Broker’s insight By Christos Mantzios, SnP Broker The Current Dry Bulk Boom

So here we are again facing the same old question: Will this latest market uptrend prove to be as long-lived as all owners hope or just another mo-mentary spike which will deflate at the first signs of trouble?

The Dry Bulk market, despite having been on a roller coaster ride since early spring, has now entered the seasonally strong months of October and November with renewed optimism. But this might come at price: Renewed optimism might result in a flurry of new-building activity/ordering which could, if done in excess, ultimately tip the scales against owners once again.

Albeit the improved market conditions, new ordering has seemingly started to slow down as the lack of availability of early slots (now seeing early to mid-2016) coupled with rising NB prices have both started to take their toll on buying interest. During September the dry bulk market witnessed a total of 58 dry orders, with Ultramaxes holding the lion's share and numbering 22 in total, while Handies closely followed in volume with 21.

For the time being new building capacity seems to be waning, with several shipbuilders already limiting production in many of their facilities and over-stretching their slots’ schedule. This has worked fine so far, but as freight earnings start to improve and in turn we see ever growing demand for new orders, shipbuilders will inevitably seek to remobilize their unused re-sources and step back up to full production, plaguing the industry with excess tonnage supply once again.

Greek owners top the list for NB orders placed so far this year in terms of both number of vessels and dwt (131 vessels/11.7 mill dwt) followed by Japanese owners in terms of number of ships (106 vessels/4.2mill dwt) and Chinese owners in terms of dwt (96 vessels/6 mill dwt). Greek buyers also dominated the second hand market as well, with one in every four vessels that changed hand during 2013 ending up to a Greek buyer and at ever higher prices.

This is epitomized in the likes of sales such as that of the M/V Cape Chal-lenger (180kdwt blt 2013 IHI) and M/V JK Pioneer (180kdwt blt 2013 HHI) which were reported sold reg USD 52mill each, a sharp appreciation in price when compared (especially taking into account the fact that the sale was included by a below market charter attached of USD 11,000/day till May 2014) with the sale of M/V Bulk Canada (180kdwt blt 2012 Hanjin Philippines) reg USD 41.25mill back in August..

This trend is not solely attributed to the freight rally in Capes but also backed by both an overall positive perception as to the prospects of the market from 2014 onwards and the still attractively-priced assets across all size segments (at least in comparison with pre-2012 levels where a 5 year old Cape was priced above USD 36.0 mill, a 5 year old Panamax above USD 26.5 mill and a 5 year old Supramax was above USD 24,5 mill).

Caution (and eye-brows) may have been raised as to the potential longevity of the recent run-up in freight rates, but it doesn’t look like the upward momentum is over just yet. Things may have slowed down for Capes, but with their average freight rates still holding above 30,000/day and with the rest of the size segments slowing showing signs of catching up in gains, it will all depend to what extent this positive momentum can hold and how well these new market conditions will hold up in the first quarter of 2014 a period in the year that tends to be considerably softer and a good indicator as to how well the market will perform during the whole year. .

Chartering (Wet: Stable+ / Dry: Stable- )

With the exception of rates for Capes, the rest of the Dry segments managed to sustain their levels and close off the week on a positive note, with a sense of stability prevailing overall. The BDI closed today (15/10/2013) at 1,963 points, up by 2 points compared to Monday’s levels (14/10/2013) and a decrease of 183 points compared to the previ-ous Tuesday’s levels (08/10/2013). VL rates still appear to be stable while this past week the Suezmax segment managed to rebound from the depressive levels reached recently. The BDTI Monday (15/10/2013), was at 586 points, a decrease of 13 points and the BCTI at 512, a de-crease of 25 points compared to the previous Monday’s levels (07/10/2013).

Sale & Purchase (Wet: Stable+ / Dry: Stable+ )

Activity is still a bit subdued on the SnP front but this is more of a case of buyers trying to meet seller’s increasing expectations, rather than n absence of buying interest. On the tankers side, we had the sale of the “LR REGULUS” (70,312dwt-blt 04, S. Korea), which was picked up by Greek buyers for a price of US$ 21.0m. On the dry bulker side, we had the sale of the “JIA HO” (71,678dwt-blt 97, Japan), which went to Greek buyers for a firm price of $ 10.5m.

