WEEKLY MARKET REPORT November 19th, 2010 / Week 46 A difficult week for the panamax market with the BPI losing 327 points representing a loss of almost 14%. The BDI fell nearly 7% mostly due to the sharp fall of the BPI. All eyes are now on the capesize segment where we saw a reversal of fortune from mid week onwards. In the end the BCI fell just over 2%. If this reversal is maintained early next week then the rest of the segments will surely follow. The capesize market was not in fact lifted by increased iron ore cargoes but actually coal, especially in the trans Atlantic trade. Demand and supply in the Atlantic seems more balanced now and with the winter season kicking in slowly we may see more coal trade providing the much needed support for the capesize market. There has definitely been less activity this week however there is a market there for those who are willing buyers and sellers. Although the price gap is usually too big to be breached deals are getting done, mainly when the sellers are willing to reduce their price expectations. Prices have managed to remain relatively firm as evidenced by recent sales. Good examples of this are the reported sales of the supramax MV NORD BRAVE (53,9 dwt / blt 2007 Japan) which has been sold to Vietnamese for US$ 37 million whilst the handysize MV ORIENT SAORI (30,836 dwt / blt 1997 Japan) achieved US$ 19.50 million from Turkish buyers. Activity in the tanker market is practically non existent this week. The market remains extremely quiet since there are no buyers willing to meet sellers' price expectations. At present there is no correlation between ship prices and the freight market. New building activity has also slowed down and there seems to be more aggressive marketing of various 2012 berths (especially for dry cargo vessels) mainly from the Chinese yards. Prices here are under pressure. In Bangladesh, the government has permitted the ship-breakers to import about 20 ships after a break of eight months!!! There are about 17 plots open out of the total of around 100. This is good news for the tankers where Bangladesh is the traditional scrapping area for these however, at present there are very few available tanker candidates for demolition. Activity elsewhere is also slow as there are few owners willing to scrap bulkers which are still making decent freights. WeberSeas, Weekly Market Report Page 1 of 10
TANKERS LPG JOYAMA 49,999/86 - MITSUBISHI - SUL 18,599 - IGS - 80,863 CBM Sold for $10 mill. to undisclosed buyers. LPG LADY BARBARA 3,983/90 - KYOKUYO - MIT 3,899 - IGS - 3,444 CBM Sold for $3.5 mill. to undisclosed buyers. LPG ORIENTAL SKY 3,235/95 - SHITANOE - AKASAKA 3,300 - IGS - 3,138 CBM Sold for $5.2 mill. to Korean buyers. BULKERS CASTILLO DE SAN JUAN 173,329/90 - BRAZIL - B&W 17,346-9HH - SS 12/2014, DD 11/2011 Sold for $18 mill. to Chinese buyers. PB EAGLE 94,191/92 - IMABARI - SUL 13,800-8HH - SS 09/2013, DD 09/2011 (converted from tanker) Sold for $18.25 mill. to Greek buyers. Sale includes t/c attached until June/July 2011 at $16,800/day. ENERGY TRADE 77,679/98 - MITSUI - B&W 13,901-5HH - SS 07/2013, DD 06/2011 (ore