This document is a weekly shipping intelligence report published by Clarkson Research Services. It provides key information on vessel charter rates, asset prices, freight indices and futures, gas and chemical shipping markets, liner and offshore markets, secondhand vessel prices, and recent ship sales. The report's analysis section examines competition in the global LNG trade and notes long-term trends remain dynamic. Spot earnings for crude tankers declined this week with rates falling on several benchmark routes, while the product tanker market saw mixed movements.
This document is a weekly shipping intelligence report published by Clarkson Research Services. It provides key information on vessel charter rates, asset prices, freight indices and futures, gas and chemical shipping markets, liner and offshore markets, secondhand vessel prices, and recent ship sales. The report's analysis section examines competition in the global LNG trade and notes long-term trends remain dynamic. Spot earnings for crude tankers declined this week with rates falling on several benchmark routes, while the product tanker market saw mixed movements.
This document is a weekly shipping intelligence report published by Clarkson Research Services. It provides key information on vessel charter rates, asset prices, freight indices and futures, gas and chemical shipping markets, liner and offshore markets, secondhand vessel prices, and recent ship sales. The report's analysis section examines competition in the global LNG trade and notes long-term trends remain dynamic. Spot earnings for crude tankers declined this week with rates falling on several benchmark routes, while the product tanker market saw mixed movements.
This document is a weekly shipping intelligence report published by Clarkson Research Services. It provides key information on vessel charter rates, asset prices, freight indices and futures, gas and chemical shipping markets, liner and offshore markets, secondhand vessel prices, and recent ship sales. The report's analysis section examines competition in the global LNG trade and notes long-term trends remain dynamic. Spot earnings for crude tankers declined this week with rates falling on several benchmark routes, while the product tanker market saw mixed movements.
Issue No. 1,137 5-Sep-2014 ISSN: 1358-8028 ClarkSea Index $10,654 Vessel Charter Rates This Week 1 Year VLCC TC Rate | 1 Year Capesize TC Rate 1 Year MR TC Rate | 6-12m 2750 TEU TC Rate Asset Prices This Week VLCC N/B $98.0m | Capesize N/B $55.3m | 2750 TEU N/B $32.0m VLCC 5yo $74.0m | Capesize 5yo $48.0m | 2750 TEU 5yo $15.3m This Week's Analysis (see Back Page) LNG Trade - Stiff Competition In The Energy World But Long-Term Trends Are Dynamic $29,000/day $21,500/day $14,000/day $7,600/day 5 10 15 20 25 30 35 40 S e p - 0 8 J a n - 0 9 M a y - 0 9 S e p - 0 9 J a n - 1 0 M a y - 1 0 S e p - 1 0 J a n - 1 1 M a y - 1 1 S e p - 1 1 J a n - 1 2 M a y - 1 2 S e p - 1 2 J a n - 1 3 M a y - 1 3 S e p - 1 3 J a n - 1 4 M a y - 1 4 $,000/day CONTENTS
Crude Tanker Spot Market p2 Product Tanker Spot Market p3 Large Bulk Carrier Market p4 Tripcharter Market, Freight Indices & Futures p5 Gas & Chemical Markets p6 Liner & Offshore Markets p7 Secondhand Prices p8 Sale & Purchase Market pi Recent Ship Sales by Vessel Type pii Cargo Fleet Changes & Bunkers piii Timecharter Fixture Record piv The Timecharter Market p9 The Shipbuilding Market p10 The Demolition Market p11 Economic Indicators p12 Ship Demand Trends p13 World Fleets & Orderbooks p14-15 Analysis p16 Roberts Bank New York Philadelphia Hampton Roads Houston New Orleans LOOP Selection of ports covered by the various market sectors in this report St Eustatius Bonaire Bolivar Rio de Janeiro Tubarao Mumbai Mundra Jamnagar Gangavaram Pipavav Singapore Jakarta Banjarmasin Dampier Hay Point Sydney Ningbo Beilun Oita Chiba Ulsan Longkou Qingdao Clarkson Research Services Limited (CRSL) is respected worldwide as the most authoritative provider of intelligence for global shipping. CRSL is part of the Clarksons group, the world's largest shipbroking and integrated shipping services provider. For more detail about the Clarksons group visit www.clarksons.com. Clarkson Research will be exhibiting at SMM 2014, Hamburg, Germany from the 9th-12th September 2014 and will be located in hall B1.OG. at stand 304. Roberts Bank New York Philadelphia Hampton Roads Houston New Orleans LOOP Selection of ports covered by the various market sectors in this report St Eustatius Bonaire Bolivar Rio de Janeiro Tubarao Saldanha Bay Richards Bay Dar es Salaam Lome Bonny Offshore Sullom Voe Primorsk Wilhelmshaven Rotterdam Lavera Arzew Es Sider Trieste Odessa Novorossiysk Augusta Agioi Theodoroi Sidi Kerir Ain Sukhna Ras Tanura Mumbai Mundra Jamnagar Gangavaram L i c e n s e d
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2 7 7 8 7 Crude Tanker Spot Market Crude Tanker Highlights VLCC Single WS 2014 Average earnings $ per day VLCC Earnings Voyage..... Aug 29 Sep 05 2014 2013 2014 Aug 29 Sep 05 This Week .... 23 280,000t Gulf - Europe 27 26 30 11,486 19,638 14,043 11,430 WEAKER -19% 23 280,000t Gulf - US Gulf * 26 25 29 8,319 14,516 9,772 7,048 WEAKER!! -28% 23 265,000t Gulf - Japan * 42 42.5 45 17,710 21,629 17,296 17,340 STEADY 0% 23 265,000t Gulf - S.Korea * 42 42.5 45 16,937 20,827 16,760 16,712 STEADY 0% 23 270,000t Gulf - Sing 45 43.5 46 17,994 22,429 20,946 18,130 WEAKER -13% 23 280,000t Gulf - Red Sea 52.5 50 52 25,880 32,918 33,611 29,380 WEAKER -13% 23 260,000t WAF - China * 47.5 46 47 15,454 21,264 21,840 21,000 SOFTER -4% 23 260,000t WAF - US Gulf * 50 55 55 22,665 34,069 29,023 35,144 FIRMER 21% 23 260,000t WAF - WC India^ 4.00 3.70 3.68 20,313 24,997 31,203 24,954 WEAKER -20% 23 275,000t Caribs-Singapore^ 6.00 6.00 4.63 29,608 40,859 67,754 67,421 STEADY 0% 23 VLCC Ave. Earnings * 16,217 22,461 18,938 19,449 STEADY 3% ^ Lump sum in million dollars Suezmax Single WS 2014 Average earnings $ per day Suezmax Earnings Voyage..... Aug 29 Sep 05 2014 2013 2014 Aug 29 Sep 05 This Week .... 24 130,000t WAF - USAC * 62.5 60 72 14,245 21,006 15,580 13,738 WEAKER -12% 24 130,000t WAF - Med 62.5 60 74 13,863 21,775 14,443 12,859 WEAKER -11% 24 130,000t Med - Med * 65 65 80 16,776 27,315 16,439 16,752 STEADY 2% 24 140,000t Black Sea - Med 62.5 62.5 78 13,321 26,204 12,799 13,559 FIRM.... 6% 24 Suezmax Ave. Earnings * 15,511 24,160 16,010 15,245 SOFTER -5% Aframax Single WS 2014 Average earnings $ per day Aframax Earnings Voyage..... Aug 29 Sep 05 2014 2013 2014 Aug 29 Sep 05 This Week .... 25 100,000t Baltic - UKC * 105 65 92 19,903 27,847 37,996 11,394 WEAKER!! -70% 25 80,000t Black Sea - Med * 105 90 102 11,265 21,326 23,356 16,107 WEAKER!! -31% 25 80,000t Sidi Kerir - Trieste * 102.5 90 101 11,346 21,319 22,872 16,984 WEAKER!! -26% 25 80,000t Es Sider - Fos 117.5 105 104 7,023 18,060 25,819 19,567 WEAKER -24% 25 80,000t Med - USAC 95 87.5 97 15,525 20,228 19,735 16,276 WEAKER -18% 25 80,000t UKC - UKC * 105 95 114 11,633 22,718 17,259 10,605 WEAKER!! -39% 25 80,000t UKC - USAC 95 90 105 17,958 21,950 17,352 14,943 WEAKER -14% 25 80,000t Gulf - East * 105 102.5 103 14,185 20,921 22,111 21,102 SOFTER -5% 25 80,000t Indo - Japan * 105 102.5 100 14,076 21,065 23,467 23,030 STEADY -2% 25 70,000t Carib - US Gulf * 92.5 85 130 16,508 25,843 12,334 9,134 WEAKER!! -26% 25 Aframax Ave. Earnings * 14,131 23,005 22,771 15,479 WEAKER!! -32% Clarkson Research Services Page 2 12,541 "Voyage Earnings" are estimated from spot freight rates (see footnote on page 4); */ # Indicates constituent routes of "Average Earnings". 05-Sep-14 15,649 9,398 16,710 15,618 13,741 12,558 16,908 2012 12,876 12,331 11,264 6,948 18,359 2012 14,937 15,042 18,879 17,453 18,845 30,899 17,668 25,730 20,441 28,537 Crude Tanker Spot Earnings ($,000's/day) 2012 17,302 13,039 17,904 17,455 VLCCs: It has been an uninspiring week in both the East and West this week. In the MEG, volumes have been on the low side with the rate on the Gulf-US Gulf route falling to WS 25. In WAF it has been a quiet week, although the Caribs market remains firm with the lump sum rate on the Caribs- Singapore route at $6.0m. Suezmaxes: Rates in WAF began the week at WS 62.5 for Europe bound voyages but as the fixing window stretched out to the back of the month rates came under increasing pressure. Charterers had multiple offers for cargoes and subsequently the rate on both the WAF-USAC and WAF- Med routes decreased to WS 60. Aframaxes: It was generally a quiet week in the Aframax market this week and as a result the rates on all featured routes declined w-o-w. For example, the rate on the cross-UKC route dropped to WS 95. As a result of softening rates, Aframax average earnings fell 32% w-o-w to $15,479/day. 10 20 30 40 50 60 70 80 90 Sep '12 Nov '12 Jan '13 Mar '13 May '13 Jul '13 Sep '13 Nov '13 Jan '14 Mar '14 May '14 Aug '14 VLCC Suezmax Aframax L i c e n s e d
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2 7 7 8 7 Product Tanker Spot Market Product Tanker Highlights Clean Product WS 2014 Average earnings $ per day Clean Earnings Single Voyage... Aug 29 Sep 05 2014 2012 2013 2014 Aug 29 Sep 05 This Week .... 26 75,000t Gulf - Japan 117.5 115 91 13,683 14,525 25,515 24,140 SOFTER -5% 27 55,000t Gulf - Japan 117.5 113 106 12,951 12,594 16,077 14,425 WEAKER -10% 28 37,000t UKC - USAC * 90 115 112 10,469 6,735 2,787 7,925 FIRMER 184% 28 37/38kt UKC-USAC-USG-UKC 90/72.5 115/70 112/87 19,399 14,048 8,717 11,489 FIRMER 32% 28 37,000t UKC- W. Africa * 120 135 131 16,660 10,295 8,509 11,638 FIRMER 37% 28 38,000t USG - ECSA * 95 100 127 16,574 11,292 4,946 5,765 FIRMER 17% 28 30,000t Singapore-E Aus * 175 175 168 14,360 11,803 13,081 13,564 FIRM.... 4% 28 30,000t Singapore-Japan 120 112.5 113 14,517 9,542 11,349 10,016 WEAKER -12% 28 35,000t WC India - Japan * 120 120 109 10,760 8,452 11,078 11,587 FIRM.... 5% 28 35,000t Gulf - E.Africa 190 185 165 17,134 15,450 20,226 19,027 SOFTER -6% 28 40,000t Gulf-UKC * ^ 1.7 1.75 1.43 10,840 8,504 14,660 15,585 FIRM.... 6% 29 30,000t Med - Med # 120 120 136 11,354 9,009 5,569 5,873 FIRM.... 5% 29 30,000t Black Sea - Med # 120 120 140 9,981 8,949 5,469 5,702 FIRM.... 4% Clean 'MR' Ave. Earnings * 13,277 9,514 9,177 11,011 FIRMER 20% Clean 'Hdy' Ave. Earnings # 10,668 8,979 5,519 5,787 FIRM.... 5% ^ Lump Sum in $million. Earnings for a triangular voyage of UKC-USAC at WS 115, followed by USG-UKC at WS 70. See Sources & Methods. Dirty Product WS 2014 Average earnings $ per day Dirty Earnings Single Voyage... Aug 29 Sep 05 2014 2012 2013 2014 Aug 29 Sep 05 This Week .... 31 55,000t Med - US Gulf * 117.5 117.5 123 10,536 15,957 14,704 14,802 STEADY 1% 31 55,000t UKC - US Gulf * 112.5 117.5 128 11,648 18,309 14,014 15,493 FIRMER 11% 31 50,000t Caribs - US Gulf * 120.0 120.0 145 11,197 19,334 13,121 12,815 STEADY -2% 33 30,000t Black Sea - Med 162.5 150.0 176 10,668 12,912 15,445 12,705 WEAKER -18% Dirty Ave. Earnings * 11,127 17,867 13,946 14,370 FIRM.... 3% VLCC Spot Monthly Fixture Record VLCC Spot Market Market Activity... Average No. Number Last This Week ... 