Weekly Market Report

Transcription

1 Weekly Market Report Week 46/218 (12 November 16 November) Comment: China s Crude Oil Imports index comment page 2 chartering dry cargo 3 tankers 6 containers 8 sale & purchase newbuildings / finance 9 secondhand / demolition 1 commodities news 11 prices 13 Follow us on: linkedin.com/company/banchero-costa twitter.com/banchero_costa network chartering - sale&purchase - ship finance - insurance - agency - research - and more...

2 million tonnes million tonnes million tonnes comment China s Crude Oil Imports In October, Chinese crude oil imports reached a new record of 4.8 million tonnes, an increase of 9.6 percent monthon-month and 31.5 percent year-on-year based on customs data. The increase has continued from the strength of previous months: In the first 1 months of 218, imports increased 8.1 percent year-on-year to million tonnes. The country s declining domestic crude output continues to be supportive for import volumes, with the National Bureau of Statistics of China (NBS) reporting domestic production falling 1.9 percent year-on-year to million tonnes over Jan-Sep 218. While the U.S.-China trade war threatens to dampen China s economic growth, stimulus measures are expected to help keep GDP growth above 6 percent. The building of China s strategic petroleum reserves also remains ongoing, with the IEA estimating 287 million barrels in strategic stockpiles at the end of 217, equivalent to 57 percent of the government s 5 million barrel target. Short term factors also led to October s jump in import volume, which may not all be replicable in subsequent months. Chinese importers were likely stockpiling on Iranian crude ahead of the renewed U.S. sanctions, although purchases may now be wound back after China was among eight countries granted a 6-month waiver on the sanctions. Imports by independent refineries also strengthened to almost 2 million bpd (8.3 million tonnes) in October, according to data from Refinitiv Oil Research and Forecasts. This follows a buying spree in August-September when refining margins were positive, and as independent refineries seek to use up their import quotas before the end of the year. With Platts analytics estimating that quota holders used only 67 percent of their annual quota, leaving 4 million tonnes in quotas still available for the remainder of the year, imports by independent refineries are expected to stay bullish at above 9 million tonnes per month over Nov-Dec. As China diversifies its supplies from traditionally largest supplier Saudi Arabia and looks for alternatives to U.S. supplies amid trade war uncertainties, crude oil imports from Russia, Iraq, and Brazil have been increasing. Russia replaced Saudi Arabia as China s main crude supplier in 216, and shipments from Russia have continued to strengthen by 12.6 percent year-on-year to 5.7 million tonnes over Jan-Sep 218. Imports from Brazil also saw a significant pick up of 26.7 percent to 22.7 million tonnes, and could continue to increase as Petrobras begins marketing their new Buzios crude a medium-sweet grade expected to be popular in China as their anti-pollution drive continues. Monthly China Crude Oil Imports - last 36 months (source: customs data ; imports in million tonnes) China - Monthly Crude Oil Imports - Seasonality (source: customs data ; imports in million tonnes) /215 4/216 1/216 4/217 1/217 4/218 1/ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec China - Crude Oil Imports by Source (source: customs data ; in million tonnes) China - Crude Oil Import Sources in Jan-Sep 218 (source: customs data ; in % of import volume) Russia Saudi Arabia Angola Iraq Oman Iran Brazil Others U.S. 4% Venezuela 4% Kuwait 5% Brazil 7% Others 18% Iran 7% Oman 7% Russia 15% Iraq 1% Saudi Arabia 12% Angola 11% 216 (1-9) 217 (1-9) 218 (1-9) market report - week 46/218 2

3 dry cargo chartering Capesize Market The Capesize market continued to fall to such an extent that the 5 tc reached its lowest level since April 218. Nevertheless, small signs of improvement were recorded by the end of the week. In the Pacific, as a consequence of Bhp s train derailment, the standard route West Australia to Qingdao fell to $5.4/mt basis end-november dates. However, the sentiment changed by the end of the week and rates improved again with $6.4/mt recorded for very early-december dates. Rates for the standard route Saldanha Bay/Qingdao went quickly down to the lows $11/mt for mid-december dates. Out of Brazil, although Vale and other Charterers were looking for vessels on the Tubarao/Qingdao route, the huge number of incoming ballasters, able to cover dates between the end of November and the beginning of December, forced Owners to accept very low rates and many vessels were fixed in the lows/mids $14/mt. As a consequence, the back haul from Brazil and South Africa went down to $7.5/7.25/mt. In the Atlantic basin, the lack of fresh cargoes forced Owners to fix in the lows $2,/d for front hauls and $8,/9,/d for Trans-Atlantic trades. The period the activity was almost absent due to the poor market trend. Rates Unit 16-nov 9-nov W-o-W Y-o-Y BCI TC Avg. usd/day ,5% -57,7% C8 Transatlantic r/v usd/day ,5% -63,3% C14 China-Brazil r/v usd/day ,9% -52,7% C1 Pacific r/v usd/day ,9% -54,5% 1 Year TC Period usd/day ,% +6,7% Panamax Market In the Panamax market rates were under pressure in all areas especially in t he Pacific where the news of China apparently cancelling coal stems created uncertainty and made several ships failing on subjects from Indonesia. Also Nopac rates, despite higher levels of activity, remained low. The South American market recorded a negative week as Owners had to fix at lower rates for early-december dates due to an increasing tonnage list. The North Atlantic area was the only one to maintain good market levels with rates for Kamsarmaxes on the TransAtlantic trades around $15,/d BCI TC and Capesize 1-YR Period (usd/day) 1-YR TC BCI TC Rates Unit 16-nov 9-nov W-o-W Y-o-Y BPI TC Avg. usd/day ,9% +11,7% BPI 82 TC Avg. usd/day ,1% n.a. P1 Transatlantic r/v usd/day ,5% +2,9% P2 Skaw-Gib Trip East usd/day ,% +16,2% P3 Pacific r/v usd/day ,% +5,3% 1 Yr TC Period Panamax usd/day ,3% +1,% 1 Yr TC Period Kamsarmax usd/day ,1% +15,6% market report - week 46/218 BPI TC and Panamax 1-YR Period (usd/day) YR TC BPI TC 3

