The Maritime Overview

Transcription

1 The Maritime Overview Issue No Price: 37, Casino Royale in the Charter Market Poker has been a most popular game, not least since 7 Casino Royale In fact, it s gone so far that even container ship chartering comes down to a poker game these days. After 1 years of crisis we have reached a point where quality and collaboration, integrity and attention to detail don t matter anymore. Instead many companies are taking a poker approach of bluffing and betting and trying to play the board. How else can you explain that major charterers are tendering more than 1 redelivery notices to different owners within one day in a certain vessel segment and then they are waiting for the panic to spread around? Sure, if someone is the chip leader, it is always easy to collect chips from the small and the big blind. In addition, technology is playing into the hands of charterers or chip leaders. Take AIS (automatic identification systems) vessel tracking: It gives liner operators full knowledge of vessel positions and a lot of the commercial implications. Thus it is like the tramp owners are playing with open cards against them. However, the nature of the poker game is a different one, good players need a distinct knowledge how to bluff. In shipping these days it seems that the bluff component, which is a fundamental element of successful playing, remains only with the shipping line and not with the tramp owner anymore. The question then is how to set up a tramp chartering desk in such a market environment. Some might say you must challenge the lines with the same approach. Just hire some good poker players for front-end chartering work, supported by an experienced senior with the necessary shipping knowledge in the background As often, though, simple answers don t work. From our point of view, there is still need for thorough analysis and fact-gathering in order to make rational chartering decisions. All the evidence as we see it tells us that it is not all going to get worse even if the daily press is full of bad news. In a 1 year-perspective, it makes no sense at all to talk the market further down yet the charter market is already down on its knees! Net spot earnings charter rates stripped of average idling costs for employment gaps were shockingly low over the last 1 years, at no more than 6,6 $/day for a 1,7 TEU vessel and 7,3 $/day for a 2, TEU vessel. Of note, all the bit and bobs to the detriment of the owner such as vessel positioning on owner s account between two employments or additional hull clearing are not even included in this figure! Markets at a Glance ConTex 12 mos MoM 24 mos MoM ConTex Shanghai Container Index Spot MoM Monthly Average SCFI NWE MED USWC USEC Bunker Indications Spot MoM Q1 19 MoM Brent WTI IFO Rdm IFO Spore MDO From a fundamental perspective, the tramp owners cards do not look that bad. The strongest trade growth is recorded on routes typically served by smaller and medium sized vessels that represent the bulk of the tramp fleet. The economic tailwinds are broad and bold, as the latest IMF reading again underscored, although their passing economist fired a bit of a warning shot on his leave. At the moment we notice some conflicting data on container volume Dry Bulk Spot & FFA Market Spot MoM Q1 19 MoM development. The latest Container Trades Statistics report showed in total a black zero for Cape global trade growth in August whereas the Institute of Shipping and Logistics still reported a Pmx rising trend in terms of port throughput of 2.3 % year-on-year for the same period. Smx Interestingly enough, even the Sino-American trade war has not dampened container trade Handy volumes so far. In the first eight months, TEU liftings ex. Far East to North America were up. %. Against the expectations, volumes kept climbing even after the imposition of tariffs. On S&P Values a worldwide level, trade growth was offset by slight reductions on the Far East-Europe and Newbld Resale Years 1 Years heavier losses on the Far East/Middle East/India routes, the latter probably caused by the rapid Cape depreciation of the Indian rupee. Coming back to the tramp vessel segment between 1, and Pmx , 16. TEU, there is another factor that gives fundamental tailwind to the tramp owners side: Smx , the low shipbuilding orderbook! In the segments between 3, and 1, TEU, it is Handy basically non-existent with less than 1 contracted units in total. Over the last two years, the Panamax class found a new trading home in the fast growing Intra Asian markets, where today ERNST the biggest RUSS proportion SHIPBROKER of the GmbH fleet & is Co. employed. KG In the sectors between 1, and 3, TEU Exchange Rates Neumühlen there are 11 9 vessels on order but against a total operated fleet of 1,3 ships. No doubt, EUR USD GBP JPN PO there BOX: is bound 14 7 to be a substantial supply demand gap in favour of tramp owners. How to play EUR - 1,1381, ,92 DE it then? In Hamburg poker terms the facts are clear: shipowners are holding the pocket aces, yet they USD, , ,398 Tel.: hesitate to 38 raise 33 the - bet against the chip leader GBP 1, , ,74 JPN,782,89,694 - ERNST RUSS SHIPBROKER GmbH & Co. KG Neumühlen 9 Container Department container@russbroker.de PO BOX 14 7 Dry-Bulk Department cape-panmax@russbroker.de Handy & MPP Departmen handy-mpp@russbroker.de D Hamburg S&P Department snp@russbroker.de Research Department research@russbroker.de

2 Container Timecharter Development Chartermarket Comment - October 218 Tonnage demand during the first half of October was lagging behind expectations, which explains why charter rates continued edging down in the majority of segments. Vessel fixing then gained momentum, resulting in a burst of activity especially for traditional post-panamax tonnage and for panamax vessels in the final one or two weeks of the month. We believe that spot, prompt availability has basically been cleared out in the post-panamax class, putting the market on a fairly sound footing for the coming weeks. The earlier lack of requirements saw the idle boxship fleet grow by about 69, TEU to 8, TEU as per middle of October, representing 2.6 % of world container fleet capacity. Steep increases in idle units were recorded in the segments between 2, and,1 TEU. 116 of all the 19 idle vessels were unemployed tramp tonnage that was immediately available for charter, hence pressure on rate levels became more intense. However, things have changed since then In view of the stable trade development and high load factors for carriers on many services (except Far East westbound routes ), we were always expecting enquiry from charterers to rebound in the autumn. Admittedly, it happened later than expected. But with the surge in fixing volumes for large vessels that we saw at the end of the month, spot availability of post-panamax types seems to have been wiped out completely. Some are still idle, but they will all have to deliver and commence their agreed employments during the coming weeks. It is an all-familiar story: First, tonnage supply goes up, charter rates tumble until charterers realize they can make a bargain, so they come back to the market in droves to fix vessels. Analyzing recent postpanamax fixtures, we see a good amount of long-term employments at reasonable rates, sometimes based on investment commitments for scrubber retrofits by the owners, and we also see quite a number of speculative fixtures at low rates, with flexible periods and/or options attached. Owners had to swallow some bitter pills, but the important thing is that the supply demand balance has been restored for the large vessels. That should allow owners to bring rates up again in the next fixtures from latest benchmarks of around $ 12, for 8, TEU ships. Most likely, the overall pool of idle vessels will shrink during November as it did last year following the recent strong activity for bigger ships. Traditional panamax vessels enjoyed an upturn in demand as well after spot availability peaked at more than 2 units worldwide during mid-october, with rate levels drifting lower in a range between $ 1, to $ 12, throughout the month. Latest benchmarks are in the low/mid $ 1, s. As it stands, baby panamax vessels are nearly sold out again in the charter market at the time of writing while maxi-panamaxes still face problems securing employment. Below 4, TEU, there was a gentle softening in rates for most types and size classes despite good activity especially for vessels between 2, and 3, TEU with over fixtures throughout the month. Gearless 2,8 TEU types (Aker, Thyssen, Mipo) saw fixing levels descend gradually below $ 11, to mid/high $ 1, s in Asia as a couple of unfixed vessels kept up the competition. Modern 2,7 TEU wide-beam designs are holding their ground, though, at last done of $ 13,7 in Asia. There are only few ships of this type in the water and charterers are eager to add them to Chittagong services for increased efficiency. Meanwhile the situation in the feeder classes below 2, TEU looks more mixed. The 1,7 TEU type is still struggling amid lack of opportunities, especially in Asia where rates for standard Wenchong vessels were falling towards low $ 8, s. Latest efficient designs such as the Topaz-type also had to make concessions. On a regional level, Europe finally saw fixing activity pick up for ships up to 1, TEU, partly driven by the arrival of the Morocco citrus season and the expansion or implementation of new fruit-orientated services in the trade to the continent and Baltic. This time operators opted for 7, 9 and 1, TEU ships with good reefer intake for the Morocco season that runs until spring. There were even slight improvements in charter rates for ships up to 7 TEU on the back of low vessel availability. However, charter rates for 8 TEU and for larger ships were still trickling downwards because of a continued tonnage surplus, albeit at a reduced level. In the Caribbean, the limited action we saw was often related to service restructurings such as upsizing from 1,1 to 1,3 TEU and from 1,3 to 1,7 TEU. Rates for 1,7 TEU ships remained under pressure in the region anyway as plenty of tonnage is still readily available in the Atlantic. There was little activity in the 1,1 TEU and smaller segments, causing another geared 7 TEU vessel to head off from the Caribbean towards Europe, continuing the trend of small ships leaving the Caribs. In Asia, both 7 and 1,1 TEU vessels registered further minor rate declines. One area of the market that has come under heightened pressure is the Calcutta trade where shallow-draft ships started facing difficulties obtaining their traditional premiums over standard ships. Current State of the Market - 2, TEU geared 3% 4% % 6% 7% 3% 4% % 6% 7% 2% 8% 2% 8% 1% 9% 1% 9% % 1% % 1% Big Picture Long Term - 1 years Small Picture Short Term - last year * The tachometer equates to the percentiles of the distribution. Example: Todays 1.73 USD for a 2, TEU vessel represents the 44th highest value within the last year

3 Container Timecharter Development Container Timecharter Rates Vessel class ConTex geared 12 Months 2. TEU 2.7 TEU 3. TEU 4.2 TEU geared gearless gearless gearless 12 & 24 Months 12 & 24 Months 12 & 24 Months 12 & 24 Months Ref. Date 2.1 Month on Month (MoM) in [%] Quarter on Quarter (QoQ) in [%] Year on Year (YoY) in [%] ,% -,6% -6,9% -4,% -3,8% -3,6% -4,% -4,2% -4,2% -8,3% -7,1% ,2% -1,9% -13,3% -9,4% -9,% -6,% -6,2% -7,2% -6,9% -12,1% -11,1% ,% -1,2% 8,% 19,8% 16,4% 17,1% 13,6% 3,2% 28,1% 3,% 27,3% Momentum* 2 Days Days Days Okt Sep Aug Jul Jun Q Q Q Q Q Q Q Q Q * For a definition of "Momentum" please see the inner backpage Gearless Vessels TEU TEU 3. TEU 4.2 TEU Gearless Vessels Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt M 3.-12M M 3. Geared Vessels TEU 12. Geared Vessels TEU 1.7 TEU 2. TEU 2. Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt M M 2.-12M