2012 2013 Apr '14 Jun '14 Jul '14 Aug '14 4 Wks Fixtures: Gulf-West 22 24 20 10 26 17 14 DOWN BY..... -18% Gulf-East/Japan 93 98 102 87 74 83 73 DOWN BY..... -12% Gulf-Red Sea 1 2 0 2 3 0 0 #DIV/0! #DIV/0! Others 53 50 46 50 57 59 51 DOWN BY..... -14% Total Number of Fixtures 169 173 168 149 160 159 138 DOWN BY..... -13% Vessels due to arrive in Gulf ~ 86 82 94 98 90 94 95 UP BY.... 1% VLCCs Spot in Gulf ~ No. 4 4 4 11 5 6 9 UP BY.... 50% 000 Dwt 1,097 1,056 1,202 3,326 1,537 1,888 2,774 UP BY.... 47% ~ As at the beginning of the month for historical data; for the next 4 weeks (vessels due) or this week (vessels spot) for current week's data. Clarkson Research Services Page 3 05-Sep-14 0 46 148 113 9 2,755 9,912 10,592 11,671 May '14 20 82 11,527 9,657 10,589 10,592 12,087 13,014 12,422 9,292 12,056 10,156 17,897 9,576 Product Tanker Spot Earnings ($,000's/day) 14,172 12,890 9,062 14,098 13,027 Clean Products: In the LR market the West-East naphtha arbitrage closed, placing downward pressure on demand. As a result the LR2 rate on the Gulf-Japan route softened to WS 115, although the market appears to be firming going forward. Meanwhile, in the MR market the rate on the fronthaul UKC-USAC route firmed to WS 115 as a result of a short supply of tonnage. Conversely, a large volume of available tonnage in the USG depressed the rate on the USG-UKC route, which fell to WS 70. In spite of this, clean MR average earnings firmed 20% w-o-w to $11,011/day. Dirty Products: There was a steady amount of activity in the Med and UKC this week, with the rate on the UKC-US Gulf route increasing to WS 117.5. With activity coming off towards the end of the week and potential ballasters from Caribs entering Europe it seems likely that tonnage will rebuild. The Caribs market was relatively flat this week; consequently the rate on the Caribs-US Gulf route remained steady at WS 120. 5 10 15 20 25 30 35 40 45 Sep '12 Nov '12 Jan '13 Mar '13 May '13 Jul '13 Sep '13 Nov '13 Jan '14 Mar '14 May '14 Aug '14 MR Clean Tanker Earnings Handy Clean Earnings Dirty Panamax Earnings L i c e n s e d
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2 7 7 8 7 Bulkcarrier Spot Earnings ($,000's/Day) Bulkcarrier Highlights Capesize Single $ Per Ton Average Earnings $ Per Day Capesize Market Voyage Aug 29 Sep 05 2014 2012 2013 2014 Aug 29 Sep 05 This Week ... 16 165,000t ore Tubarao/Rotterdam* 10.75 9.70 9.54 -784 9,903 6,763 12,841 8,323 WEAKER!! -35% 16 165,000t ore Tubarao/El Dekheila 10.15 10.05 10.08 2,792 14,528 10,226 11,235 10,774 SOFTER -4% 16 165,000t ore Tub/Qingdao* " 24.00 23.65 21.36 18,397 24,314 25,292 32,890 31,942 STEADY -3% 16 165,000t coal Bolivar/Rotterdam* 10.25 9.90 10.13 4,761 13,696 9,277 10,469 9,143 WEAKER -13% 16 165,000t ore Dampier/Qingdao* " 9.00 8.40 8.33 5,776 13,279 9,145 12,603 10,246 WEAKER -19% 16 165,000t ore Saldanha/Qingdao " 16.75 16.25 15.19 9,118 15,759 15,852 21,185 19,645 SOFTER -7% 16 165,000t ore Dampier/Japan 18m* 8.65 8.15 8.04 7,305 17,044 13,069 16,761 14,633 WEAKER -13% 16 150,000t coal Hay Pt./Rotterdam 18.00 16.75 15.35 -6,663 475 -191 5,959 4,076 WEAKER!! -32% 16 150,000t coal Indonesia/Rotterdam 13.00 12.70 10.05 -9,667 -3,658 -3,605 4,750 4,813 STEADY 1% 16 150,000t coal Hay Pt./China 11.25 11.10 10.23 255 8,178 8,959 13,129 13,257 STEADY 1% 16 150,000t coal R.Bay/Rotterdam 11.75 11.10 9.00 -11,234 -5,769 -5,784 2,817 1,013 WEAKER!! -64% 17 150,000t coal R.Bay/EC India 12.00 12.75 11.42 10,400 15,659 13,079 15,299 17,661 FIRMER 15% 16 Ave. Earnings, 1999/00-built * 7,091 15,647 12,709 17,113 14,857 WEAKER -13% Panamax Single $ Per Ton Average Earnings $ Per Day Panamax Market Voyage Aug 29 Sep 05 2014 2012 2013 2014 Aug 29 Sep 05 This Week ... 18 70,000t coal Baltimore/ARA^ 11.00 11.29 10.66 5,309 8,106 3,739 5,077 5,794 FIRMER 14% 18 70,000t coal USGulf/ARA 14.00 14.40 14.48 7,036 8,145 4,830 4,512 5,197 FIRMER 15% 18 70,000t coal Bolivar/ARA 12.75 12.95 12.60 4,697 7,665 3,863 4,571 5,130 FIRMER 12% 18 70,000t coal Rob. Bank/N. China 12.80 14.00 15.36 5,771 7,342 9,205 4,678 7,308 FIRMER 56% 18 70,000t coal Dalrymp. B./N. China 11.00 12.00 12.83 7,338 9,731 9,641 5,501 8,233 FIRMER 50% 18 55,000t coal Roberts Bank/Rott 17.00 17.00 18.39 1,076 -163 -459 -1,838 -1,334 WEAKER!! -27% 18 70,000t coal Indonesia/Rotterdam 14.50 15.00 15.15 -689 -96 562 -253 995 WEAKER!! -494% 18 70,000t coal Dalrymple B./Rott. 17.60 17.40 18.88 -254 316 1,159 -191 140 WEAKER!! -173% 18 70,000t coal Richards B./Rott 12.05 12.40 12.49 -2,444 -1,627 167 -296 30 WEAKER!! -110% 18 72,000t coal Richards B./WC India 13.50 14.00 14.12 8,673 9,654 6,306 5,435 6,032 FIRMER 11% 18 Ave. Earnings, 1997/98-built~ 5,271 6,600 5,603 4,281 5,722 FIRMER 34% Supramax Single $ Per Ton Average Earnings $ Per Day Supramax Market Voyage... Aug 29 Sep 05 2014 2012 2013 2014 Aug 29 Sep 05 This Week ... 22 49,000t grain USGulf/Jap.(HSS) 46.50 47.50 46.29 18,701 18,828 19,053 19,751 20,578 FIRM....... 4% 22 50,000t coal Richards B./WC India 15.75 15.75 17.40 7,948 7,186 5,284 3,322 3,057 SOFTER -8% 22 Ave. Earnings, 1997/98-built 11,667 11,583 10,304 8,946 9,051 STEADY 1% Clarkson Research Services Page 4 Large Bulk Carrier Market "Voyage Earnings" are calculated from spot freight rates, excluding waiting time off-hire etc., for standard routes/ships, for which see the "Sources & Methods" document on our website, "SIN 2010" (www.clarksons.net). Standard Ships are indicated by the figures on the left e.g. Modern Capesize = Standard Ship No. 16 05-Sep-14 * Indicates components of average earnings since start 2009. ~Avg Panamax earnings based on revised selection of routes from start 2014. Selected voyage earnings featured on pages 4 & 5, including historical data, based on revised voyage cost, time and distance assumptions from 25-Jul-14. 5 10 15 20 25 30 35 40 45 50 Sep '12 Nov '12 Jan '13 Mar '13 May '13 Jul '13 Sep '13 Nov '13 Jan '14 Mar '14 May '14 Aug '14 Capesize Average Spot Panamax Average Spot Supramax Tripcharter Capesize: It was a slow start to the week in both basins. Spot tonnage built up in the Atlantic earlier in the week, although the tonnage situation did improve slightly as the week went on. Elsewhere, the spot rate on the Western Australia to China fell w-o-w to $8.40/tonne. Panamax: In the Atlantic, the week started with the US Gulf still being the focal point of the market. There also was an increase in activity on fronthaul routes. Elsewhere, there was fresh enquiry in the Pacific, including in SE Asia and NOPAC. Overall, average Panamax spot earnings increased 34% w-o-w to $5,722/day. Handy: Rates on routes from the US Gulf continued to rise this week for both Supramaxes and Handysizes. Meanwhile, the Pacific market has shown a slight improvement this week, particularly on routes from Indonesia to China and India. Overall, average Supramax trip earnings increased 4% w-o-w to $8,600/day. L i c e n s e d
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2 7 7 8 7 Tripcharter Market, Freight Indices & Futures Capesize Capesize Market Tripcharter... 2012 2013 2014 Aug 08 Aug 15 Aug 22 Aug 29 Sep 05 This Week .... Cont/Far East 23,389 29,692 30,708 23,000 32,000 35,500 35,500 34,000 SOFTER -4% Transpacific R/V 7,423 14,168 13,033 9,000 16,500 16,750 17,250 16,250 SOFTER -6% Far East/Cont -8,851 -635 -544 -4,500 1,000 2,750 3,500 3,250 SOFTER -7% Transatlantic R/V 6,620 15,447 12,119 6,500 10,500 9,000 11,750 11,000 SOFTER -6% Average Capesize Earnings 7,145 14,668 13,829 8,500 15,000 16,000 17,000 16,125 SOFTER -5% Panamax Panamax Market Tripcharter... 2012 2013 2014 Aug 08 Aug 15 Aug 22 Aug 29 Sep 05 This Week .... Cont/Far East 15,995 17,625 15,554 12,250 14,000 14,000 15,350 15,450 STEADY 1% Transpacific R/V 7,021 9,073 7,733 3,100 5,000 4,500 4,600 7,000 FIRMER 52% Far East/Cont -674 349 1,119 100 0 100 100 150 FIRMER 50% Transatlantic R/V 7,418 10,623 6,354 5,250 6,500 5,750 7,000 6,750 SOFTER -4% Average Panamax Earnings 7,440 9,418 7,690 4,640 6,000 5,720 6,260 6,920 FIRMER 11% Supramax Supramax Market Tripcharter... 2012 2013 2014 Aug 08 Aug 15 Aug 22 Aug 29 Sep 05 This Week .... Cont/Far East 15,875 15,538 15,188 10,750 12,500 12,500 12,750 13,000 STEADY 2% Transpacific R/V 7,861 8,653 8,826 8,750 8,750 9,000 9,250 9,500 STEADY 3% Far East/Cont 4,106 5,118 5,840 7,500 7,500 8,000 8,000 8,000 STEADY 0% Transatlantic R/V 7,596 9,284 6,299 4,750 6,000 6,000 6,250 6,500 FIRM....... 4% Indonesia - China~ 5,955 6,242 5,993 4,500 4,500 5,250 5,250 6,000 FIRMER 14% Average Supramax Earnings* 8,859 9,648 9,038 7,250 7,850 8,150 8,300 8,600 FIRM....... 4% * Does not include Indonesia-China. ~ Based on delivery North China, redelivery South China. Handysize Handysize Market Tripcharter... 2012 2013 2014 Aug 08 Aug 15 Aug 22 Aug 29 Sep 05 This Week .... Cont/ECSA 5,214 6,211 5,669 3,250 3,500 4,000 4,750 5,000 FIRM....... 5% Cont/USEC-USG 5,203 5,668 5,183 3,250 3,500 4,000 4,750 5,000 FIRM....... 5% ECSA/Cont 12,120 11,563 10,700 8,000 8,000 8,500 8,500 8,750 STEADY 3% USEC-USG/Cont 10,668 13,942 11,465 6,750 7,000 7,500 8,000 8,750 FIRMER 9% SEAsia/Australia R/V 7,041 7,074 7,308 4,750 4,750 6,500 6,750 7,000 FIRM....... 4% Transpacific R/V 6,866 7,004 7,544 5,500 5,500 6,750 7,000 7,500 FIRM....... 7% Average Handysize Earnings 7,852 8,577 7,978 5,250 5,375 6,208 6,625 7,000 FIRM....... 6% Note: Vessels based on Baltic standards. Baltic Freight Indices Baltic Handysize Index Trends Date BCI 2014 BSI BHSI BDI 26-Aug 2430 944 420 1070 27-Aug 2366 952 427 1063 28-Aug 2551 963 437 1119 29-Aug 2627 970 442 1147 01-Sep 2606 977 450 1151 02-Sep 2568 983 456 1149 03-Sep 2489 988 462 1142 04-Sep 2464 993 466 1147 Max Value 2627 993 466 1151 Min Value 2366 944 420 1063 Avg Value 2513 971 445 1124 FFA Indications* $/day 04-Sep Sep-14 Q4 14 Cal 15 BCI 7 Bolivar-Rott. 10.15 12.88 11.75 BCI 4 R.Bay-Rott. 11.20 12.20 11.05 BPI 2A USG/F.East 17,375 19,375 BPI 3A T/P R/V 8,250 10,250 Cape TC Avg. 18,250 24,250 19,000 P'max TC Avg. 8,425 10,850 10,325 S'max TC Avg. 11,125 12,300 10,800 *FFA Indications basis closing mid-price Clarkson Research Services Page 5 01-Sep-14 11.05 15,819 6,288 15,940 7,396 10,384 927 927 808 871 Index 9.71 811 842 871 888 903 919 Average Rate $ Per Day Average Rate $ Per Day Average Rate $ Per Day Average Rate $ Per Day BPI 808 0 125 250 375 500 625 750 875 1,000 1 3 6 8 11 13 16 18 21 23 26 28 31 33 36 38 40 43 45 48 50 Week No. 2012 2013 2014 L i c e n s e d