4 Handy Supramax Far East Pacific India S Africa N Europe Mediterranean US Atlantic South America dry cargo chartering Supramax & Handysize Market The Handy market softened in USG with rates to Cont/Med and inter-usg around $16/17,/d. The Supramax market was very active with many fixtures and a good amount of cargoes still to be fixed. Supramax were fixed around 2/21,/d to Cont/Med with petcoke whilst Ultramax were getting $23,/d, grain cargoes were done around $21,/d. Fronthauls were fixed around $24/25,/d. The negative trend affecting the ECSAm market slowed and rates remained quite flat. Tess58 were getting fixed around $17,5/18,/d to Cont/Med, Ultramax were fixed in the $19,s/d. Trips to Spore/Japan on Supramax were fixed around $14,75/d + 475, bb while Ultramax were getting rates in the low $15,s/d + 5, bb. 38, dwt were getting $16,5/17,/d for trips to Cont/Med and $19/2,/d to F East. Coastal trips in Brazil were fixed at $17,/d. The market in Cont remained stable for both Supramax and Handysize. A modern 35, dwt was rumored for a trip to E Med at $11,/d basis dely Cont, whilst modern Handies were assessed around $9,25/d to USG/US EC. On Supramax not many fixtures were reported, but a modern 55, dwt got for short period around $14/15,/d basis dely Cont redely Atlantic. On spot trips another 55, dwt was fixed around $12/12,5/d basis dely Cont to E Med and trips to Spore/Japan range were assessed around $18,/d, but limited activity on this route was recorded. Med market recorded the first negative week, the area remains strong, but the general feeling worsened. Handies were fixed around $12/13,/d from BSea to Cont and Supra/Ultramax were getting $15/16,/d on the same route. On short period, Handies were asking $14,/d with redely WW, the rate that actually got a Supramax with redely Atlantic for 4/6 months. A 63,2 dwt was fixed at $16,1/d basis dely Greece via BSea to Cont. The activity slowed a little in MEG. A 55, dwt was fixed at $13,/d basis dely aps Salalah for a trip to EC India. A 57, dwt got 13,/d to WC India. On MEG/China a 56, dwt got $15,/d to carry sulphur. From EC India a 55, dwt was fixed to WC India at slightly less than $1,/d. From S Africa a 56, dwt was fixed to MEG/WC India at $12,/d + 2, bb and a 57, dwt open Tuticorin got low $11,s/d for 1 year TC. The negative trend persisted, but timecharter rates limited the loss to around $4/5/d which suggests that the bottom is near. The amount of fresh enquiries did not help, but a little more coal and nickel ore demand form SE Asia to China was spotted. Trading within SE Asia was very limited, a 53, dwt with dely Vietnam was fixed to perform a coal cargo from Indonesia to Taiwan at $5,/d. On the coal trade from Indonesia to China a 56, dwt Dolphin-type achieved $9,5/d basis dely Philippines and an Ultramax with similar dely got $1,75/d. Nickel ore from Philippines was fixed on two Dolphin-type at $7,1/d basis dely S China. On other trades a 63, dwt with dely N China was booked for a trip with coal via Australia to India at $9,/d and another similar unit got $9,5/d basis dely Vietnam via Indonesia to India. On period another 63, dwt was committed for 5/7 months at $12,35/d basis dely EC China. The Handysize market was described as almost unchanged, but no fixtures were officially reported. Rates market report - week 46/218 Unit 16-nov 9-nov W-o-W Y-o-Y BSI TC Avg. usd/day ,2% +14,2% S4A 58 USG-Skaw/Pass usd/day ,7% +8,7% S9 58 WAF-ECSA-Med usd/day ,5% +12,9% S1B 58 Canakkale-FEast usd/day ,% +33,9% S11 58 Pacific r/v usd/day ,5% +12,5% 1 Year TC Period usd/day ,1% +12,2% BHSI TC Avg. usd/day ,4% +1,% 1 Year TC Period usd/day ,6% +6,7% 16. BSI TC and Supramax 1-YR Period (usd/day) YR TC BSI TC 12. BHSI TC and Handysize 1-YR Period (usd/day) YR TC BHSI TC 4

