TELEPHONE: ONE EXECUTIVE DRIVE TELEFAX: 201-585-9999 FORT LEE, NEW JERSEY 07024 201-585-9998 ships@compassmar.com WEEKLY MARKET REPORT June 22nd, 2007 / Week 25 The highlight of the week was the Marine Money conference in New York where shipping euphoria was once again on display to the financial world with over 800 delegates (up 150 from last year's record attendance) from more than 30 countries representing the world's leading shipowners and financiers. This year had a huge increase in delegates representing hedge funds and private equity investors who are keener than ever to supply capital to shipping. The BILLION dollar deal is now commonplace in shipping and the IPO train/movement of ship ownership from private to public will continue to surge. The effect on Sale and Purchase will be as per our comments on the Compass June 8 report: ship second hand and newbuilding prices will not be falling for a long, long time. In the past three or four years shipping has arrived on the radar screen but still is a small blip - the total market cap of all of the publicly traded shipping companies is still smaller than the market cap of a company like General Motors or Exxon so there is plenty of room for expansion. In 2003 there were only 3-4 shipping analysts on Wall Street and today there are more than 15! Dry cargo freight rates turned around this week with the Cape index surging close to 1,500 points in the past 3 days alone! Late 70's and early 80's built handysize bulkers are in hot demand and obtaining strong prices as there are very few modern sales candidates. TANKERS: STEMNITSA 147,092/00 - SAMSUNG HI - MAN B&W 20,940 - COILED - SBT - IGS - COW - DH Sold for $88.5-89mill. to Indian buyer (Great Eastern). SPP 1010 / FR8 SPIRIT 50,100/07/06 - SPP - SUL 12,940 - COATED - COILED - DH - IMO 3 Sold for $105 mill. en bloc to Greek buyer. Sale includes a 5-year t/c to Glencore at $19,500/day. TRITON 7,261/78 - KURINOURA - HAN 4,499 - COATED - COILED - DB - IMO 2/3 Sold for $2.1 mill. to Nigerian buyer. BULKERS: CMB GUILIA 76,000/07 - JIANGNAN - B&W 13,868-7HH - 225.00M LOA Sold for $66 mill. to Greek buyer. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 1
SPAR VEGA 73,350/95 - HHI - B&W 13,889-7HH - 225.00M LOA - C4X25T Sold for $45 mill. to Greek buyer basis delivery October 2007. LEDA 69,235/87 - IMABARI MARUGAME - SUL 8,640-7HH - 226.35M LOA - 13,847 LDT Sold for $27 mill. to S. Korean buyer. T COURAGE 64,780/83 - NAMURA IMARI - MAN -V 12,660-7HH - 224.98M LOA - 11,349 LDT Sold for $15.3 mill. to Greek buyer. EVANGELIA 64,471/82 - IHI - SUL 14,400-7HH - 224.95M LOA - 11,316 LDT Sold for $14.5 mill. to undisclosed buyer. IDC 3 43,656/94 - TSUNEISHI - B&W 9,680-5HH - C 4X25T Sold for $38.3 mill. to Greek buyer (Global Ocean Carriers). Sold basis charter free delivery 10/2007. PAKRAC 37,835/78 - IHI - SUL 9,900-5HH - C 3X10T - 7,756 LDT Sold for $5.75 mill. to undisclosed buyer. CONFIDENCE 29,491/79 - KURUSHIMA - MAN 11,400-4HH - D 4X25T - 6,047 LDT Sold for $5.95 mill. to Taiwanese buyer. CLIPPER LIS 27,609/96 - GUANGZHOU - B&W 8,250-5HH - C 4X30T Sold for $24.5 mill. to undisclosed buyer. Delivery 11/2007, new cranes included. AONOBLE 27,308/94 - MITSUBISHI SHIM. - B&W 7,300-5HH - C 4X30T Sold for $27.5 mill. to S. Korean buyer. Sale includes t/c until 08/2007 at $16,000/day. CONTAINERS: CHRISTIANE SCHULTE 34,717/01 HHI - SUL 29,300-2,556 TEU - 21.9KN - C 4X45T Sold for $46 mill. to undisclosed buyer. Sale includes 60 months t/c at $19,000/day. ROROS: ARIAKE MARU NO 12 2,012/87 - HONDA SAIKI - AKA 4,900-400 LM Sold for $4.8 mill. to Greek buyer. PASSENGERS: MARCO POLO 5,180/65 - GERMANY - SUL 21,000 - PASS 922 Sold for $30 mill. to Greek buyer (Nikos Tragakis). COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 2
NEW SHIPS FOR SALE: TANKERS: SITEAM PANTHER 46,100/85 - BELGIUM - SUL 11,150 - COATED - COILED - SBT - IGS - COW - DH - IMO 3 Loading Point Comfort 24-25th June, loading Freeport 26-27th June, discharging Vila de Conde 7-8th July, discharging Conakry 14-15th July. SITEAM TIGER 46,100/85 - BELGIUM - SUL 11,150 - COATED - COILED - SBT - IGS - COW - DH - IMO 3 Loading Jubail 19/21st June, discharging Malta 05/07th July, discharging Rotterdam 15/18th July. SITEAM LEOPARD 46,100/85 - BELGIUM - SUL 11,150 - COATED - COILED - SBT - IGS - COW - DH - IMO 3 Discharging Rosarito (Mexico) 01/03rd July. BULKERS: BELNOR 47,369/96 - OSHIMA - B&W 11,640-5HH - C 4X25T - GRABS Vessel enroute to Finland from Argentina with pulping logs to discharge. Eta around 9th July for some days discharge. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 3
NEWBUILDINGS NEWBUILDING STATISTICS TYPE OF SHIP 2007 2008 2009 2010 2011 2012 * TOTAL ORDERBOOK ULCC/VLCC 15 37 69 41 10 3 175 (-1) SUEZMAX 15 20 56 43 2 136 ( - ) AFRAMAX 28 75 107 70 3 283 (+1) PANAMAX 26 41 43 14 124 (-1) MR 103 197 192 109 12 613 ( - ) 0-35,000 DWT 164 168 123 42 2 499 (+5) CAPESIZE 31 53 83 145 51 12 375 (+1) 80-100,000 DWT 21 37 49 52 21 6 186 (-4) PANAMAX 38 57 38 39 9 3 184 (+14) SUPRAMAX 71 121 177 146 25 1 541 (+4) HANDYSIZE 71 84 132 65 17 369 ( - ) * Includes ALL vessels on order NEWBUILDING CONTRACTS No. Size Type Yard Delivery Price (mill) Owners 1 x 85,000 dwt Tank Jiangsu 2010 $61.5 Pertamina 1 x 50,000 dwt Prod Bach Dang 2009 Vinalines 2+2 13,000 dwt Prod 21 st Century 2010 Primera 2 x 181,000 dwt Bulk S. Korea 2009 $85 Korea Line 2 x 180,000 dwt Bulk H. Samho 2009/10 Lauritzen 2 x 180,000 dwt Bulk Daewo 2009/10 $81 Neda 2 x 171,000 dwt Bulk S. Korea 2010 Aktif 4 x 114,500 dwt Bulk S. Chengxi 2010/11 Anangel 2 x 83,000 dwt Bulk Sanoyas 2011 Ya-Sa 3 x 76,000 dwt Bulk Jiangnan 2009 $47.5 Scandinavia Ship 4 x 75,000 dwt Bulk Ningbo 2010 $40 C. Reederei 2 x 57,000 dwt Bulk Hantong 2009 Oltman 2 x 57,000 dwt Bulk Cosco Zhoushan 2010 $37.5 Great Eastern Shpg. 2 x 57,000 dwt Bulk Cosco Zhoushan 2010 $37.5 Geden 3 x 57,000 dwt Bulk Cosco Zhoushan 2010 $37.5 Portline 3 x 57,000 dwt Bulk Cosco Zhoushan 2009/1 $37.5 Ince 3 x 32,000 dwt Bulk TK Heavy Industries 2009 $32 Everlast Shpg. 6 x 8,500 teu Cont Daewoo 2010/11 $128 CMA CGM 3 x 1,740 teu Cont Guangzhou 2010 $34 Ship Finance Int. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 4