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

“The color of the industry was gray in 2011. It was black last year. For this year, it's red, bloody red." Those were the words recently spoken by Chen Qiang, president of Rongsheng Heavy Industries Group Co, which is China’s largest private shipbuilder. And while the Ministry of Industry and Information Technology of China has reported that the Chinese shipbuilding industry has witnessed a 147% surge in orders intakes for the first three quarters compared to the same period in 2012, it is doubtful that this latest boom can secure the smooth opera-tion of those yards that are not backed up by State funds. But even in the case of the state owned yards, the truth is that prices need to climb higher and orders to keep their current pace in order for margins to allow for healthier balance sheets. But for this to happen the market needs to get stronger and stabilize for a longer period and we are only in the beginning of what may turn out to be a market recovery. Last week, Navig8’s joint venture with Oaktree capital was reported placing an order of six firm chemical tankers (37,000dwt) at Hyundai Mipo, in S. Korea for a price of $ 34.8m each.

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

India has undoubtedly re-emerged as the Queen of the demolition mar-ket after prices coming out of the country have climbed further this week both for wet and dry tonnage. Although the improvement was expected after the local currency had stopped underperforming against the US dollar, we still believe that it is mostly speculation that currently drives the market rather than fundamentals and we remain cautious about what the coming weeks might bring. Supportive of that is the fact that the levels at which some of the recently reported deals were con-cluded at, are much higher than the average bids coming out of the Indian sub-Continent. On top of that while Indian prices have firmed, the rest of the market seems to be slowing down, with prices in Pakistan and Bangladesh remaining stable and dropping respectively, while no concluded deals being reported in either country. China at the same time has witnessed minor activity and dropping prices right after the end of local holidays there. Average prices this week for wet tonnage were at around 360-425$/ldt and dry units received about 350-410$/ldt.

