Monday, November 21, 2011 (Week 46) IN THE NEWS → Latest Company News → 13th Annual Investor Forum - Greece “A New Beginning” → Select Dividend Paying Shipping Stocks → Weekly China Update CAPITAL MARKETS DATA → Currencies, Commodities & Indices → Shipping Equities - Weekly Review → Weekly Trading Statistics, by Knight Capital → Shipping Bonds - Weekly Review, by Knight Capital SHIPPING MARKETS → The Week In Review, by Golden Destiny → Dry Bulk Market - Weekly Highlights, by Intermodal Shipbrokers → Tanker Market - Weekly Highlights, by Charles R. Weber Company → Weekly Tanker Market Opinion, by Poten & Partners → Weekly Freight Rate & Asset Trends, by Intermodal Shipbrokers → Container Market - Weekly Highlights, by Braemar Seascope → S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny → Forward Freight Agreements - FFAs, by SSY Futures EVENTS → Conference Call Calendar TERMS OF USE & DISCLAIMER CONTENT CONTRIBUTORS Capital Link Shipping Weekly Markets Report
Transcript
Monday, November 21, 2011 (Week 46)
IN THE NEWS→ Latest Company News→ 13th Annual Investor Forum - Greece “A New Beginning”→ Select Dividend Paying Shipping Stocks→ Weekly China Update
CAPITAL MARKETS DATA→ Currencies, Commodities & Indices→ Shipping Equities - Weekly Review→ Weekly Trading Statistics, by Knight Capital→ Shipping Bonds - Weekly Review, by Knight Capital
SHIPPING MARKETS→ The Week In Review, by Golden Destiny→ Dry Bulk Market - Weekly Highlights, by Intermodal Shipbrokers → Tanker Market - Weekly Highlights, by Charles R. Weber Company → Weekly Tanker Market Opinion, by Poten & Partners→ Weekly Freight Rate & Asset Trends, by Intermodal Shipbrokers→ Container Market - Weekly Highlights, by Braemar Seascope→ S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny→ Forward Freight Agreements - FFAs, by SSY Futures
EVENTS→ Conference Call Calendar
TERMS OF USE & DISCLAIMER
CONTENT CONTRIBUTORS
Capital Link Shipping Weekly Markets Report
New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526London - Longcroft House,2-8 Victoria Avenue, London, EC2M 4NS, U.K Tel. +44(0) 203 206 1320 Fax. +44(0) 203 206 1321Athens - 40, Agiou Konstantinou Str, Suite A 5, 151-24 Athens, Greece Tel. +30 210 6109 800 Fax +30 210 6109 801
Capital Link - New York - London - Athenswww.capitallink.comwww.capitallinkforum.com
www.CapitalLinkShipping.comA web based resource that provides information on the major shipping and stock market
Investor Relations & Financial Advisory
indices, as well as on all shipping stocks. It also features an earnings and conference call calendar, industry reports from major industry participants and interviews with CEOs, analysts and other market participants.
www.CapitalLinkWebinars.comSector Forums & Webinars: Regularly, we organize panel discussions among CEOs, analysts, bankers and shipping industry participants on the developments in the various shipping sectors (containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity in Shipping Today, Scrapping, etc).
Capital Link Investor Shipping ForumsIn New York, Athens and London bringing together investors, bankers, financial advisors, listed companies CEOs, analysts, and shipping industry participants.
www.MaritimeIndices.comCapital Link Maritime Indices: Capital Link developed and maintains a series of stock market maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Index, CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fleet Index, CL Shipping MLP Index – Bloomberg page: CPLI. The Indices are also distributed through the Reuters Newswires and are available on Factset.
Capital Link Shipping Weekly Markets ReportWeekly distribution to an extensive audience in the US & European shipping, financial and investment communities with updates on the shipping markets, the stock market and listed company news.
Operating more like a boutique investment bank rather than a traditional Investor Relations firm, our objective is to assist our clients enhance long term shareholder value and achieve proper valuation through their positioning in the investment community. We assist them to determine their objectives, establish the proper investor outreach strategies, generate a recurring information flow, identify the proper investor and analyst target groups and gather investor and analyst feedback and related market intelligence information while keeping track of their peer group. Also, to enhance their profile in the financial and trade media.
Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on our in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to the shipping industry becoming the largest provider of Investor Relations and Financial Communications services to international shipping companies listed on the US and European Exchanges. Capital Link's headquarters are in New York with a presence in London and Athens.
In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge of shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as:
...Linking Shipping and Investors Across the GlobeCapital Link Shipping
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 3
IN THE NEWS
Latest Company NewsMonday, Nov 14, 2011
Scorpio Tankers Inc. Announces Q3 and Nine Months 2011 Financial Results
Scorpio Tankers Inc. (NYSE: STNG) reported its results for the three and nine months ended September 30, 2011. The Company recorded a net loss of $6.9 million or $0.22 basic and diluted loss per share for the three months ended September 30, 2011 compared to a net loss of $1.6 million or $0.09 basic and diluted loss per share for the three months ended September 30, 2010.
Global Ship Lease Reports Results for Q3 2011
Global Ship Lease, Inc. (NYSE:GSL) announced its unaudited results for the three and nine months ended September 30, 2011. It reported revenue of $38.7 million for the third quarter 2011, down from $40.0 million for the third quarter 2010. EBITDA was $25.2 million for the third quarter 2011, down on $26.8 million for the third quarter 2010. Net loss for the three months ended September 30, 2011 was $0.9 million after $6.1 million non-cash interest rate derivative mark-to-market loss.
NewLead Holdings Ltd. Announces Delivery of New Kamsarmax Vessel
NewLead Holdings Ltd. (NASDAQ: NEWL) announced that on November 10, 2011 , the “Newlead Gujarat,” a new geared Kamsarmax dry bulk vessel of 79,263 dwt, was delivered from Cosco Dalian Shipyard Co. to NewLead’s fleet. The “Newlead Gujarat” is the second geared Kamsarmax that NewLead built at Cosco Dalian Shipyard Co.
Genco Shipping & Trading Limited Completes Acquisition of Five Handysize Vessels
Genco Shipping & Trading Limited (NYSE: GNK) announced that it has taken delivery of the Genco Spirit, a 34,432 dwt Handysize newbuilding. The Genco Spirit is the final vessel to be delivered to the Company under Genco’s agreement previously announced on June 9, 2010 to acquire five Handysize vessels from companies within the Metrostar group of companies. The Genco Spirit was delivered to its charterer, Cargill International S.A., to commence a time charter for 34.5 to 37.5 months. The rate for the time charter will be linked to the Baltic Handysize Index (BHSI), incorporating a floor of $8,500 and a ceiling of $13,500 daily, with a 50% profit sharing arrangement to apply to any amount above the ceiling. The rate will be based on 115% of the average of the daily rates of the BHSI, as reflected in daily reports. Hire will be paid every 15 days in advance, net of a 5.00% third party brokerage commission. The Company used available cash of $9.9 million as well as $20.0 million under its $100 million term loan facility to pay the remaining balance of $29.9 million for the Genco Spirit.
Tuesday, Nov 15, 2011
NewLead Holdings Ltd. Announces Third Favorable Arbitration Award Against TMT Bulk Corp.
PR Newswire
NewLead Holdings Ltd. (NASDAQ: NEWL) announced that it has recently received a third favorable arbitration award against TMT Bulk Corp. (“TMT”) for $1,334,663.26 plus interest. The total amount awarded to date, under the three interim arbitration awards, is $5,267,488.34 plus interest. As of November 12, 2011 , the total outstanding amount owed by TMT to NewLead including the aforementioned awarded amount was approximately $9,300,000 exclusive interest and costs. Currently,
a total amount of approximately $10,200,000 is held as security for the Company’s claims against TMT.
Star Bulk Takes Delivery of Its Second Capesize Newbuilding, Star Polaris
Star Bulk Carriers Corp. (NASDAQ: SBLK) announced that it has taken delivery of the Star Polaris, a 179,546 dwt Capesize newbuilding. The Star Polaris is the second vessel delivered to the Company from HHIC-Phil Inc., a subsidiary of Hanjin Heavy Industries and Construction Co. Ltd. The vessel was delivered to its charterer, Louis Dreyfus, and commenced a two year time charter at a gross daily rate of $16,500 with an optional one year at a gross daily rate of $19,000.
Navios Maritime Acquisition Corporation Announces Delivery and Time Charter for One LR1 Product Tanker
Navios Maritime Acquisition Corporation (NYSE: NNA) announced that the LR1 Product Tanker Nave Andromeda of 75,000 dwt was delivered from a South Korean shipyard and immediately began a 3-year charter-out with two one-year options at a net rate of $11,850 for the first three years with 100% profit sharing for rates below $15,000/day and 50/50 above $15,000/day. The profit sharing formula is calculated monthly and incorporates a $2,000 premium above the relevant index. The Nave Andromeda is expected to generate approximately $1.6 million annual base EBITDA and $4.8 million of aggregate base EBITDA, assuming operating expense approximating current operating costs and 360 revenue days per year.
Wednesday, Nov 16, 2011
Star Bulk Enters Into a One-Year Time Charter Agreement for the Star Kappa
Star Bulk Carriers Corp. (NASDAQ: SBLK) announced that it has entered into a time charter contract with Pacific Basin Chartering Limited BVI for the Star Kappa for approximately one year, at a gross daily rate of $12,500. The Star Kappa is a Supramax vessel of 52,055 dwt built in 2001. The new contract is expected to contribute a minimum of $4.2 million to a maximum of $5.1 million in gross revenue. The vessel is expected to be delivered to Pacific Basin once it finishes its scheduled drydock.
STEALTHGAS INC. Reports Q3 and Nine Months 2011 Financial and Operating Results
STEALTHGAS INC. (Nasdaq:GASS) announced its unaudited financial and operating results for the third quarter and nine months ended September 30, 2011.Voyage revenues for the three months ended September 30, 2011, amounted to $27.5 million, an increase of $0.8 million, or 3.0%, compared to voyage revenues of $26.7 million for the three months ended September 30, 2010. The net income for the three months ended September 30, 2011 was $6.2 million or $0.30 per share, an increase of $5.2 million, from net income of $1.0 million or $0.05 per share for the three months ended September 30, 2010.
