WEEKLY SHIPPING MARKET REPORT

Transcription

1 WEEKLY SHIPPING MARKET REPORT WEEK 19 (1 st May to 8 th May 2015) Legal Disclaimer The information contained herein has been obtained by various sources. Although every effort has been made to ensure that this information is accurate, complete and up-to-date, Shiptrade Services S.A. does not accept any responsibility whatsoever for any loss or damage occasioned or claimed, upon reliance on the information, opinions and analysis contained in this report. Research compiled by: Shiptrade Services S.A. Market Research on behalf of the Sale & Purchase, Dry Cargo Chartering and Tanker Chartering Departments. For any questions, please contact: market-research@shiptrade.gr Shiptrade Services S.A. Tel snp@shiptrade.gr 1st Floor, 110/112 Notara Street Fax chartering@shiptrade.gr Piraeus, Greece tankerchartering@shiptrade.gr

2 Top Stories: Shipping, Commodities & Global Economy Shipping: One Global Sector Where Greece Beats Germany And Is A Big Investor Opportunity Germany may be giving Greece a lot of economic lessons these days. But there is one global sector where Germany can take a lesson or two from Greece: merchant shipping, where Greece occupies the second world ranking, well ahead of Germany. That s the old news. The new news is that the gap between Greece and Germany widened recently with the acquisition of 24 German vessels by Greek companies. Now for the big investor opportunity. Greek merchant shipping companies listed in US exchanges trade at bargain prices. Costamare, for instance, trades at around 10 times next year s earnings, Navios Maritime Partners, close to 15 times next year s earnings, and Tsakos Energy Navigation around 7 times next year s earnings. I particularly like Costamare Inc. one of the world s leading owners and providers of containerships for charter. The Company has 40 years of history in the international shipping industry and a fleet of 67 containerships, with a total capacity in excess of 438,000 TEU, including 11 newbuild containerships on order. Twelve of their containerships, including nine newbuilds, have been acquired pursuant to the Framework Agreement with York Capital Management, by vessel-owning joint venture entities in which they hold a minority equity interest. What makes Costamare an appealing investment are two things: First, its strong financials that make it stand out among its peers large operating margins, a healthy revenue and profit growth, and a hefty dividend of 6.7%. Second, their reliance on long-term leases rather than on spot rates the company signs long-term shipping leases as soon as new vessels are ordered. Last year, for instance, the company ordered nine newbuilds with capacities between 9,000 and 14,000 TEU pursuant to their joint venture agreement with York Capital Management ( York). The newbuilds are scheduled to be delivered between the 4th quarter of 2015 and the third quarter of The Company holds an equity interest ranging between 25% and 49% in each of the relevant vesselowning entities. Long term time charters have been agreed on for the five 14,000 TEU capacity newbuilds with members of the Evergreen Group ( Evergreen ), which represent total contracted revenue for the joint venture of $850 million, assuming exercise of the owner s options. This week, the company reported firstquarter earnings of $26.3 million or 38 cents per share, beating the 31 cents per share analysts expected not bad given the sluggish economic environment for the merchant shipping industry. That s why I ll stay with the company. Source: Forbes Shipping industry points to more Asian economic weakness Steep drops in Asian shipping rates are adding to fears about slowing trade, as a fall in export orders from countries across the region depresses demand for ships carrying 90 percent of world trade. Rates for container ships carrying finished goods are down 30 percent this year, close to record lows despite a recent rebound, and rates for bulk carriers used to transport goods such as iron ore and coal are also near historic lows. Although shipping rates also reflect sector-specific factors such as vessel orders and seasonal demand swings, analysts say they can act as a bellwhether of global trade given that the vast majority of goods are transported by ship. Everything is signaling a further slowdown in the global trade cycle. Nothing suggests a turnaround soon, said Frederic Neumann, co-head of Asian Economics Research at HSBC in Hong Kong, pointing to low export orders in Asia. We re not even seeing a big pick-up following the U.S. West Coast strike closure earlier this year, he added, referring to a dispute that snarled trans-pacific maritime trade until a settlement on Feb. 20. The declines come as China s factories suffered their fastest drop in activity in a year in April as new orders shrank, while exports have also fallen in countries such as South Korea and Indonesia. Shipping rates remain very soft, and Asian exports very weak, much weaker than export orders data would suggest, Westpac Bank said in a report. While a slight pick-up of trading was expected in April following the U.S. strike and the Lunar New Year holiday in Asia, which both reduced trade flows, the overall seaborne and economic outlook was weak, said Robert Rennie, Westpac Global Head of Market Strategy. Shipping markets tell me a lot about what s going on. China is the key source of momentum and I genuinely don t see much momentum there. Growth looks soft and we re not yet seeing any recovery, he said. The Shanghai Containerized Freight Index is down 30 percent this year and close to record lows, while the Baltic Dry Index for bulk carriers is near historic lows. Tanker rates are faring better but are expected to run into headwinds. Source: Reuters (Additional reporting by Jane Xie; Editing by Richard Pullin) Shiptrade Services S.A. Weekly Market Report 2

