Dry Bulk Market Weekly Highlights Week 17 - Dry Cargo Market Highlights for the period of 21-April-2011 until 28-April-2011

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1 Dry Bulk Market ly Highlights 17 - Dry Cargo Market Highlights for the period of 21-April-211 until 28-April /4/211 Baltic Indices / Dry Bulk Spot Rates 16 21/4/211 ±% $/day $/day Point Diff Avg Avg BDI 1,269 1, % 15 1,36 2,758 BCI 1,564 $6,698 1,54 $6, % 24 1,583 3,48 BPI 1,45 $11,62 1,377 $11,24 5.3% 73 1,777 3,115 BSI 1,39 $14,53 1,41 $14, % -11 1,388 2,148 BHSI 797 $11, $11, % ,124 A fairly quiet week with very few fixtures reported for all size segments. The Easter holidays for most of the Western hemisphere in combination with the Baltic being closed last Friday due to a national holiday in the UK, were the main cause for a lack of market information around. We should see increased activity surface this week as both charterers and owners return to their desks hungry to conclude fixtures. Despite this lack of activity, the market showed a slight upturn as owners return from their holidays with a more optimistic market sentiment, pushing hard for an increase in freight levels. With regard to vessel supply there is still a plethora of tonnage available in the market leaving owners to heavily compete for any cargoes that enter the market. Scrapping activity has continued at a very good pace up until now, and if demolition yards continue to offer at such good levels we should see further units heading for the breaker yards. Newbuilding activity has also remained fairly slow this year, helping as such the massive orderbooks deflate to more manageable levels. On the demand side, there are several indications circling in the market for a further growth in demand for iron ore and coal. BHP Biliton s recent joint venture with Samarco for an iron ore pellet project in Brazil is an indication of their bullish long-term outlook for the steel making industry. RNCOS s recently published report confirms this further pointing out to a very firm demand for steel from China on the back of its rapid industrialization and many large scale infrastructure projects. 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Baltic Dry no. Fixtures The Baltic Dry closed on Thursday the 28th of April at 1,269 points with a weekly gain of 15 points or 1.2% over previous week s closing. (Last Thursday s the 21st of April closing value was recorded at 1,254 points). 1

2 6, 5, 4, 3, 2, 1, Capesize no. Fixtures CAPESIZE MARKET - The Baltic Cape closed on Thursday the 28th of April at 1,564 points with a weekly gain of 24 points. For this week we monitor a 1.6% change on a week-on-week comparison, as Last Thursday s the 21st of April closing value was 1,54 points). It is worth noting that the annual average of 211 for the Cape is currently calculated at 1,583 points, while the average for the year 21 was 3,48 points. No. of Fixtures Highest Fixture Lowest Fixture this week 4 $15,8 $8,2 last week 7 $19,6 $4, For 17 we have recorded a total of 4 timecharter fixtures in the Capesize sector, 2 for period charter averaging $12,25 per day, while 2 trip charters were reported this week with a daily average of $12, per day. Period Charter Trip Charter this week $12,25 $12, last week $12,2 $8,783 This week s fixture that received the lowest daily hire was the M/V ''C.KOREANA'', dwt, built 199, dely China 5/15 May, redely China, $82, DHL, for a trip via Newcastle 42$ improved from last week, and the fixture with the highest daily hire was the M/V ''GENCO TITUS'', dwt, built 27, dely PMO 2/24 Apr, redely China, $158, STX Pan Ocean, for a trip via Panjim -38$ reduced from last week. 2% 1% % -1% -2% Baltic Cape (BCI) 8.1% 1.7% -.1% -13.4% -3% -4% -5% -6% -7% -64.2% -6.9% 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR In the bar chart on the left we see that the BCI is showing a 1.7% gain on a weekly comparison, a -13.4% fall on a 1 month basis, a 8.1% gain on a 3 month basis, a -64.2% fall on a 6 month basis and a -6.9% fall on a 12 month basis. 2

