MONTHLY MARKET OVERVIEW1st — 30th September 2017
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SUMMARY OF CONTENT
• Value analysis
• Total second hand S&P activity
• Newbuilding activity
• Demolition activity
• Charter rate analysis
180k
180k
180k
180k
180k
180k
180k
180k
180k
180k
180k
180k
180k
180k
175k
175k
80k
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75k
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75k
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75k
60k
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60k
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60k
60k
55k
55k
55k
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50k
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30k
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30k
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30k
CAPE PMAX SUPRAYEAR
OF BUILD HANDY
DWT DWT DWT DWT
2017
2016
2010
2011
2012
2013
2014
2015
2002
2003
2004
2005
2006
2007
2008
2009
+1.3%
+2.2%
+2.8%
+3.1%
+3.1%
+2.8%
+2.4%
+1.8%
+1.3%
+0.7%
+0.3%
+0.1%
+0.2%
+0.7%
+1.9%
+3.2%
+1.5%
+1.5%
+1.6%
+1.7%
+1.8%
+1.9%
+2.0%
+2.1%
+2.2%
+2.4%
+1.7%
+1.9%
+2.0%
+2.1%
+2.3%
+2.3%
+1.5%
+1.6%
+1.8%
+2.0%
+2.2%
+2.4%
+2.5%
+2.4%
+2.6%
+2.8%
+3.1%
+3.2%
+3.3%
+3.6%
+2.6%
+2.7%
+0.1%
+0.0%
+0.0%
+0.0%
+0.0%
+0.2%
+0.3%
+0.3%
+0.1%
+0.0%
+0.0%
+0.2%
+0.3%
+0.5%
+0.6%
+0.6%
BULKER VALUES THROUGH SEPTEMBER 2017
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BULKERS Bulker values have firmed for all vessel types.
This table shows the monthly % change in value from 1st to the 30th September 2017for Bulker vessels, by year of build.
BULKER VALUES THROUGH SEPTEMBER 2017
Panamax Values have firmed this month.
13 sales have taken place this month.
United Liberty (81,800 DWT, Mar 2015, Tsuneishi Zosen) sold for USD 24.85 mil to JP
Morgan, VV value USD 24.16 mil.
Atlantic Moon (82,100 DWT, Mar 2012, Tadotsu Tsuneishi) sold to Songa Bulk for USD 20.5
mil, VV value USD 20.12 mil.
The Ocean Antwerp (76,600 DWT, Sep 2007, Imabari) sold by Grace Ocean for USD 14 mil,
VV value USD 13.56 mil. Earlier on in the month Ocean Sakura (76,600 DWT, Aug 2007,
Imabari) was also sold by Grace Ocean for USD 13.7 mil, VV value USD 13.28 mil.
In older tonnage Maria Theo (74,400 DWT, Jul 2000, Sasebo) sold for USD 7.7 mil, VV value
USD 7.46 mil.
Supramax Values have firmed this month.
23 sales have taken place.
An en bloc deal of 6 Ultramaxs’ Golden Libra, Virgo (63,700 DWT, Jan 2017, Chengxi), Leo (63,700
DWT, Sep 2016, Chengxi), Taurus, Gemini and Aries (63,600 DWT, May, Mar and Feb 2015, Chengxi)
all sold in an en bloc deal to Scorpio Bulkers for USD 142.5 on private terms.
Santa Phoenix (56,000 DWT, Jun 2006, Mitsui Ichihara) sold for USD 12 mil, VV value USD 11.25 mil.
In older tonnage Worldera 2 (48,900 DWT, Oct 2001, IHI) sold for uSD 7.7 mil, VV value USD 6.93 mil.
Handy Values remained stable with a small firming in older tonnage.
14 sales have taken place this month.
Hull 396 (37,700 DWT, Dec 2017, Avic Weihai) sold for USD 16.9 mil, VV value 15.95 mil.
Sea Melody (34,500 DWT, Nov 2010, SPP) sold for USD 10.5 mil, VV value USD 11.26 mil.
Zenith Explorer (28,300 DWT, Aug 2008, Imabari) sold for 8 mil, VV value 7.79 mil.
Capesize Values have firmed this month.
9 sales have been confirmed this month.
Chevrier & Cartigny (182,000 DWT, Jan & Jun 2016, Japan Maritime United) sold to JP
Morgan for USD 45.5 mil each including a 3 yr TCB at USD 17,000 /day.
