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1 ALPHALINER Weekly Newsletter Volume 218 Issue to Web: Sales: The Alphaliner Weekly Newsle er is distributed every Tuesday. Informa on is given in good faith but without guarantee. Alphaliner does not accept any liability for any errors or omission or opinion. Please send your feedback, comments and ques ons to Unauthorized redistribu on of the newsle er is prohibited and readers are requested to quote Alphaliner as source for all data derived from the newsle er. Please refer to full user terms and copyrights at Charter rates for classic panamax containerships of 4,-5,3 teu have recovered from the record lows in 216 when rates sunk to only $4,-$4,5 per day Rates are expected to surpass $13,, sustained by the current demand that has mopped up most of the unemployed ships. Only three unemployed panamax ships remain currently availaible for charter, of which two are laid up at Labuan for the past months, the 5,86 teu CORNELIA I and SOFIA I (Jiangnan 5) owned by Dynacom. Chart of the week Charter rate $/day 4, 35, 3, 25, 2, 15, 1, 5, ALPHALINER Daily charter rate for panamax containerships of 4, 5,3 teu vs no. of idle units : 28 to Number of idle units INSIDE THIS ISSUE: Panamax prospects improves 1 Corporate Updates 4 CMA CGM snaps up CEVA Logistics stake - but value falls by 6% on trading debut Idle Fleet/Charter Market Updates 5 Idle fleet shrinks to 1% of total capacity Looming shortage of Classic Panamaxes Service Updates 11 GSL, KMTC and PEL to introduce a direct China-India-Vietnam service GSL, CNC, KMTC & TSL to introduce a dedicated China-Malaysia link COSCO expands Vietnam coverage to Chu Lai MCC to add another China-Indonesia service COSCO, CNC & PIL revise China-Thailand offerings Milaha adds Iraq to its network MSC restructures Baltic loops - Starts using Klaipeda as a hub COSCO boosts Centram, NCSA & Caribbean coverage Deliveries/Vessel Updates 18 April/May deliveries Port and Terminal Updates 2 ZPMC delivers additional cranes to Freeport Bahamas Westports Kelang acquires land for further expansion ADNOC-L&S to handle Borouge volumes at Ruwais Port Classic Panamax containership prospects brighter Charter rates for classic panamax containerships of 4,-5,3 teu are expected to rise with the current strong demand set to continue with a series of new service launches set to clear out all available tonnage in the market in the coming weeks, tipping the supply-demand balance in favour of the owners. The number of idle classic panamax units has dropped to only nine units at the beginning of May, compared to a peak of 98 idle units just 18 months ago. Of these nine units, only three are left open for employment of which two laid-up units that can be reactivated with a six week notice. Three other units still idle will resume trading within days or weeks while a further three units are currently out of the market for technical or statutory reasons. Based on Alphaliner s survey of new services launched since April, there are at least six new strings needing a full line-up of classic panamax ships, requiring a total of 34 ships of 4,-5,3 teu. These launches are partially offset by the closure of a Far East-India service and the upsizing in the coming weeks of a transpacific service that will free up a total of 14 panamaxes, leaving a net gain of 2 ships. The new strings use a mix of carrier-controlled units and of NOO ships. Daily charter rates for classic panamax ships are now reaching the $13, mark in the Far East. Rates are expected to strengthen further, sustained by the rising demand. Rising charter rates across all size segments from 3, teu to 8, teu also Page 1 Copyright Alphaliner

2 Classic Panamax Containership Deployment by Trade May 216 vs May 218 May 218 May 216 Change ME/ISC related Intra FE (excl. Domes c) Africa related Transatlan c Intra China (Domes c) ANZ/Oceania related La n America related FE ECNA via Panama Intra Europe FE WCNA Asia Europe FE ECNA via Suez Total ac ve fleet Idle GR Total fleet Deleted May 216 to Apr scrapped 74 widened 3 A further 3 units have le the interna onal market as they were purchased for exclusive use on China domes c services (included in Intra China fleet). Change May 218 vs May Intra FE (excl. Domestic) Intra China (Domestic) leave little options for existing services to switch away from current cheaply chartered panamax ships, leaving charterers in a conundrum that they haven t faced for a while. Charter rates for classic panamax are now at their highest levels in 3 months, having risen by almost 2% from its lows in late 216 when rates sunk to as little as $4,-4,2 per day. The change in fortunes can be traced back to the very high level of scrapping seen in the last two years, with 74 units of 4,-5,1 teu scrapped since May 216, or some 9% of the fleet over the last two years, while a further 3 units have left the international market as they were purchased by Chinese owners for exclusive use on domestic trades. Unsurprisingly, scrappings have almost disappeared with only one panamax ship broken up since November 217. Units scrapped by month ALPHALINER Panamax containerships (4. 5,3 teu) scrapping vs no. of idle units The intra-far East trade has provided the largest impetus to the renewed demand for classic panamax ships, with 44 ships added to the trade over the last two years together with a further 32 ships added on the China coastal trades. Together with the increased deployment on the Africa and Middle-East/Indian subcontinent routes, these have helped to overcome the significant displacement of these Number of idle units Africa related ME/ISC related FE WCNA Intra Europe FE ECNA via Suez Asia Europe Transatlantic ANZ/Oceania related Latin America related FE ECNA via Panama ALPHALINER ME/ISC related Intra FE (excl. Domestic) Africa related Transatlantic Intra China (Domestic) ANZ/Oceania related Latin America related FE ECNA via Panama Intra Europe FE WCNA Asia Europe FE ECNA via Suez Idle GR (dry dock) Classic Panamax containerships deployed ALPHALINER May 18 May 16 Page 2 Copyright Alphaliner

3 The rebound in the classic panamax charter rates would provide welcome relieve for the beleaguered Non-Operating Owners (NOO). The Top NOO ranking of classic panamax ships (as at 1 May 218) stands as follows: Owner Name Units owned Seaspan 28 Navios Mari me Holdings 19 Norddeutsche Reederei H. Schuldt 12 Delphis (CMB) 11 Danaos Shg 11 Dioryx 9 Niki Group 8 NSC Schiffahrt 8 Oltmann Schiffahrt 8 Peter Döhle 8 Ship Finance Interna onal 7 Technomar Shg 7 Costamare Shg 7 Cyprus Mari me 7 MPC Group 7 Asia c Lloyd / Atlan c Lloyd 6 XT Shipping 6 Doun Kisen 6 Offen, Claus Peter Offen 6 Global Ship Lease 5 Eastern Pacific Shipping 5 Lomar Corp. 5 ships on the FE-ECNA via Panama routes where over 1 units have been removed in the last two years. A new wave of fresh demand is triggered by the launch, or the upsizing, of six strings in April-May that provide employment for 34 panamax ships. New services launched in April-May 218 using classic panamax ships Service Name Trade Coverage Operator Ships deployed AEX FE N. Europe HMM CT2/CTS China Thailand COSCO/CNC ZAX3/SA1 FE S. Africa PNS CTI CMS COSCO/GSL FE USWC (PNW) SM Lines China Indonesia Yang Ming China Malaysia GSL/CNC/ KMTC/TSL New service using 1 x 4,7 5,3 teu New service using 3 x 4, 4,25 teu N ew service using 8 x 4,2 4,5 teu New service using 6 x 4,2 4,6 Upgraded from 3 x 2,7 to 4,2 teu scale New service using 4 x 4,2 teu Launch Date The new services are spread across multiple trades, but all originates in the Far East. This will push up new delivery requirements in the Far East, with the current premium for deliveries in the Atlantic expected to be reversed. The imminent shortage of classic panamax ships could result in the skipping of voyages during the launching phase, until ships are freed up by the closure of a loop and the upsizing of another one. The expected closure of the 'China-West India Express' (CWI/ CIMEX2X) service operated by HMM, CMA CGM, KMTC, PEL and SCI (replaced by a new alternative) will release four panamax ships in June while the upsizing of the Maersk-MSC Far East-USEC TP-18/ Lone Star service to the 6,-7, teu scale will free up a total of ten panamax units in May-July. Panamax Units From 7 Apr 1 From 27 Apr 3 From 7 May 8 From 1 May 6 From 12 May 3 From 26 May 4 Further service revisions and upsizings could release additional panamax units, but supply is expected to remain tight until at least October. The positive reversal for the panamax sector is expected to be more sustainable than the mini-revival seen in April last year. Rates now have already proven to be stronger than the same period last year when they struggled to pass the $1,/day level and failed to last through the summer. Page 3 Copyright Alphaliner