carrier) Sold for $24 mill. to undisclosed buyers. MERCURY K 72,421/97 - SASEBO - B&W 13,262-7HH - SS/DD 03/2012 Sold for $27 mill. to Indonesian buyers (old sale). NORD BRAVE 53,9/07 - IWAGI - B&W 12,889-5HH - C 4X30.5T - SS/DD 07/2012 Sold for $37 mill. to Vietnamese buyers (Vinalines). FEROI 37,092/83 - KURUSHIMA - MIT 8,000-5HH - C 5X25.5T - SS/DD 04/2011 Sold for $6.3 mill. to undisclosed buyers. ORIENT SAORI 30,836/97 - MINAMI - MIT 8,201-5HH - C 4X30T - SS/DD 03/2012 Sold for $19.5 mill. to Turkish buyers. ID HARMONY 23,712/95 - KANASASHI - B&W 8,130-4HH - C 4X30T - SS 06/2015, DD 03/2013 Sold for $14.5 mill. to undisclosed buyers. MPP/TWEENDECKERS THOR FALCON 2,784/92 - DENMARK - DEUTZ 2,170-1HH - C 4X50T - SS/DD 11/2012 Sold for $2 mill. to undisclosed buyers. CONTAINERS FRISIA KOPENHAGEN 38,104/05 - GERMANY - B&W 29,540-2,702 TEU Sold for $36 mill. to undisclosed buyers basis delivery in 1 st quarter 2011. NORDSTAR 23,007/98 - POLAND - SUL 18,110-4HO 9HA - C 3X45T - 1,728 TEU Sold for $14 mill. to undisclosed buyers basis delivery between January-April 2011. WeberSeas, Weekly Market Report Page 2 of 10
VSICO PROMOTE 8,516/99 - MURAKABI - B&W 7,040 - C 2X36T - 566 TEU Sold for $7.9 mill. to Korean buyers (Sinokor). RO-RO KANO II 4,400/78 - DENMARK - MAK 4,500-850 LM - 450 CARS - 323 TEU Sold for $2.8 mill. to undisclosed buyers. FRESH FOR SALE TANKERS AMORE MIO II 159,950/01 - DAEWOO - B&W 22,923 - COILED - IGS - SBT - COW - DH Vessel will be inspectable in Long Beach where ETA 1st December. BULKERS SAFFRON 50,341/04 - KAWASAKI - B&W 11,001-5HH - C 4X30.5T Vessel inspectable in New Orleans where ETA around 29th November. 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 13 9 10 6 SUEZMAX 9 4 5 1 AFRAMAX 11 10 12 7 PANAMAX TANKER 10 8 8 9 CAPE/COMBO (100,000 dwt +) 14 5 5 8 PANAMAX/KAMSARMAX BULKER 3 21 21 19 LOCATION TANKERS BULK CARRIERS CHINA 420 400 INDIA 465 430 BANGLADESH N/A N/A PAKISTAN 465 420 DEMOLITION: INDIA M/T SOUTHWAY Reef SKIER STAR M/T IMAN 1,412/88-21,200 LDT - USD 465/LDT 12,475/81-7,610 LDT - USD 440/LDT 6,237/86-3,113 LDT - USD 465/LDT PAKISTAN M/V MAHA VIDYA 27,451/77-6,542 LDT - USD 455/LDT WeberSeas, Weekly Market Report Page 4 of 10
TYPE OF SHIP * Includes ALL vessels on order NEWBUILDING STATISTICS 2010 2011 2012 2013 2014 * TOTAL ORDERBOOK ULCC/VLCC 17 70 60 34 9 190 SUEZMAX 19 54 55 19 2 149 AFRAMAX 17 71 48 16 2 154 PANAMAX 9 38 13 17 3 80 MR 46 114 65 24 5 254 10-35,000 DWT 99 151 43 13 306 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT 59 330 174 7 622 40 258 218 47 14 577 PANAMAX 22 119 71 21 233 SUPRAMAX / HANDYMAX 131 411 238 59 839 HANDYSIZE 116 330 163 54 11 674 18 NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 2 59,800 dwt Bulker Hyundai Vinashin 2012 n/a Hyundai Merchant Marine 4 59,100 dwt Bulker Tsuneishi 2013 $32.8 Pacific Basin 6 35,000 dwt Bulker Jianmen Nanyang 2012/13 $25.5 Pacific Basin + 2 options 2 317,000dwt Tanker Jiansu Rongsheng 2013 $110 Shipping Corp of India + 2 options 3 6,500 teu Container STX 2012/13 $83 Shipping Corp of India WeberSeas, Weekly Market Report Page 5 of 10