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2 7 7 8 7 Gas & Chemical Markets LPG Charter Rates, $'000/month Markets. 2012 2013 Jul Aug 05 Sep Trends LPG Voyage Rates, $/mt 44/46K mt Gulf/Jap* 55.29 58.49 137.25 107.60 99.00 SOFTER... -8% LPG TCE, $/day 82,000m modern 30,396 36,446 128,682 93,602 81,207 WEAKER.. -13% 78,000m modern 29,280 35,100 122,855 91,070 84,824 SOFTER... -7% LPG 12 mths T/C, $/day 82,000m modern 30,513 31,430 60,412 56,089 55,892 STEADY... 0% 78,000m modern 30,159 31,022 59,097 55,103 54,905 STEADY... 0% 59,000m modern 29,144 32,138 47,138 48,330 51,782 FIRM... 7% 35,000m 25,704 26,492 33,740 33,897 34,193 STEADY... 1% 22,500m modern 23,950 25,442 28,275 28,275 28,275 STEADY... 0% 20,500m Semi-Ref^ 28,104 30,162 34,110 34,686 35,343 STEADY... 2% 15,000m Semi-Ref 20,687 21,247 25,480 25,579 25,316 STEADY... -1% 8,250m Ethylene 17,744 17,295 16,932 16,932 16,932 STEADY... 0% 3,500m Pressure (East) 7,777 8,096 7,397 7,036 6,904 STEADY... -2% LNG 12 mths T/C, $/day 160,000m modern 136,673 90,000 67,250 66,000 66,000 STEADY... 0% *44K mt for 78K vessel/46K mt for 82K vessel. ^22,000 cbm before Jan-12. Chemical Freight Rates, $/mt Markets. 2012 2013 Jul Aug 05 Sep Trends Voyage Rates ($/mt) 10,000 Gulf/WC India 30.46 31.40 34.50 35.40 37.00 FIRM... 5% 15,000 Gulf/Ulsan 46.83 49.23 52.50 52.40 54.00 FIRM... 3% 15,000 Gulf/Med 55.96 62.06 60.00 61.20 63.00 STEADY... 3% 15,000 Gulf/Rott. 67.13 69.40 66.00 67.20 69.00 STEADY... 3% 5,000 Rott/Houston 44.46 45.48 42.25 40.80 41.00 STEADY... 0% 10,000 Rott/Houston 38.62 41.11 36.00 36.00 36.00 STEADY... 0% 5,000 Rott/Ulsan 90.02 91.67 98.75 93.40 92.00 STEADY... -1% 5,000 Singapore/Rott 97.29 98.23 96.00 94.60 96.00 STEADY... 1% 1,000~ Sing./Houston 153.04 153.31 160.00 162.00 166.00 STEADY... 2% 10,000 Ulsan/Houston 50.46 60.58 58.50 58.60 60.00 STEADY... 2% 5,000 Houston/Rott 49.37 48.40 45.00 45.00 45.00 STEADY... 0% 5,000 Houston/Ulsan 70.00 73.85 58.00 53.80 52.00 SOFTER... -3% 12 mths TC, $/day 13,000 dwt IMO II* 8,000 8,583 9,250 9,250 9,250 STEADY... 0% 19,999 dwt S/S* 13,056 13,438 14,000 14,250 14,250 STEADY... 0% Easychems except for: ~ Stainless Steel. *2012 average basis April-December data. Clarkson Research Services Page 6 05-Sep-14 Gas Carrier Average 2014 Gas Market Chemicals Average 2014 Chem Market 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 S e p - 1 2 O c t - 1 2 N o v - 1 2 J a n - 1 3 F e b - 1 3 A p r - 1 3 M a y - 1 3 J u n - 1 3 A u g - 1 3 S e p - 1 3 N o v - 1 3 D e c - 1 3 J a n - 1 4 M a r - 1 4 A p r - 1 4 M a y - 1 4 J u l - 1 4 A u g - 1 4 78,000m3 TCE, Gulf - Japan 78,000m3, 1 Yr t/c 40 50 60 70 80 90 100 110 120 130 140 S e p - 1 2 O c t - 1 2 N o v - 1 2 J a n - 1 3 F e b - 1 3 A p r - 1 3 M a y - 1 3 J u n - 1 3 A u g - 1 3 S e p - 1 3 N o v - 1 3 D e c - 1 3 J a n - 1 4 M a r - 1 4 A p r - 1 4 M a y - 1 4 J u l - 1 4 A u g - 1 4 Rott/Far E. Houston/Far E. basis 5,000mt Easychems The spot market was very active and we saw once again just how quickly the market can turn around and an apparent length in available tonnage turn into a more balanced situation. As we are seeing more regularly, ships appearing open for Middle East loading can quickly be soaked up by hidden requirements as well as being drawn into alternative load areas at short notice. This is what we witnessed in the last few days with vessels not only being picked up for AG-East voyages but also for loading in Houston, Balboa (STS) and Algeria. Owners were able to exert some upward pressure on rates. There were some exceptions, with Indian charterers being able to secure freight and demurrage levels arguably giving the charterers advantageous terms over the Baltic. As things stand, September looks like a secure platform for owners to keep pushing rates up and we are already seeing requirements worked for first half October loading out of the AG. Term negotiations are ongoing on a number of fronts, while a small number of timecharters are rumoured already concluded with periods varying from a couple of years to long-term.
With autumn almost upon us, a number of spot markets are beginning to experience seasonality and the uptick in activity which usually comes towards the end of the year. However, the increased volume of enquiries has so far not trans- lated into improved spot freight rates, with all benchmark routes remaining flat week-on-week. The Americas chemical and edible oils markets are gaining strength, with cargoes seemingly getting booked and a number of enquiries never touching the open market. The current assessment of benchmark freight rates for the transpa- cific route, at $52/mt and $49/mt for 5,000 and 10,000mt parcels of easy chemicals, is around 30% lower com- pared to a year ago. Furthermore, these levels represent around a 44% fall since the start of 2014, demonstrating the vol- atility which can exist on this trade lane. In the Middle East it is a similar story, with enquiries plentiful but rates unchanged and little in the way of tangi- ble fixtures. With a new refinery set to come online in the coming months, this may help to absorb the current available capacity. The arterial ex-Europe and Asia trade lanes seem to be in a drifting mode, with little evidence of any uptick in activity and as a result, a stable rate environment. L i c e n s e d
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2 7 7 8 7 Liner & Offshore Markets Liner Market Rates ($,000's/day) Liner Market News Container / MPP / Average 2014 Liner Markets .... Short Sea Markets 2010 2011 2012 2013 Jun Jul Aug Sep Trends* Container Vessels ($/Day) Feedermax, 725 teu grd. 4,535 5,479 4,383 4,842 5,000 4,950 4,950 4,950 STEADY... -1% Handy, 1,000 teu grd. 6,133 7,729 5,358 6,321 6,350 6,250 6,300 6,300 STEADY... -2% Handy, 1,700 teu grd. 6,800 10,142 6,292 7,096 7,500 7,350 7,250 7,250 STEADY... -2% Sub-P'max, 2,000 teu g'less 7,467 10,688 6,408 6,483 7,000 7,100 7,200 7,200 STEADY... 1% Sub-P'max, 2,750 teu g'less 9,942 13,388 6,742 6,829 7,250 7,450 7,600 7,600 FIRM....... 5% Panamax, 3,500 teu g'less 13,250 14,871 7,179 7,021 7,800 7,850 7,850 7,850 STEADY... 1% MPP Tonnage ($/Day) 17,000 dwt, grd. 1 yr. t/c (liner) 9,604 9,729 8,988 8,358 7,500 7,500 7,500 7,500 STEADY... 0% 9,000 dwt, 1 yr. t/c (liner) 6,425 6,425 6,042 5,875 6,000 6,000 6,000 6,000 STEADY... 0% European Short Sea 3,000dwt ($/t) ECUK/ARAG - N.Spain 24.17 22.31 22.73 22.85 24.36 23.44 22.70 22.50 STEADY... -1% French Bay - ECUK 14.93 15.72 16.73 17.96 16.75 16.94 17.05 17.25 STEADY... 1% Lower Baltic - ARAG 19.95 20.42 20.42 20.98 20.19 19.19 19.15 19.00 STEADY... -1% UK/ARAG - W.Med 33.50 30.71 33.22 33.22 36.13 35.00 33.25 33.00 STEADY... -1% W.Med - UK/ARAG 25.11 24.91 26.11 27.56 25.56 24.50 24.70 24.50 STEADY... -1% *3-mnth trend for Container/MPP; current month shows latest end month data. Change since previous month for Short Sea; see www.hcshipping.co.uk for market report. Offshore Vessel Average 2014 Offshore Market Market 2010 2011 2012 2013 Jun Jul Aug 05 Sep This Month AHTS, Large, /Day 13,509 22,152 16,303 24,142 15,635 15,472 51,444 82,160 FIRMER... 60% AHTS, Very Large, /Day 18,717 35,114 24,252 39,085 18,966 24,623 66,493 114,450 FIRMER... 72% PSV, Medium, /Day 10,871 11,518 9,763 13,589 9,748 10,271 10,515 13,250 FIRMER... 26% PSV, Large, /Day 13,804 13,574 12,020 16,101 10,358 11,234 14,351 19,216 FIRMER... 34% Basis North Sea spot market. AHTS, Large = 13-18,000 Bhp, Very Large = 18,000+ Bhp. PSV, Medium = 600-800m2, Large = >800m 2 . New size ranges adopted Aug'10. Offshore Fleet No. Vessels, end AHTS Spot Rates & Orderbook. 2011 2012 2013 Aug-14 Fleet: Anchor Handling Tug/Supply 2,696 2,787 2,880 2,933 PSV/Supply 1,951 2,038 2,205 2,329 Crew/Workboat 1,660 1,724 1,797 1,842 Other Types 3,732 3,828 3,903 3,979 All Offshore Vessels 10,039 10,377 10,785 11,083 Orderbook: Anchor Handling Tug/Supply 290 247 219 186 PSV/Supply 379 473 478 425 Crew/Workboat 84 112 86 45 Other Types 307 341 367 358 All Offshore Vessels 1,060 1,173 1,150 1,014 Offshore fleet includes 'ship-shaped' units only; for more detailed coverage of the full range of offshore sectors see Offshore Intelligence Monthly. Clarkson Research Services Page 7 05-Sep-14 5 10 15 20 25 S e p - 1 0 D e c - 1 0 M a r - 1 1 J u n - 1 1 S e p - 1 1 D e c - 1 1 M a r - 1 2 J u n - 1 2 S e p - 1 2 D e c - 1 2 M a r - 1 3 J u n - 1 3 S e p - 1 3 D e c - 1 3 M a r - 1 4 J u n - 1 4 S e p - 1 4 1,700 teu grd FCC 2,750 teu gls FCC 3,500 teu gls FCC 17,000 dwt MPP 0 30 60 90 120 150 S e p - 1 0 D e c - 1 0 M a r - 1 1 J u n - 1 1 S e p - 1 1 D e c - 1 1 M a r - 1 2 J u n - 1 2 S e p - 1 2 D e c - 1 2 M a r - 1 3 J u n - 1 3 S e p - 1 3 D e c - 1 3 M a r - 1 4 J u n - 1 4 18,000+ BHP ,000/day 3-week moving average Box volumes on the Asia-Europe trade route increased by 7.3% y-o-y in July to 1.39m TEU - according to data provided by Container Trade Statistics. This follows a peak leg volume increase in May of 11.7% y-o-y and a 10.2% y-o-y rise in June. Whilst the peak leg trade volumes have strengthened in 2014 the non-peak leg trade volumes from Europe to Asia continued to fall y-o-y in July by 2.8% to 0.58m TEU. Meanwhile, on the Transpacific trade route, North American imports from Asia in July showed a rise of 5.4% y-o-y to 1.39m TEU. In their 2Q financial report CSAV posted a $58.5m net loss for 2Q 2014, 11.2% better than their 1Q loss of $65.9m. The company attributed this to depressed freight rates, reporting them to be down 9.9% on Q2 2013, but announced that it has achieved progress in unit operating costs. CSAV is preparing for its merger with Hapag-Lloyd later this year. L i c e n s e d
' 1 4 Long Term Price Trends Bulkers Tankers Index, Start 2000 = 100 -30% -25% -20% -15% -10% -5% 0% 5% 10% 15% 20% 25% A u g
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' 1 4 Short Term Tanker Trends % Year on Year 5-year-old Tanker Price Index Percentage Change Year-On-Year -40% -30% -20% -10% 0% 10% 20% 30% 40% A u g
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2 7 7 8 7 Tanker Y-t-d Aug Sales* .... 2013 2014 2014 Type: VLCC 34 50 2 Suezmax 18 27 3 Aframax 42 39 3 Handy/Pmax 215 152 4 Total No. Sales 309 268 12 Total DWT (,000) 25,160 29,132 1,484 Total Value ($ m) 5,668 7,300 225 Bulker Y-t-d Aug Sales* .... 2013 2014 2014 Type: Capesize 60 35 1 Panamax 130 89 8 Handymax 134 101 7 Handysize 171 76 5 Total No. Sales 495 301 21 Total DWT (,000) 33,002 20,549 1,328 Total Value ($ m) 6,678 5,090 349 Other Y-t-d Aug Sales .... 2013 2014 2014 Total No. Sales 629 361 40 Total dwt (,000s) 7,827 9,744 1,355 Total Value ($ m) 8,112 5,272 1,020 Total Y-t-d Aug Sales ..... 2013 2014 2014 Buyers: Greece 263 181 14 Norway 52 32 5 Germany 25 20 2 China P.R. 87 47 3 UK 42 31 3 South Korea 34 37 1 Total No. Sales 1,433 931 74 Total Dwt (,000) 65,989 59,424 4,167 Total Value ($m.) 20,459 17,661 1,594 Average $/Dwt 310 297 383 * Includes vessels over 10,000 dwt only. Sales of bulk vessels under 10,000 dwt and of non-bulk vessels are included in "Other Sales". Clarkson Research Services i 05-Sep-14 Sale & Purchase Market ALL DATA AND INFORMATION IN THIS REPORT ARE AS REPORTED UP TO NOON ON THE DATE OF PUBLICATION 0 20 40 60 80 100 120 140 160 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 S e p - 0 9 J a n - 1 0 M a y - 1 0 S e p - 1 0 J a n - 1 1 M a y - 1 1 S e p - 1 1 J a n - 1 2 M a y - 1 2 S e p - 1 2 J a n - 1 3 M a y - 1 3 S e p - 1 3 J a n - 1 4 M a y - 1 4 No. $m. Sales Volumes & Values Volume Value Tankers: In the tanker market this week we have seen the sale of two Chinese built coated Aframaxes, namely the BEECH 3 (109,354 dwt, built 2000, Dalian New Yard) and BEECH 4 (109,693 dwt, built 1999, Dalian New Yard), sold by clients of Woodstreet Inc. for $23.5m en-bloc to clients of Sinokor. Pricing appears to be in line with that of the coated DL IRIS (89,999 dwt, built 1998, Dalian New Yard) which was committed but failed at a price in the region of $10.3m to Far Eastern interests last month. The Aframax sector has seen strong levels of activity of late, re- affirming the high level of interest among buyers across the larger crude segments currently. This is set to continue with offers invited this week on the German controlled SC SARA (105,344 dwt, built 2001, Sumitomo (Yokosuka)). We understand that the vessel has seen firm levels of interest, with five buyers reportedly offering in the region of $16m. Given this, and the general level of optimism around the tanker S&P market at the moment, we expect to report more sales in the coming weeks.