4 CORPORATE UPDATES CMA CGM snaps up CEVA Logistics stake - but value falls by 6% on share trading debut Trading of CEVA Logistics shares on the SIX Swiss Exchange started on 4 May 218. Despite pricing at the bottom end of its share offer range, CEVA s offering failed to spur demand in Switzerland s biggest IPO this year. CEVA s shares dropped by as much 8.7% before closing 5.8% lower at CHF 25.9 on its debut trading day. Although it recovered some of its losses in the two subsequent trading days, the share price has remained below its IPO price of CHF CEVA Logistics share price (CHF) 3 May - 9 May 218 CMA CGM has confirmed its CHF 379 M investment to acquire a 24.99% stake in CEVA Logistics on 3 May, concurrent to CEVA s completion of its initial public offering (IPO) on the SIX Swiss Exchange. CEVA s shares were priced at CHF 27.5, at the bottom of its initial offer price range of CHF 27.5 to 52.5 per share. The lower IPO price allowed CMA CGM to acquire its stake at less than the CHF M price that was first announced on 2 April 218 when it committed to subscribe for the mandatory convertible bond in CEVA that would be converted into CEVA common shares upon obtaining all required regulatory approvals. The very poor valuation of CEVA s stock reflected concerns about the company s lack of profitability. The company has been unprofitable in every single year since its establishment in 27 by venture capital firm Apollo Global Management following the acquisition of TNT Logistics, the contract logistics business of Dutch express delivery company TNT and the subsequent acquisition of US-based freight forwarder EGL. According to its IPO prospectus, CEVA has chalked up cumulative net losses of $2,997 M at the end of December 217. Although the company was forced to undergo a recapitalisation exercise in 213 to reduce its net debt by $1.6 Bn, it still carried a net debt of $2.89 Bn at the end of December 217. CEVA generated gross proceeds of CHF 821 M from the IPO, and a further CHF 379 M from the CMA CGM investment for a total of CHF 1,2 M that will be used to pay down its outstanding debt. CEVA Shareholders Breakdown (assuming over allotment option not exercised) CapRe 5% Franklin 5% Apollo 5% Others 6% CMA CGM has a one year lock-up agreement and will not to increase its shareholding in CEVA for six months post IPO, while the three principal shareholders of CEVA prior to the IPO (CapRe, Franklin Advisors, and Apollo Global Management who now collectively hold 15% of the share capital) have agreed to a lock-up period of 18 days. CEVA Logistics : Financial performance In US$ millions CMA CGM 25% Public shareholders 54% Revenue 7,864 6,959 6,646 6,994 EBITDA Adjusted EBITDA EBIT Net Profit Adj. EBITDA margin % 3.1% 3.9% 3.8% 4.% Net Profit margin % -5.3% -2.8% -2.4% -2.8% Page 4 Copyright Alphaliner

5 IDLE FLEET UPDATES Idle fleet shrinks to 1% of total capacity Idle containerships > 5 TEU As at 3 April 218 Breakdown by Size Range TEU Range Units idle Trend of which, NOO Units % teu % 1, 1, % 2, 2, % 3, 5, % 5,1 7, % 7,5 12, % 12,5 & over 2 % Total units idle % Total TEU idle 224,243 15,724 67% Idle TEU as % of total fleet 1.% The idle containership fleet of above 5 teu has continued to shrink, falling to only 83 units for 224,24 teu as at 3 April 218. The idle capacity accounts for just 1.% of the total cellular fleet, which now stands at Mteu. Carriers continued demand for additional tonnage with new service launches and upgrades of existing services are driving the fall in idle capacity. The strong demand is expected to last at least until the end of June. The active fleet (total fleet minus idle capacity) currently stands at Mteu, representing a growth of 8.2% compared to a year ago. The rapid pace of capacity increase has continued to put pressure on freight rates. Although spot freight rates from China have shown some recent strength, with the SCFI gaining 19% compared to a month ago, CCFI dropped by -2% over the same period. The divergence in the SCFI and CCFI suggests that carriers have not been able to raise their average freight revenue despite the spot freight gains. Charter Rate $/day 4, 35, 3, 25, 2, 15, 1, 5, Jan 12 Jan 13 Alphaliner Charter Rates Jan 14 Jan 15 Jan 16 ALPHALINER Jan 17 Jan 18 CCFI/SCFI Index 1,6 1,4 1,2 1, ALPHALINER SCFI vs CCFI : Divergence SCFI vs CCFI SCFI CCFI Idle containership (units idle breakdown by size range) , Daily Charter Rates by TEU Size 8,5 teu 5,6 teu 4, teu 2,5 teu 1,7 teu 1, teu Apr 18 $/day May 18 $/day 8,5 teu 21, 2, 5,6 teu 16,25 16,8 4, teu (Panamax) 1,75 12,5 2,5 teu 11, 11,25 1,7 teu 1,75 1,75 1, teu 8,25 8,25 Idle Vessel Count Jan Jul 215 Jan Jul 216 Jan Jul 217 Jan Jul 218 Jan Size (teu) , 1,999 2, 2,999 3, 5,99 5,1 7,499 > 7,5 Page 5 Copyright Alphaliner

6 CHARTER MARKET UPDATES Looming shortage of Classic Panamaxes Jan 16 Available NOO ships > 4, teu Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 ALPHALINER Oct 17 VLCS 7,5 1, teu LCS : 5,3 7,5 teu Panamax : 4, 5,3 teu MSC buys 7, teu containership pair Jan 18 Apr 18 MSC has reportedly bought the 6,966 teu sister vessels TEXAS and WASHINGTON (Hyundai 65) from Synergy Management Ltd (Papathomas) at an undisclosed price. Both vessels are currently already on charter to MSC, the former being deployed on the carrier s East Med- West India IMED weekly service, whilst the latter is operated on the Europe-Australasia-ME-Europe Australia Express service. Both vessels are expected to be renamed to traditional names with a MSC prefix. The TEXAS and WASHINGTON were both built in 29 by South Korea s Hyundai Heavy Industri (HHI) shipyard in Ulsan. They feature a deadweight of 84,5 tons, a Loa of 34 m and a beam of 4 m. The TEXAS is fitted with 76 reefer plugs while the WASHINGTON is believed to have only 6. Both vessels belong to the Hyundai 65 series of containerships, of which 28 units were built from 22 to 29. The TEXAS and WASHINGTON originally started their career with a long term charter to APL who operated them until 214 as the APL TEXAS and APL WASHINGTON. Upon redelivery, the ships started a new life on the charter market. The WASHINGTON found a place in the MSC network as early as the summer 215 and has stayed with the Geneva-based carrier ever since. The container charter market remains busy, with a high level of activity across most ship sizes, except in the VLCS and 1,25-1,499 teu segments, where demand is currently subdued. Charter rates are still generally on an upward trend, although slightly weakening figures are observed on certain fixtures. The availability of spot tonnage remains tight for most vessel sizes. Quite remarkably, a shortage of classic panamax vessels (4,-5,299 teu) is now looming, with only one 4,1 teu vessel in prompt position in the Middle East and two maxipanamax units of 5, teu in lay up in SE Asia. The astonishing turnaround of this segment, which, back in October 216 counted over 9 vessels in search of a new employment, epitomizes the fast recovery the charter market has been enjoying since the beginning of 217. Alphaliner believes the recovery of the charter market will continue in the short and medium term as demand for tonnage of all sizes is showing no signs of weakening. Charter rates are meanwhile expected to keep rising on the back of a continued tight availability of tonnage. The recent improvement in cargo rates observed on a number of East-West and North-South routes, after weeks of continuously falling prices, is a further positive signal for the market. However, a number of threats persist. In particular, weaker growth indicators in Europe for the first quarter of the year, as well as the continuously rising oil prices, which remain a concern for the industry. Subdued demand in the VLCS segment The handy VLCS segment (7,5-11, teu) continues to be affected by a subdued demand. This lower level of activity is impacting charter rates which have been weakening in the last few weeks. Evidencing this, Zim snapped up a 8,468 teu Samsung 8 for a 12 month charter at $2, per day, a level which is lower than the $21, agreed for a sister vessel back in March. Alphaliner believes the weakness currently observed in this segment will be temporary, in view of the continued low availability of tonnage, with only three ships in spot position and no vessels expected to come up for employment in the next few weeks. Higher activity for LCS tonnage The LCS segment (5,3-7,499 teu) has been a little more active than the VLCS', with a total of six charter deals concluded, three of which for extensions. The new enquiries were generally for short and medium periods not exceeding 6 months. Charter rates tend to stabilize, with conventional tonnage of 5,5 to 6,5 teu being generally Page 6 Copyright Alphaliner