Weekly Market Report

Issue: Week 41| Tuesday 15th October 2013

© Intermodal Research 15/10/2013 2

2013 2012

WS

points$/day

WS

points$/day $/day $/day

265k MEG-JAPAN 38 17,410 36.5 15,872 9.7% 10,570 21,835

280k MEG-USG 26 13,370 24.5 10,994 21.6% -208 1,604

260k WAF-USG 42.5 23,184 40 20,735 11.8% 17,034 31,457

130k MED-MED 52.5 7,010 50 4,242 65.3% 11,566 22,121

130k WAF-USAC 50 7,853 42.5 2,191 258.4% 8,410 13,373

130k BSEA-MED 52.5 7,637 47.5 2,264 237.3% 11,566 22,121

80k MEG-EAST 80 11,134 80 10,833 2.8% 8,733 14,182

80k MED-MED 65 5,685 65 4,973 14.3% 10,062 13,700

80k UKC-UKC 82.5 3,123 95 17,392 -82.0% 11,684 18,517

70k CARIBS-USG 100 15,699 90 11,485 36.7% 11,403 12,325

75k MEG-JAPAN 97.5 17,845 97.5 17,432 2.4% 9,845 11,258

55k MEG-JAPAN 102.5 12,485 110 14,447 -13.6% 9,867 10,867

37K UKC-USAC 70 -1,285 70 -1,596 19.5% 10,150 9,251

30K MED-MED 112.5 5,566 115 5,983 -7.0% 14,264 19,062

55K UKC-USG 100 12,899 110 16,658 -22.6% 12,686 16,571

55K MED-USG 100 12,368 102.5 12,814 -3.5% 10,556 14,735

50k CARIBS-USAC 107.5 12,755 107.5 12,447 2.5% 11,721 13,028

Dir

tyA

fram

axC

lean

VLC

CSu

ezm

ax

Spot Rates

Vessel Routes

Week 41 Week 40$/day

±%

Oct-13 Sep-13 ±% 2013 2012 2011

300KT DH 55.8 55.3 0.9% 55.8 62.9 77.6

150KT DH 40.0 39.6 0.9% 40.0 44.9 54.4

110KT DH 28.8 29.4 -2.1% 28.9 31.2 39.1

75KT DH 29.5 29.0 1.7% 27.2 26.7 35.2

52KT DH 27.5 27.0 1.9% 24.7 24.6 28.4

VLCC

Suezmax

Indicative Market Values ($ Million) - Tankers

Vessel 5yrs old

MR

Aframax

LR1

Chartering

Rates for VLs managed to move further up this week reinforcing the senti-ment of stability that has been characterizing the segment for the past few weeks. Despite the fact that earnings were modest and around the same levels achieved for the week prior, it is encouraging to witness that East-bound demand has not been hammered by the holidays in the region. Nev-ertheless it was fixtures of Westbound voyages that noted the biggest rate increases this past week, with numbers surpassing $ 13,000/day and in WS terms climbing to above 42 points.

Things for the Suezmax segment improved for a second week in a row with rates rebounding from the dreadful lows that were recently reached. The most impressive increase was witnessed in the WAF-USAC voyage, the WS rate for which climbed back up to the 50 points level, with TCE gains in-creasing more than two-fold. Nonetheless the sentiment still remains fairly negative for the segment, as rates offered for the most traditional routes are barely covering OPEX.

Opposite to the week prior, activity in the Med region has improved, while rates for North Sea and cross UKC voyages have tumbled after shortly im-proving in the beginning of the week. At the same time the Caribs trade has managed to pick up due to some bad weather but just as quickly as those gains were felt, equally quickly they were given up.

Sale & Purchase

In the LR1 sector we had the sale of the “LR REGULUS” (70,312dwt-blt 04, S. Korea), which was picked up by Greek buyers for a price of US$ 21.0m.

In the Handy sector, we had the sale of the “BOW HARMONY” (33,619dwt-blt 08, Japan), which included a T/C on-going contract and went for a price of US$ 30.0m to Norwegian buyers.

Wet Market

Indicative Period Charters

- 2 mos - 'VARADA LALIMA' 1997 107,176dwt

- - $ 12,400/day - CNR

- 1/ 2 mos - 'BLUE SEA' 2009 105,416dwt

- - $ 13,700/day - ST SHIPPING

20

40

60

80

100

120

140

160

WS

po

ints

DIRTY - WS RATESTD3 TD5 TD8 TD4

Week 41 Week 40 ±% Diff 2013 2012

300k 1yr TC 18,250 18,250 0.0% 0 18,909 22,375

300k 3yr TC 22,250 22,250 0.0% 0 23,578 27,195

150k 1yr TC 16,250 16,250 0.0% 0 16,274 17,606

150k 3yr TC 17,750 17,750 0.0% 0 18,371 21,152

110k 1yr TC 13,750 13,750 0.0% 0 13,439 13,889

110k 3yr TC 15,250 15,250 0.0% 0 15,176 16,070

75k 1yr TC 16,000 16,000 0.0% 0 15,073 13,245

75k 3yr TC 16,250 16,250 0.0% 0 15,602 14,368

52k 1yr TC 15,000 15,000 0.0% 0 14,433 13,764

52k 3yr TC 15,750 15,750 0.0% 0 15,145 14,589

36k 1yr TC 13,250 13,000 1.9% 250 13,091 12,567

36k 3yr TC 13,750 13,750 0.0% 0 13,694 13,378

Panamax

MR

Handy

size

TC Rates

$/day

VLCC

Suezmax

Aframax

6080

100120140160180200220240260

WS

po

ints

CLEAN - WS RATESTC2 TC4 TC6 TC1

© Intermodal Research 15/10/2013 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

