Post on 11-Jul-2020
Market insight
By Stelios Kollintzas
Specialized Products Desk
It is evident that that freight rates across the edible oil markets worldwide
are low. A�er a tradi�onal slow January, Chinese New Year had li!le effect
on increasing demand, when usually there is a rush of buying. Although
there are no clear signs of a sharp recovery, March already looks slightly
firmer and we expect freight rates to correct during the 2nd quarter of the
year.
In par�cular, freight rates in Asia’s long-haul palm oil routes, had been de-
scending for almost 6 months un�l the end of February. Last seen hire rates
on the usual �me charter trip to the West for the new building eco-ships are
18,250-18,500 usd/pd delivery ex-yard, whereas the normal MRs have been
reported earnings of 17,000-17500 usd/pd. Volumes across inter-regional
palm oil markets (China-India), have also dropped considerably during the
same period, with a scarce of cargoes against long lists of available ships.
However, we recently witnessed a slight increase of palm oil shipments into
India, a�er the country boosted its purchases due to a shor:all of its domes-
�c harvest of cooking oil. Yet, we s�ll have not seen the respec�ve reac�on
on rates. China’s demand of palm oil is weak, largely due to Chinese palm
buyers switching to cheaper soya bean oil. The going rates for Straits/WCI
and Straits/ECI bss 10-15k shipments are between 18-20 usd/pmt. Mid Chi-
na shipments pay around 38-39 usd/pmt bss 8-12k shipments.
Looking West, the export market for vegetable oils from Argen�na and Brazil
is not showing any signs of slowing down. Export volumes for February-
March along with demand from India and China have been healthy and
freight rates have been moving sideways - despite a recent spike in CPP mar-
ket across the Atlan�c. As such, it remains to see if the strong CPP market
will last and what the impact on freight rates ex-S. America will be. Overall,
with the new crops coming out in April/May, the outlook for the following
months remains posi�ve. In addi�on, a so� palm oil market in the East is a
good reason for many Owners to stay West, which may force charterers pay
an extra dollar in order to make Owners take the risk and sail East. Current-
ly, freight rates to W.C / E.C. India basis 30-35,000 MTS are se!led between
55-57 usd/pmt basis 1:2 and about 51-53 usd/pmt basis 2:2 on 40–42,000
MTS shipments.
Once again, Black Sea ac�on is concentrated on the intermediate sizes with
steady fixtures concluded for February and March. On the other hand, car-
go stems for MR and Handy size ships have again been rare. It is not surpris-
ing that many FOSFA posi�ons, which open in the East Med - Black Sea area
are forced to look for employment into the CPP market. Overall, freight
rates for cargoes to MED, CONT and East of Suez are so�. Shipments of
19/23 kmtons sunflower oil to India are paying as much as mid-high 50s usd,
where 18/19 kmtons shipments are concluded at low 40s usd. At last, since
the sanc�ons against Iran were li�ed earlier this year, more and more car-
goes are quoted in the market, but Owners are s�ll not rushing to get in-
volved in this trade.
On a closing note, we should highlight that Palm oil inventories in Malaysia
fell to an 11-month low in February as dry weather across SE Asia in August,
triggered by the strongest El Nino in almost two decades, hurt the crop in
the world’s second-largest producer. Decline in produc�on, increased prices
and further stockpile shrinkage are expected to be significant the next
months. At the �me of wri�ng, many of the global edible oil players are
gathered in Malaysia for the annual Palm Oil Conference where the afore-
men�oned issues will be amongst the major topics. .
Chartering (Wet: So� - / Dry: Stable + )
The BDI noted another weekly increase with rates for Capes once again
missing on the market upside. The BDI closed today (08/03/2016) at 366
points, up by 12 points compared to Monday’s levels (07/03/2016) and
an increase of 34 points when compared to previous Tuesday’s closing
(01/03/2016). Rates for the crude carriers market so�ened last week,
while healthy Middle East ac�vity is expected to support the market in
the following days. The BDTI Monday (07/03/2016) was at 738 points,
an increase of 8 points and the BCTI at 515, unchanged compared to
previous Monday’s (29/02/2016) levels.
Sale & Purchase (Wet: Stable + / Dry: Firm +)
SnP ac�vity sustained its volume last week, with interest in Dry Bulk
tonnage being concentrated around the geared sizes, which seem to be
steadily regaining ground in the freight market. On the tanker side, we
had the sale of the “GREAT WHITE” (104,024dwt-blt 99, S. Korea) which
was sold to Indonesian owner, Soechi, for a price in the region of
$15.0m. On the dry bulker side, we had the sale of the “C. WINNER”
(169,237dwt-blt 08, S. Korea), which was sold to Greek owner, Brave
Mari�me, for a price in the region of $11.3m.