7 CHARTER MARKET UPDATES PEL charters the 6,8 teu E.R. AMSTER- DAM, its biggest boxship ever Singapore-based liner operator Pendulum Express Lines (PEL) has chartered the 6,8 teu E.R. AM- STERDAM from German owner E.R. Schiffahrt for 4-6 months at $16,85 per day. The E.R. AMSTER- DAM is, by far, the largest container vessel ever chartered by the regional carrier. She is beating in size the 4,178 teu AMALTHEA, which PEL fixed last year for its FE-India CWI weekly service. The E.R. AMSTERDAM is due to join at the end of May PEL s Far East India Vietnam Express FIVE weekly service, a new operation which will be run jointly with Gold Star Line, Cheng Lie Navigation Co and KMTC. The FIVE service will replace PEL s Far East-India CWI service, operated jointly with CMA CGM, Hyundai M.M., KMTC and SC India, which is being closed this month. PEL was set up in Singapore in 21 by Jimmy Koh, a former APL executive. PEL started up its liner activities with a Port Kelang-Laem Chabang and Port Kelang-Taiwan service, using chartered tonnage of 8-1, teu. In 24, it clinched a VSA with Evergreen on the Taiwan-Philippines- Thailand route, which was terminated in March 212. Number of spot 4, 5,3 teu 1 Panamax ships 9 ALPHALINER May 15 May 16 May 17 May 18 fixed between $16, and $16,9 per day, depending on the vessel type. Modern, wide beam tonnage of 6,6 teu remains fixable at around $24, per day. LCS wide-beam segment is sold out The LCS wide-beam segment (4,3-5,4 teu) remains sold out. Prospects look good with no vessels expected to be redelivered in the next few weeks. In terms of transactions, the market was fairly active with four ships extending their current charters at rates generally ranging from $16, to $16,5 per day, depending on the ship type and specifications. Only one spot ship in the Classic Panamax sizes The classic panamax segment (4,-5,299 teu) is virtually sold out with only one 4,1 teu vessel available on a prompt basis in the Middle East. In addition, two 5, teu maxi-panamaxes still laid up in SE Asia can be reactivated with a few weeks notice. Little tonnage is coming up for re-delivery in the next few weeks. This tightening of supply, as well as the ongoing demand for tonnage are pushing charter rates further up. Smaller panamaxes of 4,25 teu are currently getting fixed in the high $12, per day in the Atlantic while a maxi-panamax recently obtained $13, in the same area. In Asia, 4,25 teu panamaxes and maxi-panamaxes have so far been fixed at respectively $11, and $12, per day, but rumours suggest that fixtures close to $13, per day could soon be agreed in this area as well. Rates keep rising in busy 3,-3,8 teu segment The 3,-3,8 teu segment remains busy, with 9 charter deals concluded, of which 5 extensions and 4 new enquiries. Tonnage availability remains slim, with only one geared ship of 3,6 teu in spot position. Charter rates tend to stabilize at around mid-$11, in the Far East but keep rising in the Middle East as well as in the Atlantic where a geared 'B-178' secured a medium term period employment at $11,9 per day. The $12, threshold is generally believed to be the next target for the standard 3,5 teu tonnage. A slightly larger SDARI 38 (with a stability of over 3, teu at 14 tons) is reported to have already obtained such a figure, as part of a charter deal concluded with Zim. Page 7 Copyright Alphaliner

8 CHARTER MARKET UPDATES Positive momentum continues in 2,7-2,9 teu segment Available NOO ships < 4, teu ALPHALINER The positive momentum continues in the 2,7-2,9 teu segment, with an ongoing demand for tonnage, and a dearth of spot ships. Some newbuilding MARIC 27 tonnage is however believed to be still available for charter on a relatively prompt basis in Asia. Despite the favourable environment, charter rates progress unevenly in this segment. In Asia, rates for conventional 2,7-2,8 teu tonnage tend to stabilize, whilst they are on a firmly rising trend in the Atlantic. Illustrating this, a Hyundai Mipo 28 secured a charter extension in the Mediterranean at $11,45 per day, an improvement of nearly $1, per day on the previous benchmark. 1 5 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 3, 3,9 teu 2,7 2,999 teu 2, 2,7 teu 1,5 1,9 teu 1, 1,25 teu In Asia, modern high-specification tonnage continues to be fixed at premium rates, as illustrated by the extension of the 2,782 teu Chittagong Max TR ATHOS (MARIC 27) by KMTC for 7-9 months at $13,75 per day, a rate level that is $5 higher than the earlier benchmark. Activity picking up in the 2,-2,699 teu sizes Activity is picking up again in the 2,-2,699 teu sizes compared to our last review, with eleven charter deals concluded, of which 5 extensions and 6 fresh enquiries. The availability of tonnage remains low, with two ships currently in spot position. There are no ships in the Atlantic. Charter rates are generally stable in the Atlantic, at around $11, per day, but keep rising in Asia, where a 2,526 teu CV 25 type was fixed at $11,5 per day. A fuel-efficient YZJ 25 (2,546 teu) was meanwhile reported fixed for a one-year charter at $12,, a new high, and a 2,357 teu SDARI 24 type, the MIA SCHULTE, was extended for 2-5 months of Asia-Papua New Guinea trading at $15,5 per day. For reference, the MIA SCHULTE was extended on the same trade in June last year at only $11,25 per day, a substantially lower level illustrating the strong rate rally this tonnage has been enjoying over the last few months. 1,5-1,9 teu sizes remain busy but tonnage is building up The 1,5-1,9 teu segment is still one of the market s busiest, with 16 charter deals concluded recently, of which 8 extensions and 8 new enquiries. Despite this high level of activity, the supply of spot tonnage remains stable, with 6 ships currently seeking an employment, of which 2 in the Atlantic. Prospects are currently looking mixed, with a dozen ships expected to come up for employment in the next few weeks. This tonnage build-up could explain the unclear direction followed by charter rates, which tend to weaken in Asia for both conventional and higher specifications ships, whilst still rising in Page 8 Copyright Alphaliner