BALTIC DRY EXCHANGE RATES THIS WEEK LAST WEEK CHANGE CHANGE % Baltic Dry Index 2155 2313-158 -6,83% Baltic Capesize 36 3612-86 -2,38% Baltic Panamax 2038 2365-327 -13,83% Baltic Supramax 1389 1516-127 -8,38% Baltic Handysize 788 833-45 -5,40% 14000 12000 10000 8000 6000 4000 2000 0 4-Jan-05 4-Apr-05 25000 20000 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 4-Jul-08 BDI 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 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 4-Apr-08 4-Jul-08 BCI 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 BPI 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 WeberSeas, Weekly Market Report Page 6 of 10
BALTIC WET EXCHANGE RATES THIS WEEK LAST WEEK CHANGE CHANGE % Baltic Clean Tanker 703 619 84 13,57% Baltic Dirty Tanker 882 803 79 9,84% 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 15-Oct-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 21-Oct-10 WeberSeas, Weekly Market Report Page 7 of 10
MAJOR CAPITAL MARKETS INDEX THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEKS HIGH WEEKS LOW DOW JONES 11.357,04 11.215,13 141,91 1,27% 11.505,80 9.596,04 NASDAQ 2.555, 2.577,34-21,82-0,85% 2.579,62 2.061,14 AIM 848,90 831,70 17,20 2,07% 848,90 639,40 NIKKEI 9.861,46 9.358,78 502,68 5,37% 11.408,20 8.796,45 NAME SYMBOL PUBLIC COMPANIES DRY-CARGO SECTOR THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEK HIGH WEEK LOW DIANA DSX 13,27 13,98-0,71-5,08% 17,90 10,75 DRYSHIPS DRYS 5,59 5,63-0,04-0,71% 7,02 3,28 GOLDENPORT HOLDINGS GPRT.L 130,50 126,00 4,50 3,57% 140,00 96,00 EAGLE BULK EGLE 5,30 5,71-0,41-7,18% 6,59 3,91 EXCEL MARITIME EXM 5,99 6,51-0, -7,99% 8,00 4,59 GENCO GNK 15,56 17,24-1,68-9,74% 27,10 14,20 NAVIOS HOLDINGS NM 5,56 6,16-0,60-9,74% 7,55 4,38 NAME SYMBOL TANKER/ENERGY SECTOR THIS WEEK* LAST WEEK* CHANGE CHANGE % WEEK HIGH WEEK LOW CAPITAL PRODUCT PARTNERS CPLP 8,49 8,64-0,15-1,74% 10,06 5,31 GENERAL MARITIME GMR 4,14 4,24-0,10-2,36% 8,82 3,58 OMEGA NAVIGATION ONAV 1,39 1,36 0,03 2,21% 4,04 1,14 STEALTHGAS GASS 4,99 4,99 0,00 0,00% 6,60 3,93 TEN TNP 9,86 10,31-0,45-4,36% 18,34 9,73 CONTAINER SECTOR NAME SYMBOL THIS LAST CHANGE CHANGE WEEK WEEK WEEK* WEEK* % HIGH LOW DANAOS DAC 4,08 4,19-0,11-2,63% 5,25 3,50 * Prices reflect Thursday s closing values. Prices in US$ except for Goldenport Holdings which is in GDP. WeberSeas, Weekly Market Report Page 8 of 10
RATES OF EXCHANGE THIS WEEK LAST WEEK CHANGE CHANGE % Euro / $ 1,3687 1,3708-0,0021-0,15% Sterling / $ 1,6021 1,6064-0,0043-0,27% $ / Yen 83,425 82,155 1,270 1,55% $ / Nok 5,9750 5,9324 0,0426 0,72% $ / Won 1.132,25 1.112,45 19,80 1,78% Brent Crude 82,09 86,13-4,04-4,69% LIBOR (3-month) 0,28% 0,29% -0,01-3,45% 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) 30,000/D 36,000/D 37,500/D SUEZMAX (150,000 dwt) 26,000/D 27,500/D 29,000/D AFRAMAX (110,00 dwt) 18,500/D 20,000/D 21,500/D PANAMAX (72,000 dwt) 16,250/D 17,000/D 17,750/D MR (45-50,000 dwt) 13,000/D 14,250/D 14,750/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $465.50 $489.50 $466.00 $485.50 180cst: $480.50 $507.00 $593.50 $493.50 MGO: $727.50 $742.50 $724.50 $722.50 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