Container Intelligence Monthly

Transcription

1 Clarkson Research Services Container Intelligence Monthly Volume 16, No. 7 July-214 ISSN: Containership Timecharter Rate Index Jun-4 Jun-5 Jun-6 Jun-7 Jun-8 CONTENTS Jun-9 Jun-1 Jun-11 Jun-12 Jun-13 Jun-14 Industry News p2 Container Trade & Capacity p3 Charter Market p4 Containership Fixtures p5 Secondhand Prices p6 Sale & Purchase Market p7 Newbuilding Market p8 Containership Building pi Container Fleet Age Profile pii Container Fleet Characteristics piii Container Fleet Ownership piv-v Container Freight Market pvi Container Freight Rate Indices pvii Liner Trade Indicators pviii Liner Investment p9 Demolition Market p1 Economic & Financial Indicators p11 Container Trade Outlook p12 World Container Ports p13 World Container Capable Fleet p14 World Container Capable Orderbook p15 Container Commentary p16 Clarkson Research Services Limited (CRSL) is respected worldwide as the most authoritative provider of intelligence for global shipping. CRSL is part of the Clarksons group, the world's largest shipbroking and integrated shipping services provider. For more detail about the Clarksons group visit Container Supply and Demand Container Trade % growth (teu) Total Container Capacity % growth (teu) Vancouver Oakland Long Beach Los Angeles Containership Market Indicators 213 (est) 4.9% 214 (f'cast) 6.% 213 (est) 4.7% 214 (f'cast) 4.8% 6-12m 1,7 teu grd TC $7,5/day (up 3% y-o-y) 2,75 teu gls 1yo Price $1.25m 13,5 teu N/B Price $116.5m (up 9% y-o-y) Orderbook % of Fleet 19.5% Dalian Tianjin Qingdao Busan Tokyo Liangyungang Shanghai Xiamen Ningbo Guangzhou Kaohsiung Shenzen Hong Kong Laem Chebang Manila Ho Chi Minh Port Klang Tanjung Pelepas Singapore Tanjung Priok Selection of major container ports Melbourne New York/New Jersey Savannah Colon Balbao Sydney San Juan Santos Buenos Aires Felixstowe Zeebrugge Le Havre Valencia Algeciras Rotterdam Vancouver Oakland Long Beach Hamburg Bremen/Bremerhaven Antwerp Lagos Gioia Tauro Marsaxlokk Port Said Luanda Durban Los Angeles Dubai Salalah Colon Balbao New York/New Jersey Savannah Jawaharlal Nehru San Juan Colombo Selection of major container ports Santos Buenos Aires

2 Industry News According to the latest CTS data, the volume of European box imports from Asia rose by 13.2% y-o-y in May to 1.37m TEU. This brings volumes in the first five months of the year to 6.17m TEU, a 8.% y-o-y increase. On the backhaul leg however, trade reportedly expanded by just 2.% y-o-y in May, to hit.58m TEU, bringing year-to date volumes to 2.85m TEU, a 1.5% y-o-y increase. Meanwhile, according to US customs sources, volumes on the eastbound Transpacific trade rose by an estimated 6.8% y-o-y in May to 1.13m TEU, bringing the total in the first five months of the year to 5.36m TEU, a 5.1% y-o-y increase Peak-leg Asia-US box volumes M TEU.75 Jan-12 Jan-13 Jan-14 Following the Chinese regulatory authorities rejection of the proposed P3 Alliance, Maersk Line and MSC have signed a new 1- year vessel-sharing agreement (VSA) to cover the mainlane East-West trades: Far East - Europe, Transpacific and Transatlantic. Dubbed 2M, the agreement will include around 185 vessels of a combined 2.1m TEU, operating on 21 services. Maersk will contribute around 11 ships, accounting for 55% of total 2M capacity. The partnership will have a smaller market share than the aborted P3 Network, accounting for an estimated 35% of Far-East Europe capacity. The carriers will terminate all other VSAs on the mainlane trade routes. Under a standard VSA, Maersk and MSC will operate their ships independently, as well as having separate sales, pricing, marketing and procurement functions. The duo hope to start their partnership in early 215, subject to regulatory approval. According to the Shanghai Containerised Freight Index, spot rates for boxes shipped from Shanghai to Europe fell to $1,32/TEU on the 11 th July, down from $1,416/TEU at the start of the month. So far this year the rate on the route has averaged $1,277/TEU, 17% higher than the full year 213 average of $1,9/TEU. Meanwhile, Shanghai- Mediterranean rates fell to $1,567/TEU on 11 th July down from $1,7/TEU at the start of the month. Elsewhere, freight rates for boxes shipped from Shanghai to the US West Coast sat at $1,824/FEU on 11 th July. So far this year rates on the route have averaged $1,9/FEU, 6% lower than the full year 213 average of $2,28/FEU. Meanwhile, spot rates to the US East Coast were recorded at $3,598/FEU in early July and have averaged $3,331/FEU so far this year, marginally above their 213 average of $3,285/FEU. Non-mainlane freight rates continue to enjoy mixed fortunes. According to the SCFI, Shanghai-Santos rates rose to $1,314/TEU on 11 th July, their highest level since February and more than double the June lows. However, the ytd average on the route of $1,9/TEU remains 27% below the 213 average of $1,384/TEU. Elsewhere, Shanghai - Melbourne rates sat at $622/TEU, down 24% on their 213 average. However, box rates to Lagos have averaged $1,895/TEU so far this year, just 2% down on their full year 213 average of $1,926/TEU. In the opening six months of 214, container throughput at the port of Singapore reached 16.5m TEU, a 4.4% y-o-y increase. Meanwhile, handling at Hong Kong totalled 11.3m TEU over the same period, a rise of 5.2% y-o-y. Combined LA & Long Beach Throughput M TEU Total combined container throughput at the ports of Los Angeles and Long Beach reached 7.36m TEU in the first half of 214, an increase of 6.1% y-o-y. Total loaded imports to the ports rose by 7.5% y-o-y to 3.77m TEU in 1H 214, while total loaded exports increased by a slower 3.2% y-o-y to 1.83m TEU over the same period. 12% 9% 6% 3% Idle Containership Fleet % of total fleet capacity, TEU Source: CRSL, AXS Alphaliner % Total containership capacity in lay-up stood at.24m TEU by mid- July, according to data from Alphaliner. 131 idle ships account for 1.4% of overall containership fleet capacity. However, charter owned tonnage accounts for 9% of the idled capacity, including 49 charter owned ships of 1,-1,999 TEU, and 37 of TEU. The US Federal Maritime Commission granted unanimous approval for the CKYHE carriers (COSCO, K- Line, Yang Ming, Hanjin, Evergreen) to discuss the expansion of their cooperation to Transpacific and Transatlantic trades. The alliance has been operating on Asia- Europe trades since Q1 214, and, while most of the lines have existing slot-sharing agreements on US routes, they will now begin to explore a more formal alliance. Clarkson Research Services Page 2 Jul-14