True Frontier (179,300 DWT, May 2010, Hyundai Samho) sold for USD 29.75 mil, VV value
USD 28.85 mil.
Chambesy (171,100 DWT, Jan 2004, HHI) and Carouge (177,300 DWT, Jul 2003, Namura)
sold en bloc for USD 30 mil, VV value USD 28.59 mil.
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TANKER VALUES THROUGH SEPTEMBER 2017
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All values have remained stable this month with a slight softening inolder Aframax values.
This table shows the monthly % change in value from 1st to the 30th September 2017for Tanker vessels, by year of build.
TANKERS
320k
320k
320k
320k
320k
310k
310k
310k
310k
310k
310k
310k
310k
305k
305k
305k
160k
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160k
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160k
160k
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160k
155k
155k
155k
75k
75k
75k
75k
75k
75k
75k
75k
75k
75k
75k
70k
70k
70k
70k
70k
50k
50k
50k
50k
50k
50k
50k
50k
50k
50k
50k
45k
45k
45k
45k
45k
110k
110k
110k
110k
110k
110k
110k
110k
110k
110k
110k
110k
110k
105k
105k
105k
+0.3%
+0.2%
+0.2%
+0.1%
+0.0%
+0.0%
-0.1%
-0.1%
-0.1%
-0.2%
-0.2%
-0.3%
-0.2%
-0.3%
-0.3%
-0.3%
-0.2%
-0.3%
-0.3%
-0.4%
-0.5%
-0.6%
-0.6%
-0.7%
-0.8%
-0.8%
-0.9%
-0.9%
-1.0%
-1.0%
-1.0%
-1.1%
-0.3%
-0.4%
-0.5%
-0.6%
-0.8%
-1.0%
-1.3%
-1.7%
-2.1%
-2.6%
-3.2%
-3.8%
-4.6%
-5.4%
-6.2%
-6.9%
+0.2%
+0.1%
-0.0%
-0.1%
-0.3%
-0.5%
-0.9%
-1.2%
-1.6%
-2.2%
-2.8%
-3.3%
-4.0%
-4.7%
-5.6%
-6.4%
+0.7%
+0.7%
+0.6%
+0.5%
+0.3%
+0.2%
+0.0%
-0.2%
-0.4%
-0.6%
-0.8%
-1.1%
-1.3%
-1.6%
-1.8%
-2.0%
YEAROF BUILD VLCC SUEZ AFRA LR1 MR
DWT DWT DWT DWT DWT
2017
2016
2010
2011
2012
2013
2014
2015
2002
2003
2004
2005
2006
2007
2008
2009
TANKER VALUES THROUGH SEPTEMBER 2017
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VLCC Values have remained stable this month.
1 sale has been concluded this month.
Isuzugawa (300,000 DWT, Jan 2004, Universal) sold for USD 25.8 mil, VV value USD 26.06 mil.
Suezmax Values have remained stable this month.
There has been 1 Suezmax Shuttle Tanker sold this month.
Aframax Values have softened for older tonnage.
2 sales have taken place.
Neptune Voyager (104,900 DWT, Apr 2003, Samsung) sold to Spring Marine Management
for USD 10.2 mil, VV value USD 10.93 mil.
Stellar Voyager (104,800 DWT, Jul 2003, Samsung) sold to New Shipping for USD 9.5 mil, VV
value USD 11.41 mil.
LR1 Values have softened in older tonnage.
An en bloc deal of the Mare Atlantic and Mare Pacific (68,5000 DWT, Feb & Jan 2001, Koyo
Dock) sold for USD 11.3 mil, VV value USD 13.56 mil.
MR Values have firmed a small amount for modern tonnage and softened for older tonnage.
10 sales have taken place this month.
An en bloc deal of 5 STI MR2 vessels have been sold including a 7yr BBB. STI Onyx, Garnet
and Ruby (Sep 2012), STI Topaz (Aug 2012), STI Amber (Jul 2012) (52,000 DWT, Hyundai Mipo),
were all bought by Bank of Communications for USD 137.5 mil, VV value USD 132.63 mil.
Atlantic Diana and Atlantic Blue (47,100 DWT, Nov & Jul 2007, Hyundai Mipo) sold in an en
bloc deal for USD 32 mil, VV value USD 32.17 mil.
