasing)Heavy-lift, incl. T/C to
Intermarine Inc.
© Intermodal Research 28/07/2015 7
Amidst exceptionally thin activity, plummeting prices and fears of things getting even worse going forward, the demolition market spent yet another week in desperate search of positive signs that could support sentiment. The Indian subcontinent market has seen another $15-20/ldt being shed of local bids, while in some cases the discounts were even bigger, scaring away the few potential sellers left in the market. Where does it stop? This seems to be the question on everyone’s mind right now, especially as the end of the Eid holidays seem to have brought no change of appetite in either Bangladesh or Pakistan. Indian breakers have at the same time stayed on the sidelines for yet another week, with predictions for heavy rains in the following weeks and a weak Rupee adding to the already negative sentiment. Cheap Chinese steel exports remains the main market hurdle that is weighing down on any efforts for a positive market reversal, while the fact that the rebound in dry bulk rates has severely hit the supply of tonnage, is viewed as the only price supporting factor at the moment. Prices this week for wet tonnage were at around $160-345/ldt and dry units received about $140-320/ldt.
The only price surfacing amongst recently reported deals, was that paid by Bangladeshi breakers for the small tanker “VIVA” (1,439dwt-772ldt-blt 82), which received $305/ldt.
Demolition Market
Week
30
Week
29±% 2014 2013 2012
Bangladesh 335 355 -5.6% 469 422 441
India 340 355 -4.2% 478 426 445
Pakistan 345 355 -2.8% 471 423 444
China 160 190 -15.8% 313 365 384
Bangladesh 310 330 -6.1% 451 402 415
India 315 330 -4.5% 459 405 419
Pakistan 320 330 -3.0% 449 401 416
China 140 170 -17.6% 297 350 365
Dry
Indicative Demolition Prices ($/ldt)
Markets
We
t
150
250
350
450
550
$/l
dt
Wet Demolition Prices
Bangladesh India Pakistan China
150
250
350
450
550
$/ld
t
Dry Demolition Prices
Bangladesh India Pakistan China
Name Size Ldt Built Yard Type $/ldt Breakers Comments
ISA DELTA 41,061 - 1984SANOYAS CORP,
JapanBULKER undisclosed Bangladeshi
HUASTECO 38,940 22,772 1960MITSUBISHI NIPPON
Y, JapanOFFSH undisclosed Indian
WILSON MARIN 5,845 2,290 1978 LUERSSEN, Germany BULKER undisclosed Turkish
VIVA 1,439 772 1982 KANMON, Japan TANKER $ 305/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 | [email protected] Ms. Eva Tzima | [email protected]
Mr. Vassilis Logothetis | [email protected]
Finance News
“Precious readies notes issue
Khalid Hashim’s Precious Shipping is lining up a po-tential SGD 500m ($365.67m) notes issue.
The Thai owner has drafted BNP Paribas to lead the multi-currency notes project, with the bank taking on purchase obligations.
While no issue has yet taken place, the bulker owner says any future cash raised will go towards refinanc-ing, funding its capital expenditure requirements and further expansion.