9 CHARTER MARKET UPDATES Transworld takes in charge the MERKUR TIDE (1,68 teu) India s Transworld Group has taken in charge the 1,68 teu MERKUR TIDE (CC 16) which the company recently purchased from German owner Reederei F.A. Vinnen & Co for a reported $4.15 M. The vessel has been renamed OEL SHRAVAN under Panamanian flag. Her registered owner is Orient Express Lines Inc, a division of the Transworld Group. The MERKUR TIDE was built in 1998 by Germany s Meeres Technik (MTW) yard in Wismar. She features a deadweight of 22,26 tons, an Loa of 168 m and a beam of 26.7 m. She is equipped with three cranes of 4 tons and is fitted with 238 reefer plugs. The MERKUR TIDE is part of the CC 16 series of containerships, of which 15 vessels were built from 1994 to The CC 16 used to be a popular charter market vessel in the s, often competing against B-17, BV 16 and BV 17 type units. The MERKUR TIDE itself spent her entire career on the charter market until her sale to Transworld. The CC 16 type is however coming close to extinction with only four of the original 15 ships still in service. the Atlantic. Standard Wenchong 17 types are currently fixable at $1,5 in Asia, and marginally more in the Atlantic. Modern fuelefficient tonnage such as Bangkok Max Wenchong 17 Mk II are obtaining $13,-13,5 per day, down from a high of $14, reached at the end of March. Demand falling in the 1,25-1,4 teu segment Demand has been falling in the 1,25-1,499 teu segment in recent times, impacting supply. Currently, ten ships are in spot position, versus 7 units in our last review. At least two Hegemann 14 type container vessels, a usually popular type, are in spot position in Asia and 5 high-reefer ships are available in the Atlantic. No fresh business has been reported. The outlook for this segment appears mixed. Continued high activity in the 1,-1,2 teu sizes The volume of business remains high in the 1,-1,249 teu segment, with 15 charter deals concluded, of which 9 extensions and 6 fresh enquiries. The availability of spot tonnage is slightly on the rise, with 8 ships seeking employment, versus 7 units in our last review. Charter rates continue to rise, albeit unevenly, with the highestspecifications units benefitting the most from the current bonanza. Illustrating this, a 1,49 teu gearless Dae Sun 1 was fixed for period charter in Asia at $9,25 per day, a new high for this type. An Orskov Mark XI was meanwhile fixed in the Med at $9,15 per day, improving on the earlier $8,8 benchmark. Standard, four-stroke engine CV 11 tonnage is getting fixed in the Med in the low $8, per day and is obtaining $9, in the Americas. Supply remains low under 1, teu The supply of tonnage remains low under 1, teu, with 5 ships of teu and 3 ships of teu currently seeking employment. Activity was generally down compared to our previous review, with the majority of fixtures concerning charter extensions. Page 9 Copyright Alphaliner

10 CHARTER MARKET UPDATES Representative Fixtures Vessel Teu Reefer Gear Design Year Charterer Charter Duration Rate Area AMERICA 8,468 7 N Samsung 8 24 ZIM new 12 mths USD 2, Asia CARDIFF (1) 6,612 6 N Hanjin Maersk Line ext 2 mths USD 24, Atlantic E.R. AMSTERDAM 6,8 8 N Samsung 55 2 Pendulum Express L new 4 6 mths USD 16,85 Asia TALASSA 5,527 5 N CSBC COSCO Shipping ext 4 6 mths USD 16,275 Asia S. SANTIAGO 5,6 5 N Hanjin 5 26 Hapag Lloyd new 4 5 mths USD 13, Atlantic HS BAFFIN (1) 4,957 6 N YZJ Gold Star Line ext 2 mths USD 16,5 Asia HERON HUNTER 4, N Hyundai COSCO Shipping ext 4 6 mths USD 12,85 Atlantic GUENTHER SCHULTE 3,534 5 N Shanghai Cheng Lie new 1 12 mths USD 11,5 Asia DEMETER 3,91 5 Y B WEC Lines new 3 5 mths USD 11,9 Atlantic IRENES RAINBOW 2, N Mipo Linea Messina ext 4 7 mths USD 11,45 Atlantic TR ATHOS (2) 2,782 6 N MARIC KMTC ext 7 9 mths USD 13,75 Asia NORTHERN VIVACITY 2,72 4 N Aker CS Evergreen ext 5 7 mths USD 11,8 Asia BALLENITA (4) 2, Y YZJ Westwood new 12 mths USD 12, Asia MILAN TRADER 2, Y Thyssen Maersk Line ext 4 6 mths USD 11, Atlantic MIA SCHULTE (2) 2,357 5 Y SDARI Swire Shipping ext 2 5 mths USD 15,5 Asia S. Pac CERINTHUS 1, Y Wenchong Italia Marittima new 4 6 mths USD 1,65 Atlantic SAN PEDRO (3) 1, Y Wenchong 17 Mk II 214 Gold Star Line new 6 mths USD 13,5 Asia PACITA 1,2 15 N Peene 11 L 24 COSCO Shipping ext 5 7 mths USD 9, Asia ASIATIC HORIZON 1, Y Orskov Mk XI 28 CFS new 1 12 mths USD 1,25 Americas TOKATA 1, Y CV MSC ext 12 mths USD 8,2 Atlantic NEUENFELDE N Sietas Typ Hapag Lloyd ext mths EUR 7,2 Atlantic (1) Wide beam design (2) Chittagong Max, eco design (3) Bangkok Max, eco design (4) Eco design Selected fixtures only Full list available through online subscription Contact us at commercial@alphaliner.com for details Sale of Vroon/Max ships - Clarification The clarifications regarding the sale of Vroon s fleet reported in Alphaliner Newsletter Issue 18 was wrongly attributed to Marsoft. The letter was sent by Arlie Sterling representing the board of BalticMax Acquisition Company One (AC1), which is jointly controlled by Vroon and Marsoft International. The points raised are republished below: Vroon and Marsoft International are 5/5 shareholders of BalticMax Holding Company, BHC. BHC owns 1% of the shares of BalticMax Acquisition Company One, AC1. AC1 owns the special purpose companies which in turn own 24 of the containerships referred to in your article. BHC/AC1 were established on Malta in 215 as a vehicle to refinance a portfolio of non-performing loans held at that time by Bremer Landesbank. The loan portfolio has subsequently been acquired by NordLB. NordLB s has alleged that its loans are in default; that allegation is disputed. Marsoft presented to BLB and investors in 215 an outlook and strategy to invest in the recovery in the container feeder market that has materialized in 218. Disposal of the fleet must be approved by BHC s shareholders. No such approval has been requested by the Board, nor has it been granted by the shareholders. There has been no communication between Sinokor and the Board of AC1. Vroon has no authority to sell the fleet. Indeed, the Malta Court has issued an injunction prohibiting the Vroon group and employees of the group from any such unilateral action. NordLB and Vroon have refused, despite repeated requests, to provide any documentation regarding the purported sale. The AC1 Board has confirmed to NordLB that it is prepared to cooperate in an open and fair process to sell the fleet. The Board has expressed its concern that a sale attempted without its authorization will damage the fleet s value. Page 1 Copyright Alphaliner