4 S & P Container - Transactions State of the Market: S&P Market Comment: still distressed Pessimists might argue that the S&P market was dull, nervous and in - No Willing Seller - retreat during October, September and August. Yes, only 8 % of all year-to-date sales took place during that period while some sales failed to obtain board approval. However, looking at the market trends in recent history like in 217, you can find a similar seasonality. The background was a challenging market as liner operators took advantage of the Golden Week slowdown in the charter market, also trying to abuse political uncertainty (tariffs ) to force owners into lower and more flexible time charter deals. The outlook is more positive, though. History tells us that the coming months should be more active again. Owners should trust in that and take confidence from it. If the charter market continues its ascent, you can expect another surge of S&P interest during the period from March to May, with deal volumes perhaps reaching % of the total, as we saw this year. Clearly, the coming weeks could be just the right time to look into further purchases ahead of another upward push in prices next year. There is room for optimism, unless global politics cause trade volumes to falter. There are also fresh positive signals for the overall supply demand balance as the recycling prices have a firmer tendency. Certainly, the demolition sale of the MSC Korono (about 1,8 ldt.) at around $/ldt galvanized more hesitating sellers into action. Demolition finally became a major topic again. In numbers, one third of all the demolition sale volume this year was done in October, with more candidates under discussion. 7, TEU so far this year is not exciting, however every ship leaving the market helps, and firm demo rates may attract more owners to look into this option again. There was another notable leasing-type transaction, with Minsheng securing vessels between 2,8 and 4,2 TEU from CMIG Leasing at $ 88.9 mill. en bloc, basis long-term charter back to PIL. Such deals have been the flavour of the last couple of years already, with leasing companies eager to secure high volumes and preferably liner company charter cover. We understand, though, that the appetite is finally fading. No. Vessel 1 NYK Aphrodite 2 Kota Lihat 3 Argos 4 Eemsdijk Built Age TEU From NYK to Cyprus Maritime From Navigia to European Owner 2 nd Hand Transactions Hom Gear Spd. Cons. Yard Eval. Price in $ IHI 6 12,7 softer Mio x4 18 From CMIG Leasing to Mincheng Financial - BBHP Structure for 88,9 mill en bloc From Technomar Spg to European Owner Dalian , Jiangsu Small Feeder financial deal softer in line with market en bloc high 14 Mio. 7 Mio. 2nd Hand Transactions within the last year Cluster / Age Total Post-Pmx Mid-Size Feeder 4 - illiquid 9 - illiquid - illiquid 1 - illiquid 8 - fair activity 26 - moderate 12 - illiquid 99 - fair activity 24 - moderate moderate 8 - illiquid illiquid 12 - illiquid 318 Post-Pmx Mid-Size Feeder

5 S & P Container - Valuation Short-Term Price Development USD in Mio. Newbuilding Korea Newbuilding China years 1 years 1 years Scrap 4.2 TEU 3. TEU Okt. MoM QoQ YoY Okt. MoM QoQ YoY Okt. MoM QoQ YoY wide beam designs are more common wide beam designs are more common 2.7 TEU wide beam designs are more common 1, , , , , -1, -1, 2, 12, -1, -2 2, 9, -1, , , -, -, 1, 8,,,,7 7,,1,2,8,3,1,1,6 REMARK: The prices on the left side represent rough indications in a illiquid and DISTRESSED market. Some prices are derived from a Research model. USD in Mio. Newbuilding Korea Newbuilding China years 1 years 1 years Scrap 2. TEU 1.7 TEU 1.1 TEU Okt. MoM QoQ YoY Okt. MoM QoQ YoY Okt. MoM QoQ YoY wide beam designs are more common wide beam designs are more common 17, -1 14, -1, -1, -, 14, -1-1, 9, -, -,, 12, , 11, -, -, 2, 6, -, -, 1, 8, -1, -1,, 7, 2, 4, -, -, 4,8,1,1, 3,,,, 2,2,,1,2 *please refer to our newbuilding page. Prices are quoted ex Yard. Delivered prices are higher Price Levels for a willing Buyer and Seller In case of a specific requirement, we strongly recommend to call directly the S&P department. Age years 4.2 TEU ( TEU gless) 1 years Type Dalian 42 Samsung TEU ( TEU gless) Buyer Seller Age Type Buyer Seller years Shanghai years B178 - geared years Hyundai years Samsung , years 2.7 TEU ( TEU gless) 1 years 1 years Hyundai 28 CS 27 Gdynia TEU ( TEU geared) years Jiangsu & VW , 1 1 years Hyundai years MTW TEU ( TEU geared) 1.1 TEU ( TEU geared) years Wenchong years years years CV 11 9 B17 1 years 6, 7, 1 years 3,, Long-Term Price Development 2nd Hand Prices - years 2 nd Hand Prices - 1 years Y 3 Y 2 Y 17 Y Y 3 1Y 2 1Y 17 1Y * Prices are adjusted with the US consumer price index

6 S & P Newbuilding Newbuilding Prices USD in Mio. ex Yard Origin Hom. Extras Equipment & Equity costs Total Extra Price per Delivered Capacity (*) Supervision (*) Costs hom. TEU Price MoM QoQ YoY 14. TEU 11 Korea 4,6 3,87 12, ,8 113 China 4, 4,62 13, TEU 8 Korea 3,4 2,86 8, ,3 8 China 3,2 3,27 8, TEU 6 Korea 2,6 2,19 7, ,3 6 China 2,4 2,4 7, TEU 48 Korea 1,9 1,61, ,8 44 China 1,8 1,8, TEU 41 Korea 1,6 1,38 4, ,8 4 China 1,6 1,64, TEU 32 Korea 1,3 1,8 3, ,2 3 China 1,2 1,23 3, TEU 2 Korea 1,,84 3, ,2 23 China,9,94 3, * Extras: additional costs for standard specification upgrade. Equity cost for prefunding based on payment terms 4*1/6 with 1% p.a. Newbuilding Month Quant/Size Yard - Buyer - Comment Hom. Spd Cons gear Price per hom Price ex Yard (*) 1 Okt 18 4x TEU From: Guangzhou Wenchong For: Delmonte hom Del: Cal 2/21 #DIV/! Mio * Without additional costs. Please refer to the Newbuilding section above. 14 Newbuilding Prices 12 1 in Mio. USD Jan. 214 Jan. 21 Jan. 216 Jan. 217 Jan. 218 Jan TEU Korea 9 TEU Korea 48 TEU Korea 2 TEU Korea

7 Post Panamax Activities & Wide Beam Panamax No Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value Hyundai 1 Apr L Long Okt ,4% 1 EXPRESS ROME $27. Europe / Middle East - from Apr.19 - Hapag-Lloyd 36 mos Sep ,1% Jiangsu 1 Mrz L 24,7 27, Mid Aug ,3% 2 SEASPAN GANGES $28. Europe / Asia - from Apr.19 - Hapag-Lloyd 1-12 mos Jul ,1% Jiangsu 1 Jun L 24,7 27, Mid SEASPAN ZAMBEZI $28. Europe / Asia - from Apr.19 - Hapag-Lloyd 1-12 mos 216 Samsung 1 Jun L 24, 2 Long 21 4 NAVIOS UNISON $27. Europe / Med / ISC - from Mrz.19 - Hapag-Lloyd 36 mos 214 Hyundai Apr L 2,2 247,3 Mid SM NEW YORK $12. FE / ISC / ME - from Feb.19 - MSC mos Samsung 8 Aug L 2,3 248,2 Long Period Value MoM Change 6 EUROPE $22. TBA - dely Mrz.19 - MSC abt. 36 mos Okt ,7% Samsung 8 Nov L 2,3 248,2 Long Sep ,% 7 AMERICA $22. TBA - dely Mai.19 - MSC abt. 36 mos Aug ,8% Daewoo 68 Aug L Mid Jul ,6% 8 BUXCOAST $1. TBA - dely Okt.18 - MSC mos Hanjin 69 Jun L 22, 93,71 Short CAPE CHRONOS $12. Transpacific - dely Nov.18 - ONE -12 mos 21 Hyundai Nov L Short MP THE BELICHICK $1.2 FE / ANZ - from Okt.18 - CMA CGM 1- mos 11 MAINE TRADER Hanjin Nov L 24,3 164, Short Cont./Canada - dely Okt.18 - OOCL 1-3 mos $11. Okt ,% Period Value Sep ,% Aug ,6% Jul. 14.3,% Jun ,% *Maxi Panamax Representative Container Fixtures Net Mai ,6% TEU. TEU MoM Change TEU (Pmx beam) MoM Change Average Earnings Timecharterrates TEU. TEU 6.6 TEU 8.8 TEU TEU 6.6 TEU * for a definition of "Average Earning" please see the inner backpage

8 Container Fleet - Overview Deliveries and Scrappings for the Fleet No. Vessel TEU Owner Demolition TEU LDT Built Dest. Price COSCO SHIPPING NEBULA - CSIC COSCO APL PHILIPPINES Fujairah 46 2 CMA CGM LOUIS BLERIOT - Hanjin bm 2.94 CMA CGM VASI SUN ub Cont 47 3 COSCO SHIPPING SAGITTARIUS - CSIC COSCO OEL LANKA YM WELLBEING - Imabari bm Shoei Kisen ISLAND CHIEF KOTA PERWIRA - Jiangsu bm EVER BEING - Imabari 28 MCC DANANG - Tsuneishi bm KHUNA BHUM - Jiangsu 16-BKK PIL Evergreen Nissen Kaiun RCL Control of the Tramp Fleet No Company Ships TEU Share Size Blue Net Chartering ,2% 4.63 Seaspan ,6% 7.41 Bock, Carl ,% 7.71 Hanseatic Unity Chartering ,4% Harper Petersen ,7%.318 Zodiac ,% Danaos Shipping ,%.973 Shoei Kisen ,4% 8.3 Schuldt, H ,2%.82 Contchart ,4% Technomar Spg ,9%.26 ERS (Ernst Russ Shipbroker ,6% 1.21 Number of vessels Demolition - within the last year Age in years Cluster No. Age TEU , , , , , , , , , , , , , , , , Total in TEU 29K 86K 127K 32K Share 1% 4% % 2% * Orderbook without slippage as of today Orderbook & Age-profile of the Container Fleet % 29% 26% 1% % % 1,

