Idle capacity in TEU Millions. Page 1 Copyright Alphaliner

Weekly Newsletter Volume 217 Issue 39 2.9.217 to 26.9.217 Web: www.alphaliner.com E-mail: editor@alphaliner.com Sales: commercial@alphaliner.com The Alphaliner Weekly Newsle er is distributed every Tuesday. Informa on is given in good faith but without guarantee. Alphaliner does not accept any liability for any errors or omission or opinion. Please send your feedback, comments and ques ons to editor@alphaliner.com. Unauthorized redistribu on of the newsle er is prohibited and readers are requested to quote Alphaliner as source for all data derived from the newsle er. Please refer to full user terms and copyrights at www.alphaliner.com/terms_of_use.php Chart of the week Idle containership fleet forecasts : 217-22 The idle containership fleet is expected to climb to 8, teu by the end of 218 with weaker demand in the fourth quarter and rising numbers of new ships to be delivered are expected to result in a rise in unemployed vessels. Capacity cuts for the winter period will be required to address the imbalance in supply and demand, as carriers have reintroduced too much capacity in the peak summer season that has resulted in spot freight rates sliding across all the tradelanes from Asia since July. Recent announcements by some carriers suggesting that the supply-demand imbalance will be eliminated in 218 are optimistic, as new vessel deliveries of 1.6 Mteu in 218 will add to the supply overhang that will be carried over from the fourth quarter of 217. Demand would need to grow by more than 8% for all of the excess capacity to be absorbed in 218. Idle capacity in TEU Millions 1.6 1.4 1.2 1..8.6.4.2. Jan 29 Jan 21 Jan 211 Jan 212 Jan 213 Jan 214 Jan 215 Jan 216 Jan 217 Jan 218 Jan 219 Jan 22 Actual Idle Fleet to Sep 217 Forecast Idle Fleet 217 22 Still too early to call an end to containership over-supply INSIDE THIS ISSUE: Still no end to the over-supply problem 1 Corporate Updates 3 What will Maersk do with its war chest? MSC launches newbuilding program for 11 ULCS units of 22, teu Idle Fleet and Charter Market Updates Idle fleet poised to rise again Charter market facing growing uncertainties Service Updates 1 MSC and WEC Lines add another Irish Sea-Iberia link RCL adds a second weekly feeder service on the Straits of Malacca Erratum on Portline news from Newsletter issue 38 Maersk receives Brazilian approval for Hamburg Sud takeover Deliveries/Vessel Updates September deliveries 12 Port and Terminal Updates 14 Gdynia unveils Masterplan for 23 port expansion Dunkirk port mulls large-scale expansion 5 The supply overhang of surplus containerships is not going to end soon, with weaker demand in the fourth quarter and a steady stream of new vessel deliveries expected to push idle vessel capacity to.8 Mteu by the end of the year. A further 1.6 Mteu of new ships are due to be delivered in 218, and in the absence of a significant surge in scrapping, the overall capacity increase is unlikely to be absorbed by the end of 218. Based on Alphaliner s current projections, the idle containership fleet will only be eliminated in the third quarter of 219, taking over 1 years to fully clear out the supply overhang that has plagued the container shipping market since 29. A potential wave of new orders, stimulated by the announcements over the past two weeks of a total of 2 ships of 22, teu contracted by CMA CGM and MSC with deliveries starting from H2 219, could further extend the supply overhang. These new ships would bring the latest technologies aimed at reducing the energy consumption bills when the new low sulphur fuel rules are implemented in 22, triggering a cascading that would make redundant smaller, older ships. Much will depend on the pace of demand growth over the next two years, which will have a significant impact on how quickly the persistent over-supply can be eliminated. Demand would need to grow by more than 8% each year for the Page 1 Copyright Alphaliner 1999-217