3 Container Trade and Capacity 8 m.teu lifts Container Demand 4 ' TEU Containership Supply 7 6 Others & 215 deliveries and scrapping are full year forecasts; contracting is ytd Orders Placed Asia 2 15 Capacity Delivered Scrapping Europe 5 N.America Container Est. million teu lifts/teu Trend Fundamentals Volumes % p.a. m. teu lifts N America STEADY 3% N Europe STEADY 2% Mediterranean STEADY 5% China (incl. HK) STRONG 6% Asia excl. China STEADY 5% Other STEADY 5% TOTAL, m. teu lifts STEADY 5% m. teu* Transpacific STEADY 4% Far East-Europe STEADY 4% Transatlantic STEADY 3% Non-mainlane East-West' STRONG 5% North-South STEADY 5% Other'' STRONG 7% TOTAL TRADE, m. teu STRONG 5% % growth 7.2% 3.% 4.9% 6.% 6.7% Container, teu, end Capacity % p.a. Containerships <3, teu 4,34 4,193 4,9 4,25 3,975 WEAK -2% 3-7,999 teu 7,169 7,347 7,428 7,298 7,19 STEADY % 8-11,999 teu 2,85 3,119 3,541 4,94 4,755 STRONG 14% 12,+ teu 1,5 1,574 2,55 2,654 3,335 STRONG 35% Total Containerships 15,319 16,233 17,114 18,7 19,254 STRONG 6% % growth 7.9% 6.% 5.4% 5.6% 6.5% Multi-Purpose 1,417 1,464 1,56 1,518 1,542 STEADY 2% Ro-Ro WEAK -3% Other Liner WEAK -8% Total Container Capacity 17,578 18,449 19,322 2,255 21,458 STRONG 5% % growth 6.8% 5.% 4.7% 4.8% 5.9% Market Percentage growth Trend Supply/Demand Outlook Balance Container Trade 7% 3% 5% 6% 7% STRONGER... Total Container Capacity 7% 5% 5% 5% 6% STRONGER... Balance % -2% % 1% 1% POSITIVE... Global container trade is currently projected to expand by 6.% in 214, with 6.7% growth forecast for next year. Mainlane trade growth is expected to hit 5.% this year, with European and US import growth proving spritely so far this year. Far East-Europe volumes are currently projected to register growth of 6.2% in full year 214, while eastbound Transpacific trade is projected to grow by 5.4% over the year. Non-mainlane East- West trades are expected to improve following a lacklustre 213, and are projected to expand by 5.8% this year to 21.3m TEU. Elsewhere, total North-South volumes are forecast to grow by 5.7% in 214. Meanwhile, total intra-regional trade is expected to grow by 6.9% this year, with the largest component of global trade - intra-asian volumes - projected to grow by 7.7% to 48.2m TEU. Global container capable supply is expected to increase by 4.8% this year. As such, it looks likely to be outstripped by global demand growth. The amount of capacity in lay-up has fallen seasonally to.24m TEU, the lowest for three years, but 82% of this is charter owned tonnage, surplus capacity that helps to supress rates in the charter market. Meanwhile, freight rates on individual trade lanes remain volatile, and are largely determined by the management of supply growth, which itself is dictated by the speed of cascading down from the mainlanes as high-capacity ships are delivered apace. However, improving demand overall, along with the elevated levels of scrapping (.28m TEU was sold for demolition in 1H 214), should help to alleviate some of the supply pressure over the course of the year. In addition, the still thin orderbook in the smaller sizes could be good news for the charter market in the medium-term. * Trade lane figures include volumes in both directions. ' Trade between N.America/Eur./Far East and M.East/ISC. '' Intra-regional and south-south trade. Clarkson Research Services Page 3 Jul-14

4 Charter Market 6, 5, 4, 3, 2, 1, Containership Timecharter Rates ($/Day) 44 teu g'less 275 teu g'less 17 teu grd Jan ' Jan '1 Jan '2 Jan '3 Jan '4 Jan '5 Jan '6 Jan '7 Jan '8 Jan '9 Jan '1 Jan '11 Jan '12 Jan '13 Jan '14 Charter Market Commentary The containership charter market continued to see a relatively healthy level of activity in the second half of June and into July. In the Post-Panamax sector, a number of relets found employment, with a robust level of demand and a falling number of idle vessels. Demand also held solid in the Caribbean feeder market which has proved stable so far this year. Overall however, the Asian market continued to account for the largest share of fixture activity, although a significant portion of these deals have been the renewal of existing contracts. The 2,-3, TEU market has seen the bulk of activity here, with periods typically flexible up to six months. In the Post-Panamax sector, the guideline 3-year timecharter rate for a 9, TEU containership was $39,5/day in June, slightly higher than the full year 213 average of $37,625/day. Meanwhile, the guideline 6-12 month 4,4 TEU Panamax charter rate rose to $8,75/day in June, exceeding the 213 average of $8,696/day. In the smaller sizes, the guideline rate for a gearless 2,75 TEU boxship rose slightly to $7,25/day, with the guideline rate for a geared 2,5 TEU vessel at the same level. Post-Panamax Avg $/Day $/Day Post-Panamax Market Market * Mar Apr May Jun This Month 3 Year Timecharter Post-Panamax 9, teu g'less 37,357^ 37,625 39,583 4, 4, 4, 39,5 DOWN. -1.3% Post-Panamax 6,8 teu g'less 29,857^ 27,542 24,5 24, 24, 25, 24,5 DOWN. -2.% Panamax Avg $/Day $/Day Panamax Market Market * Mar Apr May Jun This Month 6-12 Months Timecharter Panamax 4,4 teu g'less 9,942 8,696 7,817 7,5 7,75 8,5 8,75 UP BY 2.9% Panamax 3,5 teu g'less 7,179 7,21 7,558 7,35 7,85 7,75 7,8 UP BY.6% Sub-Panamax & Avg $/Day $/Day Sub-Pmx/Feeder Market Feeder Market * Mar Apr May Jun This Month 6-12 Months Timecharter Sub-Panamax 2,75 teu g'less 6,742 6,829 7,5 6,8 7,25 7,1 7,25 UP BY 2.1% Sub-Panamax 2,5 teu geared 6,879 7,592 7,442 7,4 7,4 7,25 7,25 STEADY.% Sub-Panamax 2, teu g'less 6,48 6,483 6,967 7,1 7,1 7,1 7, DOWN. -1.4% Handy 1,7 teu geared 6,292 7,96 7,383 7,25 7,4 7,4 7,5 UP BY 1.4% Handy 1, teu geared 5,358 6,321 6,517 6,6 6,6 6,35 6,35 STEADY.% Feedermax 725 teu geared 4,383 4,842 5,17 5, 5, 5, 5, STEADY.% Feeder 35 teu geared 3,742 3,971 4, 4, 4, 4, 4, STEADY.% Containership T/C Rate Index UP BY.3% y-o-y growth -32% 7% 2% 8% 4% 2% 1% Multi-Purpose Avg $/Day $/Day MPP Market Market * Mar Apr May Jun This Month 6-12 Months Timecharter MPP (liner) 17, dwt 8,988 8,358 7,625 7,65 7,5 7,5 7,5 STEADY.% MPP (liner) 9, dwt 6,42 5,875 6, 6, 6, 6, 6, STEADY.% MPP T/C Rate Index STEADY.% y-o-y growth -7% -5% -4% -7% -1% % -6% * Average year to date. ^212 average basis July-December data. Clarkson Research Services Page 4 Jul-14