Dry Cargo: This week we have seen a steady amount of dry cargo S&P activity, focused mainly in the Handysize sector. The Japanese controlled four hold/hatch unit FORTE (23,573 dwt, built 2001, Shin Kurushima, C4x30T) has been sold to Greek buyers for $7.8m. The Chinese built open-hatch BIRCH 3 (20,427 dwt, built 1999, Wuhu Shipyard, C3x30T) has been sold for $5.3m to European buyers, THEOMITOR (28,510 dwt, built 1994, Kanda Zosensho, C4x30T) has been sold for $6.8m and FREE IMPALA (24,111 dwt, built 1997, Shanghai Shipyard, C4x30T) has been sold for $3.5m to Middle Eastern interests. Other activity includes the sale of the Panamax JINDAL VARAD (75,460 dwt, built 1994, Burmeister & Wain) for $5.8m and the Taiwanese controlled Handymax CHC NO.3 (46,635 dwt, built 1995, Mitsui S.B., C4x30T) which has been purchased for $7.2m by South Korean buyers.
Baltic Sale & Purchase Assessments (weekly) (Based on max. 5-year old vessels, as published by the Baltic Exchange) As of the 1 st September 2014. VLCC (305,000 DWT): $73.421m Aframax (105,000 DWT): $37.731m MR Product tanker (51,000 DWT): $26.016m Capesize (172,000 DWT): $47.042m Panamax (74,000 DWT): $23.452m Super Handy (56,000 DWT): $23.678m Note: H. Clarkson brokers did not contribute to the above Baltic Sale & Purchase Assessment rates. L i c e n s e d
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2 7 7 8 7 Recent Ship Sales by Vessel Type Vessel Type Vessel name Dwt/Unit Blt. Yard Date Price $m. Buyers Tanker D/Hull Beech 3* 109,354 2000 Dalian New Yard 03-Sep 23.5 Clients of Sinokor Tanker D/Hull Beech 4* 109,693 1999 Dalian New Yard 03-Sep # Clients of Sinokor Tanker D/Hull Cygnus Voyager* 156,835 1993 I.H.I. 28-Aug undisclosed Clients of Chevron Tanker D/Hull Altair Voyager* 135,829 1993 Ishibras 28-Aug # Clients of Chevron Tanker D/Hull Sirius Voyager* 156,380 1994 Ishibras 28-Aug # Clients of Chevron Tanker D/Hull DS Victory 299,089 2001 Daewoo 27-Aug region 33.6 Clients of Moundreas Tanker D/Hull DT Providence* 104,255 2008 Shanghai Waigaoqiao 22-Aug region 34 Undisclosed interests Tanker D/Hull Enrica Lexie* 104,255 2008 Shanghai Waigaoqiao 22-Aug region 34 Undisclosed interests Tanker D/Hull Ambelos 105,315 2006 Sumitomo (Yokosuka) 15-Aug 33 Clients of PNSC TankChem IMO II/III Clipper Legacy* 10,051 2005 Yardimci Deniz 05-Sep low 7 Nigerian interests TankChem IMO II/III Clipper Lancer* 9,971 2006 Yardimci Deniz 05-Sep low 7 Nigerian interests TankChem IMO II Alfatem 6,753 2000 Dearsan Shipyd. 29-Aug undisclosed Undisclosed interests TankChem IMO II N/B RESALE HULL S5126 49,990 2014 SPP Shipbuilding 21-Aug 37.1 Clients of Scorpio Tankers TankChem IMO III Green Stars 36,039 2001 Daedong S.B. 19-Aug region 12.5 Indonesian interests TankChem IMO II/III Chem Sea 11,642 1999 Fukuoka S.B. 07-Aug region 7.7 Undisclosed interests Ro-Ro/Pass 1500 pass. Lefka Ori* 6,911 1992 Mitsubishi H.I. 07-Aug T/C back Euro21 Undisclosed interests Ro-Ro/Pass 1500 pass. Sophocles V* 6,987 1990 Mitsubishi H.I. 07-Aug T/C back # Undisclosed interests Passenger 34 pass. To Callisto 66 1963 D. W. Kremer 29-Aug undisclosed Clients of Irrawaddy Offshore MSV Siem Daya 1* 5,000 2013 VARD Brattvaag 22-Aug 282 Clients of Daya Materials Offshore MSV Siem Daya 2* 5,000 2013 VARD Brattvaag 22-Aug # Clients of Daya Materials Offshore AHTS N/B RESALE HULL 3172 1,475 2014 Yuexin S.B. 12-Aug region 11.5 Clients of SC Group Gas C'rier 6,571 cu.m Gas Puffer 7,046 1995 Asakawa S.B. 02-Sep 6.9 Clients of Laugfs Gas Gas C'rier LPG Norgas Petaluma 9,260 2003 Zhonghua S.Y. 21-Aug 24 Clients of SGPC Gas C'rier LNG Methane Jane Elizabeth* 78,984 2006 Samsung H.I. 14-Aug 328 Clients of GasLog Ptnrs Gas C'rier LNG Methane Rita Andrea* 79,046 2006 Samsung H.I. 14-Aug # Clients of GasLog Ptnrs Dry MPP 618 teu. GW Beychevelle 7,650 2009 Shandong Huanghai 04-Sep 4.5 Chinese interests Dry MPP 224 teu. Swegard 4,956 2001 Damen Hoogezand 03-Sep 2.4 Undisclosed interests Dry MPP 256 teu. Hudsonborg* 6,041 2006 Niestern Sander 12-Aug low euro5 Norwegian interests Dry MPP 256 teu. Humberborg* 6,041 2006 Niestern Sander 12-Aug low euro5 Norwegian interests Dry Genl 98 teu Sava Lake 3,050 1990 Brod. Sava 13-Aug Euro0.6 Greek interests Container 1730 teu. N/B RESALE HULL 661* 23,245 2014 Zhejiang Ouhua 03-Sep 26 Clients of Seacon Container 1730 teu. X-Press Nuptse* 23,245 2014 Zhejiang Ouhua 03-Sep 26 Clients of Seacon Container 1452 teu. Novia* 20,176 1995 Kv. Warnowwerft 03-Sep 4.2 Clients of Continental Investment Container 1452 teu. Olivia* 20,176 1995 Kv. Warnowwerft 03-Sep 4.2 Clients of Continental Investment Container 2169 teu. Westwood Cascade* 29,700 1999 Flender Werft 29-Aug 7 Clients of Thor Dahl Container 2169 teu. Santa Felicita* 30,135 1999 Flender Werft 29-Aug 7 Clients of Thor Dahl Container 700 teu. Johanna 7,131 1999 J. J. Sietas 19-Aug 1.65 Clients of Foroohari Schiff. Container 5500 teu. YM Great* 67,270 2004 Koyo Dock K.K. 07-Aug 22.175 Clients of Diana Containerships Container 5500 teu. YM March* 67,270 2004 Koyo Dock K.K. 07-Aug 22.175 Clients of Diana Containerships Car C'rier 4864 cars Nocc Coral 12,706 1987 Hyundai H.I. 02-Sep undisclosed Undisclosed interests Car C'rier 254 cars Austal Hull 270 700 2010 Austal Pty. Ltd. 22-Aug 61.5 Clients of Condor Ferries Bulk 4x30t cr. Forte 23,573 2001 Shin Kurushima 03-Sep 7.8 Greek interests Bulk 3x30t cr. Birch 3 20,427 1999 Wuhu Shipyard 03-Sep 5.3 European interests Bulk 4x30t cr. CHC No. 3 46,635 1995 Mitsui SB 02-Sep 7.2 South Korean interests Bulk 4x30t cr. Theomitor 28,510 1994 Kanda Zosensho 02-Sep 6.8 Undisclosed interests Bulk 4x30t cr. Free Impala 24,111 1997 Shanghai S.Y. 02-Sep 3.5 Middle East interests Bulk Gearless Jindal Varad 75,460 1994 Burmeister & Wain 02-Sep 5.8 Indian interests Bulk Gearless Zhushui 5 79,501 2012 Jinhai Heavy Ind. 29-Aug 20.9 Greek interests Bulk 4x36t cr. Bao Bright 56,582 2011 New Hantong Shipyard 29-Aug region 19.6 Undisclosed interests Bulk 3x30t cr. Celal Amca 12,274 2001 Shin Kurushima 29-Aug 4.9 Turkish interests Bulk Gearless N/B RESALE HULL J0062 176,000 2014 Jinhai Heavy Ind. 28-Aug 43.5 European interests Bulk Gearless Golden Kiji 76,596 2007 Imabari S.B. 28-Aug 19.5 Clients of Apollonia Lines Bulk 4x30.5t cr. N/B RESALE HULL CHB001* 39,000 2014 Zhoushan Changhong 27-Aug 22.2 Hong Kong interests Bulk 4x30.5t cr. N/B RESALE HULL CHB002* 39,000 2014 Zhoushan Changhong 27-Aug 22.2 Hong Kong interests Bulk 4x30t cr. Fortune Frontier 29,738 2002 Shikoku Dock. 27-Aug 10.5 Undisclosed interests Bulk 4x25t cr. Island Ranger 42,427 1994 Oshima S.B. Co. 27-Aug 8 Clients of Seorae Bulk Gearless Red Iris 75,834 2003 Sanoyas 22-Aug 15.75 Clients of Omicron Ship Mngt. Bulk 4x30t cr. Alianca Orient 52,454 2006 Tsuneishi Zosen 22-Aug higher 17 Undisclosed interests Bulk Gearless N/B RESALE HULL YC015 79,659 2014 Yichun Wujiazui S.B. 15-Aug 22.5 Clients of New Shipping Bulk 4x30t cr. Lingue 26,973 1990 Minami Nippon 12-Aug 4 Undisclosed interests Bulk 4x30t cr. N/B RESALE HULL 865 61,000 2016 Imabari S.B. 12-Aug 31.4 Clients of Scorpio Bulk Gearless Lowlands Nello 76,830 2004 Sasebo H.I. 08-Aug about 17.2 Norwegian interests Bulk Gearless Michele D'Amato 76,440 2005 Tsuneishi Zosen 08-Aug around 17.7 Greek interests * En bloc Sales. #En Bloc price shown under first ship of bloc. Clarkson Research Services ii 05-Sep-14 L i c e n s e d
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2 7 7 8 7 Cargo Fleet Changes & Bunkers Cargo Fleet Oil Tanker Fleet Bulk Carrier Fleet Containership Fleet Changes... 2013 2014 to date 2013 2014 to date 2013 2014 to date (No. Vessels , 000dwt/teu) No. 000 Dwt No. 000 Dwt No. 000 Dwt No. 000 Dwt No. 000 Teu No. 000 Teu Fleet 1st January 5,759 492,618 5,820 501,883 9,490 679,224 9,917 721,407 5,108 16,239 5,115 17,134 Changes: Deliveries 196 21,450 116 10,483 780 62,103 433 33,935 201 1,336 143 1,097 Sold For Scrap 109 10,834 70 6,361 390 21,623 189 10,147 187 429 128 319 Losses 8 403 4 10 Misc. Additions 16 1,500 24 440 100 4,004 151 5,249 18 15 11 13 Misc. Removals 42 2,852 13 1,393 55 1,899 69 2,677 21 17 46 31 Net Change During Year 61 9,264 57 3,170 427 42,183 326 26,360 7 895 -20 760 Fleet End Yr/ Yr to Date 5,820 501,883 5,877 505,052 9,917 721,407 10,243 747,766 5,115 17,134 5,095 17,894 Tankers and bulkcarriers over 10,000 dwt only are included in the analysis in this table. Great Lakes Only vessels are excluded. Deliveries to the Cargo Fleet Type Date Vessel Name Flag Year Dwt Owner Shipyard & Yard No. Contracted Built Price Bulk Sep'14 Alkimos Heracles PA. 2014 81,922 Ariston Navigation Tsuneishi Zhoushan SS-147 Bulk Sep'14 San Fu 51004 PRC 2014 50,879 Taizhou Santai Taizhou Sanfu $m 25.00 Container Sep'14 Chowgule 7 IN. 2014 1,552 Chowgule S.S. Ltd. Chowgule S.B. C-217 Ro-Ro/Cnt Sep'14 Grande Lagos IT. 2014 30,990 Grimaldi Group Hyundai Mipo 8138 PSV Sep'14 SK Line 713 MY. 2014 4,000 Nam Cheong Marine Xiamen S.B. SK713 PSV Sep'14 Sea Swan CY. 2014 4,700 DESS Singapore Sinopacific Zhejiang ZJ2025 Container Sep'14 Wide Charlie M.I. 2014 65,152 Rickmers Reederei HHIC-Phil. Inc. P0106 Bulk Sep'14 CIC Oslo PA. 2014 159,180 Golden Union Hyundai H.I. 2665 $m 49.00 Bulk Sep'14 Majulah Singapura SG. 2014 57,982 Kambara Kisen Tsuneishi Cebu SC-178 PSV Sep'14 Stril Luna NO. 2014 5,346 Mokster Shipping Ast. Gondan C456 Edible Oil Sep'14 Seroja XIII IA. 2014 4,175 Usda Seroja Usda Seroja Chem & Oil Sep'14 Xing Tong 19 PRC 2014 4,141 Quanzhou Xingtong Kaihang S.B. Ind. Co MPP Sep'14 Huanghai Struggler H.K. 2014 31,000 Huanghai Shun An Spg Shandong Huanghai HCY-146 GCargo Sep'14 Ocean 03 VN. 2014 7,165 Binh Minh Intl Thai Son Shipbuildg S72-21 Bulk Sep'14 Spring Legend PA. 2014 56,104 Shunzan Kaiun K.K. Oshima S.B. Co. 10681 Bulk Sep'14 Devongate LI. 2014 61,517 Zodiac Maritime Agy. Dalian COSCO KHI DE017 Bulk Sep'14 IVS Phinda SG. 2014 37,720 Island View Shpg. Kanda S.B. Co. 543 Chem & Oil Sep'14 High Fidelity LI. 2014 50,000 D'Amico Soc. di Nav. Hyundai Vinashin S409 $m 29.00 Bulk Sep'14 Sbi Cakewalk M.I. 2014 81,600 Scorpio Bulkers Shanghai Waigaoqiao 1284 $m 27.50 Products Sep'14 Front Lion M.I. 2014 115,000 Frontline 2012 Guangzhou Longxue L0037 $m 42.00 Chem & Oil Sep'14 Alpine Maria LI. 2014 51,800 PMI Norteamerica SPP Shipbuilding H4098 Tanker Sep'14 Al Yarmouk KU. 2014 316,648 Kuwait Oil Tanker Daewoo 5391 L.N.G. Sep'14 Clean Planet M.I. 2014 89,995 Dynagas LNG Hyundai H.I. 2565 Bulk Sep'14 Amis Champion PA. 2014 61,000 Wisdom Marine Group Oshima S.B. Co. 10682 L.N.G. Sep'14 Pskov LI. 2014 94,700 Sovcomflot JSC STX Shipbuild. 