overhang to be cleared in 218, while an annual growth rate of less than 5% each year will see the overhang extend into 22. CCFI/SCFI Index 1, 9 8 7 6 5 4 3 216 217 SCFI CCFI The Transpacific Stabilization Agreement (TSA) has written to clarify that reference to carriers in the TSA announcing rate increases in Alphaliner Newsletter 217-38 should not be taken to infer that the TSA as a group has adopted GRI guidelines. The individual carriers have published their own GRIs in September and October 217 that are independent of the TSA. Additionally, the list of carriers GRI announcements included K-Line and NYK who are not TSA members. The current members of TSA are APL, CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM, MSC, Maersk, OOCL and Yang Ming. Transpacific Eastbound (Asia to USA) General Rate Increase (GRI) announced in US$ per 4 Carrier 1 Aug 1 Sep 15 Sep 1 Oct APL 1, 1, 1, 1, CMA CGM 1, 1, 1, 1, COSCO 8 6 Na 9 Evergreen 8 1, 1, 6 Hapag Lloyd 7 7 7 7 HMM 1, 1, Na 6 OOCL 8 1, 4 Na K Line 1, 1, 1, 8 NYK 1, 1, 1, 1, Yang Ming 8 8 na 8 The idle fleet forecasts under the various demand scenarios are illustrated below, with scrapping forecasts kept constant (although in practice, scrapping will vary depending on the strength of market demand and on scrap prices). Idle capacity in TEU Millions 2. 1.8 1.6 1.4 1.2 1..8.6.4.2. Jan 29 Jan 21 Jan 211 Jan 212 Jan 213 Jan 214 Jan 215 Idle fleet forecast 217 22 vs Multiple vessel demand growth scenarios Carriers already face some tough choices over the coming months, as the rapid increase in capacity in the summer peak season has exceeded cargo demand, resulting in spot freight rates falling by over 2% since July. The Shanghai Containerised Freight Index (SCFI) has continued to slide last week, after attempts by carriers to raise rates on 15 September failed. Further rate turbulence is expected in October, with carriers void sailing plans announced in the first two weeks of October insufficient to counter the fall in demand during the Chinese National Day Golden Week holidays. Deeper capacity cuts for the winter season will be required but carriers have so far chosen to slash rates instead. Jan 216 Jan 217 Jan 218 Jan 219 Jan 22 Actual to Sep 217 4% growth p.a. 5% growth p.a. 6% growth p.a. 7% growth p.a. 8% growth p.a. 28 Jul 217 22 Sep 217 % Change Shanghai Containerised Freight Index 925 736 2.5% Spot freight rates in $/teu North Europe 963 734 23.8% Mediterranean 883 79 19.7% US West Coast ($/feu) 1,687 1,484 12.% US East Coast ($/feu) 2,685 2,15 21.6% Middle East Gulf (Dubai) 69 376 45.5% Australia (Melbourne) 513 73 42.3% West Africa (Lagos) 2,56 1,161 53.7% South Africa (Durban) 1,474 1,196 18.9% South America (Santos) 3,352 1,886 43.7% West Japan (Osaka/Kobe) 218 218.% East Japan (Tokyo/Yokohama) 218 218.% Southeast Asia (Singapore) 179 147 17.9% Korea (Busan) 144 134 6.9% Page 2 Copyright Alphaliner 1999-217

CORPORATE UPDATES What will Maersk do with its war chest? We announced (in September 216) that we were going to separate our four energy businesses and we are going to focus on our container shipping, ports and logistics business. The first transaction we did was when we announced the acquisition of Hamburg Süd on 1 December last year. Søren Skou A.P. Møller-Maersk CEO 21 August 217 Maersk B Share Price 215 217 DKK 2, 52 week High/Low : DKK 14,26/8,75 18, 16, 14, 12, 1, 8, 6, 4, 2, 215 216 217 A.P. Møller-Maersk (APM-M), the parent company of Maersk Line, has announced the sale of Maersk Tankers on 2 September to the privately-owned APMH Invest (APMHI) for $1.17 Bn, with a provision for an upward price adjustment of up to $2 M if asset values improve by the end of 219. APMHI is the investment arm of the AP Møller Foundation and is helmed by Robert Uggla, the great-grandson of Arnold Peter Møller who founded Maersk in 194. The move follows the sale of Maersk Oil to Total S.A. for $7.45 Bn announced on 21 August, of which $4.95 Bn will be paid through shares in Total. Analysts estimate that APMM could get up to $6 Bn for its two remaining energy business units, Maersk Drilling and Maersk Supply Service, that the group plans to sell by 218. While most of the proceeds from these asset disposals will be used to reduce debt, the improvements to the APM-M balance sheet will nonetheless still give it a substantial war chest that can be used to fund its growth in the transport and logistics (T&L) business. The first step in growing the T&L segment has already been taken with the acquisition of Hamburg Süd, announced on 1 December 216, that is expected to be closed by the end of this year. Although Maersk has publicly said that it is not planning to make any other large or significant acquisitions in the foreseeable future, while also ruling out further new vessel orders in the short run, such moves cannot be ruled out as it seeks to expand its dominance in the container shipping sector. The recent orders for new containerships by CMA CGM and MSC could also trigger a reaction from Maersk in order to protect its market share, as all of its three closest rivals - MSC, CMA CGM and COSCO - now have a larger orderbook than Maersk. Maersk Business Units Breakdown by Capital Employed (1H 217) Maersk Business Units Breakdown by Turnover (1H 217) APMT 1% Maersk Line 46% APMT 18% Damco 1% MCI 1% Svitzer 3% Others 2% Maersk Drilling 15% Maersk Line 59% Damco 6% MCI 3% Svitzer 2% Maersk Drilling 3% Maersk Supply Service 1% Maersk Oil 14% Maersk Supply Service 2% Maersk Oil 9% Maersk Tankers 2% Maersk Tankers 3% Page 3 Copyright Alphaliner 1999-217

