LY MARKET REPORT August 13th, 2010 / Week 32 Despite being right in the middle of the summer holidays, this week was marked by a huge increase in the market. The BDI index rose over 400 points nearly 22% to finish just below the 2,500 point mark. The main reason was the phenomenal increase in the BCI which rose just over 1,000 points or 46%!!! Average capesize rates are just below US $30,000 p/day, with iron ore activity continuing to drive the market. Other vessel classes have also benefited from a firmer capesize environment. The BPI rose almost 11% whilst the BSI and BHI rose 5.78 and 4.11% respectively. So it is encouraging news to see rates picking up in the usually "dead" period of August. We expect the dry bulk market to remain firmer through September as steel prices and spot iron ore prices are on the rise in China. In addition, the Russian grain export ban will almost certainly boost freight rate activity with buyers having to source supplies from other origins including the United States, thus increasing the tonne/miles keeping the vessels employed for longer periods. Financial news coming out from China show that their exports between July 2009 and July 2010 stood at USD 145.50 billion, a growth of around 36%. In addition, both India and China have adopted new energy producing plants based on thermal coal and the new demand for those new energy businesses will change the world coal trade, which is expected to reach over 1 billion tonnes for 2010 as opposed to 0.85 billion tonnes in 2009 (an increase of nearly 18%). The coal trade is expected to partly counter some of the lost momentum that the iron/ore business has not produced over the past 2 months. This is good news for the panamax and supramax-handymax market segments. The good news have not yet filtered into the S&P market which still remains quiet with few deals reported however, optimism is in the air and we expect that the mood will soon change assuming that the 2nd half of August provides some stability from which to climb into September. The few deals that have been concluded prove that prices have not crashed as many suggested over the last 2-3 months. There is no better proof than the sale of the M/V NEW ORION (,191 Dwt / Blt 2003 Korea) which has been committed for shade excess US $29 mill which is considered as firm. Activity in the newbuilding for dry bulk carriers is continuing albeit at a smaller pace however, prices remain firm. WeberSeas, Weekly Market Report Page 1 of 10
On the demolition front, July was perhaps the slowest month of the year. The absence of Bangladesh is continuing and with the never ending flooding problems Pakistan is also slowing down. Prices for tankers however, still remain relatively strong. All eyes will be on Bangladesh towards the end of August but don't keep your hopes up - most believe that nothing will happen until October and a few are mentioning that may be activity there will not return until the end of the year. TANKERS HIGH LAND 41,450/92 - IMABARI MARUGAME - B&W 9,701 - COILED - COATED - IGS - SBT - COW - DH - SS/DD 09/2012 Sold for $4 mill. to Indonesian buyers. BULKERS