LY MARKET REPORT October 8th, 2010 / Week 40 Surprisingly, even though China is still on holiday, the spot capesize rates have shot up to US$ 40,000 per day and as a result charterers are coming out for period business of short duration to offset the high spot rates. The capesize market is dominated by China and many thought that during this holiday period the market would be negatively affected. But this was not to be. The BDI ended 10% higher pushed by the BCI which leaped nearly 20% ending the week above 4,000 points. The ongoing export bans of wheat from Russia and iron ore from Karnataka India provide continued support to the spot market which is mostly driven due to the increased ton mile demand. The Middle East and Europe are large grain import regions and with Russian exports down to zero they have to obtain their imports from further afield. This will counter balance the influx of newbuildings in the short term probably for the remainder of the 4 th quarter. Activity has increased this week and once again we are seeing more purchase enquiries. Most enquiries are for modern bulkers but surprisingly we are also seeing a few for tankers. The sale of the week also belongs to a tanker, that of the coated aframax MORNING GLORY III (98,743 Dwt / blt 1996 Japan) which was sold for US$ 14 mill to Greeks - we consider this a very good deal for the buyers. Prices for dry bulk tonnage are maintained. There are many prospective buyers but few available candidates, especially for handymax and panamax bulkers built in the mid/late 90's and early 2000's. The panamax bulker KONMAX (72,270 Dwt / Blt 2000 Japan) has been sold to Far Eastern buyers for US$ 31.75 mill. The HAONING GLORY (45,208 Dwt / Blt 1994 Japan) has been sold AT AUCTION for US$ 21.70 mill, a price which we consider very firm given the fact that usually auctioned ships obtain lower than market prices. Other dry sales are dominated by older handy/handymax vessels built in the early 80's. The demolition market is unchanged. Bangladesh is still absent and Pakistan is struggling with its own internal problems. India continues to be the dominant force whilst China is selectively taking in bulkers. WeberSeas, Weekly Market Report Page 1 of 10
TANKERS HYUNDAI STAR 281,119/95 - HYUNDAI - SUL 39,060 - IGS - SBT - COW - DH - SS/DD 12/2010 Sold for $20 mill. to Korean buyers for conversion. MORNING GLORY III 98,743/96 - ONOMICHI - B&W 15,301 - COILED - COATED - IGS - SBT - COW DH - SS/DD 03/2011 Sold for $14 mill. to Greek buyers. GOLDEN GEORGIA 16,337/96 - KURINOURA - B&W 7,200 - COILED - ST. ST. COATING - IGS - DH SS/DD 10/2011 Sold for $6 mill. to Far Eastern buyers. BULKERS ATA 194,226/85 - HITACHI - B&W 16,501-9HH - SS 12/2012, DD 12/2010 Sold for $12.2 mill. to Ukrainian buyers (Vista Shipping). KONMAX 72,270/00 - IMABARI - B&W 13,297-7HH - SS 09/2015, DD 08/2013 Sold for $31.75 mill. to undisclosed buyers. HAONING GLORY 45,208/94 - KANASASHI - MIT 10,801-5HH - C 4X25T - SS 05/2014, DD 06/2012 Sold at an auction for $21.7 mill. to undisclosed buyers. (Old sale). ASSIMINA 41,096/84 - OSHIMA - SUL 8,670-5HH - C 4X25T - SS 04/2014, DD 07/2012 Sold for $9.2 mill. to Indonesian buyers. ALBATROSS 40,507/81 - MITSUI - BW 13,100-5HH - C 5X25T - SS 03/2014, DD 01/2013 Sold for $5.25 mill. to undisclosed buyers SUPER STAR 34,250/09 - SHINAN - B&W 11,640-5HH - C 4X30T Sold for $32.75 mill. to undisclosed