Newbuilding (Wet: Stable + / Dry: Stable + )
The increased number of orders surfacing last week brought back mem-
ories of the busy market of last year, however, given the fact the most
of these deals concern orders for tankers below 20,000dwt placed at
smaller yards as well as older deals surfacing now, we reiterate our
opinion that no sharp surge in ordering ac�vity should be expected any-
�me soon. Amidst con�nuously falling newbuilding prices and ailing
appe�te for ordering across all sectors, confirma�on of the Vale linked
order for 30 VLOCs, firstly reported back in November 2015, has brought
more clouds over the Dry Bulk market. The 30 Valemaxes are scheduled
for delivery in 2018, a �me during which the Capesize market is ex-
pected to be enjoying balanced supply as a result of non-existent order-
ing and intense scrapping during 2015 and 2016. The fact that even
within an environment in which Capes are being fixed at historically low
rates, key for the trade players in the likes of Vale chose to order in-
stead, outlines the structural nature of the challenges the segment is
facing. In terms of recently reported deals, Fairfield Maxwell placed an
order for one firm MR (49,800dwt) at Onomichi, in Japan with delivery
set in 2018.
Demoli)on (Wet: Firm + / Dry: Firm + )
Following almost three months of con�nuous price declines, the demoli-
�on market finally had to offer some good news last week as average
prices across both the Indian subcon�nent and China rebounded by
$10/ldt. The long awaited upward correc�on, which was purely inspired
by the recent jump in commodity prices, including steel, already had a
substan�al posi�ve effect on market sen�ment and resulted in in-
creased demand by breakers, a big part of whom returned to the market
with renewed appe�te. Nonetheless, given the market’s poor perfor-
mance so far this year, it is certainly difficult to be op�mis�c that this
rally could extend for much longer, as the spike was caused purely due
to posi�ve sen�ment surrounding announced Chinese ac�on to revive
growth. For fundamentals to once more become favorable for the dem-
oli�on market, the price of Chinese steel needs to move higher and stay
there. This, will happen on the back of strengthening demand by build-
ers in the country and not traders, who are the ones currently causing
the price surge. Prices this week for wet tonnage were at around 140-
250 $/ldt and dry units received about 120-235 $/ldt.
Weekly Market Report
Issue: Week 10 | Tuesday 8th
March 2016
© Intermodal Research 08/03/2016 2
2015 2014
WS
points$/day
WS
points$/day $/day $/day
265k MEG-JAPAN 52.5 39,381 52.5 39,650 -0.7% 65,906 30,469
280k MEG-USG 28 18,810 32 23,012 -18.3% 49,575 17,173
260k WAF-USG 65 55,988 70 61,790 -9.4% 76,251 40,541
130k MED-MED 80 31,423 85 35,289 -11.0% 50,337 30,950
130k WAF-USAC 65 23,960 70 26,682 -10.2% 40,490 24,835
130k BSEA-MED 72.5 27,965 77.5 31,487 -11.2% 50,337 30,950
80k MEG-EAST 117.5 31,079 117.5 31,518 -1.4% 34,131 19,956
80k MED-MED 80 17,374 95 24,544 -29.2% 37,127 28,344
80k UKC-UKC 92.5 20,790 92.5 21,141 -1.7% 39,338 33,573
70k CARIBS-USG 140.0 36,009 145 37,277 -3.4% 36,519 25,747
75k MEG-JAPAN 87.5 18,953 88 19,314 -1.9% 30,482 16,797
55k MEG-JAPAN 105 16,998 97.5 15,069 12.8% 24,854 14,461
37K UKC-USAC 112.5 12,323 115 12,412 -0.7% 19,973 10,689
30K MED-MED 130 9,610 135 10,986 -12.5% 24,473 18,707
55K UKC-USG 100 17,323 110 20,182 -14.2% 27,228 23,723
55K MED-USG 100 16,493 110 19,425 -15.1% 26,083 21,089
50k CARIBS-USAC 130 22,449 130 22,357 0.4% 27,146 25,521
Dir
tyA
fram
axC
lean
VLC
CS
ue
zmax
Spot Rates
Vessel Routes
Week 10 Week 9$/day
±%
Mar-16
avg
Feb-16
avg±% 2015 2014 2013
300KT DH 76.5 78.9 -3.0% 80.9 73.8 56.2
150KT DH 56.5 58.5 -3.4% 59.5 50.4 40.1
110KT DH 40.5 43.0 -5.8% 45.3 38.9 29.2
75KT DH 36.0 36.4 -1.0% 35.8 33.0 28.0
52KT DH 27.5 27.6 -0.5% 27.3 27.5 24.7
Aframax
LR1
VLCC
Suezmax
Indicative Market Values ($ Million) - Tankers
Vessel 5yrs old
MR
Chartering
Rates for the crude carriers market remained on a downward path last
week despite the fact that the Middle East was busy overall compared to
the week prior, as the number of vessels looking for employment in the
region didn't allow owners to get the upper hand. Saying that, the lack of
extreme vola�lity remains evidence of an overall healthy market. We ex-
pect rates to win some of their lost ground back in the following days, as
the supply demand rela�onship looks to be regaining its balance as far as
the second half of March is concerned. The recent jump in oil prices, which
touched their 2016 highs, gathered naturally everyone’s a!en�on. Bold
statements from the Chinese administra�on in regards to addi�onal s�mu-
lus together with what seems as alignment of major oil producers in cuTng
back produc�on, pushed oil up, fact that could support demand especially
in an�cipa�on of higher prices ahead.
