WEEKLY SHIPPING MARKET REPORT WEEK 7 WEEK 7 (13 th February to 19 th February 2016) Market Overview Bulkers Chinese New Year celebrations ended affecting the BDI with just a small increase. It would be interesting to observe the movements of prospective buyers/sellers, as we are close to the beginning of grain season as well. This week we are reporting the sale of M/V Golden Hope (177k dwt/2009blt Namura) at $19.3 mill to Greek buyers. In November 2015 same aged vessel bit bigger M/V Aurora Venus (180k dwt/2009blt Koyo) was reported sold for $26.5 mill. As well, there are several bank driven deals and auctions in the market nowadays, many prospective buyers are taking part in such deals, out of which sometimes good opportunities (pricewise) may occur. Some say that prices of secondhand tonnage are at low levels but have not reached yet the hard bottom... Tankers In the wet sector market is following a different direction than the dry market. Daily rates are well more above the OPEXs and could say there is a good mood in general. Thus potential sellers are asking firm prices and most of them are just fishing numbers. Many are mentioning that this will not continue for long and wet will follow the trend as the dry, remains to be seen and hope such a scenario not to become true. Various rumors in the market this week, but most of them are not materialized yet, like the sale of VLCC Hanjin Ras Tanura (317k dwt/2011 blt HHI) to clients of Maran Tankers, the aframax Isis (116k dwt/2007blt Universal) and aframax Trident Star (105k dwt/2005blt Namura). On the MRs we are reporting the sale of Amalienborg (40k dwt/2004blt Shina) at region high $15 mill and the methanol carrier Maracas Bay (31k dwt/98blt Minami-Nippon) for region low $7 mill to Indonesian buyers. Demolition More and more shipowners with older vessels in their hands are choosing the option of demolition to subcontinent. This week a wide number of capesizes, panamaxs and other dry vessels are being under negotiations. The total amount of dry cargo vessels that have been send for demolition since beginning of the year, reaches about up to 7,5-8 million of DWT. Prices now are in the region of $220-$230 per ldt for India and Pakistan, Bangladesh is not buying aggressively at the moment paying region $210-$220. Advanced Shipping & Trading S.A 1 st Floor, 168 Vouliagmenis Avenue 16674 Glyfada, Greece Contact Details: Tel: +30 210 3003000 snp@advanced-ship.gr chartering@advanced-ship.gr finance@advanced-ship.gr
Second Hand Sales Bulk Carriers Name Dwt YoB Yard SS Engine Gear Price (mill.) Buyer Golden Hope 176,900 2009 Namura,Japan 02/2019 B&W - $ 19.3 Michael S 50,170 2001 Mitsui, Japan 05/2016 B&W 4 x 30 T Ocean Kite 37,187 2012 Long Fortune 36,000 2016 Hyundai Mipo, Korea Shandong, China $ 2.5 (Via Bank) Chinese (Winning) Greeks 02/2017 B&W 4 x 30 T $ 8.5 Vietnamese - Mitsubishi 4 x 30 T $ 6.75 (Auction 80 % Complete) Undisclosed Tankers Name Dwt YoB Yard SS Engine Price (mill.) Buyer Amalienborg 40,059 2004 Shina, Korea Maracas Bay 30,957 1998 LGC Cambridge 26,247 2006 Minami, Japan Hyundai Heavy, Korea 03/20 19 05/20 18 02/20 16 B&W High $15.0 Undisclosed Mitsubishi $ 7.7 (Methanol Carrier) Indonesian B&W $ 41.5 Indian Containers Name Dwt YoB Yard SS Engine Price (mill.) Buyer Marco R 5,468 2000 Kvaemer, Germany 02/2015 Sulzer $ 13.0 Greek Advanced Shipping & Trading S.A Research 19/02/2016 2
Indicative Values - Bulk Carriers Size Prompt Resale 5 years 10 years 15 years Capesize 35 21 11.5 5.5 Panamax - Kamsarmax 22.5 12.5 6.5 3.5 Supramax - Ultramax 18 11 6.5 3.5 Handysize 15 9 5 3.5 Indicative Values - Tankers Size Prompt Resale 5 years 10 years 15 years VLCC 97 77 55 38 Suezmax 69 59 41 26 Aframax 55 41 27 16 Panamax 45 33 23 14 MR 37 27 19 11 Advanced Shipping & Trading S.A Research 19/02/2016 3