9 Demolition & Related Markets Market-Comment on Demolition On a global scale, demolition markets this year were mainly driven by tankers. So far this year, close to three fourths of all the tonnage sold for recycling came from the tanker markets. Shipbreaking capacity for tankers might also become an issue once more after a recent fire on another beached vessel in Pakistan. This has sparked concerns that Pakistan might pull out of the market for tankers once more. Demolition rates were well supported throughout October by the broad firming trend in the iron ore complex. Iron ore prices rose by nearly 12 % to 77 $/t. The overall setting looked more attractive to send vessels to the torch also for container ship owners. We saw no fewer than 16 demo sales from the container ship sector following the strong benchmark set by the MSC Koroni back in September. The next transaction on the OEL Lanka (1,728 TEU) sold by Orient Express Line into the Bangladeshi market was still at very solid levels of 49 $/ldt. Subsequent activity saw levels descending into the 4-47 $/ldt. range which is still good, though. Most of the vessels sold for demolition were less than 2, TEU, barring two panamax units, the biggest one being the APL Philippines (,1 TEU) which opted for green recycling at mid 4 $/ldt levels. Ref. Date Month on Month (MoM) in [%] Quarter on Quarter (QoQ) in [%] Year on Year (YoY) in [%] Demolition Prices Vessel Demolition Prices Other Prices Iron Ore Scrap India(*) China (*) Bangl. Turkey China Turkey ,7% -7,3%,8% 1,% 1,8% 9,3% ,8% -18,% 8,2% -,1% 11,7% 1,8% ,% -32,% 14,8% 44,4% 31,8% 6,7% 2 Days Momentum 6 Days Okt Sep Aug Q Q Q Q Q Q Q Q Q Q Q * Demo prices are based on bulk carriers as per Baltic Exchange Demolition Statistics TEU Total India China Bangl. Okt Sep Aug Jul Jun YTD (*) * only fully celluar vessels / estimation in USD per ldt. Demolition Prices China Sub-Cont. Scrap India in local currency 1 Jul. 16 Jan. 17 Jul. 17 Jan. 18 Jul in Rupee per ldt. Market Expectations Iron ore Scrap Steel 3 Nov (18) 7 7 #DIV/! Dec (18) Jan (19) Q1 (19) Q2 (19) Q3 (19) Cal (19) Cal (2) in USD per mt. 1 Iron Ore Prices Spot Futures Futures - previous month 4 Jul 16 Dez 16 Jun 17 Dez 17 Jun 18 Dez 18 Jun

10 Vessel class 4.2 TEU ( TEU) - gearless Representative Container Fixtures No Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value Samsung 42 Mrz L 24, 133 Short Okt ,2% 1 SEASPAN RIO DE JANEI $12.2 N.Eur/Gibraltar/W. Africa - from Okt.18 - Maersk Line 3-7 mos Sep ,% Hyundai 43 Jun L Short Aug ,8% 2 MATTINA $11.9 PRC / SE Asia - dely Okt.18 - Cheng Lie / CMA CGM 2- mos Jul ,9% Jiangsu 42 Sep L 24,1 1 Short Jun ,1% 3 ELISABETH-S. $11.4 USEC / WCSA - from Nov.18 - Maersk Line 3-8 mos Mai ,7% Hyundai 43 Jan L Short NORTHERN GENERAL $12. UAE / India - from Okt.18 - Global Feeder Shipping abt. 1 mos 216 Daewoo 46 Nov L Short 21 NORTHERN PRELUDE $11. J.A. / India - dely Okt.18 - Qatar Navigation 3- mos 214 Hyundai 43 Jan L 23,3 12 Short CPO NEW YORK $11.2 Aus-NZ / USWC - from Okt.18 - ANL / CMA CGM 3-8 mos Hyundai 43 Okt L Short 7 NORTHERN GUARD $11.2 N.Eur/GIB/W.Africa - from Okt.18 - Maersk Line abt. 2 mos Dalian 42 Nov L 24, 133 Short Sep ,4% 8 NAVIOS DELIGHT $11. China/Taiwan/Aussie - dely Nov.18 - Yang Ming 1-3 mos Aug ,1% Samsung 42 Mai L 22,6 122,7 Short Jul ,4% 9 SINGAPORE BRIDGE $1.1 NE Asia / SE Asia - from Okt.18 - MCC / Maersk 2-12 mos Jun ,1% Daewoo 44 Jul L 24,3 133 Short Mai ,8% 1 ALS CERES $1.7 China/India - dely Okt.18 - Interasia Lines / WHL 1-4 mos Apr ,7% Samsung 42 Jul L Short CUCKOO HUNTER $1.2 Asia/Australia - dely Okt.18 - APL / CMA CGM 2- mos 216 Samsung 42 Jun L 24, 133 Mid SEASPAN SAIGON $1. Med / W. Africa - from Okt.18 - Hapag-Lloyd 9-11 mos 214 Samsung 42 Nov L 2,2 133 Mid RIO GRANDE EXPRESS $1. Med / W. Africa - from Okt.18 - Hapag-Lloyd 9-11 mos CSBC 42 Aug L 21 87, Short 14 TUCAN HUNTER $1. FE / NZ - from Nov.18 - COSCO 3- mos CSBC 42 Okt L 21 87, Short Ytd VENETIA $1. Asia / NZ - dely Nov.18 - COSCO 2-4 mos End of End of Period 4.2 TEU 12M Ø1Y Value MoM Change Average Earnings young MoM Change LTAV - Timecharter old Net End of Market-Development 4.2 TEU 16. Fixtures Record 4.2 TEU TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

11 Vessel class 3. TEU ( TEU) - geared/gearless Representative Container Fixtures 3. TEU 12M No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value MoM Change B178-I Jan L Short Okt ,% 1 HEBE $11. J.A. / Khor Fakkan / Sohar - from Okt.18 - Oman Shipping 4-7 mos Sep ,2% STX 3 Apr L 23,4 119 Short Aug ,7% 2 NORDAUTUMN $11. ALG / W.Africa - dely Okt.18 - Maersk Line 3-7 mos Jul ,2% STX 3 Jul L 24, 13, Short Jun ,4% 3 NORDWINTER $1.8 FE/NZ - from Okt.18 - MCC / Maersk abt. 1 mos Mai ,% Shanghai 3 Mrz L 23, 122 Short CARTAGENA TRADER $1. Intra-Med - dely Okt.18 - Hapag-Lloyd 6-9 mos Shanghai 3 Jul L 23, 122 Short MONA LISA $1. Med / W. Africa - from Nov.18 - Maersk Line abt. 1 mos Shanghai 3 Mrz L 22,9 128 Short SONGA HAYDN $1. China / E.Africa - dely Nov.18 - Maersk Line 2-12 mos Shanghai 38 gr Sep L 2, 8 Short Average Earnings 7 MERKUR FJORD $13.1 FE/S.Africa - dely Okt.18 - GSL / ZIM -7 mos Period Value MoM Change B178-I Apr x Mid Sep ,2% 8 LUTETIA $12.2 USG / Caribs / NCSA / ECSA - dely Nov.18 - CMA CGM mos Aug ,8% B178-I Apr x4 22 1,6 Short Jul ,9% 9 LOUIS-S. $11. Med / W. Africa - dely Okt.18 - Maersk Line 4-7 mos Jun ,3% B178-I Jan x Short Mai ,9% 1 LETAVIA $12.2 USG / Caribs / NCSA / ECSA - from Okt.18 - CMA CGM 4-7 mos Apr ,9% LTAV - Timecharter Ø1Y young old Ytd End of End of * geared fixtures Net End of Market-Development 3. TEU - gless 16. Fixtures Record 3. TEU - gless TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M 3.-24M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

12 Vessel class 2.7 TEU ( TEU) - gearless Representative Container Fixtures No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value Hyundai 28 Apr L 24 9 Short Okt ,8% 1 IRENES RAINBOW $11.4 W.Med / W.Africa - from Okt.18 - Messina -7 mos Sep ,% Baltic CS27 Aug L 22 8 Short Aug ,1% 2 POSEN $11.3 Korea/China/Indon./Vietnam - from Nov.18 - Sinokor -8 mos Jul ,% Hyundai 28 Feb L 23 96,6 Short Jun ,% 3 TRF KAYA $1.3 HKG/Philippines - dely Okt.18 - TS Lines 1-3 mos Mai ,9% Hyundai 28 Aug L 22,3 99 Short CARDONIA $1. Indian Ocean - dely Nov.18 - WHL 4-6 mos 216 Thyssen 27 Sep L 21,6 88 Short 21 LIOBA $1.6 Intra-Asia - dely Nov.18 - Yang Ming 3 mos 214 Hyundai 28 Nov L Mid FRISIA OSLO $1.9 N.Europe / W. Africa - from Okt.18 - Hapag-Lloyd 7-12 mos Hyundai 28 Apr L 23 96,62 7 CAPT. THANASIS Japan/Taiwan/HKG/Straits - dely Nov.18 - WHL Short 1-3 mos $1.3 Thyssen 27 Mrz L 21,7 88 Short Sep ,9% 8 NAJADE $1.6 Thailand/Indonesia - from Nov.18 - Evergreen 4-7 mos Aug ,8% Jiangsu Jan L 18 44,7 Short Jul ,8% 9 BRIGHT $13.7 Spore / Chittagong - from Nov.18 - Sea Consortium 4-6 mos Jun ,8% Maric Jun L 18, 49 Mid Mai ,3% 1 DELAWARE TRADER $13.7 Intra-Asia - dely Nov.18 - Far Shipping Lines 12 mos Apr ,7% Period TEU 12M Average Earnings Value MoM Change MoM Change LTAV - Timecharter Ø1Y young old Ytd End of End of Net End of Market-Development 2.7 TEU Fixtures Record 2.7 TEU TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

13 Vessel class 2. TEU ( TEU) - geared Representative Container Fixtures 2. TEU 12M No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value MoM Change CS 2 Mai x Short Okt ,7% 1 KIEL TRADER $1. FE / Indian Ocean - dely Nov.18 - RCL -7 mos Sep ,2% Xiamen 2 Okt x , Short Aug ,4% 2 CORONADO BAY $1. S.China/Philippines - dely Okt.18 - TS Lines 1-3 mos Jul ,4% Thyssen 2 Nov x Short Jun ,8% 3 KENT TRADER $11. Greece/Turkey/Spain/France - dely Okt.18 - Maersk Line 4-8 mos Mai ,1% MTW2 Apr x Mid JPO ARIES $12. Med / Cuba - dely Nov.18 - Melfi 1-12 mos SSW Super 2 Mrz x Short BOMAR HERMES $1. UAE/Pakistan - from Okt.18 - Simatech 2-4 mos Naikai 2 Dez x Short HELENE S $1. ME / India / East Africa - from Okt.18 - Maersk Line 4-6 mos MTW2 Dez x Short Average Earnings 7 JPO AQUARIUS $12. Caribs - dely Nov.18 - ONE 4-6 mos Period Value MoM Change VW 2 Jun x Short Sep ,% 8 PACIFIC VOYAGER $1. Asia-East Africa - dely Nov.18 - CMA CGM 4-6 mos Aug ,9% Jul ,8% Jun ,4% Mai ,8% Apr ,9% LTAV - Timecharter Ø1Y young old Ytd End of End of Net End of Market-Development 2. TEU Fixtures Record 2. TEU TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M 2.-24M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