Substan�ally firmer enquiry managed to eat into open VL posi�ons in the
Middle East but the posi�ve effect on rates is yet to be witnessed given the
excess supply of tonnage that has been building up since mid-Feb in the
region.
The W. Africa Suezmax also saw improved ac�vity with rates covering part
of their losses during the second half of the week, while the Black Sea rate
performance aligned with that of W. Africa. Steady demand in the North
Sea kept Afra rates unchanged, while earnings in the Med moved to new
year low before improving a bit. The Caribs Afra closed off the week slightly
lower with owners s�ll benefiTng form delays in the USG .
Sale & Purchase
In the Aframax sector, we had the sale of the “GREAT WHITE” (104,024dwt-
blt 99, S. Korea) which was sold to Indonesian owner, Soechi, for a price in
the region of $15.0m.
In the MR sector, we had the sale of the “SEARAMBLER” (37,135dwt-blt 01,
S. Korea) which was sold to UAE based buyers, for a price in the region of
$11.0m.
Wet Market
Indicative Period Charters
-6 mos - 'LEOPARD SEA' 2013 51,800 dwt
- - $17,750/day - Cargill
-36 mos - 'PORTMAN' 1998 47,400 dwt
- - $17,600/day - Petrobras
2070
120170220270320370420470520
WS
po
ints
DIRTY - WS RATESTD3 TD6 TD9
Week 10 Week 9 ±% Diff 2015 2014
300k 1yr TC 45,000 45,000 0.0% 0 46,135 28,346
300k 3yr TC 40,000 41,000 -2.4% -1000 42,075 30,383
150k 1yr TC 35,000 35,000 0.0% 0 35,250 22,942
150k 3yr TC 31,000 32,000 -3.1% -1000 33,219 24,613
110k 1yr TC 27,500 29,000 -5.2% -1500 26,808 17,769
110k 3yr TC 24,000 25,000 -4.0% -1000 24,729 19,229
75k 1yr TC 23,000 23,500 -2.1% -500 23,596 16,135
75k 3yr TC 21,000 21,500 -2.3% -500 20,580 16,666
52k 1yr TC 17,750 17,750 0.0% 0 17,865 14,889
52k 3yr TC 17,500 18,250 -4.1% -750 16,638 15,604
36k 1yr TC 16,750 16,750 0.0% 0 16,101 14,024
36k 3yr TC 16,250 16,250 0.0% 0 15,450 14,878
Panamax
MR
Handy
TC Rates
$/day
VLCC
Suezmax
Aframax
60
90
120
150
180
210
240
270
WS
po
ints
CLEAN - WS RATESTC1 TC2 TC5 TC6
© Intermodal Research 08/03/2016 3
0
500
1,000
1,500
2,000
2,500
3,000
Ind
ex
Baltic Indices
BCI BPI BSI BHSI BDI
0
5,000
10,000
15,000
20,000
25,000
$/d
ay
Average T/C Rates
AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI
Chartering
With the BDI marking its third consecu�ve posi�ve weekly closing, it feels
safe to say that the market is regaining its balance; slowly and painfully
without a doubt but given the performance of earnings during the past
months these small up�cks is all owners can hope for now. Once again,
rates for Capes snubbed the upside, but we do expect to see sooner rather
than later some sort of posi�ve movement for Capes as well. A�er all, an
upward correc�on purely on the back of an overall improving market is
now long due for the segment. Looking ahead, the jump in commodity pric-
es on the back of Chinese policymakers commiTng once again to boost
growth together with indica�ons that a round of substan�al iron ore re-
stocking is coming up before summer, has pushed the price of the com-
modity over 20% up yesterday. Whether this could further help the
Capesize market is yet to be seen. Let’s not forget that it has been the ex-
cess supply of tonnage and not actual volumes of iron ore imports that
have been hammering rates.
