WEEKLY SHIPPING MARKET REPORT WEEK 38 (12 th Septembers to 18 th September 2015) Legal Disclaimer The information contained herein has been obtained by various sources. Although every effort has been made to ensure that this information is accurate, complete and up-to-date, Shiptrade Services S.A. does not accept any responsibility whatsoever for any loss or damage occasioned or claimed, upon reliance on the information, opinions and analysis contained in this report. Research compiled by: Shiptrade Services S.A. Market Research on behalf of the Sale & Purchase, Dry Cargo Chartering and Tanker Chartering Departments. For any questions, please contact: market-research@shiptrade.gr Shiptrade Services S.A. Tel +30 210 4181814 snp@shiptrade.gr 1st Floor, 110/112 Notara Street Fax +30 210 4181142 chartering@shiptrade.gr 185 35 Piraeus, Greece tankerchartering@shiptrade.gr
Top Stories: Shipping, Commodities & Global Economy Tankers: Clean USGC-Europe MR rates surpass UKC front-haul levels he traditionally back-haul Medium Range tanker route from US to Europe has turned into the main front-haul business in the Atlantic for the first time in more than 12 months as freight rates on the route spike due to increased diesel exports from the US to UK Continent and a shut gasoline arbitrage in the opposite direction. At the close Tuesday, the USGC-UK Continent and USGC-Mediterranean routes, basis 38,000 mt, Platts assessed at Worldscale 120, up 15 points from Monday on busy trading and a quickly depleting tonnage list in the US Gulf. At the same time, the traditionally front-haul UKC-US Atlantic Coast and UKC-USGC routes, basis 37,000 mt, were assessed at w100, down 7.5 points from Monday. As the spread between the opposite destination widens, so changes the perception of preferable or front-haul cargoes for shipowners in the Atlantic. Historically the ex-ukc route has been a front haul and the ex-usg route a back haul, so traditionally the latter is below the former, said a US-based shipping source. Previously we have seen this a few times when during the shale revolution in US the local refineries periodically enjoyed better margins than those in Europe. This advantage was later lost by them due to falling Brent prices. The last time the usually back-haul USGC-UKC route surpassed the front-haul UKC- USAC route was on August 5, 2014, when the front-haul route closed at w85 and the back haul stood at w90, according to Platts data. I think tonnage is lopsided in the Atlantic. There are more ships in the Continent, less activity. We did see a lot of UKC-USAC activity in August, but as we switch over to winter-grade gasoline that could be affecting activity now, said a US-based source. Over here, distillates are rocking and the lists are tight. subjects for a USGC-trans-Atlantic voyage loading September 19-21 at w125, while on Wednesday, BP was heard to have placed a vessel on subjects for a similar voyage at w130 and Chevron took another MR tanker at w132.5, according to sources. However, even though activity has intensified on the USGC-trans-Atlantic route in recent days, the ultra low sulfur diesel arbitrage is currently shut, shipping sources said. It s a bit of a lag. I think the barrels currently being moved were bought or sold into Europe a few weeks back, and now we re seeing them being quoted. From what I hear, the arb s shut now. But also, I think a lot of the barrels are going to the Mediterranean, a source said. Platts assessed CIF NWE Europe ULSD at $458.25/mt Tuesday and FOB USGC ULSD at $438.26/mt equivalent to a spread of $19.99/mt. This does not even cover USGC-NWE freight, which stood at w120 Tuesday or $26.32/mt. CIF Med ULSD cargoes were assessed at $464.25/mt, or $24.99/mt above FOB USGC cargoes. This also does not cover freight of $29.45/mt on the USGC-Mediterranean route for an MR tanker. With both arbitrages shut, it