In older tonnage FD Sea Wish (40,000 DWT, Sep 2002, SLS) sold for USD 7.5 mil, VV value
USD 8.82 mil.
CONTAINER VALUES THROUGH SEPTEMBER 2017
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CONTAINERS Container values have been variable this month. Modern Panamax valueshave softened whilst older Feedermax values have softened.
This table shows the monthly % change in value from 1st to the 30th September 2017for Container vessels, by year of build.
2017
2016
2010
2011
2012
2013
2014
2015
2002
2003
2004
2005
2006
2007
2008
2009
7000
7000
7000
7000
7000
7000
7000
7000
7000
7000
7000
7000
7000
7000
6500
6500
4250
4250
4250
4250
4250
4250
4250
4250
4250
4250
4250
4250
4250
4250
4000
4000
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1750
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
1100
YEAROF BUILD POST PMAX PMAX HANDY FMAX
TEU TEU TEU TEU
-0.6%
-0.7%
-0.8%
-1.0%
-1.1%
-1.2%
-1.3%
-1.4%
-1.6%
-1.7%
-1.8%
-2.0%
-2.0%
+1.4%
+1.4%
+1.4%
-2.3%
-2.5%
-2.5%
-2.6%
-2.8%
-2.9%
-3.0%
-3.1%
-3.3%
-3.4%
+1.4%
+1.4%
+1.4%
+1.4%
+1.3%
+1.3%
+0.4%
+0.3%
+0.2%
+0.1%
+0.0%
-0.1%
-0.1%
-0.2%
-0.2%
-0.3%
-0.3%
+4.3%
+3.6%
+3.0%
+2.6%
+1.8%
+0.4%
+0.4%
+0.3%
+0.2%
+0.1%
+0.0%
-0.1%
-0.3%
-0.4%
-0.4%
-0.6%
-3.0%
-4.7%
-6.0%
-8.0%
-9.5%
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CONTAINER VALUES THROUGH SEPTEMBER 2017
Post PMax Values have remained relatively stable this month.
There have been no Post Panamax sales this month.
A firming in older tonnage is due to scrap rates firming.
Panamax Values have softened for mid age tonnage.
2 sales have taken place this month.
CPO Savannah (4,255 TEU, Aug 2009, HHI) sold for USD 10.4 mil, VV value USD 10.68 mil.
Kaethe P (5,040 TEU, Nov 2006, HHI) was bought by MPC Container Ships for USD 9.5 mil, VV
value USD 9.96 mil.
Handy Values have remained stable this month.
2 Handy and 5 Sub Panamax sales have taken place this month.
Wehr Havel (2,524 TEU, Sep 2002, Kvaerner) sold for USD 5.3 mil, VV value USD 5.76 mil.
Feedermax Values have remained stable this month.
1 sale have been confirmed this month.
Suzanne (841 TEU, Oct 1994, Miho Zosensho) sold for USD 2 mil, VV value 1.89 mil.
LPG VALUES THROUGH SEPTEMBER 2017
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LPG LPG values have remained stable across all vessel types.
This table shows the monthly % change in value from 1st to the 30th September 2017for LPG vessels, by year of build.