Capesize vessels kept opera�ng in an environment of limited enquiry and
historically low rates, while any small up�cks were quick to disappear as the
re are just too many vessels compe�ng for very few cargoes across both
basins.
Fresh Panamax inquiries from East Coast South America con�nued coming
up generously this week as well, however the rest of the Atlan�c, including
the U.S. Gulf, remain rather slow. The Pacific basin saw slightly improved
numbers as well, with increased Australian coal cargoes providing support
to rates in the region.
On the geared sizes front, there has been a strong sense of op�mism lately
as ECSA has become very ac�ve, while in the Pacific reported business was
steadily above last dones, signalling a further improving market.
Sale & Purchase
In the Capesize sector we had the sale of the “C. WINNER” (169,237dwt-blt
08, S. Korea), which was sold to Greek owner, Brave Mari�me, for a price in
the region of $11.3m.
In the Ultramax sector we had the resale of the “IWAGI 395” (61,000dwt-blt
16, Japan) which was reported being sold to Japanese buyers for a price of
$18.5m.
Mar-16 avg Feb-16 avg ±% 2015 2014 2013
180k 20.0 20.9 -4.2% 33.1 47.5 35.8
76K 11.0 12.3 -10.2% 17.2 24.8 21.3
56k 9.0 9.8 -7.7% 16.1 25.2 21.5
30K 7.0 7.8 -9.7% 13.3 20.0 18.2Handysize
Capesize
Panamax
Supramax
Indicative Market Values ($ Million) - Bulk Carriers
Vessel 5 yrs old
Indicative Period Charters
-4 to 7 mos - 'MAVERICK GUARDIAN' 2012 82,740 dwt
-Lianyungang 22/27 Feb - $ 5,100/day -Oldendorff
- 10 to 13 mos - 'OCEAN GARLIC' 2012 82,036 dwt
- Singapore 15 Feb - $ 4,850/day - BDH
Dry Market
Index $/day Index $/day Index Index
BDI 349 327 22 713 1,097
BCI 164 $2,221 177 $2,396 -13 -7.3% 1,009 1,943
BPI 386 $3,098 352 $2,823 34 9.7% 692 960
BSI 371 $3,875 333 $3,481 38 11.3% 663 937
BHSI 232 $3,446 212 $3,146 20 9.5% 365 522
26/02/2016
Baltic IndicesWeek 10
04/03/2016
Week 9Point
Diff
2015 2014$/day
±%
180K 6mnt TC 4,500 4,500 0.0% 0 9,969 22,020
180K 1yr TC 5,000 5,000 0.0% 0 10,263 21,921
180K 3yr TC 6,500 6,500 0.0% 0 11,243 21,097
76K 6mnt TC 4,750 4,750 0.0% 0 7,921 12,300
76K 1yr TC 4,750 4,750 0.0% 0 7,705 12,259
76K 3yr TC 6,000 6,250 -4.0% -250 8,724 13,244
55K 6mnt TC 4,500 4,250 5.9% 250 8,162 12,008
55K 1yr TC 5,500 5,250 4.8% 250 7,849 11,589
55K 3yr TC 6,750 6,750 0.0% 0 8,181 11,585
30K 6mnt TC 4,250 4,250 0.0% 0 6,690 9,113
30K 1yr TC 4,250 4,250 0.0% 0 6,897 9,226
30K 3yr TC 5,750 5,750 0.0% 0 7,291 9,541Han
dys
ize
Period
2014
Pa
na
ma
xS
up
ram
ax
Week
10
Week
9
Cap
esi
ze
2015$/day ±% Diff
© Intermodal Research 08/03/2016 4
Secondhand Sales
Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments
AFRA PACIFIC LONDON 113,334 1999SAMSUNG HEAVY
INDUSTRI, S. KoreaB&W May-19 DH $ 15.0m undis closed
AFRA GREAT WHITE 104,024 1999SAMSUNG HEAVY
INDUSTRI, S. KoreaMAN-B&W Feb-19 DH $ 15.0m
Indones ian
(Soechi )
AFRA KASSOS 95,420 1995HYUNDAI HEAVY
INDS - U, S. KoreaB&W Aug-20 DH $ 8.3m Indi an (Arya)
MR SEARAMBLER 37,135 2001HYUNDAI MIPO
DOCKYARD, S. KoreaB&W Oct-16 DH $ 11.0m UAE based
