Broker’s insight by John Cotzias

China is the largest producer of steel in the world. Current sta�s�cs show

that Chinese steel produc�on accounts for 46% of the world crude steel pro-

duc�on. Chinese output exceeds that of Europe, USA, Russia, and Japan all

combined together. The Chinese produc�on is nearly 6 �mes that of the USA

and all this demand for steel is absorbed by China’s growing industry and

fuels its vast economic growth.

However China is slowing down, and as this growth is based on investment

and real estate, we feel that in general there is an overall tendency invest-

ment’s to be gradually reduced, as China’s Central Bank fights to overcome

the overhea�ng of the Chinese Economy through interest rate rises and re-

serve requirement expansion. Any a-empt to tackle infla�on and reduce it

always results in a slowdown in demand and that is evident in the economic

data we are studying. The Chinese automo�ve industry already shows a y2y

reduc�on of nearly 6.6% which follows another drop in the previous year of

approx. 1.5% so these could well be a clear indica�on that China is shi2ing to

a slower speed of growth! The Cement, automobile, Pig Iron and Electricity

industries are all showing signs that things are not theore�cal but are already

happening. We feel that there is a high likelihood that steel prices will fall

further as a result of the strong connec�on between prices of hot rolled steel

and the currently falling iron ore prices.

If we look at the recent price trend of Iron Ore Fe60% content, it is trading

today at a significant discount compared with prices of 12 months ago when

we had peaked at historical high levels nearing $187 per ton. Since Septem-

ber 2011 when iron/ore was trading at $177 per ton, we saw the commodity

price fall and remain stable un�l today at $135-$136 per ton levels. Histori-

cally if we look at the chart we see that over the past 30 years and up un�l

2004 iron/ore monthly prices were ranging between $9-$15 per ton. Since

2004 the price has shot up more than tenfold.

On the other hand Cold rolled steel prices have increased gradually since

2001, peaking just before the world financial crisis of Oct 2008 when they

dropped drama�cally by more than 60%. China performed over the past 2-3

months some serious overstocking, and has created some large “mountains”

of Iron/Ore stock piles reaching as much as 98.4mil tons, which will likely

need to be replenished at some point. Current sta�s�cs show that China,

overtook Japan to become the world’s greatest coal importer in 2011 and

this coal dependency is due to expand further in 2012 with the growth of

new coal-fired power genera�on plants.

However, the ques�on is, with a slowing economy, how much of the usual

massive intake will be chopped-off the corner? The futures market and prices

for iron ore forward swaps show a higher price that indicates a market belief

of a growing demand in the future. We believe that the current rise in iron

ore forward prices may well indicate a possible restocking of iron/ore by the

Chinese in the near-term. Iron Ore exports from Brazil during Jan 2012 are

seen to be at their lowest levels since 2009 ( something that coincides with

the recent rock bo-om freight levels witnessed for Capes) and this is a figure

that has plenty of room for improvement. We need to stress here that Vale

of Brazil has halted produc�on this past month due to the torren�al rainfall

and as produc�on is geIng back to normal over the past week we feel that

Iron Ore trade, the backbone of dry bulk shipping may have some be-er days

ahead for the Capesize market whose average is down to around $5,500 per

day levels .

Chartering (Wet: Stable+ / Dry: So�er- )

The Dry bulk Index is now only a breadth away from reaching a new

recorded low. The current record low of 663 points was recorded on 5th

December 2008, a level that has not been matched over the past twenty

years. The BDI closed today (31/01/2012) at 680 points, a decrease of 22

points compared to Monday’s (30/01/2012) closure, and down by 127

points compared to the previous Tuesday’s levels (24/01/2012). With

Eastbound ac�vity being limited during the start of the week, rates for

crude oil carriers witnessed a small correc�on, puIng a temporary

pause to their recent recovery path. The BDTI Monday (30/01/2012),

was at 822, 17 point up and the BCTI at 654, an increase of 37 points

compared to the previous Monday’s levels (23/01/2012).