5 Handysize Supramax Panamax Capesize dry cargo chartering Dry Bulk FFAs (Baltic Forward Assessments) Unit 16-nov 9-nov W-o-W Premium/ Discount Nov (18) usd/day ,3% +36,4% Dec (18) usd/day ,7% +47,1% Jan (19) usd/day ,1% +33,9% Q1 (19) usd/day ,% +27,9% Q2 (19) usd/day ,3% +5,4% Q3 (19) usd/day ,7% +89,6% Cal 19 usd/day ,4% +78,9% Cal 2 usd/day ,5% +81,3% Cal 21 usd/day ,4% +64,8% Capesize Forward Curve (usd/day) nov-17 nov-18 nov-19 nov-2 Nov (18) usd/day ,7% -,4% Dec (18) usd/day ,% -1,2% Jan (19) usd/day ,2% -14,% Q1 (19) usd/day ,1% -1,5% Q2 (19) usd/day ,6% -,5% Q3 (19) usd/day ,2% -7,1% Cal 19 usd/day ,% -4,3% Cal 2 usd/day ,4% -12,4% Cal 21 usd/day ,1% -21,4% Panamax Forward Curve (usd/day) nov-17 nov-18 nov-19 nov-2 Nov (18) usd/day ,9% +1,% Dec (18) usd/day ,4% -,4% Jan (19) usd/day ,4% -1,6% Q1 (19) usd/day ,6% -2,% Q2 (19) usd/day ,6% +6,7% Q3 (19) usd/day ,9% +2,% Cal 19 usd/day ,4% +4,3% Cal 2 usd/day ,6% -2,8% Cal 21 usd/day ,4% -1,4% Supramax Forward Curve (usd/day) nov-17 nov-18 nov-19 nov-2 Nov (18) usd/day ,7% +,1% Dec (18) usd/day ,% -3,% Jan (19) usd/day ,7% -6,% Q1 (19) usd/day ,4% -7,4% Q2 (19) usd/day ,8% -1,4% Q3 (19) usd/day ,2% -3,% Cal 19 usd/day ,8% -2,2% Cal 2 usd/day ,8% -2,7% Cal 21 usd/day ,8% -4,2% Handysize Forward Curve (usd/day) nov-17 nov-18 nov-19 nov-2 market report - week 46/218 5

6 Aframax Suezmax VLCC tanker chartering Crude Oil Tanker Market VLCC market in the Middle East Gulf recorded another quiet week with rates softening to WS9 for East discharge and WS4 for West and activity slightly picking up only by Friday. Same situation was seen out of West Africa, where, as tonnage availability built up, rates for East destinations settled in the mid WS8s. Demand remained stable in the Caribs and, thanks to a thinner position list, rates for Singapore discharge jupmed up to the highs $7 mln. The Suezmax market in West Africa, thanks to a balanced number of cargoes, recorded steady rates of around WS12 for UKCont discharge. In Med, the increasing congestion at Turkish straits and the rising demand for vessels going east allowed rates to increase up to the lows WS17 off Black Sea. The higher delays at Turkish straits, which resulted in a thinner list of available vessels, affected also the Aframax market in Med: after reaching the bottom at the end of the previous week, Aframax rates firmed up to around WS15. Steady rates were recorded in the North Sea with CrossCont trades at around WS117 and Baltic/Ukc in the lows WS9. Due to the bad weather which affected the Caribs area, rates for Aframax kept WS235 level. Rates Unit 16-nov 9-nov W-o-W Y-o-Y TD1 MEG-USG ws 39,64 41,23-3,9% +49,3% TD1 MEG-USG usd/day ,6% +164,3% TD2 MEG-Spore ws 9,67 94,88-4,4% +28,1% TD3C MEG-China ws 89,58 93,67-4,4% +28,6% TD3C MEG-China usd/day ,1% +63,9% TD15 WAF-China ws 87,5 9,75-3,6% +24,6% Avg. VLCC TCE usd/day ,2% +15,7% 1 Year TC Period usd/day ,% +15,4% TD6 BSea-Med ws 172,78 157,78 +9,5% +97,7% TD6 BSea-Med usd/day ,3% +57,4% TD2 WAF-Cont ws 12,91 12, +,8% +63,% MEG-EAST ws 122, 122, +,% +35,6% MEG-WEST ws 45, 45, +,% +,% Avg. Suezmax TCE usd/day ,9% +48,5% 1 Year TC Period usd/day ,% +38,9% TD7 NSea-Cont ws 117,5 118,33 -,7% +29,4% TD7 NSea-Cont usd/day ,2% +56,8% TD17 Baltic-UKC ws 93,33 94,72-1,5% +41,2% TD17 Baltic-UKC usd/day ,2% ,2% TD19 Med-Med ws 148,89 115,83 +28,5% +51,4% TD19 Med-Med usd/day % +468,2% TD8 Kuwait-China ws 143,61 139,89 +2,7% +2,1% TD8 Kuwait-China usd/day ,8% +98,2% TD9 Caribs-USG ws 234,72 236,67 -,8% +133,4% TD9 Caribs-USG usd/day ,6% +197,% Avg. Aframax TCE usd/day ,2% +491,1% 1 Year TC Period usd/day ,% +16,7% market report - week 46/ VLCC MEG-Far East (usd/day) TD6 Suexmax BSea-Med (usd/day) TD19 Aframax Med-Med (usd/day) YR TC Period (usd/day) nov-17 feb-18 mag-18 ago-18 nov-18 VLCC Suezmax Aframax 6