Paragon Shipping Inc. Reports Q3 and Nine Months Ended September 30, 2011 Results
Paragon Shipping Inc. (NYSE: PRGN) announced its results for the third quarter and nine months ended September 30, 2011. It reported gross time charter revenue of $21 million for the third quarter of 2011, Net Income of $0.3 million, or $0.005 per basic, and EBITDA of $10.3 million during the same period. After adjusting for non-cash items for the third quarter of 2011, the Company reported EBITDA of $12.1
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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IN THE NEWS
million and Net Income of $2.9 million or $0.05 per share.
TORM is in close discussions with its banks regarding an amended and extended repayment schedule of its debt. In addition, the Company has initiated dialogue with other main stakeholders. It is anticipated that a rights issue of up to USD 300 million will be a part of the comprehensive financing plan. The previously announced equity rights issue and the extraordinary general meeting will be postponed. Consequently the extraordinary general meeting on 22 November 2011 has been cancelled. As a part of the plan, TORM will continue its ongoing efficiency programme and will be targeting new cost and cash improving initiatives with a cumulative impact of minimum USD 100 million over the next three years.
General Maritime Reaches Agreement on a $175 Million New Equity Investment and an Agreement With a Steering Committee of Senior Lenders on Key Terms to Restructure Debt
General Maritime Corporation (NYSE: GMR) announced that it has reached agreements with its key senior lenders (the “Key Senior Lenders”), including its bank group, led by Nordea Bank Finland plc, New York Branch (“Nordea”) as administrative agent, as well as affiliates of Oaktree Capital Management, L.P. (“Oaktree”), on the terms of a financial restructuring to strengthen the Company’s balance sheet and enhance its financial flexibility. In order to implement the terms of the restructuring agreement and equity commitment letter, General Maritime today elected to file for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York .
Navios Maritime Holdings Inc. Reports Financial Results for Q3 and Nine Months Ended September 30, 2011
Navios Maritime Holdings Inc. (NYSE: NM) reported financial results for the third quarter and nine months ended September 30, 2011. Its revenue increased by 7.2% to $173.8 million in the third quarter of 2011 from $162.1 million for the same period in 2010. EBITDA increased by 6.2% to $67.3 million in the third quarter of 2011 from $63.3 million for the same period in 2010. Besides, the Board of Directors declared a quarterly cash dividend for the third quarter of 2011 of $0.06 per share of common stock.
Diana Containerships Inc. Announces Results of 2011 Annual Meeting of Shareholders
Diana Containerships Inc. (Nasdaq:DCIX) announced that the Company’s Annual Meeting of Shareholders was duly held on November 15, 2011, in Amsterdam. At the Meeting, each of the following proposals were approved and adopted: the re-election of Mr. Ioannis Zafirakis and Mr. Antonios Karavias as Class I Directors of the Company, to serve until the 2014 Annual Meeting of Shareholders; and the appointment of Ernst & Young (Hellas) as the Company’s independent auditors for the fiscal year ending December 31, 2011.
Diana Shipping Inc. Announces Time Charter Contract for M/V Nirefs
Diana Shipping Inc. (NYSE:DSX) announced that it has entered into
a time charter contract with Morgan Stanley Capital Group Inc., for one of its Panamax dry bulk carriers, the m/v Nirefs, at a gross rate of US$12,250 per day, minus a 5% commission paid to third parties for a minimum thirteen to sixteen month period. The charter is expected to commence in early December 2011. This employment is expected to generate approximately US$4.78 million of gross revenues for the minimum scheduled period of the charter. The Nirefs is a 75,311 dwt Panamax dry bulk carrier built in 2001.
TBS International Continues Discussions With Its Bankers
TBS International plc (NASDAQ: TBSI) announced that it is continuing its discussions with its consortium of bankers to restructure its bank debt and alleviate some of the pressure on its cash flow. The discussions continue to focus on reaching agreements with all of the Company’s different lending syndicates. While the discussions with the lenders have not reached the stage where the terms of a restructuring have been fully agreed upon, TBS continue to meet all of their obligations to their vendors, shippers and consignees even though their lenders have made it clear that they would not agree to a restructuring in which any value were attributed to our common equity.
Friday, Nov 18, 2011
Tsakos Energy Navigation Reports Financial Results for Nine Months and Q3 Ended September 30, 2011
Tsakos Energy Navigation reports financial results nine months and third quarter ended september 30, 2011. It reported revenues, net of voyage expenses and commissions, of $55.6 million in the third quarter of 2011, and $191.8 million in the first nine months of 2011. As announced on October 18, 2011, the Company’s Board of Directors declared a quarterly dividend of $0.15 per share of common stock outstanding payable on November 30, 2011 to shareholders of record as of November 25, 2011.
Diana Shipping Inc. Announces the Acquisition of a Panamax Dry Bulk Carrier
Diana Shipping Inc. (NYSE:DSX) announced that it has agreed to purchase from an unaffiliated third party the MV “Vathy”, a 2010 built Panamax dry bulk carrier of 81,297 dwt, for a price of US$32.25 million. The vessel, to be renamed “Leto”, is expected to be delivered to the Company by the sellers during the first quarter of 2012.
Monday, Nov 21, 2011
Globus Maritime Reports Financial Results for Q3 & Nine Months Ended September 30, 2011
Globus Maritime Limited (NASDAQ: GLBS) reported its unaudited consolidated operating and financial results for the three-month and nine-month periods ended September 30, 2011. For the three months ended September 30, 2011, Revenue increased by 4.5% to $9.2 million, and Net Revenue increased by 3.8% to $8.3 million, both compared to the same period in 2010. For the nine months ended September 30, 2011, Revenue increased by 24.5% to $25.4 million, and Adjusted EBITDA increased by 18.3% to $14.2 million, compared to the same period in 2010. Additionally, the Board of Directors declared a quarterly cash dividend of $0.16 per common share for the third quarter of 2011, which was paid on or about November 9, 2011, to shareholders of record as of October 31, 2011.
CAPITAL LINK FORUM
Investor Forum - Greece
• European Sovereign Debt - Developments & Outlook • The Restructuring of the State-Owned Enterprises • The Legal Aspects of the Upcoming Privatization Program • Hellenic Exchanges & the Greek Stock Market • Investment Opportunities for Foreign Investors in the Greek Stock Market • Restructuring as an Investment Opportunity • Telecommunications • Banking Sector • Energy Sector • Gaming & Sports Bettin
Wednesday, December 7, 2011 - Metropolitan Club, New York City
Morning Presentation sessions: greece - a new Beginning
13th Annual
who should attend
afternoon roundtaBle sessions: 5th annual gloBal shiPPing roundtaBle• The Global Energy & Tanker Shipping Markets • The Global Commodities & Dry Bulk Shipping Markets • The Global Container Shipping Markets • Analyst Panel
Our target audience is the management of top U.S. corporations with an active interest or involvement with Greece and the greater region; institutional investors in Greek equities and fixed income securities; portfolio managers and analysts; commercial and investment bankers; financial advisors and brokers; and financial media and press. On average, around 800 professionals attend.
Introductory Remarks by Mr. Jay Collins, Vice Chairman of
Global Banking, Citi&
Prof. Evangelos Venizelos, Deputy Prime Minister &
When restless New York City hedge fund manager Robert Fairchild watches the Baltic Dry Cargo Index plunge 97%, registering an all-time high and a 25-year low within the span of just six months, he decides to buy a ship. Immediately fantasizing about naming a vessel after his wife, carrying a string of worry beads and being able to introduce himself as a “shipowner” at his upcoming college reunion, Fairchild immediately embarks on an odyssey into the most exclusive, glamorous and high stakes business in the world. From pirates off the coast of Somalia, to Wall Street investment bankers to Greek and Norwegian shipping magnates, the education of Robert Fairchild is an expensive one. In the end, he loses his hedge fund, but he gains a life - as a Shipping Man.
Part fast paced financial thriller, part ship finance text book, The Shipping Man is 310 pages of required reading for anyone with an interest in capital formation for shipping.
Available at
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 7
IN THE NEWS
Select Dividend Paying Shipping Stocks
Get your message across to
36,000 weekly recipients around the globeJoin a select group of shipping & financial industry’s advertisers by promoting your brand with
Capital Link’s Shipping Weekly Markets Report.
For additional advertising information and a media kit, please contact/email:
Ticker 2010 Total Dividend Last Closing Price (Nov-18, 2011)
Annualized Dividend Yield
Goldenport Holdings GPRT 5.40 72.25 7.47%
*Board approved an eight percent (8%) dividend increase, beginning with the third quarter 2011 dividend, raising the quarterly dividend from $0.25 to $0.27 per common share.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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IN THE NEWS
Weekly China UpdateSteel /Iron Ore
According to the China Iron and Steel Association, with the season for low steel consumption approaching, steel demand in China is generally weakening. Steel inventories in China are declining especially for long steel products. As of the end of October, total inventory in the 26 main domestic steel markets amounted to 14.34 million tonnes indicating a decrease of 0.87 MoM. In November, however, the decline in China steel inventories has speeded up. As of November 10, total inventory in the 26 main domestic steel markets was 13.43 million tonnes down by 6.35% from the end of October. Long steel products saw the fastest drop in inventory with inventories of both rebar and wire rod falling to their lowest levels for the current year.
China’s steel production continued to reduce in November with the daily output of crude steel down to 1.6641 million metric tons (tonnes) in the first ten days of the month, according to latest estimates from the China Iron and Steel Association (CISA). The early-November figure is 52,900 tonnes lower than that in the proceeding ten days. Daily crude steel output of member steelmakers of the CISA, namely 76 large and medium-sized steel mills, stood at 1.4801 million tonnes in November 1-10 period, down 10,900 tonnes over that in end-October.
