MONTHLY MARKET OVERVIEW

MONTHLY MARKET OVERVIEW 1 st 28 th February 219 SUMMARY OF CONTENT Value analysis Total second hand S&P activity Newbuilding activity Demolition activity Charter rate analysis +44 () 23 26 5555 vesselsvalue.com info@vesselsvalue.com

BULKER VALUES THROUGH FEBRUARY 219 BULKERS Values have softened in all tonnages. The Bulk markets continue to suffer from negative sentiment during the February lull. Older vessels depreciated the most as expectations of a near term recovery in spot market rates have faded. This table shows the monthly % change in value from 1 st to the 28 th February 219 for Bulker vessels, by year of build. YEAR OF BUILD CAPE PMAX SUPRA HANDY DWT DWT DWT DWT 219-1.1% -2.7% -1.2% -3.5% 218-1.9% -1.2% -3.7% 217-1.2% -3.9% 216-2.7% -2.8% -4.1% 215-2.9% -2.6% -4.2% 214-3.% -2.7% -4.4% 213-3.% -3.2% -4.6% 212-3.1% -3.2% -4.8% 211-3.2% -3.2% -5.% 21-3.5% -3.7% 55k -5.2% 29-3.9% -4.2% 55k -5.3% 28-3.9% -4.7% 55k -5.6% 27-4.3% -4.3% 55k -5.8% 26-4.5% -4.8% 55k -6.% 25-5.5% -5.4% -2.6% 55k -6.2% 24-5.9% -5.9% -2.6% 55k -6.3% All data valid as of 5 th March 219 Page 2

BULKER VALUES THROUGH FEBRUARY 219 Capesize Panamax Values have softened. No sales have taken place this month. Values have softened. 6 sales have taken place this month. Dione (75,2 DWT, Jan 21, Hyundai Samho) and Danae (75,1 DWT, Jan 21, Hyundai Samho) sold to undisclosed buyers for USD 7.2 mil each, VV value USD 7.1 mil each. SBI Samba (84,9 DWT, Jan 215, Imabari) sold for USD 21.4 mil, VV value USD 23.57 mil Inc 5-year BBB at USD 6,85 pd. Pontonikis (74,4 DWT, Jan 22, Daewoo) sold for USD 6.8 mil, VV value USD 7.72 mil. Supramax Values have softened. 5 sales have taken place this month. Alster Bay (55,4 DWT, Mar 28, Kawasaki) sold for USD 12. mil, VV value USD 12.47 mil. Navios Meridian (5,3 DWT, Aug 22, Navios Meridian) sold for USD 6.8 mil, VV value USD 7.76 mil. Handy Values have softened. 1 sale has taken place this month. Nord Mumbai (36,6 DWT, Jul 212, Hyundai Vinashin) sold for USD 12.5 mil, VV value USD 14. mil. All data valid as of 5 th March 219 Page 3

TANKER VALUES THROUGH FEBRUARY 219 TANKERS Values have remained stable across all tonnages with the exception of older Suezmax tonnage that has softened. The surprising rebound in VLCC rates has halted any significant decline in Tanker asset values. This table shows the monthly % change in value from 1 st to the 28 th February 219 for Tanker vessels, by year of build. YEAR OF BUILD VLCC SUEZ AFRA LR1 MR DWT DWT DWT DWT DWT 219 +.5% 3 1 -.3% -.3% +.4% 218 +.4% 3 1 -.3% -.3% +.3% 217 +.4% 3 1 -.4% -.4% +.3% 216 +.3% 3 -.9% 1 -.4% -.4% +.2% 215 +.3% 3 -.9% 1 +.2% 214 +.2% 3-1.% 1 213 +.2% 3-1.1% 1 212 31k -1.1% 1 211 31k -1.2% 1 21 31k -1.2% 1 29 31k 1 28 31k 1 27 -.% 31k 1 26 -.1% 31k 1 -.9% 7k -.2% 45k 25 -.1% 31k 1 7k -.2% 45k 24 -.1% 35k 155k -.9% 15k 7k -.2% 45k All data valid as of 5 th March 219 Page 4

