LY MARKET REPORT July 16th, 21 / Week 28 All indices have continued their downward trend for another week, as the capesize rates continued their downward spiral. Very poor demand for iron ore has put pressure on the capesize rates which are hovering just over US$ 12,2 per day, the lowest since January 29. A rapid increase in steel production has translated into an overcapacity and therefore, iron ore buying has practically run into a standstill. Steel prices in China, the biggest iron-ore consumer, are likely to drop a further 1 percent for the rest of the year. China's biggest steelmaker Baoshan has cut steel prices for a second month. China Steel Corp., Taiwan's largest producer of the metal, also lowered prices for the first time since January because of slowing demand in China but also weaker demand from automakers. Chinese buyers may be delaying purchases of iron ore in anticipation of lower contract prices in the fourth quarter from the main producers of iron ore Vale, Rio Tinto and BHP Billiton. Of course we are also amidst the Western Hemisphere's summer season and this is also having an overall negative impact on the market. Despite the pessimism in the caper market the panamax market managed to reverse its downward trend this week starting Tuesday as the Atlantic market firmed due to some fresh cargoes which owners were quick to capitalize upon. It is far too early to say whether this is a turning point in the market for panamax tonnage. However, towards the end of the week we have witnessed a rebound in BDI and BCI indices. For how long and at what extent it remains to be seen. In the smaller segments the market continues to be flat however, the rates are not falling as rapidly or as much as we could expect and this may be a sign that the market has reached the end of its negative trend. However, despite all the above, once more we have seen some interesting sales taking place. M/V TAMARUGAL (46k / 2 blt Japan) is sold for about US$ 25.3 million. Furthermore, it seems that at last M/V SMOOTH RISE 1 (41k / 1984 blt Japan) has found a new owner, being sold for an impressive US$ 9 million to Indonesian buyers. WeberSeas, Weekly Market Report Page 1 of 9
In the tanker sector, single hull VLCC HYUNDAI BANNER (281k / 1996 blt Korea) was sold at US$ 23 million to Singaporean buyers, for conversion to FPSO unit, while a 4, dwt MR resale ex SLS shipyard, with delivery within 21 was sold for US$ 34 million to South Africans. In the demolition front, despite the fact that the activity was limited this week, the prices remain firm on the anticipation of an increasing flow of sales candidates. TANKERS HYUNDAI BANNER 281,74/96 - HYUNDAI - SUL 39,6 - COILED - IGS - SBT - COW - SH SS/DD 5/211 Sold for $23 mill. to Singaporean buyers (Weir SPM) for conversion to FPSO unit. FREJA SPRING 47,11/99 - ONOMICHI - B&W 11,641 - COILED - COATED - IGS - SBT - COW - DH SS 4/214, DD 4/212 Sold on subs for $17.25 mill. to Indian buyers (Sanmar Shipping). SLS HULL 514 4,/1 - SLS - B&W 11,665 - COILED - COATED - IGS - SBT - COW - DH Sold for $34 mill. to South African buyers (Unicorn). ANDINO PARK 9,13/89 - AKASAWA - MIT 4,9 - COILED - ST. ST. COATING - SBT - DH SS 9/213, DD 9/211 