Braemar Seascope. Market Indicator. TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y )

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1 Weekly Chartering Report Thursday, 15 ust 213 Braemar Seascope ket Indicator Wet* Avg Avg YTD 212 Avg TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) TC E ( U S $ / D a y ) 26, NHC AG/EAST TD3-6, 1, -5 11, 13, NHC WAFR/USAC TD5 13,5 8, 5,5 12, 8, NHC NSEA/CONT TD7 9, 4, 6, 7,5 55, CLN AG/JAPAN TC5 4,5 1,5 7,5 8,5 37, CLN CONT/USAC TC2 7, 1, 13,5 1, 38, CLN CARIB/USAC TC3 9, 16, 11,5 9,5 * All rates based on benchmark Baltic Exchange speed and consumption figures Dry Avg Avg YTD 212 Avg BDI 1,6 1, BCI 2,21 1,986 1,58 1,573 BPI 928 1, BSI Container Avg Avg YTD 212 Avg B O X i Financial Avg Avg YTD 212 Avg BRENT CRUDE US$/bbl IFO 38 ROTT US$/tonne YEN/US$ WON/US$ 1,118 1,127 1,172 1,123 US$/EURO All details given in good faith but without guarantee Deep Sea Tankers +44 () Dry Cargo Chartering +44 () Container Chartering +44 ()

2 Crude Chartering VLCC 15/8/213 This week, charterers have shown their dominance of the AG VLCC market. By 9am Monday morning, shipowners favourite Korean charterers threw down the gauntlet and quoted the market for the end month 27-29/ust laydays. Quickly, they had received seven offers and despite owners attempting to resist, charterers managed to convince not just one, but two vessels to accept 274kt x ws31.. These fixtures set the tone for the week; the weight of the tonnage list literally dragging rates to the bottom and only additional commissions and laytime allow any upward movement from this point. Even charterers looking for multiple discharge options are finding ships willing all options with only a minimal premium. Given the depressed state of the AG, West Africa has also been a soft market with charterers holding most of the cards. However, the higher level of the Suezmax market has meant that some charterers have managed to parcel up and fix VLCCs. The prevailing market rates for W Africa/East are 26kt x ws35. and W Africa/UKC-Med ws45., with ws42.5 for USG. Again, it is difficult to see rates moving significantly unless there as a fundamental change to the market. The Indian charterers were quiet out of West Africa after covering their first decade tember requirements last week. Following a lack of activity in the East, the tonnage list is very long and once charterers come into the market for their last decade requirements out of the region next week, rates will come under pressure from the eastern ballasters. We are assessing W Africa/WC India US$2.9m and W Africa/EC India at US$3.15m. The 3 day availability index shows 79 VLCCs arriving at Fujairah, of which 11 are single hull, compared to 74 last month. So far for the month of ust, we have counted a total of 115 fixtures, so there are not many fixtures left for the month but there is a hangover of about 25 vessels into the month of tember. The bunker price today is US$65/tonne, down US$1/tonne from last week. The freight rate for 28,mt AG/USG is ws21., down ws1. point from last week. Owners' earnings are: Assuming one way (excludes any ballast) at 13knots laden, this equates to US$17,75/day (US$21,5/day last week) Round Trip Cape Laden (13knots)/Suez ballast (11knots) US$-6,/day (US$-3,8/day last week) The freight rate for 27,mt Ras Tanura/Ulsan is ws32., down ws1.5 points from last week, so owners' earnings are: Round Trip at 11knots ballast and 13knots laden: US$6,3/day (US$9,15/day last week) Route Size Load Discharge Today s Assessment Last Week s Average TD1 28, Ras Tanura LOOP ws21. ws21. TD2 265, Ras Tanura Singapore ws33. ws33.5 TD3 265, Ras Tanura Chiba ws32. ws33. TD4 26, Bonny LOOP ws4. ws4. TD15 26, West Africa China ws35.5 ws35.5 VLCC AG Weekly Spot Fixtures by Volume Intended Discharge (8-14 ust 213) VLCC AG Monthly Spot Fixtures by Volume Final Destination (y 213) China 22% Spore/Indo 9% West 17% USA 32% India 2% Short East 13% Korea-Japan 35% Long East 7% Braemar Seascope Weekly Chartering Report 2

