WEEKLY SHIPPING MARKET REPORT WEEK 36 (30 th August to 5 th September 2014) 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 www.shiptrade.gr tankerchartering@shiptrade.gr
Top Stories: Shipping, Commodities & Global Economy China now gets more oil from the Middle East than the US does China is quickly overtaking the United States as the world s biggest importer of oil. Not only that, but China now buys more crude oil from the Middle East than the US does a shift that some experts think could have big geopolitical implications in the years ahead. Roughly half of China s imported oil now comes from the Persian Gulf, whereas America s reliance on Middle Eastern crude has been steadily shrinking in recent years. Here s a good map from Bruce Jones, David Steven, and Emily O Brien of the Brookings Institution laying out China s situation: China currently imports around 5.6 million barrels of oil per day on net, with about half of those imports coming from the Persian Gulf region. As the map shows, Saudi Arabia, Iran, Oman, and Iraq dominate the list (as do Russia and Angola) and most of the oil flows through the Strait of Malacca, a vulnerable chokepoint. The United States, meanwhile, now imports around 5 million barrels per day, and its list is quite different. Only 41 percent of US oil imports now come from the Persian Gulf (mostly from Saudi Arabia). By contrast, more than half of US oil imports come from Canada and Mexico: Where US oil imports come from: Why does any of this matter? On one very basic level, where people get their oil isn t overly important. Oil prices tend to rise and fall together all over the world, no matter the source, and an oil spike that crushed China s economy would hurt America s economy too. But as the Brookings paper notes, China is becoming much more directly dependent on Middle Eastern oil than the United States is, and that fact alone could have big implications for geopolitics for the region. The United States has long been exposed to the geopolitical risks associated with energy production and transit, but now, increasingly, so too are the Asian powers, the authors write. Chinese and Indian policymakers are scrambling to understand these risks and to work out how to manage them. They also note that the impact on the psychology of American policymakers could be profound: American strategists, meanwhile, may be tempted to fulfill Chinese fears and use energy as a source of pressure on its most significant rival. Others will see an opportunity to disengage from the Middle East during a period of fiscal austerity, leaving Beijing and Delhi to take responsibility for the troubled region. (The Brookings paper argues against both these approaches see the full piece for more.) Why China has surpassed the US in oil imports It s worth noting that China s position as the world s top oil importer is relatively new. For many decades, the United States was the undisputed champion of oil importing. This was basically the one fact that most people knew about US energy policy that the country was way more dependent on foreign oil than anyone else. But that s now changing. The Energy Information Administration estimates that China surpassed the US in net oil imports sometime around the fall of 2013: Part of this is due to China s rapid growth, as more and more people are driving. Part of it is due to the fact that China has been slow to develop its own domestic oil resources. So the country has to seek out petroleum abroad. But another big factor has been changes in the United States. Thanks to the fracking boom in places like Texas and North Dakota, the US is producing more and more of its own crude oil. At the same time, improvements in fuel efficiency and a slowdown in rates of driving means that the United States is reducing its oil consumption. Add those two together, and imports are dropping. Further reading: Here s an excellent Wall Street Journal story from last year predicting that China would soon overtake the US as a buyer of Middle Eastern oil. Source: VOX Shiptrade Services S.A. Weekly Market Report 2