11 SERVICE UPDATES GSL, KMTC and PEL to introduce a direct China-India- Vietnam service Annual Throughtput in TEU Millions GSL/KMTC/PEL : FIVE Service Details Far East India Vietnam Express Vessels Deployed: 6 x 6, 6,6 teu Port Rotation Qingdao, Shanghai, Ningbo, Dachan Bay, Port Kelang, Nhava Sheva, Mundra, Hazira, Colombo, Port Kelang, Singapore, Haiphong, Qingdao The new FIVE service will include a call at the Haiphong International Container Terminal (HICT) at Lach Huyen in Haiphong that will see ships of over 3, teu to call at the North Vietnam port for the first time. The HICT terminal, which is to hold its opening ceremony this weekend (12 May 218), will be the first deep-water port in North Vietnam. The project is a joint venture involving Saigon New Port (SNP), MOL, Itochu and Wan Hai. It will feature a total berth length of 75m and will provide access for ships of up to 1, tdw with a drafts of up to 14m. The largest ships calling at Haiphong until now are 2,3 teu units deployed by MSC. Larger ships had to call at the neighbouring Cai Lan port, which allows access for ships of up to 5, teu only. The only regular service at Cai Lan is the HMM/GSL East Asia- Chennai (ACS) service that currently deploys five ships of 5, teu, with cargo to Haiphong barged from Cai Lan Container throughput at North Vietnam (2 217) Haiphong Cai Lan ALPHALINER Gold Star Line (GSL), KMTC and Pendulum Express Line (PEL) will introduce in late May a weekly service connecting directly China and India while also wayporting in the Straits in both directions and at Haiphong in Northern Vietnam on the way back to China. This new service will be named Far East India Vietnam Express (FIVE) by all three partners. It will turn in six weeks using six ships of 6,-6,6 teu, of which three will be contributed by GSL, two by KMTC and one by PEL. The FIVE will successively call at Qingdao, Shanghai, Ningbo, Dachan Bay, Port Kelang, Nhava Sheva, Mundra, Hazira, Colombo, Port Kelang, Singapore, Haiphong, Qingdao, with the first effective sailing is scheduled on 25 May from Qingdao on PEL freshly chartered 6,8 teu E.R. AMSTERDAM. As a related move, GSL will cease to be a vessel operator on the CIX service that it operates jointly with Hyundai Merchant Marine (HMM). The 6,522 teu HYUNDAI GLOBAL that is currently operated by GSL on the service will be returned to HMM, who will retain her on the service. GSL said that it will retain a slot arrangement on the CIX service. The new FIVE service will partially encompass the 'CIX' current coverage between China and Western India, adding to GSL s two additional FE-West India loops, the CI4 that is ensured through slots on the Maersk Line FI3 service and the CI3/CIX3/CIX service jointly operated by OOCL, APL and GSL. The FIVE service will also provide GSL with a direct call at Hazira. On their side, both KMTC and PEL are ship operating partners on the CWI/CIMEX2X/AIS2 service that serves the China-Western India trade. This service, to which HMM, CMA CGM and Shipping Corp. of India also participate, will be closed, with the last sailing scheduled on 16 May from Xingang on the ALS FLORA. This closure will free up six ships of 4,2 to 5,8 teu (of which four are currently classic panamax units). Currently, KMTC also serves the China-Western India trade through slots on the GLX/AIM service jointly operated by ESL and RCL, on the CI2 / ICI service jointly operated by Wan Hai, Interasia Line and COSCO Shipping, and on the FIX/AIS jointly operated by KMTC, COSCO and TS Lines. The introduction of the FIVE service will allow the Singapore-based PEL to maintain its presence in the Far East-India trade as a ship operator. Page 11 Copyright Alphaliner

12 SERVICE UPDATES GSL, CNC, KMTC & TSL to introduce a dedicated China -Malaysia link GSL/CNC/KMTC/TSL : CVI Service Details China Malaysia Service Vessels Deployed: 4 x 4, 4,3 teu Port Rotation Qingdao, Shanghai, Xiamen, Nansha, Port Kelang (W), Penang, Port Kelang (W), Pasir Gudang, Shekou, Hong Kong, Qingdao Gold Star Line (GSL), Cheng Lie Navigation Co. (CNC - part of the CMA CGM Group), KMTC and TS Lines (TSL) will introduce a dedicated direct link between China and Malaysia that will be marketed as China Malaysia Service (CMS) by GSL while KMTC and TSL will market it as 'CM3'. CNC has not published its service name. The service will successively call at Qingdao, Shanghai, Xiamen, Nansha, Port Kelang (W), Penang, Port Kelang (W), Pasir Gudang, Shekou, Hong Kong, Qingdao, turning in four weeks using four ships of 4,2 teu. It is expected to start on 25 May from Qingdao with the ZIM KINGSTON, contributed by GSL. The participation of KMTC to the CMS/CM3 is a further step in the Korean carrier initiative to expand in the non-korea related trade that are outside of the rationalization scope of the Korean Shipping Partnership (KSP). It follows the recent introduction of a dedicated China- Indonesia service through slots on the SITC CVI service in late April. In this context, KMTC is also to introduce a China-Western India service jointly operated with GSL and PEL (FIVE) (See related news above) and another direct link between China and Indonesia through slots on COSCO's recently organized PA1 service. GSL and TSL currently offer China-Malaysia direct connections through their various Intra Asia services that wayport at Port Kelang and Pasir Gudang in Malaysia. Additionally, the CMS/CM3 service will provide GSL with a direct coverage of Penang in the Malacca Strait. COSCO expands Vietnam coverage to Chu Lai COSCO : QVS Service Details Qinzhou Vietnam Singapore Service Vessels Deployed: 2 x 1,1 teu Port Rotation Qinzhou, Chu Lai, Ho Chi Minh City, Singapore, Ho Chi Minh City, Haiphong, Qinzhou COSCO Shipping has expanded its coverage of Central Vietnam with a direct call at the port of Chu Lai, located between Danang and Qui Nhon. Chu Lai is served with a new weekly butterfly service that connects South China (via the Qinzhou gateway), Vietnam and Singapore, marketed as as Qinzhou Vietnam Singapore' service (QVS). The QVS offers a butterfly pattern covering Chu Lai as well as Haiphong in Northern Vietnam and Ho Chi Minh City in Southern Vietnam. Transhipment cargoes connect at Singapore with the rest of the COSCO service network. The 'QVS' serves successively Qinzhou, Chu Lai, Ho Chi Minh City, Singapore, Ho Chi Minh City, Haiphong, Qinzhou. The service turns in two weeks using two freshly chartered ships, the 1,83 teu CONTSHIP HUB and the 1,134 teu ASIATIC CLOUD. The first sailing was organized on 23 April from Qinzhou. The 'QVS' will also double COSCO weekly sailings between Qinzhou, Haiphong and Singapore by Page 12 Copyright Alphaliner

13 SERVICE UPDATES adding to the RHY service that is currently operated with RCL. The 'QVS' is the third regular container service connecting the niche port of Chu Lai with foreign markets, with SITC covering this port with its CKV service, organised in June 217 and APL's new CHX service, launched in March 218 The port of Chu Lai was inaugurated in 212 and is operated by THA- CO Logistic, part of Truong Hai Auto Corporation (THACO), a leading Vietnam Car manufacturer, assembling vehicles for KIA (South Korea), Mazda (Japan) and Peugeot (France) brands. It also produces spare parts and accessories for the car industry. THACO s shipping arm, Truong Hai Shipping, also operates a domestic service that connected Chu Lai with Vietnam main ports, Ho Chi Minh City and Haiphong, using the 657 teu TRUONG HAI STAR 3 and the 228 teu TRU- ONG HAI STAR 2. MCC to add another China-Indonesia service MCC : CTI Service Details China Indonesia service Vessels Deployed: Slots on Yang Ming Port Rotation Shanghai, Ningbo, Shekou, Jakarta, Semarang, Surabaya, Hong Kong, Shanghai MCC transport (the Intra Asia arm of Maersk Group) will introduce in mid-may another weekly service connecting drectly the China and Indonesia markets. It will be ensured through co-loading on Yang Ming existing China-Indonesia (CTI) service. MCC will retain the CTI appellation to market the service and its first effective sailing is scheduled on 13 May from Shanghai. The CTI service turns in three weeks using three ships of 2,7 teu that are currently being replaced by 4,2 teu ships, comprising the YM ENHANCER, YM VANCOUVER and another ship that is yet to be named. The service dropped Semarang in early May while adding a direct call at Kaohsiung in Taiwan. In its revised version, it calls at Shanghai, Ningbo, Shekou, Jakarta, Surabaya, Kaoshiung, Hong Kong, Shanghai. The CTI will enhance MCC direct offerings between Central China and Indonesia, adding to its existing IA1 and IA8 services as well as slots on the ANX/ANE operated by KMTC, Sinokor and TS Lines. Apart from MCC, various other carriers are also taking slots on this service including COSCO, Sinotrans, TSL, GSL, HMM and RCL. Page 13 Copyright Alphaliner