CORPORATE UPDATES MSC launches newbuilding program for 11 ULCS units of 22, teu APM Maersk MSC CMA CGM COSCO Shg Hapag Lloyd Evergreen OOCL Yang Ming Hamburg Süd NYK MOL PIL Zim HMM K Line Wan Hai 64 7 23 112 4 142 22 69 Orderbook by carrier As at 26 Sep 217 Capacity on order in TEU Thousands 261 376 339 274 512 MSC has launched a ULCS newbuilding program of 11 Megamax units of 22, teu, with five units to be built at Daewoo Shipbuilding & Marine Engineering (DSME) and six units at Samsung Heavy Industries (SHI). The ships are priced at $164 M each, although both shipyards stated that the final price may be reduced if MSC exercises its options on the ships propulsion system. The five DSME ships will be delivered from late 219 to March 22 while all six SHI ships will be delivered by December 219. The MSC fleet currently comprises 2 ULCS units of the 19, teuclass (23 container rows on deck), all contracted in Korea between July 213 and March 215. The first unit was delivered in January 215 and the last one in March 217. These 2 ships are financed by Chinese, Singapore and US interests under leasing or bare-boat terms, with MSC managing the ships. It is probable that the 11 ships of the new program will be financed through similar vehicles. The MSC new Megamax program comes on the heels of an order by CMA CGM for nine units of 22, teu contracted with China State Shipbuilding Corporation (CSSC), which controls, among other shipyards, the Hudong Zonghua shipyard and the Shanghai Waigaoqiao shipyard where the ships are expected to be built. The 2 new ships of MSC and CMA CGM will add to the 15 Megamax that will be in service by 219. No. of units >18, TEU by year of delivery 5 1 15 2 25 3 35 Maersk MSC CMA CGM COSCO Shg Evergreen OOCL Hapag Lloyd MOL K Line NYK Yang Ming 2M OCEAN Alliance THE Alliance Year of delivery Pre 217 217 218 219 22 Total by Alliance 2M 62 units OCEAN Alliance 51 units THE Alliance 12 units Page 4 Copyright Alphaliner 1999-217

IDLE FLEET UPDATES Idle fleet poised to rise again Idle containerships > 5 TEU As at 18 September 217 Breakdown by Size Range TEU Range Units idle Trend of which, NOO Units % 5 999 teu 5 46 92% 1, 1,999 37 31 84% 2, 2,999 18 14 78% 3, 5,99 34 32 94% 5,1 7,499 2 1 5% 7,5 11,999 5 2 4% 12, & over 1 % Total units idle 147 126 86% Total TEU idle 355,174 275,897 78% Idle TEU as % of total fleet 1.7% The idle containership fleet remained flat in the past fortnight, with 147 ships of over 5 teu that are unemployed as at 18 September with a total capacity of 355, teu. Demand for smaller ships remain brisk, although mainly for short term fixtures as carriers remain reluctant to commit for longer periods given the uncertainty over trade demand in the slack winter season. The termination of various ad hoc extra loader services in October is expected to result to an increase in the idle fleet in the coming months, even without the withdrawal of regular services for the winter season. However, falling freight rates may force further capacity cuts, even though none of the main carriers have announced their winter deployment adjustments so far. The active (non-idle) fleet has already increased by 7.2% to 2.49 Mteu compared to 18.77 Mteu at the same time last year, and this could rise to 9.4% by the end of October if carriers do not make more capacity cuts in the coming weeks. This capacity increase is more than what cargo demand can absorb, and it has resulted in spot freight rates from China sliding in seven out of the last eight weeks despite what should have been the busiest shipping season for the year. 6 Idle ships distribution Year-on-year change in total fleet vs active fleet : 215-217 Idle (unemployed) capacity Active (employed) capacity YoY % Change in total capacity YoY % Change in active capacity 5 Number of ships idle 4 3 2 1 Total Capacity in TEU Millions 21 2 19 1% 5% % % Change (Year on year) 18 Forecasts 5% 215 216 217 218 TEU Size Range NOO & other in limbo NOO vessels laid up NOO vessels spot NOO vessels with employment secured Carrier controlled (owned & chartered) Even with the relatively modest capacity cuts currently projected in Alphaliner s forecast, especially if compared with the larger cuts recorded in the fourth quarter of 215 and 216, the idle fleet is still expected to rise to.8 Mteu by the end of the year. The total fleet itself will grow by over 3, teu over the next three months from new vessel deliveries, even after adjusting for projected vessel scrapping, and this will further add to the supply side pressure. Page 5 Copyright Alphaliner 1999-217

CHARTER MARKET UPDATES Charter market facing growing uncertainties Charter Rate $/day 4, 35, 3, 25, 2, 15, 1, 5, Daily Charter Rates by TEU Size 8,5 teu 5,6 teu 4, teu 2,5 teu 1,7 teu 1, teu Alphaliner Charter Rates 212 217 Aug 17 $/day Sep 17 $/day 8,5 teu 16,5 17, 5,6 teu 13,5 15,5 4, teu (Panamax) 8,5 9, 2,5 teu 8,5 8,75 1,7 teu 7,4 7,7 1, teu 6,4 6,5 Clouds are gathering over the charter market with a deteriorating trading environment which could reduce demand for tonnage and halt the recovery observed in recent months, particularly for the larger vessels. Negative signals are appearing on various fronts, with receding cargo volumes on some routes, continuously falling freight rates, and rising fuel prices. The forthcoming Golden Week holiday in China, and the subsequent slack cargo season, will do nothing to help a market whose fragile condition is increasingly coming to light. The continued deliveries of large newbuilding container vessels, averaging two ships of over 1, teu expected to hit the market each week until the end of the year, will remain a threat, especially in a weaker cargo environment. The lower demand for tonnage is already being felt in the larger sizes, but smaller vessels (3, teu and under) could also be hit when cargo flows weaken further in the next few weeks. Little new business for VLCS and LCS tonnage Activity in the VLCS segment (7,5-13,3 teu) has been muted with no fresh fixture reported. The supply of spot tonnage remains thin on the ground for the time being, with only two ships open, but four ships of 8,-9,2 teu are expected to become available for employment by early October. A rise in the supply of spot tonnage could start impacting charter rates, should demand fail to pick up. The LCS segment (5,3-7,499 teu) was a little busier, although the majority of fixtures were for extensions, with very little new business concluded. The supply of spot tonnage in this segment remains low, with only one vessel of about 6, teu currently open for employment, whilst another two similar-sized ships are due to become open in the next two weeks. Charter rates in this segment have continued to progress substantially in recent times. Illustrating this, Hapag-Lloyd extended the 6,78 teu BRUSSELS (Hanjin 53) for 9-12 months at $15, per day. For reference, similar-sized tonnage with comparable specifications was getting fixed at only $13, per day at the end of July. The German carrier has also extended the slightly smaller, 5,527 teu ALLEGORIA (CSBC 55) for a period of 1 months USEC-ECSA trading, at $15,75 nett to owners. This rate is a significant improvement over the $13,5 agreed in March for a 4-6 month-extension of the vessel. Wide-beams continue to recover The LCS wide-beam niche segment (4,3-5,4 teu) continues to recover, with firming charter rates on the back of a dearth of spot Page 6 Copyright Alphaliner 1999-217