2017
2016
2010
2011
2012
2013
2014
2015
2002
2003
2004
2005
2006
2007
2008
2009
84k
84k
84k
84k
82k
82k
82k
82k
82k
82k
82k
82k
78k
78k
78k
78k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
60k
57k
38k
38k
38k
38k
35k
35k
35k
35k
35k
35k
35k
35k
35k
35k
35k
35k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
20k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
6.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
3.5k
12k
12k
12k
12k
9k
9k
9k
9k
9k
8k
8k
8k
8k
8k
8k
12k
YEAROF BUILD VLGC LGC MGC
SP FRLARGE
SP FRSMALL
FULLPRESS LEG
CBM CBM CBM CBM CBM CBM CBM
+0.8%
+0.5%
+0.1%
+0.6%
-1.0%
-0.7%
-1.0%
-0.0%
-0.0%
-0.6%
-1.3%
-1.2%
-1.3%
-1.4%
-1.5%
-1.6%
+1.3%
+0.9%
+0.5%
+0.6%
+0.6%
+0.1%
-0.8%
-0.0%
-0.0%
-0.2%
-0.9%
-1.6%
-1.6%
-2.1%
-1.8%
-1.5%
-1.5%
-1.5%
-1.5%
-1.6%
-1.6%
-1.6%
-1.6%
-1.6%
-1.6%
-1.7%
-1.7%
-0.8%
-1.6%
-1.7%
-1.8%
-1.9%
-3.9%
-3.9%
-3.8%
-3.6%
-3.3%
-3.0%
-2.6%
-2.2%
-1.7%
-1.2%
-0.7%
-0.3%
+0.1%
+0.4%
+0.6%
+0.7%
-3.5%
-3.5%
-3.4%
-3.2%
-3.0%
-2.6%
-2.2%
-1.8%
-1.4%
-0.8%
-0.4%
+0.1%
+0.5%
+0.8%
+1.0%
+1.0%
-1.5%
-1.5%
-1.4%
-1.6%
-1.5%
-1.6%
-1.6%
-1.7%
-1.8%
-1.7%
-1.7%
+0.2%
+0.6%
+0.9%
+1.2%
+1.0%
-1.4%
-1.5%
-1.5%
-1.5%
-1.6%
-1.6%
-1.6%
-1.7%
-1.7%
-1.7%
-1.7%
+0.0%
+0.5%
+0.7%
+1.0%
+1.0%
SPFR Values have remained stable this month.
No sales have been concluded this month.
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LPG VALUES THROUGH SEPTEMBER 2017
VLGC Values have remained stable this month.
One MGC vessel has been sold for an undisclosed sale price, Gas Columbia (35,420
CBM, Jul 1997, Mitsubishi HI).
FullyPressurised
Values have softened this month.
No sales have been concluded this month.
2ND HAND S&P ACTIVITY SEPTEMBER 2017
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Total value of sales is up 29% from September 2017 compared to September 2016.
Bulker, Tanker, Gas and OSV sale values are considerably higher for September 2017
compared to September 2016.
Container sale prices are down 82% for September 2017 compared to September 2016.
A large LNG vessel Solaris (155,000 CBM, Jun 2014, Samsung) has been sold for USD 186 mil.
Total sales by number count are 20% lower for September 2017 at a total of 97
compared to a total of 117 sales for September 2016.
Bulker sales are down by only 4 sales for September 2017 compared to September 2016.
Container sales are down 50% for September 2017 compared to September 2016, with
the majority of tonnage sold having a smaller TEU.
Overall, no. of sales this September for all ship types are lower than last September.
No
. Ves
sels
Sep 2016
Sep 2017
Number of 2nd hand sales taken place in September 2017 vs September 2016.S&P No.
Bulker Tanker Container Gas OSV
59
1812
26
63
19 18
2
15
0
10
20
30
40
50
60
70
Val
ue
(M U
SD
)
Sep 2016
Sep 2017
Value of 2nd hand sales in September 2017 vs September 2016.S&P $
Bulker Tanker Container Gas OSV
$842
$467
$253
$186
$562
$212
$460
$18 $11$24
0
200
400
100
300
500
600
900
800
700
Overall the total number of NB orders from September 2016 to September 2017 is
considerably higher for Tankers compared to other vessel types.
The highest number of NB for Bulkers took place in Q3 2017 with 126 orders placed.
Overall Tanker NB orders are highest out of all ship types, Q2 2017 saw 104 NB orders
placed and only 55 in Q3 this year.
For Gas Q3 saw 4 Large LNG orders placed by MOL and 8 VLGC LPG orders placed by Vitol,
the highest amount in a quarter since the 1st September 2016.
No
. Ves
sels
on
ord
er
Total number of newbuild orders from 1st September 2016 to 30th September 2017.NewbuildingTotal No.
Bulker Tanker Container Gas OSV
204
294
6540
11
0
100
50
150
200
250
300
350
NEWBUILDING ACTIVITY SEPTEMBER 2017 VS 2016
Number of newbuilding orders taken place in September 2017 vs September 2016.NewbuildingNo.
No
. New
Bu
ildin
gs
Sep 2016
Sep 2017
Bulker Tanker Container Gas OSV
34
15
0
20
4
9
18
6
20
0
5
10
15
20
25
40
30
35
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Overall trend this month has been for larger tonnage across all sectors.