buyers. PANTANASSA 31,774/83 - HAKODATE - B&W 10,500-5HH - C 4X25T - SS 06/2013, DD 07/2011 Sold for $5.8 mill. to Chinese buyers. FRIENDSHIP 29,135/84 - IMABARI - SUL 8,500-4HH - C 4X25T - SS 05/2013, DD 06/2011 Sold for $6.25 mill. to Greek buyers. SEVEN SEAS 24,290/96 - HAKODATE - MIT 7,200-4HH - C 4X30.5T - SS/DD 04/2011 Sold for $14 mill. to Turkish buyers. KASTOR P 22,713/83 - MITSUBISHI - MIT 7,001-4HH - C 3X25T - SS/DD 11/2012 Sold for $5 mill. to undisclosed buyers. MPP/TWEENDECKERS THOR CONFIDENCE 24,900/83 - GERMANY - SUL 9,249-6HO 8HA - C 5X25T - 1,316 TEU - SS 06/2013, DD 01/2011 Sold for $4 mill. to U.A.E. based buyers (DTA). WeberSeas, Weekly Market Report Page 2 of 10
CONTAINERS SINAR BONTANG 14,967/02 - HAKATA - B&W 13,580 - C 2X40T - 1,060 TEU Sold for $13.8 mill. to undisclosed buyers. FRESH FOR SALE TANKERS BALTIC 97,046/93 - HYUNDAI - B&W 14,162 - COILED - COATED - IGS - SBT - COW - DH Vessel currently inspectable Singapore area. VEGA SPIRIT 22,820/01 - KITANIHON - MIT 9,600 - COILED - COATED - IGS - SBT - COW - DH Vessel will be loading in Santos on 19th October. BULKERS EVRIALOS 68,407/87 - NAMURA - SUL 10,201-7HH Vessel currently in Dekhelia, Egypt where inspectable. BULK NAVIGATOR 53,565/06 - CHENGXI - B&W 12,889-5HH - C 4X36T Vessel en route Singapore for orders where ETA 10th October. CATCH 22 29,142/09 - NANTONG - B&W 7,791-5HH - C 4X30T Vessel inspectable in either Santos or Paranagua where ETA 20th October. ODIN PACIFIC 28,381/95 - IMABARI - B&W 7,800-5HH - C 4X30T Vessel currently inspectable in Mersin. 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 12 6 10 6 SUEZMAX 7 4 5 1 AFRAMAX 9 7 12 7 PANAMAX TANKER 9 6 8 9 CAPE/COMBO (100,000 dwt +) 12 5 5 8 PANAMAX/KAMSARMAX BULKER 2 18 21 19 LOCATION TANKERS BULK CARRIERS CHINA 380 405 INDIA 475 440 BANGLADESH N/A N/A PAKISTAN 445 405 DEMOLITION: INDIA M/V OPA Cont MSC SICILY M/V CARIBBEAN CARRIER I (cement carrier) M/V IREEX M/T ORANGE STAR (including 230 tonnes od stainless steel on board) M/T ALF ARMAR (including 50 tonnes od stainless steel on board) Ro-Ro VILJANDI 56,068/84-16,284 LDT - USD 480/LDT 24,355/78-9,089 LDT - USD 425/LDT 23,783/62-8,063 LDT - USD 440/LDT 14,982/78-5,615 LDT - USD 475/LDT 11,092/75-7,128 LDT - USD 485/LDT 6,764/85-2,600 LDT - USD 475/LDT 4,600/78-6,015 LDT - USD 470/LDT CHINA M/V SWIFT FORTUNE (with 1,600 IFO ROB) M/V GRAND FORTUNE 132,049/82-17,685 LDT - USD 460/LDT 21,950/71-6,154 LDT - USD 370/LDT TURKEY Ro-Ro EUROFERRYS ATLANTICA 2,362/73-6,100 LDT - USD 290/LDT - as is Spain WeberSeas, Weekly Market Report Page 4 of 10
TYPE OF SHIP NEWBUILDING STATISTICS 2010 2011 2012 2013 2014 * TOTAL ORDERBOOK ULCC/VLCC 23 71 56 32 9 191 SUEZMAX 23 55 51 19 148 AFRAMAX 26 69 44 10 3 1 PANAMAX 15 41 14 14 2 86 MR 44 123 76 16 259 10-35,000 DWT 78 110 42 13 243 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT 86 329 162 41 5 623 53 254 213 44 10 574 PANAMAX 39 99 62 20 220 SUPRAMAX / HANDYMAX 147 395 223 45 810 HANDYSIZE 138 324 1 31 7 6 * Includes ALL vessels on order NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 2 206,000 dwt Bulker SWS 2013 n/a 1 175,000 dwt Bulker 2 82,000 dwt Bulker Mitsubishi H.I. Taizhou Catic Classic Maritime 2012 n/a N.Y.K. 2012 $34 Rudolf Oetker ironsandslurry bulker option for 2 more 4 320,000 dwt Tanker Hyundai H.I. 2013 n/a S.K. Shipping WeberSeas, Weekly Market Report Page 5 of 10