TANKER VALUES THROUGH FEBRUARY 219 VLCC Values have firmed in all tonnages. 1 sale has been confirmed this month VL Sakura (298,6 DWT, Mar 21, Hitachi) sold to Far Eastern buyers for USD 24. mil. Suezmax Values have softened in older tonnage. 1 sale has been confirmed this month. Eurohope (159,5 DWT, Apr 1999, Daewoo) was sold to Middle Eastern buyers for USD 12.85 mil, VV value USD 8.61 mil. Aframax Values remain stable No sales have been confirmed last month. LR1 Values have firmed in all tonnages. 3 sales have been confirmed this month. Kings Road (75, DWT, Oct 212, STX Offshore) and Abbey Road (74,9 DWT, Apr 213, STX Offshore) sold to Pakistan National Shipping Corp in an en bloc deal for USD 6.6 mil, VV en bloc value USD 51.69 mil. MR Values remain stable. 13 sales have been confirmed this month. MR2s Leopard Moon and Leopard Sun (5, DWT, May Sep 213, SPP) sold to Unicorn Shipping in an en bloc deal for USD 54. mil each, VV en bloc value USD 53.69 mil. MR2 High Strength (46,6 DWT, Oct 29, Naikai Setoda) sold for USD 16.4 mil, VV value USD 15.79 mil. MR2 Queen Express (46, DWT, Jul 29, Shin Kurushima Ujina) sold for USD 16.2 mil, VV value USD 15.37 mil. Ardmore Seamaster (45,8 DWT, Sep 24, Shin Kurushima Ujina) sold to Kunlun Holdings for USD 9.7 mil, VV value USD 9.25 mil. All data valid as of 5 th March 219 Page 5

CONTAINER VALUES THROUGH FEBRUARY 219 CONTAINERS Post Panamax and Panamax values have softened. Economic headwinds continue to weigh on the Container markets as liners maintain a conservative attitude towards taking in tonnage. This table shows the monthly % change in value from 1 st to the 28 th February 219 for Container vessels, by year of build. YEAR OF BUILD POST PMAX PMAX HANDY FMAX TEU TEU TEU TEU 219 -.1% -.4% 218 -.1% -.4% 217 -.2% 216-1.5% -.2% 215-1.5% -1.5% -.2% 214-1.6% -1.6% -.3% 213-1.7% -1.7% -.3% 212-1.8% -1.8% -.4% 211-1.8% -1.9% -.4% 21-1.9% -1.9% 29-2.% -2.% -.9% 28-2.1% -2.1% -1.% 27-2.2% -.% -.9% 26-2.2% -.1% -.9% 25-1.9% -.2% -1.% 24 -.% -.3% -1.1% All data valid as of 5 th March 219 Page 6

CONTAINER VALUES THROUGH FEBRUARY 219 Post PMax Modern and mid age Post Panamax values have softened. No sales have been confirmed this month. Panamax Modern and mid age Panamax values have softened. 1 sale has been confirmed this month. Herma P (5,4 TEU, Sep 26, Hyundai HI) sold to Cyprus Sea Lines for an undisclosed price, VV value USD 1.4 mil Bank Sale. Handy Values have remained stable. No sales have been confirmed this month. Feedermax Values have remained stable. No sales have been confirmed this month. All data valid as of 5 th March 219 Page 7

LPG VALUES THROUGH FEBRUARY 219 LPG LPG values have softened across all ages with the exception of MGC s which have firmed for older tonnage. LPG values have softened across all ages with the exception of MGC s which have firmed for older tonnage. Ton mile demand for MGC carriers is outpacing supply growth, supporting asset values. This table shows the monthly % change in value from 1 st to the 28 th February 219 for LPG vessels, by year of build. YEAR OF BUILD VLGC LGC MGC SP FR LARGE SP FR SMALL FULL PRESS LEG CBM CBM CBM CBM CBM CBM CBM 219 84k -1.9% -1.1% 3 12k 218 84k -1.9% -1.1% 3 12k 217 84k -2.% -1.2% 3 12k 216 84k -2.% 3 12k 215-2.6% 84k -2.1% -.3% 3 12k 214-2.7% 84k -2.2% +.2% 3 12k 213-2.8% 82k +.8% 12k 212-2.9% 82k +1.2% 9k 211-3.% 82k +1.7% 9k 21-3.1% 82k -2.7% +2.1% 9k 29-3.3% 82k -2.8% +2.5% 9k 28-3.5% 82k -3.% +3.% 9k 27-3.7% 82k -3.2% +3.5% 26-3.8% 82k -3.3% +3.3% 25-3.9% 7-3.5% +3.1% 24-4.1% 7-3.7% +2.9% -2.6% All data valid as of 5 th March 219 Page 8