14 Vessel class 1.7 TEU ( TEU) - geared Representative Container Fixtures No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value Wenchong 17 Jul x Short Okt ,9% 1 HANSA SALZBURG $9.9 WCNA/S.Pacific/NZ - from Nov.18 - Swire / China Navigation 2-6 mos Sep ,2% B17 Feb x4 19,6 48,6 Short Aug ,1% 2 MIRO $9. W. Med / Near East - from Okt.18 - Messina 4-6 mos Jul ,4% Hyundai 18 Apr x4 21,7 86 Mid Jun ,4% 3 SAN TBN $1. dely Jan.19 - CHIQUITA mos Mai ,6% B17 Jun x4 2 4, 4 GDYNIA TRADER Red Sea - dely Okt.18 - X-Press / Sea Consortium CSBC 17 Feb x4 17, 36 Short AS SERENA $9.2 NE Asia / SE Asia - from Nov.18 - Maersk Sealand 3-12 mos Kouan 18 Apr x4 2, AS SICILIA S.China/HKG/Philippines - dely Okt.18 - TS Lines Wenchong 17 Aug x RHL ASTRUM China/Vietnam - from Okt.18 - COSCO Kouan 18 Nov x4 2 8, Short Sep ,2% 8 JENNIFER SCHEPERS $8.8 Caribs/USEC/Canada - dely Nov.18 - ZIM -12 mos Aug ,6% Wenchong 17 Jul x4 2, 6 Short Jul ,7% 9 ANASSA $8. S.China/Hong Kong/Philippines - dely Okt.18 - TS Lines 1-2 mos Jun ,8% Wenchong 17 Sep x4 2 8 Short Mai ,% 1 RHL AGILITAS $8.7 Manzanillo/Moin - dely Okt.18 - X-Press / Sea Consortium abt. 1 mos Apr ,8% Baltic CS17 Feb x4 19, 7,3 Short 11 CARIBBEAN EXPRESS $8.7 Caribbean - dely Okt.18 - Maersk Line 2- mos Topaz Okt x4 18, 43,2 Short 12 MOUNT GOUGH $11. Malaysia/Spore/Indonesia/Thailand - from Nov.18 - OOCL 4-8 mos B17 Dez x4 2,4 44,7 13 CHARLIE China/Straits/Bangladesh - from Nov.18 - Sinokor Short abt. 2 mos Short abt. 1 mos Ytd Period 1.7 TEU 12M Value MoM Change young old End of End of Short 1-3 mos Short 4-8 mos $9. $8. $8. $ Average Earnings Ø1Y MoM Change LTAV - Timecharter Net End of Market-Development 1.7 TEU 14. Fixtures Record 1.7 TEU TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

15 Vessel class 1.1 TEU ( TEU) - geared Representative Container Fixtures 1.1 TEU 12M No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value MoM Change CV 11 Sep x Mid Okt ,3% 1 JSP BORA $6.2 Spain/N.Africa - dely Okt.18 - MSC abt. 11 mos Sep ,2% CV 11 Apr x , Short Aug ,6% 2 MAUREN $7. China / Japan - dely Okt.18 - Pan Asia / COSCO abt. 1 mos Jul ,9% CV 11 Nov x4 19,6 39,3 Short Jun ,1% 3 IONIAN EXPRESS $6.8 China/Japan - dely Okt.18 - Pan Asia / COSCO abt. 1 mos Mai ,7% CV 11 Feb x4 19,6 41 Short ASIAN SUN $7. Canada/USEC/Caribs - from Okt.18 - Tropical 3- mos CV 11 Jun x4 19,6 42 Short FRISIA ALSTER $6.4 Intra Asia - dely Okt.18 - Pan Ocean 3-6 mos Peene 11 Mai Short AS FIONA $7.9 Spore/Vietnam/China/Myanmar - dely Okt.18 - RCL 4-7 mos Imabari 11 Aug , Short Average Earnings 7 NINOS $9.7 Straits/Myanmar/Thailand - from Nov.18 - GSS / COSCO 4 mos Period Value MoM Change Peene 11 Nov Short Sep ,6% 8 PACITA $7. Spore/Vietnam/China/Myanmar - from Nov.18 - COSCO 3- mos Aug ,2% Orskov Mark XI Jan Short Jul ,1% 9 ASIATIC BAY $8. S. China/Thailand/Cambodia - dely Okt.18 - WHL 2-3 mos Jun ,8% Mai ,9% Apr ,4% LTAV - Timecharter Ø1Y young old Ytd End of End of NET End of Market-Development 1.1 TEU 12. Fixtures Record 1.1 TEU TEU Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan M M Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

16 Vessel class 9 TEU (8-999 TEU) - Sietas 168 Representative Container Fixtures Sietas 168 No. Vessel Type Built TEU Hom G/L Spd Cons Period Hire Period Value MoM Change Mitsubishi 9 Dez L 17 Short Okt ,9% 1 METHI BHUM $6.6 Korea / China - from Nov.18 - Sinokor 4-9 mos Sep ,3% Mawei 87 Apr L Short Aug. 7.,% 2 EXPANSA $6.616 Cont/Scandinavia - dely Okt.18 - Unifeeder abt. 1 mos Jul ,3% Small Feeder Sep x Mid Jun ,9% 3 EEMSDIJK $6.1 Intra-Med incl. Libya - dely Okt.18 - CMA CGM 7-9 mos Mai ,6% Zhejiang 6 Apr L Short UNDARUM $.3 FE / Hawaii - from Okt.18 - ONE abt. 1 mos Sietas 16 Apr L 1, 23 Short BF LUCIA $4.9 Greece / Italy - from Okt.18 - Italia Marittima / Evergreen 4-6 mos Mawei 7 Mrz L 17, 33 Short DS BLUE OCEAN $4. N.Eur / Sweden - from Okt.18 - Maersk Line 3-1 mos Zhejiang 6 Apr L Short Average Earnings 7 TINI $.2 Korea/Japan - dely Nov.18 - Taiyoung Shipping 2-3 mos Period Value MoM Change Sietas 16 A Sep L 17 24, Short Sep ,9% 8 GREETJE $4.8 Morocco/N.Eur./UK - dely Okt.18 - Maersk Line abt. 1 mos Aug ,4% MPP Apr L 17, 27 Short Jul ,7% 9 ROMY TRADER $.4 Intra-Med - dely Okt.18 - Containerships 3-4 mos Jun ,2% Mai ,6% Apr ,6% Market-Development Sietas Fixtures Record Sietas 168 & other Sietas 168 Average Earnings Jan. 17 Jul. 17 Jan. 18 Jul. 18 Sietas 168 Average Earnings Short TC 2-6 mos Mid TC 1-14 mos Long TC mos Finance TC 33-6 mos

17 Container Boxrates Development Short Comment on Boxrates The container freight markets remained firm throughout October as space availability on many services especially transpacific and transatlantic trades continued to be tight after the Golden Week holidays. Cargoes keep getting rolled to subsequent sailings on a regular basis, agents and forwarders reported. This is reflected in another marginal increase in average SCFI levels onto further year-to-date highs. Compared with the situation 12 months ago, spot rate levels are 22 % higher today. Of course, bunker prices have gone up significantly in the meantime and (all-inc) freight rates on spot basis have not offered adequate compensation for it. Still, the firm rate landscape over the past weeks and months comes as a positive surprise. Latest price moves showed a further increase on freights ex. Far East to US West Coast, to the East Coast of South America and to South Africa. By contrast, Far East westbound has remained challenging, with SCFI benchmark rates for Shanghai-North Europe and Shanghai- Mediterranean edging lower. Carriers are making another GRI attempt to lift rates to over 1, $/TEU on Asia/Europe per 1 st November but capacity management does not look decisive enough so far to support a major upward push. Container Boxrates Vessel class SCFI - Index North Europe Mediterranean US West Coast US East Coast Persian Gulf & Red Sea Australia & New Zealand East & West Africa South Africa South America (Santos) West Japan (Osaka) East Japan (Tokyo) Southeast Asia (Singapore) Korea (Pusan) Ref. Date 26.1 Monthly Average Month on Month (MoM) in [%] Quarter on Quarter (QoQ) in [%] Year on Year (YoY) in [%] ,8% -7,9% -7,4% 7,% -4,6% 9,1% 2,9% 12,1% 2,8% -11,4% -2,2% -2,2%,8%,6% ,8% -16,8% -14,2% 48,7% 22,1% -,7% -6,8% -1,9% 2,7% -38,4% -,9%,% 2,1% -1,8% ,% 4,7% 1,8% 76,8% 73,4% -1,% -29,3% 7,9% -26,9% -8,4% 4,2% 4,2% -,8% 12,7% Momentum 2 Days Days Days Q Q Q Q Q NB: Month on Month price development is calculated against the monthly averages, due to the high volatility of the spot market! Boxrates Price Development USD per TEU USD per FEU for US East and West Coast Jan. 16 Jul. 16 Jan. 17 Jul. 17 Jan. 18 Jul. 18 Jan. 19 North Europe Mediterranean US West Coast US East Coast

