LY MARKET REPORT September 27th, 2013 / Week 39 During the last two days of the week the BCI made a u-turn eroding all of the gains made until Wednesday and ended the week 51 points in the red. The momentum of last week's market was enough to propel the BPI to a massive 24% increase ending the week at 1,800 point. Together with the 11% and 6.5% increases of the BSI and BHSI respectively they were enough to counterbalance the negative effect of the BCI and pushed the BDI to end the week nearly 7.5% higher and to close over 2,000 points. The recent increase in the market has culminated in a surge of secondhand and resale activity in the dry segment. We report the modern capesize CAPE CHALLENGER II (180,000 Dwt / Built 2013 Japan) sold to Greeks for US$ 51 mill. Two sets of kamsarmax resales have also been sold. 2 x 81,500 Dwt hulls from New Century in China (Hull nos: 0108206 & 0108207) for US$ 24.50 mill each to Golden Ocean and one 81,434 Dwt from SPP Tongyeong in Korea (Hull no: H1060) for US$ 29 mill to undisclosed buyers. We also report 2 x 63,500 Dwt ultramax resales from Yangzhou Dayang in China, sold for US$ 26 mill each to two separate buyers (one to a Greek and the other to Oldendorff). Jin Hui Shipping has sold one of their Tsuneishi Cebu newbuildings to LT Ugland. This is the JIN QING (58,500 Dwt / to be delivered in October 2013) and she achieved US$ 27 mill. Japanese owners have sold the handymax PACIFIC ETERNITY (46,683 Dwt / Blt 2004 Japan) for US$ 15.80 mill to Greeks and the handysize UNION BAY (32,254 Dwt / Built 2006 Japan) for US$ 16.50 mill to Pacific Basin. We also report an enbloc deal of five modern 33,000 Dwt Weihai China built handysizes which have been sold on private terms to Greek buyers. On the tanker side, Scorpio Tankers have aggressively moved to purchase four sistership 50,300 Dwt MR resales all scheduled for delivery from SPP Korea during 2014. We understand the price is US$ 37.75 mill each and the down payment will be in the form of shares in the company. Korean owners Sinokor have moved to secure two aframax tankers, namely the KWK ESTEEM (105,342 Dwt / Blt 2000 Korea) for US$ 11.45 mill and the HELLESPONT TATINA (105,535 Dwt / Blt 1999 Japan) for US$ 9.5 mill. Less activity in the newbuilding sector this week. Greek owners Chandris have ordered 2 x 14,000 Dwt aframaxes in Daewoo Korea for delivery 2015 at US$ 51 mill each. Sungdong in Korea have secured an order for 4 x 50,000 Dwt MR tankers from Breakwater Capital at US$ 34.50 mill all set for delivery during 2015. Grieg has exercised their option for 2 x 63,500 Dwt ultramaxes in Yangzhou Dayang for delivery 2016. In the gas sector, Malaysian oil and gas giant have ordered 4 +4 options 150,000 cbm LNGs in Hyundai Korea for delivery 2016/2017 at US$ 212.50 mill each and Eletson Corporation have ordered 5 x 12,500 cbm LPG/Ethylene tankers at Hyunday Mipo for delivery 2015/2016 at US$ 36.60 mill each. WeberSeas, Weekly Market Report Page 1 of 10