5 Containership Fixtures Latest Containership Timecharter Fixtures Ship Vessel Name Teu Dwt Year Spd Cons Delivery Charter Period Charterer Rate Type Nom. Hom. Tonnes Built Kts t/day Loc/Typ $/Day G'Less Adrian Schulte , FE 12 Months MSC 2,25 G'Less Margrit Rickmers , FE 5-6 Days K-LINE 1, G'Less Charles Dickens , FE Days ZIM 9,55 G'Less Northern Precision , FE 45-9 Days TS LINES 9,25 G'Less Quadriga , SHANGHAI 8-12 Months CMA CGM 7,8 G'Less Northern Defender , FE 6 Months CMA CGM 7,7 G'Less SFL Hunter , FE 4-5 Months PIL 7, G'Less Teng Yun He , FE 3-5 Months OOCL 7,3 G'Less Aruna Ipsa , FE 3-5 Months SINOKOR 7,6 G'Less Sinar Bromo , BANGKOK 8-1 Months RCL 6,65 G'Less Italian Express , SINGAPORE 6 Months NYK 7,55 G'Less FPMC Container , S KOREA 1 Month SINOKOR 6,1 G'Less Klara , COLOMBO 12 Months FAR SHIPPING 7,5 G'Less WMS Vlissingen , FE 4-6 Months MEL 4,75 G'Less Contship Ace , FE 3-12 Months GSL 5, G'Less K-Water , PUSAN Days KMTC 4,7 Grd Cape Marin , JEBEL ALI 4-6 Months MSC 7,5 Grd Bonny , FE 1-3 Months HANJIN 7,4 Grd Northern Enterprise , SINGAPORE 3-5 Months PIL 7, Grd Merkur Gulf , CONT 9 Months CMA CGM 8,2 Grd Niara , JEBEL ALI 2-3 Months SIMATECH 7,5 Grd Kamala , FE 6 Months KMTC 7,5 Grd Hansa Altenburg , FE 3-6 Months PIL 7,5 Grd Nefeli , FE 3-5 Months KMTC 7,5 Grd Bahamian Express , FE 2-4 Months PIL 7,3 Grd Lissy Schulte , COLOMBO 3-5 Months SEACON 7,5 Grd Szczecin Trader , FE 3-6 Months OEL 7,5 Grd Wehr Blankenese , FE 3-5 Months OOCL 7,65 Grd Jork Valiant , MED 4-6 Months CMA CGM 6,5 Grd Vega Sachsen , CARIBS 6 Months SFL 7,15 Grd Stadt Bremerhaven , MED 2-5 Months CMA CGM 6,3 Grd Karin Rambow , SINGAPORE 3-5 Months MCC 5,7 Clarkson Standard Container Ship Types Timecharter Rate Data Fully Cellular Containerships Feeder geared 34/365 teu 22/24@14t 12.5k on /475 dwt Feedermax geared 7/75 teu 43/45@14t 16½k on /85 dwt Handy geared 1/11 teu 63/66@14t 18k on /13 dwt Handy geared 165/175 teu 18/112@14t 19k on /23 dwt Sub-P max g less 185/21 teu 155/165@14t 19½ k on /3 dwt Sub-P max geared 24/26 teu 195/25@14t 22k on /36 dwt Sub-P max g less 26/29 teu 2/21@14t 22k on /38 dwt P max g less 34/36 teu 255/265@14t 22½k on /45 dwt P max g less 43/45 teu 32/335@14t 24k on /62 dwt Multi-Purpose (MPP) Vessels MPP (liner) 17, dwt 9 teu MPP (liner) 9, dwt 65 teu Newbuilding & Secondhand prices are also quoted for a selection of the fully cellular containership types listed above. Price Data Containership Newbuilding/Secondhand Handy grd 1/11 teu 64/74@14t Handy grd 165/175 teu 13/14@14t v Sub-P max grd 24/26 teu 19/2@14t# Wide Beam gls 36/38 teu 3@14t Panamax gls 43/45 teu 28/29@14t Wide Beam gls 48 teu 36@14t Panamax gls 51 teu 33@14t Post P max gls 66/68 teu 49@14t* Post P maxgls 85/91 teu 71/73@14t^ Post P maxgls 13 teu V Resale; 5yo+ 115/125@14t, #Resale; 5yo+ 185@14t, *Resale; 5yo+ 45/47@14t, ^Resale; 5yo 64/66@14t. Multi-Purpose(MPP)Newbuilding MPP (liner) 17, dwt 98 teu MPP (liner) 28, dwt 17 teu Ro-Ro Newbuilding & Secondhand (euros) Ro-Ro 23/25lm 2k 6.8-7m FHT 7/1 dwt Ro-Ro 35/4lm 2k 6.8-7m FHT 1/12 dwt Clarkson Research Services Page 5 Jul-14

