MARKET REPORT WEEK 35 BASED ON SALES AND PURCHASES OF VESSELS WEEK ENDED FRIDAY 2 nd SEPTEMBER 2011. The BDI moved up by nearly 13% last week mainly because the BCI enjoyed a fantastic week increasing nearly 27% w-o-w, and whilst many commentators associate the improvement with Japan's decision to idle 16 nuclear powers stations and return to coal fired power, it was actually increased iron ore shipments from Brazil and Australia to the Far East that mainly induced average daily capesize rates to increase from region $16,600 to region $23,900 in just one week. Conversely, though last week saw a number of panamax size coal cargoes out of Australia and Indonesia the BPI ended up loosing just over -1.2% w-o-w mainly due to panamax overtonnaging in the Atlantic. The BSI and BHSI indices basically stood still last week. Whatever the reasons for the recent improvements in the cape freight rates it seems to have induced a number of capesize s+p deals to conclude albeit at what appear to now be attractively discounted prices; especially for mid 90's built capes which are now being sold at similar levels to panamaxes and handymaxes of the same age. There appears to be an upsurge in Tanker S+P deals in the past couple of weeks too, from smaller sizes up to VLCC's, but as per the dry sector many of the deals concluding are now at seriously discounted prices eg a mid 90's Korean built, double hull VLCC has now sold at $25 million which is only about 10% above her prevailing scrap level. Should the market keep falling and we start to see these 1 st generation double hull VLCC's actually start to go for scrap, that could greatly assist the market by starting to offset the 120 newbuilding VLCC's scheduled to deliver between now and the end of 2013... The demolition sector remains much the same with India paying region $515-535 for bulkers and higher for tankers, whilst China remains able to pay levels around $450 for bulkers and a little more for tankers. 1
HIGH CENTURY 48,676 07/2006 TIKHORETSK 40,791 07/1996 CLIPPER CARIBE SAMHO CORDELIA 14,246 08/2005 13,153 08/2008 AUDACITY 3,778 03/1997 DB SUNNY 3,165 03/1999 IWAGI, ULJANIK, CROATIA ASAKAWA, SAMHO, S.KOREA SINGMARINE, SINGAPORE NOKBONG, S.KOREA TANKERS HULL DH 27.00M UNDISCLOSED DH 11.00M CHAMPION TANKERS DH 15.00M DE POLI TANKERS DH P+C UNDISCLOSED DH 2.40M UNDISCLOSED DH P+C UNDISCLOSED ALKMAN 66,221 07/1985 NAMURA, COMBO GEAR / PUMPS - 8.00M CHINESE (FUZHOU FENGDA) GAS CBM 2
BALTIC TANKER INDICES 2011 2500 2000 1500 1000 500 0 Week BDTI 10 BCTI 10 BDTI 11 BCTI 11 3
BULKERS GEAR CAPESIZE / VLOC BEGONIA 180,265 02/2005 LOWLANDS PROSPERITY 169,229 05/2001 SUMA 149,380 11/1994 IMABARI, SAMHO, S.KOREA KEELUN, CHINA - 37.50M UNDISCLOSED - 29.00M UNDISCLOSED - 14.00M CHINESE PEQUOT 70,165 05/1996 PANAMAX / POST-PANAMAX SUMITOMO, HANDYMAX / SUPRAMAX GLESS 14.80M FAR EASTERN PEARL VENUS 53,679 07/1991 SEA BANIAN 45,724 01/2000 MITSHUBISHI, TSUNEISHI, CR3x15T 11.00M UNDISCLOSED CR4x25T 19.00M CHINESE (TIAJIN GUODIAN) HANDIES SMALL BULKERS 4
BALTIC DRY INDICES 2011 8500 7500 6500 5500 4500 3500 2500 1500 500 BDI 11 BCI 11 BPI 11 BSI 11 BHSI 11 BDI 10 BCI 10 BPI 10 BSI 10 BHSI 10 Week 5
INDICATIVE REPORTED FIXTURES RATE CHARTERERS DURATION MINERAL HOKKAIDO 2008 180,159 17.250$/D OLDENDORFF CIC ELLI S 2003 171,448 14.000$/D CARGILL ANNOU G O 2011 87,400 12.750$/D COBELFRET 6/12 MONTHS OCEAN SHANGHAI 2006 76,801 13.000$/D SWISS MARINE PONTOVREMON 2001 76,318 13.500$/D MARUBENI DIONE 2001 75,172 14.000$/D CARGILL NAVIOS APOLLON 2000 52,068 14.500$/D NORDEN 5/7 MONTHS MEDI IMABARI 2008 51,047 15.000$/D WBC COSCO JINGGANGSHAN 2010 31,907 12.000$/D PRIME TRANSPORT BALTIC DRY INDICES BDI BCI BPI BSI BHSI PREVIOUS WEEK CURRENT WEEK + / - 1541 1740 199 2346 2975 629 1651 1630-21 1387 1379-8 667 670 3 6
TWEEN / MPP / GENERAL CARGO EASTSTAR 8,865 01/1997 TULCEA, ROUMANIA GEAR CR2x40T 3.60M UNDISCLOSED CONTAINER GEAR TEU REEF REEF. CAP/TY GEAR PCC/ RORO / PASS CARS/ LM PAX COMMENT 7
TYPE DEMOLITION LDT USD/LT SOLD TO V EUROPE BULK 139,496 1982 19,204 525 BANGLADESH - DIAS BULK 134,964 1988 25,980 530 INDIA - JEWEL I BULK 65,403 1983 11,298 515 PAKISTAN - OCEAN BEAUTY BULK 64,059 1982 12,310 474 INDIA AS IS CHINA ST ANNA BULK 52,670 1986 13,200 548 INDIA - DON LEANDRO BULK 26,933 1975 6,560 352 INDIA AS IS CHILE S / R WILMINGTON TANK 48,846 1984 14,537 378 UNDISCLOSED AS IS TEXAS INDRA TANK 33,115 1994 10,830 615 INDIA 150 T ST ST ARTEMIS TANK 28,750 1984 9,634 535 INDIA - ZHONG YANG MEN TWEEN 24,815 1977 7,689 514 INDIA - DM DEFENDER TWEEN 22,882 1981 8,405 543 INDIA - LAURA REEF 9,464 1983 6,201 510 INDIA - TYPE DELY NEWBUILDINGS BULK 82,000 2012 SUNGDONG 35.00M NISSHIN SHIPPING 2 UNITS BULK 76,000 2012 GUANGZHOU HUANGPU 31.25M CHINA MERCHANT 4 UNITS BULK 35,000 2013 DAESUN 25.50M GRECOMAR 1+1 OPTION TANK 115,000 2013 SHANGHAI WAIGAOQIAO 46.00M HELLESPONT GROUP 2+2 OPTION TANK 74,000 2012 SUNGDONG P+C NAVIOS 2 UNITS MARKET RATES BRENT GBP USD USD K WON USD YEN EURO USD PREVIOUS WEEK 110.33 1.6306 1081.75 76,995 1.4429 CURRENT WEEK + / - 113.65 3.32 1.6217-0.0089 1061.44 76,755-20.31-240 1.4254-0.0175 8