Sale & Purchase (Wet: So�er- / Dry: So�er- )

The market is s�ll holding fairly quiet, with limited buying interest com-

pared to a year ago keeping this essen�ally a buyers market for the mo-

ment. The current uncertainty surrounding the market is making any

sales condi�ons difficult while the lack of cash and rela�vely low freight

rates is keeping asset prices under pressure. On the Tankers side, most

notable was the reported sale of the Product/Chemical Tanker “Clipper

Miki” (19,998dwt-blt 09 Japan) which went to Singapore based buyers

for a price of $ 23.5m. While on the dry bulker of interest was the re-

ported sale of the Handymax “Id Nord” (46,640dwt-blt 99 Japan) which

went to Singaporean buyers for a reported price of around $ 14.8m.

Newbuilding (Wet: Stable- / Dry: Stable- )

With the Lunar New Year Fes�vi�es now over, we could see market

ac�vity pick up slightly once again. Market condi�ons however are not

ideal, as there are already significant worries over the orders already in

place. Several analysts are expressing doubts as to if current orders will

be delivered as planned, as a significant por�on of them s�ll do not have

financial backing in place. The main problems for shipbuilders will be to

provide innova�ve products in order to en�ce owners while at the same

�me provide interest buyers with some sort of access to financing. This

is why many shipbuilders par�cularly in China have been focused in

promo�ng new eco-design vessels with more complex financing struc-

tures such as BBHP. These are all in their infancy stage with few owners

showing keen interest in their current form. With regard to orders this

week, most noteworthy reported deal was the le-er of intent signed by

Norway’s Frontline for six firm MR (51,000dwt) tankers at S.Korea’s STX

for a price of around $ 32.5m each.

Demoli'on (Wet: Firm+ / Dry: Firm+ )

With breakers in the Indian Sub-con�nent remaining very ac�ve, sen�-

ment improved further pushing offered prices up further. Due to this

firm ac�vity specula�on amongst buyers was considerable as many ex-

pect that things may heat up further despite the ample demo candi-

dates available in the market. Even Chinese breakers seem to be taking

a more aggressive approach to such an extent that we wouldn’t be sur-

prised if the price gap decreases further over the next couple of weeks.

Offered Prices have firmed further this week, with wet tonnages now

climbing to around 440-505$/ldt and dry units rising to about 420-485$/

ldt.

Weekly Market Report

Week 04|Tuesday 31st January 2012

© Intermodal Research 31/01/2012 2

6080100120140160180200220240260

WS points

CLEAN - WS RATESTC2 TC4 TC6 TC1

20

40

60

80

100

120

140

160

WS points

DIRTY - WS RATESTD3 TD5 TD8 TD4

Jan-12 Dec-11 ±% 2012 2011 2010

300KT DH 64.0 58.0 10.3% 64.3 77.6 87.2

150KT DH 49.0 47.0 4.3% 49.3 54.4 62.6

105KT DH 37.3 35.4 5.2% 37.5 39.1 44.7

70KT DH 31.9 31.4 1.5% 32.1 35.2 38.8

45KT DH 26.1 25.8 1.3% 26.4 28.4 26.5

Aframax

Panamax

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Week 4 Week 3 ±% Diff 2012 2011