6 Secondhand Prices Liner Vessel End Year, $m.* Three Month Asset Play in Focus Prices Jun Trend Long Term Price Trends CONTAINERSHIPS 1, teu grd 5yo STEADY % 1, teu grd 1yo STEADY % 1, teu grd 15yo HIGHER 6% 1,7 teu grd 5yo STEADY -2% 1,7 teu grd 1yo STEADY 3% 1,7 teu grd 15yo STEADY -3% 2,5 teu grd 5yo STEADY -3% 2,5 teu grd 1yo LOWER -5% 2,5 teu grd 15yo STEADY 1% 2,75 teu gls Resale STEADY % 2,75 teu gls 5yo STEADY % 2,75 teu gls 1yo STEADY -3% 2,75 teu gls 15yo STEADY -3% 3,5 teu gls^ 5yo STEADY % 3,5 teu gls^ 1yo STEADY % 3,5 teu gls^ 15yo STEADY % 3,8 teu gls' Resale LOWER -4% 4,5 teu gls^ 5yo STEADY % 4,5 teu gls^ 1yo HIGHER 4% 4,5 teu gls^ 15yo HIGHER 6% 4,8 teu gls' Resale STEADY -4% 5,1 teu gls^ 5yo STEADY % 5,1 teu gls^ 1yo HIGHER 6% 6,6 teu gls' Resale STEADY % 6,6 teu gls' 5yo STEADY % 6,6 teu gls' 1yo STEADY % 8,8 teu gls' Resale STEADY % 8,8 teu gls' 5yo STEADY % 1 Yr Old Cont'ship Index STEADY % RO-RO TRAILERS, euro m. Ro-Ro 25 lm 5yo STEADY % Ro-Ro 25 lm 1yo STEADY % Ro-Ro 25 lm 15yo STEADY % Ro-Ro 4 lm 5yo STEADY % Ro-Ro 4 lm 1yo STEADY % Ro-Ro 4 lm 15yo STEADY % Most prices are sourced from Clarkson brokers, based on the ship specifications on page 5, or Clarkson Research models. We would urge readers to use all the prices quoted here with caution and to contact us directly for information about specific prices. Container Index based on Jan '96 =1. *Ro-Ro prices in euro m. ^Panamax. 'Post-Panamax/wide-beam. Volume of Year This Year's Sales Jun'' Trend 1% 8% 6% 4% 2% % -2% -4% -6% -8% Jun-6 Jun-4 Containership Price Index % change y-o-y Jun-5 Jun-6 Jun-7 Jun-8 Jun-9 Jun-1 Jun-11 Containership Sales Activity No. sales Jun-7 US$m Jun-8 Jun-9 Jun-1 Jun-11 Jun-12 Secondhand Investment Jun-12 Jun-13 Jun-13 Estimated investment, 3 month moving average. Jun-14 Jun-14 Containerships, ' teu teu HIGHER 17% 1-2,999 teu LOWER -18% 3, &+ teu (Panamax) HIGHER 273% 3-7,999 teu (Post-Pmax) HIGHER 46% 8-11,999 teu (Post-Pmax) #DIV/! ##### 12, &+ teu (Post-Pmax) LOWER ##### Containership Total (' teu) HIGHER 72% y-o-y growth -31% -1% 18% Containership Total (no. sales) HIGHER 28% y-o-y growth -46% 66% -6% MPP/Ro-Ro (' teu) LOWER -7% Other Liner (' teu) LOWER -49% Liner Total (' teu) HIGHER 64% Jun-6 Jun-7 Jun-8 Jun-9 Jun-1 Jun-11 Jun-12 Jun-13 Jun-14 Note: This year's trend based on annualised figures. ''Data to end of month. Clarkson Research Services Page 6 Jul-14

