WEEKLY MARKET REPORT January 7th, 2011 / Week 1 The last time we published the market indices was just before Christmas and up to today we are seeing a continued correction in the capesize market with the BCI coming off 20%, pulling the BDI down with it to just over 1500 points (a reduction of just over 14%). Supras and handies ended lower as well with only the panamax market showing an increase of close to 5%. The main reason behind this negative picture, mainly for the capesizes, is the unprecedentent flooding that has taken place in Australia which has practically paralyzed its exports of iron ore and coal thus increasing the already high supply of tonnage looking for cargoes. We do believe that the market has over reacted to this situation and that rates should be balanced at higher levels. Despite the holiday period and the present market situation, activity remains relatively high with prices at good levels We are reporting the sale of a 57,700 Dwt resale supramax from STX DALIAN scheduled for delivery this month has been committed for excess US$ 33 million to Turkish buyers. That is hull no. 2007 (originally to be named Kefallonia) which was ordered by Greek owners Lykiardopoulo but cancelled due to her long delivery delays. Turkish buyers were also behind the private sale of the handysize MV EL CONDOR PASA (33,476 dwt / Built 2001 Japan) which fetched US$ 21.8 million. Lastly the older handymax MV JORITA (36,665 dwt / Built 1985 Korea) has been committed for US$ 8.5 million, a price reflecting her t/c attached at over market rates, being US$ 16,250 per day until May-September 2011. Tanker sales are dominated by the high price achieved for the VLCC MT FRONT SHANGHAI (298,971 dwt / Blt 2006 China) which was sold for US$ 91 million to Middle Eastern buyers including a t/c back to Frontline for 2 years at US$ 35,000 per day. One would have thought that newbuilding activity would have dried off with the present market uncertainty and with the already big orderbook however, for yet another week we are reporting many orders - dominated by Chinese owner Guangdong Lanahi Shipping who have embarked on a 20 vessel order in China. German owners have also booked 6 panamax berths in China. WeberSeas, Weekly Market Report Page 1 of 10
Demolition of dry bulk vessels is continuing with India taking the lion's share this week. With the lack of tanker tonnage, prices for dry vessels are firming up and are near the US$ 500 levels in India. China paid a massive US$ 480 for an elderly VLOC although this price included around 800 mt of bunkers rob on delivery. These high prices in the demolition market are welcomed as owners will be tempted to scrap their elderly tonnage. TANKERS SUNRISE JEWEL 302,440/92 - DAEWOO - B&W 35,492 - IGS - SBT - COW - DS - SS/DD 06/2012 Sold for $36 mill. to undisclosed buyers for conversion. FRONT SHANGHAI 298,971/06 - NANTONG - B&W 30,795 - IGS - SBT - COW - DH - SS/DD 09/2011 Sold for $91 mill. to U.A.E. based buyers (Gulf Navigation Holding). Sale includes 2 years t/c back at $35,000/day. ISOLA VERDE 36,457/94 - ITALY - B&W 12,889 - COATED - COILED - SBT - IGS - COW - DH - SS 