KEY INDICATORS INDICES RATE OF EXCHANGE BALTIC EXCHANGE RATES THIS WEEK LAST WEEK CHANGE $ / Won: 926.55 Baltic Dry Index 5922 5258 +664 $ / Nok: 5.9464 Baltic Capesize 7985 6356 +1629 $ / Euro: 0.7444 Baltic Panamax 5998 5355 +643 $ / Stlg: 0.5009 Baltic Supramax 3998 4016-18 $ / Yen: 123.03 Baltic Handysize 1881 1907-26 LIBOR (3-mos) / 5.36% Brent Crude $69.82 $70.67 -$0.85 BALTIC TANKER INDICES BALTIC DRY INDICES 3,500 3,000 2,500 2,000 BDTI INDEX BCTI INDEX 11,000 9,000 7,000 BDI BCI BPI BSI 1,500 1,000 500 5,000 3,000 0 1,000 02-Jan-04 02-Jun-04 02-Nov-04 02-Apr-05 02-Sep-05 02-Feb-06 02-Jul-06 02-Dec-06 02-May-07 01-Jun-04 01-Oct-04 01-Feb-05 01-Jun-05 01-Oct-05 01-Feb-06 01-Jun-06 01-Oct-06 01-Feb-07 01-Jun-07 ESTIMATED VALUES TANKERS NB PROMPT 12 MONTH 5 YEARS 10 YEARS 20 YEARS RESALE T/C VLCC 300,000 dwt $130.0m $150.0m $127.0m $105m (DH) $30.0m (SH) $60,000 PD Suezmax 150,000 dwt $81.0m $100.0m $91.0m $75.0m (DH) $22.0m $44,000 PD Aframax 105,000 dwt $66.0m $77.0m $67.0m $56.0m (DH) $15.0m (SH) $33,000 PD Panamax 70,000 dwt $56.0m $64.0m $55.0m $46.0m (DH) $12.0m $29,000 PD Product 47,000 dwt $47.0m $55.0m $50.0m $42.0m (DH) $12.0m $25,000 PD BULK CARRIERS Capesize 170,000 dwt $82.0m $125.0m $102.0m $83.0m $35.0m $85,000 PD Panamax 74,000 dwt $42.0m $67.0m $58.0m $49.0m $26.0m $44,000 PD Supramax 52,000 dwt $39.0m $61.0m $55.0m $42.0m $23.0m $40,000 PD BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $330.00 $353.50 $340.00 $356.50 180cst: $349.00 $366.00 $362.50 $365.50 MDO: $555.00 $642.50 N/A $607.50 COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 5
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2007 THIS DATE 2006 2006 TOTAL 2005 TOTAL ULCC/VLCC 0 0 0 1 SUEZMAX 1 0 0 2 AFRAMAX 5 9 14 15 PANAMAX TANKER 3 0 7 15 CAPE/COMBO (100,000 dwt +) 0 3 3 2 PANAMAX BULKER *2 (*1 pmax+1 post pmax) 11 13 5 ESTIMATED DEMOLITION PRICES LOCATION TANKERS 6-10,000 LT TANKERS 15-20,000 LT BULK CARRIERS CHINA 295 300 260 SUB-CONTINENT 515 525 455 DEMOLITION: PAKISTAN M/T KIRUK 35,338/72-8,770 LDT - USD 400/LDT (as is Dubai) COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 6
COMPASS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER AOH Terry Chance 201-463-3834 908-232-5574 Bart Lawrence 201-463-3835 914-997-7599 Tom Linter 201-463-3826 973-949-4218 Tom O Toole 845-597-4150 845-783-9092 Tom Roberts 201-463-3832 914-242-5436 Sophus Schanche 201-463-3831 973-283-2848 PROJECTS & FINANCE Basil Karatzas 201-463-3828 713-545-5990 ADMINISTRATION Joseph Kaufmann 201-463-3833 845-628-0469 Very Truly Yours, COMPASS MARITIME SERVICES, LLC The information contained in this report has been obtained from various market sources. COMPASS MARITIME SERVICES (CMS) believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. CMS will not be held responsible for any action or failure to take action upon reliance on information contained in this report. 2007 COMPASS MARITIME SERVICES, LLC All Rights Reserved COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 7