LPG VALUES THROUGH FEBRUARY 219 VLGC Values have softened in all tonnages. No sales have been reported this month. LGC MGC SP FR Fully Pressurised LEG Values have softened in all tonnages. No sales have been reported this month. Values firmed in mid age and older tonnages. No sales have been confirmed this month. Values have firmed in older tonnages. No sales have been confirmed this month. Values softened in all tonnages. No sales have been confirmed this month. Values softened in all tonnages. No sales have been reported this month. All data valid as of 5 th March 219 Page 9

OFFSHORE VALUES THROUGH FEBRUARY 219 OSV Values have remained stable at historical lows across all PSV and AHTS/AHT sectors. Offshore asset values firmed as the offshore market continues to attract opportunistic buyers. Deal velocity has been trending upwards. This table shows the monthly % change in value from 1 st to the 28 th February 219 for OSV vessels, by year of build. YEAR OF BUILD LARGE PSV MEDIUM PSV SMALL PSV SUPER AHTS MEDIUM AHTS SMALL AHTS DWT DWT DWT BHP BHP BHP 219 +2.8% +3.8% 3.6k +2.5% 1.7k +3.% 8.2k +3.% 5.5k 218 +2.5% +3.4% 3.6k +2.3% 1.7k +2.7% 8.2k +2.7% 5.5k 217 +2.% +2.9% 3.6k +2.7% 1.7k +1.8% +2.3% +2.3% 216 +1.7% +2.5% 3.6k +2.4% 1.7k 215 +1.4% +2.2% 3.6k +3.% 1.7k +1.8% +1.4% +1.5% 214 +1.2% +2.3% 3.4k +2.9% 1.7k +1.8% +1.% +1.% 213 +1.4% 5.1k +2.5% +2.9% 1.7k +.8% +1.% 212 +2.% 4. +2.6% +3.1% 1.7k +.7% +.9% 211 +2.2% 4. +2.7% +3.3% 1.6k +.5% +.6% 5.1k 21 +2.8% 4. +2.8% +3.3% 1.6k +.7% +.9% 5.1k 29 +2.8% 4. +2.8% +3.4% 1.6k +2.1% +1.% 5.1k 28 +2.9% 4. +2.9% +3.5% 1.6k +2.1% 5.1k 27 +3.% 4. +2.9% +3.6% 1.6k +2.2% 5.1k 26 +3.1% 4. +3.% +3.6% 1.6k +2.3% 5k 25 +3.2% 4. +3.2% +3.3% 1.6k +2.4% 5k 24 +3.3% 4. +3.6% +3.4% 1.6k +2.3% 5k All data valid as of 5 th March 219 Page 1

OFFSHORE VALUES THROUGH FEBRUARY 219 PSV & AHTS/AHT 3 PSVs and 3 AHTS were sold this month in an en bloc deal to China Sunrise Group from Bankrupt Toisa Offshore. PSVs Toisa Solitaire, Toisa Sonata Toisa Serenade (5,3 DWT, Sep 28-Mar 29, Wuchang Shipbuilding) and AHTS Toisa Dauntless, Toisa Daring and Toisa Defiant (12,24 BHP, Aug 26-Mar 27, Wuchuang Shipbuilding) sold for an en bloc price of USD 19.3 mil, VV en bloc value USD 22.91 mil. All vessels were laid up and SS/DD due. All data valid as of 5 th March 219 Page 11

2 ND HAND S&P ACTIVITY FEBRUARY 219 S&P $ Value of 2 nd hand sales in February 219 vs February 218. 6 5 $536 $495 Feb 219 Feb 218 Value (M USD) 4 3 $259 $213 2 $138 1 $ $ $22 $19 $4 Bulker Tanker Container Gas OSV Total spending is down c.72% compared to February 218. Bulker spending has decreased by c.74% compared to February 218. Tanker spending has decreased by c.57% compared to February 218. 1 Container sale was reported in February 219 for an undisclosed price. No Gas sales were reported in February 219. OSV spending has increased c.36% compared to February 218. S&P No. Number of 2 nd hand sales in February 219 vs February 218. 4 35 38 31 Feb 219 Feb 218 3 No. Vessels 25 2 15 1 5 22 17 14 14 8 3 1 Bulker Tanker Container Gas OSV Total number of sales is down by c.63% compared to February 218. Number of Bulker sales shows a decrease of c.63% from February 218. Number of Tanker sales has dropped c.23% from February 218. 1 Container sale was reported in February 219, down c.97% from February 218. No Gas sales were reported in February 219. Number of OSV sales are down c.43% from February 218. All data valid as of 5 th March 219 Page 12