34 Bulker NB orders have been placed for September 2017. A total of 14 Capesize, 10 of which are Ore
Carriers ordered by Polaris Shipping (325,000 DWT, 2021, Hyundai Heavy Ind) for USD 80 mil each.
20 Panamax vessels have been ordered with 10 by Nissen Kaiun (82,000 DWT, 2020, Imabari &
Tsuneishi Zosen) for USD 27 mil each.
14 of the 15 NB Tanker orders this month are VLCC’s. 10 ordered by HMM (300,000 DWT, 2019,
Daewoo) for an en bloc price of USD 835 mil.
MSC ordered 11 ULCV’s (22,000 TEU, 2018 & 2019, Daewoo & Samsung) for an undisclosed price.
A firming in demolition price USD/LDT was seen over the summer months.
However, the end of September saw a slight softening in rates which is expected to
carry on into the beginning half of October.
Tanker scrap price
Demolition price trend for Tanker Price India from September 2016 - September 2017. DemolitionTrend
250
290
270
350
330
310
410
390
370
430
Aug 2017May 2016Feb 2016Nov 2016
DEMOLITION ACTIVITY SEPTEMBER 2017 VS 2016
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Number of demolition sales per ship type, taken place in September 2017 vs September 2016.DemolitionNo.
No
. Dem
o s
ales
Sep 2016
Sep 2017
Total demolition sales are lower for September 2017 compared to September 2016.
Sentiment remained positive throughout the majority of September up until the last
week where a slight fall in rates started to take place.
Capesize Bulkers scrapped at Pakistan have fetched high prices, due to Pakistan being
closed to Tankers.
2 VLCC vessels have been scrapped this September along with various other larger
tonnage, with main deliveries being Bangladesh for Tankers.
0
5
10
15
20
25
Bulker Tanker Container Gas OSV
12
8
12
2 2
14
3
20
34
Baltic Exchange daily market spot rates for Capesize, Panamax, Supramax andHandy Bulkers from 1st September 2016 - 30th September 2017. Source: Baltic Exchange
(US
D p
er d
ay)
Dry
Continued over supply in the VLCC sector shows a negative market sentiment mid
September putting owners under pressure with a substantial amount of tonnage available
for September. However rates have firmed towards the end of the month in the VLCC sector.
Suezmax rates softened mid September to USD 6,112/day, increasing to USD 10,830/day at
the end of the month.
Aframax rates began to soften towards the end of the month.
Capesize rates have fluctuated this month however have stayed high. Rates reached
levels of USD 21,386/day, the highest number we have seen all year.
Panamax bulkers this month have been slow with a lack of fresh cargo, confirmed by
softening rates towards the end of the month.
Supramax and Handysize rates have also seen reduced activity however rates stayed
stable throughout September.
CapesizePanamaxSupramaxHandy
0
5,000
10,000
15,000
20,000
25,000
CHARTER RATES
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Baltic Exchange daily market spot rates for VLCC, Suezmax and Aframax Tankersfrom 1st September 2016 - 30th September 2017. Source: Baltic Exchange
(US
D p
er d
ay)
Wet
0
10,000
20,000
30,000
40,000
50,000
60,000
Aug 2017May 2016Feb 2016Nov 2016
VLCCSuezmaxAframax
Aug 2017May 2016Feb 2016Nov 2016
Aug 2017May 2016Feb 2016Nov 2016
Aug 2017May 2016Feb 2016Nov 2016
Contex daily time charter rates for Panamax, Handysize and Feedermax Containersfrom 1st September 2016 - 30th September 2017. Source: Contex, VHSS
(US
D p
er d
ay)
Container
VLGC rates have remained stable this month with little variation in rates. Very few fixtures have
taken place this month with a quiet market.
MGC and LEG rates remain stable throughout September, with MGC rates now dropping
below LEG to USD 420,000/month.
Panamax rates have begun to soften again over the past few months.
Handy and Feedermax rates have remained stable throughout the month with a slight
firming in value.
PanamaxHandyFeedermax
4,000
8,000
10,000
6,000
2,000
12,000
CHARTER RATES
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0
Fearnleys weekly market spot rates for VLGC, MGC and LEG Gas shipsfrom 1st September 2016 - 30th September 2017. Source: Fearnleys
(Th
ou
san
d U
SD
per
mo
nth
)
LPG
VLGCMGCLEG
100
200
300
400
500
600
700
800
900
0