30,000$

/da

y

Average T/C Rates

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

170K 6mnt TC 28,750 28,750 0.0% 0 15,697 13,549

170K 1yr TC 22,250 22,250 0.0% 0 14,638 13,885

170K 3yr TC 21,750 21,750 0.0% 0 15,493 15,282

76K 6mnt TC 17,250 17,250 0.0% 0 11,055 11,003

76K 1yr TC 13,500 13,750 -1.8% -250 9,525 9,906

76K 3yr TC 12,250 12,250 0.0% 0 9,708 10,888

55K 6mnt TC 12,850 12,250 4.9% 600 10,892 11,176

55K 1yr TC 11,500 11,000 4.5% 500 9,752 10,330

55K 3yr TC 11,500 11,250 2.2% 250 10,137 11,195

45k 6mnt TC 11,125 10,600 5.0% 525 9,165 9,375

45k 1yr TC 10,000 9,550 4.7% 450 8,449 8,849

45k 3yr TC 9,750 9,250 5.4% 500 8,966 9,575

30K 6mnt TC 9,250 9,250 0.0% 0 7,813 8,255

30K 1yr TC 9,000 9,000 0.0% 0 8,002 8,424

30K 3yr TC 9,250 9,250 0.0% 0 8,791 9,450

Han

dym

axH

and

ysiz

e

Period

2012

Pan

amax

Sup

ram

ax

Week

41

Week

40

Cap

esi

ze

2013$/day ±% Diff

Chartering

After a month and a half of straight weekly positive closings, the BDI has

finished the week in the red. Monday started slow as holidays in the East

set the tone and the sluggish pace didn't improve until the end of the week.

Balance was mainly brought by activity in the Continent and the USG re-

gions, where tight tonnage availability helped rates keep overall steady.

Despite some pull back in rates for certain routes, as owners lowered their

ideas to meet charterers halfway, there is a sense of stability in the market

for all segments. Needless to say that stability at these levels is more than

anyone could have hoped for earlier this year, given the low levels the mar-

ket had reached last spring and how quickly it has advanced in a relatively

short period.

Rates for Capes dropped for a second week in row on the back of softening

activity in both basins. The average rate lost more than $ 5,000 week-on-

week but it seems that this hasn't taken a toll on overall sentiment, which is

still positive on the segment.

The Panamax market advanced for another week, as fixing activity in-

creased in both basins. A good number of fresh enquiries has emerged mid-

week onwards especially ex USG, which helped owners keep the upper

hand straight until Friday.

Both Supras and Handies closed off the week in the green, with rates for

the former achieving the biggest increases across the entire Dry market.

The average rate for Supras has climbed north of $12,000/day, while the T/

C market has also enjoyed the spill-overs of the segments strengthening.

Sale & Purchase

In the Capesize sector, we had the sale of the resale “SU-OH” (171,081dwt-blt 97 Japan), which was picked up by S. Korean buyer, Polaris, for a price of $ 16.5m.

In the Panamax sector we had reports of the sale of the “JIA HO” (71,678dwt-blt 97, Japan), which went to Greek buyers for a firm price of $ 10.5m.

Oct-13 Sep-13 ±% 2013 2012 2011

180k 37.0 34.8 6.5% 34.2 34.6 43.5

76K 21.8 21.0 3.6% 20.3 22.7 31.3

56k 21.9 21.5 1.9% 20.7 23.0 28.1

30K 18.4 18.1 1.4% 17.8 18.2 23.5

Capesize

Panamax

Supramax

Indicative Market Values ($ Million) - Bulk Carriers

Vessel 5 yrs old

Handysize

Indicative Period Charters

-11/13 mos - 'SORRENTO' 2004 76,633dwt

-dely Shekou spot - $ 16,500/day - SwissMarine

-12 mos - 'SIBI' 2009 28,442dwt

-dely SE Asia ppt - $ 8,100/day - Navision

Dry Market

Index $/day Index $/day Index Index

BDI 1,985 2,084 -99 1,042 921

BCI 3,527 $32,382 3,943 $37,799 -416 -14.3% 1,854 1,571

BPI 2,024 $16,233 1,914 $15,530 110 4.5% 1,037 965

BSI 1,182 $12,355 1,113 $11,643 69 6.1% 880 906

BHSI 632 $8,988 609 $8,684 23 3.5% 521 518

04/10/2013

Baltic IndicesWeek 41

11/10/2013Week 40

Point

Diff

2013 2012$/day

±%

© Intermodal Research 15/10/2013 4

Secondhand Sales

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

AFRA PACIFIC EMPIRE 115,577 2008SASEBO SASEBO,

JapanMAN-B&W Apr-18 DH $ 27.4m

AFRA PACIFIC BRAVE 115,577 2007SASEBO SASEBO,

JapanMAN-B&W May-17 DH $ 25.2m

AFRA PACIFIC APOLLO 115,577 2007SASEBO SASEBO,

JapanMAN-B&W Mar-17 DH $ 25.2m

AFRA PACIFIC CONDOR 115,577 2007SASEBO SASEBO,

JapanMAN-B&W Oct-17 DH $ 25.2m

LR1 LR REGULUS 70,312 2004

DAEWOO

SHIPBUILDING &, S.

