WEEKLY MARKET REPORT January 21st, 2011 / Week 3 What is happening now in the market is certainly affected by the extraordinary events that have taken place in Australia with the worst flooding in five decades hampering the country's exports and as a result a huge number of ships are left with no cargoes to carry. The market is now at its lowest since the beginning of February 2009. At the same time, this week's piece of good news was the confirmation that China's economy increased in excess of 10% in 2010. Is this a deja vu? Can a correlation be found with events that took place in the end of 2008 where the financial crisis was the main factor behind the sharp drop in the market? We do not know. The answer remains to be seen and the big question is: whilst demand is still high on the back of the Chinese economy how will 2011's supply of tonnage affect the market? Clearly the newbuilding orderbook is huge but this was also the case in both 2009 and 2010 and the market showed tremendous resilience in those years with freight rates giving good returns. Obviously the number of vessels to be delivered this year is larger than before but again we do not know how many deliveries will be delayed or even cancelled. We also do not know what is happening exactly to the Chinese inventories of iron ore and coal. Whilst liftings from Australia were disrupted one would have thought that activity from others sources (Brazil and South Africa mainly) would have increased. This did not really happen so possibly China's demand has been using up some of its inventories and may be the Chinese will come back into the market more to increase these inventories. We do not expect anything will happen prior to the end of the Chinese holidays so for the time being it is still rough seas ahead. TANKERS DOUBTLESS 47,076/91 - HALLA - B&W 12,420 - COATED - COILED - IGS - SBT - COW - SH SS/DD 09/2011 Sold for $7 mill. to Greek buyers. VANGUARD 47,059/92 - HALLA - B&W 12,420 - COATED - COILED - IGS - SBT - COW - DH SS/DD 03/2012 Sold for $9 mill. to undisclosed buyers. WeberSeas, Weekly Market Report Page 1 of 10
SHINY DEE 6,167/07 - TURKEY - MAK 4,065 - COATED - COILED - IGS - SBT - DH - SS/DD 09/2012 Sold at auction for $8.50 mill. to UK based buyers (Borealis Maritime). KEREM D 6,064/06 - TURKEY - MAK 4,000 - COATED - COILED - IGS - SBT - DH - SS/DD 12/2011 Sold at auction for excess $7.25 mill. to UK based buyers (Borealis Maritime). BULKERS JIN FENG 57,700/11 - STX DALIAN - B&W 13,542-5HH - C 4X30T Sold for $32 mill. to Thai buyers (Thoresen Thai Agencies). ANTONIS 45,090/84 - U.K. - SUL 9,800-5HH - C 4X25T - SS 06/2014, DD 04/2012 Sold for $8.25 mill. to Bangladesh based buyers. SIAM PEARL 38,026/86 - HYUNDAI - B&W 9,251-5HH - C 4X30T - SS/DD 04/2011 Sold for $5.3 mill. to undisclosed buyers. THOR CAPTAIN 25,082/83 - GERMANY - SUL 9,249-6 HO 8 HA - C 4X36T - SS 02/2013, DD 02/2011 Sold for $3.8 mill. to Mediterranean based buyers. OCEAN WALKER 18,040/81 - SASEBO - MIT 8,000-4HH - D 4X25T - SS/DD 04/2011 Sold for $2.1 mill. to undisclosed buyers. GENERAL CARGO/MPP BLANDINE DELMAS 33,660/86 - FRANCE - B&W 8,164-5HH - C 2X40T, 3X25T- SS/DD 04/2011 