China’s construction steel market is featured as quickly-decreasing inventory after the price dive. According to China Iron and Steel Association data monitor, by November 11, wire rod and rebar inventory at the 28 key domestic markets are 1.1379 million tonnes and 6.2154 million tonnes, respectively down 223,000 tonnes and 617,600 tonnes when compared with those in October 8.
Coal
Thermal coal prices at major ports around Bohai Sea headed down for the first time since September 7. The latest Bohai-Rim Steam-Coal Price Index, or BSPI, indicates that the average price of thermal coal with calorific value of 5500 Kcal/kg dropped by CNY 1 per tonne to CNY 852 per tonne in the week ending November 16. Industry sources reported that the price showed continuous rise from early September to late October and kept flat for three weeks in a row thereafter. At Qinhuangdao port, the price of 4500 Kcal/kg and 5500 Kcal/kg thermal coal was down CNY 5 per tonne from a week earlier to CNY 645-655 per tonne and CNY 845-855 per tonne respectively, the first drop in several weeks, and that of 5000 Kcal/kg and 5800 Kcal/kg reached CNY 745-755 per tonne and CNY 900-910 per tonne. The sharp decline in coal inventories at Qinhuangdao port, caused by the overhaul of Daqin railway, triggered growing concerns about coal supply at China main
ports and pushed up coal prices. After the rail line resumed full operations, coal stockpiles at the ports recovered and alleviated coal supply tension, which as a result cooled down coal prices. What’s more, China’s key power plants currently have high stock level, sufficient for 20 days of consumption.
Coal inventories at the four major harbors around Bohai Sea witnessed a fall after rising for five weeks in a row. Coal stockpiles at the four major harbors decreased to 11.951 million tonnes in the week ending November 13, down 2.24 percent or 274,000 tonnes from 12.225 million tonnes in the previous week. Industry sources said that coal stocks at the four ports will edge up next week given the weakening demand from downstream sectors and correspondingly thermal coal prices will show slight rise.
Shipping Indices
Shanghai Containerized Freight Index closed at 885.38 for the week ended Nov 11, losing 1.43% week-on-week. China Coastal Bulk Freight Index decreased 1.70% to 1199.48 during the same period.
Articles compiled by Capital Link, Inc with information provided by Jeff Yuan, Senior Manager at Guotai Junan Securities Co., Ltd. China.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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CAPITAL MARKETS DATA
Currencies, Commodities & IndicesWeek ending Friday, November 18, 2011
During last week, shipping equities outperformed the broader market, with the Capital Link Maritime Index (CLMI), a composite index of all US listed shipping stocks increasing 3.86% compared to the S&P 500 decreasing 3.81%, and the Dow Jones Industrial Average (DJII) losing 2.94%. Year-to-date, the CLMI has increased 0.01% versus a gain of 1.07% for the DJII and a loss of 4.42% for the S&P 500. The broader markets fell considerably.
LNG/LPG stocks performed the best during last week, with the Capital Link LNG/LPG Index gaining 2.86%, compared to the gains of 2.61% for Capital Link Tanker Index, 1.42% for Capital Link MLP Index, and the losses of 0.84% for Capital Link Dry Bulk Index, 3.20% for Capital Link Container Index, and 4.30% for Capital Link Mixed Fleet Index. Year-to-date, the best performing sector has been LNG/LPG stocks, with the Capital Link LNG/LPG Index gaining 21.16%, followed by Capital Link MLP Index losing 10.97% and Capital Link Tanker Index sliding 18.69%.
During last week, dry bulk stocks underperformed the physical shipping market, as the Baltic Dry Index (BDI) increased 3.27% compared to a loss of 0.84% for the Capital Link Dry Bulk Index. Year-to-date, the BDI has gained 11.93% compared to a loss of 26.16% for the Capital Link Dry Bulk Index. Capesize rates continued to climb last week as iron ore prices improve and port congestion ties up more ships.
Tanker stocks outperformed the physical tanker shipping market during last week as well, with the Baltic Dirty Tanker Index (BDTI) gaining 1.42% and the Baltic Clean Tanker Index (BCTI) losing 2.43% compared to an increase of 2.61% for the Capital Link Tanker Index. Year-to-date, the BDTI has slipped 6.53% and the BCTI has gained 7.40%, while the Capital Link Tanker Index has lost 18.69%. Brent Crude Oil lost 3.31% for the week, but gained 17.63% year-to-date.
The Trading Statistics supplied by Knight Capital provide details of the trading performance of each shipping stock and analyze the market’s trading momentum and trends for the week and year-to-date.
The objective of the Capital Link Maritime Indices is to enable investors, as well as all shipping market participants, to better track the performance of listed shipping stocks individually, by sector or as an industry. Performance can be compared to other individual shipping stocks, to their sector, to the broader market, as well as to the physical underlying shipping markets or other commodities. The Indices currently focus only on companies listed on US Exchanges providing a homogeneous universe. They are calculated daily and are based on the market capitalization weighting of the stocks in each index. In terms of historical data, the indices go back to January 1, 2005, thereby providing investors with significant historical performance.
There are seven indices in total; the Capital Link Maritime Index comprised of all 50 listed shipping stocks, and six Sector Indices, the CL Dry Bulk Index, the CL Tanker Index, the CL Container Index, the CL LNG / LPG Index, the CL Mixed Fleet Index and the CL Maritime MLP Index.
The Index values are updated daily after the market close and can be accessed at www.CapitalLinkShipping.com or at or www.MaritimeIndices.com. They can also be found through the Bloomberg page “CPLI” and Reuters.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 13
CAPITAL MARKETS DATA
Shipping Equities
Track all U.S. & European listed Shipping companies and access: earnings & conference call calendar, media interviews, press releases, news, blogs, stock prices/charts & presentations
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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CAPITAL MARKETS DATA
Weekly Trading Statistics
Custom Statistics Prepared Weekly for Capital Link Shipping
BROAD MARKET Percent Change of Major Indexes for the Week Ending Friday, November 18, 2011 Name Symbol Close Net Gain Percent Gain Dow Jones Transportation Index TRAN 4840.8 -137.18 -2.76% Dow Jones Industrial Average Index INDU 11796.16 -357.52 -2.94% Russell 2000 Index RUT 719.35 -25.29 -3.40% Nasdasq Transportation Index TRANX 2147.62 -78.39 -3.52% Russell 3000 Index RUA 719.09 -28.06 -3.76% Russell 1000 Index RUI 671.27 -26.42 -3.79% S&P 500 Index SPX 1215.65 -48.20 -3.81% Nasdaq Composite Index COMPX 2572.5 -106.25 -3.97% Nasdaq-100 Index NDX 2253.95 -101.83 -4.32% Dow Jones Transportation Index TRAN 4840.8 -137.18 -2.76%
Index Data: INDU (Dow Jones Industrial Average Index. The INDU closed today at 11,796.16 for a weekly loss of -357.52 pts (-2.9417%). The high of the week was 12,206.02 while the low was 11,659.43 (close = 25.02% of high/low range). The INDU closed 8.76% from its 52 week high (12,928.45) and 13.84% from its 52 week low (10,362.26).
*Momentum: (100D % change) + 1.5*(50D % change) + 2.0*(10D % change) for each stock - sort names that have a negative value in ascending order - report the top 10.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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CAPITAL MARKETS DATA
Weekly Trading StatisticsTop Consecutive Higher Closes Top Consecutive Lower Closes
Symbol Close Up Streak FRO 5.78 2 GSL 1.89 2 TGP 32.87 2
Symbol Close Down Streak NMM 15 -2 TOO 27.4 -2 TK 28.09 -2 OSG 13.96 -2 TBSI 0.45 -3 SSW 11.35 -3 ALEX 37.01 -3 GLNG 41.99 -3 EXM 2.06 -3 CMRE 11.98 -3
Top Largest Weekly Trading Gains Top Largest Weekly Trading Losses
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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CAPITAL MARKETS DATA
Weekly Trading Statistics Top Stocks with Highest Weekly Volume Run Rate* > 1
Symbol Close Net % Change Run Rate GSL 1.89 -10.00% 1.5747 TEU 10.22 4.50% 1.4935 ALEX 37.01 -6.40% 1.4650 TGP 32.87 1.92% 1.4595 GLNG 41.99 2.67% 1.1551 DHT 1.06 -15.20% 1.0817 TNK 4.56 -2.36% 1.0817 FRO 5.78 -9.26% 1.0482
*The Volume Run Rate is calculated by dividing the current week's volume by the average volume over the last 20 weeks. For example, a run rate of 2.0 means the stock traded twice its average volume.