3 Crude Chartering 15/8/213 Suezmax Despite unusually active Indian chartering activity, the first decade of West Africa cargoes has taken a while to come to the fore. There has been a reasonable amount of VLCC activity which could be at the root of this. However, in anticipation of increased chartering, owners appear to have made a stand against any rate drops. As such, despite a couple of fixtures at ws67.5 for UKC-Med, rates by and large have been maintained around ws7. for this voyage, buoyed in part by some shorter haul voyages to Spain and Portugal. Whilst on the face of it the position list appears well-populated, the reality is that it is dominated by ballasters from the Med, UKC and USG. Whilst the lack of cargoes fixing off the Continent encouraged owners to ballast down initially, a couple have crept out of the woodwork that will reduce their compliance. Equally in the Med a reasonable number of cargoes have taken out much of the position list and the Black Sea is looking firm also. There has been a growing reluctance to ballast over from the USG with rates for trans-atlantic cargoes having risen around five points and Caribs/Up is fixing at fairly healthy levels also. All in all, it adds up to a fairly small population of vessels already ballasting to West Africa or taking up natural positions there which, should these mysteriously absent first decade cargoes materialise, could see charterers paying up. As for the Med itself, there have been a reasonable number of trans-atlantic cargoes fixing around ws52.5 for the gulf, which, coupled with some cross-med cargoes achieving ws on short haul, should hand a little bit of control back to owners. For these short haul trips, we were seeing around ws points more last week, but the momentum has shifted a couple of times recently and the Black Sea market will be most influential moving forward. Here we saw rates drop to around 14kt x ws62.5, although a replacement cargo requiring a large lifter did fix 14kt x ws65.. As we wait for the first stems of tember to come into play, the position list builds up somewhat. However, looking at the big lifters and ships of age for orossiysk, the list quickly diminishes and we may well see a little hike in rates for the first couple of tember stems. After that, the distinct lack of CPC stems (six this coming month, around half the number we would ordinarily anticipate) should play a deflationary role and regulate rates back down. Meanwhile, the recently subdued North Sea market has seen a couple of cargoes injected, but with so many ships building up off the Continent it seems we will witness some low fixing levels at least in the short run. As for the AG, rates to the West looked to have come off somewhat at the start of the week, with 35 fixed for UKC-Med, and a ws37.5 for South Africa later on confirming that this market is well and truly coming off. Looking east, however, the outlook is equally bleak, with 95kt x ws11. and 125kt x ws72. for Kochi a hefty 15 points below what we were witnessing towards the back end of last week. Rates had seemed inflated, however, with port restrictions in Mumbai partly responsible for artificially propping up the market last week. Without these cargoes, and indeed with quite a drop in the number fixed out of the AG in general, the VLCC/Suezmax competition has contrived to put downward pressure on rates and succeeded in doing so. This week in the Americas has been virtually non-existent for Caribbean/trans-Atlantic cargoes on Suezmaxes, with only one reported fixing/failing subs this week. We continue to see a few Caribs/USG fixtures being concluded mid to high ws6s x 14kt and with the stronger Caribbean Aframax market, we expect this volume to sustain through end/ early dates. The east enquiry is again appearing this week and we expect to see some charterers look to consolidate outstanding Aframax stems in addition. Route Size Load Discharge Today s Assessment Last Week s Average TD5 13, Bonny Philadelphia ws67.5 ws67. TD6 135, orossiysk usta ws65. ws , Mediterranean UK Cont ws67.5 ws7. 