CHARTER MARKET UPDATES tonnage. Illustrating this, Gold Star Line (GSL) agreed to pay $15,225 per day for a 6 month-extension of the 4,957 teu JADRANA (YZJ 5), for deployment between Asia and West Africa. This rate is substantially better than the $12,5 agreed in July for a 7-9 monthextension of the sister vessel TOMMI RITSCHER by COSCO Shipping. 1 9 8 7 6 5 4 3 2 1 Available NOO ships > 4, teu Jan 16 Mar 16 May 16 Jul 16 Sep 16 Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17 VLCS 7,5 1, teu LCS : 5,3 7,5 teu Panamax : 4, 5,3 teu Supply on the rise again for Classic Panamaxes The pool of available ships is again on the rise in the classic panamax segment (4,-5,299 teu) with 25 ships in search of employment, versus 21 units in our last count two weeks ago. Fourteen ships remain in lay-up, of which 12 in SE Asia whilst two units are still mothballed in the Black Sea. Although demand continues to recede in this segment, charter rates remain relatively stable, ranging from $8,5 to $9,2 per day, depending on the vessel specifications and trade. Among the fixtures reported, Maersk Line snapped up in Asia the 5,6 teu JULIETTE RICKMERS (Hanjin 5) for 5-1 days trading at $9, per day. The Danish carrier has also fixed (again) the 4,256 teu JULES VERNE (YZJ 425) for a FE-Mexico round-voyage of 3-5 days at the same rate. In the Atlantic, CMA CGM extended the 4,25 teu NAVIOS AZURE (CS 425) for a Continent-West Africa round voyage of about 6 days at mid-$8,. The availability of spot tonnage in the 3,-3,8 teu segment remains limited, with two ships currently seeking employment, according to Alphaliner. Activity in this segment has been rather slow in the last two weeks, with no fresh fixture reported. Among the rare deals concluded, Atlantic Container Line (ACL) extended the 3,842 teu, Costamare-controlled ITEA for 4-5 months of Transatlantic trading at $8,. High activity in the 2,-3, teu sizes The 2,7-2,9 teu gearless segment continues to be short on available tonnage, with only three ships open in spot position according to Alphaliner. There are also three geared vessels in prompt position, of which two are newbuildings. Activity in this segment remains split between a busy Asian market, with charter rates ranging from $9, to $9,5 per day, and a dull Atlantic, where charter rates evolve around $7,5 per day only. Among the fixtures reported recently, Yang Ming extended in Asia the 2,824 teu E.R. MARTI- NIQUE (Mipo 28) for 5-8 months at $9,. By comparison, the sister vessel AS CARELIA was fixed in the Atlantic by Hapag-Lloyd for 4-7 months N. Europe-WAF trade at a much weaker $7,3 per day. The 2,-2,7 teu segment has been doing well recently, with a regular flow of charter enquiries allowing to reduce the supply of ton- Page 7 Copyright Alphaliner 1999-217