02/2014, DD 05/2012 Sold for $10.5 mill. to Indonesian buyers. FORMOSA FOUR 35,672/91 - KURUSHIMA - MIT 12,300 - COATED - COILED - SBT - IGS - DH SS/DD 04/2011 Sold for $6.1 mill. to Indonesian buyers. TJORE ELIEZER 9,220/08 - DONGFANG - MAK 4,038 - COILED - COATED - SBT - DH - SS 03/2013 DD 03/2011 Sold for $5.7 mill. to Norwegian buyers (Bergshav). BULKERS FIVE STARS UNION 65,162/82 - HITACHI - B&W 13,800-7HH - SS/DD 01/2012 Sold for $6.2 mill. to Chinese buyers. STX DALIAN 2007 57,700/Jan-11 - STX DALIAN - B&W 12,889-5HH - C 4X30T Sold for excess $33 mill. to Turkish buyers. JORITA 36,665/85 - DAEWOO - B&W 9,800-5HH - C 4X25T - SS 05/2015, DD 05/2013 Sold for $8.5 mill. to Middle Eastern buyers. Sale includes t/c attached until May-September 2011 at $16,250/day. EL CONDOR PASA 33,476/01 - HAKODATE - MIT 9,001-5HH - C 4X30T - SS 10/2015, DD 04/2013 Sold for $21.8 mill. to Turkish buyers. SEVEN OCEAN 23,948/96 - KANDA - B&W 8,130-4HH - C 4X30T - SS/DD 04/2011 Sold for $14 mill. to undisclosed buyers. GENERAL CARGO/MPP NOREN 6,154/84 - ZHONGHUA - MIT 3,901-1HO 2HA - C 2X36T - 310 TEU - SS 11/2014, DD 10/2011 SOMMEN 6,150/83 - ZHONGHUA - MIT 3,901-1HO 2HA - C 2X36T - 310 TEU - SS 12/2013 DD 06/2011 Sold en bloc for $1.3 mill. each to Syrian buyers. WeberSeas, Weekly Market Report Page 2 of 10
FGM ISTANBUL 5,050/80 - GERMANY - DEUTZ 3,001-2HH - 263 TEU - SS/DD 05/2011 Sold for $1 mill. to Turkish buyers. CONTAINERS OOCL XIAMEN 43,093/03 - KOYO MIHARA - B&W 39,265-2,762 TEU Sold for $26.6 mill. to Greek buyers (Technomar). EURUS OSLO 34,380/89 - GERMANY - SUL 15,499-5HO 10HA - C 3X40T - 2,097 TEU EURUS OTTAWA 34,380/89 - GERMANY - SUL 15,499-5HO 10HA - C 3X40T - 2,097 TEU Sold en bloc for $5.7 mill. each to Chinese buyers (Hongyuan Marine). MERKUR LAKE 12,576/94 - POLAND - B&W 9,422-4HO 8HA - C 2X40T - 1,016 TEU Sold for $7.5 mill. to Asian buyers. RO-RO/PASSENGER SUPERFERRY II 1,029/74 - BELGIUM - 4 x PIELSTICK 18,002-2,007 PASS - 403 LM - 271 CARS Sold for Euro 4.65 mill. to Greek buyers (Golden Star Ferries Shipping). FRESH FOR SALE BULKERS LEPTA GALAXY,378/02 - TSUNEISHI - B&W 11,640-5HH - C 4X30.5T Vessel inspectable in Richards Bay around 14th January. WeberSeas, Weekly Market Report Page 3 of 10
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2010 THIS DATE 2009 2009 TOTAL 2008 TOTAL ULCC/VLCC 14 10 10 6 SUEZMAX 10 5 5 1 AFRAMAX 14 12 12 7 PANAMAX TANKER 10 8 8 9 CAPE/COMBO (100,000 dwt +) 16 5 5 8 PANAMAX/KAMSARMAX BULKER 7 21 21 19 LOCATION TANKERS BULK CARRIERS CHINA 460 450 INDIA 490 480 BANGLADESH N/A N/A PAKISTAN 485 455 DEMOLITION: INDIA M/V SEA DAISY M/V HORIZON 1 M/V KS COSMOS (MPP) M/V SZCZECIN (MPP) M/V DELPHIN (MPP) 53,644/78-11,210 LDT - USD 495/LDT 34,173/80-8,000 LDT - USD 485/LDT 22,120/78-7,823 LDT - USD 475/LDT 13,634/87-7,140 LDT - USD 500/LDT 10,420/78-4,200 LDT - USD 485/LDT CHINA M/V TINOS WARRIOR (including 800 tonnes bunkers ROB) 208,739/82-28,050 LDT - USD 480/LDT M/V YONG PING 77,683/81-15,986 LDT - USD 455/LDT (including payment for 70% of 500 tonnes bunkers ROB) WeberSeas, Weekly Market Report Page 4 of 10
