WEEKLY MARKET REPORT November 30th, 2007 / Week 48 For a change we shall start this week's commentary with the tanker market since tanker owners are enjoying the best period of the market so far this year since freight rates on all sectors have risen sharply in the last 15-20 days or so. Market sentiment had pointed to a rise in the rates but we did not expect the rates to move so sharply. VLCCs lead the way and in order to quantify this change it is interesting to note how the spot rates have moved in the last 17 days with AG/East rising to WS 175, up from WS 60 an increase of 192%! AG/West is WS 115 from WS 46.25 (+149%) and WAFR/USG WS 135 from WS 70 (+93%). The suezmax and aframax sector is also moving up albeit at a slower and more erratic pace. Demand is good and supply looks tight so rates are expected to remain firm and it will be interesting to see how the tanker sector behaves in December. In the dry bulk market we saw the indices turning upwards from mid week onwards and as we have said before volatility is expected but the market fundamentals look good and the market is expected to remain firm for the foreseeable future. A capesize spot fixture Brazil/East at USD 214,000 per day and the panamax spot rates moving at around and excess the USD 80,000 per day mark underlines the strength of the market. The market correction in the last 2-3 weeks was not adjusted to ships' values even though we saw a good number of vessels coming out in the market for sale, which is the highest number seen since early 2006. Thus, ships values reportedly on the up but with very few transactions concerning bulkers. To our understanding, the few transactions, has to do mainly with the present volalitity of the market but also due to the credit crunch which have made banks to more "stiff" in giving out loans for ship acquisitions. The recent "stiffing" of the banks, however, it may not have only negative effect. To illustrate, we have been noticing that this newbuilding ordering frenzy has now stopped, which may be positive news for future market fundamentals as well as for newbuilding prices which reached unbelievable levels in 2007. Remain to be seen. TANKERS: YOUNARA GLORY 320,000/04 - DAEWOO - B&W 39,989 - COILED - IGS - SBT - COW -DH Sold for $132 mill. to German KG buyer (Dr Peters). Sale includes t/c back for 11 years at $53,400/day, with a purchase option of the sellers at 71 mill. in the end of the charter. * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 1 of 7
FRONT MAPLE 151,680/91 - DAEWOO - B&W 20,940 - COILED - IGS - SBT - COW - DS FRONT BIRCH 149,999/91 - DAEWOO - B&W 20,940 - COILED - IGS - SBT - COW - DS Sold for $81.6 mill. to Korean buyer (Sinokor). (For conversion) AFRODITI 127,575/83 - U.K. - B&W 16,250 - COILED - IGS - SBT - COW - DS Sold for $18.5 mill. to undisclosed buyer. (For conversion) RATNA SHALINI 89,960/87 - NAMURA - SUL 18,082 - COILED - IGS - SBT - COW - SH Sold for $18 mill. to undisclosed buyer. (For conversion) MYRINA 89,427/87 - KAWASAKI - B&W 14,000 - COILED - IGS - SBT - COW - DS Sold for $15.5 mill. to undisclosed buyer. (For conversion) PACIFIC HONOR 46,101/03 - SHIN KURUSHIMA - B&W 12,870 - COILED - COATED - IGS - SBT - COW - DH Sold for $37 mill. to Japanese buyer. Sale includes t/c back for 5 years at $15,000/day. (Old sale) HISTRIA AMBER 41,000/06 - ROMANIA - B&W 12,889 - COILED - COATED - IGS - IMO 3 - DH Sold for $58 mill. to Italian buyer (Augusta Dua). BANGA 40,474/88 - CROATIA - B&W 10,400 - COILED - COATED - IGS - SBT - COW - DB BALVA 40,349/90 - CROATIA - B&W 10,400 - COILED - COATED - IGS - SBT - COW - DB Sold for $31 mill. en bloc to Greek buyer. (For conversion) BESIKTAS