With all this recent market activity it comes to no surprise that the demolition market continues to be subdued. India has taken 2 handy bulkers for 382 and 400 and one container at 428. Similar levels were paid in Pakistan for two handy bulkers as well. Pakistan managed to secure the 1993 built 41,220 MT VLCC "MARAN TAURUS" for $407.50/ldt as-is Fujairah. Finally China bought one handymax at $358/ldt. TANKERS EAGLE VIENNA 318,000/04 - HYUNDAI - B&W 39,891 - COILED - SBT - IGS - COW - DH SS/D 11/2014 Sold for $40 mill to G reek buyers. HELLESPONT TATINA 105,535/99 - SUMITOMO - SUL 16,314 - COILED - SBT - IGS - COW - DH SS/D 10/2014 Sold for $9.5 mill to Korean buyers (Sinokor). KWK ESTEEM 105,342/00 - SAMHO - B&W 16,681 - COILED - SBT - IGS - COW - DH SS/D 03/2015 Sold for $11.45 mill to Korean buyers (Sinokor). ANGEL 66 70,426/05 - UNIVERSAL - B&W 13,610 - COATED - SBT - IGS - COW - DH SS/DD 06/2015 Sold for $22 mill to undisclosed buyers. SPP SACHEON S5122 50,300/14 - SPP - B&W 12,168 - COATED - COILED - SBT - IGS - COW - DH SPP SACHEON S5123 50,300/14 - SPP - B&W 12,168 - COATED - COILED - SBT - IGS - COW - DH SPP SACHEON S5124 50,300/14 - SPP - B&W 12,168 - COATED - COILED - SBT - IGS - COW - DH SPP SACHEON S5125 50,300/14 - SPP - B&W 12,168 - COATED - COILED - SBT - IGS - COW - DH Sold en bloc for $37.75 mill each to Monaco based buyers (Scorpio Tankers). 30% of payment will be paid in shares. CHAMPION STAR 45,999/91 - SPAIN - B&W 12,750 - COATED - SBT - IGS - COW - DH SS 11/2078, DD 11/2015 Sold for $6 mill to undisclosed buyers. DAWN 11,668/95 - FUKUOKA - MIT 4,899 - ST. ST. COATING - COILED - SBT - DH SS 04/2018, DD 04/2016 Sold for $5.6 mill to U.A.E. based buyers. BULKERS CAPE CHALLENGER II 180,000/13 - JAPAN MARINE - WARTSILA 25,533-9HH Sold for $51 mill to Greek buyers (Carras Hellas). NEW CENTURY 0108206 81,500/9-2013 - NEW CENTURY - B&W 16,179-7HH NEW CENTURY 0108207 81,500/10-2013 - NEW CENTURY - B&W 16,179-7HH Sold en bloc for $24.5 mill each to Norwegian buyers (Golden Ocean). WeberSeas, Weekly Market Report Page 2 of 10
SPP TONGYEONG H1060 81,434/13 - SPP - B&W 19,415-7HH Sold for 29 mill each to Greek buyers. GLORY NEWCASTLE 77,679/98 - MITSUI TAMANO - B&W 13,901-5HH - SS 07/2018 DD 05/2016 Sold for $9.2 mill to Hong Kong based buyers. YANGZHOU DAYANG DY 4028 63,500/1-2014 - DAYANG - B&W 16,179-5HH - C 4X35T Sold for $26 mill to Greek buyers. YANGZHOU DAYANG DY 4030 63,500/12-2013 - DAYANG - B&W 16,179-5HH - C 4X35T Sold for $26 mill to German buyers (Oldendorff Carriers). JIN