BALTIC DRY EX RATES THIS LAST % Baltic Dry Index 2696 24 244 9,95% Baltic Capesize 4076 3419 657 19,22% Baltic Panamax 2403 2412-9 -0,37% Baltic Supramax 1894 1843 51 2,77% Baltic Handysize 1033 1038-5 -0,48% 14000 12000 10000 8000 6000 4000 2000 0 4-Jan-05 4-Apr-05 4-Jul-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-Apr-08 BDI 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 25000 20000 15000 10000 5000 0 4-Jan-05 4-Apr-05 4-Jul-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 BCI 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 14000 12000 10000 8000 6000 4000 2000 0 04-Jan-05 04-Apr-05 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 04-Apr-08 04-Jul-08 04-Oct-08 04-Jan-09 04-Apr-09 04-Jul-09 04-Oct-09 04-Jan-10 04-Apr-10 04-Jul-10 04-Oct-10 BPI WeberSeas, Weekly Market Report Page 6 of 10
BALTIC WET EX RATES THIS LAST % Baltic Clean Tanker 620 622-2 -0,32% Baltic Dirty Tanker 757 684 73 10,67% 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 BDTI 2-Apr-08 6-Jun-08 15-Aug-08 20-Oct-08 6-Jan-09 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 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 WeberSeas, Weekly Market Report Page 7 of 10
MAJOR CAPITAL MARKETS INDEX THIS LAST % S HIGH S LOW DOW JONES 10.967,65 10.835,28 132,37 1,22% 11.309,00 9.596,04 NASDAQ 2.383,67 2.368,62 15,05 0,64% 2.535,28 2.024,27 AIM 798,10 782,20 15,90 2,03% 799,60 639,40 NIKKEI 9.684,81 9.369,35 315,46 3,37% 11.408,20 8.796,45 PUBLIC COMPANIES DRY-CARGO SECTOR NAME SYMBOL THIS LAST % HIGH LOW DIANA DSX 13,28 12,70 0,58 4,57% 18,24 10,75 DRYSHIPS DRYS 4,59 4,81-0,22-4,57% 7,62 3,28 EAGLE BULK EGLE 5,32 5,22 0,10 1,92% 6,75 3,91 EXCEL MARITIME EXM 5,64 5,62 0,02 0,36% 8,40 4,59 GENCO GNK 16,48 15,94 0,54 3,39% 29,20 14,20 NAVIOS HOLDINGS NM 5,83 5,87-0,04-0,68% 7,55 4,38 TBS INTERNATIONAL TBSI 5,06 5,55-0,49-8,83% 9,97 5,03 TANKER/ENERGY SECTOR NAME SYMBOL THIS LAST % HIGH LOW CAPITAL PRODUCT PARTNERS CPLP 8,55 8,27 0,28 3,39% 10,49 5,31 GENERAL MARITIME GMR 4, 4,91-0,39-7,94% 8,95 4,26 OMEGA NAVIGATION ONAV 1,26 1,19 0,07 5,88% 4,04 1,14 STEALTHGAS GASS 4,56 4,35 0,21 4,83% 7,64 3,93 TEN TNP 13,47 13,32 0,15 1,13% 18,34 12,42 NAME SYMBOL CONTAINER SECTOR THIS LAST % HIGH LOW DANAOS DAC 4,45 4,43 0,02 0,45% 5,25 3,50 * Prices reflect Thursday s closing values. Prices in US$ WeberSeas, Weekly Market Report Page 8 of 10
RATES OF EX THIS LAST % Euro / $ 1,3883 1,3738 0,0145 1,06% Sterling / $ 1,5853 1,5848 0,0005 0,03% $ / Yen 82,405 83,205-0,800-0,96% $ / Nok 5,8310 5,8419-0,0109-0,19% $ / Won 1.115,10 1.140,35-25,25-2,21% Brent Crude 80,59 80,57 0,02 0,02% LIBOR (3-month) 0,29% 0,29% 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 $35.0m $20.0m (DH) $7.0m Product $40.0m $29.0m $18.0m (DH) $4.5m BULK CARRIERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS Capesize $65.0m $57.0m $46.0m $20.0m Panamax/Kamsarmax $45.0m $40.0m $33.0m $17.5m Supramax/Handymax $36.0m $32.0m $26.0m $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) 32,500/D 40,000/D 42,000/D SUEZMAX (150,000 dwt) 27,000/D 27,500/D 28,500/D AFRAMAX (110,00 dwt) 19,500/D 21,000/D 21,750/D PANAMAX (72,000 dwt) 16,250/D 17,500/D 18,000/D MR (45-50,000 dwt) 13,750/D 14,500/D 14,750/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $459 $462.50 $457.50 $461.00 180cst: $456 $480.50 $483.00 $467.50 MGO: $722.50 $745.00 $709.50 $687.50 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