Sold for $3.5 mill. to Far Eastern buyers. BULKERS ZHEJIANG OUHUA RESALE 82,/12 - ZHEJIANG OUHUA - 7HH Sold for $36 mill. to Greek buyers. OCEAN PRELUDE 68,541/95 - IMABARI - SUL 13,51-7HH - C 4X3T - SS/DD 1/21 Sold for $22 mill. to Indian buyers (Palonji). TAMARUGAL 46,79/ - KANASASHI - MIT 1,181-5HH - C 4X3T - SS 9/215, DD 7/213 Sold for $25.3 mill. to undisclosed buyers. SMOOTH RISE 1 41,61/84 - SANOYAS - SUL 9,449-5HH - C 4X25T - SS 8/214, DD 7/212 Sold for $9 mill. to Indonesian buyers. SEAFORCE MARIANNA 24,733/82 - IMABARI - SUL 9,374-4HH - C 3X25T, D 1X25T Sold for $2.1 mill. to undisclosed buyers basis SS/DD overdue. CONTAINERS EURO ADVENTURE 9,23/9 - GERMANY - MAK 1,877-95 TEU Sold for Euro 15 mill. to German buyers. PARITAS-H 8,45/9 - GERMANY - MAK 9,789-3HH - 724 TEU Sold for Euro 12 mill. to Portuguese buyers. WeberSeas, Weekly Market Report Page 2 of 9
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 21 THIS DATE 29 29 TOTAL 28 TOTAL ULCC/VLCC 12 1 6 SUEZMAX 4 4 5 1 AFRAMAX 6 5 12 7 PANAMAX TANKER 7 3 8 9 CAPE/COMBO (1, dwt +) 5 5 5 8 PANAMAX/KAMSARMAX BULKER 2 17 21 19 LOCATION TANKERS BULK CARRIERS CHINA 37 355 INDIA 45 37 BANGLADESH N/A N/A PAKISTAN 415 36 DEMOLITION: INDIA M/V GREEN CAPE (MPP) Cont PERMAI V 28,/81-11,43 LDT - USD 383/LDT 11,875/73-7,978 LDT - USD 327/LDT PAKISTAN M/T SHRIRACHA ENERGY 88,557/8-16,641 LDT - USD 42/LDT TURKEY RoRo NICEA 4,673/87-4,289 LDT - USD 212/LDT WeberSeas, Weekly Market Report Page 3 of 9
TYPE OF SHIP NEWBUILDING STATISTICS 21 211 212 213 214 * TOTAL ORDERBOOK ULCC/VLCC 4 71 47 2 8 186 SUEZMAX 32 55 42 29 5 163 AFRAMAX 56 76 39 9 3 183 PANAMAX 23 42 11 11 2 89 MR 18 12 76 13 317-35, DWT 2 97 27 4 328 CAPESIZE/ MINI CAPE / VLOC 8-1, DWT 16 31 129 4 5 644 117 218 16 34 8 537 PANAMAX 55 83 49 11 198 SUPRAMAX / HANDYMAX 266 338 188 35 827 HANDYSIZE 271 3 136 3 4 741 * Includes ALL vessels on order NEWBUILDING CONTRACTS Price No Size Type Yard Delivery (mill) Owners Comments 4 82, dwt Bulker Jiangsu Hantong 212 n/a Chinese buyer + 4 options 2 35, dwt Bulker Samho 212 n/a Ecoship + 1 option WeberSeas, Weekly Market Report Page 4 of 9
BALTIC DRY EX RATES THIS LAST % Baltic Dry Index 172 192-182 -9,57% Baltic Capesize 1676 212-426 -2,27% Baltic Panamax 292 1944 148 7,61% Baltic Supramax 1669 1817-148 -8,15% Baltic Handysize 944 13-59 -5,88% 14 12 1 8 6 4 2 4-Jan-5 4-Apr-5 4-Jul-5 4-Oct-5 4-Jan-6 4-Apr-6 4-Jul-6 4-Oct-6 4-Jan-7 4-Apr-7 4-Jul-7 4-Oct-7 4-Jan-8 4-Apr-8 4-Jul-8 4-Oct-8 4-Jan-9 4-Apr-9 4-Jul-9 4-Oct-9 4-Jan-1 4-Apr-1 4-Jul-1 BDI 25 2 15 1 5 4-Jan-5 4-Apr-5 4-Jul-5 4-Oct-5 4-Jan-6 4-Apr-6 4-Jul-6 4-Oct-6 4-Jan-7 4-Apr-7 4-Jul-7 4-Oct-7 4-Jan-8 4-Apr-8 4-Jul-8 4-Oct-8 4-Jan-9 4-Apr-9 4-Jul-9 4-Oct-9 4-Jan-1 4-Apr-1 4-Jul-1 BCI 14 12 1 8 6 4 2 4-Jan-5 4-Apr-5 4-Jul-5 4-Oct-5 4-Jan-6 4-Apr-6 4-Jul-6 4-Oct-6 4-Jan-7 4-Apr-7 4-Jul-7 4-Oct-7 4-Jan-8 4-Apr-8 4-Ju l-8 4-Oct-8 4-Jan-9 4-Apr-9 4-Jul-9 4-Oct-9 4-Jan-1 4-Apr-1 4-Jul-1 BPI WeberSeas, Weekly Market Report Page 5 of 9