Secondhand Sales Bulk Carriers Sale & Purchase Name Dwt YoB Yard SS Engine Gears Price (mill.) Buyer Jindal Varad 75.460 1994 B&W, Den 10/2014 Sulzer - $5.8 UAE based Bao Bright 56.582 2011 Hantong, Chn 05/2016 B&W 4 x 36 T $19.6 Greek Alam Aman II 47.301 2002 Minami Nippon, Jpn 06/2016 B&W 4 x 30 T $12.5 Lebanese Chc No.3 46.635 1995 Mitsui, Jpn 02/2015 B&W 4 x 30 T $9.2 S. Korean Theomitor 28.510 1994 Kanda, Jpn 07/2018 Mitsubishi 4 x 30 T $6.8 Undisclosed Forte 23.573 2001 Shin Kurushima, Jpn 05/2016 Mitsubishi 4 x 30 T $7.8 Greek (Team Fuel) Birch 3 20.427 1999 Wuhu, Chn 03/2019 B&W 3 x 30 T $5.3 European Swegard 4.956 2001 Damen Hoogeza, Neth 01/2015 Mak - $2.4 Undisclosed Secondhand Sales - Tankers Name Dwt YoB Yard SS Engine Hull Price (mill.) Buyer Pluto Glory 298.911 2001 Daewoo, Kr 02/2016 Sulzer DH $25.0 Cygnus Voyager Sirius Voyager Altair Voyager 156.105 1993 IHI, Jpn 03/2018 Sulzer DH 156.681 1994 135.829 1993 Ivi Ishibras, Bra Ivi Ishibras,Bra 10/2014 Sulzer DH 10/2018 Sulzer DH Beech 4 109.693 1999 Dalian, Chn 04/2018 Sulzer DH $23.5 Beech 3 109.354 2000 Dalian, Chn 09/2017 Sulzer DH ( enbloc) SC Sara 105.344 2001 Holy Victoria 74.994 2008 4 x SSP resales 50.300 2014/ 2015 Sumitomo, Jpn Minami Nippon, Jpn n/a Greek (NGM Energy) USA Buyers (Chevron) S. Korean (Sinokor) 10/2016 Sulzer DH $17.2 Indonesian 10/2018 B&W DH $29.0 SPP, Kr - - DH $38.0 (each enbloc including TC) Greek (Prime Marine) S. Korean (Sinokor) Pearl Naomi 11.652 2007 Niigata, Jpn 10/2017 Niigata DH $12.0 Undisclosed Alfateam 6.753 2000 Dearsan,Tur 10/2015 B&W DH n/a Undisclosed Shiptrade Services S.A. Weekly Market Report 3
Secondhand Sales - Containers Name Teu YoB Yard SS Engine Gear Price (mill.) Buyer Santa Felicita 2.169 1999 Flender, Ger 01/2017 B&W Westwood Cascade As Poseidon 1.835 1999 Vega Turmalin 1.116 1999 2.169 1999 Flender, Ger 02/2016 B&W Gdanska Stocznia, Pol Tianjin Xingang, Chn 2 x 35 T 2 x 45 T 2 x 35 T 2 x 45 T $7.7 (each enbloc) Norwegian - B&W 3 x 45 T $5.0 Greek 06/2019 Sulzer 2 x 45 T $2.9 UAE based Indicative Values - Bulk Carriers Size Prompt Resale 5 years 10 years 15 years Capesize 58 46 31 18 Panamax - Kamsarmax 30 24 18 12 Supramax - Ultramax 29 23 17 12 Handysize 23 17 12 9 Indicative Values - Tankers Size Prompt Resale 5 years 10 years 15 years VLCC 99 71 46 24 Suezmax 65 48 32 17 Aframax 50 36 23 12 Panamax 41 32 22 11 MR 35 25 16 10 Shiptrade Services S.A. Weekly Market Report 4
Newbuilding Orders - Bulkers Newbuilding & Demolition No Type Dwt Yard Delivery Owner Price (mill.) Comments 1 Ultramax 60.000 Onomichi, Jpn 2018 Inui Steamship n/a 1 Ultramax 60.000 Onomichi, Jpn 2018 Triton Navigation n/a 2 Supramax 58.000 Tsuneishi Zhousan, Chn 2016 Pacific Basin n/a 5 Handysize 39.000 Zhejiang Zeghou, Chn 2015/16 Interlink $24.0 +5 option Newbuilding Orders - Tankers No Type Dwt Yard Delivery Owner Price (mill.) Comments 3 LNG 170.000 cbm HHI, Kr 2017 Hyproc $200.0 2 Suezmax 160.000 Sungdong, Kr 2016/17 Breakwater $65.0 +2 option 4 Suezmax 156.000 DSME, Kr 2016/17 Maran Gas $66.0 +2 option 2 VLOC 250.000 Henghou Guangzhou 2015/16 Industrial Longxue, Chn Investments $57.0 1 MR 29.500 Onomichi, Jpn 2018 Samos Steamship n/a Demolition Sales Vessel Type Built Ldt Dwt Price ($) Country Comments Olympic Flair Takner 1991 22.932 149.817 523 Pakistan Bao Zhong 218 BC 1988 9.645 68.600 300 China Rio Lerma BC 1989 9.074 70.329 514 India Marcajama Container 1996 6.884 18.323 418 n/a As is Malta Fesco Uelen RORO 1990 3.264 3.023 490 Bangladesh Majestic Reefer 1980 2.936 4.337 452 Bangladesh Indicative Demolition Prices Country Tanker Prices Bulker Prices India 480 460 Bangladesh 475 450 Pakistan 485 455 China 320 310 Turkey 345 335 Shiptrade Services S.A. Weekly Market Report 5