CHARTER MARKET UPDATES 45 4 35 Available NOO ships < 4, teu nage, even in the Atlantic basin where some overcapacity was looming. According to Alphaliner data, only four ships are now seeking employment in this segment, versus eight units two weeks ago. In spite of improving fundamentals, charter rates in this segment fail to progress and remain generally stuck in the low-mid $8, per day for conventional tonnage, with slightly higher figures obtained for certain trades. Higher specifications ships with attractive features such as high reefer intakes or fuel-efficient capabilities continue to command higher charter rates, which remain nevertheless disappointing considering the value these ships bring to their charterers. 3 25 2 15 1 5 Jan 16 Mar 16 May 16 Jul 16 Sep 16 Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17 3, 3,9 teu 2,7 2,999 teu 2, 2,7 teu 1,5 1,9 teu 1, 1,25 teu Among the fixtures reported recently, Maersk fixed in Asia the 2,664 teu SEOUL TRADER (STX 26) for 4-6 months at $8,5. The vessel is deployed by the Danish carrier on its SE Asia-Mozambique & Indian Ocean Safari 2 service, operated jointly with CMA CGM. In the Middle East, Simatech took the 2,474 teu TG POSEIDON (VW 25) for 4-6 months at $8,85. On the Continent, reefer specialist Seatrade snapped up the 2,127 teu GEORGIA TRADER (Aker CS 21) for 6 months in the low $8, for its Europe-Central America Blue Stream reefer-orientated service. In the Americas, Maersk Line extended the 2,526 teu KIEL TRADER (CV 25) for 7 months WCSA trading at $9,2. High specifications tonnage continues to outperform with MCC Transport extending in Asia the modern, Chittagong Max KIMOLOS TRADER (2,19 teu SDARI 21 type) for 5-8 months in the high $11, per day. 1,5-1,9 teu sizes get busier The supply of tonnage remains moderate in the 1,5-1,9 teu segment, with only ten ships currently seeking employment, of which two in the Atlantic. After a period of dithering, this segment has been quite active recently, with both new enquiries and charter extensions. Despite this improving environment, charter rates have been progressing only marginally. Among the (numerous) fixtures recorded, Swire Shipping fixed in Asia the 1,732 teu RHL AURORA (Wenchong 17) for 1-2 months at $7,85 per day. A B-17, the 1,728 teu ROBERT RICKMERS was meanwhile extended by X-Press Feeders for 5-6 months of SE Asia trading at $7,25. In the Atlantic, Maersk took the 1,856 teu, Ice Class 1A VIONA (Sietas Typ 17) for a 5-8 months Continent-Baltic charter at a split ice season/no ice season average rate of $8,5 per day. Modern, fuel-efficient Bangkok Max tonnage continues to outperform with Sinokor agreeing to pay $9,5 for a 4-6 month-charter of the 1,756 teu NORDTIGER (CV Neptun 17). Page 8 Copyright Alphaliner 1999-217

CHARTER MARKET UPDATES The availability of tonnage remains limited in the 1,25-1,499 teu segment, with five ships currently seeking employment versus three units in our last count. This segment has been generally quiet in the past two weeks with only one significant fixture reported, the 1,296 teu VARAMO (CV Neptun 12 - fitted with 448 reefer plugs), who took a 12 month-charter with reefer specialist StreamLines (Seatrade) at $8,5 per day. The ship is deployed on the carrier s Blue Steam fruit-related weekly service, which connects Central America and the Caribbean to North Europe. No rate lift despite fresh enquiries in the 1,-1,2 teu sizes Spot tonnage is again on the rise in the 1,-1,249 teu segment, with 16 ships searching for an employment, versus 12 units in our last count. Asia is again proving challenging for these sizes with most of the spot ships available in this area. By comparison only four ships are open in the Atlantic, and none in the Americas. Charter rates in this segment remain largely uninspiring, with some improvement seen on certain specific deals only, or to reward higher-specifications tonnage. Awilco Container AS, a new container ship owner emerges A new name has recently appeared among nonvessel operating owners: Awilco Container AS. This Norwegian firm, based in Oslo, has acquired four classic panamax container vessels on the secondhand market, the 4,38 teu, AS MAGNOLIA (Daewoo 44 - built 29), her sisters AS MARI- ELLA (21) and AS MARIANA (21) as well as the 4,25 teu AS MORGANA (Hyundai 425 built 21). These four ships, currently on charter to Maersk Line have been bought at what is believed to be a little less than $9 M per ship. Awilco has also bought two more ships, the 4,231 teu DAVID RICKMERS and SAMUEL RICK- MERS (built 21 trading as ZIM ALA- BAMA and ZIM TEXAS), in partnership with US Financier Wilbur Ross Transportation Recovery Fund (TRF). Both vessels are shared 5/5 by Awilco and TRF. They are currently on charter to Zim. Awilco is the shipping and offshore arm of Oslobased Awilhelmsen AS, a private investment company with interests in the shipping, cruise, real estate, retail and financial investment sectors. Awilco was so far better known for its involvement in the VLCC sector (through its participation to Awilco Eco Tankers Holding AS, jointly with TRF), the LNG market (through its involvement in Awilco LNG ASA) and in the offshore sector through Awilco Drilling PLC. The forerunner company of Awilhelmsen AS was established in 1939 by shipowner Anders Wilhelmsen. Among the fixtures reported, APL extended in Asia the 1,158 teu ASI- ATIC DAWN (Orskov Mk XI) for 2-3 months at $7,25. In the Med, Zim extended he sister ASIATIC KING for 6-8 months at $6,85. In the Atlantic, CMA CGM fixed the 1,118 teu BC SINGAPORE (CV 11) for 11-13 months at $6,9. This rate can be explained by the fact that the ship will be deployed in the tonnage-tight/higher-paying Caribbean trade, and will additionally have to position from the Med to meet its new employment. In Asia a sister vessel, the MAREN S was fixed to Indian operator Pan Lloyd Logistics for 2-4 months at a much weaker $5,8 per day, reflecting the current local market reality for this type of ships. Under 1, teu, the availability of spot tonnage remains fairly stable with 16 ships currently searching employment between 5 and 799 teu and 15 units between 8 and 999 teu. Once again, the Atlantic basin has been more active than Asia which continues to be a difficult trade for small container vessels. Among the fixtures reported, HMM fixed in Asia the 698 teu MAX PRINCE (Mawei 437) for 6-12 days at $4,55 per day. In the Atlantic, WEC Lines fixed the 59 teu ANNA G (Sietas Typ 151) and a sister vessel, the HEINZ SCHEPERS, both for a 4 month-period at 3,1 per day. The ships are being deployed on a new service connecting the Irish Sea with the Iberian Peninsula. In the Caribbean, Caribbean Feeder Services (CFS) extended the 657 teu SANDWIG (Zhejiang 65) for 3-4 weeks at $7,25. Page 9 Copyright Alphaliner 1999-217