remains uncertain how long the shift in fronthaul MR business will stay on the US side. While I would expect that the [front-haul and back-haul] routes will reverse again sometime in the near term, if refinery rationalizations in Europe come to fruition something I would expect by H2 2016 due to competition from new Middle East and new Chinese capacity then the [current] structure could become more prevalent, a source said. Source: Platts THE BIG SWITCH The switch to winter grades of gasoline in the US, which by federal standards happens on September 16, is the main reason behind the lackluster trade from UKC to US, industry sources said. As the switch nears, traders are generally reluctant to sell summer gasoline as they are unlikely to get a premium for it in the winter season, when cheaper winter gasoline is dominant. This trend was clearly reflected in RBOB-EBOB swap, which shows the difference in price between US Atlantic Coast and European gasoline, trading negative at minus 5.10 cents/gal on September 15. At this level, European gasoline becomes uncompetitive with its US counterpart, rendering the arbitrage from UKC to US closed and therefore keeping the related MR tanker inquiry low. In the meantime, things have stayed busy on cargoes moving in the opposite direction. On Tuesday, Valero was heard to have placed the STI Garnet on subjects for a September 19-21 loading USGC voyage with a trans-atlantic discharge option at w120 and a Caribbean discharge option at $700,000, while Lukoil was heard to have placed the a Scorpio vessel on subjects for a similar voyage loading September 22-24, with a trans-atlantic discharge option at w120 and a Caribbean discharge option at $695,000. Following the market close on Tuesday, USGC-Europe freight rates have continued to climb, with more cargoes set to go to Europe. Chevron was heard to have placed the Concept on
Secondhand Sales Bulk Carriers Sale & Purchase Name Dwt YoB Yard SS Engine Gear Price (mill.) Buyer Pine Wave 88,279 2006 Heloise 30,688 2010 Emilie 29,800 2010 Lan Hai Fa Zhan 57,080 2010 Lan Hai Fen Jin 57,173 2010 Lan Hai Li Liang 56,800 2011 Lan Hai Dong Feng 57,190 2010 Lan Hai Lian He 56,760 2011 Lan Hai Qian Jin 56,795 2011 Lan Hai Yang Fan Lan Hai Ying Xin 57,155 2010 56,763 2011 Imabari, Shanhaiguan, Shanhaiguan, Xiamen, Xiamen, 03/2016 B&W - $ 12.0 Greek 03/2020 B&W 3 x 30 T $ 13.4 11/2015 B&W 3 x 30 T $ 13.4 12/2015 B&W 4 x 30 T 11/2015 B&W 4 x 30 T 17/2016 B&W 4 x 30 T Canadian (Canfornav) Bank Sale $ 67.0 Greek Secondhand Sales - Tankers Name Dwt YoB Yard SS Engine Hull Price (mill.) Buyer Power D 319,012 2003 Energy R 319,012 2003 Maersk Elizabeth 37,026 2001 Hyundai Samho, Korea Hyundai Samho, Korea 3 Maj, Croatia 01/ B&W DH $ 45.0 02/ B&W DH $ 45.0 08/2016 Sulzer DH $ 13.2 Nigerian Secondhand Sales Containers Name Teu YoB Yard SS Engine Gear Price (mill.) Buyer Linton 4,400 2012 Coral Bay 2,490 2005 Crystal Bay 2,490 2005 Hyundai Samho, Korea HDW, Germany HDW, Germany 06/2017 Wartsila - $ 25.0 - Sulzer - $ 15.0 11/2015 Sulzer - $ 15.0
Indicative Values - Bulk Carriers Size Prompt Resale 5 years 10 years 15 years Capesize 48 31 20 12 Panamax - Kamsarmax 28 16 11 7 Supramax - Ultramax 26.5 15.5 10 6 Handysize 21 13 9 6 Indicative Values - Tankers Size Prompt Resale 5 years 10 years 15 years VLCC 101 84 58 41 Suezmax 73 60 42 22 Aframax 56 46 33 18 Panamax 43 32 23 11 MR 37 28 20 13.5