Top Year-To-Date Gainers Top Year-To-Date Decliners Symbol YTD Gain % GLNG 188.79% GMLP 14.37% TOO 5.83%
The following are the 45 members of this group: Symbol – Name: ALEX - Alexander & Baldwin Inc; ANW - Aegean Marine Petroleum Network Inc; BALT - Baltic Trading Ltd; BHO - B+H Ocean Carriers Ltd; CPLP - Capital Product Partners LP; CMRE- Costamere, Inc.; DAC - Danaos Corp; DCIX – Diana Containerships; DHT - DHT Maritime Inc; DRYS - DryShips Inc; DSX - Diana Shipping Inc; EGLE - Eagle Bulk Shipping Inc; ESEA - Euroseas Ltd; EXM - Excel Maritime Carriers Ltd; FREE – FreeSeas; FRO - Frontline Ltd; GASS - StealthGas Inc; GLBS – Globus Maritime Limited ; GLNG - Golar LNG Ltd; GMLP – Golar LNG Partners; GMR - General Maritime Corp; GNK - Genco Shipping & Trading Ltd; GSL - Global Ship Lease Inc; HRZ - Horizon Lines Inc; NAT - Nordic American Tanker Shipping; NEWL - NewLead Holdings Ltd; NM - Navios Maritime Holdings Inc; NMM - Navios Maritime Partners LP; NNA - Navios Maritime Acquisition Corp; OSG - Overseas Shipholding Group Inc; PRGN - Paragon Shipping Inc; SB - Safe Bulkers Inc; SBLK - Star Bulk Carriers Corp; SFL - Ship Finance International Ltd; SHIP - Seanergy Maritime Holdings Corp; SSW - Seaspan Corp; STNG - Scorpio Tankers Inc; TBSI - TBS International Ltd; TEU – Box Ships Inc; TGP - Teekay LNG Partners LP; TK - Teekay Corp; TNK - Teekay Tankers Ltd; TNP - Tsakos Energy Navigation Ltd; TOO - Teekay Offshore Partners LP; TOPS - TOP Ships Inc; TRMD - D/S Torm A/S; VLCCF - Knightsbridge Tankers Ltd Notes These symbols were ignored in some analysis (i.e. 200 day moving average) due to the lack of historical data: GMLP and TEU. DISCLAIMER This communication has been prepared by Knight Equity Markets, L.P. The information set forth above has been compiled from third party sources believed by Knight to be reliable, but Knight does not represent or warrant its accuracy, completeness or timeliness of the information and Knight, and its affiliates, are not responsible for losses or damages arising out of errors or omissions, delays in the receipt of this information, or any actions taken in reliance thereon. The information provided herein is not intended to provide a sufficient or partial basis on which to make an investment decision. The communication is for your general information only and is not an offer or solicitation to buy or sell any security or product. Knight and its affiliates most likely make a market in the securities mentioned in this document. Historical price(s) or value(s) are as of the date and, if applicable, time indicated. Knight does not accept any responsibility to update any information contained in this communication. Knight and/or its affiliates, officers, directors and employees, including persons involved in the preparation or issuance of this material, may, from time to time, have long or short positions in, or buy or sell (on a principal basis or otherwise) the securities mentioned in this communication which may be inconsistent with the views expressed herein. Questions regarding the information presented herein or a request for a copy of this document should be referred to your Knight representative. Copyright 2011 Knight Equity Markets, L.P. Member NASD/SIPC. All rights reserved.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 18
CAPITAL MARKETS DATA
Shipping Bonds Contributed by
Month to date high yield deal volume is $23.180 billion in 34 deals. The year to date high yield deal volume is $249.569 billion in 533 deals. Yesterday, the S&P/LSTA Leveraged Loan 100 lost 10 basis points, to close at 91.73. The current default rate by amount outstanding is 0.17% for November, versus 0.32% for October. Data from EPRF Global reported an inflow to HY funds of $194 million for the week ended Nov. 16th.
On Thursday General Maritime Corp announced it filed for bankruptcy protections and intends to restructure with creditors.
Trailer Bridge filed for Chapter 11 bankruptcy on Wednesday after its 9.25% senior secured notes came due. The Company intends to complete is reorganization by the end of Q1 2012. Whippoorwill Associates has loaned Trailer Bridge $15 million in debtor-in-possession financing.
Belships, an Oslo-based company, will pay PIK interest on its interest due on its floating rate notes on January 4th.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
ECONOMIC ENVIRONMENT Greece and Italy finally implemented new governments under the pressure of Eurozone for compliance with long demanded economic reforms and the social unrest. Eurozone still pushes Athens and Rome as a European official stated that it doesn’t really matter who is in leadership, but the full delivery of all the commitments to avoid a possible contagion of crisis in the other EU member countries. The head of the International Monetary Fund, Christine Lagarde, has warned that the global economy is at risk of being plunged into a lost decade and European governments need to show political clarity about handling of their debt crisis to reassure lenders and investors. Lagarde also called Chinese leaders to discuss a possible contribution by Beijing to a European bailout. Speaking in China, Lagarde stated that if the countries do not act together, the worldwide economy runs the risk of downward spiral of uncertainly, financial instability and potential collapse of global demand.
Furthermore, the Asia Development Bank requested from India and China to be ready to help in eurozone’s rescue to avert a long term downturn that would stall the growth of Asian economies. Rajat Nag, the managing director of the Manila-based Asian Development Bank, said that the world’s two fastest growing large economies had to do all they can to speed the recovery of the currency bloc either through the International Monetary Fund or direct bilateral arrangements. He also added that the eurozone crisis threatens significant knock-on effects across Asia. The Asian Development Bank’s forecast of a 7.5% economic growth in Asia for 2011-2012 faces risks on the downside from the threats in the euro area. On the other hand, Anand Sharma, India’s minister of Trade said that India will do whatever it can to help the eurozone economy as its own economy is now suffering from drain in exports and foreign capital inflows. He said that nobody wants the eurozone to remain unstable and turbulent. “It is an imperative and not an option to sustain the high level of growth to secure employment for tens of millions of our young men and women.”
The European Union has already warned that the eurozone could slip back into recession next year by predicting only a 0.5% growth in 2012, well below from its earlier prediction of 1.8% in spring. The sharp cut in the forecast comes from the alarming debt crisis in Italy as the interest rate on Italy’s 10 year bonds has reached the same levels that forced Greece, Portugal and Ireland to request multibillion EURO bail outs.
In Japan, the economy showed signs of expansion between July and September following three consecutive quarters of decline. According to government’s preliminary estimates, the country experienced 1.5% quarter-on-quarter growth in its gross domestic product, equivalent to an annualized rate of 6%, but the world’s third largest economy remains vulnerable to the effects of European economic turmoil and U.S. slowdown. Kiichi Murashima, economist at Citigroup Global Markets Japan, said that most of the quarter’s growth came in early summer and monthly data are already showing that the economy is losing stream with the industrial
production falling 4% in September, its first monthly decline since March. Despite the intervention of Japan’s Finance Minister in the currency markets last month, the yen’s rise adds pressure on the competitiveness of Japanese exports, the main driver of Japanese growth, with the sovereign debt crisis hurting the prospects of exports demand growth.
In China, the EU slowdown has already impaired the growth of Chinese exports in October by rising 15.9% year-on-year, down from 17.1% a month earlier, while imports increased 28.7% from 20.7% accelerating pace. Overall, China’s trade surplus still widened in October to $17 billion from $14.5bn a month earlier, but well below market expectations for a figure close to $25 billion. Chinese exports to the European Union were up 7.5% year-on-year in October, down from 9.8% in September, while exports to the US rose 13.9% in October, up from 11.6% in September.
SHIPPING MARKETThe shipping outlook of dry and wet vessel segments remains in gloom under the European economic uncertainty and the glut of new vessels. The current market fundamentals imply new investment decisions by the owners to be prepared for 2012 and limit their risk exposure against further slide of freight rates and asset prices. Earnings for large sized vessels in the bulk carrier and crude tanker segment are under severe pressure from imbalances between vessels’ supply and demand with containers experiencing significant falls in the freight rates of the major Asia – Europe route.
In the dry market, even the downward revision of the earnings from the end of October, the BDI still hovers at higher levels from the end of second quarter of the year, when dry bulk operators experienced record year lows of capesize earnings. The increase of Chinese iron ore production during October and the elevated levels of iron ore port stockpiles distressed Chinese iron ore imports. General Administration of Customs statistics data revealed that Chinese iron ore production increased in October by 4% from September, producing approximately 132 million tons, up 39% year-on-year with Chinese iron ore imports falling 18% month on month to 50 million tons, the lowest level since February.
The period chartering activity is under pressure with Chinese iron ore port stockpiles floating approximately 96 million tons and capesize earnings being 11.4% lower from the highest level of $31,998/day reached on October 25th. Signs for a firm thermal coal demand till the end of the year, due to low Qinhuangdao stockpiles
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
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SHIPPING MARKETS
The Week In Reviewfrom winter electricity pick up demand, will keep resistance against new lows of dry earnings. The lower levels of scrapping activity raises uncertainties for firmer levels of earnings in the capesize and panamax segment along with the glut of new vessel deliveries.
The index closed today at 1,895 points, up by 3.2% from last week’s closing and down by 12 % from a similar week closing in 2010 when it was 2,155 points. The highest rate increase has been in the supramax segment, BCI up 2.6% w-o-w, BPI up 3.9% w-o-w, BSI up 4.3% w-o-w, BHSI down 2% w-o-w.
Capesizes are currently earning $28,340/day, an increase of $1,152/day from a week ago, while panamaxes are earning $14,635/day, an increase of $556/day. At similar week in 2010, capesizes were earning $33,537/day, while panamaxes were earning $16,420/day. Supramaxes are still trading at lower levels than capesizes and panamaxes by earning $14,438/day, up by $594/day from last week’s closing. At similar week in 2010, supramaxes were getting $14,519/day, hovering at discounted levels from capesize and panamax. Handysizes are trading at $ 9,388/day; down by $186/day from last week, when at similar week in 2010 were earning $11,484/day.
In the wet market, the week ended with some air of optimism as the strong program of AG VLCC fixtures seen in November, the busiest for 2011, lifted VLCC earnings from recent lows with WS spot rates on the AG-USG route reaching 40 from 33.5 last week. Market sources suggest that Middle East fixtures for the first 20 days of November are up 38% month-in-month, driven by 40% increase in eastbound fixtures. However, the adequate supply of vessels do not allow a firm rebound of vessels earnings in the crude market with wet operators still struggling to survive under break even levels.
The upward momentum in the crude market is high likely that will continue as the Organization of Petroleum Exporting Countries is planning to bolster crude shipments this month to meet winter demand in Asia. More vessels’ employment opportunities will emerge for VLCC owners as OPEC will export 23,3 million barrels/day in the four week to November 26th, an increase of 4.6% from the 22,28 million barrels per day shipped in the month to October 29th, according to tanker-tracker oil movements. Exports from Middle Eastern producers, including non-OPEC members Oman and Yemen, will climb to 17,78 million barrels per day, 5.5% more than the 16,85 million barrels shipped in the month to October 29th, according to Oil Movements’ estimates.
In the gas market, the persistent surge of LNG demand from Japan keeps the rise of LNG spot freight rates. Daily freight rates for spot LNG vessels rose to $112,000 in October from $42,000 a year ago and $110,000 in September, according to Drewry Maritime Services. Rates for spot charters averaged $92,500/day during the year to date compared with $40,700 in 2010, while long term charters average $79,200/daily. Ulf Ryder, chief executive of Stena Bulk,
estimated that 90%-95% of the existing LNG tanker fleet, of about 360 LNG carriers, would soon be in use; whereas about 30% of the fleet was idle two years ago. Furthermore, Sveinung Stohle, chief executive of Norway’s Hoegh LNG, said that the market is likely to remain very tight till 2013 / 2014 and after that the completion of new LNG export facilities would still require more ships.