14 SERVICE UPDATES COSCO, CNC & PIL revise China-Thailand offerings COSCO/CNC/PIL : China-Thailand Service Details CT2/CV2/CT1 Vessels Deployed: CT2 : 3 x 4, 4,2 teu CV2 : 5 x 2,5 teu CT1 : 3 x x,25 2,7 tue Port Rotation CT2 : Qingdao, Shanghai, Nansha, Laem Chabang, Hong Kong, Qingdao CV2 : Xingang, Qingdao, Shanghai, Ho Chi Minh City, Qingdao, Ningbo, Xiamen, Ho Chi Minh, Xingang CT1 : Dalian, Xingang, Qingdao, Hong Kong, Shekou, Laem Chabang, Hong Kong, Dalian COSCO, Cheng Lie Navigation Co (CNC CMA CGM Group) and PIL are re-organizing their current co-operation in the China-Thailand/ Vietnam trade. These three carriers currently share slots on a China- Thailand service, the CVT-T operated by COSCO and PIL and two China-Vietnam services, namely the CVT-V, operated by PIL and CNC and the CVT2, operated by COSCO with PIL. The existing arrangement was initiated in December 217 through the split of the previous butterfly patterned China-Thailand- Vietnam ('CVT/SVT/CTV') service. The two China-Vietnam services, CVT-V and CVT2 are to be merged into a new butterfly service, branded CV2, operated jointly by COSCO and PIL, with CNC, IAL, OOCL and Aseas Seas Line taking slots on relevant links in continuation of existing arrangements. The current China-Thailand CVT-T service will be closed down and encompassed within the new CT2 service that will be operated by COSCO and CNC, with PIL co-loading alongside Wan Hai. This service will utilise 4,-4,25 teu panamax ships replacing the 2,5 teu ships used in the previous configuration In addition, CNC will also introduce another China-Thailand link, dubbed CT1 that will be ensured through co-loading on CT1/NCT by Wan Hai and COSCO. PIL thus far does not advertise this service. The details of the three loops stand as follows : CT2 Qingdao, Shanghai, Nansha, Laem Chabang, Hong Kong, Qingdao - Rotation in three weeks using three ships of 4, to 4,2 teu, the SEASPAN SANTOS followed by AS MORGANA and MARIBOR by COSCO. CV2 - Xingang, Qingdao, Shanghai, Ho Chi Minh City, Qingdao, Ningbo, Xiamen, Ho Chi Minh, Xingang - Rotation in five weeks using five ships of 2,5 teu that includes four by COSCO, the CSCL PANAMA, CSCL SAO PAULO, CSCL CALLAO and CSCL MANZA- NILLO, followed by a PIL ship, the KOTA PURI, that will shift from the soon to be closed CVT-V. CT1/NCT (CNC slots on CT1/NCT) - Dalian, Xingang, Qingdao, Hong Kong, Shekou, Laem Chabang, Hong Kong, Dalian - Rotation in three weeks using three ships of 2,5 to 2,7 teu. Of note, Evergreen co-loads on the new CV2 service from late April, to implement its previous plan to co-load on 'CVT2' service. Page 14 Copyright Alphaliner

15 SERVICE UPDATES Milaha adds Iraq to its network Milaha : KQX Service Details Kuwait Qatar Express Vessels Deployed: 1 x 1, teu Port Rotation Doha (Hamad), Umm Qasr, Shuwaikh, Doha ''There has been excellent demand on the Qatar-Kuwait service that we launched last year, and we have been looking at ways to further expand that service to give our Iraqi clients and partners more convenience through greater port coverage and reduced transit times. This new service will contribute to the reconstruction efforts in Iraq, and will also help boost the growing trade and economic relations between Qatar and Iraq.'' Abdulrahman Essa Al-Mannai President and CEO, Milaha 2 May 218 Milaha Maritime & Logistics, the shipping arm of Qatar-listed Qatar Navigation Q.S.C. (QNNS), has announced its expansion into the Iraq market with the introduction of a direct call at Umm Qasr, allowing to connect Iraq directly with Hamad in Qatar and Shuwaikh in Kuwait. in this respect, Umm Qasr is added to the current Qatar-Kuwait service, dubbed Kuwait Qatar Express (KQX), that was launched by the company in August 217. It is currently served with the 1,15 teu OSHAIRIJ, that offers 12 reefer plugs. The first direct call at Umm Qasr is scheduled on 9 May. According to Milaha, the service will offer a competitive transit time of two days between Hamad and Umm Qasr, making it ideal for dry and refrigerated foodstuff, consumer electronics and construction materials. Based on Alphaliner records, the service will add to two container services connecting directly Hamad with Umm Qasr, one being a local service, the IAGX operated by Tehama Shipping and Prime Maritime using two ships of 2,7 and 4,3 teu, and the other being a long haul Yang Ming service wayporting in both ports, the CGX. Milaha has started to enhance its international presence early last year and the move was intensified after the mid-217 diplomatic row bewteen Qatar and its Arab neighbors, that involved economic sanction. Milaha service network currently covers Sohar and Salalah in Oman, Nhava Sheva, Mundra and Kandla in India, Shuwaikh in Kuwait, Karachi in Pakistan, Colombo in Sri Lanka and Chittagong in Bangladesh. MSC restructures Baltic loops - Starts using Klaipeda as a hub Annual Throughput in TEU 5, 45, 4, 35, 3, 25, 2, 15, Container throughput at Klaipeda (2 217) MSC is reorganizing its NW Europe-Baltic feeder services this month as it starts to use Klaipeda (Lithuania) as a hub. In this respect, two deep sea services have been extended to Klaipeda and two new weekly feeder services hubbing at the Lithuanian port are organized. One of these two new services hubbing at Klaipeda, branded Baltic Loop 3, covers Tallinn and St Petersburg using the 1,37 teu MSC IRIS while the other, branded Baltic Loop 1, connects both Antwerp and Klaipeda with Helsinki and Rauma with two 1,853 teu ships. The three ships used offer a 1A Ice class notation in view of the icing season. The port of Klaipeda itself is the most northernly ice free large port in the Baltic region. 1, 5, The two deep services extended to Klaipeda are the Europe-Red Sea- Indian Ocean-East Africa 'Indian Ocean East Africa Express' service and the Europe-Australia-South East Asia-Middle East Australia Ex- Page 15 Copyright Alphaliner