Newbuilding & Demolition Newbuilding Orders - Bulkers No Type Dwt Yard Delivery Owner Price (mill.) Comments 2 Supramax 58,000 Tsuneishi Cebu, Philippines 2017/18 3 Supramax 56,000 Oshima, 2017/18 3 Handysize 29,400 Uljanik, Croatia Newbuilding Orders Tankers (NYK) Canadian (Algoma Central) Semi Box Self Unloading Lakers No Type Dwt Yard Delivery Owner Price (mill.) Comments 8 Vlcc 298,000 Hyundai Mipo, Korea 2 Mr 50,000 Spp, Korea 1 Gas 1 Gas 1 Gas 1 Gas 1 + 1 Gas 2 Gas 180,000 177,000 180,000 177,000 84,000 78,700 Newbuilding Orders - Containers Mitsubishi, Kawasaki, Mitsubishi, Kawasaki, Hyundai Hi, Korea Hyundai Hi, Korea 2017-2016- 2017 2017 Korea (Sinokor) $ 760.0 Australian (ASP) $ 45.0 (Mitsui OSK Lines) (Trans Pacific Shipping) Korean (Kss Line) Norwegian (Solvang) $ 77.0 For NZ Cabotage, Trading, Asphalt/Bitumen LNG Against Long Term T/C To Chubu Electric LPG Against 7 Yr T/C To Gvxis Corp LPG, Against 10Yr T/C No Type Teu Yard Delivery Owner Price (mill.) Comments 3 Malaccamax 20,000 SWS, $ 139.5 2 Malaccamax 20,000 Dalian, Chinese $ 139.5 4 Malaccamax 19,150 Nantong, (CCHC) $ 135.3 2 Malaccamax 19,150 Dalian, $ 135.3
Demolition Sales Vessel Type Built Ldt Dwt Price ($) Country Comments Hanjin Haypoint BC 1990 18,908 151,023 335 Bangladesh Maria Star BC 1995 9,554 41,499 330 India Incl. 250t Bunkers Kollmar Container 1993 8,039 21,540 370 India Incl. 600t Bunkers Indicative Demolition Prices Country Tanker Prices Bulker Prices India 330 300 Bangladesh 300 270 Pakistan 320 290 140 120 Turkey 180 170
Baltic Indices (Friday Closing Values) 1 year T/C rates ($/day) Dry Bulk Chartering Index Week 38 Week 37 Change (%) BDI 960 818 17,36 BCI 1995 1198 66,53 BPI 753 735 2,45 BSI 762 810 5,93 BHSI 426 460 7,39 Type Size (k dwt) Week 38 Week 37 Change (%) Capesize 160-175 14658 8614 70,16 Panamax 72-76 6035 5878 2,67 Supramax 52-57 7972 8473 5,91 Handysize 30-35 6150 6679 7,92 Average spot rates ($/day) Type Size (k dwt) Route Week 38 Week 37 Change (%) Capesize 160-175 Panamax 72-76 Supramax 52-57 Handysize 30-35 F. East - ATL 5114 1473 247,18 Cont/Med - F. East 26700 16700 59,88 F. East RV 13591 9323 45,78 TransAtlantic RV 13325 6230 113,88 F. East - ATL 840 729 15,23 ATL - F. East 11116 11132 0,14 Pacific RV 6432 5651 13,82 TransAtlantic RV 5750 6000 4,17 F. East - ATL 4350 4750 8,42 ATL - F. East 12808 13200 2,97 Pacific RV 5808 6100 4,79 TransAtlantic RV 9320 10000 6,80 Far East - ATL 3515 3821 8,01 ATL - F. East 10052 10938 8,10 Pacific RV 7439 8078 7,91 TransAtlantic RV 5938 6441 7,81
Exchange Rates Key Indicators & Stock Markets Currency Week 38 Week 37 Change (%) EUR / USD 1,1456 1,1276 1,60 USD / JPY 119,16 120,59 1,19 USD / KRW 1,162 1,184 1,86 USD / NOK 8,051 8,214 1,98 Bunker Prices Port IFO 380 IFO 180 MGO Piraeus 240 265 475 Fujairah 245 260 520 Singapore 236 248 447 Rotterdam 221 248 438 Houston 225 273 477 Commodities Commodity Week 38 Week 37 Change (%) Brent Crude (BZ) 49,27 48,01 2,62 Natural Gas (NG) 2,65 2,67 0,75 Gold (GC) 1,132 1,106 2,35 Copper 244,05 243,50 0,23 Wheat (W) 485,25 476,25 1,89
Shipping Stock Prices - Dry Bulk Key Indicators & Stock Markets Company Stock Exchange Week 38 Week 37 Change (%) Diana Shipping Inc (DSX) NASDAQ 6,51 6,26 3,99 Dryships Inc (DRYS) NASDAQ 0,239 0,255 6,27 Euroseas Ltd (ESEA) NASDAQ 4,44 4,45 0,22 Eagle Bulk Shipping Inc (EGLE) NASDAQ 7,68 6,66 15,32 Freeseas Inc (FREESE) NASDAQ 0,273 0,255 7,06 Navios Maritime (NM) NYSE 2,88 2,73 5,49 Navios Maritime PTN (NMM) NYSE 8,36 8,66 3,46 Paragon Shipping Inc (PRGN) NASDAQ 0,37 0,470 21,28 Star Bulk Carriers Corp (SBLK) NASDAQ 2,49 2,36 5,51 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 0,781 0,772 1,17 Safe Bulkers Inc (SB) NYSE 3,37 3,14 7,32 Golden Ocean (GOGL) Oslo Bors 3,12 2,95 5,76 Shipping Stock Prices - Wet Company Stock Exchange Week 38 Week 37 Change (%) Capital Product Partners LP (CPLP) NASDAQ 7,36 6,83 7,76 TOP Ships Inc (TOPS) NASDAQ 1,04 1,05 0,95 Tsakos Energy Navigation (TNP) NYSE 8,67 7,81 11,01 Shipping Stock Prices - Other Company Stock Exchange Week 38 Week 37 Change (%) Aegean Maritime Petrol (ANW) NYSE 6,94 7,38 5,96 Danaos Corporation (DAC) NYSE 6,03 6,02 0,17 StealthGas Inc (GASS) NASDAQ 4,49 4,58 1,97 Rio Tinto (RIO) NYSE 36,76 36,38 1,04 Vale (VALE) NYSE 5,15 5,19 0,77 ADM Archer Daniels Midland (ADM) NYSE 44,25 43,06 2,76 BHP Billiton (BHP) NYSE 35,38 33,94 4,24