7 Sale & Purchase Market Commentary German owners Hammonia Shipping purchased a wide-beam resale (built 214, Weihai Samjin, 5,1 TEU/3,555 at 14t) from Horst Zeppenfeld for a reported price of around $43m. The vessel is scheduled to be delivered in August. Meanwhile, Sinokor continued its interest in the Panamax sector with the purchase of the Conti Anping (built 26, Hyundai H.I., 4,298 TEU/2,81 at 14t) for $14m from Conti Reederei. Also in the Panamax sector, at the end of June, the Manhattan (built 25, Hyundai Samho, 5,18 TEU/3,3 at 14t) was sold by NSC Schiffahrt to clients of Cyprus Maritime for $15m. Elsewhere, reefer operator Seatrade has acquired 2 x 2,2 TEU resales from Deutsche Afrika Linien for $3m each. The geared vessels which are to be fitted with 5 reefer plugs, are being built at Chinese yard Zhejiang Yangfan, and are scheduled to be delivered in 215 and 216. In the feeder sector, the Leo Authority (built 1997, Imabari S.B., 1,56 TEU/1,21 at 14t) was sold by Tokei Kaiun to Chinese interests for $4.5m. Similarly, the Vulkan (built 1996, Stocz. Szczecin, 1,728 TEU/1,12 at 14t, 3 x 4t cr.) was sold by Komrowski to undisclosed interests for $4.5m. Finally, in the MPP sector, the Ruijin (built 1991, Nishi S.B., 8,36 dwt, 214 TEU, 1 x 25t d.) was sold by COSCO Jiangxi to undisclosed interests for $1.4m. Recently Reported Secondhand Sales Vessel Type Vessel Name Dwt Teu Nom/Hom Built Yard Date Price (mill.) Buyers MPP 1x25t D Ruijin 8, Nishi S.B. Co. Jun '14 $1.4 Undisclosed interests FCC N/B RESALE HULL 41 61,45 5,1 3, Weihai Samjin Jun '14 Clients of Hammonia Shpg. FCC N/B RESALE HULL* 3, 2,2 215 Zhejiang Yangfan Jun '14 $3 Clients of Seatrade Groninegen FCC N/B RESALE HULL* 3, 2,2 216 Zhejiang Yangfan Jun '14 $3 Clients of Seatrade Groninegen FCC Conti Anping 53,627 4,298 2,81 26 Hyundai H.I. Jun '14 $14 Clients of Sinokor FCC Leo Authority 24,336 1,56 1, Imabari S.B. Jun '14 $4.5 Chinese interests FCC 2x45t C Devon Strait 13,76 1, Jinling Shipyard Jun '14 Undisclosed interests FCC 3x4t C Vulkan 22,983 1,728 1, Stocz. Szczecin Jun '14 $4.5 Undisclosed interests MPP 2x4t C Narjes 5, Marmara Tersanesi May '14 $1.4 Iraqi interests FCC YM Utmost* 11,597 8,28 6,33 26 Hyundai H.I. May '14 $58 Undisclosed interests FCC SC Rotterdam* 5,953 4,253 2,85 22 Samsung H.I. May '14 $11 Clients of Sinokor FCC SC Tianjin* 5,953 4,5 2,8 21 Samsung H.I. May '14 $11 Clients of Sinokor FCC YM Unison* 11,411 8,28 6,33 26 Hyundai H.I. May '14 $58 Undisclosed interests FCC SC Qingdao* 5,953 4,5 2,8 21 Samsung H.I. May '14 $11 Clients of Sinokor FCC 2x4t C Westerkade 8, Cassens Werft May '14 $2 Undisclosed interests FCC 3x4t C Merkur Beach 22,996 1,728 1, Stocz. Szczecin May '14 $3 Undisclosed interests MPP 2x36t C Alex Y 5, Damen Shipyards May '14 $2.15 Undisclosed interests FCC Santa Paola 66,821 5,42 3,32 25 Hyundai H.I. May '14 $14 Clients of Sinokor FCC Pugwash 63,645 4,545 3, Hyundai H.I. May '14 $9 Clients of MSC FCC 3x45t C E.R. Lubeck 33,588 2,474 1,889 2 Volkswerft May '14 $9.65 Clients of Costamare Shipping FCC 3x4t C Conti Valencia* 34,51 2,456 1, Daewoo May '14 Undisclosed interests FCC 3x4t C Conti Cartagena* 33,29 2,446 1, Daewoo May '14 Undisclosed interests MPP 2x5t C Musashi 13, Shin Kochi Jyuko May '14 $8 Undisclosed interests FCC 2x45t C HS Schubert 23,58 1,732 1, Guangzhou Wenchong Apr '14 $11.8 Greek interests FCC 2x36t C PAC Natuna* 11, Tachibana S.B. Apr '14 $6.2 Clients of Salam Pacific FCC 2x4t C New Blessing* 1, Jurong S.Y. Apr '14 # Clients of Salam Pacific FCC 3x45t C Merian 2,336 1,452 1, Kv. Warnowwerft Apr '14 $4 Clients of CIH FCC 3x45t C Neptun* 29,24 1,835 1, Stocznia Gdynia Apr '14 $5 Clients of Chartworld Shpg. Corp. FCC 3x45t C Uranus* 29,24 1,835 1, Stocznia Gdynia Apr '14 $5 Clients of Chartworld Shpg. Corp. FCC 3x4t C ACX Marguerite 24,386 1,613 1, Shin Kurushima Apr '14 $5 Clients of Kanway Line FCC 2x4t C Imari 24,376 1,613 1, Shin Kurushima Apr '14 $5 Clients of Kanway Line FCC 3x4t C Conti Bilbao 33,33 2,456 1, Daewoo Apr '14 $5.75 Norwegian interests FCC 2x4t C Sawasdee Jakarta 2,72 1,512 1, Thyssen Nordsee Apr '14 $3.5 Clients of OEL MPP 2x4t C Norstar 9, Varna Shipyard Apr '14 Undisclosed interests MPP 2x3t C Amy C* 13, Kyokuyo S.Y. Apr '14 $7.25 Greek interests MPP 2x3t C Heleen C* 13, Kyokuyo S.Y. Apr '14 $7.25 Greek interests FCC 2x35t C Ville de Dubai 11, Qingshan Shipyard Apr '14 $1.9 Undisclosed interests FCC Rafflesia 24,581 1,675 1, Kanasashi K.K. Mar '14 Undisclosed interests * En bloc sales. # En bloc price shown under price of first ship of bloc. Clarkson Research Services Page 7 Jul-14

8 Newbuilding Market Recently Reported Orders S Type Date Dwt/Teu Delivery Builder Price Owner/Manager* 5 PCC Jun-14 3, 217 Toyohashi SB K-Line 5 PCC Jun-14 3, 217 Toyohashi SB K-Line 5 RoPax May-14 1, Dec 216 Flensburger S.B $m 92. SeaRoad Shipping 5 Container May-14 33, 2,4 216 Bohai Shipbld. NOSC 5 Container May-14 33, 2,4 216 Bohai Shipbld. NOSC 5 Container May-14 33, 2,4 216 Bohai Shipbld. NOSC 5 Container May-14 3,35 2, Zhejiang Yangfan Schulte Group 5 Container May-14 3,35 2, Zhejiang Yangfan Schulte Group 5 Container May-14 3,35 2, Zhejiang Yangfan Schulte Group 5 Container May-14 3,35 2, Zhejiang Yangfan Schulte Group 5 PCC May-14 5, 216 Jinling Shipyard Anji Automotive Log 5 PCC May-14 23, Sep 215 Hyundai H.I. Hyundai Glovis 5 PCC May-14 23, Nov 215 Hyundai H.I. Hyundai Glovis 5 PCC May-14 23, Jan 216 Hyundai H.I. Hyundai Glovis 5 PCC May-14 23, Mar 216 Hyundai H.I. Hyundai Glovis 5 Container May-14 2, 1,4 216 Yangzhou Guoyu Nordic Hamburg 5 Container May-14 2, 1,4 216 Yangzhou Guoyu Nordic Hamburg 5 MPP Apr-14 7, 5 Jan 216 Jiangzhou Union SB Unknown German Owner 5 MPP Apr-14 7, 5 Mar 216 Jiangzhou Union SB Unknown German Owner 5 MPP Apr-14 7, 5 May 216 Jiangzhou Union SB Unknown German Owner S = Status, where: 5= confirmed order, 16 = unconfirmed order, 17 = option. * The Primary Reference Company, as used in the Clarkson Fleet Database i.e. the company with the main commercial responsibility for the ship. Latest Newbuilding Market News Summer in the Northern Hemisphere has seen a marked slowdown in contracting activity in the containership sector. At the start of July Arkas Line ordered an additional two 2,5 TEU containerships at Zhejiang Ohua. This follows their initial order for two units in April, taking the series to four vessels. Delivery is scheduled for 216 and 217. In the PCC sector, K-Line placed an order for two 7,5 ceu vessels at Japanese yard Toyohashi Shipbuilding. The ships are scheduled to be delivered in 217. So far this year, 16 PCCs of a combined 12,2 ceu have been ordered. This includes 12 ships of 7,+ ceu, two vessels of 3,8 ceu, and two smaller ships of 2, ceu each. In the MPP sector, 33 vessels were contracted in the first half of 214, all at Chinese shipyards. 22 of these ships are of 12-12,5 dwt, while four very large 55,5 dwt MPP vessels were contracted at Taizhou Kouan in April, with delivery set for Newbuilding Year End, $m.* Three Month Prices Jun Trend Containerships Feedermax 725 teu grd STEADY 2.1% Handy 1, teu grd STEADY 2.5% Handy 1,7 teu grd STEADY.6% Sub-Panamax 2,5 teu grd STEADY 1.% Sub-Panamax 2,75 teu gls STEADY 1.1% Post-Panamax 3,7 teu gls HIGHER 4.7% Post-Panamax 4,8 teu gls HIGHER 4.3% Post-Panamax 6,6 teu gls STEADY 1.% Post-Panamax 8,8 teu gls STEADY.8% Post-Panamax 1, teu gls STEADY 1.2% Post-Panamax 13, teu gls STEADY.7% Container NB Price Index STEADY 2.% Ro-Ro Vessels, euro m. 2,-2,5 Lane m HIGHER 4.1% 3,5-4, Lane m HIGHER 4.1% Dry Cargo MPP 17, dwt STEADY.8% MPP 28, dwt STEADY.6% PCC 6,5 cars STEADY 1.8% Prices assume a "European spec." and 2/2/2/2/2% payments, basis "competitive yards" quotations. Prices relate to market contracts where these have taken place and to brokers' best estimates when no contracts have occurred, and can vary as to country of build, delivery date and ship spec. 48 teu based on wide beam vessel (previously 45 teu), 43 teu on Panamax beam. See page 5 for further details. *Ro-Ro prices in euro m. Newbuilding Price Index Containership Newbuilding Contracts Clarkson Research Services Page 8 Jul Jan '5 Index, Dec'96 = 1 Containership Newbuilding Index Jan '6 Jan '7 No. Contracts Jan '8 Jan '9 Jan '1 Jan '11 Jan '12 Jan '13 Jan '14 Jun '8 Dec '8 Jun '9 Dec '9 Jun '1 Dec '1 Jun '11 Dec '11 Jun '12 Dec '12 Jun '13 Dec '13 Jun '14