300k 1yr TC 20,500 19,500 5.1% 1000 19,500 25,197

300k 3yr TC 26,250 26,250 0.0% 0 25,575 31,681

150k 1yr TC 16,500 16,500 0.0% 0 16,250 19,837

150k 3yr TC 20,500 20,500 0.0% 0 20,200 23,830

105k 1yr TC 14,500 14,000 3.6% 500 13,875 15,707

105k 3yr TC 16,500 16,500 0.0% 0 16,200 18,335

70k 1yr TC 13,500 13,500 0.0% 0 13,250 14,995

70k 3yr TC 14,750 14,750 0.0% 0 14,450 16,263

45k 1yr TC 14,750 14,500 1.7% 250 14,250 13,918

45k 3yr TC 15,250 15,000 1.7% 250 14,700 14,738

36k 1yr TC 12,750 12,750 0.0% 0 12,500 12,471

36k 3yr TC 13,500 13,500 0.0% 0 13,200 13,412

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

2012 2011

WS

points$/day

WS

points$/day $/day $/day

265k AG-JAPAN 58 34,899 63 43,946 -9% 32,765 18,217

280k AG-USG 38 9,198 38 8,966 0% 5,483 2,504

260k WAF-USG 65 49,718 68 53,178 -4% 49,049 25,714

130k MED-MED 85 31,666 90 35,623 -6% 39,392 25,125

130k WAF-USAC 85 25,765 80 21,129 6% 25,742 13,373

130k AG-CHINA 85 24,125 85 24,057 0% 22,957 14,815

80k AG-EAST 110 17,083 110 17,092 0% 15,989 12,726

80k MED-MED 83 10,598 89 13,445 -7% 17,519 13,577

80k UKC-UKC 100 24,556 120 40,141 -17% 29,767 18,604

70k CARIBS-USG 130 22,355 125 20,015 4% 15,003 8,240

75k AG-JAPAN 88 3,691 88 3,565 0% 5,043 10,467

55k AG-JAPAN 105 4,346 105 4,233 0% 3,488 7,768

37K UKC-USAC 140 9,574 165 14,832 -15% 13,236 11,022

30K MED-MED 175 25,074 180 26,317 -3% 26,968 18,458

55K UKC-USG 120 13,992 118 12,811 2% 12,763 11,266

55K MED-USG 120 12,680 118 11,425 2% 11,556 9,676

50k CARIBS-USAC 110 7,846 100 4,359 10% 6,951 10,700

Spot Rates

Vessel Routes

Week 4 Week 3

±%

Dir

tyA

fram

axC

lean

VLC

CS

ue

zmax

Chartering

It seems as though there was a slight slide in rates this week for VLCCs,

likely due to the lack of Eastbound requirements during the start of the

week. The drop however was fairly small and it seems as though things

were looking firmer on Friday. Though tonnage availability is s�ll ample , it

looks as though we may witness boosted ac�vity over the next couple of

days which could possibly help rates rise further. With the East however s�ll

feeding most of the demand growth for crude, rate hikes as such tend to be

mainly limited to Eastbound voyages.

Rela�vely mixed market condi�ons were seen for Suezmaxes last week, as

the Black Sea/Med region seemed to be plagued by limited ac�vity and

increasing number of open vessels in the area, whereas The WAF was in for

a notable boost and a slight shortage of promptly available vessels. All this

has le2 the market with fairly mixed sen�ment, although there is a slight

bias towards a so2ening market due to the unfavourable posi�on lists.

There was a sudden end to the improving market condi�ons for Aframaxes

in the North Sea, as there was a sudden end to fresh inquires coming in

while there was an increased amount of ballasters arriving causing a sudden

increase in open tonnage. Con�nuing poor condi�ons in the Black Sea/Med

were not helping either, deteriora�ng overall sen�ment and pushing many

owners to ballast North in hope of be-er rates.

Sale & Purchase

Most notable deal this week was the reported sale of the Product/Chemical

Tanker “Clipper Miki” (19,998dwt-blt 09 Japan) which went to Singapore

based buyers for a price of $ 23.5m.

Also worth men�oning is the sale of the Product/Chemical Tanker “Eastern

Goodwill” (8,740dwt-blt 01 Japan) which went to S.Korea’s DM Shipping for

a price of around $ 8.3m.