JUTLAND 25,600/08 - TURKEY - MAK 12,236 - COILED - COATED - IMO 2 - DH Sold for $43 mill. to Turkish buyer. SEVERN FISHER 11,227/83 - U.K. - MIRRLEES 4,430 - COILED - COATED - DB Sold for $3.8 mill. to Nigerian buyer. JO HEGG 7,870/85 - MITSUBISHI - MITSUBISHI 6,000 - COILED - COATED - IMO 2/3 - DB Sold for $4.5 mill. to undisclosed buyer. BULKERS: ANNA 72,516/95 - DAEWOO - B&W 12,530-7HH Sold for $72 mill. to Greek buyer. Delivery April 2008. SHIN SENDAI 42,304/88 - SUMITOMO - SUL 6,798-6HH - C 3X14.5T Sold for $25.5 mill. to Korean buyer. (Woodchip carrier) BULK LEADER 38,110/83 - IHI - SUL 11,100-5HH - 7,215 LDT Sold for $19.5 mill. to undisclosed buyer. AFRICAN SHARK 32,772/85 - NIPPON - B&W 7,830-5HH - C 4X30T AFRICAN KAROO 27,652/86 - MITSUBISHI - MITSUBISHI 7,730-5HH - C 4X25T AFRICAN PYTHON 26,587/85 - KANASASHI - B&W 5,865-5HH - C 4X30T Sold for $104 mill. en bloc to undisclosed buyer. GREAT SEA 26,858/86 - SPAIN - SUL 9,517-7HH - C 4X16T Sold for $22 mill. to Greek buyer. * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 2 of 7
PACIFIC NOVATOR 26,003/82 - BRAZIL - MAN 13,299-5HH - C 4X20T Sold for $8 mill. as is to undisclosed buyer. CHANGI HOPE 18,320/00 - SHIKOKU - B&W 5,574-4HH - C 3X30T Sold for $29 mill. to Greek buyer. (Old sale) TWEENDECKERS: KETY 20,435/83 - POLAND - SUL 10,800-4HO 7HA - C 4X25T, D 1X80T, 4X15T - 427 TEU - 9,369 LDT Sold for $10 mill. to Middle Eastern buyer. Sale includes t/c until July-August 2008 at $14,000/day. ORIENTAL STAR 12,720/81 - GERMANY - MAN 9,005-3HO 5HA - D 4X40T, 1X20T - 428 TEU - 6,061 LDT Sold for $5.65 mill. to U.K. based buyer (Hasco). CONTAINERS: FA MEI SHAN 13,760/06 - JINGJIANG - B&W 12,900-7HH - 1,118 TEU Sold for 28.5 mill. to undisclosed buyer. NEW SHIPS FOR SALE: BULKERS: ANGELE N 69,315/90 - IMABARI - SUL 12,000-7HH Vessel is inspectable in Fujairah where ETA 1st December. THRASYVOULOS V 66,908/84 - MITSUBISHI - SUL 12,250-7HH Vessel is presently ar Samarinda, Indonesia loading coal, where ETS 30th November. The vessel will then proceed to Mailiao, Taiwan to discharge, where ETA 5th December, ETS 9th December. NORD WAVE 53,489/05 - IWAGI - B&W 12,889-5HH - C 4X30.5T Vessel en route to Luanda, where ETA 16th December. ORFEAS 42,562/78 - BELGIUM - SUL 11,400-7HH FEDON 38,250/80 - RUSSIA - B&W 13,708-7HO 9HA Orfeas: Vessel en route to up river to load grains, where ETA 30th November for about 4 days. Fedon: Vessel presently loading grains at Taragona, Spain for S. Arabia. S KALA 37,994/83 - IMABARI - SUL 10,500-5HH - C 4X25T Vessel is presently in Guangzhou completing survey works, where can be inspectable. YARE 37,568/85 - KURUSHIMA - SUL 9,250-5HH - C 4X25T Vessel is inspectable in Chengxi, where is passing DD, around 14th-18th December. CONQUEROR 36,172/82 - IMABARI - SUL 11,850-5HH - C 4X25T Vessel presently in Ulsan for discharge. Vessel currently trading between China/Hong Kong/Korea/Taiwan area. * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 3 of 7
NEWBUILDINGS NEWBUILDING STATISTICS TYPE OF SHIP 2007 2008 2009 2010 2011 2012 2013 * TOTAL ORDERBOOK ULCC/VLCC 3 37 67 48 16 3 174 ( +1 ) SUEZMAX 1 20 59 47 12 139 ( -2 ) AFRAMAX 7 73 107 81 25 293 ( 0 ) PANAMAX 8 40 50 19 11 128 ( 0 ) MR 36 201 203 151 43 2 636 ( +1 ) 0-35,000 DWT 98 193 191 120 32 6 640 ( -2 ) CAPESIZE 6 48 132 249 133 15 2 585 ( +2 ) 80-100,000 DWT 7 42 69 124 92 12 347 ( +6 ) PANAMAX 11 69 44 65 28 8 225 ( -2 ) SUPRAMAX 33 148 223 210 98 13 725 ( +9 ) HANDYSIZE 23 104 195 164 62 15 3 566 ( 45 ) * Includes ALL vessels on order NEWBUILDING CONTRACTS No. Size Type Yard Delivery Price (mill) Owners Comm. 2 x 73,000 dwt Prod SPP 2011 OSG 4 x 25,000 dwt Chem Daesan 2010/11 Cosmoship 1 x 19,000 dwt Chem Fukuoka 2009 Clipper Wonsild 2 x 19,000 dwt Chem Usuki 2011 Sanko Steamship 4 x 300,000 dwt VLOC Dalian 2010/11 $122.6 Jinhui 4 x 93,000 dwt Bulk Shanhaiguan 2010 Hebei Ocean 4 x 59,000 dwt Bulk S. Korea 2010/11 Geden Lines 6 x 34,000 dwt Bulk SPP 2011/12 $37 C.F. Ahrenkiel 4 x 32,000 dwt Bulk Guangzhou Huangpu 2010 $34 Sinotrans 2 x 8,500 teu Cont Hudong Zhonghu. 