7 Dirty Clean tanker chartering Product Tanker Market The East of Suez market for LR2 recorded a steady week with rates on the MEG/Japan route ending at WS12 (around $11,/d TCE) and MEG/UKC trades at $1.775 mln. Rates for LR1s on MEG/Japan trades picked up by mid-week and reached WS13 (around $9,/d TCE). West of Suez, rates for LR1 and LR2 on the UKC/Japan route kept on improving and closed the week at $1.85 mln and $2.15 mln respectively. The Clean Handysize market in Med recorded a very positive week as rates for 3, mt on CrossMed jumped to WS16 level while WS185 was reported multiple times off Black Sea. Contrary to the Med, Cont market slowed down and Clean Handysizes had to accept by the end of the week WS167.5 for Baltic/UKC trades. Clean MRs market from the Cont towards US destinations slowed down as well and closed the week at WS14 level basis 37, mt, A significant increase of more than 3 WS points was recorded for Clean Mrs on the USG/Europe routes, as rates jumped from WS117.5 to WS15 basis 38, MT. The Dirty market in Med recorded another quiet week for both Handysize vessels and MRs. Even if the position list remained fairly tight, the low number of cargoes made CrossMed rates basis 3, mt soften to WS225 while B Sea loadings ended the week at WS24/245 level. Same situation was recorded on the Dirty Mrs market in Med, where rates for 45, mt out of B Sea softened to WS155 level. Very few cargoes were recorded in Cont, where a 3, mt cargo was rumored on subject at WS22 level form the Baltic Sea. The Panamax market was quiet and rates for fixtures on the Med-UKC/TA route softened down to WS13 level. Rates Unit 16-nov 9-nov W-o-W Y-o-Y TC1 MEG-Japan ( 7 5 k ) ws 12, 12,94 -,8% -2,1% TC1 MEG-Japan ( 7 5 k ) usd/day ,2% +1,8% TC8 MEG-UKC ( 6 5 k ) usd/mt 22,47 21,9 +2,6% +9,% TC5 MEG-Japan ( 5 5 k ) ws 13,28 128,6 +1,7% +3,5% TC5 MEG-Japan ( 5 5 k ) usd/day ,5% +28,% TC2 Cont-USAC ( 3 7 k ) ws 14, 154,72-9,5% -4,7% TC2 Cont-USAC ( 3 7 k ) usd/day ,8% +,2% TC14 USG-Cont ( 3 8 k ) ws 151,25 118,75 +27,4% +14,2% TC14 USG-Cont ( 3 8 k ) usd/day ,7% +77,% TC9 Baltic-UKC ( 2 2 k ) ws 167,14 174,29-4,1% +21,2% TC6 Med-Med ( 3 k ) ws 163,69 154,44 +6,% +23,3% TC7 Spore-ECAu ( 3 k ) ws 18,94 18, +,5% -3,4% TC7 Spore-ECAu ( 3 k ) usd/day ,4% -23,% TC11 SK-Spore ( 4 k ) usd/mt 9,65 9,26 +4,2% -17,8% MR Pacific Basket usd/day ,7% -22,2% MR Atlantic Basket usd/day ,8% +32,7% LR2 1 Year TC Period usd/day ,% +5,% MR2 1 Year TC Period usd/day ,% -7,1% TD12 Cont-USG ( 5 5 k ) ws 134,69 14,63-4,2% +17,8% TD18 Baltic-UKC ( 4 K ) ws 219,58 225,42-2,6% +16,6% BSea-Med ( 3 k ) ws 245, 245, +,% +19,5% Med-Med ( 3 k ) ws 225, 232,5-3,2% +15,4% Delays at Turkish Straits for Daylight Restricted Vessels Unit 16-nov 9-nov W-o-W Y-o-Y Northbound days 7, 5, +4,% +16,7% Southbound days 7, 6, +16,7% +16,7% market report - week 46/218 TC1 LR2 MEG-Japan (usd/day) MR Atlantic Basket (usd/day) MR Pacific Basket (usd/day) YR TC Period (usd/day) nov-17 feb-18 mag-18 ago-18 nov-18 LR2 MR2 7