SERVICE UPDATES MSC and WEC Lines add another Irish Sea-Iberia link MSC/WEC : SPM Services Details SPM I/II/III Vessels Deployed: SPM I : 2 x 1, teu SPM II : 3 x 86 teu SPM III : 2 x 5 teu Port Rotation SPM I : Tilbury, Moerdijk, Ro erdam, Vigo, Leixoes, Lisbon, Setubal, Leixoes, Tilbury SPM II : Ro erdam, Tilbury, Antwerp, Leixoes, Sines, Setubal, Liverpool, Sines, Leixoes, Vigo, Ro erdam SPM III (new from Sep) : Liverpool, Dublin, Leixoes, Huelva, Leixoes, Vigo, Liverpool Rotterdam-based WEC Lines is to launch a second weekly service between the Irish Sea, Spain and Portugal, branded 'SPM III', to be also used by MSC, which controls WEC Lines. WEC Lines acts as a regional European shortsea carrier for MSC on several routes. The new shortsea link will connect Dublin and Liverpool with Huelva in the south of Spain, Vigo in the north and Leixoes in Portugal on a weekly basis with two 59 teu ships of the Sietas 151 type. The 'SPM III' will make a double call at Leixoes and will turn in two weeks, calling at Liverpool, Dublin, Leixoes, Huelva, Leixoes, Vigo, Liverpool. The first sailing will be offered on 27 September from Huelva with the 59 teu ANNA G, joined one week later by the sister ship HEINZ SCHEPERS. Of note, WEC Lines and CMA CGM-owned OPDR will be the only carriers to provide a direct connection from Huelva to the UK. Huelva is a main gateway for Andalusia fruit exports. WEC Lines and MSC now offer three weekly loops between North Europe and Iberia. Coverage is as follows: SPM I Tilbury (replacing Felixstowe as from 3 October), Moerdijk, Rotterdam, Vigo, Leixoes, Lisbon, Setubal, Leixoes, Tilbury (2 x 1, teu ships) SPM II Rotterdam, Tilbury, Antwerp, Leixoes, Sines, Setubal, Liverpool, Sines, Leixoes, Vigo, Rotterdam (3 x 868 teu ships) SPM III (new) Liverpool, Dublin, Leixoes, Huelva, Leixoes, Vigo, Liverpool (2 x 59 teu ships). RCL adds a second weekly feeder service on the Straits of Malacca RCL : RMS9 Service Details RCL Malaysia Singapore 9 Vessels Deployed: 1 x 1, teu Port Rotation Singapore, Belawan, Penang, Port Kelang, Singapore Regional Container Line (RCL) has announced the launch of a second weekly feeder service on the Straits of Malacca that will connect Singapore to both Belawan in Indonesia and Penang in Malaysia. It will be marketed as RMS9 with a service rotation that connect Singapore, Belawan, Penang, Port Kelang (Westport), Singapore. The first effective sailing is planned on 3 October from Singapore using RCL s owned CV11 NAWATA BHUM that is currently ending her charter with TS Lines on the HHX 1 China-North Vietnam service. The RMS9 will mainly cater to RCL s Main Liner Operator (MLO) customer requirements for an additional end of week sailings from Penang that will connect with their mother vessels in either Port Kelang or Singapore, adding to its existing Straits of Malaysia service (RMS), while at the same time enabling RCL to also double the weekly coverage for Belawan, that is currently served by the Thailand Belawan Express (RTB/SE5), a joint service with Yang Ming. Page 1 Copyright Alphaliner 1999-217

SERVICE UPDATES Erratum on Portline news from Newsletter issue 38 PCI SA : Las Palmas-Cape Verde Service Details Las Palmas Cape Verde Islands Vessels Deployed: 1 x 52 teu Port Rotation Las Palmas, Palmeira (Sal Island), Sal Rei (Boa Vista Island), Porto Praia (San ago Island), Las Palmas The Las Palmas-Cape Verde Islands service of Portuguese carrier Portline Containers International (PCI), reported in newsletter issue 38 last week, was launched in June with a 352 teu vessel. This service was replaced in September by the 52 teu SINA. It connects Las Palmas, Palmeira (Sal Island), Sal Rei (Boa Vista Island), Porto Praia (Santiago Island), Las Palmas. From October, sailings on this service will be offered on a weekly basis. The official name of the company is now amended to PCI SA to reflect its independence from Portline, which had sold in 215 its container division to Grupo Sousa in order to focus on its bulk business and develop other innovating projects. Maersk receives Brazilian approval for Hamburg Süd takeover Brazil s anti-trust regulator, the Administrative Council for Economic Defense (in Portuguese, Conselho Administrativo de Defesa Econômica, or CADE) has approved the acquisition of Hamburg Süd by Maersk Line without restrictions, according to a decision published in Brazil s Federal Official Gazette on 22 September. The decision comes exactly one month after CADE's Superintendent- General had declared on 22 August that the transaction of the two shipping companies was complex, requiring further investigations on the competitive conditions in the affected markets. Maersk had earlier agreed on 13 June to sell Mercosul Line, its Brazilian coastal shipping unit, to CMA CGM in order to obtain authorization from Brazilian authorities for the Hamburg Sud acquisition. Mercosul and Hamburg Süd s Brazilian offshoot Aliança di Navegaçao together control over 7% of the cabotage container trade, leaving Brazilian carrier Log-In Logistica as the only other domestic Brazilian-flagged carrier of importance. Capacity Operated on Brazilian coastal trades in TEU (as at end Sep 217) 1, 2, 3, 4, Aliança Log In Logistica Mercosul Line Page 11 Copyright Alphaliner 1999-217