135, North Sea US Gulf ws52.5 ws , Ras Tanura South East Asia ws7. ws7. Suezmax WAFR Weekly Spot Fixtures by Volume Intended Discharge (8-14 ust 213) Suezmax Weekly Spot Fixtures by Volume Load Area (8-14 ust 213) S America 13% W Africa 6% Carib/EC Mex 3% Black Sea 1% S America 3% AG 14% NW Europe 5% India 25% NW Europe 56% Med/Red Sea 16% W Africa 49% Braemar Seascope Weekly Chartering Report 3

4 Crude Chartering 15/8/213 Aframax With the maintenance over in the Baltic, there has been an inevitable market bounce back this week. As charterers have begun to clear their programmes for the third decade, many ships have been taken quickly and the market has reacted accordingly. Charterers are fixing as far ahead as end month dates and rates are now 1kt x ws7. Baltic/ UKC. The North Sea has followed and is now 8kt x ws92.5 for cross-continent. Looking into next week, there is strong evidence to show that sentiment will remain strong for the short term; a distressed cross-north Sea market cargo will represent where the levels are as tonnage remains very tight for end month dates. It is expected that next week the present firming will be as short lived, as Scotland s chances of beating England at Wembley were. Despite the relentless issues in Libya and with the Kirkuk pipeline, the Med and Black Sea have remained busy and active this week. Rates have remained in a state of flux for the entire week. Differences have been as a result of load ports, voyage distance and flat rates. The call remains at ws8. for TD19, with +ws2.5 depending on load port/ voyage/flat rate. The Black Sea has covered the majority of its third decade stems and with only a few remaining, rates are not expected to move from current levels of 8kt x ws82.5 Black Sea/UKC-Med. Looking into next week, the current state of flux should level back out as tonnage is plentiful for the present enquiry. The American Aframax market has maintained the momentum that began early last week and we believe that it still has plenty of steam left... A short tonnage list, combined with increased volume of trans-atlantic & Caribs/Up cargoes, has enabled owners to push the market to 7kt x ws Early positions with reliable itineraries continue to be hard to find, mainly due to USG tankage delays. We are noticing a build of tonnage on the USAC, but believe these vessels will inevitably ballast towards the UKC-Med. At the start of the week, activity out of the eastern hemisphere started off slowly but gradually picked up by midweek. There were minimal changes in the AG market, compared with the previous week. There was light eastbound activity and TD8 rates were in need of some testing, with rates hovering around the high-ws8s level. Fuel oil movements out of Ras Tanura for Yanbu were reported to be on subs at around US$95,. Meanwhile, short haul voyages across the AG remained healthy with rates steadying around the US$3, level. Activity across the Red Sea has been busy, with a handful of fixtures eastbound and rates steadying around the high-ws9s level. It has been a lacklustre week in the Far East, with Singapore back from a long weekend holiday. Activity has been fairly modest with Indo/Up rates at ws8.. Exports from the NW Shelf have been fairly quiet, with most enquiries going on behind the scenes. With the lack of available tonnage in the region, one unit is reported to be on subs at ws8. for a back haul cargo out of the NW Shelf to China. Route Size Load Discharge Today s Assessment Last Week s Average TD7 8, Sullom Voe Wilhelmshaven ws92.5 ws84.5 TD8 8, Mina Al Ahmadi Singapore ws9. ws9. TD9 7, Puerto La Cruz Corpus Christi ws112.5 ws18.5 TD14 8, Seria Sydney ws77.5 ws78. TD17 1, Primorsk Wilhelmshaven ws78. ws78. TD19 8, Ceyhan Lavera ws8. ws79. Aframax (West of Suez) Weekly Spot Fixtures Intended Discharge Area (8-14 ust 213) Aframax (West of Suez) Weekly Spot Fixtures Load Area (8-14 ust 213) Med 23% USA 16% India East 3% Caribs 17% W.Africa 7% USA 5% Baltic 33% NW Europe 56% Carib/EC Mex 2% N Africa/E Med 7% Med 1% UKC 12% Black Sea 9% Braemar Seascope Weekly Chartering Report 4