BULK LEHER 149,532/92 - CHINA SHIPBUILDING KAO - B&W 16,901-9HH - SS 09/2012, DD 10/2010 Sold for $19.60 mill. to Chinese buyers, including t/c at 18,500 pd until Feb 2011. SEAFLOWER 69,128/95 - KOYO MIHARA - SULZER 15,841-7HH - SS/DD 01/2010 Sold for $24 mill. to Greek buyers (Athenian Ship Management). NEW ORION,191/03 - HYUNDAI MIPO - B&W 11,109-5HH - C 4X30T, SS 03/2013, DD 03/2011 Sold for excess $29 mill. to Indian buyers. MINING STAR 18,721/02 - HAKATA HAKATA - B&W 7,043-4HH - C 3X36T Sold for $14.25 mill. to Vietnamese buyers. CONTAINERS DARTMOOR 9,950/98 - CELIK TEKNE - MAN-B&W 11,699-4 HO/6 HA - C 3X40T - 951 TEU - CELLULAR Sold for $8.4 mill. to Italian buyers (D Amico). WeberSeas, Weekly Market Report Page 2 of 10
FRESH FOR SALE TANKERS MORNING GLORY III 98,743/96 - ONOMICHI - B&W 15,301 - COILED - COATED - IGS - SBT - COW - DH - SS//DD 03/2011 Inspectable at Singapore in beg/mid September. BULKERS DONG-A RHEA 149,505/93 - CHINA SHIPBUILDING KAO - B&W 16,901-9HH - SS 12/2010, DD 10/2010 Inspectable at Samcheon-Po, Korea with ETA 20 th August, ETD 23-24 th August. RUBIN CAMELLIA 71,332/95 - NAMURA IMARI - SULZER 10,901-7HH - SS 07/2015, DD 05/2013 ETA Vanino, Russia 13 th August (the port is out of service now due to bad weather), ETD 18 th August. ETA Yokkaichi 22 nd August (berth is expected to be "Kasumi No.22"), ETD 24-25 th August (agw/wp/uce). RELOAD 65,125/84 - NAMURA IMARI - B&W 12,141-7HH - SS 11/2012, DD 12/2010 ETA Chaozhou, China 18 th August, ETS 21 st -22 nd August. NATALIE 64,911/81 - MITSUBISHI KOBE - SULZER 13,786-7HH Enroute Jingtang wher ETA 12 th August, to discharge iron ore. STEFANIA 64,848/81 - HITACHI ZOSEN - SULZER 14,401-7HH - SS/DD 01/2011 Vessel will load iron ore Murmansk for China discharge. FAIR SKY 48,369/00 - SANOYAS HISHINO MIZ MA - SULZER 9,800-5HH - C 4X25T - SS/DD 01/2011 ETA Chiba 19 th August, ETD 23 rd August. NEW SAILING STAR 32,000/10 - ZHEJIANG ZHENXING - MAN-B&W 8,810-5HH - C 4X25T PINE HURST 31,784/99 - HAKODATE DOCK - MIT 9,599-5HH - C 4X30.5T, SS 09/2014, DD10/2012 ETA Tobata 16 th August, ETD 20th August. QIN FENG 180 21,503/09 - LINHAI HUIPU SHIPB - PIELSTICK 5,982-4HH - C 3X25T MPP/TWEENDECKERS ITAL VERDE 14,265/84 - NOBISKRUG WERFT - MAK 10,877-3HH - C 2X40T Vessel currently in lay up in Taranto however sale can be basis on strictly as is / where is Izmir, Turkey or Port Said, Egypt. WeberSeas, Weekly Market Report Page 3 of 10
DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2010 THIS DATE 2009 2009 TOTAL 2008 TOTAL ULCC/VLCC 12 1 10 6 SUEZMAX 5 4 5 1 AFRAMAX 7 6 12 7 PANAMAX TANKER 7 4 8 9 CAPE/COMBO (100,000 dwt +) 9 5 5 8 PANAMAX/KAMSARMAX BULKER 2 17 21 19 LOCATION TANKERS BULK CARRIERS CHINA 370 350 INDIA 445 410 BANGLADESH N/A N/A PAKISTAN 455 410 DEMOLITION: INDIA M/T MADURA M/T PICO EL AGUILA 15,114/85-4,179 LDT - USD 590/LDT (with 125T of solid St. Steel on board) 12,467/82-4,464 LDT - PNC- as is Curacao (with 287T of solid St. Steel on board) WeberSeas, Weekly Market Report Page 4 of 10