3 5, 4, 3, 2, 1, Panamax no. Fixtures PANAMAX MARKET - The Baltic Panamax closed on Thursday the 28th of April with a gain at 1,45 points having gained 73 points on a weekly comparison. It is worth noting that last Thursday s the 21st of April saw the Panamax index close at 1,377 points. The week-on-week change for the Panamax index is calculated to be 5.3%, while the yearly average for the Baltic Panamax for this running year is calculated at 1,777 points while the average for 21 was 3,115 points. No. of Fixtures Highest Fixture Lowest Fixture this week 36 $24,5 $6,9 last week 34 $25,25 $6, For 17 we have recorded a total of 36 timecharter fixtures in the Panamax sector, 4 for period charter averaging $13,688 per day, while 32 trip charters were reported this week with a daily average of $13,848 per day. Period Charter Trip Charter this week $13,688 $13,848 last week $14,833 $14,31 The daily earnings differential for the Panamaxes, that we calculate from all this week s reported fixtures, i.e. the difference between the lowest and highest reported fixture for this week was reduced, and this week s fixture that received the lowest daily hire was the M/V ''HUI PING'', dwt, built 1994, dely Lianyungang 28 Apr/3 May, redely India, $69, Chart Not Rep, for a trip via Indonesia 9$ improved from last week, and the fixture with the highest daily hire was the M/V ''CRYSTAL BLISS'', dwt, built 29, dely Recalada 19/21 May, redely Singapore-Japan rge, $245, Cargill, for a trip -75$ reduced from last week. 1% % -1% Baltic Panamax (BPI) 4.2% 1.6% -.4% -2% -3% -4% -5% -6% -3.2% -34.6% -62.7% -7% 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR In the bar chart on the left we see that the BPI is showing a -.4% fall on a weekly comparison, a -3.2% fall on a 1 month basis, a 1.6% gain on a 3 month basis, a -34.6% fall on a 6 month basis and a -62.7% fall on a 12 month basis. 3

4 3,5 3, 2,5 2, 1,5 1, 5 Supramax no Fixtures SUPRAMAX & HANDYMAX MARKET - The Baltic Supramax closed on Friday the 28th of April at 1,39 points down with a weekly loss of -11 points or -.8%. The Baltic Supramax index on a weekly comparison is with a downward trend as last Friday s the 21st of April closing value was 1,41 points. The annual average of the BSI is recorded at 1,388 points while the average for 21 was 2,148 points. No. of Fixtures Highest Fixture Lowest Fixture this week 14 $24, $12,5 last week 21 $3,5 $7, For 17 we have recorded a total of 14 timecharter fixtures in the Supramax & Handymax sector, 2 for period charter averaging $18,75 per day, while 12 trip charters were reported this week with a daily average of $17,563 per day. Period Charter Trip Charter this week $18,75 $17,563 last week $16,438 $17,653 The minimum vs maximum daily rate differential as analyzed from our fixtures database was overall reduced and from the reported fixtures we see that this week s fixture that received the lowest daily hire was the M/V ''MANDARIN PHOENIX'', 57 dwt, built 21, dely Karaikal spot, redely China, $125, Chart Not Rep, for a trip 55$ improved from last week, and the fixture with the highest daily hire was the M/V ''FASSA'', dwt, built 26, dely APS Houston 1/5 May, redely Spain, $24, Oldendorff, for a trip -65$ reduced from last week. 1% % -1% -2% -3% Baltic Supramax (BSI) 5.5%.1% -1.1% -13.3% -24.7% -4% -5% -48.3% -6% 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR In the bar chart on the left we see that the BSI is showing a -1.1% fall on a weekly comparison, a -13.3% fall on a 1 month basis, a 5.5% gain on a 3 month basis, a -24.7% fall on a 6 month basis and a -48.3% fall on a 12 month basis. 4

5 1,75 1,5 1,25 1, 75 5 Handysize no. Fixtures HANDYSIZE MARKET - The Baltic Handysize closed on Thursday the 28th of April with a downward trend at 797 points with a weekly loss of -5 points and a percentage change of -.6%. It is noted that last Thursday s the 21st of April closing value was 82 points and the average for 211 is calculated at 74 points while the average for 21 was 1,124 points. No. of Fixtures Highest Fixture Lowest Fixture this week 1 $16,5 $16,5 last week 5 $15,5 $9, For 17 we have recorded a total of 1 timecharter fixtures in the Handysize sector, for period charter averaging $ per day, while 8 trip charters were reported this week with a daily average of $16,5 per day. Period Charter Trip Charter this week $ $16,5 last week $ $12,6 dely Kwinana 1/7 May, redely Singapore-Japan, $165, Wylex, for a trip. The minimum vs maximum daily rate differential as analyzed from our fixtures database was overall increased while the only daily hire reported was the M/V ''OPAL BRILLIANCE'', 35 dwt, built 21, 1% % Baltic Handy (BHI) 6.4% 2.2% -.5% -.1% -1% -2% -19.3% -3% -4% -41.1% -5% 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR In the bar chart on the left we see that the BHI is showing a -.1% change on a weekly comparison, a 2.2% gain on a 1 month basis, a 6.4% gain on a 3 month basis, a -19.3% fall on a 6 month basis and a -41.1% fall on a 12 month basis. All Baltic Dry Indices, 1 day, 1week, 1 month, 3 months, 6 months and 12 months % changes based on last Friday s closing figures. INDEX 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR BDI.8% -.2% -19.9% 2.8% -54.% -62.2% BCI -.1% 1.7% -13.4% 8.1% -64.2% -6.9% BPI 4.2% -.4% -3.2% 1.6% -34.6% -62.7% BSI.1% -1.1% -13.3% 5.5% -24.7% -48.3% BHI -.5% -.1% 2.2% 6.4% -19.3% -41.1% 5