8 containers Containership Market Although rates have not generally improved, last week the Container market showed a bit more of activity, particularly in the 1,7 TEUs segment where Hapag Lloyd fixed 4 vessels which have been in the Mediterranean looking to find a suitable employment for quite some time. Recent Fixtures Vessel Name Built TEUs TEU@14 Gear Fixture Period Rates Macao Strait 28 1,793 1,312 yes Maersk 4-1 m $7.5/d Ludwig Schulte 28 1,74 1,295 yes Hapag Lloyd 6-11 m $7.5/d Hansa Rendsburg 2 1,74 1,33 yes Hapag Lloyd 6-11 m $7.5/d Cerinthus 213 1,728 1,275 yes Hapag Lloyd 1-12 m $8.75/d AS Selina 212 1,7 1,277 yes Hapag Lloyd 6-12 m $7,/d Atlantic Silver 28 1, yes CMA-CGM 8-1 m $7,5/d VHSS Containership Timecharter Assessment (source: Hamburg Shipbrokers Association) Unit 15-nov 8-nov W-o-W Y-o-Y ConTex index ,6% +8,8% 425 teu (1Y, g less) usd/day ,3% +35,% 35 teu (1Y, g less) usd/day ,1% +27,7% 27 teu (1Y, g less) usd/day ,3% +11,2% 25 teu (1Y, geared) usd/day ,3% +15,1% 17 teu (1Y, geared) usd/day ,5% +3,7% 11 teu (1Y, geared) usd/day ,2% +,8% Shanghai Containerized Freight Index (source: Shanghai Shipping Exchange) Unit 16-nov 9-nov W-o-W Y-o-Y Comprehensive Index index ,1% +29,6% Services: Gearless - 1 YR TC Period (usd/day) /11/17 15/3/18 15/7/18 15/11/ Geared - 1 YR TC Period (usd/day) /11/17 15/3/18 15/7/18 15/11/ Shanghai - North Europe usd/teu ,4% +6,7% Shanghai - Mediterranean usd/teu ,3% +27,2% Shanghai - WC USA usd/feu ,8% +12,5% 1. 9 Shanghai Container Freight Index Shanghai - EC USA usd/feu ,5% +17,6% Shanghai - Dubai usd/teu ,9% +26,3% Shanghai - Santos usd/teu ,7% -55,8% Shanghai - Singapore usd/teu ,4% -13,7% market report - week 46/

9 sale & purchase Newbuilding Market In the Bulk sector, Shandong Shipping ordered 5 capes plus 5 optional units (about 18, dwt) at the Shanghai Waigaoqiao Shipbuilding yard with delivery during 22/221. Price was reported to be over $5 mln. Always in China, Chengxi shipyard received an order from Wah Kwong for two Kamsarmax (about 82, dwt) that will be delivered during 2nd half of 221. In the container segment, Zhoushan Changhong received two orders, one from MTT Shipping for 2 x 1,8 TEUs feeders, and the other from X-Press Feeders for 6 x 2,7 TEUs feeders. Vessel will be delivered starting from Q4 of 22, all vessels are Tier 2 compliant. Price was reported to be around $23/24 mln for the 1,8 TEUs units and around $35 mln for the 2,7 TEUs units. In the tanker sector, 2 x MR units were ordered by Masumoto Shipping at Hyundai-Vinashin for delivery during 1st half of 22. For what concern chemical segment, Raffles Shipmanagement signed 2 plus optional 4 chemical tankers (about 19,7 dwt) at Wuchang Shipyard with deliveries during 2nd half of 22 and 1st half of 221. Newbuilding Reported Orders Type Size Built Yard Buyers Price Comment Tanker 158, dwt 4Q 22 Daehan Maran Tankers 63 2 units + scrub. Bulker 18, dwt 22/221 SWS Shandong Shipping exc units Cont 2,7 TEU 4Q 22 Zhoushan Changhong X-Press Feeders 35 6 units Indicative Newbuilding Prices (China) Unit 1-nov-18 M-o-M Y-o-Y Capesize usd mln 48,4 +2,% +8,6% Ultramax usd mln 26,4 +1,3% +7,7% Supramax usd mln 23,2 +1,8% +7,8% VLCC usd mln 83,3 +,4% +7,1% LR2 Coated usd mln 46,3 +,2% +6,9% MR2 Coated usd mln 33,7 +,% +2,4% Interest Rates Libor USD Libor Euro Euribor Euro 6 Months 2,86 -,33 -,26 12 Months 3,12 -,22 -,15 Interest Rate Swaps 3 yrs 5 yrs 7 yrs 1 yrs 15 yrs 2 yrs USD 3,3 3,4 3,7 3,14 3,22 3,24 Euro,3,34,62,95 1,31 1,47 Exchange Rates 16-nov 9-nov W-o-W Y-o-Y USD/Euro 1,13 1,13 +,% -3,6% Yen/USD 112,8 113,8 -,9% -,2% SK Won/USD ,% +2,5% market report - week 46/218 Newbuilding Prices (usd mln) nov-17 feb-18 mag-18 ago-18 nov-18 Ultramax LR2 MR2 USD/Euro Exchange 1,3 1,25 1,2 1,15 1,1 Yen/USD Exchange