DELIVERY/VESSEL UPDATES The AL JMELIYAH (14,993 teu) - Last of UASC s A-15 series is delivered Cellular Containership Deliveries September 217 Name Teu Operator OOCL JAPAN 21,413 OOCL MILAN MAERSK 2,568 Maersk MAERSK HONAM 15,282 Maersk AL JMELIYAH 14,993 Hapag-Lloyd NYK SWAN 14,26 NYK TEXAS TRIUMPH 14, Evergreen MSC AVNI 11,5 MSC MSC SHREYA B 11,1 MSC COSCO SHIPPING RHINE 9,92 COSCO Shg Hapag-Lloyd has taken in charge the AL JMELIYAH, last of 11 units of an advertised capacity of 14,993 teu, dubbed 'A 15', originally ordered by UASC with Hyundai Heavy Industries (HHI) in two steps in August 213 and February 214. The construction was shared between the HHI Ulsan and Samho yards. The first nine units were delivered on schedule while the deliveries of the last two units, AFIF and AL JMELIYAH, were deferred by around one year due the moribund 216 market. They are the first UASC newbuildings delivered in Hapag-Lloyd colors since the merger of UASC with Hapag-Lloyd in May this year. The AL JMELIYAH follows the AFIF, delivered in July and is to join this week the Asia-North Europe 'Loop 4' offered within the 'THE' Alliance. The 'A 15' class vessels present an Loa of 368.52 m, a moulded breadth of 51 m and are fitted with 1, reefer plugs. They can ply at a commercial speed of 22 knots impelled by a MAN-B&W engine (model S9ME-C1 in 9 cylinder version) developing 54,9 kw at MCR. The AFIF (sister ship of AL JMELIYAH) is the first of the UASC A-15 ships that was delivered in Hapag-Lloyd colors. (Source : Hapag-Lloyd) POLAR COLOMBIA 3,83 Hamburg Süd EVER BLISS 2,926 Evergreen TS TOKYO 1,88 TS Lines XIN MING ZHOU 82 1,4 NBOSCO The NYK SWAN (14,26 teu) is delivered NYK has taken in charge the NYK SWAN, seventh of ten ULCS of 14,26 teu contracted in two steps in April 214 (eight ships) and July 215 (two ships) with Japan Marine United (JMU). The ten ships are built at JMU's Kure shipyard and are financed by Japanese interests linked to JMU, with NYK chartering them. The whole series is expected to be completed by June 218. The NYK SWAN has sailed on ballast from Japan to Busan in order to join THE Alliance s Far East-Med 'MED2' loop. She follows the NYK FALCON, delivered in June. These ships are NYK s largest ships, with an Loa of 364 m, breadth of 5.6 m and a scantling draft of 15.79 m. Page 12 Copyright Alphaliner 1999-217

DELIVERY/VESSEL UPDATES The MSC SHREYA B (11,1 teu) is delivered Cellular Containership Deliveries by Month : 213-217 *Sep Aug Jul Jun May Apr Mar Feb 217 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 216 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 215 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 214 Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb 213 Jan 7 15 8 9 9 9 12 7 8 1 12 1 13 15 12 9 14 11 14 11 15 16 16 12 15 13 9 17 13 9 16 14 16 14 15 19 16 15 18 13 12 23 18 23 18 19 2 22 23 19 23 27 28 22 29 25 29 Seaspan Corp. has taken delivery of the MSC SHREYA B, first of five compact neo-panamax ships of 11,1 teu contracted in April 215 with the backing of bare-boat charters by MSC for a duration of 17 years with an obligation to purchase the vessels for a pre-determined amount at the expiry of the charter. The ships were contracted with Hanjin Heavy Industry & Construction (HHIC) for construction in the HHIC's Subic Bay shipyard (Philippines). The MSC SHREYA B will join the MSC Far East-SAF-ME-ISC 'Ingwe' service. The MSC SHREYA B follows the MSC SHUBA B, delivered in August. The new vessels are based on the 'Hanjin 11' design, of which 12 units have been ordered by three different owners. Five of them are already in service (Costamare units). These ships present an Loa of 33 m and a neo-panamax breadth of 48.2 m allowing to stow 19 rows of containers on deck. They have a summer deadweight of 134, tons on 16 m draft and can ply at a commercial speed of 22 knots, impelled by a MAN-B&W eight-cylinder engine of the G95ME-C9.2 model developing 54,96 kw at MCR. The XIN MING ZHOU 82 (1,4 teu) is delivered - Joins NBOSCO Ningbo Ocean Shipping Co Ltd (NBOSCO), the shipping associate of the port of Ningbo, has received the XIN MING ZHOU 82, third of four 1,4 teu newbuildings that it ordered in November 215 with the Kouan Shipyard. She follows the XIN MING ZHOU 8, delivered in July. The new ships present a 139.2 m Loa for a breadth of 25. m. The four ships fly the Chinese flag in view of deploying them on NBOSCO's China domestic services. NBOSCO operates container services connecting Ningbo to Japan and Taiwan as well as domestic services connecting Ningbo to other Chinese ports. TEU Delivered Units delivered * Deliveries recorded month to date Page 13 Copyright Alphaliner 1999-217