In the container market, the Shanghai Container Freight index posted its 10th consecutive weekly decline, closing last week at $898/TEU, down by 2.3% week-on-week with the Asia Europe rates being on a freefall by dropping 6.5% to $573/TEU from $613/TEU. At a similar week in 2010, the Shanghai Container Freight Index was standing at $1,221/TEU and Asia-Europe rates were hovering at $1,479/teu, up by 158% from the current levels. Asia – Europe routes are facing an influx of new container ships that are too large to operate anywhere else with many of these ships being pushed into lower volume routes and depressing also rates in those trades. Idle vessels are on the rise with Alphaliner predicting that the laid up container capacity will increase by 50% over the next two months to reach 600,000 TEU by early January as several services are being terminated or suspended by lines due to slow winter season and declining consumer demand.
The laid up capacity could reach 5% of the existing fleet by the end of the year, up from 0.6% at the end of June and 2.5% in mid-October. It estimates that at present the idle containership fleet has risen to 398,000 TEU, 185 ships, with owners of panamax tonnage being under increasing pressure as demand for ships of this size have strongly declined following service reorganizations favoring larger ships. Statistics data indicate that of the 185 ships idle at present, only one has a capacity above 7,500 per TEU, while the 1,000-2,000 TEU vessel size segment has the largest number of ships idled at 68 units.
Under the current market fundamentals, a merger of three Japanese carriers’ container operators is being considered as a potential strategic option in the face of consistently weekly earnings in the sector. According to Alphaliner’s Weekly Market Report, the consolidation of MOL, NYK and K Line’s liner fleets would create the world’s fourth largest container carrier and give the combined Japanese mega-line a market share of 7.5% compared to the three company’s individual shares of between 2.2% and 2.8%. The president of MOL said that discussions about the merger have not yet taken place, but cannot be ruled out in the future. The consolidation would be the first major since 2005, when APM-Maersk Acquired P&O Nedlloyd and Hapag-Lloyd acquired CP Ships.
In the shipbuilding industry, Tan Zuojan, president of Chinese state shipbuilding Corporation, speaking in a Shipbuilding Forum of Hong Kong stated that Chinese shipbuilding industry will be difficult to maintain its existing advantage of low cost ships by relying on traditional techniques against the rapid appreciation of the RMB, the continuing rise of labour costs and general inflation. Tan Zuojan
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 23
SHIPPING MARKETS
The Week In Review
The leading specialist in international transport finance
www.dvbbank.com
Frankfurt/Main · Hamburg · London · Cardiff · Rotterdam · BergenOslo · Piraeus · Zurich · Singapore · Tokyo · New York · Curaçao
0611_DVB-Anz_half-page_quer.indd 1 07.06.11 13:25
said that Chinese State Shipbuilding Corporation had been deeply committed to research and development in the construction of large ships, which South Korean counterparts are dominating, and they are now able to construct liquefied natural gas carriers at 30,000 cum, 147,000 cum, 160,000 cum, 172,000 cum, 175,000 cum and 220,000 cum. Furthermore, they have already marketed 9,000 TEU, 9,400 TEU, 10,000 TEU, 12,500 TEU and 13,400 TEU container vessels, while they are currently focusing on a design of 18,000 TEU vessels.
In the shipping finance, Danish dry bulk owner has sealed new debt facilities at a total of $50 mil from two Japanese banks to
finance a pair of newbuilding handysize dry bulk carriers under construction in Japan with delivery in 2012 and 2013. This agreement implies the support from Japanese ship-financing market in its domestic shipbuilding industry to increase Japanese shipbuilders’ competitiveness against Chinese and Korean counterparts. Furthermore, Japanese shipping player Nippon Yusen Kaisha is said to have been granted a large loan by a number of Tokyo banks. The Japan Bank for International Cooperation is leading a syndicated loan of JPY 12,6 billion ($162mil), the Bank of Tokyo-Mitsubishi UJF and Sumitomo Mitsui Banking Corp are also included in the syndicate.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 24
SHIPPING MARKETS
Dry Bulk Market - Weekly HighlightsContributed by
IntermodalIntermodal Shipbrokers Co.17th km Ethniki Odos Athens-Lamia & 3 Agrambelis Street,145 64 N. Kifisia,Athens - Greece
Phone: +30 210 6293300Website: www.intermodal.gr
Capesize rates continued to climb though at a slower rate and with most of the upward push provide by the very good position lists left behind by the frantic activity seen these past weeks. With worries mounting on a potential deterioration of global market conditions, Owners seem to be lacking the confidence required to push charterers further for even bigger improvements. This seemed to be the same scenario that unfolded for all other size segments as we saw an overall increased activity in both basins. Panamaxes and Supras closed the week with a considerable gain, despite the fact that both had witnessed a very slow start to the week. It seems as though there was an increased supply of stems in the Pacific from Wednesday onwards. This however seems to be an only temporary spike and it looks as though next week could turn out to be much quieter. Handies were the only size segment to close the week in the red regardless of the fact that there was plenty of fresh inquiries emerging mid-week. It seems as though there was a plethora of tonnage that had piled up from the week prior, especially in the Pacific which suffered the most from the excess tonnage.
Despite the increased demand seen these past couple of weeks for iron ore and coal, market demand is set for a potential downturn in the next couple of months as demand for steel starts to drop and many traders start to see a tightening in credit availability, something which is crucial for the support of their day to day trading. The only positive news surfacing this week was of a potential continuation in firm demand growth for thermal coal, something that has kept the dry bulk trade buoyant this year and is likely to remain the main influence for any positive movements next year as well..
020406080100120140160
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Baltic Dry
p The Baltic Dry Index closed on Friday the 18th of November at 1,895 points with a weekly gain of 60 points or 3.3% over previous
week’s closing. (Last Friday’s the 11th of November closing value was recorded at 1,835 points).
0
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Capesize
CAPESIZE MARKET - p The Baltic Cape Index closed on Friday the 18th of November at 3,235 points with a weekly gain of 85 points. For this week we monitor a 2.7% change on a week-on-week comparison, as Last Friday’s the 11th of November closing value was 3,150 points). It is worth noting that the annual average of 2011 for the Cape Index is currently calculated at 2,107 points, while the average for the year 2010 was 3,480 points.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 25
SHIPPING MARKETS
Dry Bulk Market - Weekly HighlightsWeek No. of
FixturesHighest Fixture
Lowest Fixture
this week 9 $54,000 $17,000last week 6 $31,000 $17,500
Week Period Charter Trip Charterthis week $17,950 $29,875last week $0 $23,917
For Week 46 we have recorded a total of 9 timecharter fixtures in the Capesize sector, 3 for period charter averaging $17,950 per day, while 6 trip charters were reported this week with a daily average of $29,875 per day.
This week’s fixture that received the lowest daily hire was the M/V ‘’IRON BEAUTY’’, 164218 dwt, built 2001, dely Xingang 16 Nov , redely worldwide, $17000, Cargill, for a 4/8 months trading -500$ reduced from last week, and the fixture with the highest daily hire was the M/V ‘’GENCO CONSTANTINE’’, 180163 dwt, built 2008, dely Rotterdam 23/25 Nov, redely PMO, $54000, Kleimar, for a trip via Narvik & PG, Cargill relet 23000$ improved from last week.
The BCI is showing a 2.7% increase on a weekly comparison, a -6.9% fall on a 1 month basis, a 39.2% increase on a 3 month basis, a 101.7% increase on a 6 month basis and a -8.3% fall on a 12 month basis.
0102030405060708090100
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no. Fixtures
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Panamax
PANAMAX MARKET - p The Baltic Panamax Index closed on Friday the 18th of November with a gain at 1,831 points having gained 70 points on a weekly comparison. It is worth noting that last Friday’s the 11th of November saw the Panamax index close at 1,761 points. The week-on-week change for the Panamax index is calculated to be 4.0%, while the yearly average for the Baltic Panamax Index for this running year is calculated at 1,749 points while the average for 2010 was 3,115 points.
Week No. of Fixtures Highest Fixture
Lowest Fixture
this week 52 $36,500 $8,500last week 39 $26,000 $3,800
Week Period Charter Trip Charterthis week $13,744 $17,944last week $13,083 $15,932
For Week 46 we have recorded a total of 52 timecharter fixtures in the Panamax sector, 8 for period charter averaging $13,744 per day, while 44 trip charters were reported this week with a daily average of $17,944 per day.
The daily earnings differential for the Panamaxes, that we calculate from all this week’s reported fixtures, i.e. the difference between the lowest and highest reported fixture for this week was improved, and this week’s fixture that received the lowest daily hire was the M/V ‘’ELLA CLAIRE’’, 64221 dwt, built 1989, dely aps Indonesia ppt , redely S.China, $8500, Qinfa, for a trip, 180000 bb 4700$ improved from last week, and the fixture with the highest daily hire was the M/V ‘’VOGE ENTERPRISE’’, 79409 dwt, built 2011, dely Brindisi 15/20 Nov , redely Pakistan, $36500, Proline, for a trip via Black Sea 10500$ improved from last week.
The BPI is showing a 4.0% increase on a weekly comparison, a -12.2% fall on a 1 month basis, a 12.5% increase on a 3 month basis, a 13.4% increase on a 6 month basis and a -10.2% fall on a 12 month basis.
05101520253035404550
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xSupramax
SUPRAMAX & HANDYMAX MARKET - p The Baltic Supramax Index closed on Friday the 18th of November at 1,381 points up with a weekly gain of 57 points or 4.3% . The Baltic Supramax index on a weekly comparison is with an upward trend as last Friday’s the 11th of November closing value was 1,324 points. The annual average of the BSI is recorded at 1,388 points while the average for 2010 was 2,148 points.