18 Bunker Spot Market Ref. Date Month on Month (MoM) in [%] Quarter on Quarter (QoQ) in [%] Momentum Year on Year (YoY) in [%] Heavy Fuel Oil Gas Oil Crude Oil MGO MGO Brent WTI Rotterdam Singapore Rotterdam Singapore (ICE) (NYMEX) ,% 2,2% -2,% -2,% -9,3% -11,1% ,2% 1,2% 9,3% 1,3% 6,2% -2,9% ,8% 4,9% 32,1% 36,% 27,% 23,8% 2 Days Days Days Okt Sep Aug Q Q Q Q Q Q Q Product Spot Market - Prices Q Q Q Q Market-Comment on Bunkers: Following a peak of 86 $/bbl on 3 rd October, the price of Brent has been on the retreat, falling to 7 $/bbl on the back of the Saudi announcement to increase production to nearly 11 mill. bbl/day, the highest output ever in history. The price correction offers limited comfort to ship operators as marine fuel buyers, though, given the challenges associated with the upcoming. % sulphur cap. The new regulation effective 22 seems to dominate the agenda more and more. At the moment, the tendency is for installation of scrubbers on ships with high consumption even though investment and payback calculations are tricky. What will future pricing look like? What is going to be the discount for traditional 3. % sulphur content fuel versus the new IMO compliant. % sulphur product? After all, this is the margin that can be used for amortisation...as of today, there is no reference price for the. % product worldwide. Therefore all we can do is blend a price assumption from other existing marinerelated future prices from the Chicago Board of Trade. There are three contracts which are relevant: 3. % fob barge Rotterdam heavy fuel oil; the fuel crack spread between 1 % fuel oil and 3. % heavy fuel oil, i.e. a proxy for the 18 cst 1 % heavy fuel oil; marine gas oil. At the time of writing, future traders already see a great opportunity here and the crack spread 1 % versus 3. % is heavily increasing. For a mid- 219 position the crack spread is trading at 1 $/t, i.e. 18 cst is $ 1 more expensive than 38 cst. However, from December 219 onwards the crack spread goes up steeply, to as high as 9 $/mt. Based on these three products, you can create a theoretical blend of heavy fuel oil with. % sulphur content, made up either of 88. % heavy fuel oil and 11. % marine gas oil or of 43. % IFO 18 and 6. % MGO. Using this method, blending down to. % from 3. % heavy fuel oil will lead to a price of 62 $/mt, representing a very favourable price spread of $ 33. Blending based on the 18 cst product results in a price of 82 $/mt still a differential of 233 $/mt! Both scenarios would ensure the amortization of a scrubber within quarters. However, supply constraints are likely to be an issue given that only the last 1 % of global fuel production worldwide is for the marine markets and within the marine markets 8 % to 9 % are high sulphur qualities. We strongly doubt that the worldwide refining process can be changed within weeks to provide the necessary new mix. Therefore we see a fair chance that exemption rules will be applied for burning high sulphur product even after January 22. If that is case, the whole amortization calculation for scrubbers will be null and void. The cards would be shuffled again. Long-Term Price Trends Short-Term Price Trends 1 Crude Oil 8 Crude Oil USD per barrel Brent WTI 4 Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt. 18 Brent - Spot WTI - Spot 8 Heavy Fuel Oil 6 Heavy Fuel Oil 7 USD per mt Rotterdam 38 Singapore 3 Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt Rotterdam 38 Singapore

19 Bunker Futures Market Futures Crude Oil Brent WTI Period MoM Change MoM Change Spot 77,3-7,6-8,9% 67, -8,3-11,1% Dec (18) 77,3-7,6-9,% 67, -8,1-1,8% Jan (19) 77,4-7,1-8,4% 67,2-7,8-1,4% Q1 (19) 77,3-6,8-8,1% 67,3-7, -1,% Q2 (19) 77,1-6, -7,2% 67,7-6,6-8,9% Q3 (19) 76, -,4-6,6% 67,6 -,7-7,7% Cal (19) 77,3-6, -7,7% 67, -8,2-1,9% Cal (2) 76,7 -,8-7,% 67, -6,2-8,4% Cal (21) 74, -3,7-4,8% 6,6-3,6 -,2% Cal (22) 71, -2,3-3,2% 63, -2,2-3,4% Cal (23) 68, -1,8-2,% 6,6-1, -2,4% 8, 8, 7, 7, 6, 6,, Crude Oil - Forward Curve Spot Dec (18) Jan (19) Q1 (19) Q2 (19) Q3 (19) Cal (19) Cal (2) Cal (21) Cal (22) Cal (23) Brent - today WTI - today Brent - previous month WTI - previous month Heavy Fuel Oil 38 Rotterdam 38 Singapore Period MoM Change Spot ,% ,2% Nov (18) ,% ,% Dec (18) ,% ,7% Q1 (19) ,4% ,7% Q2 (19) ,9% ,4% Q3 (19) ,6% ,4% Cal (19) ,% ,1% Cal (2) ,7% ,7% Cal (21) ,4% MoM Change Heavy Fuel Oil - Forward Curve Spot Nov (18) Dec (18) Q1 (19) Q2 (19) Q3 (19) Cal (19) Cal (2) Cal (21) Rdm - today Sing - today Rdm - previous month Sing - previous month Gas Oil MGO Rotterdam MGO Singapore Period MoM Change MoM Change Spot ,% ,% Nov (18) ,1% ,4% Dec (18) ,9% ,% Q1 (19) ,4% ,7% Q2 (19) ,2% ,3% Q3 (19) ,9% ,9% Cal (19) ,1% ,2% Cal (2) ,4% ,3% Cal (21) ,4% Gas Oil - Forward Curve Spot Nov (18) Dec (18) Q1 (19) Q2 (19) Q3 (19) Cal (19) Cal (2) Cal (21) Rdm - today Sing - today Rdm - previous month Sing - previous month Brent in USD per barrel Longterm Bunkerprice Developments & Forward Curve IFO 38 Rotterdam in USD per mt Brent Spot Brent Future 38 Rdm Spot 38 Rdm Future

20 Bulk Market - Timecharter Development Chartermarket Comment - October 218 It was a fairly flat market in the dry bulk sector last month, with the Baltic Dry Index registering a small drop month-on-month as per 26 th October. Earnings trends in the different size classes were either marginally up or down. All in all, fourth quarter trading has failed the expectations so far. The spot time charter average for capesize vessels is up a bit at circa $ 19,, however that is still a few thousand dollars below the earlier mini-peak during August. The market is at best stable and volatility is very low, but that is little comfort for owners. All those high expectations for the fourth quarter are increasingly superseded by doubts. The basic problem is that iron ore spot chartering activity ex. Brazil has been too sporadic to boost fleet utilization in the capesize sector while supply constraints in Australia and South Africa partly maintenance-related also acted as a drag on demand. Export data from Brazil looks supportive as such, with iron ore shipments reaching a new quarterly record of 1. mill. tons in Q3. But it seems that more and more cargo gets shipped under contracts of affreightment by the growing armada of valemaxes, leaving ships in the spot market exposed. It remains to be seen how cargo increases will be split between dedicated tonnage and spot vessels going forward. On top of that, there is little support from weather-related delays, congestion, labor unrest or other productivity issues that would hamper tonnage supply. There is a strike over pay of 8 workers at Shougang s iron ore mine in Peru, but it is unclear whether this will have an impact on the market. The loss of confidence in the market is also highlighted by further deterioration in FFA rates for the fourth quarter and for calendar years 219 and 22, both of which are now rated at less than $ 2,. The Atlantic turned out to be the more vulnerable of the two basins. Starting the month at around $ 37,8, the fronthaul route soon came down to around $ 34, and there have only been minor improvements since then. The C3 index rate from Tubarao to Beilung Baoshan range rallied a bit, but not enough to compensate for bunker price increases during the month. The transatlantic round voyage slipped from around $ 19, to mid $ 1, s in order to climb back up to mid $ 18, s as per end of October. Vessels in the Pacific fared somewhat better, with the North Pacific round voyage improving by more than 19 % to low $ 19, s while the C index rate from Western Australia to Beilung Baoshan range rose from high $ 7 to mid/upper $ 8. In the panamax segment, it was a more stable development throughout the month, except a small dip in spot earnings at the end of October. Trade disruptions and diversions of cargoes to new markets following the US-China trade war played a role in maintaining a relatively firm market. US grains found their way onto other markets while more product from the East Coast of Canada was heading to China. First and foremost, the East Coast of South America remained a major pillar of the panamax segment, absorbing a stable flow of vessels for long-haul grain trips into the Pacific. For coals ex. Australia and ex. India, it meant that shippers had to pay up to compete on tonnage. However, ECSA demand has now begun to slow down as Brazil and Argentina grains are essentially sold out. The US-Gulf was short of tonnage due to the fact that no more vessels from the Pacific were ballasting there. This left shippers with a lack of grain clean ships for other destinations in Europe, the Mediterranean or the Pacific. Further up North, rates got pushed higher as a result of good coal volumes from the Baltic region and from North America. In terms of rate trends, time charter averages gained strength on most routes during the first half of October before losing steam during the second half of the month. US grains seeking other destinations outside China have been very supportive so far, but we might have seen the highs already as the Pacific market started to correct. However, in case the US and China thrash out a new trade agreement, the market could rally once more on the back of fresh prompt cargo stems ex. US to the Far East. On a separate note, we understand that freight contract cover for key commodities for 219 is more limited than you would expect at this time of the year. This is because many owners so far avoid to commit on freight through next year because of uncertainty over bunker costs in the run-up to the. % sulphur cap from 22. For the geared bulker types, spot earnings went in opposed directions, with supramaxes suffering a circa 6. % decline on account of weakness in the Pacific while handysizes gained more than 6. % driven by rising demand and tight tonnage across the Atlantic, most of all in the US-Gulf. Current State of the Market - Supramax 3% 4% % 6% 4% % 6% 7% 3% 7% 2% 8% 2% 8% 1% 9% 1% 9% % 1% % 1% Big Picture Long Term - 1 years Small Picture Short Term - last year * The tachometer equates to the percentiles of the distribution. Example: Todays 12,368 USD for a Supramax vessel (8k) vessel represents the 78th highest value within the last year

21 Dry Bulk - Monthly Market Development Capesize Panamax Supramax Handysize Chartermarket Development Mom Bulker Timecharter Rates Route / Description MoM Change M Q Y Baltic Dry Index ,1% Capesize TC (18. dwt) ,6% Vessel class BDI BCITC BPITC BSI1TC BHSITC C8_14 18k Gibraltar/HH trans Atlantic RV ,7% Ref. Date C9_14 18k Continent/Med trip Far East ,2% C1_14 18k Nopac RV ,% Month on Month C14 18k China - Brazil RV ,2% (MoM) in [%] -2,1% 3,6% -8,2% -6,8% 6,3% C16 18k Revised Backhaul ,% C2 16lt Tubarao -Rotterdam 1,77 2,9 36,8% Quarter on Quarter C3 1mt Tubarao - Beilun/Baoshan 21,3,86 4,2% (QoQ) in [%] -11,4% -22,6% -,% 9,% 18,9% C 1mt W.Australia - Beilun/Baoshan 8,8,39 4,6% C4 1mt Richards Bay - Rotterdam 1,7 2,39 31,1% Year on Year C7 1mt Bolivar - Rotterdam 1,6,22 2,1% (YoY) in [%] -,8% -12,2% 3,4% 2,8% -2,8% Panamax 4TC ,2% P1A_3 74k Transatlantic RV ,% 2 Days P2A_3 74k Skaw-Gib trip Far East ,7% Momentu 6 Days P3A_3 74k Japan-SK/ Nopac RV ,1% 2 Days P4_3 74k Far East/Nopac trip SK-Pass ,3% Supramax 1TC ,8% S1C SW Pass - N.China/S.Japan ,8% 218 Okt S1B Canakkale - China Korea 23.36,% Sep S2 N.China - Transpac RV ,1% Aug S3 N.China-W.Africa ,% Jul S4A USG-Skaw/Pass ,% Jun S4B Skaw/Pass-USG ,9% S W.Africa-N.China ,3% 218 Q S8 S.China-EC India ,4% Q S9 W.Africa-Skaw/Pass ,8% Q S1 S.China-S.China ,2% S11 Full China Transpac ,% 217 Q Handysize 6TC ,3% Q HS1 SK-Pass trip Recalada/Rio de Janeiro ,3% Q HS2 SK-Pass trip Boston/Galveston ,6% Q HS3 (Recalada/Rio de Janeiro trip SK-Pass ,6% HS4 US Gulf or NCSA trip SK-Pass ,4% 216 Q HS SE Asia trip via Aus. to Singapore/Jpn ,7% Q HS6 S.Korea/Japan via Nopac to Singapore/ ,6% Long Term View - Panamax and smaller Panamax Supramax Handysize Short Term Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt. 18 Panamax Supramax Handysize Long Term View - Capesize Capesize 18. dwt Short Term Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt. 18 Capesize