10 sale & purchase Secondhand Market The Secondhand market recorded strong activity levels over last week. Starting with the Dry Bulk sector, Singapore based buyers were reported contracting a 4 Capesizes deal: "New Huzhou", "New Quzhou" and "New Taizhou" around 175, dwt 21 built Jinhai and the Capesize "New Shanghai" around 18, dwt 211 built Dalian were reported sold enbloc at $98 mln. The Capesize "Attikos" around 178, dwt 212 built Sundong was rumored sold to Navios Maritime with a cash plus shares structure equating to a total of $32.5 mln. The Post Panamax "Huoyo" around 93, dwt 27 built Namura was reported sold at $14.8 mln while the Kamsarmax "Tenten around 81, dwt 212 built New Century was committed at excess of $18 mln. The "Ocean Wind" around 76, dwt 26 built Imabari was reported sold at $1.7 mln while the older 21 "Alcyon" was sold at $7.45 mln. On the Supramax size the 58, dwt 21 built Yangzhou vessels "Walsall" and "Wigan" were both reported sold on a bank driven sale at $11 mln each to Asiatic-LLoyd while the "Ocean Carrier" and the "Ocean Vendor" both around 56, dwt 212 built Tianjin Xingang were reported sold at $23 mln enbloc to Chinese buyers. On the smaller sizes, "Asian Beauty" around 28, dwt 211 built Shimanami was reported sold at $9 mln with t/c back to Japanese buyers while the 2 laker vessels Bora around 29, dwt 21 Wuhu Xinglian and sister vessel Mistral 21 built was sold enbloc to Canfornav at $17 mln. On the tanker market, MR2 vessels Alpine Minute and Alpine Mistery both around 49, dwt Hyudai Mipo 29 built have been sold on an enbloc deal at $17 mln each to Norden while the Maersk Misaki around 47, dwt 211 built was reported sold at $16.7 mln. LR1 vessels King Daniel and King Douglas both around 73, dwt 29 built New times were reported sold at $13.5 mln to Norwegian KS buyers while the 1 year younger FPMC P Glory aound 74, dwt 29 built STX was committed in the low/mids $14 mln. The Aframax tanker Yasa Golden Horn around 116, dwt 27 built Samsung was committed at $2.5 mln while the Petrovsk around 16, dwt 24 built Tsuneishi was sold to clients of NGM Energy at $13.5 mln. Secondhand Reported Sales TYPE VESSEL NAME DWT BLT YARD BUYERS PRICE NOTE Bulk Champioship Dalian C.of Cargill NA Bulk Resale H Tsuneishi Zhoushan C.of BW group 3 cash/share deal.5 year BBC. Bulk Gemini Pioneer Mitsui Greek buyers 13,9 Crude GC Fuzhou Jinhai Crude Tianjin Jinhai Prod Alpine Minute Hyundai Mipo Prod Alpine Mystery Hyundai Mipo Baltic Secondhand Assessments Unit 19-nov 12-nov W-o-W Y-o-Y Capesize usd mln 35,8 36, -,5% +7,8% Panamax usd mln 21,7 21,8 -,4% +5,7% Supramax usd mln 18,3 18,4 -,3% +6,% VLCC usd mln 62,8 62,7 +,3% +2,9% Aframax usd mln 3,1 3,2 -,4% +2,8% MR Product usd mln 26, 26, +,1% +11,% Baltic Demolition Assessment (Subcontinent) Unit 19-nov 12-nov W-o-W Y-o-Y Dry Bulk usd/ldt 438, 443, -1,1% +14,1% Dirty Tanker usd/ldt 45, 455,5-1,2% +14,4% Clean Tanker usd/ldt 451,5 458, -1,4% +15,5% market report - week 46/218 C.of Delta Tankers 114 en bloc deal C. Of Norden Secondhand Values (usd mln) en bloc deal.dd due 219. BWTS fitted 15 19/11/17 19/3/18 19/7/18 19/11/18 Panamax Aframax MR SubCon Demo Assessment (usd/ldt) 35 19/11/17 19/3/18 19/7/18 19/11/18 Dirty Tnk Clean Tnk Dry Bulk 1

11 news Dry Bulk Commodities Second iron ore train derails in Australia; no injuries An empty iron ore train has derailed in Western Australia after poor weather eroded part of the track, operator Mineral Resources Ltd said on Monday, just a week after the derailing of a runaway ore train in the state's north. About 3 empty iron ore wagons in a 16-wagon train came off the track on Sunday south of the sparsely populated town of Norseman, some 7 km east of Perth, between the port of Esperance and Mineral Resources' Koolyanobbing mine. Traders forecast bearish outlook for iron ore, steel on weak China economic data The steel market responded negatively to mixed economic data out of China Wednesday, with most tipping a weak end to the year. The People's Bank of China announced that lending had almost halved to Yuan 697 billion ($1 billion) in October, compared with Yuan 1.38 trillion in September. Year-on-year growth of M2 money supply - which is seen as a key gauge of liquidity - fell to 8% in October from 8.3% in September. The tighter cash flow and lending was in spite of Beijing's efforts to lift business lending to the private sector and support infrastructure projects. China spooks grain trade with anti-dumping probe into Australia barley imports China launched a probe into whether Australian barley suppliers dumped cheap imports into their biggest market over the past year, catching the grain trade on the hop just as drought shrivels Australian crops and drives prices higher. Coming amid strained diplomatic ties between Beijing and Canberra, the move by Beijing's commerce ministry comes after the China Chamber of International Commerce complained that Australian barley was sold at lower-than-normal prices for the 12 months through September 218, hurting domestic suppliers. US soybean harvest reaches 88% completion: USDA The current US soybean crop was 88% harvested as of November 11, up from 83% the previous week, data from the US Department of Agriculture showed Tuesday. Continued wet and cold weather prevented major harvest progress week on week. Overall progress still lags behind the completion at the same time last year and the five-year average, which were both 93%. The 18 states surveyed accounted for 95% of the 217 soybean acreage, the report said. The marketing year runs from September 1 to August 31. China tightens ban further on waste imports China has tightened a ban on solid waste imports, the official Xinhua news agency said, part of the country s war on pollution which has seen a series of measures to curb imports of scrap this year. The state news agency, citing a government document, said late on Sunday that imports of 32 types of solid waste would be banned from Dec. 31, including hardware, ships, auto parts, titanium, wood, and stainless steel waste and scrap. China s scrap imports have tumbled this year as the country has ratcheted up bans and cracked down on smugglers. Earlier in the year China clamped down on imports of scrap metal, paper and plastics, as a part of a campaign against foreign garbage. Philippines says nine suspended mines can resume if conditions met The Philippines environment ministry said nine suspended mines will be allowed to resume operations if they rectify previous violations of environmental regulations, a move that could boost nickel output in the major supplier of the metal. The nine mines were ordered permanently closed in February last year as part of an environmental clampdown on the sector. They appealed the decision, along with four other mines, and after a review, Environment and Natural Resources Secretary Roy Cimatu changed closure of the mines to a suspension. Funds' CBOT views seen little changed after USDA bombshell -Braun The U.S. Department of Agriculture s monthly supply and demand report can often be mundane in November, but Thursday s update was far from uneventful, with loads of moving parts. However, the new data did not appear to significantly change investors minds toward Chicago-traded grains and oilseeds. The report ultimately revealed an expected tightening of global grain supplies into mid-219 and an expansion of soybean stocks, especially in the United States. However, the adjustment of historical data out of China made it difficult to quickly identify these trends in the grains. Bunge sees Brazil 219 wheat imports rising 11 pct on crop failure Brazil wheat imports are expected to increase 11 percent in 219 to 7 million tonnes as the country grapples with crop failures this year, a senior manager for commodities trading firm Bunge Ltd said on Friday. In Brazil, weather problems including rainfall during the harvest have contributed to the forecast for Brazil's 218 wheat crop being cut to 5.3 million tonnes from the 6 million tonnes projected originally, said Edson Csipai, Bunge's manager of grain origination. Source: Thomson Reuters/ Platts market report - week 46/218 11