TYPE OF SHIP NEWBUILDING STATISTICS 2011 2012 2013 2014 * TOTAL ORDERBOOK ULCC/VLCC 82 60 38 9 189 SUEZMAX 68 56 19 2 145 AFRAMAX 81 53 17 3 154 PANAMAX 43 14 17 4 78 MR 126 75 28 5 234 10-35,000 DWT 159 43 8 210 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT 355 188 53 7 603 269 240 48 17 574 PANAMAX 110 77 30 217 SUPRAMAX / HANDYMAX 479 251 69 799 HANDYSIZE 379 201 72 14 666 * Includes ALL vessels on order NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 6 75,000 dwt Bulker 3 75,000 dwt Bulker 8 57,000 dwt Bulker 8 51,000 dwt Bulker 4 48,000 dwt Bulker Taizhou Catic Chengxi Shipyard Jiangsu Shipyard Taizhou Sanfu Jiangsu Shipyard 2012/13 $30 2012/13 2012/13 $30.2 2012/13 $27.2 2012/13 $27 German owner Canada Steamship Lines Guangdong Lanhai Shipping Guangdong Lanhai Shipping Guangdong Lanhai Shipping self-unloading bulkers 2 18,000 dwt MPP Taizhou Sanfu 2012 $25 Swiss Cargo Line WeberSeas, Weekly Market Report Page 5 of 10
BALTIC DRY EXCHANGE RATES THIS WEEK LAST WEEK* CHANGE CHANGE % Baltic Dry Index 1519 1773-254 -14,33% Baltic Capesize 1865 2346-481 -20,50% Baltic Panamax 1936 1845 91 4,93% Baltic Supramax 1341 1493-1 -10,18% Baltic Handysize 770 829-59 -7,12% * This column represents the last available figures of 2010 (i.e. 24 th December). 14000 12000 10000 8000 6000 4000 2000 0 25000 20000 15000 10000 5000 0 14000 12000 10000 8000 6000 4000 2000 0 4-Jan-05 4-Apr-05 4-Jul-05 4-Jan-05 4-Apr-05 4-Jul-05 04-Jan-05 04-Apr-05 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 04-Jul-05 04-Oct-05 04-Jan-06 04-Apr-06 04-Jul-06 04-Oct-06 04-Jan-07 04-Apr-07 04-Jul-07 04-Oct-07 04-Jan-08 4-Apr-08 4-Jul-08 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 4-Oct-10 4-Jan-11 WeberSeas, Weekly Market Report Page 6 of 10 BDI 4-Apr-08 4-Jul-08 BCI 04-Apr-08 04-Jul-08 04-Oct-08 BPI 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 4-Oct-10 4-Jan-11 04-Jan-09 04-Apr-09 04-Jul-09 04-Oct-09 04-Jan-10 04-Apr-10 04-Jul-10 04-Oct-10 04-Jan-11
BALTIC WET EXCHANGE RATES THIS WEEK LAST WEEK* CHANGE CHANGE % Baltic Clean Tanker 619 759-140 -18,45% Baltic Dirty Tanker 776 1043-267 -25,60% * This column represents the last available figures of 2010 (i.e. 24 th December). 2.500 2.000 1.500 1.000 500 0 2.500 2.000 1.500 1.000 4-Jan-05 8-Mar-05 13-May-05 500 0 10-Jan-05 14-Mar-05 19-May-05 18-Jul-05 20-Sep-05 22-Nov-05 1-Feb-06 5-Apr-06 13-Jun-06 15-Aug-06 18-Oct-06 20-Dec-06 1-Mar-07 3-May-07 5-Jul-07 7-Sep-07 9-Nov-07 21/01/2008 22-Jul-05 26-Sep-05 28-Nov-05 7-Feb-06 11-Apr-06 19-Jun-06 21-Aug-06 24-Oct-06 3-Jan-07 7-Mar-07 9-May-07 11-Jul-07 13-Sep-07 15-Nov-07 25/01/2008 27-Mar-08 2-Jun-08 BCTI 2-Apr-08 6-Jun-08 15-Aug-08 BDTI 11-Aug-08 14-Oct-08 23-Dec-08 4-Mar-09 11-May-09 14-Jul-09 16-Sep-09 18-Nov-09 29-Jan-10 6-Apr-10 10-Jun-10 12-Aug-10 15-Oct-10 17-Dec-10 20-Oct-08 6-Jan-09 10-Mar-09 15-May-09 20-Jul-09 22-Sep-09 24-Nov-09 4-Feb-10 12-Apr-10 16-Jun-10 18-Aug-10 21-Oct-10 23-Dec-10 WeberSeas, Weekly Market Report Page 7 of 10