22 Period Fixtures Date Vessel Charterer Built Size Delivery Remark Period Value Option Physical Premium Rate 12.Okt.18 Iron Fritz CNR Jiangyin mos.27 #WERT! BCI 13.Sep.18 Alpha Confidence COFCO Bayuquan 23-2 mos Aug.18 Keeper DHL Japan mos Aug.18 Aquamarine SWISS MARINE Qingdao mos Aug.18 Semirio PACIFIC BULK Yantai 1-12 mos Aug.18 Mothership DREYFUS China mos Jul.18 Han Fu Star BUNGE Tianjin mos Jul.18 Excel ANGLO CJK mos BCI -1,% 23.Jul.18 Navios Ray CNR Qingdao mos Jul.18 Kyla Fortune BUNGE Dangjin mos BCI -1% 11.Jul.18 Mineral Faith CLASSIC MARITIME China 12 mos Jul.18 Mineral Hope CLASSIC MARITIME China 12 mos Jun.18 Philadelphia KOCH retro Qingdao in d/c 23-2 mos Jun.18 Golden Savannah GLENCORE China mos BCI+19% 1.Jun.18 Mineral Edo CNR Kwangyang mos BCI+3,% 14.Jun.18 Mineral Utamaro WINNING Kawasaki CCL relet 24 mos Jun.18 ABML Grace OLDENDORFF Bayuquan 1-13 mos Okt.18 Electra UNIPER Jintang in d/c mos Okt.18 Tai Knowledge SOLEBAY S.China 12 mos Okt.18 Astarte GLENCORE Tianjin in d/c mos Okt.18 KM Shanghai COMERGE Qingdao mos Sep.18 Artemis AUSCA Taean in d/c 12-1 mos Sep.18 Ningbo Dolphin UNITED BULKCARRI Huelva 9-12 mos Sep.18 Ocean Lion STARBOARD Qingdao opt Sep.18 Ionic Patris CNR ex. Yard Japan mos #WERT! BPI +22%.Sep.18 Medusa CARGILL Chiba 13-1 mos Aug.18 KM Keelung CNR Jingtang mos Aug.18 Sasebo Ace NORDEN Cai Lan in d/c mos Aug.18 Star Jennifer COBELFRED Dalian 12 mos Aug.18 Ningbo Seal CNR Aughinish 12 mos Aug.18 Coronis CJ INTERNATIONAL retro Bayuquan 1st mos Aug.18 Nirefs HUDSON Ningbo in d/c mos Aug.18 Protefs HUDSON Shanghai in d/c 12-1 mos Jul.18 Taho Europe WW BULK Yeosu mos Jul.18 Nord Pollux SWISS MARINE CJK ex. DD mos Mrz.18 Spring Cosmos U MING Gresik 12 mos Jan.18 Transtime PGSC Singapore 12 mos Jan.18 CP Shanghai PHAETHON Taiwan in d/c 1-12 mos Nov.17 Amber Champion AUSCA Singapore Japan 8-11 mos Nov.17 Kastro ISLAND VIEW CJK 12 mos BSI 13.Apr.17 Interlink Parity CNR Guangzhou mos Nov.1 Xing Rong Hai CLIPPER Jiangyen for one year mos Mai.1 Genco Mare PIONEER NAVIGATION Far East 1,-13, m 471 BHSI +3,% 17.Sep.14 Seastar Empresps DREYFUS S China 12 mos Feb.14 Unity AMEROPA Durban Opt 9-12 at 12,k 9-12 mos *Fixtures in grey are older than 3 days Handysize Supramax Panamax Capesize 3. Capesize Period Fixtures 2. Panamax Period Fixtures Jan. 17 Apr. 17 Jul. 17 Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt. 18 Jan. 19 BCI Spot Market Synthetic FFA 12 mos Mid TC 1-14 mos Long TC 1-28 mos Finance TC 29-6 mos. Jan. 17 Apr. 17 Jul. 17 Okt. 17 Jan. 18 Apr. 18 Jul. 18 Okt. 18 Jan. 19 BPI Spot Market Synthetic FFA 12 mos Mid TC 1-14 mos Long TC 1-28 mos Finance TC 29-6 mos * Fixtures on the zero line represents index fixtures

23 Dry Bulk FFA-Market Dry-Bulk FFA Development Capesize (TC) Panamax Supramax (1TC) Handysize Period MoM Change MoM Change MoM Change MoM Change Spot ,6% ,2% ,8% ,3% Oct (18) ,% ,3% ,% ,4% Nov (18) ,2% ,1% ,6% ,2% Dec (18) ,7% ,1% ,% ,7% Q4 (18) ,% ,4% ,% ,% Q1 (19) ,1% ,3% ,% ,7% Q2 (19) ,3% ,1% ,3% ,1% Q3 (19) ,7% ,6% ,% ,2% Cal (19) ,7% ,2% ,4% ,3% Cal (2) ,1% ,9% ,% ,6% Cal (21) ,3% ,7% ,7% ,3% Cal (22) ,8% ,2% ,3% ,2% Cal (23) ,4% ,4% ,1% ,3% Periodrates Basis FFA 6 Months ,% ,4% ,% ,6% 1 year ,3% ,6% ,3% ,4% 3 years ,% ,1% ,1% ,1% years ,3% ,% ,4% ,% FFA Liquidity in Lots Mai 18 Juni 18 Juli 18 August 18 September 18 Oktober 18 Cape Pmx Supra Handy 22. Cape TC 1. Pmx 1. Smx 1TC Apr. 18 Jul. 18 Okt. 18 Front Quarter Front Year * Front Quarter in this edition Q Apr. 18 Jul. 18 Okt. 18 Front Quarter Front Year 7. Apr. 18 Jul. 18 Okt. 18 Front Quarter Front Year 3. Monthly Timecharter Development on FFAs Spot Oct (18) Nov (18) Dec (18) Q4 (18) Q1 (19) Q2 (19) Q3 (19) Cal (19) Cal (2) Cal (21) Cal (22) Cal (23) Cape TC Start Pmx TC Start Smx TC Start Handy TC Start Cape TC End Pmx TC End Smx TC End Handy TC End

24 Dry Bulk Asset Prices - Big Picture Newbuilding & 2 nd Hand Market Comment: October saw a boost of S&P activity. It was the kind of surge that we had originally anticipated for September which turned out to be an exceptionally quiet month. It is hard to come up with good explanations. Given the lack of direction in the freight markets, you would also expect an uninspiring, dithering second-hand market. However, it appears that everyone is concerned about possibly missing the next trend, hence we saw some decent activity both in S&P and in newbuilding contracting. On the newbuilding side, energy trader RWE stepped up to the plate together with Shandong Shipping as tonnage partner. Against 1-year period charter coverage from RWE, Shandong went to SWS and Beihai to order 9 firm vessels plus options, all for delivery in 22. SWS will build + 18, dwt units at a price of $ 3.6 mill. each and Qingdao Beihai has been commissioned for 4 x 18, dwt at the same price level. Meanwhile H-Line of Korea is in discussions to order one of the most expensive classic capesize types ever, designed for LNG operation and with a long-term time charter to Korean steel producer Posco. The project is for 2 x 18, dwt vessels for delivery in 221 from Hyundai Samho at $ 64 mill.. Furthermore, there was plenty of activity for ultramax types with close to 19 orders from different players. Within the resale market for capesize vessels, the True Valor and True Virtue gained a lot of attention not least because of the involvement of JP Morgan Global Asset Fund. It opted out on what seems to be a very profitable asset play, selling two units to Arcelor Mittal at a very firm price of $ 49.2 mill. per vessel. We understand, these units were originally contracted by JP back in June 217 for $ 44. mill. once again asset play at its best! Other transactions in the cape segment were focused on 8-1 year old vessels at prices around $ 3 mill.. By and large, market prices were stable. Moving on to the panamax class, it was also Arcelor Mittal that set a new high benchmark on a modern unit, concluding the 217 Tsuneishi-built 81,788 dwt Rich Wave for around $ 3 mill.. As far as medium-old tonnage is concerned, Minsheng Financial picked two units: the 21 Sanoyas-built 83,61 dwt Global Star at $ 19.1 mill. and the 21 Universal-built 81,487 dwt Sky Jade at $ 18. mill.. For kamsarmax tonnage, such a price is ok as it is a repeat of the strong prices that Star Bulk paid back in May in a share deal. Now, it seems that for the first time this very firm level was paid in an outright transaction on Japanese tonnage. In the ultramax and supramax segments, most of the action concentrated on 7-1 year old Chinese-built units. In view of the lack of transactions on Japanese and Korean tonnage in this segment, it is hard to ascertain the price discount for Chinese tonnage as the relationship so far this year in this age cluster is practically 1 to 1. Overall, it feels that the market has slightly softened since buying interest from China (related to changes in flag regulations ) disappeared. Presently, there are still more than 3 sales candidates in the ultramax and supramax classes. How will the market evolve during the near term? We would not be surprised if it will took a breather until around February seeing that the earlier bullishness on freight and vessel earnings has died away. Further, capital costs are steeply increasing, both on the underlying yield but also on the interest margin side. After February, low newbuilding deliveries combined with modest growth expectations should enable speculative money to push the market to a higher level. Panamax Prices Handysize Prices Newbuilding 2nd Hand - Y Newbuilding 2nd Hand - Y