2011 $120.7 OOCL 9 x 5,500 teu Cont Daewoo-Mangalia. 2011/12 $95 Eueropean Owner 5 x 4,500 teu Cont Samsung. 2010 $80 Seaspan Int. * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 4 of 7
KEY INDICATORS INDICES RATE OF EXCHANGE BALTIC EXCHANGE RATES THIS WEEK LAST WEEK CHANGE $ / Won: 919.2300 Baltic Dry Index 10210 10148 +62 $ / Nok: 5.499500 Baltic Capesize 15357 14873 +484 Euro / $: 1.476500 Baltic Panamax 9967 9997-30 Stlg / $: 2.066600 Baltic Supramax 5988 6205-217 $ / Yen: 110.7000 Baltic Handysize 2934 2959-25 LIBOR (3-mos) / 5.12% Brent Crude $91.01 $94.83-3.82 3,500 3,000 2,500 2,000 1,500 1,000 500 0 02-Jan-04 02-Jul-04 02-Jan-05 BALTIC TANKER INDICES 02-Jul-05 02-Jan-06 02-Jul-06 BDTI INDEX BCTI INDEX 02-Jan-07 02-Jul-07 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 01-Jun-04 01-O ct-04 01-Feb-05 ESTIMATED VALUES BALTIC DRY INDICES BDI BCI BPI BSI 01-Jun-05 01-Oct-05 01-Feb-06 01-Jun-06 01-Oct-06 01-Feb-07 01-Jun-07 01-O ct-07 TANKERS NB PROMPT 12 MONTH 5 YEARS 10 YEARS 20 YEARS RESALE T/C VLCC 300,000 dwt $143.0m $150.0m $130.0m $104m (DH) $40.0m (SH) $55,000 PD Suezmax 150,000 dwt $88.0m $105.0m $96.0m $75.0m (DH) $35.0m $42,000 PD Aframax 105,000 dwt $70.0m $78.0m $67.0m $55.0m (DH) $27.0m (SH) $32,000 PD Panamax 70,000 dwt $63.0m $67.0m $56.0m $48.0m (DH) $19.0m $28,000 PD Product 47,000 dwt $52. 0m $58.0m $53.0m $43.0m (DH) $17.0m $24,000 PD BULK CARRIERS Capesize 170 180,000 dwt $97.0m $173.0m $150.0m $112.0m $80.0m $150,000 PD Panamax 74 76,000 dwt $52.0m $107.0m $90.0m $76.0m $50.0m $75,000 PD Supramax 52 59,000 dwt $45.0m $87.0m $78.0m $62.0m $43.0m $65,000 PD BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $442.00 $475.00 $463.50 $475.00 180cst: $461.00 $489.00 $499.50 $485.00 MGO: $815.00 $812.50 $862.50 $802.50 * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 5 of 7
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2007 THIS DATE 2006 2006 TOTAL 2005 TOTAL ULCC/VLCC 1 0 0 1 SUEZMAX 1 0 0 2 AFRAMAX 8 13 14 15 PANAMAX TANKER 5 (*4 pmax+1 post pmax) 7 7 15 CAPE/COMBO (100,000 dwt +) 0 3 3 2 PANAMAX BULKER *2 (*1 pmax+1 post pmax) 13 13 5 ESTIMATED DEMOLITION PRICES LOCATION TANKERS 6-10,000 LT TANKERS 15-20,000 LT BULK CARRIERS CHINA 310 315 280 SUB-CONTINENT 540 550 500 DEMOLITION: PAKISTAN: MT TAYLOR 24,430/82-6,988 LDT - USD 535/LDT * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 6 of 7
WEBERCOMPASS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER Bobby Mitropoulos 6936-530005 Tom Protonotarios 6936-530006 Nicholas Sfinias 6944-343488 John Stamatakis 6936-853258 Spyros Karamassis 6945-776757 TANKER CHARTERING Basil Mavroleon 6932-644983 Christos Kalogeras 6944-514420 Lefteris Mystriotis 6946-762010 Dionysios Mitsotakis 6944-720337 ADMINISTRATION Yannis Mitropoulos 6936-530007 Ourania Savvaki 6934-257746 Very Truly Yours, WEBERCOMPASS (HELLAS) S.A. The information contained in this report has been obtained from various market sources. WEBERCOMPASS (HELLAS) S.A. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. WCH will not be held responsible for any action or failure to take action upon reliance on information contained in this report. 2007 WEBERCOMPASS (HELLAS) S.A. All Rights Reserved * YGIAS 1-3 & 2 AKTI THEMISTOKLEOUS STR, PIRAEUS, GREECE 18536 * Page 7 of 7