9 Containership Building Shipbuilder...Country Containership Orderbook, July ,999 teu 3-7,999 teu 8-11,999 teu 12,+ teu Total No. teu No. teu No. teu No. teu No. teu No. teu No. teu No. teu Hyundai H.I. South Korea Daewoo South Korea Samsung H.I. South Korea HHIC-Phil. Inc. Philippines CSBC Taiwan Jiangsu New YZJ China P.R Imabari S.B. Japan Dalian Shipbuilding China P.R STX Shipbuild. South Korea Japan Marine United Japan Hudong Zhonghua China P.R Jinhai Heavy Ind. China P.R New Times S.B. China P.R Hyundai Samho South Korea Huangpu Wenchong (W) China P.R STX Dalian China P.R Jiangnan Changxing China P.R Shanghai Jiangnan China P.R Zhejiang Ouhua China P.R Zhejiang Yangfan China P.R Daewoo-Mangalia Romania Jiangsu Rongsheng China P.R Shanghai S.Y. China P.R CIC (Jiangsu) China P.R Nantong Cosco KHI China P.R Jiangnan SY Group China P.R Zhoushan Wuzhou China P.R Hyundai Mipo South Korea Rongcheng Shenfei China P.R Weihai Samjin China P.R Sainty SB (Yangzhou) China P.R Taizhou Catic China P.R Eisa Shipyard Brazil Bohai Shipbld. China P.R Aker Philadelphia United States Gen. Dynamics NASSCO United States Dae Sun S.B. South Korea Jinling Shipyard China P.R Kyokuyo S.Y. Japan Tsuneishi Zhoushan China P.R Recently Reported Deliveries Type Vessel name Date Flag Teu Dwt Owner Yard Price GCargo Glory Pioneer Jun-14 SG. 8,777 Glory Navigation Co. Shin Kochi Jyuko PCC Glovis Symphony Jun-14 M.I. 19,41 Hyundai Glovis Hyundai Samho MPP Kota Bistari Jun-14 SG. 1,4 27, Pacific Int. Lines Kouan S.B. Container KMTC Mumbai Jun-14 PA. 5,4 65,128 KMTC HHIC-Phil. Inc. $m 45. Container Hanjin Tabul Jun-14 H.K. 1, 115,86 Seaspan Corp. Jiangsu New YZJ $m 98. Container CMA CGM Danube Jun-14 MA. 9, ,8 CIMC Dalian Shipbuilding $m 82. Container Lagarfoss Jun-14 AT ,15 Eimskip Rongcheng Shenfei $m 25. Container Niledutch Breda Jun-14 NE. 3,58 47,2 Nile Dutch Africa Shanghai S.Y. $m 51. Container Kota Sabas Jun-14 SG. 3,9 51,5 Pacific Int. Lines Dalian Shipbuilding $m 4. Container Wide Bravo Jun-14 M.I. 5,466 65,152 Rickmers Reederei HHIC-Phil. Inc. GCargo Thorco Lineage Jun-14 PH. 2 16,949 Thorco Shipping Honda Zosen K.K MPP Al Hadbaa Jun-14 JO. 7 17,5 ISCMT Dae Sun S.B. $m 24.5 Container Hyundai Drive Jun-14 M.I. 13,1 145,979 Hyundai M.M. Daewoo $m 128. PCC Gravity Highway Jun-14 BS. 21, Ray Shipping Hyundai Mipo Container Thalassa Niki Jun-14 SG. 13,86 152,344 Enesel S.A. Hyundai H.I. $m 114. Container Hanjin Ami Jun-14 H.K. 1, 115,26 Seaspan Corp. Jiangsu New YZJ $m 98. Container Cap San Sounio Jun-14 SG. 9, ,479 Enesel S.A. Hyundai H.I. $m 118. Container Hammonia America Jun-14 LI. 4,896 56,62 Hammonia Reederei Zhejiang Ouhua Clarkson Research Services Page i Jul-14

10 Container Fleet Age Profile FCC Fleet Number, Teu Fleet Ratios Profile Age Profile (years) Age Profile (years) Jul 2 yrs+/ O'book/ (by TEU size range) Fleet Fleet 1/999 (Feeder) % 1% 1/1999 (Handy) ,711 11% 6% 2/2999 (Sub-P'max) ,653 7% 9% Sub-3, ,45 5 4,42 1% 7% 3/3999 (Panamax) % 2% 4/4999 (Panamax) ,331 3% 5&+ (Panamax) Panamax 3, , ,635 5% 1% <5 (Post-Panamax) % 28% 5/5999 (P-P'max) ,321 8% 6/ ,487 4% 7/ % Post-Panamax <8, ,85 1,61 1,225 3,712 % 9% 8/ ,22 1,157 2,368 14% 9/ % 1/ % Post-Panamax 8-11, ,748 1,872 3,867 33% 12/ ,634 1,674 14% 14/ % 16/ % 18& % Post-Panamax 12, ,225 2,39 65% TOTAL ,664 2,697 6,79 6,59 17,646 3% 2% MPP Fleet Number, Teu Fleet Ratios Profile Age Profile (years) Age Profile (years) Jul 2 yrs+/ O'book/ (by TEU size range) Fleet Fleet 1/ % 1% 2/ % 1% 35/ % 2% Feeder % 1% 5/ % 9% 75/ % 3% Feedermax % 7% 1/ % 3% 125/ % 8% 15& % 9% Handy % 2% TOTAL ,513 18% 8% Note : FCC fleet is the fully cellular containership fleet. MPP fleet is the multi-purpose vessel fleet. Containership Fleet Age Profile Multi-Purpose Fleet Age Profile, teu, teu 7, 6,59 6 6,79 6, , 4 4, 3, 2, 2,697 1, , Clarkson Research Services Page ii Jul-14