PROD/
CHEMKASUGTA 19,822 2004
FUKUOKA FUKUOKA,
JapanB&W Aug-19 DH $ 17.2m Chinese
PROD/
CHEMDEVA MARIA 13,921 1990
SHIN KURUSHIMA
AKITSU, JapanB&W Apr-20 DH $ 2.5m undis closed
Tankers
Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
CAPE C. WINNER 169,237 2008
DAEHAN
SHIPBUILDING -,
S. Korea
MAN-B&W Nov-18 $ 11.3mGreek (Brave
Mari time)
PMAXLOWLANDS
CAMELLIA76,807 2006
SASEBO SASEBO,
JapanMAN-B&W Dec-19 $ 6.5m Greek
UMAX IWAGI 395 61,000 2016 IWAGI, Japan MAN-B&W -4 X 30,7t
CRANES$ 18.5m Japanese
SMAXCHANG CHENG
GUO XING57,173 2010
XIAMEN
SHIPBUILDING IN,
China
MAN-B&W -4 X 30t
CRANES$ 6.9m
SMAXCHANG CHENG
GUO RONG57,080 2010
XIAMEN
SHIPBUILDING IN,
China
MAN-B&W -4 X 30t
CRANES$ 6.9m
SMAXCHANG CHENG
GUO RUI57,000 2011
YANGFAN GROUP
CO LTD, ChinaMAN-B&W -
4 X 30t
CRANES$ 7.3m
SMAX CAPITAL 56,000 2013
HYUNDAI-
VINASHIN SHIPY,
Vietnam
MAN-B&W Feb-184 X 30t
CRANES$ 8.3m
SMAX SECRET 56,000 2012
HYUNDAI-
VINASHIN SHIPY,
Vietnam
MAN-B&W Jan-184 X 35t
CRANES$ 8.3m
SMAX GLOBAL ISLAND 53,556 2004 IWAGI, Japan MAN-B&W Jul -194 X 30,5t
CRANES$ 4.5m Greek
HMAXAURORA
SAPPHIRE48,893 2000
IHI - TOKYO,
JapanSulzer Jan-20
4 X 30t
CRANES$ 2.9m Banglades i
HANDY CS CHARA 30,634 2006COCHIN
SHIPYARD, IndiaMAN-B&W Apr-16
4 X 30t
CRANES$ 4.3m Greek (Tide Line)
Chinese (Jiangsu
Suneng Logis ti cs ) at auc�on
Greek
Bulk Carriers
© Intermodal Research 08/03/2016 5
Secondhand Sales
Name Dwt Built Yard M/E SS due Gear Price Buyers Comments
SCL MARGRIT 7,776 2009TIANJIN XINHE
SHIPBUIL, ChinaMAN-B&W Feb-19 $ 2.9m
SCL ELISE 7,694 2009TIANJIN XINHE
SHIPBUIL, ChinaMAN-B&W Jul -19 $ 2.9m
SCL NICOLE 7,678 2009TIANJIN XINHE
SHIPBUIL, ChinaMAN-B&W Oct-19 $ 2.9m
SAN NICOLAS 5,099 2000 JINLING, China MaK Jan-202 X 40t
CRANES$ 1.6m undis clos ed
ADDI L 4,557 1995 SLIP, Russ ia Deutz - $ 1.7m undis clos ed
FAABORG 3,469 2004SLOVENSKE,
SlovakiaMaK Mar-19
2 X 35t
CRANES$ 3.0m undis clos ed
CONTENDER 3,155 1998
BARKMEIJER
STROOBOS,
Netherlands
MaK Apr-17 undis clos edDutch( Van Oord
NV)
undis clos ed
MPP/General Cargo
Size Name Teu Built Yard M/E SS due Gear Price Buyers Comments
POST
PMAX
CMA CGM
CORNEILLE6,572 2009
HANJIN HI &
CONST - BU, S.
Korea
MAN-B&W Jun-19 $ 60.0m undisclosed incl. 9yr T/C
PMAXNORDIC
WISMAR3,421 2011
RONGCHENG
SHENFEI SHIP,
China
Wartsi la Nov-163 X 45t
CRANES,1 X
35t CRANES$ 20.0m
Norwegian
(NRP)
finance attached,
incl. T/C at
$11,500/day
Containers
© Intermodal Research 08/03/2016 6
The increased number of orders surfacing last week brought back memories
of the busy market of last year, however, given the fact the most of these
deals concern orders for tankers below 20,000dwt placed at smaller yards as
well as older deals surfacing now, we reiterate our opinion that no sharp
surge in ordering ac�vity should be expected any�me soon. Amidst con�nu-
ously falling newbuilding prices and ailing appe�te for ordering across all
sectors, confirma�on of the Vale linked order for 30 VLOCs, firstly reported
back in November 2015, has brought more clouds over the Dry Bulk market.