CAROLINE DELMAS 33,611/86 - FRANCE - B&W 8,164-5HH - C 2X40T, 3X25T- SS/DD 04/2011 DELPHINE DELMAS 33,0/86 - CROATIA - SUL 7,340-5HH - C 2X40T, 3X25T - SS/DD 06/2011 ADELINE DELMAS 33,504/86 - CROATIA - SUL 7,340-5HH - C 2X40T, 3X25T- SS/DD 02/2011 Sold en bloc for $6.50 mill. each to Hong Kong based buyers. SUDERTOR 5,450/00 - JIANGSU - MAN 5,873-3HH - C 2X40 - SS 05/2015, DD 05/2013 Sold for $4.30 mill. to Portuguese buyers. STARFORD 3 7,110/85 - UBE - B&W 4,760-2HH - D 2X15T - SS 08/2013, DD 08/2011 Sold for $1.80 mill. to undisclosed buyers. EAST STAR 6,760/84 - KOCHI JYUKO - HAN 3,300-2HH - D 2X25T, 2X20T - SS 02/2014, DD 05/2011 Sold for $1.50 mill. to Chinese buyers. SOUTHERN STAR 6,503/83 - DAEDONG - HAN 4,000-2HH - D 2X25T, 2X20T - SS/DD 03/2012 Sold for excess $1.20 mill. to Chinese buyers. CONTAINERS TAICANG DRAGON 34,325/08 - XIAMEN - SUL 29,313-5HO 9 HA - C 3X45T - 2,578 TEU Sold for $28.8 mill. to undisclosed buyers. WeberSeas, Weekly Market Report Page 2 of 10
SINAR BINTAN 14,971/02 - HAKATA - B&W 13,580 - C 3X40T - 1,060 TEU Sold for $13.6 mill to Singapore based buyers (Samudera Shipping). FRESH FOR SALE BULKERS MINERAL STAR 76,286/05 - TSUNEISHI - B&W 14,276-7HH Vessel will be inspectable in Rotterdam where ETA 3rd February. WeberSeas, Weekly Market Report Page 3 of 10
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2011 THIS DATE 2010 2010 TOTAL 2009 TOTAL ULCC/VLCC 0 1 14 10 SUEZMAX 0 1 10 5 AFRAMAX 0 1 14 12 PANAMAX TANKER 0 1 10 8 CAPE/COMBO (100,000 dwt +) 3 0 15 5 PANAMAX/KAMSARMAX BULKER 4 0 6 21 LOCATION TANKERS BULK CARRIERS CHINA 460 450 INDIA 490 480 BANGLADESH N/A N/A PAKISTAN 485 455 DEMOLITION: INDIA M/V KYUSHU STAR M/V ANGELO DELLA GATTA (including 670 tonnes bunkers ROB) M/V VENETICO B M/V CHARLOTTENBORG M/V THOR SUN M/V ALKAWTER Ro-Ro MERDIF 2 142,936/1982-18,690 LDT - USD 489/LDT 127,774/1982-20,178 LDT - USD 505/LDT 61,345/1978-12,380 LDT - USD 472/LDT 24,223/1981-15,154 LDT - USD 513/LDT 16,223/1986-4,950 LDT - USD 453/LDT - as is Indonesia 15,260/1980-3,796 LDT - USD 464/LDT 4,210/1972-9,100 LDT - USD 475/LDT PAKISTAN M/V SAC MALAGA 30,499/1986-6,595 LDT - USD 460/LDT CHINA M/V ASANO NO. 18 10,267/1974-3,100 LDT - USD 406/LDT WeberSeas, Weekly Market Report Page 4 of 10
TYPE OF SHIP NEWBUILDING STATISTICS 2011 2012 2013 2014 * TOTAL ORDERBOOK ULCC/VLCC 83 59 38 9 189 SUEZMAX 68 56 19 2 145 AFRAMAX 80 47 18 3 148 PANAMAX 43 14 17 4 78 MR 130 74 31 5 240 10-35,000 DWT 212 47 8 267 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT 357 187 53 7 604 268 251 49 17 585 PANAMAX 108 78 33 219 SUPRAMAX / HANDYMAX 477 284 85 846 HANDYSIZE 405 223 77 13 718 * Includes ALL vessels on order NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 3 250,000 dwt Bulker 4 180,000 dwt Bulker Dalian Cosco Tianjing Xingang 2013 n/a N.Y.K 2012/2013 $ 2 176,000 dwt Bulker SWS 2013 $57 6 76,000 dwt Bulker Taizhou Catic 2012 $30 Louis Dreufus Armateurs Santoku Shipping Harren & Partner 2 57,300 dwt Bulker STX 2013 $31 Helikon 3 51,000 dwt Bulker 2 32,000 dwt Bulker Taizhou Sanfu Jiangmen Nanyang 2012 n/a 2012/2013 $25.5 Fuzhou Hai Tong Marine Grindrod Group Switched order from 2 VLOCs Options exercised 1 120,000 dwt Tanker IHI Marine 2013 xs $72 2 82,000 cbm VLGC Hyundai H.I. 2013 $75 Nippon Oil Tanker Petredec Limited 2 4,500 TEU Container Hyundai H.I. 2012/2013 $60 D Oltmann WeberSeas, Weekly Market Report Page 5 of 10