11 Container Fleet Characteristics FCC Fleet Avg. Size/Age Average Average Geared Profile Nom Hom Dwt Dwt Years Speed/Cons Dimensions (m.) % (by TEU size range) Teu Teu per Teu Knots t/day LOA Beam Draft N. Teu 1/999 (Feeder) , % 1/1999 (Handy) 1,46 1,12 19, % 2/2999 (Sub-P'max) 2,539 1,932 35, % Sub-3, 1,363 1,31 18, % 3/3999 (Panamax) 3,49 2,491 44, % 4/4999 (Panamax) 4,381 2,947 55, &+ (Panamax) 5,66 3,335 66, Panamax 3,+ 4,188 2,861 53, % <5 (Post-Panamax) 4,412 3,294 58, % 5/5999 (P-P'max) 5,551 4,163 68, /6999 6,549 4,832 8, /7999 7,289 5,733 91, Post-Panamax <8, 5,818 4,376 72, % 8/8999 8,396 6,45 12, /9999 9,349 7, , / ,593 7, , Post-Panamax 8-11,999 8,889 6,699 17, / ,69 8,47 129, / ,371 1,89 157, / ,2 12,1 186, &+ 18,27 194, Post-Panamax 12,+ 13,735 9, , TOTAL 3,474 2,33 43, % MPP Fleet Avg. Size/Age Average Average Heavy Lift Profile Nom Hom Dwt Dwt Years Speed/Cons Dimensions (m.) 5t & over (by TEU size range) Teu Teu per Teu Knots t/day LOA Beam Draft % N. Teu 1/ , % 2/ , % 35/ , % Feeder , % 5/ , % 75/ , % Feedermax , % 1/1249 1, , % 125/1499 1, , % 15&+ 1,782 1,368 29, % Handy 1,437 1,38 26, % TOTAL , % All parameters as of current month. Containership Fleet with Gear Multi-Purpose Fleet with Heavy Lift 5t & Over 6% 5% 54% 52% By TEU range 1% 8% By TEU range 8% 4% 4% 6% 52% 67% 67% 52% 3% 2% 21% 4% 34% 1% 2% 13% % % % 2% Clarkson Research Services Page iii Jul-14

12 Container Fleet Ownership Top Operator Owned end'12 end '13 Fleets Fleet Fleet Orderbook Schedule Jul-14 Jul-14...teu No. teu No. teu No. teu No. teu % Flt Maersk 241 1,38, ,417, ,58, ,97 13% 36,54 19,62 54,81 2 MSC , , ,626 3 CMA-CGM , , , ,8 11% 48, 6,3 7,5 4 Evergreen , , , ,992 1% 25,468 25,524 5 China Shpg 8 48, , , , 27% 68, 57, 6 COSCO , , , ,772 16% 26,772 47, 7 NOL/APL , , ,67 1 9,2 2% 9,2 8 Hapag-Lloyd , , ,621 9 OOCL , , , ,552 8% 35,552 1 Hanjin , , ,85 1 4,662 1% 4, K Line , , , ,35 24% 69,35 12 NYK , , ,2 13 Yangming , , , ,972 11% 13,986 13, Hamburg-Sud , , , ,9 28% 41,4 21, 1,5 15 Mitsui OSK , , ,91 16 PIL , , , ,9 18% 3,9 23,4 15,6 17 UASC , , , , 122% 18, 146, 98, 18 Wan Hai 7 161, , , HMM 2 119, , , ,2 16% 26,2 2 Zim , , , CSAV 17 17, , , ,1 69% 65,1 22 HDS Lines 26 92, , , RCL 37 49, , , Arkas 29 41, , , , 1% 5, 25 SITC 27 25, , , ,6 63% 3,6 14,4 3,6 Note : Operator owned fleets are fleets owned by service providers. Top Charter Owner end'12 end '13 Fleets Fleet Fleet Orderbook Schedule... Jul-14 Jul-14...teu No. teu No. teu No. teu No. teu % Flt C-P Offen , , ,22 2 Seaspan 69 41, , , , 78% 5, 2, 11, 3 Blue Star Holding , , ,39 4 Peter Dohle , , , ,28 12% 5,28 5 Costamare , , , ,83 4% 22,2 115,81 6 Danaos Shpg 64 36, , ,773 7 Norddeutsche , , ,478 8 Rickmers Group 69 38, ,728 14% 27,33 16,398 9 NSB N'elbe , , ,312 1 Schulte Grp 48 16, , , ,2 13% 7,5 11,75 9,4 11 Zodiac M'time , , , ,932 83% 46,96 61,996 65,3 12 Eastern Pacific Shpg , , ,816 17% 31, Shoei Kisen , , , , 38% 7, 14 Technomar 22 81, , , ,6 11% 13,6 15 Hansa T'hand 32 17, , , ,764 16% 19, MPC Capital 16 51, , ,73 17 N.S. Lemos 2 27, , ,893 58% 64, NSC Schiff , , , ,12 32% 18,6 18,6 19 T Schulte 34 11, , , ,45 4% 3,45 2 Hermann Buss 62 99, , , Kaisho Shpg 14 82, , , Leonhardt &B 5 9, , , ,646 5% 3, Conti Reed , , , Gebab 3 97, , , Synergy Marine 16 7, , ,43 Note : Charter owner fleets are owned by non-service providers. NSB N'elbe includes some shipmanagement interests. Clarkson Research Services Page iv Jul-14