Korea

MAN-B&W Jun-14 DH $ 21.0m Greek epoxy

MRCHALLENGE

PASSAGE48,658 2005 IWAGI, Japan MAN-B&W Apr-15 DH $ 19.0m undisclosed epoxy

MR BARCAROLLE 45,998 1996HALLA ENG & HI -

INCHE, S. KoreaB&W Nov-16 DH $ 9.8m Mexican epoxy

HANDY BOW HARMONY 33,619 2008 KITANIHON, Japan Mitsubishi Jul -18 DH $ 30.0m Norwegian StSt, T/C attached

UK based

(Zodiac)

Tankers

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

FEEDER STX QINGDAO 1,740 2009

GUANGZHOU

WENCHONG,

China

MAN-B&W Jan-142 X 45t

CRANES$ 17.2m undisclosed

FEEDER MARSTAN 707 2000HEGEMANN

BERNE, GermanyMaK Jan-16 undisclosed undiscolsed

Containers

© Intermodal Research 15/10/2013 5

Secondhand Sales

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

CAPE SU-OH 171,081 1997 IHI - KURE, Japan Sulzer Mar-14 $ 16.5mS. Korean

(Polaris )

PMAXSEA OF

HARMONY76,397 2001 TSUNEISHI, Japan B&W Apr-16 $ 14.65m

PMAX SEA OF GRACIA 75,932 2003 TSUNEISHI, Japan B&W Feb-18 $ 16.75m

PMAX SUNNY PRIDE 74,078 2000 IMABARI, Japan B&W Aug-15 $ 12.9mGreek

(Bulkseas)

PMAX PREMNITZ 72,873 1994SAMSUNG, S.

KoreaMAN-B&W Sep-14 $ 7.1m Greek

PMAX JIA HO 71,678 1997HITACHI ZOSEN -

NAGASU, JapanB&W Oct-17 $ 10.5m Greek

SMAXCHANG HANG

HUI HAI57,300 2010 BOHAI, China MAN-B&W Sep-15

4 X 30t

CRANES$ 14.8m

Chinese (Tianjin

Shipping)at auction

SMAXCHANG HANG BO

HAI57,158 2009 BOHAI, China MAN-B&W Dec-14

4 X 30t

CRANES$ 14.6m

Chinese

(Shanghai

Shipping)

at auction

SMAXCHANG HANG

JIANG HAI57,124 2010 BOHAI, China MAN-B&W Jul-15

4 X 30t

CRANES$ 14.8m

Chinese

(Shangdong

Investments)

at auction

SMAX XIAMEN SKY 53,604 2005 XIAMEN, China MAN-B&W Jan-154 X 30t

CRANES$ 12.5m Greek

Indian (Hermes

Mari time)

Bulk Carriers

© Intermodal Research 15/10/2013 6

“The color of the industry was gray in 2011. It was black last year. For this year, it's red, bloody red." Those were the words recently spoken by Chen Qiang, president of Rongsheng Heavy Industries Group Co, which is China’s largest private shipbuilder. And while the Ministry of Industry and Infor-mation Technology of China has reported that the Chinese shipbuilding in-dustry has witnessed a 147% surge in orders intakes for the first three quar-ters compared to the same period in 2012, it is doubtful that this latest boom can secure the smooth operation of those yards that are not backed up by State funds. But even in the case of the state owned yards, the truth is that prices need to climb higher and orders to keep their current pace in order for margins to allow for healthier balance sheets. But for this to hap-pen the market needs to get stronger and stabilize for a longer period and we are only in the beginning of what may turn out to be a market recovery.