5 Jan Jan Jan Crude Tanker Summary Jan 15/8/213 TD Ras Tanura - Chiba TCE 5, 4, 3, 2, , -1, -2, TD Bonny - Philadelphia TCE 4, 3, 2, , -1, TD7-8 - Sullom Voe - Wilhelmshaven TCE 5, 4, 3, , 1, TD9-7 Puerto La Cruz- Corpus Christi TCE 55, 45, 35, , 15, 5, -5, Braemar Seascope Weekly Chartering Report 5

6 Jan Jan Jan Jan Jan Jan US$/day US$/day Projects 15/8/213 Time Charter If we took a holiday, took some time to celebrate, just one day out of life, it would be, it would be so nice. Indeed it would be, Madonna, but then we wouldn t be able to bring you this report, so for now it s all hands on deck. A VLCC was fixed for three months at US$2,/day to a US refiner trader for the purpose of storage. An LR1 was fixed in for six months at US$14,/day to a trading house. An Anglo-Dutch oil major took in two MRs for 3-6 months and 1-2 months, with the latter reported at US$12,5/day. Another MR was fixed for three years with a two year option at US$17,/day to a Southern European state oil company. MRs were also reportedly fixed by an Italian refiner and an oil trader. Vessel Size (' Dwt) Yard Built Period Rate (US$/day) Charterer BW Lion 299 Daewoo 24 3m 2, Koch Starling 73 New Times 28 6m 14, Vitol Mt Navios x3 5 Daesun 214 4yrs 14,5 + profit share Vitol D Amico NB x2 5 Hyundai Mipo yrs 16,75 Total He Chi 49 GSI m RNR Shell Kentaurus 47 Sungdong 27 1yr RNR Trafigura Navig8 Fidelity 46 Sungdong m 12,5 Shell Costanza M 4 Costanza 29 6m 15,5 ERG Alicudi M* 4 Shina 24 3yrs + 2 yrs 17, ENI * Italian flag *Last week's corrected rates 1 yr 3 yr 5 yr US$/day Handy 13, 14, 15, MR 14,25 15, 15,75 LR1 15, 15,5 17, Panamax 13, 14,5 16,5 LR2 15, 16,75 18,25 Aframax 11, 13,5 16,75 Suezmax 15, 18, 22,5 VLCC 18, 21, 25, This week's rates 1 yr 3 yr 5 yr US$/day Handy 13, 14, 15, MR 14,25 15, 15,75 LR1 15, 15,5 17, Panamax 13, 14,5 16,5 LR2 15, 16,75 18,25 Aframax 11, 13,5 16,75 Suezmax 15, 18, 22,5 VLCC 18, 21, 25, 6, 5, 1 Year Time Charter Rates Past 5 Years MR Aframax VLCC 25, 2, 1 Year Time Charter Rates Past 12 Months MR Aframax VLCC 4, 15, 3, 2, 1, 1, 5, Contact tanker.project@braemar.com London: Michael B. Friis / Mike Roberts / Vassilis Kolovos / Freddie Shepherd Braemar Seascope Weekly Chartering Report 6

7 Jan Jan CPP Chartering 15/8/213 Clean Products - East "I want you to get up right now and go to the window, open it, and stick your head out, and yell, "I'm as mad as hell, and I'm not going to take this anymore!" I want you to get up right now. Get up. Go to your windows, open your windows, and stick your head out, and yell." It seems owners have taken this famous movie quote to heart and have started the fight back in earnest. Aided by a flush of cargoes and fixing this week which has seen 15+ LR2s fixed or on subs, more and more LR1 business is coming into the market and MRs are tightening up to allow owners to push for higher rates. To take a moment of reason and reflect, we're not exactly talking about running away with the bank here. LR2s went up points and LR1s have held recent gains, although MRs appear to have seen a real upturn in levels. However, after weeks and weeks of flatulent, lacklustre, disheartening and frankly downright dull markets, we finally have a turnaround. It is possibly over-exuberant to call it a recovery, but if you have to write these things every week then any change in the recent status quo is welcome. Route Size Load Discharge Today s Assessment Last Week s Average TC1 75, Ras Tanura Yokohama ws72.5 ws7. TC5 55, Ras Tanura Yokohama ws92.5 ws9.5 TC4 3, Singapore Chiba ws17.5 ws15.5 TC12 35, WC India Japan ws92. ws93. TC Ras Tanura - Yokohama TCE TC Ras Tanura - Yokohama TCE 35, 25, , 2, 15, , 1, 5, 5, -5, -5, Braemar Seascope Weekly Chartering Report 7