6 VLCC Suezmax Aframax Clean Dirty Vessel Routes Tanker Spot Rates WEEK WS WS ±% $/day $/day $/day $/day points points 265k AG-JAPAN 48 8, ,697-5% 26,14 41,62 28k AG-USG ,139-3% 6,332 2,959 26k WAF-USG 55 2, ,51 % 34,183 45,311 13k MED-MED 95 29, ,11-7% 32,626 36,316 13k WAF-USAC 85 15, ,625 % 18,279 26,222 13k AG-CHINA 8 13, ,96-6% 18,681 26,91 8k AG-EAST 12 15, ,687-4% 13,478 15,716 8k MED-MED 95 1, ,81-5% 15,536 19,835 8k UKC-UKC 11 21, ,857-2% 19,282 24,225 7k CARIBS-USG 115 9, ,375-4% 11,561 17,47 75k AG-JAPAN , ,884 2% 9,91 14,544 55k AG-JAPAN , ,6-3% 8,52 1,784 37K UKC-USAC , ,453 5% 14,62 1,531 3K MED-MED 22 32, ,495 % 21,89 19,933 55K UKC-USG 14 13, ,357 % 15,348 16,419 55K MED-USG 14 12, ,85 % 13,78 14,358 5k CARIBS-USAC , ,296 2% 15,864 14,117 VLCC Suezmax Aframax Panamax MR Handysize $/day Tanker Time Charter Rates ±% Diff k 1yr TC 3,5 3,5.% 3,191 38,288 3k 3yr TC 35, 35,.% 34,818 38,671 15k 1yr TC 21,5 21,5.% 22,221 28,712 15k 3yr TC 25,5 25,5.% 25,759 27,642 15k 1yr TC 16,5 16,5.% 16,926 19,14 15k 3yr TC 19,25 19,25.% 19,347 2,282 7k 1yr TC 16,25 16,25.% 15,412 16,865 7k 3yr TC 17,25 17,25.% 16,965 17,7 45k 1yr TC 14,25 14,25.% 13,5 13,423 45k 3yr TC 15, 15,.% 14,568 14,388 36k 1yr TC 13, 13,.% 12,397 11,88 36k 3yr TC 14, 14,.% 13,259 12,8 6

7 Handysize Handymax Supramax Panamax Capesize $/day Dry Bulker Time Charter Rates ±% Diff K 6mnt TC 12,5 13,25-6% ,46 36,483 17K 1yr TC 12,75 13,75-7% -1, 17,744 33,167 17K 3yr TC 17, 17, % 19,759 29,153 7K 6mnt TC 17,125 17,75-4% ,862 28,879 7K 1yr TC 16, 16,25-2% ,147 24,759 7K 3yr TC 15,75 15,875-1% ,957 19,735 52K 6mnt TC 16,75 16,75 % 16,59 24,569 52K 1yr TC 15,25 15,25 % 15,413 21,47 52K 3yr TC 14,75 14,75 % 14,935 17,52 45k 6mnt TC 14,5 14,5 % 14,465 21,372 45k 1yr TC 13,5 13,5 % 13,472 18,53 45k 3yr TC 13,25 13,25 % 13,175 15,568 3K 6mnt TC 13,25 13,25 % 12,443 16,98 3K 1yr TC 13, 13, % 12,465 15,862 3K 3yr TC 12,75 12,75 % 12,391 14,143 7

8 Secondhand Indicative Market Values ($ Million) - Tankers Vessel 5yrs old Apr-11 Mar-11 ±% VLCC 3KT DH % Suezmax 15KT DH % Aframax 15KT DH % Panamax 7KT DH % MR 45KT DH % Secondhand Indicative Market Values ($ Million) - Bulk Carriers Vessel 5yrs old Apr-11 Mar-11 ±% Capesize 17k % Panamax 73K % Supramax 52k % Handysize 29K % Bulkers Tankers Gas New Building Indicative Market Prices (million$) Vessel ±% Capesize 17k % Panamax 75k % Supramax 57k % Handysize 3k % VLCC 3k % Suezmax 15k % Aframax 11k % LR1 7k % MR 47k % LPG M3 8k % LPG M3 52k % LPG M3 23k %