QING 58,500/10-2013 - TSUNEISHI CEBU - B&W 12,889-5HH - C 4X30T Sold for $27 mill to Norwegian buyers (LT Ugland). PACIFIC ETERNITY 46,683/04 - TOYOHASHI - MIT 10,179-5HH - C 4X30T - SS/DD 01/2014 Sold for $15.8 mill to Greek buyers (Blue Wall Shipping). LONGVIEW 33,723/11 - DSME WEIHAI - B&W 10,741-5HH - C 4X35T LYTTELTON 33,717/10 - DSME WEIHAI - B&W 10,741-5HH - C 4X35T - SS/DD 07/2015 SAMJIN 33,702/09 - DSME WEIHAI - B&W 10,741-5HH - C 4X35T - SS/DD 12/2014 GISBORNE 33,671/10 - DSME WEIHAI - B&W 10,741-5HH - C 4X35T - SS/DD 04/2015 VANCOUVER 33,663/10 - DSME WEIHAI - B&W 10,741-5HH - C 4X35T Sold en bloc on private terms to Greek buyers (Empire Bulkers). UNION BAY 32,354/06 - KANDA - MIT 9,001-5HH - C 4X30.5T - SS 08/2016, DD 08/2014 Sold for $16.5 mill to Hong Kong based buyers (Pacific Basin). HIBERNIA 28,107/01 - LIAONING BOHAI - SUL 9,653-5HH - C 4X30.5T - SS 04/2016, DD 05/2014 Sold for $7.1 mill to Greek buyers. VOGE FELIX 24,279/97 - HAKODATE - MIT 7,200-4HH - C 4X305T - SS 01/2017, DD 12/2014 Sold for $6.1 mill to Chinese buyers. MPP/TWEENDECKERS BIRCH 2 20,427/98 - WUHU - B&W 9,041-4HH - C 3X30T - 900 TEU - SS/DD 09/2013 Sold for $2.8 mill to Chinese buyers. LEOPARD 9,187/01 - ROMANIA - MAK 5,221-3HH - C 3X25T - SS 11/2015, DD 06/2014 Sold on private terms to Chinese buyers. CONTAINERS CAROLINA 7,225/96 - GERMANY - B&W 7,206-4HO 3HA - C 3X45T - 700 TEU Sold for $1 mill to Greek buyers. WeberSeas, Weekly Market Report Page 3 of 10
FRESH FOR SALE BULKERS ORIENTAL PIONEER 69,606/96 - HASHIHAMA - B&W 12,121-7HH Vessel will be inspectable in China between 15th - 25th October. SOUTHERN FIGHTER 29,478/98 - KURUSHIMA ONISHI - MIT 9,001-5HH - C 4X30.5T Sellers invite possible buyers for physical inspection at Korean or Japanese port between 10th - 17th October. WeberSeas, Weekly Market Report Page 4 of 10
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2013 THIS DATE 2012 2012 TOTAL 2011 TOTAL ULCC/VLCC 11 8 14 14 SUEZMAX 6 14 15 4 AFRAMAX 13 21 29 24 PANAMAX TANKER 5 1 3 5 CAPE/COMBO (100,000 dwt +) 33 55 68 60 PANAMAX/KAMSARMAX BULKER 31 74 101 54 LOCATION TANKERS BULK CARRIERS CHINA 315-320 360-375 INDIA 415-425 385-400 BANGLADESH 415-430 390-405 PAKISTAN 415-425 390-400 DEMOLITION: INDIA CONT CARIBBEAN SEA M/V NAVIGATOR M M/V ACACIA N 46,975/92-14,650 LDT - USD 428/LDT 28,738/78-6,559 LDT - USD 400/LDT 23,193/78-6,022 LDT - USD 382/LDT BANGLADESH M/V ALEXANDER DIMITROV M/V WEST LAKE 38,4/85-9,643 LDT - USD 419/LDT 37,662/84-7,354 LDT - USD 380/LDT PAKISTAN M/T MARAN TAURUS (Including 250 tons ROB). 301,686/93-41,220 LDT - USD 407.5/LDT - as is Fujairah CHINA M/V SIERRA GUARDIAN 48,794/96-9,164 LDT - USD 358/LDT WeberSeas, Weekly Market Report Page 5 of 10