In a statement today the shipowner did not say when the notes would be issued, with the timing to be de-termined by market conditions. Precious has 40 bulk-ers on the water and a 27 strong newbuilding pro-gramme.” (Andy Pierce, Trade Winds)
Commodities & Ship Finance
24-Jul-15 23-Jul-15 22-Jul-15 21-Jul-15 20-Jul-15W-O-W
Change %
10year US Bond 2.270 2.280 2.330 2.350 2.380 -3.0%
S&P 500 2,079.65 2,102.15 2,114.15 2,119.21 2,128.28 -2.2%
Nasdaq 5,088.63 5,146.41 5,171.77 5,208.12 5,218.86 -2.3%
Dow Jones 17,568.53 17,731.92 17,851.04 17,919.29 18,100.41 -2.9%
FTSE 100 6,579.81 6,655.01 6,667.34 6,769.07 6,788.69 -2.9%
FTSE All-Share UK 3,595.91 3,633.40 3,639.52 3,687.94 3,697.47 -2.6%
CAC40 5,057.36 5,086.74 5,082.57 5,106.57 5,142.49 -1.3%
Xetra Dax 11,347.45 11,512.11 11,520.67 11,604.80 11,735.72 -3.3%
Nikkei 20,544.53 20,683.95 20,593.67 20,841.97 20,650.92 -0.5%
Hang Seng 25,128.51 25,398.85 25,282.62 25,536.43 25,404.81 -1.1%
DJ US Maritime 238.41 242.51 246.26 248.52 246.94 -4.3%
$ / € 1.10 1.10 1.09 1.09 1.08 1.3%
$ / ₤ 1.55 1.55 1.56 1.56 1.56 -0.6%
¥ / $ 123.81 123.89 124.08 123.87 124.30 -0.2%
$ / NoK 0.12 0.12 0.12 0.12 0.12 -0.5%
Yuan / $ 6.21 6.21 6.21 6.21 6.21 0.0%
Won / $ 1,171.40 1,162.55 1,157.80 1,148.95 1,156.60 1.8%
$ INDEX 88.47 88.32 88.34 88.19 88.68 -0.1%
Market Data
Cu
rre
nci
es
Sto
ck E
xch
ange
Dat
a
1,000
1,050
1,100
1,150
1,200
1,250
1,300
1,350
40
45
50
55
60
65
70
goldoil
Basic Commodities Weekly Summary
Oil WTI $ Oil Brent $ Gold $
24-Jul-15 17-Jul-15W-O-W
Change %
Rotterdam 468.0 486.5 -3.8%
Houston 516.5 539.0 -4.2%
Singapore 457.0 485.5 -5.9%
Rotterdam 282.0 295.5 -4.6%
Houston 292.5 300.5 -2.7%
Singapore 301.0 310.5 -3.1%
Bunker Prices
MD
O3
80
cst
CompanyStock
ExchangeCurr. 24-Jul-15 17-Jul-15
W-O-W
Change %
AEGEAN MARINE PETROL NTWK NYSE USD 11.57 12.18 -5.0%
BOX SHIPS INC NYSE USD 0.87 0.96 -9.4%
CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.97 7.70 3.5%
COSTAMARE INC NYSE USD 17.56 18.50 -5.1%
DANAOS CORPORATION NYSE USD 6.09 5.86 3.9%
DIANA SHIPPING NYSE USD 7.51 8.11 -7.4%
DRYSHIPS INC NASDAQ USD 0.55 0.68 -19.1%
EAGLE BULK SHIPPING NASDAQ USD 8.19 8.71 -6.0%
EUROSEAS LTD. NASDAQ USD 6.67 0.75 789.3%
FREESEAS INC NASDAQ USD 1.36 2.20 -38.2%
GLOBUS MARITIME LIMITED NASDAQ USD 1.35 1.50 -10.0%
GOLDENPORT HOLDINGS INC LONDON GBX 139.75 130.00 7.5%
HELLENIC CARRIERS LIMITED LONDON GBX 19.00 21.56 -11.9%
NAVIOS MARITIME ACQUISITIONS NYSE USD 4.07 4.33 -6.0%
NAVIOS MARITIME HOLDINGS NYSE USD 3.94 4.33 -9.0%
NAVIOS MARITIME PARTNERS LP NYSE USD 10.27 11.04 -7.0%
PARAGON SHIPPING INC. NYSE USD 1.08 1.15 -6.1%
SAFE BULKERS INC NYSE USD 3.53 3.89 -9.3%
SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.00 1.35 -25.9%
STAR BULK CARRIERS CORP NASDAQ USD 3.01 3.29 -8.5%
STEALTHGAS INC NASDAQ USD 5.77 5.98 -3.5%
TSAKOS ENERGY NAVIGATION NYSE USD 9.44 10.01 -5.7%
TOP SHIPS INC NASDAQ USD 1.15 1.26 -8.7%
Maritime Stock Data
© Intermodal Shipbrokers Co
9
28/07/2015
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