25 Dry Bulk Fleet and Orderbook - Big Picture in Mio. USD Newbuil. Resale Years 1 Years 1 Years 2 Years Scrap Capesize Dry Bulk Price Matrix - in Mio USD Size Okt MoM QoQ YoY Size Okt MoM QoQ YoY Size Okt MoM QoQ YoY Size MoM 29, 29, 22, 16, 1, 7,,3 Panamax 27, 27, 19, 13, 9, 6, 4,4 Supramax 18, , , , , 1, , , -1, , , 48-1, , 1, 69 1, 4 1, lt 1,,2,2 1,2 12lt,1,2,6 1lt,1,2, 8lt * Newbuilding prices: ex Yard with normal specification, without equity costs and without supervision. Resale depending on yard Okt 22, 22, 16, 11, 7,, 3, Handysize,1 QoQ ,1 YoY ,3 2 2,4 Fleet & Orderbook Size in dwt Fleet Orderbook in dwt in [%] Cape 318, ,4 11,9% PPmx 43, ,1 2,6% Pmx 18, ,7 1,% Smx 164, , 7,1% Handy 118, ,8 4,% Total 837, ,9 6,9% Capacity Size Cape PPmx Pmx Smx Handy Total Orderbook in % of the Fleet Bulk Orderbook 12% 1% 8% 6% 4% 2% % Capesize Panamax Supramax Handysize Total Fleet Total Fleet in mill dwt Age Orderbook Current Fleet Size in [%] % % 2% % % % % 4% % % % % 18% % % % 21% % % % % % % % % % % % % 2% % % % % % % % % % % % *everthing smaller than units per year is not displayed. Orderbook before slippage

26 Cape & Panamax - Newbuilding & 2 nd Hand Capesize - Transactions Panamax - Transactions 2x NB 186K ex. SWS dely Cal 2 for Santoku Shipping - $46, 4x NB 82K ex. Chengxi dely Cal 2 for BoComm Leasing - $26, + NB 18K ex. SWS dely Cal 2 for Shandong Shipping - $3,6 2x NB 82K ex. Nacks dely Cal 19/2 for Santoku Senpaku - $28, 4x NB 18K ex. Qingdao Beihai dely Cal 2 for Shandong Shipping - $3,6 Scotian Express 93K, 211, Dacks for Interocean $16,7 2x NB 18K ex. Hyundai Samho dely Cal 21 for H-Line - $64, Ikan Kedewas 88K, 26, Imabari for Minoa Marine - Greece $12, 1x Resale 26k Sept 19 26K, 219, Yangfan for Bocimar $2, Global Star 84K, 21, Sanoyas for Mincheng Financial $19,1 1x Resale 26k Jan 2 26K, 22, Yangfan for Bocimar $2, Rich Wave 82K, 217, Tsuneishi for Archelor Mittal $3, True Valor 18K, 219, SWS for Archelor Mittal $49,3 Sky Jade 81K, 21, Universal for Minsheng Financial $18, True Virtue 18K, 219, SWS for Archelor Mittal $49,3 Daebo Newcastle 81K, 211, Hyundai for Mega Shipping $18,6 Bulk Asia 182K, 214, Imabari for Eastern Pacific $4,4 Jag Arya 8K, 211, SPP for Trade Fortune - Greece $18,8 New Dalian 18K, 21, Dalian for Lavinia - Greece $27, Energy Midas 78K, 1998, Mitsui for China $6,9 Cape Zenith 18K, 21, Imabari for Lavinia - Greece $29,8 Yongji 78K, 2, Mitsui for China $8,8 CPO Oceania 179K, 21, Daewoo for Seanergy Maritime - Greece $28,7 Double Prosperity 77K, 2, Imabari for Shail Shipping - Qatar $1,8 Pacific Explorer 177K, 27, Mitsui $21, AOM Milena 77K, 29, Shin Kasado for Mincheng Financial $16, Ocean Clarion 177K, 29, Namura $29, Hai Jing 76K, 21, Kanasashi for China $7,6 Guiseppe Bottiglieri 17K, 211, New Times for Sinokor $26, Janna S 7K, 21, Penglai for Greek $11,8 Lowlands Longevity 173K, 21, Daeboo for Five Oceans $11,9 Sumihou 7K, 211, Sasebo for China $17, SC Lotta 169K, 29, Sungdong for Marmaras $2, Eisho 7K, 212, Sasebo for Pavimar - Greece $18,7 Star of Nippon 7K, 24, Sanoyas for Eurobulk $9,8 Capitola 7K, 21, Hudong for China Angelic Grace 7K, 21, Hudong for Stan Shipping - Greece $, Transactions - last months Transactions - last months 3 2 Purchase price in Mio. USD Purchase price in Mio. USD Age in years Age in years * dotted line: transactions last month Capesize Panamax Purchase price in Mio. USD Purchase price in Mio. USD Jan. 12 Jan. 13 Jan. 14 Jan. 1 Jan. 16 Jan. 17 Jan. 18 Jan. 19 NB Resale Years 1 years 1 years 2 years Jan. 12 Jan. 13 Jan. 14 Jan. 1 Jan. 16 Jan. 17 Jan. 18 Jan. 19 NB Resale Years 1 years 1 years 2 years

27 Supramax & Handysize - Newbuilding & 2 nd Hand Supramax - Transactions Handysize - Transactions 1x NB 64K ex. Mitsui dely Cal 2 for Biko Kisen - 1x NB 39K ex. Taizhou Kouan dely Cal 2 for Vogemann NB 64K ex. Yangzhou Dayang dely Cal 2 for Rongtua Shipping - 2x NB 34K ex. Hakodate dely Nov 19 / Jan 2 for Itochu Corp. - Japan NB 64K ex. Wuhu dely Cal 2 for Glory Maritime International Holdings - $24, Cielo Di Jari 4K, 216, Yangfan for Rederi Gotland $2, 2x NB 64K ex. Nantong Xiangyu dely Cal 2 for Doun Kisen - $2, Cielo Di Tocopilla 39K, 214, Yangfan for Rederi Gotland $2, 4x NB 63K ex. Dayang dely Cal 19/2 for Avic Leasing - Ocean Wealth 38K, 212, Imabari for Orient Shipping $1, 2x NB 62K ex. Oshima dely Cal 2 for Norden - Sea Bronze 37K, 27, Saiki for Hai Phong Traco $11, 2x NB 62K ex. DACKS dely Cal 2 for Wisdom Marine - $3, Skelt 3K, 21, SPP for Tufton Oceanic $12,9 1x NB 61K ex. Dayang dely Cal 2 for Taizhou Yongan Shipping - Splendeur 33K, 28, Shin Kochi $11, 2x NB 61K ex. Nacks dely Cal 19 for Santoku Senpaku - IVS Kanda 33K, 24, Kanda $8,7 Ocean Pankaj 64K, 218, Cosco Zhoushan for Greek $24, Greenfinch 32K, 21, Kanda for Middle East $11,8 Serena R 64K, 216, Yangfan for Greek $29, La Louise 32K, 1998, Hakodate $,9 Dragongate 64K, 216, Imabari for Atlantic Bulk Carriers $26,8 Golden Kiku 3K, 2, Shikoku for Far East $7, Sage Baylorcom 64K, 21, Yangzhou Dayang for JME Navigation $23, IVS Shikra 3K, 28, Shikoku for Greek $8,6 Golden Cecile 6K, 216, JMU $26, Sider Boston 29K, 211, Nantong Nikka for Trian - Greece $1, Golden Catherine 6K, 216, JMU $26, Baltic Spire 29K, 1997, Imabari $,1 Medi Firenze 9K, 28, Tsuneishi Cebu for Salam Pacific $13,1 Voula Seas 28K, 22, Kanda $6, Queen Halo 8K, 21, Tsuneishi Cebu for Dilligent $1,1 Gloria Hayne 28K, 1996, Imabari for China $4,2 Guardianship 7K, 211, Jinling for BoComm $12, Star Life 28K, 211, Shimanami $11,3 Gladiatorship 7K, 21, Jinling for BoComm $11, Le Tai 22K, 1999, Dalian $4, Shropshire 7K, 29, Yangzhou Guoyu for Louis Dreyfus $9,3 Le Sheng 22K, 1998, Dalian $4, Transactions - last months Transactions - last months Purchase price in Mio. USD Purchase price in Mio. USD Age in years Age in years Supramax Handysize Purchase price in Mio. USD Purchase price in Mio. USD Jan. 12 Jan. 13 Jan. 14 Jan. 1 Jan. 16 Jan. 17 Jan. 18 Jan. 19 NB Resale Years 1 years 1 years 2 years Jan. 12 Jan. 13 Jan. 14 Jan. 1 Jan. 16 Jan. 17 Jan. 18 Jan. 19 NB Resale Years 1 years 1 years 2 years

28 NEW Hamburg Index 218 & Fixing Activity Hax NEW HAX 218 Hom 14t Size from Hom 14t Size to TEU 6.6 TEU 8 TEU Nominal Intake Sub-Pmx Baby-Pmx Maxi-Pmx WB-Pmx 4bm 4bm 42-44bm Sep 18 9,7 4,21 9,68 4,73 8,83 6,1 7,4,2 6,78 8,36,38 3,8,44 3,7,,64 4,3,8 3,9 3, 4,21 ### 2,3, 2,11 3, 2,1 7,79 Aug 18 9,98 4,14 1,2 7,31 8,41 4, 7,62 6,7 6,29 7,24,3 4,,26 3, 4,89 6,1 4,41,18 3,6 4,92 4,26 4,1 3,4 7,49 2,9 3, 2,31 3,3 Jul 18 1,8 9,33 9,8 4, 9,16,83 8,19 4,2 6,31 4,91 6,1,13,61,,8 4,62 4,47 4,32 3,9,4 4,9 7,1 3,7 3,9 3,6 3,3 2,34 3,69 Jun 18 11,46 4,4 1,6 6,14 9,2 6,42 8,33 6, 7,6 7,7,74 ###,8,26,31 6,21 4,76 8,14 4,41,7 4,72 7,9 4,21 7, 3,83 7, 3,1 3, Mai 18 11,77 4,1 1,7 7,97 9,1 4,1 8,44 4,66 6, 8,2,31 6,,8,62,6,88 4,49 7,8 3,81 6,13 4,49,63 4,7 1,24 3,81 8,18 3,7 ### Apr 18 12,2 8,7 11,1 4,86 9,3,8 8,66,6 6,2 6,42,8,67,41 6,2 4,6 7,81 3,89,79 3,27,2 4,29 6,9 3,97 4,2 3,38 3, 3,3 ### 218 YTD 11,2,73 1,21,8 8,79,12 7,96,63 6,18 6,91,1,38,21 4,97 4,64,92 4,,84 3, 4,46 4,1,77 3,2 9,3 3,13 4,8 2,6 7, 217 9,1 3,18 8,3 4,6 6,38 4,38,86 4,23 4,7,67 4, 4,37 3,3 4,69 2,6 3,2 2,43 4,9 3,12 6, ,27 2,88 8,42,24,79 3,48,1 4,27 3,64,17 2,92 3,88 2,36 3,98 1,81 3,42 1,61 2,94 1,97 4,1 21 1,6 2,76 9,8, 7,87,7 7,,8,1 6, 4,9,17 4,2,33 4,3 4,83 3,8,83 4,64 9,42 (*) 1 Y avg. 9,12,78 8,37,82 6,3,,9,73 4,63 7,29 4,7 6,4 3,,2 3,79 7,93 2,77 4,78 3,68 7,83 * 1 year average without inflation adjustment Geared NEW Hamburg Index 218!!! Gearless II III IV V VI VII VIII IX Fixing Activity Class/Month 1.+ TEU 8.8 TEU 6.6 TEU. TEU.1 TEU 4.2 TEU 3. TEU 2.7 TEU 2. TEU 1.7 TEU 1.1 TEU 9 TEU 7 TEU Total Sep Okt Nov 17 Dez 17 Jan 18 Feb 18 Mrz 18 Apr Mai 18 Jun 18 Jul 18 Aug 18 Sep 18 Okt Fixing Activity TEU 3 2 No. of Fixtures within 3 days Explanatory Note: 1 st Jan 214 = 87 Fixtures 87 Fixtures occured during the period of 1 st December 213 up to 1 st Jan 214 Jan. 14 Jul. 14 Jan. 1 Jul. 1 Jan. 16 Jul. 16 Jan. 17 Jul. 17 Jan. 18 Jul