16 SERVICE UPDATES press service. MSC : Revised Baltic Services Details Bal c Loops 2/3/7/1 Vessels Deployed: Loop 2 : 2 x 1,7 1,85 teu Loop 3 : 1 x 1,3 teu Loop 7 : 2 x 3, 3,4 teu Loop 1 : 2 x 1,85 teu Port Rotation Loop 2 : Antwerp, Bremerhaven, Kaliningrad, Kotka, Antwerp Loop 3 : Klaipeda, Tallinn, St Petersburg, Klaipeda Loop 7 : Bremerhaven, Ro erdam, St Petersburg, Tallinn, Bremerhaven Loop 1 : Antwerp, Klaipeda, Helsinki, Rauma, Antwerpen The NW Europe-Baltic strings of these two services act themselves as Baltic feeder loops connecting at Antwerp, Rotterdam and Bremerhaven with other MSC long haul services. They replace the former NW Continent-Poland-Lithuania Baltic Loop 4. Of note, St Petersburg will continue to be connected directly with Antwerp through the Antwerp- St Petersburg string of the North Europe-West Africa Angola Express service. As a consequence of this restructuring, the existing Baltic Loop 3 linking both Antwerp and Bremerhaven with Kaliningrad and Rauma on a two-week pattern is to be closed. The Rauma call will be shifted to the revised Baltic Loop 1. Kaliningrad, so far covered with the 'Loop 3', will as from this week be served by the revised Baltic Loop 2 at the expense of the call at Le Havre. MSC is also adding Tallinn as an extra call to its NW Continent-St Petersburg Baltic Loop 7. Details of the revised services are as follows : Baltic Loop 2 Antwerp, Bremerhaven, Kaliningrad, Kotka, Antwerp (2 x 1,7-1,85 teu). Baltic Loop 3 Klaipeda, Tallinn, St Petersburg, Klaipeda (1 x 1,37 teu). Baltic Loop 7 Bremerhaven, Rotterdam, St Petersburg, Tallinn, Bremerhaven (2 x 3,-3,4 teu). Baltic Loop 1 Antwerp, Klaipeda, Helsinki, Rauma, Antwerp (2 x 1,85 teu). The Klaipedos Smelte terminal is part of the worldwide terminal network of Terminal Investment Limited (TIL sister company of MSC). It can handle ships of up to 11,5 teu using 3 ship-to-shore gantries at a 1,45m long berth. The terminal will as from this month handle four weekly MSC services: Indian Ocean East Africa Express (1 x 4,8-8,2 teu) Australia Express (15 x 5,55-7,85 teu) Baltic Loop 1 (2 x 1,85 teu) Baltic Loop 3 (1 x 1,37 teu) (Above) Klaipedos Smelte terminal Page 16 Copyright Alphaliner

17 SERVICE UPDATES COSCO boosts Centram, NCSA & Caribbean coverage COSCO/X-Press : CIXX/CIX Service Details Colombia Island Express Vessels Deployed: 3 x 87 1,1 teu Port Rotation Manzanillo (Pan), Colon Coco Solo, Cartagena (Col), Barranquilla, Santa Marta, Cartagena, Manzanillo (Pan), Colon Coco Solo, Moin, Colon Coco Solo, Manzanillo (Pan), Kingston, Port au Prince, Manzanillo (Pan) COSCO Shipping is to enhance its presence on the Central America, NCSA and Caribbean markets by contributing tonnage on X-Press Feeders' Panama-NCSA-Caribbean Colombia Island Express weekly service (CIX), that COSCO brands CIXX. The CIX/CCIX service calls at Manzanillo (Pan), Colon-Coco Solo, Cartagena (Col), Barranquilla, Santa Marta, Cartagena, Manzanillo (Pan), Colon-Coco Solo, Moin, Colon-Coco Solo, Manzanillo (Pan), Kingston, Port au Prince, Manzanillo (Pan). It turns in three weeks, using three vessels of 877-1,1 teu. COSCO Shipping will contribute from this week one of the three vessels in the service, the 1,118 teu VEGA OMEGA, freshly chartered from German owner Vega Reederei, which will replace the 877 teu VEGA ZETA, operated by X-Press. The service will continue to cater for the feedering needs of other carriers, including Zim, APL, ONE, Maersk Line, Evergreen, Melfi and King Ocean. The CIXX service will allow COSCO to strengthen its coverage of the Colombian and Costa Rican markets while developing its presence at Port au Prince (Haiti). Connections with the carrier s long haul network will be provided via transhipment in the Panamanian and Jamaican hub ports. COSCO has been involved in the NCSA, Centram and Caribbean sector for the past 15 years, using either dedicated services or common feeders, including the 'CIX'. Page 17 Copyright Alphaliner

18 DELIVERY/VESSEL UPDATES The RAYEN (14,476 teu) joins IRISL Cellular Containership Deliveries April 218 Name Teu Operator COSCO SHIPPING GEMINI 2,119 COSCO COSCO SHIPPING LEO RAYEN MADRID BRIDGE KOTA PERABU KOTA PERDANA KOTA PERKASA CMA CGM CALCUTTA 19,273 COSCO 14,476 HDASCO 13,87 ONE 11,923 PIL 11,923 PIL 11,923 PIL 1,1 CMA CGM POLAR BRASIL 3,83 Maersk POLAR PERU 3,83 Maersk VOLGA MAERSK 3,596 Maersk EVER BEADY 2,926 Evergreen KMTC SURABAYA 2,86 KMTC ZHONG GU LIN YI 2,518 Zhonggu Logistics NORDMARCH 2,5 KMTC REN JIAN HAI SHUN 2,444 QASC G. BOX 1,714 Swire Shg HUANG HAI 2 55 Meratus Cellular Containership Deliveries May 218 Name Teu Operator MUMBAI MAERSK MAERSK HAMBURG 2,568 Maersk 15,282 Maersk The RAYEN, first of four 14,476 teu containerships ordered by the IRISL Group (Iran) at Hyundai H.I. in Korea in December 216, has been completed. The ship, which flies the Hong Kong flag, is managed by Hafiz Darya Arya Shipping (HDASCO), part of the IRISL Group, and is expected to join the Far East-Middle East Gulf HDM service in May. These four ships are the largest containerships to be operated by the Iranian carrier, dwarfing the five 6,5 teu units built in 28 that are currently the largest ships in its fleet. The three remaining newbuildings, named respectively as the RADIN, BARZIN and HAMOUN, are expected to be delivered by August 218 and are all expected to join the HDM service. The service currently turns in six weeks using six ships of 5,1-6,5 teu and calls at Qingdao, Xingang, Dalian/Inchon (alternate calls), Busan, Lianyungang, Shanghai (Yangshan), Jebel Ali, Bandar Abbas, Qingdao. The new IRISL ships will also be the largest ships to call in Iran. These ships are neo-panamax units of 366 m length and 48.2 m beam (19 rows). Currently, the largest ships calling at Bandar Abbas are the neo-panamax 13, teu class ships deployed by HMM on its Korea -China-Middle East Express (KME) service, that feature similar dimensions to the new IRISL units but have a smaller nominal intake. The MAERSK HAMBURG (15,282 teu) is delivered APM-Maersk has received the MAERSK HAMBURG, seventh of 11 new 15,282 teu ships ordered at Hyundai Heavy Industries for delivery between mid-217 and early 219. The order for the first nine units was placed in July 215, with two options added in 217. All ships in the series will be managed by the APM-Maersk Group s Singapore branch and they will fly the Singapore flag. The MAERSK HAMBURG follows the MAERSK HANGZHOU, delivered in February. The MAERSK HAMBURG proceeded last week to Nakhodka for a bunkering trip before joining the Asia-Med AE-2/Dragon operated by Maersk with MSC within the 2M framework. In terms of dimensions, the new H-type units are in a class of their own, with more compact dimensions than other ships of comparable teu intake and an Lbp to B ratio of only 6.3. At 353. m long and 53.5 m wide, the vessels feature 21 container bays and can stow 21 rows of containers on deck. With this compact footprint, the ships are one row wider than the new 2 row maxi-neopanamax ships of 14,-15, teu (extended from current 19 row limit from June 218). At the same time, they are one bay shorter than both these ship classes (See pictures and details in Alphaliner Newsletter ). Page 18 Copyright Alphaliner