Wet Market

Indicative Period Charters

- 3+3 mos - 'Eagle Valencia' 2005 306,000dwt

- - $ 30,000/day - PDVSA

- 11+14 mos - 'Politisa Lady' 2005 46,000dwt

- dely West end/Jan - $ 13,750/day - Koch

© Intermodal Research 31/01/2012 3

0

1,000

2,000

3,000

4,000

5,000

Index

Baltic Indices

BCI BPI BSI BHSI BDI

0

10,000

20,000

30,000

40,000

50,000

$/day

Average T/C Rates

AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI

Index $/day Index $/day Index Index

BDI 726 862 -15.8% -136 1,076 1,549

BCI 1,465 $5,566 1,554 $6,688 -5.7% -89 1,887 2,237

BPI 815 $6,488 1,020 $8,131 -20.1% -205 1,229 1,749

BSI 695 $7,268 807 $8,441 -13.9% -112 942 1,377

BHSI 426 $6,264 485 $7,115 -12.2% -59 513 718

27/01/12

Week 3

±%2012 2011Point

Diff20/01/12

Baltic IndicesWeek 4

170K 6mnt TC 14,000 14,000 0% 0 14,575 18,474

170K 1yr TC 17,500 17,500 0% 0 17,763 17,138

170K 3yr TC 17,750 17,750 0% 0 17,825 17,599

70K 6mnt TC 12,500 13,250 -6% -750 13,669 17,238

70K 1yr TC 11,000 11,375 -3% -375 11,388 14,863

70K 3yr TC 11,875 12,125 -2% -250 12,138 14,500

52K 6mnt TC 9,500 12,000 -21% -2,500 11,638 15,587

52K 1yr TC 10,750 11,750 -9% -1,000 11,450 14,308

52K 3yr TC 12,500 12,750 -2% -250 12,450 14,046

45k 6mnt TC 8,250 10,000 -18% -1,750 9,575 13,416

45k 1yr TC 9,250 9,750 -5% -500 9,575 12,450

45k 3yr TC 10,750 11,000 -2% -250 10,700 12,403

30K 6mnt TC 8,000 8,500 -6% -500 8,575 11,712

30K 1yr TC 8,000 9,250 -14% -1,250 9,013 11,787

30K 3yr TC 11,000 11,500 -4% -500 11,138 12,044

Han

dy

max

Ha

nd

ysiz

e

Period

2011

Pa

na

ma

xSu

pra

ma

x

Week

4

Week

3

Cap

esi

ze

2012$/day ±% Diff

Chartering

The downward spiral in Capesize freight rates seems to have slowed down

considerably as it near absolute rock bo-om levels. As expected the Lunar

New Year fes�vi�es had a nock on effect on the already ba-ered rates early

on in the week. All this le2 the market with more open tonnage to cover

while the Chinese New Year did not bring any swi2 recovery in demand

levels. At the current state of things it will take a considerable increase in

trade to bring freight rates back to respectable levels.

With the Pacific basin almost completely silent, the Panamax market was

dealt another quick blow, as rates lost another 20% on a week-on-week

comparison. It seems as though we could have further weakening over the

next couple of days as there are considerably swollen tonnage lists all

around while newbuilding deliveries con�nue to pile on to the growing

oversupply problem.

Similarly, Supras and Handies were no�ng loses across all regions, as the

limited demand was unable to provide any sort of support for owners caus-

ing a strong collapse in freight levels. Significant levels of open tonnage

have started to accumulate in both the Pacific and Atlan�c, poin�ng to a

like further slowdown and even lower freight rates.

Sale & Purchase

Most noteworthy deal this week was the reported sale of the Handymax “Id

Nord” (46,640dwt-blt 99 Japan) which went to Singaporean buyers for a

reported price of around $ 14.8m.

Also of interest was the reported sale of the handysize ‘Good Pil-

grims’ (29,400dwt-blt 09 India) which went to Thai Buyers, namely Precious

Shipping for a price of about $ 17.7m.

Jan-12 Dec-11 ±% 2012 2011 2010

170k 38.0 36.2 5.0% 38.3 43.5 57.4

75K 27.5 26.5 3.8% 27.8 31.3 39.0

52k 23.5 22.7 3.5% 24.0 25.6 30.2

29K 22.5 21.0 7.1% 23.0 23.5 26.2Handysize

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Dry Market

Indicative Period Charters

- 5/9 mos - 'C. Phoenix' 2011 176,000dwt

- dely retro Rongsheng 6 Jan - $ 11,800/day - Swiss Marine

- 10/14 mos - 'Global Bonanza' 2011 74,916dwt

- dely Oita 3/8 Feb - $ 10,000/day - GMI

© Intermodal Research 31/01/2012 4

Secondhand Sales

Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments

MR BOX 50,366 2009SPP SHIPBUILDING,

S. KoreaMAN-B&W Dec-14 DH $ 30.0m undisclosed

MR KING EDWIN 35,775 2000 DAEDONG, S. Korea B&W Oct-15 DH undisclosed undisclosed

PROD/

CHEMCLIPPER MIKI 19,998 2009

FUKUOKA

NAGASAKI, JapanMAN-B&W Apr-14 DH $ 23.5m Singaporean StSt/Epoxy coated

PROD/

CHEM

STENA

CARIBBEAN9,996 2002

GDYNIA STOCZNIA

SA, PolandWarts i la Jun-12 DH $ 13.0m Austra l ian Epoxy coated

PROD/

CHEM

GOLDEN

MICRONESIA9,091 2004

KURINOURA

DOCKYARD CO,

Japan

Mitsubishi Jul -14 DH $ 9.0mSingaporean

(Wi lmar)