8 Jan Jan CPP Chartering 15/8/213 Clean Products - West It's sad to say, but it hasn't been a week of positives in the western clean markets, with rates across the board softening faster than an ice cream in the midday sun. Rates for the MRs off the Continent have seen a decline throughout the week and are now around 37kt x ws1. for a trans-atlantic TC2 voyage and ws125. for UKC/W Africa, but this is likely to soften. The lack of demand for product has allowed tonnage to build, hastening this fall in rates. Due to this softening of the physical market, TC2 paper has traded down over the week by seven points to ws119. for ust and ws118. for tember. However, looking further forward, sentiment is slightly more positive, with Q4 up to ws and moving into Q1 214, dollar per tonne is up to US$ /tonne. LR1s this week off the Continent have seen a small number of cargoes, with vessels going on subs for UKC/W Africa and Med/east + west option voyages. Rates for 6, tonnes off the Continent for West Africa discharge were reported on subs around the ws range, whilst Med/Red Sea has been reported on a lumpsum rate of US$1.35m. Flexies and Handysize tankers have remained flat, with little fluctuation in rates compared to previous weeks. Steady enquiry and a healthy tonnage list have meant cross-ukc and Baltic/UKC voyages have remained around the 3kt x ws14. for Handies and 22kt x ws18. for the Flexies. It is rather a similar story in the Med, with rates staying level at ws for 3kt for both cross-med and Black Sea/Med voyages. There are still plenty of vessels open and current levels of activity mean that it is unlikely rates will move any time soon. It will be interesting as we move into next week to see if owners will hold firm at ws14., or if some will go lower if the current level of activity prevails. The USG back haul route to the UKC lost about ten Worldscale points this week to finish up around ws8., as the arbitrage closed and export volumes slowed. The arbitrage is back open, but tonnage is plentiful for now. Exports to South America also were sluggish; rates to Brazil dropped down to around the ws12. level as a bottom, but may have recovered a small amount since then. Rates to the Caribbean dropped to about US$6, off of the previous highs of around US$7,. There are a few things going on under the radar, but not enough to move the market in an upwards direction. Route Size Load Discharge Today s Assessment Last Week s Average TC2 37, Rotterdam New York ws11. ws115.5 TC3 38, Aruba New York ws12. ws128. TC6 3, Skikda Lavera ws14. ws141.5 TC Rotterdam - New York TCE TC Aruba - New York TCE 3, 2, , 3, 25, 2, , 15, 1, 5, Braemar Seascope Weekly Chartering Report 8

9 Jan Jan Jan Jan Jan US$/day BCI Dry Cargo Chartering 15/8/213 Capesize The Capesize markets took a huge swing upwards this week, with improved numbers after the holidays in Singapore. The week started with fixtures out of West Australia at low US$8s/tonne and finished with a high of US$9.4/tonne by the end of the week. Some pointed to the typhoon effect, which resulted in the closure of the HK markets by midweek. As a result, charterers were rushing to fix to cover positions which might have otherwise missed their cancelling due to bad weather. Strong rates from the East also helped contribute to the rise in rates, with low US$12,s/day reported initially to a high of low US$17,s/day today on a standard sized vessel. All these numbers coming out of the Pacific have understandably resulted in a certain bullishness among owners. The spill over effect towards the Atlantic was evident, with numbers improving from low US$6,s/day to about US$8,/ day today, despite the continued Drummond strike and the considerable lack of cargo. We expect owners to remain bullish in the coming days, with the paper curve suggesting likewise. The Baltic Capesize Index vs Atlantic & Pacific Earnings 125, 1, 1, Atlantic Pacific BCI 8, 75, 5, 25, 6, 4, 2, -25, Braemar Seascope Weekly Chartering Report 9