The 30 Valemaxes are scheduled for delivery in 2018, a �me during which
the Capesize market is expected to be enjoying balanced supply as a result of
non-existent ordering and intense scrapping during 2015 and 2016. The fact
that even within an environment in which Capes are being fixed at historical-
ly low rates, key for the trade players in the likes of Vale chose to order in-
stead, outlines the structural nature of the challenges the segment is facing.
In terms of recently reported deals, Fairfield Maxwell placed an order for one
firm MR (49,800dwt) at Onomichi, in Japan with delivery set in 2018.
Newbuilding Market
20
60
100
140
180
mil
lio
n $
Tankers Newbuilding Prices (m$)
VLCC Suezmax Aframax LR1 MR
Week
10
Week
9±% 2015 2014 2013
Capesize 180k 45.5 45.5 0.0% 49.9 56 49
Kamsarmax 82k 26.0 26.0 0.0% 27.8 30 27
Panamax 77k 25.5 25.5 0.0% 27.1 29 26
Ultramax 63k 24.0 24.0 0.0% 25 27 25
Handysize 38k 20.0 20.0 0.0% 21 23 21
VLCC 300k 92.0 92.5 -0.5% 95.5 99 91
Suezmax 160k 61.5 62.0 -0.8% 64 65 56
Aframax 115k 50.5 51.0 -1.0% 53 54 48
LR1 75k 44.0 44.5 -1.1% 45.8 46 41
MR 50k 35.0 35.5 -1.4% 36.1 37 34
190.0 190.0 0.0% 190.0 186 185
77.0 77.0 0.0% 77.4 78 71
68.0 68.0 0.0% 68.0 67 63
44.0 44.0 0.0% 45.5 44 41
Vessel
Indicative Newbuilding Prices (million$)
Bu
lke
rsTa
nke
rs
LNG 160k cbm
LGC LPG 80k cbm
MGC LPG 55k cbm
SGC LPG 25k cbm
Gas
10
30
50
70
90
110
mil
lio
n $
Bulk Carriers Newbuilding Prices (m$)
Capesize Panamax Supramax Handysize
Units Type Yard Delivery Buyer Price Comments
2 Tanker 310,000 dwt NACKS, China 2017-2018 Japanese (Kawasaki Kisen) undisclosedolder deal surfacing
now
1 Tanker 49,800 dwt Onomichi, Japan 2018USA based (Fairfield-
Maxwell)undisclosed total 3 on order
3 Tanker 17,500 dwtPT Multi Ocean
Shipyard, Indonesia2017 $ 25.0m
3 Tanker 17,500 dwtPT Daya Radar Utama,
Indonesia2017 $ 25.0m
2 Tanker 17,500 dwtPT Anggrek Hitam,
Indonesia2017 $ 25.0m
2 Tanker 6,500 dwt Pha Rung, Vietnam 2018 S. Korean (BS Shpg.) $ 13.0m IMO-II
1 Tanker 6,500 dwt Pha Rung, Vietnam 2018 S. Korean (Y-Entec) $ 13.0m IMO-II
4 Bulker 34,500 dwt Oshima, Japan 2018 Canadian (Fednav) undisclosedlakes fitted, older
deal surfacing now
Newbuilding OrdersSize
Indonesian (Pertamina)
© Intermodal Research 08/03/2016 7
Following almost three months of con�nuous price declines, the demoli�on
market finally had to offer some good news last week as average prices
across both the Indian subcon�nent and China rebounded by $10/ldt. The
long awaited upward correc�on, which was purely inspired by the recent
jump in commodity prices, including steel, already had a substan�al posi�ve
effect on market sen�ment and resulted in increased demand by breakers, a
big part of whom returned to the market with renewed appe�te. Nonethe-
less, given the market’s poor performance so far this year, it is certainly diffi-
cult to be op�mis�c that this rally could extend for much longer, as the spike
was caused purely due to posi�ve sen�ment surrounding announced Chinese
ac�on to revive growth. For fundamentals to once more become favorable
for the demoli�on market, the price of Chinese steel needs to move higher
and stay there. This, will happen on the back of strengthening demand by
builders in the country and not traders, who are the ones currently causing
the price surge. Prices this week for wet tonnage were at around 140-250
$/ldt and dry units received about 120-235 $/ldt.