1911 Bulk Sep'14 Max Oldendorff LI. 2014 205,000 Polembros Shipping Qidong Daoda DD034 $m 56.00 Container Sep'14 Katrin S AT. 2014 34,409 Schepers Reederei Jiangsu New YZJ YZJ2008-832C 3.00 Bulk Sep'14 Shining Bliss SG. 2014 81,996 K-Line Tsuneishi Zosen 1501 Regional 380 cst Low Sulphur 380 cst This Bunkers To date Aug Sep Avg. To date Aug Sep Avg. To date Aug Sep Week $/tonne 2014 29 5 2013 2014 29 5 2013 2014 29 5 (380cst) Rotterdam 873 845 848 617 617 572 575 594 575 563 563 STEADY Hamburg 925 903 885 639 638 617 583 605 584 573 565 DOWN -1.3% Great Belt 948 943 943 647 666 675 675 617 604 605 605 STEADY Falmouth 947 914 918 661 656 623 623 632 614 611 609 DOWN -0.3% Genoa 960 922 924 - - - - 617 604 587 584 DOWN -0.5% Gibraltar 949 907 909 655 656 619 633 622 599 585 581 DOWN -0.7% Philadelphia 1042 963 951 659 685 602 604 615 620 588 590 UP 0.4% Houston 985 957 960 661 671 628 635 602 591 568 578 UP 1.9% Cristobal 1033 998 998 701 738 686 686 618 604 584 588 UP 0.6% Los Angeles 978 985 975 771 752 725 728 631 606 577 590 UP 2.3% Japan - - - - - - - 657 648 625 628 UP 0.4% Singapore 916 893 885 - - - - 616 601 599 580 DOWN -3.1% Fujairah 980 985 1013 - - - - 617 604 598 609 UP 1.8% Clarkson Research Services iii MGO 05-Sep-14 L i c e n s e d
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2 7 7 8 7 Latest Tanker Timecharter Fixtures... Reported Charterer Vessel Name D / Year Dwt Ice LR Ext. Period Rate Delivery C Built equiv. $ per Day Date Place 29-Aug Ruhai Shipping Port Stanley D 2003 45,996 1 Yr around $14,000 Sep 14 25-Aug Scorpio Desh Samman D 2011 115,000 6 Mths/6 Mths $15,500/$16,000 Sep 14 West Coast India 25-Aug Koch Alam Bistari C 2001 47,065 3 Mths $13,250 Sep 14 20-Aug Clearlake Pyxis Delta C 2006 46,616 2-4 Mths $13,500 Sep 14 20-Aug Stena Weco St Katharinen C 2013 50,300 2-7 Mths $17,500/$16,500 Sep 14 19-Aug BP Bull C 2009 50,542 1 Yr $13,750 Sep 14 18-Aug Tesoro Chloe D 2011 321,300 2 Yrs $25,000 Sep 14 15-Aug Shell Tsakos LR1 TBN C 2016 5 Yrs $17,000 Jan 16 15-Aug Shell Tsakos LR1 TBN C 2016 5 Yrs $17,000 Jan 16 15-Aug Cape Tankers Hellespont Promise D 2006 73,726 1 Yr $15,500 Aug 14 15-Aug Cape Tankers Hellespont Pride D 2006 73,727 1 Yr $15,500 Aug 14 14-Aug BP Eurochampion 2004 D 2005 164,608 1C 2 Yrs + 12 Mths Floor + P Share Aug 14 13-Aug ST Shipping Zhongji No1 C 2008 46,345 1B 3 Mths around $13,000 Aug 14 12-Aug BP Euronike D 2005 164,565 1C 1 Yr/12 Mths RNR Aug 14 08-Aug Shell Tian E Zuo C 2012 75,588 1D 6 Mths/6 Mths $14,800/$15,400 Aug 14 06-Aug ST Shipping Mei Lin Wan C 2013 109,000 1D 1 Yr $16,000 Aug 14 01-Aug D'Amico Future Prosperity C 2010 48,045 1 Yr $13,000 Aug 14 01-Aug Koch Orfeas C 2008 73,711 Ext. 6 Mths $15,000 Aug 14 31-Jul Stena Weco Eships Taweelah C 2014 49,737 3 + 1 + 1 Yrs $16,200/$17,200/$18,000 Aug 14 31-Jul GS Caltex New Creation D 2009 297,293 5 Yrs $29,000 Aug 14 31-Jul Stena Weco Ecomaxx C 2015 50,000 3 + 1 + 1 Yrs $16,200/$17,200/$18,000 Jan 15 31-Jul Stena Weco Ecotank C 2016 50,000 3 + 1 + 1 Yrs $16,200/$17,200/$18,000 Jan 16 25-Jul Trafigura Theodosia C 2004 69,999 6 Mths $15,000 Jul 14 24-Jul Trafigura Suez Rajan D 2011 158,000 11-15 Mths $19,300 Aug 14 24-Jul Tesoro Jurkalne D 2006 52,622 1B 1 Yr/12 Mths $14,750/$15,500 Aug 14 24-Jul Tesoro Eships Liwa C 2008 47,097 6 Mths $14,100 Oct 14 22-Jul Koch Ardmore Seamaster C 2004 45,840 6 Mths RNR Aug 14 22-Jul Stena Weco Pula C 2006 46,941 3 + 3 Mths RNR Aug 14 Latest Dry Bulk Timecharter Fixtures... Reported Charterer Vessel Name Year Dwt Cbm Gear Period Rate Delivery Built $ per Day Date Place 04-Sep Chang Hong Shi Dai 2 2007 76,510 90,100 4-7 Months $8,350 Prompt Xiamen 02-Sep CNR Conti Lapislazuli 2011 57,001 71,500 4C x 30T 3-5 Months $10,500 Prompt Singapore 01-Sep Phaethon Hebei Zhangjiakou 2011 93,647 111,513 4-6 Months $9,500 30Aug-04Sep Zhanjiang 01-Sep Vitol Navios Altamira 2011 179,165 197,598 15-18 Months $23,000 02Sep-03Sep Pmo 29-Aug BTG Tian Lu Hai 2005 174,398 193,008 4-6 Months $23,000 Prompt Far East 29-Aug CNR Transtime 2012 56,726 71,634 4C x 30T 4-6 Months $8,750 Prompt Jebel Ali 29-Aug Phaethon Deep Seas 1999 72,891 85,428 3-5 Months $9,000 Prompt Zhoushan 28-Aug ED&F Man Shipping Star Globe 2010 56,868 71,500 4C x 30T 2-4 Months $10,000 Prompt North Spain 26-Aug CNR Aeolos 2001 31,651 40,141 4C x 30T 3-5 Months $8,000 05Sep Ecsa 26-Aug Cargill Golden Trust 1996 170,907 186,628 15-18 Months $19,750 27Aug-29Aug North China 21-Aug Western Bulk Carriers Navios Kypros 2003 55,000 69,428 4C x 35T 3-5 Months $11,350 Prompt South Korea 21-Aug Sivabulk Flag Mersinidi 2011 56,754 71,634 4C x 30T 2-4 Months $8,000 23Aug-26Aug Mundra 21-Aug RWE Maia 2009 82,193 97,294 12-16 Months $12,000 20Sep-30Sep Singapore 20-Aug Norden Densa Dolphin 2010 58,772 72,360 4C x 30T 3-5 Months $10,000 Prompt Taiwan 20-Aug Clipper Bianco Bulker 2001 52,193 67,500 4C x 30T 3-5 Months $10,500 Prompt Hong Kong 20-Aug Copenship Ci Yun Shan 2010 56,600 71,634 4C x 30T 5-7 Months $13,000 Prompt Us Gulf 18-Aug Rio Tinto Cape Agamemnon 2010 179,221 197,598 7-9 Months $23,500 20Aug-24Aug Lanshan 15-Aug K Noble ABYO Audrey 2011 175,125 198,122 12 Months $20,500 20Sep-30Sep Tubarao 15-Aug Klaveness Densa Pelican 2012 82,744 96,400 3-5 Months $10,500 14Aug-16Aug North China 15-Aug Jaldhi Densa Panther 2011 57,284 4C x 30T 3-5 Months $11,000 Prompt Nemrut Bay 14-Aug Cobelfret Golden Endeavour 2010 79,454 98,324 5-8 Months $11,000 18Aug-20Aug Ijmuiden 14-Aug CNR Sea Proteus 2013 81,762 98,091 4-6 Months $9,250 17Aug-20Aug Caofeidian 12-Aug CNR Prabhu Yuvika 2004 76,310 88,432 5-8 Months $9,250 01Aug-15Aug Japan 11-Aug GMI Ocean Qingdao 2011 75,618 90,109 4-8 Months $8,000 12Aug-15Aug Song Xia 08-Aug Classic Maritime Aquadiva 2010 182,060 11-15 Months $19,000 13Aug-18Aug Zhangjiang 08-Aug Clearlake Shipping Sea Gemini 2014 81,716 98,314 4-6 Months $8,250 13Aug-15Aug Hualien 07-Aug Intergis YM Virtue 2003 76,610 90,740 4-7 Months $8,100 11Aug-16Aug Qinhuangdao Clarkson Research Services iv 05-Sep-14 Timecharter Fixture Record L i c e n s e d
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2 7 7 8 7 The Timecharter Market Tanker Timecharter Market Timecharter Rates Average Rate $/day To Date Sep T/C Activity & The Freight Market 2011 2012 2013 2014 5 VLCC (Modern) One Year Timecharter 310,000 Dwt Modern 24,947 22,125 19,837 26,139 29,000 150,000 Dwt Modern 19,587 17,356 16,014 20,625 24,000 110,000 Dwt Modern 15,457 13,639 13,288 16,125 18,500 74,000 Dwt Modern 14,745 12,995 14,981 15,222 15,500 47-48,000 Dwt Modern 13,668 13,514 14,351 14,646 14,000 37,000 Dwt Modern 12,221 12,317 13,063 14,076 13,000 Three Year Timecharter 310,000 Dwt Modern 31,481 26,995 23,404 28,417 34,000 150,000 Dwt Modern 23,630 20,952 18,096 22,764 26,000 110,000 Dwt Modern 18,135 15,870 15,048 17,708 21,000 74,000 Dwt Modern 16,063 14,168 15,514 16,174 16,250 47-48,000 Dwt Modern 14,538 14,389 15,063 15,556 15,000 37,000 Dwt Modern 13,212 13,178 13,707 14,979 14,000 Five Year Timecharter 310,000 Dwt * Modern 33,899 30,827 27,481 30,833 35,000 110,000 Dwt* Modern 20,240 18,423 16,856 18,972 23,000 47-48,000 Dwt* Modern 15,077 14,962 15,567 16,201 15,750 T/C Activity To Date ...over 1 year 2010 2011 2012 2013 2014 VLCC 200,000 + 25 14 26 12 11 Suezmax 120-200,000 17 14 21 14 11 Aframax 80-120,000 45 12 21 42 24 Panamax 60-80,000 18 10 21 28 10 Handy 10-60,000 29 59 108 139 55 Total No. Fixtures 134 109 197 235 111 Total in m. dwt 17.9 11.3 20.1 18.9 11.1 Estimated owners' rates. Modern=no more than 10 years old. * Timeseries for all sizes available at www.clarksons.net. Bulk Carrier Timecharter Market Timecharter Rates Average Rate $/day To Date Sep T/C Activity & The Freight Market (Average Pac/Atl Delivery) 2011 2012 2013 2014 5 Capesize (Modern) One Year Timecharter Capesize Modern 16,938 13,685 15,760 24,465 21,500 Panamax Modern 14,663 9,706 10,099 12,778 11,375 Supramax Modern 14,108 10,130 10,034 11,910 12,000 Handysize Modern 11,587 8,234 8,106 9,413 8,750 Three Year Timecharter Capesize Modern 17,399 15,082 16,413 23,319 22,750 Panamax Modern 14,300 10,688 10,125 13,493 12,875 Supramax Modern 13,846 10,995 10,284 11,965 11,250 Handysize Modern 11,844 9,250 8,726 9,688 9,000 Five Year Timecharter Capesize Modern 18,726 16,798 