TYPE OF SHIP NEWBUILDING STATISTICS 2013 2014 2015 2016 * TOTAL ORDERBOOK ULCC/VLCC 5 34 14 53 SUEZMAX 6 25 14 45 AFRAMAX 6 44 38 11 99 PANAMAX 6 33 23 7 69 MR 23 136 129 22 310 10-35,000 DWT 29 48 29 5 111 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT 30 82 50 16 178 39 117 62 14 232 PANAMAX 22 85 28 135 SUPRAMAX / HANDYMAX 71 179 109 30 389 HANDYSIZE 54 160 93 21 328 NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 2 114,000 dwt Tanker 4 50,000 dwt Tanker Daewoo SME Sungdong SME 2015 $51.00 2015 $34.50 Chandris Group Breakwater Capital + 2 options 2 105,000 dwt Bulker 2 63,500 dwt Bulker Yangzijiang Shipyard Yangzhou Dayang 2015/16 $49.50 Fujian Shipping Co. 2016 n/a Grieg Star options exercised 4 150,000 cbm LNG 5 12,500 cbm LPG Hyundai H.I. Hyundai Mipo 2016/17 $212.50 Petronas 2015/2016 $36.60 Eletson Corporation + 4 options. Kvaerner Moss type tanks LPG/Ethylene vessels WeberSeas, Weekly Market Report Page 6 of 10
BALTIC DRY EX RATES THIS LAST % Baltic Dry Index 2046 1904 142 7.46% Baltic Capesize 3967 4018-51 -1.27% Baltic Panamax 1800 1453 347 23.88% Baltic Supramax 1069 964 105 10.89% Baltic Handysize 594 558 36 6.45% 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 27-Sep-09 27-Nov-09 27-Jan-10 27-Mar-10 27-May-10 27-Jul-10 27-Sep-10 27-Nov-10 27-Jan-11 27-Mar-11 27-May-11 27-Jul-11 27-Sep-11 27-Nov-11 B D I 27-Jan-12 27-Mar-12 27-May-12 27-Jul-12 27-Sep-12 27-Nov-12 27-Jan-13 27-Mar-13 27-May-13 27-Jul-13 27-Sep-13 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 27-Sep-09 27-Nov-09 27-Jan-10 27-Mar-10 27-May-10 27-Jul-10 27-Sep-10 27-Nov-10 27-Jan-11 27-Mar-11 27-May-11 27-Jul-11 27-Sep-11 27-Nov-11 27-Jan-12 27-Mar-12 27-May-12 27-Jul-12 27-Sep-12 27-Nov-12 27-Jan-13 27-Mar-13 27-May-13 27-Jul-13 27-Sep-13 B C I 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 27-Sep-09 27-Nov-09 27-Jan-10 27-Mar-10 27-May-10 27-Jul-10 27-Sep-10 27-Nov-10 27-Jan-11 27-Mar-11 27-May-11 27-Jul-11 27-Sep-11 27-Nov-11 B P I 27-Jan-12 27-Mar-12 27-May-12 27-Jul-12 27-Sep-12 27-Nov-12 27-Jan-13 27-Mar-13 27-May-13 27-Jul-13 27-Sep-13 WeberSeas, Weekly Market Report Page 7 of 10
Baltic Clean Tanker Baltic Dirty Tanker BALTIC WET EX RATES THIS LAST % 538 535 3 0.56% 586 589-3 -0.51% 1000 900 800 700 600 500 400 300 200 100 0 27-Sep-09 1400 1200 1000 800 600 400 200 27-Nov-09 0 27-Sep-09 27-Nov-09 27-Jan-10 27-Jan-10 27-Mar-10 27-Mar-10 27-May-10 27-May-10 27-Jul-10 27-Jul-10 27-Sep-10 27-Sep-10 27-Nov-10 27-Nov-10 27-Jan-11 27-Jan-11 27-Mar-11 27-Mar-11 27-May-11 27-May-11 27-Jul-11 27-Jul-11 27-Sep-11 27-Nov-11 BCTI 27-Sep-11 27-Nov-11 BDTI 27-Jan-12 27-Jan-12 27-Mar-12 27-Mar-12 27-May-12 27-May-12 27-Jul-12 27-Jul-12 27-Sep-12 27-Sep-12 27-Nov-12 27-Nov-12 27-Jan-13 27-Jan-13 27-Mar-13 27-Mar-13 27-May-13 27-May-13 27-Jul-13 27-Jul-13 27-Sep-13 27-Sep-13 WeberSeas, Weekly Market Report Page 8 of 10