12 news Oil & Gas Iraq restarts some Kirkuk oil exports after year-long halt Iraq on Friday restarted exports of Kirkuk oil, halted a year ago due to a standoff between the central government and Kurdistan's semi-autonomous region, after a new government in Baghdad agreed a tentative deal with Erbil. The development is a win for the U.S. government, which has been urging both sides to settle the dispute and resume flows to help address a shortage of Iranian crude in the region after Washington imposed new sanctions on Tehran. Upset by Trump's Iran waivers, Saudis push for deep oil output cut When U.S. President Donald Trump asked Saudi Arabia this summer to raise oil production to compensate for lower crude exports from Iran, Riyadh swiftly told Washington it would do so. But Saudi Arabia did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh's arch-rival down to zero, OPEC and industry sources say. Asia condensate prices plunge on weak naphtha, more Iran supplies Spot prices in Asia for condensate, an ultra light crude oil, have plunged this week, dragged down by weak naphtha margins and the prospect of more supplies coming out from Iran, several trade sources said on Friday. Australian condensate has sold at the deepest discount in five years, while cargoes from Qatar are selling at discounts for the first time in more than a year, according to the sources and data from Reuters and Refinitiv Eikon. Saudi Arabia to ship less oil in Dec as it floats cut talks possibility Saudi Arabia plans to reduce oil supply to world markets by.5 million barrels per day in December, its energy minister said on Sunday, as the OPEC power faces uncertain prospects in its attempts to persuade other producers to agree a coordinated output cut. Khalid al-falih told reporters that Saudi Aramco s customer crude oil nominations would fall by 5, bpd in December versus November due to seasonal lower demand. The cut represents a reduction in global oil supply of about.5 percent. Iran sells more oil to private exporters to bypass U.S. curbs Iran sold 7, barrels of crude oil to private companies for export on Sunday in a second round of sales aimed at countering U.S. sanctions on the country's exports, oil ministry news website SHANA reported. Three unnamed companies paid $64.97 per barrel for two crude shipments of 245, barrels each and one shipment of 21, barrels, which were traded on Iran's energy bourse, SHANA reported. Global oil demand under growing threat from electric cars, cleaner fuel Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 24 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said on Tuesday. Oil demand is not expected to peak before 24, the Paris-based IEA said in its 218 World Energy Outlook. Global oil market faces surplus throughout 219 as demand growth slows Global oil supply will outpace demand throughout 219, as a relentless rise in output swamps growth in consumption that is at risk from a slowing economy, the International Energy Agency said on Wednesday. In its monthly report the Paris-based IEA left its forecast for global demand growth for 218 and 219 unchanged from last month at 1.3 million barrels per day (bpd) and 1.4 million bpd, respectively, but cut its forecast for non-oecd demand growth, the engine of expansion in world oil consumption. Japan, S.Korea plan to resume Iran oil imports from January Refiners in Japan and South Korea are looking to resume Iranian oil imports from January after receiving waivers from U.S. sanctions on Tehran, sources familiar with the matter said. The unexpected resurgence in Iranian oil imports due to the waivers has helped push spot prices for Middle East crude and condensate to their lowest in more than a year. Saudi Sep crude oil exports highest since Jan 217 Saudi Arabia's crude oil exports surged to a 2-month high of million b/d in September, as the kingdom continues to draw down its stocks, the latest figures from the Joint Organizations Data Initiative showed. The September export figure was a 219, b/d rise from September and the highest since January 217's million b/d, in the first month that OPEC instituted its production cuts. Refinery runs in OPEC's largest producer fell to million b/d in October, down 172, b/d from September, while direct crude burn for power generation increased to 536, b/d, up from 49, b/d. Combining the exports, refinery runs and crude burn figures indicated that Saudi Arabia supplied million b/d in September. Source: Thomson Reuters/ Platts market report - week 46/218 12