In terms of reported deal, last week, Navig8’s joint venture with Oaktree capital was reported placing an order of six firm chemical tankers (37,000dwt) at Hyundai Mipo, in S. Korea for a price of $ 34.8m each. The order is understood to also include options.

Newbuilding Market

20

60

100

140

180

mil

lion

$

Tankers Newbuilding Prices (m$)

VLCC Suezmax Aframax LR1 MR

Week

41

Week

40±% 2013 2012 2011

Capesize 180k 50.5 49.0 3.1% 46 47 53

Panamax 77k 26.5 26.5 0.0% 26 27 33

Supramax 58k 25.5 25.0 2.0% 24 26 30

Handysize 35k 21.8 21.8 0.0% 21 22 25

VLCC 300k 90.0 89.5 0.6% 89 96 102

Suezmax 160k 55.5 55.5 0.0% 55 59 64

Aframax 115k 49.0 48.6 0.8% 47 51 54

LR1 75k 41.5 41.1 1.0% 40 43 45

MR 52k 34.0 33.8 0.6% 33 35 36

LNG 150K 185 185 0.0% 181 186 187

LGC LPG 80k 71.0 71.0 0.0% 69 72 73

MGC LPG 52k 62.5 62.5 0.0% 61 63 64

SGC LPG 23k 41.5 41.5 0.0% 40 44 46

Vessel

Indicative Newbuilding Prices (million$)

Gas

Bu

lke

rsTa

nke

rs

10

30

50

70

90

110

mil

lion

$Bulk Carriers Newbuilding Prices (m$)

Capesize Panamax Supramax Handysize

Units Type Yard Delivery Buyer Price Comments

2+2 Tanker 50,000 dwt Weihai Smajin, China Q2 2015 Swedish (Laurin Maritime) undisclosed IMO II

6 Tanker 37,000 dwt Hyundai Mipo, S.Korea -Singaporean (JV Navig8 &

Oaktree Capita l )$ 34.8m

incl. options,

chemical

7 Tanker 24,000 dwtNantong Mingde,

China- European undisclosed StSt, chemical

2 Tanker 3,500 dwtKorea Yanase Tongyeong

(ex-Samho), S. Korae2014 S. Korean (Sambu Shipping) undisclosed chemical

4 Bulker 39,500 dwt Chengxi SY, China 2016 Chinese (China Navigation) undisclosedoptions, B.DELTA

design

1 Cruise 14,700 grt Meyer Werft, Germany 10/2016 HK based ( Genting ) EUR 707.2

2 Gas 11,000 cbm Kyokuyo, Japan 2015Bermuda registered

(Petredec)$ 28.5m LPG

2 Gas 11,000 cbm Sasaki, Japan 2015Bermuda registered

(Petredec)$ 28.5m LPG

Newbuilding Orders Size

© Intermodal Research 15/10/2013 7

India has undoubtedly re-emerged as the Queen of the demolition market after prices coming out of the country have climbed further this week both for wet and dry tonnage. Although the improvement was expected after the local currency had stopped underperforming against the US dollar, we still believe that it is mostly speculation that currently drives the market rather than fundamentals and we remain cautious about what the coming weeks might bring. Supportive of that is the fact that the levels at which some of the recently reported deals were concluded at, are much higher than the average bids coming out of the Indian sub-Continent. On top of that while Indian prices have firmed, the rest of the market seems to be slowing down, with prices in Pakistan and Bangladesh remaining stable and dropping re-spectively, while no concluded deals being reported in either country. China at the same time has witnessed minor activity and dropping prices right after the end of local holidays there. Average prices this week for wet tonnage were at around 360-425$/ldt and dry units received about 350-410$/ldt.

The highest price amongst recently reported deals, was that paid by Turkish breakers for the gas tanker ‘SYN MIZAR’ (4,286dwt-2,739ldt-blt 89), which received a very firm price of $ 520/ldt.