StSt tanks , incl TC

ti l l 08/2012

PROD/

CHEM

EASTERN

GOODWILL8,740 2001

SHIN KURUSHIMA

IMABARI, JapanMAN-B&W Nov-16 DH $ 8.3m

S.Korea (DM

Shipping)StSt tanks

PROD/

CHEMCHARTSMAN 6,397 1993

MALAYSIA

SHIPYARD & EN,

Malays ia

Blackstone Oct-13 DH $ 3.3m NigerianEpoxy coated, old

sa le

Tankers

Name Dwt Built Yard M/E SS due Cbm Price Buyers Comments

SIGLOO CRYSTAL 12,240 1991BENETTI

VIAREGGIO, Ita lyB&W Jan-12 $ 6.0m undisclosed Ethylene Carrier

HAYDOCK 4,313 2001 KITANIHON, Japan Mitsubishi May-16 $ 12.0mPhi l ippino

(Petrol i ft)

Gas/LPG/LNG

Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments

SMAX ABG 315 54,000 2011 ABG, India MAN-B&W4 X 30t

CRANES$ 28.0m

Singaporean

(Global Bulk

Carriers )

HMAX ID NORD 46,640 1999MITSUI TAMANO,

JapanB&W Feb-14

4 X 30.5t

CRANES$ 14.8m Singaporean

HMAX SOLON 42,183 1987SASEBO SASEBO,

JapanSulzer Dec-17

5 X 25t

CRANESundisclosed Bangladeshi

HMAX AFRICAN STAR 42,004 1991

OSHIMA

SHIPBUILDING,

Japan

Sulzer May-154 X 25t

CRANES$ 8.5m undisclosed on subs

HMAX SEALIGHT 41,093 1984SANOYAS CORP,

JapanSulzer Oct-14

4 X 25t

CRANES$ 4.2m undisclosed

HANDYCALLIROE

PATRONICOLA29,608 1985

NKK CORP -

SHIMIZU, JapanSulzer Jul -15

4 X 16t

CRANES$ 5.0m Syrian

HANDY GOOD PILGRIMS 29,400 2009HINDUSTAN,

IndiaMAN-B&W Aug-14

4 X 30t

CRANES$ 17.7m

Thai (Precious

Shipping)

Bulk Carriers

© Intermodal Research 31/01/2012 5

Week

4

Week

3±% 2012 2011 2010

Bangladesh 495 485 0.0% 488 523 422

India 505 500 1.0% 494 511 427

Pakistan 500 495 1.0% 491 504 425

China 440 440 0.0% 440 451 383

Bangladesh 470 460 0.0% 465 498 375

India 485 475 2.1% 470 484 394

Pakistan 475 470 1.1% 465 477 388

China 420 420 0.0% 420 432 364

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

350

400

450

500

550

600

$/ldt

Dry Demolition Prices

Bangladesh India Pakistan China

350

400

450

500

550

600

$/ldt

Wet Demolition Prices

Bangladesh India Pakistan China

With breakers in the Indian Sub-con�nent remaining very ac�ve, sen�ment

improved further pushing offered prices up further. Due to this firm ac�vity

specula�on amongst buyers was considerable as many expect that things

may heat up further despite the ample demo candidates available in the

market. Even Chinese breakers seem to be taking a more aggressive ap-

proach to such an extent that we wouldn’t be surprised if the price gap de-

creases further over the next couple of weeks. Offered Prices have firmed

further this week, with wet tonnages now climbing to around 440-505$/ldt

and dry units rising to about 420-485$/ldt.

Most notable this week was the price paid by Indian breakers for the contain-

er vessel ‘Khaled Ibn Al Waleed’ (35,615dwt-12,858ldt-blt 83) which report-

edly went for a price of about $ 514/Ldt basis delivery ‘as is’ Khor Fakkan

including some bunkers remaining on board.