Week No. of Fixtures
Highest Fixture
Lowest Fixture
this week 29 $34,000 $5,000last week 27 $36,000 $3,750
Week Period Charter Trip Charterthis week $12,000 $13,611last week $12,117 $14,796
For Week 46 we have recorded a total of 29 timecharter fixtures in the Supramax & Handymax sector, 2 for period charter averaging $12,000 per day, while 27 trip charters were reported this week with a daily average of $13,611 per day.
The minimum vs maximum daily rate differential as analyzed from our fixtures database was overall reduced and from the reported
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 26
SHIPPING MARKETS
Dry Bulk Market - Weekly Highlightsfixtures we see that this week’s fixture that received the lowest daily hire was the M/V ‘’JIN RONG’’, 50236 dwt, built 2000, dely Xingang spot , redely India, $5000, U-Sea Bulk, for a trip via Indonesia 1250$ improved from last week, and the fixture with the highest daily hire was the M/V ‘’MANDARIN SINGAPORE’’, 57000 dwt, built 2011, dely USGulf spot , redely Singapore-Japan intention pet coke, $34000, ABT, for a trip -2000$ reduced from last week.
The BSI is showing a 4.3% increase on a weekly comparison, a -14.3% fall on a 1 month basis, a 2.1% increase on a 3 month basis, a -1.9% fall on a 6 month basis and a -0.6% fall on a 12 month basis.
024681012141618
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Handysize
HANDYSIZE MARKET - q The Baltic Handysize Index closed on Friday the 18th of November with a downward trend at 661 points with a weekly loss of -14 points and a percentage change of -2.1%. It is noted that last Friday’s the 11th of November closing value was 675 points and the average for 2011 is calculated at 730 points while the average for 2010 was 1,124 points.
Week No. of Fixtures
Highest Fixture
Lowest Fixture
this week 6 $17,500 $5,000last week 2 $17,100 $6,000
Week Period Charter Trip Charterthis week $11,000 $13,400last week $0 $11,550
For Week 46 we have recorded a total of 6 timecharter fixtures in the Handysize sector, 1 for period charter averaging $11,000 per day, while 8 trip charters were reported this week with a daily average of $13,400 per day.
The minimum vs maximum daily rate differential as analyzed from our fixtures database was overall improved and this week’s fixture that received the lowest daily hire was the M/V ‘’KEN MEI’’, 29734 dwt, built 2003, dely Kashima spot, redely Singapore-Japan, $5000, STX Pan Ocean, for a trip via New Zealand int logs -1000$ reduced from last week and the fixture with the highest daily hire was the M/V ‘’MAPLE FORTUNE’’, 32544 dwt, built 2010, dely Recalada 20/22 November, redely Morocco intention sugar approx, $17500, Dreyfus, for a trip 11500$ improved from last week.
The BHI is showing a -2.1% change on a weekly comparison, a -20.3% fall on a 1 month basis, a 1.7% increase on a 3 month basis, a -16.0% fall on a 6 month basis and a -16.1% fall on a 12 month basis.
All Baltic Dry Indices, 1 day, 1week , 1 month, 3 months, 6 months and 12 months % changes based on last Friday’s closing figures.
INDEX 1 DAY 1 WEEK 1 MONTH 3 MONTHS 6 MONTHS 1 YEAR
BDI -0.2% 3.3% -11.4% 25.1% 42.6% -12.1%
BCI -0.7% 2.7% -6.9% 39.2% 101.7% -8.3%
BPI 1.4% 4.0% -12.2% 12.5% 13.4% -10.2%
BSI 1.0% 4.3% -14.3% 2.1% -1.9% -0.6%
BHI 0.2% -2.1% -20.3% 1.7% -16.0% -16.1%
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 27
SHIPPING MARKETS
Tanker Market - Weekly HighlightsContributed by
Charles R. Weber Company, Inc.Charles R. Weber Company, Inc.Greenwich Office Park One,Greenwich CT 06831
Phone: 203 629-2300Website: www.crweber.com
Rate gains continue in the VLCC sector
Activity levels in the Middle East VLCC market remained strong this week despite a slight moderation from last week. Owners remained bullish and were successful at extending rate gains, which boosted overall earnings to an eight month high on the back of the sustained pace of fresh inquiry. The final tally of November Middle East cargoes came to 138, forming the basis of a more closely aligned supply/demand ratio.
Although the December program is more likely to see a cargo tally in the high 120s, which may halt further gains during the coming two weeks, the prospect of a decline in rates through the remainder of the November program remains low.
Early December is often marked by a quick conclusion to the December program ahead of the hectic industry party schedule. A subsequent rush into the January program ahead of the holidays should allow pressure to remain – particularly as the extent of the January program tends to exceed that of December, in correlation to a seasonal hike in refining rates. Accordingly, bullish sentiment remains and rates are likely to remain generally stable during the coming week with fresh gains probable thereafter through the remainder of 2011.
Modern tonnage premiums expand
In light of recent rate gains, the Middle East market has seen a widening disconnect between rates for older tonnage and those for newer, more competitive units. Units younger than 15 years commanded a 4 points premium for voyages to the Far East relative to those units which have exceeded 15 years. Factoring differences in bunker economy between the two age tiers implies TCE difference of ~$8,400/day.
There are a total of 26 Middle East fixtures to report this week, including 23 for discharge in the East, two in the West and one in South Africa. Rates to the Far East gained 9.4 points, w/w, to an average of ws60.42 with corresponding TCEs gaining 13.8% to an average of ~$21,500/day. Rates to the West gained 4.3 points, w/w, to an average of ws41 with corresponding TCEs on the TD1 route gaining $5,300/day to an average of ~$800/day. Triangulated Westbound trade earnings averaged ~$27,900/day – a 38% w/w gain.
To-date, some 29 December Middle East cargoes have been covered, leaving a further 13 as likely remaining for lifting through the first decade of the month. This compares with a position list showing 25 units available through the same period. Accordingly, tonnage remains sufficient which will likely limit further rate gains during the coming week, with Eastbound rates steadying in the low/mid ws60s and Westbound rates in the low ws40s.
In the Atlantic basin at least two West Africa-East fixtures were concluded on ballast units from the Middle East, implying that owners are keen to secure longer-haul voyages despite the slightly lower TCE returns relative to MEG-East voyages. Rates on the
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 28
SHIPPING MARKETS
Tanker Market - Weekly HighlightsWest Africa-East route gained an average of 3.5 points, w/w, to an average of ws60. Pressure on the route remains, but further gains are likely to be capped by the arrival of further ballast units from discharge areas in the West. With rates for Suezmaxes on trans-Atlantic voyages easing further to the ws70 level, VLCCs remained out of play on the route. Caribbean-East activity picked up with three such fixtures reported whilst rates on the route were steady at $4.15m.
Suezmax
The Atlantic Suezmax market was weaker this week as a decline in activity against an ample position list saw rates dip. Having commenced at ws77.5 on the benchmark TD5 route, by mid-week rates had corrected to the ws72.5 level. A pickup in activity thereafter prevented further losses. As owners are now more bullish and interest in the VLCC co-load alternative is limited due to stronger rates in the sector, the Suezmax market could see modest gains during the week ahead.
Aframax
The Caribbean Aframax market was more active this week, allowing for an extension of the rate gains realized late last week. Accordingly, the TD9 benchmark route rose 25 points to ws122.5. With the level of fresh inquiry subsiding by the end of the week and position lists sufficiently populated to absorb normal levels of inquiry, rates appear set to hold at the start of the week ahead.
Panamax
The Caribbean Panamax market saw rates slide this week on the back of an overall lack of activity and a growing tonnage list. The TD10D benchmark declined 5 points to conclude at ws137.5. Failing a significant pre-holiday rush, rates are expected to ease further during the week ahead.
CPP
The Caribbean MR market was active this week as charterers sought to cover requirements ahead of the shortened work-week which, in conjunction with usual delays at EC Mexico, saw rates experience upward pressure. Much activity was centered around USG exports, which allowed rates on the USG-TA route to hold at ws122.5 for most of the week before a late replacement was concluded at ws127.5. The TC3 benchmark saw a small 5 point drop to ws160. The expectation is that next week will see a robust start as charterers seek to cover remaining requirements, allowing the USG-TA and TC3 routes to post slight gains.
The European MR market was softer this week due to a lack of inquiry and an abundance of tonnage resulting from the number of units coming free from USG-TA voyages. Rates declined 12.5 points to conclude at ws145 on the TC2 benchmark route.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 29
SHIPPING MARKETS
Weekly Tanker Market OpinionContributed by
Poten & Partners, Inc.805 Third AvenueNew York, NY 10022
Phone: (212) 230-2000Website: www.poten.com
The Export GulfThe high price of imported crude oil and decreased domestic consumer demand seen over the course of this year has resulted in uncertain prospects for some US refiners. However, even as some have suffered, others have been able to shift their focus to foreign markets. This year has seen the United States emerge as a net exporter of finished petroleum products. US Gulf refiners have led this trend, accounting for 75% of American volumes shipped abroad. The most noticeable increases have been in distillate fuel oil exports. While much of these increased volumes are being sent to traditional European consumption centers, increased import requirements from countries economies closer to home have also served to draw barrels out of the US Gulf, and may continue to support product tanker demand in the Atlantic basin.
Finished petroleum product exports out of the US Gulf reached historic highs over 2011. According to the Energy Intelligence Agency (EIA), total export volumes reached over 1.9 mbd in the month of August, as seen in the chart below.
PADD III Exports 2000 to August 2011
14
16
18
20
22
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Tota
l US
Dem
and,
(mbd
)
-
0.5
1.0
1.5
2.0
2.5
PAD
D II
I Exp
orts
, (m
bd)
Gasoline Jet Fuel Distillate Fuel Oil
Residual Fuel Oil Total US Demand Total Product
Source: EIA/Poten
Distillate fuel oil exports, which include both heating oil and diesel, averaged almost 600 kbd over 2011 and reached almost 640 kbd in August of this year.
The US Energy Intelligence Agency (EIA) has projected that total US liquid fuels consumption will have fallen by 250 kbd year on year over 2011. However, worldwide demand continues to rise, and some refiners have been able to adjust their slates and export product to international markets.