Demolition Market

Week

41

Week

40±% 2013 2012 2011

Bangladesh 410 415 -1.2% 420 440 523

India 425 415 2.4% 425 445 511

Pakistan 415 415 0.0% 422 444 504

China 360 370 -2.7% 369 384 451

Bangladesh 400 405 -1.2% 398 414 498

India 410 400 2.5% 403 419 484

Pakistan 390 390 0.0% 401 416 477

China 350 360 -2.8% 354 365 432

Dry

Indicative Demolition Prices ($/ldt)

Markets

We

t

250

300

350

400

450

500

550

$/l

dt

Wet Demolition Prices

Bangladesh India Pakistan China

250

300

350

400

450

500

550

$/l

dt

Dry Demolition Prices

Bangladesh India Pakistan China

Name Size Ldt Built Yard Type $/ldt Breakers Comments

TERRIER 17,863 16,120 1982MITSUI TAMANO,

JapanRORO $ 360/Ldt Chinese

LOTUS 46,560 15,339 1988IMABARI

MARUGAME, JapanCONT $ 454/Ldt Indian

CHESAPEAKE BELLE 44,146 7,371 1984MITSUI TAMANO,

JapanBULKER $ 420/Ldt Indian incl. 150T bunkers

ABM PIONEER 27,036 6,862 1981NIPPONKAI H.I.,

JapanBULKER $ 415/Ldt Indian

HUZUR 1 19,697 5,291 1978HYUNDAI HEAVY

INDS - U, S. KoreaBULKER $ 415/Ldt Indian

MEVLANA 20,297 4,812 1977KURUSHIMA ONISHI,

JapanBULKER $ 415/Ldt Indian

SYN MIZAR 4,286 2,739 1989FINCANTIERI

LIVORNO, Italy

GAS

TANKER$ 520/Ldt Turkish

Demolition Sales

The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without mak-ing guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production 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 information 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 written authorization of Intermodal Shipbrokers Co.

Compiled by Intermodal Research & Valuations Department | research@intermodal.gr

Analysts: Mr. George Lazaridis | g.lazaridis@intermodal.gr

Ms. Eva Tzima | e.tzima@intermodal.gr

Finance News

“Open to offers

Pacific Basin is looking to exit the towage business and concentrate on the dry bulk sector it emerged Tuesday. The Hong Kong shipowner confirmed it had retained Citigroup as it looks to explore exit options for its PB Towage business. The board said it had approved “sounding out the market” to establish if there is interest in a third party acquiring the busi-ness. Pacific Basin said the move was “part of its re-sponsibility to shareholders” to maximise the value of the company. However, it said the process was at a very preliminary stage and there is no certainty that it will proceed with any transaction.

A sale of the towage business will follow Pacific Basin’s divestment of six ro-ro vessels for EUR 153m ($207m) in September 2012. Media reports quoting unnamed officials suggest the unit could fetch more than AUD 500m ($476m) in a trade sale. Pacific Basin entered the towage sector in 2007 with the purchase of an Australian harbour towage business. Today it boasts a fleet of 45 vessels operating in the Oceania, Southeast Asia and Middle East regions, offering a range of marine logistics and towage services.

“We expect healthy demand for towage activities in Australia to continue in the medium term as a num-ber of key offshore projects commence construction and as Australian seaborne trade continues to sup-port growing harbor towage numbers,” Pacific Basin chief executive Mats Berglund said of the towage business at the company’s third quarter results in August. He also said that the outfit had just com-menced a new harbour towage operation in Newcas-tle where it will be one of only two operators in the world’s largest coal port.” (Trade Winds)