MAJOR CAPITAL MARKETS INDEX THIS LAST % S HIGH S LOW DOW JONES 15,328.30 15,636.55-308.25-1.97% 15,709.60 12,471.50 NASDAQ 3,787.43 3,789.38-1.95-0.05% 3,798.16 2,810.80 AIM 792.73 738.18 54.55 7.39% 792.73 680.57 NIKKEI 14,792.12 14,766.18 25.94 0.18% 15,942.60 8,488.14 PUBLIC COMPANIES DRY-CARGO SECTOR NAME SYMBOL THIS LAST % HIGH LOW DIANA DSX 12.31 12.60-0.29-2.30% 13.24 6.46 DRYSHIPS DRYS 3.86 3.61 0.25 6.93% 4.00 1.46 EAGLE BULK EGLE 8.11 7.06 1.05 14.87% 8.75 1.32 GENCO GNK 4.12 4.38-0.26-5.94% 4.98 1.12 GOLDENPORT HOLDINGS GPRT.L 50.75 47.50 3.25 6.84% 50.75 29.00 NAVIOS HOLDINGS NM 7.26 7.49-0.23-3.07% 7.67 3.26 NAME CAPITAL PRODUCT PARTNERS SYMBOL TANKER/ENERGY SECTOR THIS LAST % HIGH LOW CPLP 9.02 8.87 0.15 1.69% 10.15 5.79 STEALTHGAS GASS 9.43 9.25 0.18 1.95% 12.10 5.34 TEN TNP 5.38 5.58-0.20-3.58% 5.75 3.04 NAME SYMBOL THIS CONTAINER SECTOR LAST % HIGH LOW DANAOS DAC 3.80 4.20-0.40-9.% 4.86 2.44 * Prices reflect Thursday s closing values. Prices in US$ except for Goldenport Holdings which is in GBP. WeberSeas, Weekly Market Report Page 9 of 10
RATES OF EX THIS LAST % Euro / $ 1.3547 1.3504 0.0043 0.32% Sterling / $ 1.6097 1.5988 0.0109 0.68% $ / Yen 98.543 99.646-1.104-1.11% $ / Nok 5.9969 5.9414 0.06 0.93% $ / Won 1,074.92 1,078.35-3.43-0.32% Brent Crude 109.21 109.38-0.17-0.16% LIBOR (3-month) 0.25% 0.25% 0 0.00% ESTIMATED VALUES* TANKERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS VLCC $77.0m $55.0m $35.0m $18.0m Suezmax $51.0m $40.0m $25.0m $10.0m Aframax $40.0m $28.0m $15.0m $8.0m Panamax $37.0m $25.0m $17.0m $9.0m Product $36.0m $21.5m $14.5m $5.0m BULK CARRIERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS Capesize $44.0m $34.0m $24.0m $8.0m Panamax/Kamsarmax $29.0m $21.0m $15.0m $5.5m Supramax/Handymax $25.0m $21.0m $15.3m $6m * The above values are based and adjusted according only to recent reported sales and are subject to weekly changes. TANKER T/C RATES* 1 YR 3 YRS VLCC (300,000 dwt) 18.000/D 21,500/D SUEZMAX (150,000 dwt) 15,750/D 18.250/D AFRAMAX (110,00 dwt) 13,500/D 15.250/D PANAMAX (72,000 dwt) 14.000/D 15,500/D MR (45-50,000 dwt) 14.250/D 15,750/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $595.00 $609.50 $618,00 $608.00 180cst: $617.50 $650.00 $650.00 $618.00 MGO: $910.00 $985.00 $947.50 $915.00 The information contained in this report has been obtained from various market sources. WEBERSEAS (HELLAS) S.A. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. WSH will not be held responsible for any action or failure to take action upon reliance on information contained in this report. 2013 WEBERSEAS (HELLAS) S.A. All Rights Reserved WeberSeas, Weekly Market Report Page 10 of 10