Baltic Indices (Friday Closing Values) 1 year T/C rates ($/day) Dry Bulk Chartering Index Week 36 Week 35 Change (%) BDI 1155 1147 0.69 BCI 2483 2627 5.48 BPI 931 871 6.89 BSI 997 970 2.78 BHSI 469 442 6.11 Type Size (k dwt) Week 36 Week 35 Change (%) Capesize 160-175 16116 16877 4.5 Panamax 72-76 7431 6941 7.06 Supramax 52-57 10425 10140 2.8 Handysize 30-35 6916 6521 6.06 Average spot rates ($/day) Type Size (k dwt) Route Week 36 Week 35 Change (%) Capesize 160-175 Panamax 72-76 Supramax 52-57 Handysize 30-35 F. East - ATL 3723 4023 7.4 Cont/Med - F. East 34100 34770 1.9 F. East RV 15682 17191 8.7 TransAtlantic RV 10960 11525 4.9 F. East - ATL 231 124 86.30 ATL - F. East 15819 15277 3.55 Pacific RV 6559 5272 24.41 TransAtlantic RV 7113 7092 0.29 F. East - ATL 7785 7660 1.6 ATL - F. East 13621 13564 0.4 Pacific RV 9933 9414 5.5 TransAtlantic RV 9641 9165 5.1 Far East - ATL 3922 3700 6.00 ATL - F. East 12351 11674 5.80 Pacific RV 7629 7191 6.10 TransAtlantic RV 6452 6076 6.20 Shiptrade Services S.A. Weekly Market Report 6
Baltic Indices (Friday Closing Values) 1 year T/C rates ($/day) Tanker Chartering Index Week 36 Week 35 Change (%) BCTI 547 547 0,00 BDTI 722 761 5,12 Type Size (k dwt) Week 36 Week 35 Change (%) VLCC 300 26000 26000 0,00 Suezmax 150 19500 19500 0,00 Aframax 105 16000 16000 0,00 Panamax 70 14750 14750 0,00 MR 47 14000 14000 0,00 Average spot rates ($/day) - Crude Type Size (k dwt) Route Week 36 Week 35 Change (%) VLCC Suezmax Aframax Average spot rates ($/day) - Products 280 AG - USG 533 4411 87,92 260 WAFR USG 35772 39133 8,59 260 AG - East / Japan 25069 37895 33,85 135 B. Sea - Med 16373 16516 0,87 130 WAF - USAC 13639 13780 1,02 150 CBS - USG 17612 24167 27,12 80 N. Sea - UKC 29356 48733 39,76 80 MED - MED 21984 25103 12,42 70 Caribs - USG 9807 6422 52,71 Type Size (k dwt) Route Week 36 Week 35 Change (%) Clean Dirty 75 AG - Japan 27329 29352 6,89 55 AG - Japan 17010 20540 17,19 38 Caribs - USAC 4175 4870 14,27 37 Cont - TA 2485 1460 70,21 55 Cont - TA 11854 13626 13,00 50 Caribs - USAC 11105 11241 1,21 Shiptrade Services S.A. Weekly Market Report 7
Exchange Rates Bunker Prices Commodities Key Indicators & Stock Markets Currency Week 36 Week 35 Change (%) EUR / USD 1,2959 1,3143 1,40 USD / JPY 104,89 104,04 0,82 USD / KRW 1024 1013 1,09 USD / NOK 6,28 6,19 1,45 Port IFO 380 IFO 180 MGO Piraeus 583 610 888 Fujairah 605 632 975 Singapore 585 595 862 Rotterdam 561 582 835 Houston 580 648 955 Commodity Week 36 Week 35 Change (%) Brent Crude (BZ) 101,23 102,80 1,53 Natural Gas (NG) 3,81 4,04 5,59 Gold (GC) 1266 1287 1,63 Copper 315,70 316,85 0,36 Wheat (W) 534,25 562,00 4,94 Shiptrade Services S.A. Weekly Market Report 8
Shipping Stock Prices - Dry Bulk Key Indicators & Stock Markets Company Stock Exchange Week 36 Week 35 Change (%) Baltic Trading Ltd (BALT) NYSE 5,70 5,82 2,06 Diana Shipping Inc (DSX) NASDAQ 10,31 10,55 2,27 Dryships Inc (DRYS) NASDAQ 3,22 3,30 2,42 Euroseas Ltd (ESEA) NASDAQ 1,18 1,14 3,51 Eagle Bulk Shipping Inc (EGLE) NASDAQ 1,14 1,11 2,70 Freeseas Inc (FREESE) NASDAQ 0,47 0,58 18,97 Navios Maritime (NM) NYSE 9,09 9,38 3,09 Navios Maritime PTN (NMM) NYSE 19,95 19,38 2,94 Paragon Shipping Inc (PRGN) NASDAQ 5,16 5,10 1,18 Star Bulk Carriers Corp (SBLK) NASDAQ 14,64 13,73 6,63 Seanergy Maritime Holdings Corp (SHIP) NASDAQ 1,60 1,46 9,59 Safe Bulkers Inc (SB) NYSE 8,32 8,63 3,59 Golden Ocean (GOGL) Oslo Bors (NOK) 9,89 10,21 3,13 Shipping Stock Prices - Wet Company Stock Exchange Week 36 Week35 Change (%) Capital Product Partners LP (CPLP) NASDAQ 10,23 10,93 6,40 TOP Ships Inc (TOPS) NASDAQ 1,98 2,05 3,41 Tsakos Energy Navigation (TNP) NYSE 7,31 7,63 4,19 Shipping Stock Prices - Other Company Stock Exchange Week 36 Week 35 Change (%) Aegean Maritime Petrol (ANW) NYSE 10,02 10,00 0,20 Danaos Corporation (DAC) NYSE 5,73 5,74 0,17 StealthGas Inc (GASS) NASDAQ 9,30 9,77 4,81 Rio Tinto (RIO) NYSE 52,63 53,74 2,07 Vale (VALE) NYSE 12,50 13,08 4,43 ADM Archer Daniels Midland (ADM) NYSE 49,99 49,90 0,18 BHP Billiton (BHP) NYSE 66,54 68,53 2,90 Shiptrade Services S.A. Weekly Market Report 9