19 DELIVERY/VESSEL UPDATES * May Apr Mar Feb 218 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 217 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 216 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 215 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 214 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 213 Jan Cellular Containership Deliveries by Month The POLAR BRASIL (3,83 teu) is delivered Hamburg Süd has taken the 3,83 teu POLAR BRASIL on 27 April, chartered from Costamare Shipping. She is the last of eight 3,83 teu high reefer capacity Polar class newbuildings contracted in 215 with Jiangsu Yangzijiang Shipbuilding (China). She follows the POLAR PERU, delivered on 26 April. The eight ships are fitted with 1, reefer plugs. For her maiden trip, the POLAR BRASIL will proceed to the Caribbean through an eastbound trip on the Maersk Line-Hamburg Süd 'AC- 5/ ASCA service. The ship could then join Hamburg Süd's Europe- Mexico-Central America service (EMCS), on which four of her six sister ships are already assigned. The eight new vessels, based on the 'YZJ 38' design, are shared between three owners, with Hamburg Süd itself having contracted four units in July 215 with four options. The four options were later retaken by Peter Döhle and Costamare and converted into firm orders with long term charter agreements with the German carrier. The new ships have been specifically designed for trades with a high amount of temperature-sensitive cargo. They are fitted with two cranes covering certain holds and can ply at a commercial speed of up to 22 knots, impelled by a seven-cylinder MAN-B&W engine of the S7ME-C8 model developing 19,62 kw at MCR. The REN JIAN HAI SHUN (2,444 teu) is delivered Antong Holdings has taken in charge the REN JIAN HAI SHUN, a 2,444 teu containership built by the Xiamen shipyard and aimed at the China domestic network operated by its affiliate Quanzhou Ansheng Shipping (QASC). She is the sixth unit in a newbuilding program totalling 16 similar ships contracted with the Xiamen Shipyard and the Taizhou Sanfu Shipyard (including a further four orders concluded earlier this year, adding to the initial 12 orders). These ships are based on a SDARI design and are characterized by a high deadweight of around 4, tons, a bulky hull shape, a slow service speed and a small main engine. They feature an Loa of 177 m and a breadth of 32.2 m. The REN JIAN HAI SHUN follows the REN JIAN RI ZHAO, delivered in March. TEU Delivered Units Delivered * Deliveries recorded month to date Page 19 Copyright Alphaliner

20 PORT UPDATES ZPMC delivers additional cranes to Freeport Bahamas Freeport Container Terminal (FCT) at Grand Bahama, a joint venture of Hutchison Ports (51%) and TIL (49%), last week received three new ship-to-shore gantries from ZPMC. The Chinese manufacturer delivered the equipment from Shanghai with the heavy load vessel ZHEN HUA 15. Photo: Hutchison Ports FCP (Above) Aerial view of the container terminal at Freeport Grand Bahama. The photo shows the terminal before the new gantries were placed on the quay. Which carriers call at Grand Bahama? Today, FCT is primarily used by its coowner MSC (sister company of TIL) and by MSC's alliance partner Maersk Line. The terminal is used by ships of up to 11, teu and Freeport's largest callers trade on the Suez-Canal-routed Fas East - USEC service TP-11. Regional carriers that make occasional calls at the terminal include Seaboard Marine, King Ocean and Tropical Shipping. Freeport Container Terminal's new ZPMC gantries have an outreach of 68 meters and a lift capacity of 61 tons. With these dimensions, they are well-suited to serve very large and ultra large container ships. The terminal used to be equipped with eight large, but not ultra-large, container gantries until 216, when Hurricane Matthew, a Category 5 Atlantic hurricane that had catastrophic effects in parts of the Caribbean, heavily damaged some of FCT's gantries. As a stopgap measure, the terminal brought in two large mobile harbour cranes to help handle containers until the gantries were fixed again. Most units could eventually be repaired and only one had to be broken up on-site in August 217. The new shipment from ZPMC thus increased the crane count at FCT to ten units. The most recent deliveries were installed in the terminal's north, where a USD 3M expansion module is currently under construction. Upon completion, the new extension will increase the length of Grand Bahama's container pier from 1,36 to 1,535 m, with a yard area of 63 hectares. Berth depth will remain unchanged at 15.5 m. The expanded FCT will have an (estimated) capacity of at least 2.4 Mteu. Westports Kelang acquires land for further expansion Port Kelang's Westports Holdings, one of two container terminal operators on the Malaysian Straits hub of Port Kelang, has acquired land for a further expansion of its box handling facilities. Photo: Westports Holdings (Above) The 14,74 teu container vessel CSCL MERCURY of COSCO Shipping is being handled at Westports Port Kelang. According to a recent stock market announcement, Westports has bought a 154-hectare plot of leasehold land on Pulau Indah, the mangrove island where the terminals are located, from the Selangor State Development Corporation. Westports paid MYR M (USD 29.6M) for the site, which is located at the southern tip of Indah Island. The company said that the purchase will be funded entirely in cash from internally-generated funds and bank borrowings. Westports typically expands its terminal(s) successively in a modular fashion, whereby each pier module typically adds 6 metres of new Page 2 Copyright Alphaliner

21 PORT UPDATES Port Kelang & Singapore expand The purchase comes six months after the Government of Malaysia granted inprinciple approval of Westports' plan to more than double its annual box handling capacity to 3 Mteu over the next decade. The announcement of this massive project already prompted MMC Corp, one of Westports' fiercest competitors, to bury plans to build a new Mega-Terminal at Carey Island, near port Kelang. In some respect, the expansions in Malaysia's mainport are a reaction towards Singapore's efforts to build a 65 Mteu container terminal at Tuas (see last week s Alphaliner Newsletter #18). berth space. With a depth of 4 m, each module covers around 24 hectares, which means that the recently-procured land could fit at least six new terminal modules. In reality, the site will accommodate up to ten modules, as the size of the individual plots will be increase significantly by land reclamation and by the construction of cantilevered berths that protrude out into the fairway. Westports Holdings Stated: 'The proposed acquisition is for a terminal expansion as the current preliminary port design for Container Terminal 1 to Container Terminal 19 requires additional land acreage to accommodate new wharf and container yard space to facilitate the effective operations of the new container terminals'. ADNOC-L&S to handle Borouge volumes at Ruwais Port ADNOC Logistics and Services, the shipping and services arm of the Abu Dhabi National Oil Company (ADNOC), has signed a contract with Borouge, a leading provider of plastics solutions, to handle the company's Ruwais container terminal operations. Borouge is a manufacturer of polyolefins (plastics). The company is a joint venture of the Abu Dhabi National Oil Company and Borealis of Austria. Founded in 1998, Borouge has is main bases in Abu Dhabi and in Singapore, with a main production plant at Ruwais. The company supplies polyolefin plastics, mainly to the Middle East and Asia Pacific. The five-year contract, awarded through a competitive bidding process, is the first deal signed between Borouge and ADNOC Logistics and Services as a new integrated entity, following the integration of IRSHAD, ESNAAD and ADNATCO into a single ADNOC operating company. Under the terms of the contract, ADNOC Logistics and Services will carry out all handling operations of Borouge's packed and palletized products and bulk loaded containers. ADNOC Logistics and Services will handle up to 8, teu per annum at the UAE port of Ruwais. The port of Ruwais features two small container terminals with a pier length of 38 and 5 m, respectively. The Abu Dhabi National Oil Company (ADNOC) is the state-owned oil company of the United Arab Emirates and one of the joint-venture partners in Borouge (see above). Through its affiliate ADNOC Logistics and Services, the group will new start handling containerized shipments (of plastics granulate) at Ruwais port for Borouge. Both facilities are equipped to handle mid-sized container vessels and they are located directly adjacent to the Borouge Petrochemical production plant in Ruwais, about 25 km west of Abu Dhabi City. Borouge Ruwais' total annual capacity of 4.5 Mtons includes 2.3 Mtons of polyethylene, 1.76 Mtons polypropylene and.35 Mtons low density polyethylene. A dedicated container shuttle service links Ruwais to Abu Dhabi's Khalifa Seasport, where bagged plastic granulate is transhipped to deep-sea mainline services. Page 21 Copyright Alphaliner