With six weeks left in 2011, total refined petroleum product spot fixture volumes out of the US Gulf have reached nearly 21 million MT – or some 4.5 percent more than in all of 2010. About one third of these barrels were bound for markets in the UK Continent and Mediterranean, as seen in the chart below.
Reported CPP Spot Fixture Tonnage ex-US Gulf by Destination
UK Continent Mediterranean CaribbeanEC South America WC South America Other
Source: Poten
In addition to growth on the traditional TransAtlantic backhaul trade, both spot fixture data and information released by the EIA suggest that developing economies in South and Central America are also increasingly sourcing barrels from the US Gulf coast. Combined reported clean fixture volumes to the Caribbean and South America grew from 4.4 million MT in 2008 to almost 10 million MT 2011 year to date, reflecting an increase of over 120%.
As long as current refining market dynamics persist, higher volumes of US supplies are likely to continue being sent abroad in the form of finished products, particularly if Brazilian demand for American distillates remains high.
Additionally, restraints of US petroleum transportation infrastructure from US Gulf refiners to markets in the Northeastern United States plus the higher cost of Jones Act trade may mean that incremental barrels could be more economically sourced from foreign markets. This could certainly be expected if PADD I finds itself short heating oil upon the start of the winter. The confluence of continued strong product exports on the US Gulf coast and sudden weather-related import requirements to the US Atlantic coast is likely to result in firming product tanker freight rates in the Atlantic basin.
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 30
SHIPPING MARKETS
Weekly Freight Rate & Asset TrendsContributed by
IntermodalIntermodal Shipbrokers Co.17th km Ethniki Odos Athens-Lamia & 3 Agrambelis Street,145 64 N. Kifisia,Athens - Greece
Phone: +30 210 6293300Website: www.intermodal.gr
FREIGHT RATES
ASSET VALUES
WEEK46 - 2011
www.intermodal.gr Intermodal Shipbrokers - Capital Link - Dry Bulk Market Report “Week 46” – 21 NOV 2011 6
Tanker Spot Rates
Vessel Routes Week 46 Week 45
±% 2011 2010
WS points $/day WS
points $/day $/day $/day
VLC
C 265k AG-JAPAN 63 28,740 58 22,276 8% 17,459 41,620
Container Market - Weekly HighlightsC h a r t e r i n g
Vessel (Teu/Hmg) Index + / -510/285 Teu (gl) 15.5 k 4.11 ► 0.00700/440 Teu (gl) 17.5 k 4.85 ▼ 0.05
750/415 Teu (g) 16 k 5.25 ► 0.001000/650 Teu (g) 17.5 k 5.70 ▼ 0.051100/715 Teu (g) 19 k 6.67 ► 0.001350/925 Teu (g) 20 k 5.11 ▼ 0.13
1600/1150 Teu (gl) 18 k 6.36 ► 0.001700/1125 Teu (g) 19.5 k 5.67 ► 0.001740/1300 Teu (g) 20.5 k 6.05 ► 0.002000/1600 Teu (g) 21 k 2.31 ▼ 0.092500/1900 Teu (g) 22 k 4.21 ▼ 0.05
2800/2000 Teu (gl) 22 k 3.98 ▼ 0.073500/2500 Teu (gl) 23 k 2.51 ▼ 0.044250/2800 Teu (gl) 24 k 1.67 ► 0.00
Index ToTal 64.45 ▼0.47
This week has seen much of the same and our BOXi has slipped slightly, by 0.47 points.
4250-5500teu vessels continue to hover around the US$8,000 mark for six months though interestingly some recent negotiations would put a one year period at a 50pct premium.
The 2500-3500teu market is a little uneven, with rates highly dependent on position. Older ships are now beginning to head toward prospective hot layup and leaving the modern ships to compete for the market business. The mid-sizes around 1700teu in the Far East seem to be holding relatively steady for the moment. However, a weak Atlantic and Mediterranean market has meant a number of owners fixing breakbulk cargoes in the hope of better fortune east of Suez.
Pressure on the smaller feeders in Asia continues to build with the number of idle ships growing. Benchmark designs like CV1100s and B183 are now regularly fixing below US$6,000.
Rumours are also in the market that certain operators are again starting to push forward with plans to improve cash flow, with some looking for alternative payment schedules and others attempting to forward extend vessels on charter in return for a discount on hire starting immediately. While there is talk of some successful discussions this is not widespread by any means.
Whilst there are a few positives to be taken from recent economic data, like increases in retail sales in the U.S, overall the indications are that the majority of operators are already beginning to wind down their chartering activity for the year.
B R A E M A R S E A S C O P E C O N T A I N E R S
T H E M O N D A Y M O R N I N G C O N T A I N E R B R I E F I N G
M O N D A Y 2 1 S T N O V E M B E R 2 0 1 1
Every effort has been made to ensure the information contained within this report is accurate, but Braemar Seascope Containers can accept no responsibility for any error, omission or consequence therefrom.
BRAEMAR SEASCOPE CONTAINERS - LONDON – SINGAPORE – SHANGHAI
S & P : - c o n t a i n e r s @ b r a e m a r s e a s c o p e . c o m C H A R T E R I N G : - t e u @ b r a e m a r s e a s c o p e . c o m
LONDON - CHARTERING: PHIL WOODINGTON, GRAHAM BOOTH, BEN JEANS, RANULF SWALLOW S&P: PEYTON BROER, SEBASTIAN DAVENPORT-THOMAS, JEREMY DAVIES, BILL PRICE
SINGAPORE - JAMES BUCK, ROY EDKINS SHANGHAI - AXEL HUANG RESEARCH - JONATHAN ROACH
WWW.BRAEMARSEASCOPE.COM
C H A R T E R I N G
VESSEL (TEU/HMG) INDEX + / - 510/285 TEU (GL) 15.5 K 4.11 ► 0.00 700/440 TEU (GL) 17.5 K 4.85 ▼ 0.05
750/415 TEU (G) 16 K 5.25 ► 0.00 1000/650 TEU (G) 17.5 K 5.70 ▼ 0.05 1100/715 TEU (G) 19 K 6.67 ► 0.00 1350/925 TEU (G) 20 K 5.11 ▼ 0.13
1600/1150 TEU (GL) 18 K 6.36 ► 0.00 1700/1125 TEU (G) 19.5 K 5.67 ► 0.00 1740/1300 TEU (G) 20.5 K 6.05 ► 0.00 2000/1600 TEU (G) 21 K 2.31 ▼ 0.09 2500/1900 TEU (G) 22 K 4.21 ▼ 0.05
2800/2000 TEU (GL) 22 K 3.98 ▼ 0.07 3500/2500 TEU (GL) 23 K 2.51 ▼ 0.04 4250/2800 TEU (GL) 24 K 1.67 ► 0.00
INDEX TOTAL 64.45 ▼0.47 This week has seen much of the same and our BOXi has slipped slightly, by 0.47 points. 4250-5500teu vessels continue to hover around the US$8,000 mark for six months though interestingly some recent negotiations would put a one year period at a 50pct premium. The 2500-3500teu market is a little uneven, with rates highly dependent on position. Older ships are now beginning to head toward prospective hot layup and leaving the modern ships to compete for the market business. The mid-sizes around 1700teu in the Far East seem to be holding relatively steady for the moment. However, a weak Atlantic and Mediterranean market has meant a number of owners fixing breakbulk cargoes in the hope of better fortune east of Suez. Pressure on the smaller feeders in Asia continues to build with the number of idle ships growing. Benchmark designs
like CV1100s and B183 are now regularly fixing below US$6,000. Rumours are also in the market that certain operators are again starting to push forward with plans to improve cash flow, with some looking for alternative payment schedules and others attempting to forward extend vessels on charter in return for a discount on hire starting immediately. While there is talk of some successful discussions this is not widespread by any means. Whilst there are a few positives to be taken from recent economic data, like increases in retail sales in the U.S, overall the indications are that the majority of operators are already beginning to wind down their chartering activity for the year.
The Box Index (BOXi)
30507090
110130150170
Dec
09
Mar
10
Jun
10
Sep
10
Dec
10
Mar
11
Jun
11
Sep
11
Dec
11
R E P R E S E N T A T I V E F I X T U R E S
NAME DWT TEU 14T BLT SPD CONS GR CHARTERER DELY DATE PERIOD RATE $
RIO BRAVO 80,115 5,905 4,816 09 22 125 GL EVERGREEN NE Asia Nov 11 30 days 8,300
MORANTO 53,500 4,380 2,850 09 24 142 GL MAERSK SE Asia Nov 11 6 mos 8,000
ST CERGUE 39,429 2,824 2,020 06 24 95 GL MAERSK Med Dec 11 9 mos 8,500
EM CORFU 34,717 2,532 1,850 01 21 87 G MAERSK UKC Nov 11 4-6 mos 8,500
ESTEBROKER 34,015 2,468 1,870 99 22 74 G MSC USG Nov 11 5 mos 7,000
ISOLDE 32,917 2,452 1,886 00 22 75 G MAERSK Med Nov 11 2-3 mos 9,100
OS MARMARIS 23,579 1,740 1,290 10 20.6 62.5 G CMA CGM NE Asia Nov 11 3 mos 7,750
DS ACTIVITY 13,760 1,118 700 08 19 41.5 GL SINOKOR NE Asia Dec 11 3-6 mos 5,400
DS ABILITY 13,760 1,080 710 07 19 41 GL K LINE NE Asia Nov 11 6 mos 6,200
ENDEAVOUR 12,700 1,020 660 86 17.5 30 G MCC NE Asia Nov 11 3-6 mos 5,350
MAGELLAN PLANET 7,970 735 400 02 18 32 GL CK LINE NE Asia Nov 11 1 mos 5,000
▼ 64.45
R e p R e s e n T a T I V e F I x T u R e s
name dwT Teu 14T BlT spd Cons gR CHaRTeReR dely daTe peRIod RaTe $
RIo BRaVo 80,115 5,905 4,816 09 22 125 GL eVeRgReen NE Asia Nov 11 30 days 8,300moRanTo 53,500 4,380 2,850 09 24 142 GL maeRsk SE Asia Nov 11 6 mos 8,000
sT CeRgue 39,429 2,824 2,020 06 24 95 GL maeRsk Med Dec 11 9 mos 8,500em CoRFu 34,717 2,532 1,850 01 21 87 G maeRsk UKC Nov 11 4-6 mos 8,500
esTeBRokeR 34,015 2,468 1,870 99 22 74 G msC USG Nov 11 5 mos 7,000Isolde 32,917 2,452 1,886 00 22 75 G maeRsk Med Nov 11 2-3 mos 9,100
os maRmaRIs 23,579 1,740 1,290 10 20.6 62.5 G Cma Cgm NE Asia Nov 11 3 mos 7,750ds aCTIVITy 13,760 1,118 700 08 19 41.5 GL sInokoR NE Asia Dec 11 3-6 mos 5,400ds aBIlITy 13,760 1,080 710 07 19 41 GL k lIne NE Asia Nov 11 6 mos 6,200endeaVouR 12,700 1,020 660 86 17.5 30 G mCC NE Asia Nov 11 3-6 mos 5,350
magellan planeT 7,970 735 400 02 18 32 GL Ck lIne NE Asia Nov 11 1 mos 5,000
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 32
SHIPPING MARKETS
Contributed by
Golden Destiny S.A. Golden Destiny S.A.57 Akti Miaouli, Piraeus, 18536,Greece
For second consecutive week, the secondhand buying momentum is on the frontline with newbuilding and demolition transactions floating at record low yearly levels. The highest activity has been recorded in the secondhand market with 22 S&P transactions reported worldwide, while the newbuilding business is down by 27.2% in comparison with the buying momentum in the secondhand market and the demolition activity is standing 77% lower than the volume of S&P activity.