13 MGO IFO 18 IFO 38 commodities Bunker Prices Unit 16-nov 9-nov W-o-W Y-o-Y Rotterdam usd/t 411, 433,5-5,2% +17,3% Gibraltar usd/t 458, 481,5-4,9% +24,1% Singapore usd/t 476,5 54, -5,5% +27,1% Rotterdam usd/t 448, 479, -6,5% +17,% Gibraltar usd/t 484, 58, -4,7% +22,5% Singapore usd/t 55,4 53,5-4,7% +27,8% Rotterdam usd/t 623, 656, -5,% +16,6% Gibraltar usd/t 69, 7, -1,4% +17,9% Singapore usd/t 645,5 673,5-4,2% +19,1% Oil & Gas Prices Unit 16-nov 9-nov W-o-W Y-o-Y Crude Oil Brent usd/bbl 66,8 7,9-5,8% +6,5% Crude Oil WTI usd/bbl 56,5 6,7-7,% -,3% Crude Oil Dubai usd/bbl 66,8 69,7-4,3% +12,% Natural Gas Henry Hub usd/mmbtu 4,54 3,77 +2,4% +45,% Gasoline Nymex usd/gal 1,57 1,64-4,3% -9,8% ICE Gasoil usd/t 636, 687, -7,4% +13,% Naphtha Tokyo usd/t 55,1 553,6 -,6% -6,% Jet-Kerosene Asia usd/bbl 85,8 87,3-1,7% +16,% Coal Prices Unit 16-nov 9-nov W-o-W Y-o-Y Richards Bay usd/t 93,8 95,8-2,1% +1,3% Newcastle usd/t 12,5 15,9-3,2% +6,2% Coking Coal Australia usd/t 221, 22, +,5% +18,8% Iron Ore and Steel Prices Unit 16-nov 9-nov W-o-W Y-o-Y Iron Ore (Platts) usd/t 75,1 75,6 -,7% +19,6% Iron Ore rmb/t 599, 591, +1,4% +23,5% Rebar in China rmb/t n.a n.a. n.a. Plate in China rmb/t n.a n.a. n.a. HR Coil in China rmb/t n.a n.a. n.a. CR Sheet in China rmb/t n.a n.a. n.a. Agricultural Unit 16-nov 9-nov W-o-W Y-o-Y Wheat usd/t 53,5 54, -,1% +17,8% Corn usd/t 365, 369, -1,1% +6,3% Soybeans usd/t 888, 875,3 +1,5% -1,5% Palm Oil usd/t 471,2 487,5-3,3% -27,8% market report - week 46/218 Bunker Singapore (usd/t) IFO 38 IFO 18 MGO Brent and WTI Oil Prices (usd/bbl) Brent WTI Iron Ore and Coal Prices (usd/t) Steam Coal Iron Ore Steel Prices in China (rmb/t) /11/17 9/3/18 9/7/18 9/11/18 Rebar Plate Wheat and Corn Prices (usd/t) Corn Wheat 13

14 network head office: via pammatone, genoa (italy) phone: [5631-1] dry - capesize capes@bancosta.com research research@bancosta.com dry - panamax capespmx@bancosta.com ship finance financial@bancosta.com dry - handy handy@bancosta.com insurance insurance@bancostains.it dry - operation dryoper@bancosta.com p&i hull@bancostains.it tankers tanker@bancosta.com yachting yachts@bancosta.it containers containers@bancosta.com agency bcagy@bcagy.it s&p salepurchase@bancosta.com ship repair shipyard@bcagy.it offshore offshore@bancosta.com towage/salvage shipyard@bcagy.it bancosta uk bancosta monaco bancosta sa medioriental london monte carlo geneva dubai phone: phone: phone: phone: info@bancosta.co.uk info@bancosta-monaco.com info@bancosta.ch mena@bancosta.com bancosta oriente bancosta oriente bancosta oriente japan rep.office singapore hong kong beijing tokyo phone: phone: phone: phone: sap@bancosta.com.hk sap@bancosta.com.hk capespmx@bancosta.it bancosta.tokyo@spa.nifty.com web site: linkedin: linkedin.com/company/banchero-costa twitter: twitter.com/banchero_costa In addition to regular market reports, research recognize the need for bespoke reports & analysis, tailored to specific client needs. Reports can be produced on a wide range of shipping markets including dry bulk, tankers, gas & containers. In addition in-depth reports can be produced on specific commodity markets. To discuss individual requirements please contact: Phone: research@bancosta.com Legal notice: The information and data contained in this presentation is derived from a variety of sources, own and third party s, public and private, and is provided for information purposes only. Whilst has used reasonable efforts to include accurate and up-to-date information in this presentation, makes no warranties or representations as to the accuracy of any information contained herein or accuracy or reasonableness of conclusions drawn there from. Although some forward-looking statements are made in the report, cannot in any way guarantee their accuracy or reasonableness. assumes no liabilities or responsibility for any errors or omissions in the content of this report.