The highest price amongst recently reported deals, was that paid by Indian
breakers for the Container vessel “NORTHERN DIVINITY” (45,117dwt-
14,446ldt-blt 85), which received $257/ldt.
Demoli)on Market
Week
10
Week
9±% 2015 2014 2013
Bangladesh 250 240 4.2% 360 469 422
India 250 240 4.2% 361 478 426
Pakistan 250 240 4.2% 366 471 423
China 140 130 7.7% 193 313 365
Bangladesh 230 220 4.5% 341 451 402
India 235 225 4.4% 342 459 405
Pakistan 230 220 4.5% 343 449 401
China 120 110 9.1% 174 297 350
Dry
Indicative Demolition Prices ($/ldt)
Markets
We
t
120
220
320
420
520
$/l
dt
Wet Demolition Prices
Bangladesh India Pakistan China
50
150
250
350
450
550
$/l
dt
Dry Demolition Prices
Bangladesh India Pakistan China
Name Size Ldt Built Yard Type $/ldt Breakers Comments
QUORN 179,869 22,586 1996 SASEBO SASEBO, Japan BULKER $ 246/Ldt Bangladeshi
SUNNY VOYAGER 152,025 18,254 1994CHINA SHIPBUILDING
KEE, TaiwanBULKER $ 247/Ldt Bangladeshi
NORTHERN DIVINITY 45,117 14,446 1997HYUNDAI HEAVY INDS -
U, S. KoreaCONT $ 257/Ldt Indian
as-is Singapore,
incl. 200T ROB
THE OPENER 70,029 12,126 1994HUDONG SHIPYARD,
ChinaBULKER $ 238/Ldt undisclosed
option India/Pakistan,
incl. 300T ROB
AQUARIA 73,236 10,481 1994SAMSUNG HEAVY
INDUSTRI, S. KoreaBULKER $ 240/Ldt Indian
KYTHNOS WARRIOR 72,072 9,617 1996HITACHI ZOSEN -
MAIZUR, JapanBULKER $ 230/Ldt Indian
SEA GLORY 27,279 6,935 1997HUDONG SHIPBUILDING
GR, ChinaBULKER $ 135/Ldt Chinese
FLORA 26,587 5,618 1985KANASASHI ZOSEN -
TOYO, JapanBULKER $ 230/Ldt undisclosed
option India/Pakistan,
incl. 300T ROB
FORTUNE
NAVIGATOR8,515 4,246 1998 MURAKAMI HIDE, Japan CONT $ 245/Ldt Indian
PORT NUMBAY 7,920 3,240 1983RICKMERS RICKMERS,
GermanyGC $ 230/Ldt Bangladeshi
MIGHTY PLEIADES 68,962 1997IMABARI MARUGAME,
JapanBULKER $ 240/Ldt Indian
Demolition Sales
The informa�on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa�on to be factual and reliable without mak-
ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc�on of the above review, no liability can be accepted for any loss or damage incurred in any way
whatsoever by any person who may seek to rely on the informa�on and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-
producing is allowed, without the prior wri!en authoriza�on of Intermodal Shipbrokers Co.
Compiled by Intermodal Research & Valua�ons Department | research@intermodal.gr
Ms. Eva Tzima | e.tzima@intermodal.gr
Mr. Vassilis Logothe�s | v.logothe�s@intermodal.gr
Market News
“CMA CGM profit dips amid difficult trading condi-
)ons
Jacques Saade-led containership operator expects
market-bea�ng cargo volumes again in 2016. MA
CGM has seen full-year net profit slip by just 3% de-
spite the tough opera�ng environment in the sector.
The world’s third-largest container shipping firm said
net income for 2015 was $567m versus the $584m
seen a year earlier. Revenue was $15.7bn, down 6.4%
from 2014, as a 6.3% increase in transported volumes
was outweighed by the steep fall in freight rates.
Commen�ng on the results, Rodolphe Saade, CMA
CGM Group vice-chairman said: “Our opera�ng per-
formance once again illustrates the strength of our
business model and our capacity to adapt.
“In a challenging market environment, we con�nued
to roll out our strategy while adjus�ng our cost and
financing structure to best effect.