Commodities & Ship Finance

11-Oct-13 10-Oct-13 9-Oct-13 8-Oct-13 7-Oct-13W-O-W

Change %

10year US Bond 2.680 2.680 2.650 2.640 2.630 1.1%

S&P 500 1,703.20 1,692.56 1,656.40 1,655.45 1,676.12 0.8%

Nasdaq 3,791.87 3,760.75 3,677.78 3,694.83 3,770.38 -0.4%

Dow Jones 15,237.11 15,126.07 14,802.98 14,776.53 14,936.24 1.1%

FTSE 100 6,487.20 6,430.50 6,337.90 6,365.80 6,437.30 0.5%

FTSE All-Share UK 3,457.89 3,429.82 3,379.25 3,392.75 3,428.09 0.6%

CAC40 4,219.98 4,218.11 4,127.05 4,133.53 4,165.58 1.3%

Xetra Dax 8,724.83 8,685.77 8,516.69 8,555.89 8,591.58 1.2%

Nikkei 14,404.74 14,194.71 14,037.84 13,894.61 13,853.32 2.7%

Hang Seng 23,218.32 22,951.30 23,033.97 23,178.85 22,973.95 0.3%

DJ US Maritime 303.45 301.76 291.54 286.68 293.93 1.2%

$ / € 1.36 1.35 1.35 1.36 1.36 -0.1%

$ / ₤ 1.60 1.60 1.60 1.61 1.61 -0.5%

¥ / $ 98.37 97.93 97.33 96.96 96.94 1.2%

$ / NoK 0.17 0.17 0.17 0.17 0.17 -0.4%

Yuan / $ 6.13 6.12 6.13 6.13 6.12 0.0%

Won / $ 1,072.27 1,072.65 1,074.43 1,073.62 1,072.23 0.0%

$ INDEX 85.30 85.30 85.10 84.60 84.70 0.8%

Market Data

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nci

es

Sto

ck E

xch

ange

Dat

a

1,180

1,240

1,300

1,360

1,420

1,480

90

100

110

120

goldoil

Basic Commodities Weekly Summary

Oil WTI $ Oil Brent $ Gold $

11-Oct-13 4-Oct-13W-O-W

Change %

Rotterdam 913.5 903.5 1.1%

Houston 1,002.0 1,000.0 0.2%

Singapore 931.5 915.5 1.7%

Rotterdam 585.0 598.0 -2.2%

Houston 598.5 604.5 -1.0%

Singapore 613.5 625.5 -1.9%

Bunker Prices

MD

O3

80

cst

CompanyStock

ExchangeCurr. 11-Oct-13 04-Oct-13

W-O-W

Change %

AEGEAN MARINE PETROL NTWK NYSE USD 11.56 12.27 -5.8%

BALTIC TRADING NYSE USD 5.12 5.15 -0.6%

BOX SHIPS INC NYSE USD 3.87 4.08 -5.1%

CAPITAL PRODUCT PARTNERS LP NASDAQ USD 8.70 8.90 -2.2%

COSTAMARE INC NYSE USD 17.33 17.70 -2.1%

DANAOS CORPORATION NYSE USD 3.90 3.99 -2.3%

DIANA SHIPPING NYSE USD 11.86 12.33 -3.8%

DRYSHIPS INC NASDAQ USD 3.49 3.78 -7.7%

EAGLE BULK SHIPPING NASDAQ USD 7.11 7.59 -6.3%

EUROSEAS LTD. NASDAQ USD 1.30 1.44 -9.7%

FREESEAS INC NASDAQ USD 0.57 0.73 -21.9%

GENCO SHIPPING NYSE USD 3.36 3.57 -5.9%

GLOBUS MARITIME LIMITED NASDAQ USD 3.13 3.12 0.3%

GOLDENPORT HOLDINGS INC LONDON GBX 45.25 46.25 -2.2%

HELLENIC CARRIERS LIMITED LONDON GBX 47.00 47.00 0.0%

NAVIOS MARITIME ACQUISITIONS NYSE USD 3.80 3.81 -0.3%

NAVIOS MARITIME HOLDINGS NYSE USD 7.12 7.58 -6.1%

NAVIOS MARITIME PARTNERS LP NYSE USD 14.40 14.57 -1.2%

NEWLEAD HOLDINGS LTD NASDAQ USD 0.11 0.11 0.0%

PARAGON SHIPPING INC. NYSE USD 5.46 5.78 -5.5%

SAFE BULKERS INC NYSE USD 6.63 7.00 -5.3%

SEANERGY MARITIME HOLDINGS CORP NASDAQ USD 1.51 1.68 -10.1%

STAR BULK CARRIERS CORP NASDAQ USD 8.34 8.66 -3.7%

STEALTHGAS INC NASDAQ USD 10.61 10.94 -3.0%

TSAKOS ENERGY NAVIGATION NYSE USD 4.88 5.19 -6.0%

TOP SHIPS INC NASDAQ USD 1.69 1.81 -6.6%

Maritime Stock Data