TYPE OF SHIP NEWBUILDING STATISTICS 2010 2011 2012 2013 2014 * TOTAL ORDERBOOK ULCC/VLCC 32 72 49 22 9 184 SUEZMAX 29 56 49 10 144 AFRAMAX 48 75 40 11 3 177 PANAMAX 20 40 11 11 2 84 MR 84 123 78 14 299 0-35,000 DWT 126 96 26 4 2 CAPESIZE/ MINI CAPE / VLOC 80-100,000 DWT * Includes ALL vessels on order 134 312 130 45 5 626 105 230 190 35 8 568 PANAMAX 51 90 55 12 208 SUPRAMAX / HANDYMAX 239 350 194 39 822 HANDYSIZE 253 318 148 31 6 756 NEWBUILDING CONTRACTS No Size Type Yard Delivery Price (mill) Owners Comments 1 180,000 dwt Bulker 1 95,000 dwt Bulker 1 95,000 dwt Bulker 1 95,000 dwt Bulker 8 82,000 dwt Bulker Eastern Eastern Eastern Eastern Hantong Dec 2011 $55 mill Blue Planet Jan 2012 $37-38 mill Blue Planet Feb 2012 $37-38 mill Z&G Halkoussis Mar 2012 May 2012 onwards $37-38 mill $272 mill Third Millenium Shipping Jimei Hua Shipping 1 80,000 dwt Bulker Jinhai HI End 2011 $34.5 mill PL Shipping 4 40,000 dwt Bulker Taizhou Sanfu 2012/13 xs$25 mill German owners $34 mill each +1 option dely early 2012 2 157,000 dwt Tanker 2 157,000 dwt Tanker Rongsheng Rongsheng 2013 $62-64 mill Golden Energy 2013 $62-64 mill Aktif Denizcilik WeberSeas, Weekly Market Report Page 5 of 10
BALTIC DRY EX RATES THIS LAST % Baltic Dry Index 2468 2030 438 21.58% Baltic Capesize 3210 2194 1016 46.31% Baltic Panamax 2864 2581 283 10.96% Baltic Supramax 1831 1731 100 5.78% Baltic Handysize 1014 974 40 4.11% 14000 12000 10000 8000 6000 4000 2000 0 4-Jan-05 4-Apr-05 4-Jul-05 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 BDI 4-Apr-08 4-Jul-08 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 25000 20000 15000 10000 5000 0 4-Jan-05 4-Apr-05 4-Jul-05 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 4-Apr-08 4-Jul-08 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 BCI 14000 12000 10000 8000 6000 4000 2000 0 04-Jan-05 04-Apr-05 04-Jul-05 04-Oct-05 04-Jan-06 04-Apr-06 04-Jul-06 04-Oct-06 04-Jan-07 04-Apr-07 04-Jul-07 04-Oct-07 04-Jan-08 04-Apr-08 04-Jul-08 04-Oct-08 04-Jan-09 04-Apr-09 04-Jul-09 04-Oct-09 04-Jan-10 04-Apr-10 04-Jul-10 BPI WeberSeas, Weekly Market Report Page 6 of 10
BALTIC WET EX RATES THIS LAST % Baltic Clean Tanker 709 760-51 -6.71% Baltic Dirty Tanker 816 779 37 4.75% 2,500 2,000 1,500 1,000 500 0 2,500 2,000 1,500 1,000 500 4-Jan-05 8-Mar-05 13-May-05 0 4-Jan-05 8-Mar-05 13-May-05 18-Jul-05 20-Sep-05 22-Nov-05 1-Feb-06 5-Apr-06 13-Jun-06 15-Aug-06 18-Oct-06 20-Dec-06 1-Mar-07 3-May-07 5-Jul-07 7-Sep-07 9-Nov-07 18-Jul-05 20-Sep-05 22-Nov-05 1-Feb-06 5-Apr-06 13-Jun-06 15-Aug-06 18-Oct-06 20-Dec-06 1-Mar-07 3-May-07 5-Jul-07 7-Sep-07 9-Nov-07 21/01/2008 27-Mar-08 BCTI 21/01/2008 27-Mar-08 BDTI 2-Jun-08 11-Aug-08 14-Oct-08 23-Dec-08 4-Mar-09 11-May-09 14-Jul-09 16-Sep-09 18-Nov-09 29-Jan-10 6-Apr-10 10-Jun-10 12-Aug-10 2-Jun-08 11-Aug-08 14-Oct-08 23-Dec-08 4-Mar-09 11-May-09 14-Jul-09 16-Sep-09 18-Nov-09 29-Jan-10 6-Apr-10 10-Jun-10 12-Aug-10 WeberSeas, Weekly Market Report Page 7 of 10