29 LTAV Evaluation Technical Part - Discount Factor Beta 1.1 TEU Vola ρ MSCI Beta month year month year month year 2% 36% 17% 44%,24 1,1 1.7 TEU 22% 43% 16% 41%,2 1,67 2. TEU 28% 2% 1% %,3 2, TEU 29% % 2% 3%,4 2,77 3. TEU 33% 62% 1% %,22 3,24 Risk Premium in % p.a 1% % % -% Empirical Risk Premium 4.2 TEU 43% 66% 9% 6%,28 3,7-1% Beta for the Container Sector 2, * Volatility, correlation and beta is based on a rolling 1 year avg. Conclusion: The Risk premium is most of the time negative (!!!) * Monthly & yearly volatility of MSCI World Index 14% & 11% => Free choice of risk premium, but not too high. In our model 1,7% Risk Free Interest Rates in Percent Empirical Risk Premium & Discount Factor Period MoM QoQ YoY Period Inflation MSCI REXP Risk Premium Discont Factor 1 Y 2,7%,1%,3% 1,29% 1 Y 2,7% 11,6% -,1% 11,7% 7,2% 2 Y 2,9%,1%,31% 1,31% 2 Y 2,3% 1,3% 7,9% 2,4% 7,4% 3 Y 2,97%,9%,3% 1,22% 3 Y 1,9% 9,9%,6% 9,4% 7,% Y 3,%,1%,28% 1,2% Y 1,% 1,1% 1,7% 8,% 7,% 1 Y 3,2%,14%,3%,79% 1 Y 1,4% 8,6% 3,%,% 7,7% 1 Y 3,29%,16%,33%,68% 1 Y 2,1%,7% 3,6% 2,2% 7,8% 2 Y 3,34%,17%,3%,8% 2 Y 2,2% 4,% 3,9%,1% 7,8% 2 Y 3,38%,18%,36%,4% 2 Y 2,2%,4% 4,8%,6% 7,9% 3 Y 3,4%,19%,37%,32% 3 Y 2,%,%,3% -,2% 7,9% * Interest Rates are zero-coupon yields from the Federal Reserve. Historical Period * Inflation is based on the US consumer price index. MSCI represent the MSCI World Total Return Index and REXP represent the German Government Bond Index Parameters Practical Part - LTAV Evaluation Timecharter Rates Costs Operating 1 st year 2 nd year Ø1Y Ø1Y AE OPEX DD SS days 1.1 TEU TEU TEU Light weight TEU TEU TEU LTAV Evaluations Age Max. 61% 64% 69% 72% 76% 7% 73% 77% 76% 82% 8% 76% 82% 79% 88% 7% 11 TEU Avg. 8,8 8,1 7,4 6,8 6,4 6,2,9,,2 4,8 4,6 4,4 4, 3,8 3,3 3,2 Min. -42% -44% -46% -4% -46% -1% -39% -4% -37% -37% -49% -29% -29% -2% -2% -3% Max. 66% 69% 72% 7% 78% 77% 77% 8% 79% 83% 81% 79% 82% 81% 86% 7% 17 TEU Avg. 12,7 11,8 1,9 1,1 9, 9,2 8,7 8,1 7,7 7,1 6,8 6,4,8,4 4,8 4,6 Min. -4% -46% -47% -46% -46% -48% -4% -4% -37% -37% -43% -3% -29% -26% -2% -4% Max. 6% 68% 72% 74% 77% 77% 74% 77% 77% 8% 79% 73% 76% 74% 78% 69% 2 TEU Avg. 13,6 12,7 11,8 11, 1,3 1, 9,7 9,1 8,6 8, 7,7 7, 6,9 6,,9,7 Min. -4% -46% -47% -46% -46% -2% -39% -39% -36% -36% -49% -28% -27% -24% -23% -49% Max. 7% 6% 63% 64% 67% 66% 64% 66% 6% 68% 67% 62% 64% 63% 66% 8% 27 TEU Avg. 14,6 13,7 12,8 11,9 11,3 1,9 1,6 9,9 9, 8,8 8, 8,3 7,6 7,2 6,6 6,4 Min. -4% -4% -41% -4% -4% -4% -34% -34% -31% -31% -42% -23% -23% -2% -19% -43% Max. 18% 114% 122% 129% 136% 141% 138% 146% 148% 18% 163% 11% 18% 17% 167% 17% 3 TEU Avg. 14, 12,9 11,8 1,8 9,9 9,3 8,9 8,2 7,6 6,9 6,4 6,2,,1 4, 4,2 Min. -76% -77% -8% -8% -81% -91% -73% -73% -7% -7% -91% -7% -6% -% -48% -94% Max. 71% 74% 77% 79% 82% 84% 81% 83% 83% 86% 89% 82% 84% 83% 86% 83% 42 TEU Avg. 2,1 18,9 17,7 16, 1, 14,7 14,2 13,3 12,6 11,6 1,8 1, 9,6 9, 8,1 7,4 Min. -49% -49% -% -49% -48% -% -42% -42% -39% -39% -3% -31% -3% -27% -2% -6%

30 Macroeconomic Data Macroeconomic Data Gross domestic product Balance of Payments Rate of unemployment Inflation S&P Population Absolut Increase nominell Increase real per head (in ppp) Exports Country / Region in Mio. in bill. $ in % USD in bill. USD in % in % in % - Last input 218 Q2 218 (annulised) Q2 218 (quarterly data) Aug 18 Sep 18 Nov 18 EU ,2% 1,% % 6,% -,8% 14,6% 2,2%,4% Germany - 27,9% ,2% 2,% % 3,4% -,4% 6,8% 2,2%,4% AAA France - 21,4% ,2% -,3% % 9,4% -,2% 2,7% 2,% 1,4% AA Italy - 16,% ,8% 1,3% % 8,3% -1,9% 26,9% 1,%,2% BBB Spain - 11,1% ,3% 1,% % 14,8% -1,6% 31,2% 2,3%,4% A- Netherlands - 6,3% ,8% 3,2% % 3,% -,8% 6,8% 1,6%,2% AAA Belgium - 4,% ,7% -,1% % 6,8% -,6% 18,% 2,8%,9% AA Austria - 3,3% ,2% 2,1% % 4,8% -,6% 8,% 2,1% -,% AA+ Finland - 2,% ,1% 2,7% % 6,8% -,7% 13,6% 1,4%,6% AA+ Greece - 2,% ,% 1,3% % 18,4% -2,3% 37,% 1,1%,1% B+ Portugal - 1,7% ,8% 1,% % 6,7% -1,9% 19,2% 1,8%,2% BBB- Ireland - 1,7% 3 11,% 9,7% % 6,% -1,% 1,% 1,3% 1,1% A+ Slovakia -,8% 1 6,8% 4,1% % 6,6% -1,3% 13,9% 2,7% 1,% A+ Luxembourg -,% ,4% 3,7% %,% -,3% 11,2% 2,7%,7% AAA Slovenia -,4% 2 4 6,% 4,3% %,1% -1,3% 8,1% 2,2%,8% A+ Cyprus -,2% 1 24,9% 4,2% % 7,1% -3,1% 17,9% 1,6% 1,% BBB- - Estonia -,2% 1 3 8,% 4,% %,1% -,1% 12,8% 3,% -,4% AA- Malta -,1%, 14 8,6% 6,1% % 3,7% -,9% 8,8% 2,% 1,3% A- United Kingdom ,1% -1,6% % 4,2% -,2% 11,9% 2,6% -,2% AA Poland ,4% 3,% % 3,4% -1,3% 1,% 1,4% -,3% A + China ,% 6,3% 18.12,7% % 3,9% -,2% 2,2% -3,2% A+ Japan ,2% 1,% 44. 3,6% 238% 2,% -,3% 4,% 1,2% 1,% A+ India ,6%,9% ,% 7% 4,7% -4,8% BBB- Indonesia ,4% 4,% ,4% 3%,4% -1,2% 3,4% -1,9% BBB- The Philippines ,% 4,1% ,% 4%,7% -1,3% 4,9%,2% BBB Pakistan 21,6% 1,7%.714 -,9% 73% 6,%,1% 3,9% -9,7% B Brazil ,1%,4% ,3% 88% 12,8%,% 3,7% -3,% BB- Russia ,9% 4,1% ,2% 1%,2% -1,3% 2,8% -,6% BBB Turkey ,2% -8,3% ,7% 32% 9,6% -1,% 16,9% 24,% 13,4% BB- Nigeria ,4% -3,% 6.3 2,% 2% 13,4% 7,4% 12,4% 1,6% B Ethiopia ,8% 4,1% ,2% 9% 12,7% B Mexico ,6% 1,9% ,3% 4% 3,4% -1,8% 4,8% 1,4% A- USA ,6% 1,7% ,% 16% 3,9% -,6% 8,2% 2,8%,9% AA+ *Data from World Economic Outlook October 218 for the Year 218 Imports Net Total Deficit Debt to GDP Ratio All YoY Change Youth Consumer prices YoY Change Country-Ratings Growth Rates and Size of the World Economy >7% % - 7% 3% - % 2% - 3% 1% - 2% % - 1% < %