Demoli'on Market

Name Size Ldt Built Yard Type $/ldt Breakers Comments

ATLANTIC

PROSPERITY311,690 40,378 1995 HITACHI, Japan TANKER undisclosed Indian (Green Recycling)

PRINCESS

KATHERINE164,100 26,263 1986 BOELWERF, Belgium BULKER $ 440/Ldt Chinese bss 'as is' China

PIONEER EPOS 75,470 13,404 1981 VEROLME, Brazi l BULKER $ 475/Ldt Pakistani

SEA BIRD 63,868 11,600 1984 HYUNDAI, S. Korea BULKER $ 510/Ldt Pakistanidely India-Pakistan range. Incl

250Tof bunkers ROB

KHALED IBN AL

WALEED35,615 12,858 1983 HYUNDAI, S. Korea CONT $ 514/Ldt Indian

bss 'as is' Khor Fakkan incl some

bunkers ROB

BM FREEDOM 31,247 9,030 1980 KANASASHI, Japan GCG $ 462/Ldt Indian bss 'as is' Dubai

GEMINI 29,870 9,199 1986CHINA SHIPBLDG,

Chinese TaipeiTANKER $ 495/Ldt Indian

SIAM STAR 29,617 6,232 1984 MITSUBISHI, Japan BULKER $ 488/Ldt Indian less 3% comms

BM HOPE 29,129 7,933 1978CHINA SHIPBLDG,

Chinese TaipeiBULKER $ 462/Ldt Bangladeshi bss 'as is' Chittagong

SEA DREAM 26,223 7,296 1981 CCN MAUA, Brazil BULKER $ 500/Ldt Indiandely India-Pakistan range. Incl

full set of spares

AGIOS NECTARIOS I 23,969 5,734 1982 IMABARI, Japan BULKER $ 492/Ldt Indian

BM DEFENDER 22,882 8,405 1981 HASHIHAMA, Japan GC $ 462/Ldt Bangladeshi bss 'as is' Batam

BM INTREPID 19,310 5,940 1983 WESER, Germany GC $ 462/Ldt Bangladeshi bss 'as is' Chittagong

BM PRIDE 18,982 7,174 1983 SWAN, U.K. GC $ 462/Ldt Pakistani bss 'as is' Karachi

MALLAK 18,270 5,596 1981 CAMIALTI, Turkey BULKER $ 500/Ldt Indian

BM ADVENTURE 17,520 6,478 1980 CANECO, Brazil GC $ 462/Ldt Bangladeshi bss 'as is' Jakarta

YASAKA BAY 10,647 5,503 1983 HITACHI, Japan REEFER $ 489/Ldt Indian

Demolition Sales

© Intermodal Research 31/01/2012 6

Week

4

Week

3±% 2012 2011 2010

Capesize 170k 47.5 47.5 0.0% 47 53 58

Panamax 75k 28.0 28.0 0.0% 28 33 35

Supramax 57k 26.0 26.5 -1.9% 26 30 31

Handysize 30k 22.0 22.0 0.0% 22 25 27

VLCC 300k 97.5 98.5 -1.0% 97 102 104

Suezmax 150k 59.5 60.0 -0.8% 59 64 66

Aframax 110k 51.5 51.5 0.0% 51 54 55

LR1 70k 42.0 42.5 -1.2% 43 45 46

MR 47k 33.5 34.5 -2.9% 34 36 36

LPG M3 80k 71.5 71.5 0.0% 71 73 72

LPG M3 52k 62.5 62.5 0.0% 62 64 65

LPG M3 23k 45.5 45.5 0.0% 45 46 46

Indicative Newbuilding Prices (million$)

Ga

s

Vessel

Bu

lke

rsTa

nk

ers

With the Lunar New Year Fes�vi�es now over, we could see market ac�vity

pick up slightly once again. Market condi�ons however are not ideal, as there

are already significant worries over the orders already in place. Several ana-

lysts are expressing doubts as to if current orders will be delivered as

planned, as a significant por�on of them s�ll do not have financial backing in

place. The main problems for shipbuilders will be to provide innova�ve prod-

ucts in order to en�ce owners while at the same �me provide interest buyers

with some sort of access to financing. This is why many shipbuilders par�cu-

larly in China have been focused in promo�ng new eco-design vessels with

more complex financing structures such as BBHP. These are all in their infan-

cy stage with few owners showing keen interest in their current form.

With regard to orders this week, most noteworthy reported deal was the

le-er of intent signed by Norway’s Frontline for six firm MR (51,000dwt)

tankers at S.Korea’s STX for a price of around $ 32.5m each.