MAJOR CAPITAL MARKETS INDEX THIS * LAST * % S HIGH S LOW DOW JONES 10,378.83 10,680.43-301.60-2.82% 11,309.00 9,078.28 NASDAQ 2,190.27 2,293.06-102.79-4.48% 2,535.28 1,929.64 AIM 687.40 698.60-11.20-1.60% 736.10 558.30 NIKKEI 9,212.59 9,653.92-441.33-4.57% 11,408.20 9,076.41 NAME SYMBOL PUBLIC COMPANIES DRY-CARGO SECTOR THIS * LAST * % HIGH LOW DIANA DSX 12.48 13.16-0.68-5.17% 18.24 10.75 DRYSHIPS DRYS 4.48 4.83-0.35-7.25% 7.99 3.28 EAGLE BULK EGLE 4.72 4.97-0.25-5.03% 6.75 3.91 EXCEL MARITIME EXM 5.35 6.00-0.65-10.83% 8.40 4.59 GENCO GNK 15.82 17.20-1.38-8.02% 29.20 14.20 NAVIOS HOLDINGS NM 5.34 5.72-0.38-6.64% 7.55 4.33 TBS INTERNATIONAL TBSI 6.20 6.46-0.26-4.02% 9.97 5.21 NAME SYMBOL TANKER/ENERGY SECTOR THIS * LAST * % HIGH LOW CAPITAL PRODUCT PARTNERS CPLP 8.38 9.02-0.64-7.10% 10.49 5.31 GENERAL MARITIME GMR 5.17 5.54-0.37-6.68% 8.95 5.15 OMEGA NAVIGATION ONAV 1.78 1.82-0.04-2.20% 4.50 1.50 STEALTHGAS GASS 4.84 4.70 0.14 2.98% 7.64 3.93 TEN TNP 13.10 14.87-1.77-11.90% 18.69 12.65 NAME SYMBOL CONTAINER SECTOR THIS * LAST * % HIGH LOW DANAOS DAC 3.93 4.34-0.41-9.45% 6.99 3.25 * Prices reflect Thursday s closing values. Prices in US$ WeberSeas, Weekly Market Report Page 8 of 10
RATES OF EX THIS LAST % Euro / $ 1.2810 1.3172-0.0362-2.75% Sterling / $ 1.5594 1.5881-0.0287-1.81% $ / Yen 85.736 85.905-0.169-0.20% $ / Nok 6.1970 5.9795 0.2175 3.64% $ / Won 1,183.90 1,161.20 22.700 1.95% Brent Crude 75.75 81.75-6.00-7.34% LIBOR (3-month) 0.40% 0.44 % -0.04-9.09% ESTIMATED VALUES* TANKERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS VLCC $110.0m $86.0m $62.0m (DH) $16.0m Suezmax $70.0m $60.0m $43.0m (DH) $12.5m Aframax $58.0m $48.0m $37.0m (DH) $9.0m Panamax $45.0m $35.0m $20.0m (DH) $7.0m Product $39.0m $28.0m $18.0m (DH) $4.5m BULK CARRIERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS Capesize $70.0m $58.0m $46.0m $20.0m Panamax/Kamsarmax $45.0m $39.0m $34.0m $17.5m Supramax/Handymax $35.0m $32.0m $25.0m $13.5m * The above values are based and adjusted according only to recent reported sales and are subject to weekly changes. TANKER T/C RATES* 1 YR 3 YRS 5 YRS VLCC (300,000 dwt) 39,000/D 39,000/D 38,500/D SUEZMAX (150,000 dwt) 28,500/D 28,000/D 28,000/D AFRAMAX (110,00 dwt) 19,250/D 20,000/D 21,500/D PANAMAX (72,000 dwt) 16,500/D 17,250/D 18,500/D MR (45-50,000 dwt) 12,500/D 14,000/D 14,500/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $435.00 $449.50 $461.00 $447.50 180cst: $461.50 $462.00 $483.50 $4.50 MGO: $657.50 $730.00 $673.50 $647 50 WeberSeas, Weekly Market Report Page 9 of 10
WEBERSEAS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER Bobby Mitropoulos 6936-530005 Tom Protonotarios 6936-530006 Nicholas Sfinias 6944-343488 Spyros Karamassis 6945-776757 TANKER CHARTERING Basil Mavroleon 6932-644983 Lefteris Mystriotis 6946-762010 Dionysios Mitsotakis 6936-800320 George Karalis 6948-753725 TANKER OPERATIONS Kimon Polikratis 6932-300590 ADMINISTRATION Yannis Mitropoulos 6936-530007 Urania Savvaki 6934-257746 Very Truly Yours, W E B E R S E A S (H E L L A S) S.A. The information contained in this report has been obtained from various market sources. WEBERSEAS (HELLAS) S.A. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. WSH will not be held responsible for any action or failure to take action upon reliance on information contained in this report. 2010 WEBERSEAS (HELLAS) S.A. All Rights Reserved WeberSeas, Weekly Market Report Page 10 of 10