Demolition & Newbuilding Demolition Sales Vessel Type Built Ldt Dwt Price ($) Country Comments Faridah Tanker 1995 40,411 301.862 245 Pakistan Cape Carmel BC 1996 22,586 179.869 243 Pakistan Champel BC 1998 21,818 168.968 241 Bangladesh Cape Jupiter BC 1997 21,297 172.480 232 As Is Singapore with dely India, incl. 850Tns ROB Mona Linden BC 2000 20,221 170.473 225 India Green Recycle Hanjin Malta Container 1993 18,954 62.650 265 India Mary BC 1993 18,194 149.477 243 Pakistan Star Eagle BC 1981 10,385 33.504 225 India Long Yuan BC 1989 9,980 69.346 245 India Los Llanitos BC 1993 9,977 71.665 Total Loss Sold As Is AartiPrem BC 1994 9,762 69.087 231 India Great Loyalty BC 1999 9,731 73.659 190 China Eirini K BC 1996 8,400 41.712 242 India K No. 9 GC 1981 5,195 16.830 225 India K No. 8 GC 1981 4,256 14.037 225 India Orca K BC 1975 3,315 11.594 238 India Indicative Demolition Prices Country Tanker Prices Bulker Prices India 250 240 Bangladesh 255 240 Pakistan 255 240 China 135 115 Turkey 150 145 Newbuilding Orders - Tankers No Type Dwt Yard Delivery Owner 1 Vlcc 311,00 0 JMU, Japan 2018 Japanese (Kyoei Tanker) Price (mill.) $ 90.5 Comments Advanced Shipping & Trading S.A Research 19/02/2016 4
Dry Bulk Chartering Transpacific iron ore trade appears to continue offering the only chances of employment for Capesize vessels at the closing of week 7, with170,000 10% parcels being fixed in the usd 3.00 pmtfio range, give or take a few cents. Alternatively, same route is being fixed in the very low usd2000 s range on trip basis.week 7 also saw London-based miner Anglo American in the spotlight, as the group posted a usd 5.6 billion loss for 2015 and revealed its plans for a complete exit from the coal and a gradual exit from the iron ore sectors. At the same time, Rio de Janeiro-based miner Vale announced the closing of 2015 with a total production of 345.9 million tons, a 4.3% rise in its figures from the previous year. Its financial results are to follow on 25th February, 2016.South African iron ore parcels for Capesizes are being reported fixed at usd 4.35 pmtfio. The government of India continues to encourage the country s big steelmaking groups to start considering the conversion of locally mined medium quality coal into premium coking coal in order to save on an annual usd4 billion worth of imports from countries such as Australia and South Africa.In spite of that, Panamax/Ultramaxand Supramaxcoal activity in the south Pacific is still alive, with parcels being generally fixed from Australia and Indonesia into India in the mid/upper usd2,000 s/3,000 s range, subject to delivery point and destination. Indonesian coal to South East Asian countries like Thailand is being fixed in the upper usd2,000 s. The government of Indonesia has announced the lift of its ban on partially processed mineral exports in 2017 (including nickel ore and bauxite). Are we to experience the revival of trade routes not seen since late 2013?Hardly any Handysize Pacific activity to showcase here, apart from a couple of China/South East Asia runs at usd 3,000. Quite a few short/medium period fixtures with Far East delivery have surfaced, mostly in the Panamax segment, with employments being generally fixed in the usd mid 4,000 s range. Very high usd 4,000 s marked a 2 years period on a Red Sea Panamax. A Capesize was reported being fixed for one year in the upper 6,000 s.grain season in the south American exporting countries continues to produce the only bright numbers in the market. Kamsarmaxes are generally being fixed for East Coast South America /Far East trips on APS basis at mid/upper usd 6,000 s plus a ballast bonus in the usd 140/175,000 range or upper usd 6,000 s basis Gibraltar delivery or upper usd 4,000 s basis Singapore delivery. For the same route, Panamax fixtures are being reported at mid usd 6,000 s plus a usd 150,000 ballast bonus basis APS or upper usd 4,000 s basis East Coast India or low usd 5,000 s basis West Coast India. Ultramaxes are being reported at usd upper 7,000 s plus a usd 70,000 ballast bonus whereas Supramaxes East Coast South America /Far East fixtures are generally being concluded at usd 6,000 plus a usd 60,000 ballast bonus. East Coast South America /Mediterranean destination. The government of Pakistan has been reported to be considering exports of surplus wheat to Persian Gulf countries, in exchange of both cash and goods, like oil and fertilizers. The birth of a new trade route perhaps? Continental Supramaxes are being evaluated in the very low usd 4,000 s range for trips into the