BALTIC WET EX RATES THIS LAST % Baltic Clean Tanker 837 796 41 5,15% Baltic Dirty Tanker 832 813 19 2,34% 2.5 2. 1.5 1. 5 2.5 2. 1.5 1. 5 4-Jan-5 8-Mar-5 13-May-5 4-Jan-5 8-Mar-5 13-May-5 18-Jul-5 2-Sep-5 22-Nov-5 1-Feb-6 5-Apr-6 13-Jun-6 15-Aug-6 18-Oct-6 2-Dec-6 1-Mar-7 3-May-7 5-Jul-7 7-Sep-7 9-Nov-7 18-Jul-5 2-Sep-5 22-Nov-5 1-Feb-6 5-Apr-6 13-Jun-6 15-Aug-6 18-Oct-6 2-Dec-6 1-Mar-7 3-May-7 5-Jul-7 7-Sep-7 9-Nov-7 21/1/28 27-Mar-8 BCTI 21/1/28 27-Mar-8 BDTI 2-Jun-8 11-Aug-8 14-Oct-8 23-Dec-8 4-Mar-9 11-May-9 14-Jul-9 16-Sep-9 18-Nov-9 29-Jan-1 6-Apr-1 1-Jun-1 2-Jun-8 11-Aug-8 14-Oct-8 23-Dec-8 4-Mar-9 11-May-9 14-Jul-9 16-Sep-9 18-Nov-9 29-Jan-1 6-Apr-1 1-Jun-1 WeberSeas, Weekly Market Report Page 6 of 9
MAJOR CAPITAL MARKETS INDEX THIS LAST % S HIGH S LOW DOW JONES 1.366,72 1.18,28 348,44 3,48% 11.39, 8.543,97 NASDAQ 2.249,8 2.175,4 73,68 3,39% 2.535,28 1.854,7 AIM 676,3 664,3 12, 1,81% 736,1 8,6 NIKKEI 9.685,53 9.535,74 149,79 1,57% 11.48,2 9.76,41 NAME SYMBOL PUBLIC COMPANIES DRY-CARGO SECTOR THIS LAST % HIGH LOW DIANA DSX 13,1 12,9 1,1 8,35% 18,24 1,75 DRYSHIPS DRYS 4,5 3,72,33 8,87% 7,99 3,28 EAGLE BULK EGLE 4,62 4,14,48 11,59% 6,75 3,91 EXCEL MARITIME EXM 5,2 4,88,32 6,56% 9,95 4,59 GENCO GNK 16,13 15,5,63 4,6% 29,2 14,2 NAVIOS HOLDINGS NM 5,15 4,76,39 8,19% 7,55 4,25 TBS INTERNATIONAL TBSI 6,2 6,14,6,98% 9,97 5,21 NAME CAPITAL PRODUCT PARTNERS SYMBOL TANKER/ENERGY SECTOR THIS LAST % HIGH LOW CPLP 8,72 8,33,39 4,68% 11,49 5,31 GENERAL MARITIME GMR 5,89 5,68,21 3,7% 9,42 5,15 OMEGA NAVIGATION ONAV 1,97 1,94,3 1,55% 4,5 1,5 STEALTHGAS GASS 4,51 4,1,41 1,% 7,64 3,93 TEN TNP 14,38 14,18,2 1,41% 18,8 12,65 NAME SYMBOL CONTAINER SECTOR THIS LAST % HIGH LOW DANAOS DAC 3,79 3,89 -,1-2,57% 6,99 3,11 * Prices reflect Thursday s closing values. Prices in US$ WeberSeas, Weekly Market Report Page 7 of 9
RATES OF EX THIS LAST % Euro / $ 1,298 1,2681,299 2,36% Sterling / $ 1,5387 1,5175,212 1,4% $ / Yen 86,785 88,585-1,8-2,3% $ / Nok 6,2146 6,3483 -,1337-2,11% $ / Won 1.22,4 1.28,5-6,1 -,5% Brent Crude 76,28 75,77,51,67% LIBOR (3-month).53%.53 %..% ESTIMATED VALUES* TANKERS PROMPT RESALE 5 YEARS 1 YEARS 2 YEARS VLCC $11.m $86.m $62.m (DH) $16.m Suezmax $7.m $6.m $43.m (DH) $12.5m Aframax $58.m $43.m $31.m (DH) $9.m Panamax $45.m $35.m $2.m (DH) $7.m Product $35.m $26.5m $18.m (DH) $4.5m BULK CARRIERS PROMPT RESALE 5 YEARS 1 YEARS 2 YEARS Capesize $74.m $6.m $48.m $2.m Panamax/Kamsarmax $45.m $39.m $34.m $17.5m Supramax/Handymax $35.m $32.m $27.m $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 (3, dwt) 42,/D 42,/D 4,/D SUEZMAX (15, dwt) 3,/D 29,/D 28,/D AFRAMAX (11, dwt) 19,5/D 2,/D 21,/D PANAMAX (72, dwt) 16,75D 17,5/D 18,5/D MR (45-5, dwt) 12,/D 14,/D 14,75/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 38cst: $43. $446.5 $442.5 $447.5 18cst: $451. $46. $465.5 $454.5 MGO: $647.5 $73. $649.5 $637.5 WeberSeas, Weekly Market Report Page 8 of 9
WEBERSEAS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER Bobby Mitropoulos 6936-535 Tom Protonotarios 6936-536 Nicholas Sfinias 6944-343488 Spyros Karamassis 6945-776757 TANKER CHARTERING Basil Mavroleon 6932-644983 Lefteris Mystriotis 6946-7621 Dionysios Mitsotakis 6936-832 George Karalis 6948-753725 TANKER OPERATIONS Kimon Polikratis 6932-359 ADMINISTRATION Yannis Mitropoulos 6936-537 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. 21 WEBERSEAS (HELLAS) S.A. All Rights Reserved WeberSeas, Weekly Market Report Page 9 of 9