MAJOR CAPITAL MARKETS INDEX THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEKS HIGH WEEKS LOW DOW JONES 11.722,89 11.569,71 153,18 1,32% 11.736,74 9.596,04 NASDAQ 2.702,20 2.662,98 39,22 1,47% 2.712,35 2.061,14 AIM 939,30 927,20 12,10 1,31% 941,00 650,00 NIKKEI 10.9,76 10.228,92 300,84 2,94% 11.408,20 8.807,41 NAME SYMBOL PUBLIC COMPANIES DRY-CARGO SECTOR THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEK HIGH WEEK LOW DIANA DSX 12,50 11,82 0,68 5,75% 16,62 10,75 DRYSHIPS DRYS 5,45 5,37 0,08 1,49% 6,95 3,28 EAGLE BULK EGLE 5,06 4,92 0,14 2,85% 6,08 3,91 EXCEL MARITIME EXM 5,77 5,58 0,19 3,41% 7,68 4,59 GENCO GNK 15,36 14,39 0,97 6,74% 26,49 13,88 GOLDENPORT HOLDINGS GPRT.L 117,25 118,00-0,75-0,64% 140,00 96,00 NAVIOS HOLDINGS NM 5,38 5,20 0,18 3,46% 7,55 4,38 NAME SYMBOL TANKER/ENERGY SECTOR THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEK HIGH WEEK LOW CAPITAL PRODUCT PARTNERS CPLP 9,89 9,75 0,14 1,44% 10,06 5,31 GENERAL MARITIME GMR 3,58 3,28 0,30 9,15% 8,82 3,02 OMEGA NAVIGATION ONAV 1,44 1,29 0,15 11,63% 3,50 1,03 STEALTHGAS GASS 8,37 7,99 0,38 4,76% 8,65 3,93 TEN TNP 10,03 10,02 0,01 0,10% 18,34 8,96 CONTAINER SECTOR NAME SYMBOL THIS LAST CHANGE CHANGE WEEK WEEK WEEK* WEEK* % HIGH LOW DANAOS DAC 3,78 3,74 0,04 1,07% 5,25 3,50 * Prices reflect Thursday s closing values. Prices in US$ except for Goldenport Holdings which is in GBP. WeberSeas, Weekly Market Report Page 8 of 10
RATES OF EXCHANGE THIS WEEK LAST WEEK CHANGE CHANGE % Euro / $ 1,2982 1,3385-0,0403-3,01% Sterling / $ 1,5451 1,5613-0,0162-1,04% $ / Yen 83,535 80,913 2,622 3,24% $ / Nok 5,9574 5,8237 0,1337 2,30% $ / Won 1.121,80 1.119,82 1,98 0,18% Brent Crude 88,82 87,96 0,86 0,98% LIBOR (3-month) 0,30% 0,30% 0 0,00% ESTIMATED VALUES* TANKERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS VLCC $110.0m $86.0m $62.0m (DH) $16.0m Suezmax $70.0m $60.0m $43.0m (DH) $12.5m Aframax $60.0m $48.5m $37.0m (DH) $9.0m Panamax $45.0m $33.0m $20.0m (DH) $7.0m Product $39.0m $25.0m $17.0m (DH) $4.5m BULK CARRIERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS Capesize $63.0m $57.0m $46.0m $20.0m Panamax/Kamsarmax $45.0m $39.0m $31.0m $17.5m Supramax/Handymax $36.0m $31.0m $25.0m $13.5m * 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 5 YRS VLCC (300,000 dwt) 29,500/D 33,000/D 36,000/D SUEZMAX (150,000 dwt) 24,000/D 26,000/D 27,500/D AFRAMAX (110,00 dwt) 18,000/D 19,250/D 21,000/D PANAMAX (72,000 dwt) 15,500/D 16,500/D 17,500/D MR (45-50,000 dwt) 13,500/D 14,250/D 14,750/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $509.50 $5.00 $512.50 $1.50 180cst: $3.50 $557.00 $540.50 $530.50 MGO: $780.00 $835.00 $792.50 $785.00 WeberSeas, Weekly Market Report Page 9 of 10
WEBERSEAS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER Bobby Mitropoulos 6936-530005 Tom Protonotarios 6936-530006 Nicholas Sfinias 6944-343488 Spyros Karamassis 6945-776757 TANKER CHARTERING Basil Mavroleon 6932-644983 Lefteris Mystriotis 6946-762010 Dionysios Mitsotakis 6936-800320 George Karalis 6948-753725 TANKER OPERATIONS Kimon Polikratis 6932-300590 ADMINISTRATION Yannis Mitropoulos 6936-530007 Urania Savvaki 6934-257746 Very Truly Yours, W E B E R S E A S (H E L L A S) S.A. 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. 2010 WEBERSEAS (HELLAS) S.A. All Rights Reserved WeberSeas, Weekly Market Report Page 10 of 10