17,303 23,257 22,750 Panamax Modern 14,428 11,798 10,870 14,319 13,875 Supramax Modern 14,082 11,755 10,928 12,028 11,250 Handysize Modern 12,115 10,250 9,385 9,847 9,000 T/C Activity To Date ...over 1 year 2010 2011 2012 2013 2014 Capesize 100,000 + 39 32 20 33 52 Panamax 65-100,000 149 72 55 78 63 Handymax 40-65,000 64 36 18 11 8 Handysize 10-40,000 12 7 3 1 2 Total No. Fixtures 264 147 96 123 125 Total in m. dwt 21.9 13.6 8.9 12.7 14.6 Tanker and bulk carrier T/C activity size ranges reflect existing CRSL ship type definitions. Modern is taken to mean no more than 10 years old. Clarkson Research Services Page 9 05-Sep-14 Total Fixtures Total Fixtures 0 5 10 15 20 25 30 35 40 45 50 0 1 2 3 4 5 6 A u g - 1 2 O c t - 1 2 D e c - 1 2 F e b - 1 3 A p r - 1 3 J u n - 1 3 A u g - 1 3 O c t - 1 3 D e c - 1 3 F e b - 1 4 A p r - 1 4 J u n - 1 4 A u g - 1 4 Spot $/day 1 Year t/c No. fixtures $,000/day 0 5 10 15 20 25 30 35 40 45 0 2 4 6 8 10 12 14 16 18 A u g - 1 2 O c t - 1 2 D e c - 1 2 F e b - 1 3 A p r - 1 3 J u n - 1 3 A u g - 1 3 O c t - 1 3 D e c - 1 3 F e b - 1 4 A p r - 1 4 J u n - 1 4 A u g - 1 4 1 Year t/c Spot $/day No. fixtures $,000/day Tanker timecharter activity this week Towards the end of last week Ruhai Shipping fixed the 2003-built, 45,996 dwt Handy tanker PORT STANLEY at rate of around $14,000/day for a period of one year. This brings the total number of reported timecharter fixtures over one year to 111 so far in 2014, representing 11.1m dwt. Bulk carrier timecharter activity this week This week, the 2011-built Capesize NAVIOS ALTAMIRA was chartered by Vitol for period of 15-18 months at a rate of $23,000/day. Short-term activity included the 1999-built Panamax DEEP SEAS which was chartered by Phaethon for 3-5 months at $9,000/day. L i c e n s e d
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2 7 7 8 7 The Shipbuilding Market What's Been Ordered... S Type Date Dwt/Unit Delivery Builder Price Owner/Manager* 5 Bulk Sep-14 34,500 Jun 2016 Shikoku Dock. Nissen Kaiun K.K. 5 Bulk Sep-14 34,500 Mar 2017 Shikoku Dock. Nissen Kaiun K.K. 5 Bulk Sep-14 34,000 Jan 2016 Hakodate Dock Chowgule S.S. Ltd. 5 Bulk Sep-14 34,000 Jan 2018 Hakodate Dock Chowgule S.S. Ltd. 5 Bulk Sep-14 34,000 Oct 2017 Hakodate Dock Blumenthal, Johann 5 Products Sep-14 29,000 Sep 2018 Onomichi Dockyd Samos Steamship 5 Bulk Sep-14 60,000 Jan 2018 Onomichi Dockyd Inui S.S. Co. Ltd. 5 Bulk Sep-14 63,000 2016 Imabari S.B. Empros Lines Shpg. 5 Bulk Sep-14 63,000 2016 Imabari S.B. Empros Lines Shpg. 5 Dump/Fallpipe Sep-14 14,000 Jan 2016 Sinopacific Zhejiang Van Oord 5 AHTS Aug-14 3,000 8,000 Mar 2016 Jiangsu Dajin HI RMB m 120.00 Shanghai Changhai 5 AHTS Aug-14 3,000 8,000 May 2016 Jiangsu Dajin HI RMB m 120.00 Shanghai Changhai 5 AHTS Aug-14 2,700 Feb 2016 Alianca S.Y. Brasileira Offshore 5 AHTS Aug-14 2,700 Apr 2016 Alianca S.Y. Brasileira Offshore 5 AHTS Aug-14 2,700 Jun 2016 Alianca S.Y. Brasileira Offshore 5 AHTS Aug-14 2,700 Aug 2016 Alianca S.Y. Brasileira Offshore 5 L.P.G. Aug-14 26,000 21,850 May 2017 Hyundai Mipo StealthGas 5 L.P.G. Aug-14 26,000 21,850 Aug 2017 Hyundai Mipo StealthGas 5 Diving Spt Aug-14 8,000 Jan 2017 Shanghai Zhenhua UDS 17 Diving Spt Aug-14 8,000 Dec 2017 Shanghai Zhenhua UDS 17 PSV Aug-14 4,000 Apr 2016 Wuchang S.B. Otto Marine 17 PSV Aug-14 4,000 Jun 2016 Wuchang S.B. Otto Marine 17 PSV Aug-14 4,000 Aug 2016 Wuchang S.B. Otto Marine S=Status, where: 5=confirmed order, 16=unconfirmed order, 17=option. Other units are: teu for containerships, cbm for gas vessels, numbers of cars or passengers. * The Primary Reference Company, as used in the Clarkson Fleet Database i.e. the company with the main commercial responsibility for the ship. Newbuilding Year End, $m. Three Month Shipbuilding News 2011 2012 2013 Sep Tankers VLCC 320,000 dwt 99.0 93.0 94.0 98.0 WEAKER.... -2.2% Suezmax 157,000 dwt 60.5 56.5 59.5 65.0 WEAKER.... -0.8% Aframax 115,000 dwt 52.5 48.0 52.3 53.5 WEAKER.... -1.8% 'MR' Tanker 51,000 dwt 35.5 34.0 34.8 37.0 WEAKER.... -0.4% Bulk Carriers Capesize 180,000 dwt 48.5 46.0 53.5 55.3 WEAKER.... -3.6% Panamax 76,000 dwt 29.0 25.8 27.8 29.8 WEAKER.... -0.3% Handymax 62,000 dwt 27.0 24.3 26.5 27.8 WEAKER.... -0.3% Handysize 35,000 dwt 22.5 21.0 22.3 23.5 WEAKER.... -0.4% Gas Vessels LPG 82,000m 73.0 70.0 74.5 79.0 WEAKER.... -0.7% LNG 160,000m 202.0 199.5 198.0 200.0 SAME....... Dry Cargo Container 13,000 teu 128.0 107.0 113.5 115.5 WEAKER.... -1.0% Container 2,750 teu 38.3 30.5 31.5 32.0 SAME....... Pure Car Carrier 6,000 ceu 67.0 64.5 66.5 66.0 WEAKER.... -2.7% Clarkson Index 139 126 133 139 WEAKER.... -0.4% Newbuilding Vessels Contracted Year-on-Year Newbuilding Price Index 2011 2012 2013 2014 Oil Tankers 127 100 173 97 WEAK. -17% Chemical & Spec. Tankers 110 150 343 122 WEAK. -48% LPG Carriers 25 56 123 86 FIRM....... 3% LNG Carriers 53 39 46 32 FIRM....... 3% Bulk Carriers 601 366 1200 492 WEAK. -40% Containerships 251 79 259 94 WEAK. -47% General Cargo Vessels 98 71 96 55 WEAK. -16% Ro-Ro Vessels 24 45 59 18 WEAK. -55% Refrigerated Vessels 3 1 1 Offshore Vessels 479 531 465 194 WEAK. -39% FPSO/FSU 6 8 5 6 FIRMER... 77% Passenger & Cruise Ships 22 37 49 22 WEAK. -34% Other Misc. Vessels 37 25 15 6 WEAK. -41% TOTAL CONTRACTING 1,836 1,508 2,834 1,224 WEAK. -36% Clarkson Research Services Page 10 05-Sep-14 Prices .... Trend ... Activity .... Trend ... Newbuilding prices vary as to country of build, delivery and ship specification. Prices here are end year/latest and from Jun-08 assume a "European spec", 20/20/20/20/20% payments and "first class competitive yards" quotations, and relate to market contracts where these have taken place and to brokers' best estimates when no contracts have occurred. 3-month trend basis last 3 vs previous 3 months. 100 110 120 130 140 150 160 170 180 190 200 A u g - 0 4 A u g - 0 5 A u g - 0 6 A u g - 0 7 A u g - 0 8 A u g - 0 9 A u g - 1 0 A u g - 1 1 A u g - 1 2 A u g - 1 3 A u g - 1 4 Ten year trend in newbuilding prices Index, Jan'88 = 100 There are a number of orders to report this week. In the dry sector, contracting activity was focused on small/mid-size vessels with Empros Lines ordering 2 x 63,000 dwt Ultramax vessels at Imabari S.B. Delivery of both vessels is due in 2016. Meanwhile, Inui S.S. Co. Ltd. ordered a 60,000 dwt Ultramax bulker at Onomichi Dockyard. Delivery of the ship is due in January 2018. In the Handysize sector, Nissen Kaiun K.K. ordered 2 x 34,500 dwt bulkers at Shikoku Dock. These are the 2 nd and 3 rd vessels in this series and are due for delivery in 2016 and 2017 respectively. In the containership sector, it has come to light that the Scorpio Group ordered 3 + 3 x 19,200 TEU containerships at Samsung H.I. in August. These vessels are amongst the largest containerships currently on order and they are believed to have been contracted against a charter to MSC. Delivery of the firm vessels is scheduled to begin from the middle of 2016 with the options, if declared, due for delivery into 2017. L i c e n s e d
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2 7 7 8 7 The Demolition Market What's Been Scrapped... Type Date Vessel Name Flag Blt Dwt Ldt Owner Buyer $/ldt $ m. Pass/Car F. Sep '14 Super Liner Ogasawara 2006 925 Unknown Japan Cruise Sep '14 Club Harmony 1969 6,121 12,491 Polaris Shipping Co As is Korea Reefer Sep '14 Majestic 1980 4,337 2,936 Silver Star Ltd. Bangladesh 452.0 1.33 GCargo Sep '14 Ace 1990 8,123 2,579 Unknown Old sale GCargo Sep '14 Soleil 1983 6,658 2,382 Dergham Marine SA Pakistan 453.0 1.08 Bulk Sep '14 Shahriar Jahan 1985 37,568 7,453 Brave Royal Shipping Old sale Bulk Sep '14 Brave Royal 1984 34,607 6,880 Brave Royal Shipping Old sale Bulk Sep '14 Bramco 2 1984 54,500 12,458 Bramco WLL Old sale Tanker Sep '14 Overseas Eliane 1994 94,813 17,079 Overseas Shipholding As is S'pore 515.0 8.80 MPP Sep '14 Feng Shun Shan 1985 18,277 COSCO Shipping Co. Old sale Container Sep '14 Marcajama 1996 18,355 6,775 Marconsult As is Malta 418.0 2.83 Bulk Sep '14 Jin Pei 1993 15,571 China Shipping Bulk Old sale Bulk Aug '14 Bao Wang 1992 20,407 China Shipping Bulk Old sale Bulk Aug '14 Ba Da Ling 1985 20,333 Yinhua Shipping Old sale Bulk Aug '14 Zhen Fen 10 1985 19,509 China Shipping Bulk Old sale Bulk Aug '14 Zhen Fen 9 1986 19,509 China Shipping Bulk Old sale Chem & Oil Aug '14 Jin Hai Lian 1984 3,671 Shanghai Jinhai Shpg Old sale Tanker Aug '14 Olympic Flair 1991 150,092 22,933 Olympic Shipping As is Khor Fakkan 525.0 12.04 Pass Aug '14 Atlantis 1967 2,169 IBII Turkey Reefer Aug '14 Summer Wind 1985 13,636 Chartworld Shpg. Old sale Container Aug '14 Meratus Spirit 2 1989 13,226 Pelayaran Meratus Bangladesh 479.0 MPP Aug '14 Topaz II 1980 17,169 Gulf of Aden Shpg. Old sale Bulk Aug '14 Princess Vanya 1989 70,329 9,143 Cyprus Maritime Co. India 514.0 4.70 Scrap Year End ($/ldt) This Year Scrapping Price Trends Prices... 2011 2012 2013 Latest % Tankers 480 420 435 485 12% Dry Cargo 455 405 425 485 14% Buyer Year (m dwt) This Year Activity... 