3 Secondhand Sales Bulk Carriers Sale & Purchase Name Dwt YoB Yard SS Engine Gears Price (mill.) SBI Belicoso SWS, Chn - B&W - $43.5 Dewi Laksmi Lan Hai Chuang Ye Lan Hai Tuo Zhan Guangzhou Huangpu, Chn Buyer Greek (Diana) 08/2016 B&W - $12.2 Greek Yangfan, Chn 04/2016 B&W 4 x 30 T Yangfan, Chn 07/2016 B&W 4 x 30 T $11.7 each enbloc Chinese Coposa Oshima, Jpn 07/2017 B&W 4 x 30 T $7.3 Greek Fany Tsuneishi, Jpn 07/2019 B&W 4 x 30 T $4.0 Chinese Secondhand Sales - Tankers Name Dwt YoB Yard SS Engine Hull Price (mill.) Buyer Sungdong Resale LR2 Sungdong Resale LR2 Emerald Summit LPG Berge Summit Marlin Amber Marlin Ametrine Maersk Caitlin Maersk Catherine Sichem Hiroshima Sungdong, Kr - B&W DH Sungdong, Kr - B&W DH STX Offshore, Kr Mitsubishi, Jpn Guangzhou, Chn Guangzhou, Chn $59.5 (each enbloc) Monaco (Scorpio) 07/2018 B&W DH $37.5 Greek 07/2015 Mitsubishi DH $8.0 - B&W DH - B&W DH Halla Eng, Kr 12/2017 B&W DH Halla Eng, Kr 08/2017 B&W DH Ina Theresa Sichem Ruby Amethyst V Sekwang Heavy, Kr STX Offshore, Kr Murakami Hide, Jpn Zhejiang Dongpeng, Chn $35.5 (each enbloc) *incl 3 yr t/c back at $/day $16.0 (en bloc) 08/2015 B&W DH $11.8 Bermuda (BW LPG) Singaporean (Norstar Shipping) Nigerian (Union Maritime) Korean (Woo Lim Shpg) 08/2015 B&W DH $12.5 Undisclosed 08/2016 B&W DH $9.5 Undisclosed 01/2018 B&W DH $6.0 Undisclosed Diamond Zhejiang 09/2015 Chinese DH $5.0 Undisclosed Shiptrade Services S.A. Weekly Market Report 3

4 Agate V Dongpeng, Chn Yangzhou Haichuan,Chi na 10/2015 Chinese DH $5.0 Undisclosed Secondhand Sales Containers Name Teu YoB Yard SS Engine Gear Price (mill.) Buyer Honest STX, Kr 02/2017 B&W $15.5 Undisclosed Jan S MTW, Ger 01/2016 B&W 3 x 45 T $3.6 Undisclosed Madeline Rickmers Szczecinska, Pol 07/2015 Sulzer 3 x 40 T $3.0 Middle Eastern Shiptrade Services S.A. Weekly Market Report 4

5 Indicative Values - Bulk Carriers Size Prompt Resale 5 years 10 years 15 years Capesize Panamax - Kamsarmax Supramax - Ultramax 28 16, Handysize Indicative Values - Tankers Size Prompt Resale 5 years 10 years 15 years VLCC Suezmax Aframax Panamax MR Shiptrade Services S.A. Weekly Market Report 5

6 Newbuilding Orders - Bulkers Newbuilding & Demolition No Type Dwt Yard Delivery Owner 2 Handysize Handysize MPP Newbuilding Orders Tankers Jiangsu New Yangziyang, Chn Tsuneishi Cebu, Phil Western Marine, Bangla 2018 Polska Zegluga Morska Price (mill.) n/a Comments 2017 Japanese n/a Log Fitted 2017/18 Jindal Steel $6.1 No Type Dwt Yard Delivery Owner Price (mill.) 2 LR HMD, Kr 2017 D Amico $44.0 Comments Demolition Sales Vessel Type Built Ldt Dwt Price ($) Country Comments Berge Prosperity BC Pakistan Voge Carrier BC Pakistan Star Laurel BC n/a Pakistan Glory Claire BC Bangladesh Constantia BC Pakistan Iron King BC Bangladesh Oriental Saga BC India Grand Rodosi BC Bangladesh Birch 3 BC India Indicative Demolition Prices Country Tanker Prices Bulker Prices India Bangladesh Pakistan China Turkey Including 500 tons bunkers rob Including 390 tons bunkers rob Shiptrade Services S.A. Weekly Market Report 6