The week closed with 27 transactions reported worldwide in the secondhand and demolition market, up by 35% from previous week and down by 35.7% from a similar week in 2010, when 42 transactions had been reported and secondhand ship purchasing activity was 25% higher than the ordering business.
SECONDHAND MARKET
The buying interest for secondhand modern and vintage units keeps very robust amid economic turmoil as asset prices are appealing low and investors seem to not loose the buying opportunities that emerge in the dry and wet segment. Bulk carriers and tankers have monopolized buyers’ appetite with bulk carriers of all sizes and ages being on the spotlight and MR tanker units being of high interest. Bulk carriers and tankers have attracted the lion share by holding 36% and 41% respectively of this week’s total volume of S&P activity. Notable deal of the weak has been the container market, the en-bloc sale of two large panamax size units of 5,872 TEU built 2004 Korea reported sold on subjects for $45 mil each, including 5 years time charter back at $25,000/day. In the wet
market, the industry experienced one more disposal in the VLCC segment, M/T “EAGLE VALENCIA” of 306,999dwt built 2005 South Korea at a price region of $53 mil on subjects. In the bulk carrier segment, two kamsarmax resales reported to have gone to Greek hands at a price region $32-$33 mil.
Overall, 22 vessels reported to have changed hands this week at a total invested capital in the region of US$ 376,75 mil, one transaction reported at an undisclosed sale price. In terms of the reported number of transactions, the S&P activity is up by 22.7% from last week’s activity, and down by 37% comparable with previous year’s weekly S&P activity when 35 vessels induced buyers’ interest with bulk carriers and tankers grasping 54% and 20% share respectively of the total volume of S&P activity. In terms of invested capital, tankers appear as the most overweight segment by attracting about 44.6% of the total amount of money invested and bulk carriers to follow with 27.7%.
NEWBUILDING MARKET
Vessel Type Units in DWT Invested Capital P&C %w-o-w Bulkcarriers 3 276.000 103.000.000 0 -50%
Key:/ * The total invested capital does not include deals reported with undisclosed contract price ** Deals reported as private and confidential (not revealed contract price)
For second consecutive week, no business has been revealed in the tanker and container vessels segments, with special projects grasping 69% of the total volume of ordering activity. In the bulk carrier segment, some activity has been revealed in the handysize segment by an undisclosed owner in a Korean yard, while a notable order has been reported in the capesize segment by a Singapore player, The-Hu, in a Chinese yard at a price region $53 mil with delivery in 2013. The significant slowdown of newbuilding business, during the last two weeks, gives positive signals in the already
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 33
SHIPPING MARKETS
S&P Secondhand, Newbuilding & Demolition Marketsdistressed vessels’ supply picture and brings renewed hopes that the market uncertainty seems to have refrained significantly the ordering momentum.
Overall, the week closed with 16 fresh orders reported worldwide at a total deadweight of 285,000 tons, posting a 100 % week-on-week rise, while is down by 79% from similar week’s closing in 2010, when 28 vessels had been reported worldwide at a total deadweight of 1,228,200 tons. Bulk carriers are holding only 18.7% of this week’s newbuilding business compared with a 39% share a year ago. The total amount invested for newbuilding units is difficult to be estimated as 69% of this week’s newbuilding business has been reported at an undisclosed contract price. The amount invested in the bulk carrier segment is region $103mil, when last week was $144 mil for six newbuilding orders.
DEMOLITION MARKET
In the demolition market, the scrapping momentum remains subdued with price levels still floating below $500/ldt for dry /general cargo and Bangladesh being out of the scene. Pakistan and India are competing at the same levels offered with India winning every week the lion share of the activity, while Chinese scrap buyers are offering very low levels to bridge the gab with the Indian Subcontinent region, $350/ldt for dry/general and $375/ldt for wet cargo. In Bangladesh, the court hearing for the market extension failed to take place on November 13th and the shipbreaking nation now expects the new outcome of the hearing that would take place on November 20th. Bulk carriers have lost their strength as popular scrap candidates with only three units reported to have been headed to the scrap yards of India this week, while the scrapping momentum for wet units remains poor even demo countries are still offering quite firm levels $500/ldt.
The week ended with 5 vessels reported to have been headed to the scrap yards of total deadweight 149,554 tons with some scrapping activity revealed in the bulk carrier and tanker segment. In terms of the reported number of transactions, the demolition activity has been marked with 67% increase from previous weekly levels and 230% rise in the total deadweight sent for scrap. In terms of scrap rates, the highest scrap has been achieved this week for an en-bloc scrap deal in the tanker segment for two small/handysize units of about 13,000 dwt built 1982 with 3,891ldt achieved $726/ldt for India including 250 tons stainless steel and 100 tons cladded. India remains in the frontline by grasping this 80% of this week’s total demolition activity. At a similar week in 2010, demolition activity was up by 40% from the current levels, in terms of the reported number of transactions, 7 vessels had been reported for scrap of total deadweight 122,630 tons with bulk carriers and tankers holding 57% of the total demolition activity. India and Pakistan had been offering $425-430/ldt for dry and $455-$465/ldt for wet cargo, while Bangladesh market had been inactive from the demolition scene.
GREEK PRESENCEGreek investors showed a strong presence this week in the secondhand market with 2 purchases in the bulk carrier segment for two kamsarmax and one panamax, 1 MR unit in the tanker segment and one en-bloc deal of two large panamax container units. Their total amount of money invested for secondhand units is estimated to be at region of $193,25 mil, while in the newbuilding market no business has been revealed.
NEWBUILDING MARKET – ORDERS
DRY BULK CARRIERS –206,000 DWT 1 unit ordered by The- Hu (SPORE) at Shanghai Waiqaoqiao Shipbuidling (PRC) Price USD $ 53 mil. Dely 2013 (rumoured to have option for one more) 35,000 DWT 2 units ordered by Undisclosed at Daesun (SKR) Price believed to be in the region of $ 25 mil. Dely within 2013 (eco design)
RO-RO –2 RO-PAX units ordered by Caledonian MacBrayne (UK) at Ferguson SB. (UK) Price undisclosed. Dely within 6/2013-12/2013 (150 pax, 23 cars & two lorries. Scottish Isles service)
SPECIAL PROJECTS –3,300 DWT (Platform supply) 2 units ordered by Damen Shipyards (NTH) at Damen Galatz (ROM) Price undisclosed. Dely 1-3/2013 (New design PSV 3300 E3 and first vessels ordered on a speculative basis for resale. The new supply vessels will span 1,500-6,500 dwt, 700sqm deck space) 2,400 DWT (Dredger) 1 unit ordered by Taiwan Goverment (TWN) at Ching Fu (TWN) Price undisclosed. Dely 2013 (Design contract awared to FKAB Marine, Sweden. 2,400cum capacity. Dual class BV & CSR. FKAB will deliver drawings and the vessel will be owned and operated by the Ministry of Transportation and Communications Kaohsiung Harbor Board. FKAB has also subcontracted Holland MT to review the concept design and provide the complete design package to the shipyard) Platform supply vessels 8 units ordered by Basic Offshore Pte (SPORE) at Guangzhou Huangpu Shipbuilding (PRC) Price undisclosed. Dely 2013 (Havyard 832L SEtype. LOA 84m – BEAM 17.6m – HULL DEPTH 7.7m)
Key: SPORE: Singapore, PRC: China, SKR: South Korea, UK: United Kingdom, NTH: Netherlands, TWN: Taiwan, Dely: Delivery
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 34
SHIPPING MARKETS
Forward Freight Agreements - FFAsDRYBULKDATE SECTOR VESSEL ROUTE PERIOD FROM TO RATE
18-Nov-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. Y Cal 12 1-Jan-12 31-Dec-12 92.48
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 36
EVENTS
Conference Call Calendar
Exchange Ticker Sector Results Conference Call
Company Date Time Date Time (EST)
Globus Maritime Limited NASDAQ GLBS Drybulk
Mon., November 21,
2011BMO Mon., November
21, 2011 09:00 AM
Diana Containerships
Inc.NASDAQ DCIX Containers
Tue., November 22,
2011BMO Tue., November
22, 2011 09:00 AM
Diana Shipping NYSE DSX DrybulkWed.,
November 23, 2011
BMO Wed., November 23, 2011 09:00 AM
Monday, November 21, 2011 (Week 46)Capital Link Shipping Weekly Markets Report
Page 37
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