13 Liner Investment Containership Deliveries Investment Scene This Month Deliveries,teu 71 fully cellular containerships of a combined 512,232 TEU were ordered in the first half of 214. This includes contracts for 2 ships of 12,+ TEU, and a further 16 ships of 8-11,999 TEU. In addition, there have been orders for 34 ships in the 1,-2,999 TEU range so far this year. However, ordering this year has been either large or small, with no orders for ships of 3-7,999 TEU. Meanwhile, data available at the start of July indicates that 12 containerships of a combined 813,8 TEU were reported delivered in the opening six months of 214. This included 13 vessels of 12,+ TEU, of a combined.19m TEU, and 16 ships in the 8-11,999 TEU sector totalling.15m TEU. The Post-Panamax 3,- 7,999 TEU sector saw 13 deliveries in the first half of the year, while 1 ships of sub-3, TEU hit the water. Overall, 1.45m TEU is currently projected to be delivered in full year 214, 41% of which on ships of 12,+ TEU, and 38% on ships of 8-11,999 TEU. Liner Vessel No. teu Ordering Trends Ordering Jun* Jun* This Year %** Containerships, teu Feeder/Max teu LOWER % Handy/Sub-P'max 1-2,999 teu HIGHER... 16% Panamax 3, &+ teu #DIV/! #DIV/! Post-Panamax 3-7,999 teu LOWER... -1% Post-Panamax 8-11,999 teu LOWER % Post-P'max 12, &+ teu LOWER... -3% Containership Total LOWER % % growth 544% 116% -69% 217% 566% 213% -77% 365% Multi-Purpose LOWER % Other Liner LOWER... -1% Liner Total LOWER % Investment Avg Est. Contract Value $m Total Est. Value $bn Investment Trends Trends Jun* Jun* This Year %** Containerships Feeder/Max teu HIGHER... 75% Handy/Sub-P'max 1-2,999 teu HIGHER... 11% Panamax 3, &+ teu ##### 47 7 ##### ##### #DIV/! #DIV/! Post-Panamax 3-7,999 teu ##### LOWER... -1% Post-Panamax 8-11,999 teu LOWER % Post-P'max 12, &+ teu LOWER % Containership Total LOWER % % growth -12% 32% -35% 38% 468% 185% -8% 338% Multi-Purpose LOWER... -1% Other Liner HIGHER % Liner Total HIGHER % Liner Vessel No. teu Delivery Trends Deliveries Jun* Jun* 214 (f) 215 (f) Containerships, teu Feeder/Max teu Handy/Sub-P'max 1-2,999 teu Panamax 3, &+ teu Post-Panamax 3-7,999 teu Post-Panamax 8-11,999 teu Post-P'max 12, &+ teu Containership Total % growth -4% -28% 8% -2% 26% -13% 4% 6% 9% 7% Multi-Purpose Other Liner Liner Total '' Tankers 5k+ dwt plus spec. tankers 1k+ dwt. $ bn values for tankers 1k+ dwt. * To end of the month quoted. ** Annualised figures for current year vs previous year. Note: 'Other Liner' ordering subject to revision as teu capacity of orders becomes known. Delivery projections account for historical and expected delivery performance. Clarkson Research Services Page 9 Jul-14

14 Demolition Market Recently Reported Scrapped Type Vessel Name Dwt Ldt Built Owner Date Break-Up Loc. Buyer $/ldt $m Ro-Ro Tyrusland 16,675 1, Swedish Orient Jun-14 India India Container Reya 17,52 6, Shreyas Shpg. Ltd. Jun-14 India India MPP Danny Rose 9,66 3, Neptune PL Jun-14 India India GCargo New Fortune 6,831 2, New Legend Group Jun-14 Bangladesh Bangladesh Container MSC Jade 43, Mediterranean Shpg. Jun-14 India India 484 Container King Justus 18,395 6, Konig & Cie. Jun-14 Turkey As is Las Palmas Container Tai He 45, Shanghai Panasia Jun-14 PRC Old sale Container MSC Fuji 34, NSB Niederelbe Jun-14 India India Container Xiang Jin 18, China Shpg. Cont. Jun-14 PRC Old sale Container Xiang Bin 16, China Shpg. Cont. Jun-14 PRC Old sale Container Lian Feng 9, CULines Jun-14 PRC PRC Ro-Ro El Morro 16, Sea Star Line Jun-14 U.S.A. Old sale Container Golden Voyage 3,24 1, Sinokor Merchant Mar Jun-14 Japan Japan Container Sun Road 57,94 22, Dainichi-Invest Jun-14 India India MPP Golam E Mostafa 16,223 4, Mr Trading M/S Jun-14 Bangladesh Old sale MPP Lorcon Zamboanga 6, Magsaysay Maritime Jun-14 Bangladesh Bangladesh Container Sea Breezer 8,965 4, Ocean Shell Shpg Jun-14 India India Container Long Mu Wan 44,585 12, POS Line Jun-14 PRC PRC Container Takeko 9, COSCON Jun-14 PRC PRC Container MSC Hina 21,37 1, Mediterranean Shpg. Jun-14 India India Demolition Market News Twelve containerships of a combined 23,25 TEU were sold for demolition in June, bringing the total in 1H 214 to 14 ships of 281,128 TEU. This included 14 Post-Panamax ships of a combined 68,944 TEU and 35 Panamaxes of 3,+ TEU with a totalling 139,96 TEU. Current projections suggest that.5m TEU of boxship capacity will be scrapped in 214, with.37m TEU expected to be sold for demolition in 215. The average age of the containerships sold for scrap in the first half of 214 was 21.2 years, including 24 ships of less than 18 years old. In comparison, the average age of boxships scrapped last year was 22.8 years. An early July emergency budget in India has cut import duty from 5% to 2.5%, which may lead to a $1-15/ldt increase in demolition prices there. Alternative scrapping locations are likely to struggle to compete with the expected boost in prices Scrapping Price Trends US$ per ldt Dry Cargo, Indian Sub-Cont 2 TEU Containership, India Size & Year Forecast Type Jun* Containerships, teu teu ,999 teu , &+ teu (Panamax) ,999 teu (Post-Pmax) , &+ teu (Post-Pmax) Containership Total % growth -41% 329% 33% 12% -26% 1 Jan-7 Jan-8 Jan-9 Jan-1 Jan-11 Jan-12 Jan-13 Jan-14 Containership Demolition Activity 5 ' teu MPP/Ro-Ro ( teu) Other Liner ( teu) Liner Total ( teu) Scrap Year End ($/ldt) This Year Prices 211^ Latest % India UP... 11% Bangladesh UP... 1% Far East DOWN -7% Note: Scrap prices ($/ldt) above based on prices for a c. 2, teu Containership vessel from 212. ^End 211 prices based on a Tweendeck vessel. *Year to end of the quoted month. Clarkson Research Services Page Jul-14