7 Baltic Indices (Friday Closing Values) 1 year T/C rates ($/day) Dry Bulk Chartering Index Week 19 Week 18 Change (%) BDI ,87 BCI ,03 BPI ,73 BSI ,12 BHSI ,08 Type Size (k dwt) Week 19 Week 18 Change (%) Capesize ,70 Panamax ,76 Supramax ,10 Handysize ,39 Average spot rates ($/day) Type Size (k dwt) Route Week 19 Week 18 Change (%) Capesize Panamax Supramax Handysize F. East - ATL Cont/Med - F. East ,80 F. East RV ,70 TransAtlantic RV ,20 F. East - ATL ,94 ATL - F. East ,11 Pacific RV ,68 TransAtlantic RV ,98 F. East - ATL ,60 ATL - F. East ,80 Pacific RV ,50 TransAtlantic RV ,9 Far East - ATL ,40 ATL - F. East ,30 Pacific RV ,50 TransAtlantic RV ,20 Shiptrade Services S.A. Weekly Market Report 7

8 Exchange Rates Key Indicators & Stock Markets Currency Week 19 Week 18 Change (%) EUR / USD 1,1234 1,1217 0,15 USD / JPY 120,05 118,88 0,98 USD / KRW ,49 USD / NOK 7,46 7,49 0,40 Bunker Prices Commodities Port IFO 380 IFO 180 MGO Piraeus Fujairah Singapore Rotterdam Houston Commodity Week 19 Week 18 Change (%) Brent Crude (BZ) 65,87 66,12 0,38 Natural Gas (NG) 2,74 2,59 5,79 Gold (GC) ,50 Copper 292,50 282,95 3,38 Wheat (W) 475,00 486,75 2,41 Shiptrade Services S.A. Weekly Market Report 8

9 Shipping Stock Prices - Dry Bulk Key Indicators & Stock Markets Company Stock Exchange Week 19 Week 18 Change (%) Baltic Trading Ltd (BALT) NYSE 1,38 1,44 4,17 Diana Shipping Inc (DSX) NASDAQ 6,69 6,40 4,53 Dryships Inc (DRYS) NASDAQ 0,69 0,67 2,99 Euroseas Ltd (ESEA) NASDAQ 0,74 0,75 1,33 Eagle Bulk Shipping Inc (EGLE) NASDAQ 9,47 8,71 8,73 Freeseas Inc (FREESE) NASDAQ 0,02 0,03 33,33 Navios Maritime (NM) NYSE 3,68 3,88 5,15 Navios Maritime PTN (NMM) NYSE 11,64 13,22 11,95 Paragon Shipping Inc (PRGN) NASDAQ 0,69 0,71 2,82 Star Bulk Carriers Corp (SBLK) NASDAQ 3,65 3,94 7,36 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 0,71 0,69 2,90 Safe Bulkers Inc (SB) NYSE 3,50 3,76 6,91 Golden Ocean (GOGL) Oslo Bors (NOK) 4,47 5,11 12,52 Shipping Stock Prices - Wet Company Stock Exchange Week 19 Week 18 Change (%) Capital Product Partners LP (CPLP) NASDAQ 8,35 9,44 11,55 TOP Ships Inc (TOPS) NASDAQ 1,04 1,08 3,70 Tsakos Energy Navigation (TNP) NYSE 8,83 9,30 5,05 Shipping Stock Prices - Other Company Stock Exchange Week 19 Week 18 Change (%) Aegean Maritime Petrol (ANW) NYSE 14,41 15,01 4,00 Danaos Corporation (DAC) NYSE 6,48 6,40 1,25 StealthGas Inc (GASS) NASDAQ 6,46 6,68 3,29 Rio Tinto (RIO) NYSE 45,62 45,16 1,02 Vale (VALE) NYSE 7,84 7,26 7,99 ADM Archer Daniels Midland (ADM) NYSE 50,32 48,95 2,80 BHP Billiton (BHP) NYSE 50,27 51,88 3,10 Shiptrade Services S.A. Weekly Market Report 9