2011 2012 2013 2014 % China 9.6 12.0 11.3 5.2 -34% India 14.1 18.4 11.8 7.2 -12% Bangladesh 10.6 13.6 12.0 4.4 -47% Pakistan 5.4 10.2 9.5 5.0 -24% Other 3.0 4.2 2.7 2.0 6% TOTAL 42.7 58.4 47.2 23.9 -27% Size & Year (m dwt) This Year Type... 2011 2012 2013 2014 % Demolition Market News Tankers VLCC 3.3 2.7 5.0 2.6 -24% Suezmax 1.1 3.0 1.0 0.8 10% Aframax 2.5 3.5 2.7 1.9 2% Handy 2.8 2.3 2.4 1.1 -34% < 10,000 dwt 0.2 0.2 0.1 0.1 14% Total Tankers 10.0 11.8 11.1 6.4 -16% Bulkcarriers Capesize 10.5 11.7 8.1 3.3 -41% Panamax 5.2 8.7 4.9 2.5 -27% Handymax 2.2 4.7 3.5 1.7 -31% Handysize 5.3 8.3 6.7 2.6 -43% Total Bulkers 23.2 33.4 23.2 10.1 -37% Containerships 1.2 4.9 6.3 4.5 4% Gas Vessels 0.5 0.2 0.4 0.2 -13% Other Dry 7.7 8.0 6.2 2.5 -41% TOTAL 42.7 58.4 47.2 23.9 -27% * The % change is based on annualised figures for this year against last year. Clarkson Research Services Page 11 05-Sep-14 PA. BD. IA. SV. CY. Note: The scrap prices ($/ldt) are based on Indian prices for VLCC tankers and a Handy dry bulk carrier of around 8,000 ldt. PRC PRC PRC PRC PRC GR. BA. PA. M.I. PRC AT. PRC JA. M.I. SK. CS. TG. BA. 300 325 350 375 400 425 450 475 500 525 550 Sep '12 Nov '12 Jan '13 Mar '13 May '13 Jul '13 Sep '13 Nov '13 Jan '14 Mar '14 May '14 Jul '14 Sep '14 US$ per ldt Tankers - India Handy Bulk - India Tankers - Bangladesh The market has remained relatively dormant this week. A number of the cash buyers appear to be bidding on the expectation that the lack of tonnage supply will help stimulate the market. However, if domestic steel and currency markets fail to improve, they may struggle to resell at a profit. The lack of sales completed during the summer may aid this speculation. The only question is: will there be sufficient supply to satisfy the breakers requirements at each recycling destination? The Pakistani market continues to offer the best rates; however, reports suggest that the majority of the breakers are satisfied with the tonnage in hand and may reconsider the numbers placed on the table. The Indian market is still suffering the effects of the recent currency issues and the volatility of the steel market. Therefore we see no evidence of breakers adjusting their rates upwards, though the market has not softened. Bangladesh is clearly struggling as breakers are reportedly unable to shift the steel from their yards so demand for new tonnage is limited. Severe flooding has had a serious effect on short-term demand; however, in the long-term the rebuilding programme will hopefully rectify this. L i c e n s e d
*% change year-on-year. Source: IMF, OECD, The Economist. ~Currency units per US$ except , Euro and SDR. # Forward Rates: The FT. Interest Rate Trends ... Inflation & Prices Prices in $/bbl or $/t Prime Lending Rates: Consumer Prices Crude Grain Steel $ Libor Oil Wheat Ship Plate avg: 6 mths. avg: Brent USG Japan 2011 1.25% 1.50% 6.35% 1.48% 3.25% 0.51% 2011 3.2% 3.2% 0.0% 2.9% 111.30 335 803 2012 0.88% 1.50% 6.26% 1.48% 3.25% 0.69% 2012 2.9% 2.1% 0.0% 2.3% 110.57 333 686 2013 0.54% 1.50% 6.00% 1.48% 3.25% 0.41% 2013 1.9% 1.5% 0.4% 1.6% 108.24 322 621 Jun 0.15% 1.50% 6.00% 1.48% 3.25% 0.32% Jun 1.4% 2.1% 3.6% 2.1% 114.29 320 590 Jul 0.15% 1.50% 6.00% 1.48% 3.25% 0.33% Jul 1.2% 2.0% 3.4% 1.9% 105.39 283 590 Aug 0.15% 1.50% 6.00% 1.48% 3.25% 0.33% Aug 0.0% 0.0% 0.0% 0.0% 99.88 285 590 05-Sep 0.05% 1.50% 6.00% 1.48% 3.25% 0.33% Latest 0.0% 0.0% 0.0% 0.0% 100.64 274 590 Clarkson Research Services Page 12 May '14 1.2% 2.2% 4.3% 1.0% -0.2% #Forward Rates as of: 05-Sep Euro U.K. China Japan U.S.A. USA Japan OECD 05-Sep-14 1.5% Industrial Production Eur The European Central Bank has lowered its benchmark interest rate for the second time in 2014, to a record low of 0.05%, following a cut from 0.25% to 0.15% in June. The Bank also announced a bond-buying program in an attempt to add financial liquidity, encourage lending, and combat the risk of deflation. Economic growth in the Eurozone has continued to struggle this year, and recent indicators suggest that the recovery remains fragile. Growth in manufacturing activity in the region reportedly fell to its slowest pace in 15 months in August, while in Germany, the Eurozones largest economy, GDP reportedly fell by 0.2% q-o-q in Q2 2014. Growth in the Indian economy reached 5.7% y-o-y in Q2 2014, the fastest pace of expansion in more than two years. Consumer and business confidence has improved as a result of policies introduced by the central bank and the recent election of a new government, reportedly leading to increased spending and manufacturing activity in recent months. -25 -20 -15 -10 -5 0 5 10 15 20 25 30 J a n
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2 7 7 8 7 Ship Demand Trends Oil Tanker million barrels per day % Chg Demand .... 2011 2012 2013 2014* 2014/13 Oil Production World 88.2 90.0 90.3 91.2 1% USA 7.9 8.9 10.0 10.9 9% Middle East 27.5 27.9 27.7 28.0 1% West Africa 5.5 5.5 5.4 5.2 -3% South & Central America 7.1 7.1 7.1 7.1 0% North Africa 3.2 4.1 3.5 2.9 -17% VLCC Demand AG Exports to China 2.9 2.8 3.0 3.3 10% to Japan 2.9 2.9 2.9 2.8 -3% to Korea 2.1 2.1 2.0 2.0 -1% to USA/UKC 2.4 2.6 2.5 2.7 9% Total Gulf Crude Exports 18.3 18.1 17.9 18.2 2% Crude Oil Trade Imports: USA (seaborne) 6.7 6.1 5.1 4.9 -6% EU-5 6.0 6.1 5.7 5.5 -5% China 4.6 4.9 5.1 5.7 10% Total Seaborne Imports 37.2 38.2 36.8 36.8 0% Products Trade Imports: USA 1.9 1.6 1.5 1.5 -2% EU-5 2.6 2.5 2.6 2.5 0% Latin America 1.4 1.7 1.7 2.0 20% Asia 7.2 7.4 7.8 8.0 2% Total Seaborne Imports 19.0 19.2 20.1 20.8 3% *2014 data are projections. Oil production data shows total supply including crude oil, lease condensates and NGLs; world supply includes refinery gains, other liquids. Dry Bulk million tonnes % Chg Demand .... 2011 2012 2013 2014* 2014/13 Steel Production P.R. China 684.3 708.8 774.6 806.5 4% Japan 107.6 107.2 110.6 108.4 -2% EU-27 182.0 169.4 166.0 171.6 3% Total Steel Prod. (listed) 974 985 1051 1086 3% Iron Ore Trade Imports: China 665.4 723.5 794.9 901.8 13% Japan 128.4 131.1 135.9 134.3 -1% South Korea 64.9 66.0 63.4 71.6 13% Total Seaborne Imports 1052.7 1110.2 1189.5 1311.9 10% Exports: Australia 437.8 493.7 579.0 678.1 17% Coal Trade Imports: ** China 165.6 228.7 264.9 275.4 4% India 127.2 158.1 175.3 196.0 12% Japan 169.9 179.2 186.1 187.5 1% South Korea 124.0 122.5 123.0 124.8 2% Exports: ** Australia 271.9 308.4 344.9 366.6 6% USA 90.9 107.4 100.0 93.6 -6% Total Seaborne Coal Trade 1000.2 1123.2 1179.3 1228.9 4% *2014 data are projections. ** Steam coal, lignite & coking coal. World Seaborne million tonnes % Chg Trade 2011 2012 2013 2014* 2014/13 Crude Oil 1,851 1,901 1,831 1,831 0% Oil Products 915 923 965 997 3% Dry Bulk 3,841 4,098 4,329 4,521 4% Containers 1,404 1,453 1,532 1,629 6% Other 1,188 1,214 1,260 1,336 6% World Seaborne Trade 9,199 9,589 9,918 10,315 4% y-o-y growth 4.5% 4.2% 3.4% 4.0% Data based on latest available information at start Jan-00. For more detail see Seaborne Trade & Tonne-Mile Tables on Shipping Intelligence Network and World Fleet Monitor. Clarkson Research Services Page 13 05-Sep-14 0 10 20 30 40 50 60 70 80 150 175 200 225 250 275 300 325 350 375 J u l - 1 0 O c t - 1 0 J a n - 1 1 A p r - 1 1 J u l - 1 1 O c t - 1 1 J a n - 1 2 A p r - 1 2 J u l - 1 2 O c t - 1 2 J a n - 1 3 A p r - 1 3 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4 $,000/day Index Steel Production Index Capesize Earnings Steel Production and Capesize Earnings Major Oil Trades News: It was reported this week that Russian oil production in August rose 1% m-o-m to 10.5m bpd, partly driven by an increase in condensate output. Although Russia has been the subject of a number of sanctions, they have not adversely affected the oil sector, although they may af- fect some future projects. Seaborne crude exports from the FSU are expected to increase by 2% y-o-y in 2014. Meanwhile, estimated output from Saudi Arabia totalled 9.8m bpd in August. 0 10 20 30 40 50 60 70 27 28 29 30 31 32 33 34 J u l - 1 0 O c t - 1 0 J a n - 1 1 A p r - 1 1 J u l - 1 1 O c t - 1 1 J a n - 1 2 A p r - 1 2 J u l - 1 2 O c t - 1 2 J a n - 1 3 A p r - 1 3 J u l - 1 3 O c t - 1 3 J a n - 1 4 A p r - 1 4 J u l - 1 4 $,000/day m. bpd OPEC Production & VLCC Earnings OPEC Oil Production VLCC Earnings Major Bulk Trades News: In August 2014, shipments of iron ore from Port Hedland, Australia, reached a record 37.4mt, bringing total shipments from the port in the first eight months of the year to 268.3mt, up 33% y-o-y. Firm growth has been driven by the scheduled ramp up of Australian iron ore production this year. Overall, Australian iron ore exports are projected to rise 17% y-o-y in full year 2014. Twelve iron ore mines in the state of Jharkhand, India, have been ordered to stop production after failing to renew licenses. Iron ore production in the state supplies a significant share of ore used by the domestic steel industry. It is indicated that this will disrupt domestic supply, and could further limit Indian iron ore exports this year. L i c e n s e d