PORT UPDATES Gdynia unveils Masterplan for 23 port expansion Container Terminals in Gdynia Baltic Container Terminal Port operator Pier length Capacity estimate Gdynia Container Terminal Port operator Pier length Capacity estimate Proposed 23 Terminal Port operator Pier length Capacity estimate (min ICTSI 8 m 1.2 Mteu Hutchison 723 m 1.1 Mteu tbd 1,7 m 3. Mteu Terminal pier lengths and teu capacities refer to the respective terminals fully built out state. Annual capacities are estimates. If built, the proposed 23 terminal would likely be developed in several phases and it would not come on stream with max capacity. The Baltic Sea port of Gdynia recently presented plans for the development of a deep-water container terminal, to be located in a new yet-to-be-built outer port area. The proposed facility would add to Gdynia s two current box piers, the Baltic Container Terminal (BCT) and the Gdynia Container Terminal (GCT). As a large state of the art container facility, designed to accommodate ultra-large deep-draft ships, the proposed terminal would be designed to rival the capabilities of the neighbouring port of Gdansk, which already has a very successful box terminal, the 27-built Deepwater Container Terminal Gdansk (DCT). Source : Alphaliner / Port of Gdynia Throughput in TEU Millions 1.4 1.2 1..8.6.4 Gdansk Gdynia Map above shows the current inner port of Gdynia and the proposed new outer port. The new outer port would add approximately 1,7 m of deep-water pier. Should all of this be designed for container operations, the new terminal could eventually offer an annual handling capacity of up to 3.-4. Mteu. The Polish port is marketing the scheme under the name Port Gdynia 23 and is seeking an investor to fund the ambitious project. Today, the main users of Gdynia port are Unifeeder, Hapag-Lloyd, MacAndrews and MSC. The former three carriers typically serve Gdynia with tonnage in the size range of 1, to 2,4 teu, whereas MSC also sends large mainline ships, used as high-capacity feeders, to the Polish port. These normally comproise ships of up to 6, teu, with occasional one-off trips of 9,+ teu VLCS. Contrary to the nearby Gdansk, the port of Gdynia does not feature as a direct call on deep-sea Asia - Europe main line services..2. 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 Container volumes at Gdynia dropped from a.85 Mteu peak in 214 to only.68 Mteu in 215, only to fall further to.64 Mteu last year. It suffers from fierce competition from local rival Gdansk, that already has a deep water container terminal (DCT) that opened in 27, with a second berth added last year. In 216, Gdansk handed 1,3 Mteu, more than double that at Gdynia. Page 14 Copyright Alphaliner 1999-217

PORT UPDATES According to the new Dunkirk port masterplan, successive extensions of the harbor basin could be created to increase the size of the port s container facilities. Eventually, the container pier would at least triple in length. Map below shows the location of the current TDF container terminal in Dunkirk s Atlantic Dock Source: Alphaliner Dunkirk port mulls large-scale expansion The port of Dunkirk, located on the English Channel close to the French-Belgian border, has announced long-term expansion plans that could triple the footprint of Dunkirk s current container facilities. The project is being promoted under the name CAP 22. Last week, the port launched a public consultation program, which will run until 22 December. Artist s impression of the expanded Dunkirk port (Source: Port of Dunkirk) Annual Throughput in TEU Millions.15.15.16.16 Container throughput at Dunkirk (2 216).2.2.2.2.21.21.2.27.26.29.31.32.34 2 21 22 23 24 25 26 27 28 29 21 211 212 213 214 215 216 During this period a number of discussion events and meetings will be organised by an independent commission (the Special Commission for Public Consultation) to inform the public and allow everyone to express their views on the project. Results from the public consultation will then form the basis for further planning work to extend the port of Dunkirk. Dunkirk s long term plans seem ambitious, as it is a niche port with annual volumes of only.34 Mteu in 216, compared to its nearest competitor, the Belgian Zeebrugge (1.4 Mteu) and the French main port of Le Havre (2.52 Mteu). While Zeebrugge has been on a losing street for many years now, a recent buy-in from China s COSCO Group might see the port s fortunes reverse and in the absence of major shifts in trade patterns, there is limited scope for box growth at Dunkirk. The first phase of the proposed Atlantic Dock expansion alone would almost triple the length of the dock s container pier from about 1,1 m at the current Terminal de Flandres (TDF), to about 3, m. Even in its current state, the TDF, a joint venture of Terminal Link and the port authority, should have ample space to accommodate near-term throughput volumes under any realistic growth scenario. Page 15 Copyright Alphaliner 1999-217