10

20

30

40

50

60

70million $

Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

20

40

60

80

100

120

million $

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Newbuilding Market

Units Type Yard Delivery Buyer Price Comments

1 Tanker 52,000 dwt Hyundai Mipo, S.Korea 2014 Turkish (Ditas-Denizci lik)

6 Tanker 51,000 dwt STX, S.Korea 2013-2014 Norwegian (Frontline) $ 32.5m LOI signed

Newbuilding Orders

Size

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 Department | Mr George Lazaridis

E-mail: research@intermodal.gr

On behalf of Intermodal Sale & Purchase, Newbuilding and Chartering Departments

E-mail: snp@intermodal.gr, tankers@intermodal.gr, dry@intermodal.gr

1,640

1,660

1,680

1,700

1,720

1,740

80

90

100

110

120

130

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

27-Jan-12 20-Jan-12W-O-W

Change %

Rotterdam 937.0 963.0 -2.7%

Houston 987.5 997.5 -1.0%

Singapore 969.0 976.0 -0.7%

Rotterdam 678.5 685.0 -0.9%

Houston 670.5 676.5 -0.9%

Singapore 737.5 736.5 0.1%

Rotterdam 694.5 697.5 -0.4%

Houston 700.5 706.5 -0.8%

Singapore 750.5 750.0 0.1%

Bunker Prices

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World Economy News

U.S. stocks fell for a fourth day, the longest losing streak for the Dow Jones Industrial Average since August, while 10-year Treasuries gained as reports showed American consumer confidence trailed estimates and business activity cooled in January. The Dow lost 66.11 points to 12,587.61 and the Standard & Poor’s 500 Index slipped 0.3 percent to 1,308.57 at 11:27 a.m. in New York. The Dollar Index rose 0.2 percent as the euro fell 0.5 percent to $1.3083. Ten- year Treasury yields lost three basis points to 1.82 percent. (Bloomberg)

Energy & Commodi'es

Iran, the master of brinkmanship, is keeping the oil market guessing. There is an increasing possibility that embattled Greece could become entangled in Tehran’s dealings with Europe, with dire consequences. When the European Union announced an oil embargo on the country from July 1 – designed to give Greece, Spain and Italy time to find alternative suppliers – Iran responded with a threat to pre-empt the ban halting ex-ports immediately. The Iranian parliament failed on Sunday to approve a bill to promptly stop European exports. (Financial Times)

Finance News

Teekay Offshore Partners has raised $100m through a

bond issue in Norway, its second such foray since the

autumn of 2010.

The Teekay Corpora�on spinoff said on Wednesday it

had placed NKr600m in a five-year series of bonds

that will mature in January 2017, which comes at the

mid-point of the NKr500m-NKr700m range an-

nounced earlier in the week.

The proceeds, which will become available to the

company at the end of the month, have been

swapped into US dollars, which comes to roughly

$100m at today’s prevailing exchange rate.

All interest and principal payments will be swapped

into US dollars, Teekay Offshore said. The statement

did not announce the interest rate, and the compa-

ny’s spokesperson at its Vancouver head office could

not be reached.

“The proceeds of the bonds are expected to be used

for general partnership purposes,” Teekay Offshore

said. (Lloyds List)