BALTIC DRY EXCHANGE RATES THIS WEEK LAST WEEK CHANGE CHANGE % Baltic Dry Index 1370 1439-69 -4.79% Baltic Capesize 1556 1595-39 -2.45% Baltic Panamax 1650 1923-273 -14.20% Baltic Supramax 1427 1393 34 2.44% Baltic Handysize 777 765 12 1.57% 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 11-Jan-05 11-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 11-Jul-05 11-Oct-05 11-Jan-06 11-Apr-06 11-Jul-06 11-Oct-06 11-Jan-07 11-Apr-07 11-Jul-07 11-Oct-07 11-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 11-Apr-08 11-Jul-08 11-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 11-Jan-09 11-Apr-09 11-Jul-09 11-Oct-09 11-Jan-10 11-Apr-10 11-Jul-10 11-Oct-10 11-Jan-11
BALTIC WET EXCHANGE RATES THIS WEEK LAST WEEK CHANGE CHANGE % Baltic Clean Tanker 635 634 1 0.16% Baltic Dirty Tanker 664 719-55 -7.65% 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 11,822.80 11,755.44 67.36 0.57% 11,922.90 9,596.04 NASDAQ 2,704.29 2,735.29-31.00-1.13% 2,766.17 2,061.14 AIM 946.80 959.80-13.00-1.35% 959.80 648.50 NIKKEI 10,437.31 10,589.76-1.45-1.44% 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 11.92 12.42-0.50-4.03% 16.13 10.75 DRYSHIPS DRYS 5.05 5.45-0.40-7.34% 6.82 3.28 EAGLE BULK EGLE 4.72 4.95-0.23-4.65% 6.08 3.91 EXCEL MARITIME EXM 5.22 5.59-0.37-6.62% 7.50 4.59 GENCO GNK 13.68 14.10-0.42-2.98% 24. 13.56 GOLDENPORT HOLDINGS GPRT.L 115.25 118.00-2.75-2.33% 140.00 96.00 NAVIOS HOLDINGS NM 5.43 5. -0.09-1.63% 7.55 4.38 NAME SYMBOL TANKER/ENERGY SECTOR THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEK HIGH WEEK LOW CAPITAL PRODUCT PARTNERS CPLP 9.56 10.01-0.45-4.50% 10.30 5.31 GENERAL MARITIME GMR 3.17 3.35-0.18-5.37% 8.82 3.02 OMEGA NAVIGATION ONAV 1.24 1.36-0.12-8.82% 3.16 1.03 STEALTHGAS GASS 7.00 7.06-0.06-0.85% 8.80 3.93 TEN TNP 9.64 9.95-0.31-3.12% 18.34 8.96 CONTAINER SECTOR NAME SYMBOL THIS LAST CHANGE CHANGE WEEK WEEK WEEK* WEEK* % HIGH LOW DANAOS DAC 4.59 4.85-0.26-5.36% 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 / $ 1.3550 1.3389 0.0161 1.20% Sterling / $ 1.5926 1.5835 0.0091 0.57% $ / Yen 82.745 82.785-0.040-0.05% $ / Nok 5.8507 5.8674-0.0167-0.28% $ / Won 1,122.50 1,110.80 11.70 1.05% Brent Crude 97.17 90.62 6.55 7.23% 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) $20.0m Suezmax $70.0m $60.0m $43.0m (DH) $12.5m Aframax $58.0m $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 $55.0m $42.0m $20.0m Panamax/Kamsarmax $41.0m $35.0m $29.0m $16.0m Supramax/Handymax $33.0m $29.0m $24.0m $13.0m * 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) 30,000/D 34,000/D 36,500/D SUEZMAX (150,000 dwt) 24,500/D 26,500/D 27,500/D AFRAMAX (110,00 dwt) 18,000/D 19,500/D 21,000/D PANAMAX (72,000 dwt) 15,000/D 16,750/D 17,500/D MR (45-50,000 dwt) 13,000/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: $513.00 $546.50 $517.50 $544.50 180cst: $9.50 $585.00 $548.50 $553.50 MGO: $822.50 $885.00 $825.50 $817.50 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