Mediterranean or for two or more laden legs while being fixed for West Africa destination at upper usd 3,000 s. West African Supramaxes are then being fixed at low usd 4,000 s for trips to Far East. Week 7 also saw demonstrations in Brussels from representatives of European-based steel industries against the European Union s intentions to grant market-economy status to China later this year.steel imports from China, which still ranks as the world s largest steel producer, into the European Union have more than doubled over the last two years whereas European Union produced steel prices have fallen roughly by 40% over the same period.not much chartering activity to report on the steel routes though, with few Supramax parcels being fixed in the upper usd 3,000 s for Far East / South East Asia runs. Continental and Black Sea Handies are being reported fixed in the low usd 5,000 s range for runs to China. Advanced Shipping & Trading S.A Research 19/02/2016 5
Baltic Indices (Friday Closing Values) Index Week 7 Week 6 Change (%) BDI 315 291 8.25 BCI 207 199 4.02 BPI 355 324 9.57 BSI 286 243 17.70 BHSI 198 183 8.20 Advanced Shipping & Trading S.A Research 19/02/2016 6
Key Indicators & Stock Markets Currency Week 7 Week 6 Change (%) EUR / USD 1.1091 1.1283 1.70 USD / JPY 112.97 112.47 0.44 USD / KRW 1,234.36 1,211.54 1.88 USD / NOK 8.6189 8.5770 0.49 Commodity Week 7 Week 6 Change (%) Brent Crude (BZ) 33.32 31.16 6.93 Natural Gas (NG) 1.83 2.00 8.50 Gold (GC) 1.227.80 1.242.90 1.21 Copper 206.40 202.40 1.98 Wheat (W) 468.75 459,50 2.01 Euro/Usd 1.16 1.14 1.12 1.1 1.08 1.06 1.04 1.02 30/08/2015 13/09/2015 27/09/2015 11/10/2015 25/10/2015 08/11/2015 22/11/2015 06/12/2015 20/12/2015 03/01/2016 17/01/2016 29/01/2016 12/02/2016 Weekly Brent Crude Price 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 17/07/2015 31/07/2015 14/08/2015 28/08/2015 11/09/2015 25/09/2015 09/10/2015 23/10/2015 06/11/2015 20/11/2015 04/12/2015 18/12/2015 01/01/2016 15/01/2016 29/01/2016 12/02/2016 Advanced Shipping & Trading S.A Research 19/02/2016 7
Bunker Prices Port IFO 380 IFO 180 MGO Piraeus 160 177 335 Fujairah 147 200 420 Singapore 160 173 313 Rotterdam 144 167 300 Houston 145 190 345 Shipping Stock Prices Dry Bulk Company Stock Exchange Week 7 Week 6 Change (%) Diana Shipping Inc (DSX) NASDAQ 2.25 2.02 11.39 DryshipsInc (DRYS) NASDAQ 0.109 0.101 7.92 Euroseas Ltd (ESEA) NASDAQ 2.09 2.19 4.57 Eagle Bulk Shipping Inc (EGLE) NASDAQ 0.71 0.42 69.05 Freeseas Inc (FREESE) NASDAQ 0.042 0.073 42.47 Navios Maritime (NM) NYSE 0.86 0.79 8.86 Navios Maritime PTN (NMM) NYSE 1.09 0.80 36.25 Paragon Shipping Inc (PRGN) NASDAQ 0.058 0.065 10.77 Star Bulk Carriers Corp (SBLK) NASDAQ 0.435 0.400 8.75 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 2.734 2.490 9.80 Safe Bulkers Inc (SB) NYSE 0.63 0.47 34.04 Golden Ocean (GOGL) NASDAQ 0.72 0.61 18.03 Shipping Stock Prices Wet Company Stock Exchange Week 7 Week 6 Change % Capital Product Partners LP (CPLP) NASDAQ 3.56 3.20 11.25 TOP Ships Inc (TOPS) NASDAQ 0.230 0.220 4.55 Tsakos Energy Navigation (TNP) NYSE 5.32 4.83 10.14 Advanced Shipping & Trading S.A Research 19/02/2016 8
Shipping Stock Prices Other Company Stock Exchange Week 7 Week 6 Change (%) Aegean Maritime Petrol (ANW) NYSE 6.88 6.38 7.84 Danaos Corporation (DAC) NYSE 4.69 4.65 0.86 StealthGasInc (GASS) NASDAQ 3.30 2.49 32.53 Rio Tinto (RIO) NYSE 27.16 24.59 10.45 Vale (VALE) NYSE 2.88 2.38 21.01 ADM Archer Daniels Midland (ADM) NYSE 33.90 31.63 7.18 BHP Billiton (BHP) NYSE 23.99 21.19 13.21 Legal Disclaimer The information contained herein has been obtained by various sources. Although every effort has been made to ensure that this information is accurate, complete and up-to-date, Advanced Shipping & Trading S.A. does not accept any responsibility whatsoever for any loss or damage occasioned or claimed, upon reliance on the information, opinions and analysis contained in this report. Research compiled by:advanced Shipping & Trading S.A. Market Research on behalf of the Sale & Purchase, Dry Cargo Chartering and Tanker Chartering Departments. For any questions, please contact: research@advanced-ship.gr Advanced Shipping & Trading S.A Research 19/02/2016 9