NEWBUILDING ACTIVITY FEBRUARY 219 Newbuilding No. 4 35 Number of newbuilding orders placed in February 219 vs February 218. 35 Feb 219 Feb 218 No. New Buildings 3 25 2 15 1 5 26 17 14 12 9 5 3 1 Bulker Tanker Container Gas OSV Total number of newbuild orders have dropped c.46% in February 219 compared to 218. Sinokor ordered 4 MR2 Tankers (5, DWT, 221, Hyundai Mipo) for an en bloc price of USD 164. mil. Shoei Kisen ordered 4 New Panamax Containers (11,85 TEU, 221, Imabari) for an en bloc price of USD 44. mil. Maran Gas Maritime ordered 2 Large LNG carriers (169,54 CBM, 221, Daewoo) for USD 38. mil. All data valid as of 5 th March 219 Page 13

DEMOLITION ACTIVITY FEBRUARY 219 Demolition No. 25 2 Number of demolition sales per ship type in February 219 vs February 218. 22 Feb 219 Feb 218 No. Demo Sales 15 1 5 6 4 4 8 7 1 2 2 13 Bulker Tanker Container Gas OSV Demolition deals are down 56% for February 219 compared to February 218. Tanker demolition sales have dropped a notable amount compared to last February where all time highs were seen. Only 1 Tanker demolitions have occurred year to date. Bulker sales are on the rise, with Capesize being the most popular. 2/3rds of the demolition deals this month have been Capesizes. Demolition Trend 5 Demolition price trend for Tanker Price India from 1 st February 218 28 th February 219. Tanker scrap price 45 USD/LDT 4 35 3 25 Apr 218 Jul 218 Oct 218 Jan 219 The stability in the market continued throughout this month, with little movement in the price trend for the Indian Sub Continent. Bangladeshi buyers are beginning to fill up their yards and if the prices are to stay up, India and Pakistan will need to increase their offers. All data valid as of 5 th March 219 Page 14

CHARTER RATES Dry 3, 25, Baltic Exchange daily market spot rates for Capesize, Panamax, Supramax and Handy Bulkers from 1 st February 218-28 th February 219. Source: Baltic Exchange Capesize Panamax Supramax Handy USD per day 2, 15, 1, 5, Apr 218 Jul 218 Oct 218 Jan 219 The Capesize market has continued to suffer from fewer iron ore cargoes due to the ongoing production issues in Brazil. Macroeconomic concerns are stifling significant recovery in the drybulk space. Panamax, Supramax and Handysize rates have firmed throughout February, with Supramax values recovering well. Wet 6, Baltic Exchange daily market spot rates for VLCC, Suezmax and Aframax Tankers from 1 st February 218-28 th February 219. Source: Baltic Exchange VLCC Suezmax Aframax 5, USD per day 4, 3, 2, 1, -1, Apr 218 Jul 218 Oct 218 Jan 219 VLCC markets have surprised to the upside as the length of ballast legs has increased as more owners have preferred to reposition the Gulf of Mexico, Brazil, or west Africa. New tonnage continues to enter the market, which may cap rate gains. Smaller crude tankers are seeing mixed sentiment. Aframax returns in some basins have been higher, due in part to delays, dragging up average returns. The Suezmax market steadied at the end of the month, but haven t seen the same vibrancy as other segments. All data valid as of 5 th March 219 Page 15

CHARTER RATES Container 16, 14, Contex daily time charter rates for Panamax, Handysize and Feedermax Containers from 1 st February 218-28 th February 219. Source: Contex, VHSS Panamax Handy Feedermax 12, USD per day 1, 8, 6, 4, 2, Apr 218 Jul 218 Oct 218 Jan 219 Container time charter hire rates remain low but appear to have hit a floor level and per day earnings have ticked upwards. LPG Fearnleys weekly market spot rates for VLGC, MGC and LEG Gas ships from 1 st February 218-28 th February 219. Source: Fearnley's 1,, 9, VLGC MGC LEG 8, USD per month 7, 6, 5, 4, 3, 2, 1, Apr 218 Jul 218 Oct 218 Jan 219 VLGC rates have moved upward, but remain soft relative to their smaller cousins. MEG rates have softened slightly during February. Rates remained stable for LEG vessels throughout February 219. All data valid as of 5 th March 219 Page 16

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