2 7 7 8 7 World Fleets & Orderbooks LNG Carrier Year End Orderbook & Delivery Schedule Fleet ,000m 2010 2011 2012 2013 No. ,000m No. ,000m % Fleet 2014 2015 2016+ <40,000 cbm 230 277 293 231 24 231 14 380 164.5% 0 212 168 40-60,000 cbm 122 122 0 0 0 0 0 0 #DIV/0! 0 0 0 60-100,000 cbm 1,295 1,070 1,070 982 12 911 0 0 0.0% 0 0 0 >100,000 cbm 50,014 51,672 51,851 54,128 363 56,446 121 20,228 35.8% 4,001 4,944 11,284 TOTAL FLEET 51,661 53,142 53,214 55,342 399 57,588 135 20,608 35.8% 4,001 5,156 11,452 TOTAL M. DWT 28.2 28.9 29.0 30.1 31.3 10.8 34.5% 2.1 2.7 6.0 Containership Year End Orderbook & Delivery Schedule Fleet ,000 Teu 2010 2011 2012 2013 No. ,000teu No. ,000teu % Fleet 2014 2015 2016+ 100-999 teu 735.0 728.7 706.8 686.9 1,088 673.0 5 3.6 0.5% 0.8 2.3 0.5 1-2,999 teu 3,592.4 3,609.6 3,484.9 3,401.4 1,864 3,356.1 147 278.2 8.3% 47.3 100.6 130.2 3,000 &+ teu (Panamax) 3,940.6 3,957.3 3,935.4 3,764.1 866 3,630.7 5 16.4 0.5% 10.2 3.1 3.1 3-7,999 teu (Post-Pmax) 2,918.7 3,215.1 3,415.0 3,667.4 648 3,755.8 59 291.0 7.7% 105.3 143.5 42.2 8-11,999 teu (Post-Pmax) 2,471.8 2,805.2 3,118.7 3,541.2 444 3,948.0 138 1,288.0 32.6% 167.4 715.7 404.9 12,000 &+ teu (Post-Pmax) 544.1 1,005.0 1,574.3 2,055.3 183 2,523.0 94 1,465.6 58.1% 131.7 861.7 472.2 TOTAL FLEET 14,202.5 15,320.9 16,235.1 17,116.3 5,093 17,887.1 448 3,342.7 18.7% 462.8 1,826.8 1,053.2 TOTAL M. DWT 183.7 196.7 206.5 216.0 224.3 39.1 17.4% 5.5 21.1 12.4 Multipurpose Year End Orderbook & Delivery Schedule Fleet ,000 Teu 2010 2011 2012 2013 No. ,000teu No. ,000teu % Fleet 2014 2015 2016+ 100 - 499 teu 557.1 552.4 551.9 547.2 2,161 543.7 26 8.9 1.6% 4.4 3.3 1.2 500 - 999 teu 556.2 574.6 578.1 560.2 802 552.0 72 48.8 8.8% 8.3 18.9 21.7 1000 &+ teu 245.4 290.3 334.3 398.8 292 418.7 33 65.1 15.6% 5.6 45.0 14.5 TOTAL FLEET 1,358.7 1,417.3 1,464.3 1,506.2 3,255 1,514.4 131 122.9 8.1% 18.3 67.2 37.4 MPP FLEET M. DWT 28.2 28.7 29.1 29.4 29.5 2.2 7.4% 0.4 1.2 0.7 GC FLEET M. DWT 36.0 35.1 34.3 34.1 15,038 33.9 67 0.5 1.3% 0.3 0.2 0.0 Ro-Ro Vessel Year End Orderbook & Delivery Schedule Fleet, m. Dwt 2010 2011 2012 2013 No. m.Dwt No. m.Dwt % Fleet 2014 2015 2016+ <5,000 dwt 1.3 1.2 1.1 1.1 696 1.1 1 0.0 0.0% 0.0 0.0 0.0 5,000-10,000 dwt 2.6 2.5 2.4 2.4 322 2.3 5 0.0 1.3% 0.0 0.0 0.0 10,000 &+ dwt 5.1 5.1 5.0 4.7 244 4.6 24 0.7 16.1% 0.2 0.4 0.1 TOTAL FLEET 9.0 8.8 8.6 8.2 1,262 8.0 30 0.8 9.7% 0.3 0.5 0.1 CAR CARRIERS 10.4 11.2 11.7 11.9 766 12.1 68 1.5 12.6% 0.2 0.7 0.6 Reefer Vessel Year End Orderbook & Delivery Schedule Fleet m. ft. 2010 2011 2012 2013 No. m.ft No. m.ft % Fleet 2014 2015 2016+ < 200,000 cu ft 53.5 51.3 48.4 47.8 983 47.4 0 0.0 0.0% 0.0 0.0 0.0 200-449,999 cu ft 97.1 89.8 76.0 74.9 247 73.9 0 0.0 0.0% 0.0 0.0 0.0 > 450,000 cu ft 132.6 125.8 112.8 109.6 190 105.4 0 0.0 0.0% 0.0 0.0 0.0 TOTAL FLEET 283.1 267.0 237.2 232.3 1,420 226.7 0 0.0 0.0% 0.0 0.0 0.0 TOTAL M. DWT 6.2 5.9 5.2 5.1 5.1 0.0 0.0% 0.0 0.0 0.0 Owner Fleets by Year End Orderbook & Delivery Schedule Nationality, m. GT 2010 2011 2012 2013 No. m. GT No. m. GT % Fleet 2014 2015 2016+ Greece 132.0 143.1 151.4 164.5 4,994 175.6 531 30.4 17.3% 3.7 13.3 13.3 Japan 138.4 147.5 155.4 158.8 8,581 161.3 315 14.6 9.0% 3.2 4.7 6.6 China P.R. 86.6 99.6 110.3 117.3 6,583 118.5 649 32.4 27.4% 7.3 12.1 13.1 Germany 86.6 95.0 97.9 95.8 4,126 94.5 278 11.3 12.0% 1.9 3.8 5.7 United States 47.1 49.5 49.9 51.6 4,978 54.8 264 9.7 17.7% 1.6 2.5 5.5 Clarkson Research Services Page 15 Note: All fleet figures are from the Clarkson Research Ship and Orderbook Databases, expressed in the units indicated. All dwt figures are metric. Annual data are as at year end, monthly data at the beginning of the month. The databases comprise vessels of 100gt and above. For access to more detailed fleet data visit World Fleet Register at www.clarksons.net/wfr. * Value of the world fleet based on estimates of the value of each vessel based on type, size and age. For specialised and non-cargo vessels, coverage may not be complete. Value of the orderbook based on reported newbuilding contract prices wherever possible and estimated contract prices adjusted for vessel type, size and the date of the contract elsewhere. For more detail see World Fleet Monitor. A "Sources & Methods" document which describes the methodology by which Clarkson Research Services gathers and processes the data set out in this report, including the calculation of voyage earnings for tankers and bulk carriers, is available on our website at www.clarksons.net. Further enquiries may be made to the addresses set out on the back page. 05-Sep-14 01-Sep-14 01-Sep-14 01-Sep-14 01-Sep-14 01-Sep-14 01-Sep-14 L i c e n s e d
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2 7 7 8 7 Analysis
Energy is shippings biggest single market, accounting for 43% of the cargo moved in 2013 4.3 billion tonnes. Oil is still the big dog, with 2.8 billion tonnes of cargo and the coal trade has now reached 1.2 billion tonnes. Which leaves gas as the junior partner in the energy triangle with 307 million tonnes of trade in 2013, of which 244 million tonnes was LNG and an estimated 63 million tonnes was LPG. Shipping Intelligence Weekly, 05 September 2014 Published by: Clarkson Research Services Limited St. Magnus House, 3, Lower Thames Street, London EC3R 6HE, England. Tel: + (44) (0) 20 7334 3134 E-mail: sales.crs@clarksons.co.uk On-line Shop: http://www.crsl.com Website: http://www.clarksons.com/research Shipping Intelligence Network: http:/www.clarksons.net World Fleet Register: http://www.clarksons.net/wfr Editorial Board: Managing Director Stephen Gordon Research Director Trevor Crowe Analysis Martin Stopford Publisher Rob Benson Editor Samantha Barnwell Clarkson Contacts: S&P J. Brynteson Tankers R. Knight Specialised R. Whittet Gas J.R. Evans Dry Cargo M. Goodall Containers J. Tolstrup-Moller Freight Derivatives A. Gray Offshore P. Middleton Shipping Intelligence Weekly is published 50 times a year. It reviews the markets for crude, products, specialised and gas tankers, bulkcarriers, liner and offshore vessels as well as the secondhand, newbuilding and demolition markets. It provides details of freight rates, earnings, prices and activity in these markets along with fleet statistics, trade data, and economic indicators. It is available on subscription at a price of 800/865 a year (within Europe/outside Europe) including postage.
Whilst care has been taken in the production of this review, no liability can be accepted for any loss incurred in any way what- soever by any person who may seek to rely on the information contained herein. The information in this report may not be reproduced without the written permission of Clarkson Research Services Limited. The Crown Prince Of Energy
LNG may still be the junior partner in ton- nage, but it is widely seen as a future seed corn trade for the maritime busi- ness. This positive perception rests on two foundations. Firstly there are enor- mous reserves of stranded natural gas located so far from the worlds major con- sumer zones that sea transport is the only way to bring the product to market. Secondly natural gas is a clean fuel, in an era which is becoming increasingly pre- occupied with reducing emissions of car- bon and other pollutants into the atmos- phere.
Fight For The Title
But its not all plain sailing and LNG is up against some tough competition coal and oil and in the three way fight for market share which lies ahead it has a few strategic disadvantages. Oil, the ulti- mate portable energy source, has the land and air transport fuel market nailed down. In this market the need to maintain LNG at a temperature of -162C makes competition extremely difficult, and cre- ates limitations to the wider use of LNG as a transport fuel.
The other major market is power genera- tion and here LNG is on firmer ground. Once the storage and re-gasification fa- cilities have been installed, LNG is the ideal clean fuel. The problem is that in this market coal is a long established and devastating competitor. Coal is generally much cheaper than gas and more widely available. In contrast gas supplies are more limited, requiring major investment, and are often located in difficult geopo- litical areas. Speedy Growth
Despite these disadvantages, the LNG trade has turned in a spritely growth per- formance. Since 1984 imports by coun- tries east of Suez have grown by a CAGR of 5.8%, and by 6.5% west of Su- ez (despite a slowdown in 2012-13). Compared with the growth of the oil trade when it developed more than a century ago, this is super-fast. 44 years since the first LNG shipment by sea to Asia, global trade in 2013 reached 532m cbm, or 244m tonnes, with a fleet of 31m dwt. For comparison, after 44 years seaborne oil trade only reached 55m tonnes and the tanker fleet was just 9.5m dwt (in 1928). This is a reminder that although LNG has not been an easy ride, things take time and LNGs growth path is pretty dynamic (though not without its problems - in the 1980s one third of the fleet was laid up).
Trending But Tricky
If current growth trends continue, LNG trade could reach one billion tonnes in the 2030s. It is easy to believe that there will be demand in an energy hungry world for this clean fuel, despite its limitations. But in the meantime LNG is a niche play- er, trading luxury fuel to price sensitive markets. Which makes it tricky, even for the big boys. Have a nice day. Graph of the Week Energy On The Move - LNG By Sea The red line and blue bars on the graph show LNG imports by sea in million cubic metres by coun- tries east and west of Suez re- spectively. The dotted lines show exponential trend lines for the two series. Source : Clarkson Research Services LNG Trade - Dynamic Growth In The Energy Competition 0 50 100 150 200 250 300 350 400 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 0 1 9 9 2 1 9 9 4 1 9 9 6 1 9 9 8 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 2 0 0 8 2 0 1 0 2 0 1 2 m cbm LNG imports, west of Suez LNG imports, east of Suez LNG imports by countries west of Suez 1984-2013 grew by a CAGR of 5.8% LNG imports by countries east of Suez 1984-2013 grew by a CAGR of 6.5% L i c e n s e d