CompanyStock

ExchangeCurr. 27-Jan-12 20-Jan-12

W-O-W

Change %Max 3wk Min 3wk

AEGEAN MARINE PETROL NTWK NYSE USD 5.05 4.83 4.6% 5.14 5.00

BALTIC TRADING NYSE USD 4.12 4.48 -8.0% 4.43 4.09

BOX SHIPS INC NYSE USD 8.28 8.42 -1.7% 8.57 8.28

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 7.70 7.36 4.6% 7.70 7.31

COSTAMARE INC NYSE USD 15.02 15.67 -4.1% 15.34 14.83

DANAOS CORPORATION NYSE USD 3.60 3.48 3.4% 3.60 3.49

DIANA SHIPPING NYSE USD 8.34 8.44 -1.2% 8.40 8.31

DRYSHIPS INC NASDAQ USD 2.21 2.36 -6.4% 2.26 2.20

EAGLE BULK SHIPPING NASDAQ USD 1.43 1.21 18.2% 1.43 1.29

EUROSEAS LTD. NASDAQ USD 2.80 2.73 2.6% 2.92 2.80

EXCEL MARITIME CARRIERS NYSE USD 1.46 1.60 -8.8% 1.59 1.46

FREESEAS INC NASDAQ USD 0.46 0.43 7.0% 0.46 0.41

GENCO SHIPPING NYSE USD 7.19 7.50 -4.1% 7.66 7.19

GLOBUS MARITIME LIMITED NASDAQ USD 4.30 4.32 -0.5% 4.39 3.96

GOLDENPORT HOLDINGS INC LONDON GBX 60.37 60.00 0.6% 60.78 59.25

HELLENIC CARRIERS LIMITED LONDON GBX 44.50 43.50 2.3% 44.50 42.94

NAVIOS MARITIME ACQUISITIONS NYSE USD 2.99 3.00 -0.3% 3.08 2.99

NAVIOS MARITIME HOLDINGS NYSE USD 3.69 3.62 1.9% 3.69 3.55

NAVIOS MARITIME PARTNERS LP NYSE USD 16.27 15.95 2.0% 16.27 16.03

NEWLEAD HOLDINGS LTD NASDAQ USD 0.70 0.57 22.8% 0.76 0.65

OMEGA NAVIGATION ENTERPRISES INC NASDAQ USD 0.16 0.18 -11.1% 0.18 0.16

PARAGON SHIPPING INC. NYSE USD 0.64 0.65 -1.5% 0.64 0.62

SAFE BULKERS INC NYSE USD 7.28 6.67 9.1% 7.28 6.86

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 2.16 2.37 -8.9% 2.22 2.16

STAR BULK CARRIERS CORP NASDAQ USD 1.12 0.92 21.7% 1.12 0.98

STEALTHGAS INC NASDAQ USD 4.26 4.54 -6.2% 4.56 4.26

TSAKOS ENERGY NAVIGATION NYSE USD 6.56 6.17 6.3% 6.60 6.35

TOP SHIPS INC NASDAQ USD 1.70 1.83 -7.1% 1.76 1.70

Maritime Stock Data

27-Jan-12 26-Jan-12 25-Jan-12 24-Jan-12 23-Jan-12W-O-W

Change %

10year US Bond 1.900 1.930 2.010 2.060 2.070 -6.4%

S&P 500 1,316.33 1,318.43 1,326.06 1,314.65 1,316.00 0.1%

Nasdaq 2,816.55 2,805.28 2,818.31 2,786.64 2,784.17 1.1%

Dow Jones 12,660.46 12,734.63 12,756.96 12,675.75 12,708.82 -0.5%

FTSE 100 5,733.45 5,795.20 5,723.00 5,751.90 5,782.56 0.1%

FTSE All-Share UK 2,958.86 2,987.74 2,949.97 2,962.12 2,980.33 0.1%

CAC40 3,318.76 3,363.23 3,312.48 3,322.65 3,338.42 -0.1%

Xetra Dax 6,511.98 6,539.85 6,421.85 6,419.22 6,436.62 1.7%

Nikkei 8,841.22 8,849.47 8,883.69 8,785.33 8,765.90 0.9%

Hang Seng 20,501.67 20,439.14 - - - 1.9%

Dow Jones 221.43 222.53 221.00 219.15 220.78 -1.1%

$ / € 1.31 1.31 1.29 1.30 1.30 1.5%

$ / ₤ 1.57 1.57 1.56 1.56 1.56 1.1%

₤ / € 0.84 0.84 0.83 0.83 0.84 0.4%

¥ / $ 76.97 77.58 78.06 77.59 76.90 0.0%

$ / Au$ 1.07 1.07 1.05 1.05 1.06 1.9%

$ / NoK 0.17 0.17 0.17 0.17 0.17 2.0%

$ / SFr 0.92 0.92 0.93 0.93 0.93 -1.5%

Yuan / $ 6.31 6.31 6.31 6.31 6.31 -0.3%

Won / $ 1,122.59 1,121.59 1,129.34 1,132.80 1,130.30 -0.9%

$ INDEX 79.30 79.40 80.30 80.10 79.70 -1.1%

Oil WTI $ 99.60 99.70 99.40 99.00 99.60 1.3%

Oil Brent $ 111.50 110.80 109.80 110.00 110.60 1.5%

Gold $ 1,720.90 1,710.25 1,666.00 1,677.30 1,658.65 3.8%

Market Data

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Commodi'es & Financials