10 Jan Jan Jan Jan Jan US$/day BSI Dry Cargo Chartering 15/8/213 Handy/Handymax/Supramax The market in NSA eased off last week after a steep increase at the beginning of the month, with Supramaxes seeing levels above US$2,/day to the Med. The lack of spot cargoes in the area caused the market to drop considerably, with Supramaxes being rated well below US2,/day mark. However, with the continuation of the healthy USG market and numerous orders appearing in the area with forward dates, the market is expected to pick up towards the beginning of the next month. The Baltic Supramax Index vs Atlantic & Pacific Earnings 5, 5, 4, Atlantic Pacific BSI 4, 3, 3, 2, 2, 1, 1, Braemar Seascope Weekly Chartering Report 1

11 Asia / Australia ket News 15/8/213 Asia / Australia News Australia's Newcastle port sees record high coal exports in Newcastle Port exported 142.6m tonnes of coal in the fiscal year ended e 3, up 17% from 121.9m tonnes a year earlier. The port continued to be a major supplier of coal to Asia, with Japan, China, Korea and Taiwan accounting for 94% of coal exports. The exports tonnage mostly thermal coal and some semi-soft coking coal marks a record high for Newcastle port, which has three coal terminals. A total of 4,631 vessel movements in and out of the port were recorded by the port authority last fiscal year. Iron ore prices have climbed to their highest level in five months. The rise is on the back of heavy steel re-stocking in China, fuelled by an improvement in its property sector. Prices reached US$142.8/tonne on Wednesday. One major factor supporting the price being the low inventories at steel mills; typically steel mills would like to keep 3 to 4 days [stock] but recently they've been at 2 days or lower, forcing steel mills to buy at the increased price. World record wheat crop Global wheat production will top 7m tonnes for the first time this year. The US Department of Agriculture has tipped a record wheat crop of 75.4m tonnes, boosted by extra production in Kazakhstan, the Ukraine and the European Union. As such, Australia can expect more competition in the wheat market, with most of the extra production from these countries expected to be exported. Australian wheat production was left unchanged at 25.5m tonnes and exports remained at 19m tonnes. Indonesian coal shippers concerned new royalty rule could hurt cash flows Indonesian coal shippers are concerned about a new Indonesian regulation requiring them to pay mining royalties upfront before shipping their cargoes, arguing it could hamper their cash flows. Major Indonesian coal companies currently pay a 13.5% coal royalty, while small and mid-sized producers pay 3-7%. However, there is a proposal to impose a uniform coal royalty of 13.5%. Queensland sees growing surplus of port capacity for coal exports Spare shipment capacity for coal exports is an emerging issue for port companies and coal exporters in the Australian state of Queensland. At Gladstone port, some coal exporters have agreed to swap their unused shipment capacity with other expanding port users. Gladstone currently has 8m tonnes/year of coal shipment capacity in its two terminals, Barney Point and RG Tanna, but only target to ship 65m tonnes of mostly coking coal and some thermal coal exports. When complete, the Wiggins Island terminal will have a shipment capacity of 84m tonnes/ year, boosting Gladstone port's coal export capacity to 15m tonnes/year. Buying spree pushes Asian spot coking coal prices to 3-month high Strong buying interest in China over the extended weekend pushed Asian spot metallurgical coal prices to the highest since mid-. On an FOB Australia basis, Platts assessed premium low-vol (PLV) HCC at $143/tonne on Wednesday. Spot transactions concluded over the last few days illustrated a continued bullish turn in market conditions, particularly in China. Greater met coal buying coincided with reasonably low steel inventories, wider profit margins at mills and the expectation of better steel demand in tember and ober. Surge in wheat exports to China Experts are tipping Australian wheat sales to China to top 4m tonnes. China is on the verge of becoming Australia s biggest wheat customer, while demand from the largest export destination is also looking strong. Indonesia is the No. 1 destination for wheat but a severe drought in China s south, floods in the north and rising demand from the middle-class have triggered a sharp jump in demand for wheat to make bread, pastry and other foods. Last season, China imported about 2.4m tonnes of wheat from Australia but in the six years before that, the figure was about 1m tonnes a year. Indonesia ore ban supporting nickel price Jakarta s strictly enforced ban on Indonesian exports of unprocessed ores is due to be in place by January 214 and would be subject to very strict rules and regulations. Copper production and exports will also be hit by the ban, with the world s second largest copper mine being located in Indonesia. However, the ban could help support demand for refined nickel and help prices recover next year. Indonesia is the world's top exporter of nickel laterite ore, which is mostly shipped to China to be used as a cheap substitute for nickel in stainless steel. Braemar Seascope Weekly Chartering Report 11

12 Jan Jan Jan Jan Jan Jan Container Chartering 15/8/213 Containers Unsurprisingly, the container market has experienced another uneventful week with limited activity and no movement of any significance in our BOXi. What little market chat that has emanated has been focused CMA CGM's en bloc fixture of two widebeam Panamaxes at US$14,/day for around 12 months; a rate at which a similar unit recently fixed, but for a short period. One would therefore assume this to be on the lower side to what owners were hoping for 12 months, and it is a long way off the high teens levels that we saw in the spring. But at least owners have covered two prompt positions in arguably the quietest segment of an already flat summer market. With traditional baby Panamax rates slipping further still to around the US$8,/day level, owners would have been wary of the glut of older design tonnage in the neighbouring sizes and their comparably cheap charter slot costs, albeit not when bunker costs are factored in. The sizes below remain much healthier, with the 2,8TEU gearless category continuing to post modest gains while the 1,7TEU sector is perhaps the closest to being in supply:demand equilibrium. Indeed, we have seen even 'non-eco' 1,7TEU units commanding higher rates than baby Panamaxes, meaning over double the charter slot cost, as this workhorse of the feeder segment continues to benefit from its trade flexibility. How long this steep gradient can remain will be interesting to see; historically, these differentials even out in the medium term as charterers try to adapt to capitalise on slot cost bargains. It is certainly not all doom and gloom on the demand side. With positive economic data coming out of the US and with the key Asia-Europe trade showing significant year-on-year growth over the 2nd quarter and in particular its final month, and with tightening supply already evident in certain sectors, one could have every reason to anticipate an autumn rally. Vessel (TEU/HMG) Index + / - 77/44 TEU (GL) 17.5 k ,43/66 TEU (GL) 18 k Eco ,1/715 TEU (G) 19 k ,7/1,125 TEU (G) 19.5 k ,74/1,3 TEU (G) 2.5 k ,714/1,25 TEU (G) 19 k Bkk Max ,5/1,9 (G) 22 k ,8/2, TEU (GL) 22 k ,5/2,5 TEU (GL) 23 k ,25/2,8 TEU (GL) 24 k ,5/4,2 TEU (GL) 25 k ,5/4,8 (GL) 25 k 4.6. Index Total The Box Index B O X i Braemar Seascope Weekly Chartering Report 12