“The beginning of 2016 was tough and marked by
freight rates under pressure. We are therefore
strengthening our con�nuous efforts to adapt and
op�mize our mari�me services as well as our cost
reduc�on program.” Volumes carried in 2015 rose by
6.3% year-on-year to 13mteu supported by the
launch of a vessel-sharing alliance with China Ship-
ping and UASC, as well as expansion on US routes
that allowed it to benefit from an accelera�ng econo-
my in the US...” (Trade Winds)
Commodi)es & Ship Finance
4-Mar-16 3-Mar-16 2-Mar-16 1-Mar-16 29-Feb-16W-O-W
Change %
10year US Bond 1.880 1.830 1.840 1.830 1.740 6.8%
S&P 500 1,999.99 1,993.40 1,986.45 1,978.35 1,932.23 2.7%
Nasdaq 4,717.02 4,707.42 4,703.42 4,689.60 4,557.95 2.8%
Dow Jones 17,006.77 16,943.90 16,899.32 16,865.08 16,516.50 2.2%
FTSE 100 6,199.43 6,130.46 6,147.06 6,152.88 6,097.09 1.7%
FTSE All-Share UK 3,405.27 3,367.83 3,373.43 3,377.18 3,345.84 1.8%
CAC40 4,456.62 4,416.08 4,424.89 4,406.84 4,353.55 3.3%
Xetra Dax 9,824.17 9,751.92 9,776.62 9,717.16 9,495.40 3.5%
Nikkei 17,014.78 16,960.16 16,746.55 16,085.51 16,026.76 6.2%
Hang Seng 20,176.70 19,941.76 20,003.49 19,407.46 19,111.93 4.2%
DJ US Maritime 201.94 196.13 188.84 183.72 185.82 8.8%
$ / € 1.10 1.09 1.09 1.09 1.09 0.6%
$ / ₤ 1.42 1.42 1.41 1.40 1.39 2.6%
¥ / $ 113.80 113.70 113.48 113.92 112.44 -0.2%
$ / NoK 0.12 0.12 0.12 0.12 0.12 2.4%
Yuan / $ 6.52 6.50 6.55 6.54 6.55 -0.2%
Won / $ 1,198.30 1,211.84 1,227.40 1,228.66 1,238.60 -3.6%
$ INDEX 88.77 89.21 89.57 89.93 89.97 -0.4%
Market Data
Cu
rre
nci
es
Sto
ck E
xch
an
ge
Da
ta
1,100
1,150
1,200
1,250
1,300
1,350
25
30
35
40
goldoil
Basic Commodities Weekly Summary
Oil WTI $ Oil Brent $ Gold $
4-Mar-16 26-Feb-16W-O-W
Change %
Rotterdam 313.5 294.0 6.6%
Houston 340.0 343.0 -0.9%
Singapore 320.0 307.0 4.2%
Rotterdam 147.5 137.0 7.7%
Houston 135.0 140.0 -3.6%
Singapore 157.5 147.5 6.8%
Bunker Prices
MD
O3
80
cst
CompanyStock
ExchangeCurr. 04-Mar-16 26-Feb-16
W-O-W
Change %
AEGEAN MARINE PETROL NTWK NYSE USD 7.44 7.14 4.2%
CAPITAL PRODUCT PARTNERS LP NASDAQ USD 3.35 3.31 1.2%
COSTAMARE INC NYSE USD 9.01 7.18 25.5%
DANAOS CORPORATION NYSE USD 4.18 4.45 -6.1%
DIANA SHIPPING NYSE USD 2.84 2.45 15.9%
DRYSHIPS INC NASDAQ USD 0.14 0.11 27.3%
EAGLE BULK SHIPPING NASDAQ USD 1.29 0.69 87.0%
EUROSEAS LTD. NASDAQ USD 1.92 2.00 -4.0%
FREESEAS INC NASDAQ USD 0.02 0.04 -50.0%
GLOBUS MARITIME LIMITED NASDAQ USD 0.13 0.13 0.0%
GOLDENPORT HOLDINGS INC LONDON GBX 13.35 13.12 1.8%
HELLENIC CARRIERS LIMITED LONDON GBX 3.25 4.25 -23.5%
NAVIOS MARITIME ACQUISITIONS NYSE USD 1.78 1.70 4.7%
NAVIOS MARITIME HOLDINGS NYSE USD 1.25 0.82 52.4%
NAVIOS MARITIME PARTNERS LP NYSE USD 1.38 1.03 34.0%
PARAGON SHIPPING INC. NYSE USD 3.41 0.04 8425.0%
SAFE BULKERS INC NYSE USD 0.79 0.55 43.6%
SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.72 2.85 -4.6%
STAR BULK CARRIERS CORP NASDAQ USD 0.92 0.60 53.3%
STEALTHGAS INC NASDAQ USD 3.50 3.10 12.9%
TSAKOS ENERGY NAVIGATION NYSE USD 6.42 5.83 10.1%
TOP SHIPS INC NASDAQ USD 3.50 2.81 24.6%
Maritime Stock Data
© Intermodal Shipbrokers Co
9
08/03/2016
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