1. business and industrial

Weekly Market Report
Issue: Week 12 | Tuesday 24th March 2015
Market insight
By Katerina Restis
Tanker Chartering
The 1st of January 2015, as broadly reported, denoted the beginning date of
new and progressive emission regulations for vessels operating within the
Sulphur Emission Control Areas (SECAs) particularly established for the control and minimization of SOx and NOx emissions. As per MARPOL Annex VI
new guidelines, vessels are obliged to burn bunkers with a maximum of
0.10% Sulphur content in the main, auxiliary engines and boilers, within the
SECAs whereas up to December 2014, the Sulphur content limit was no
more than 1.00%. The SECAs presently covers the North Ocean, Baltic
Ocean, North American coastline and US Caribbean. Furthermore, existing
EU Law already requires ships whilst in EU ports to use fuels with 0.1% Sulphur content while at berth, unless they use shore-side electricity.
In order for vessels to comply with the new requirements they need to
switch to ultra-low Sulphur fuel types and currently the most viable option
seems to be Low Sulphur Marine Gas Oil. The changeover from HFO to
LSMGO sensibly poses technical and operational challenges as the two fuels
operate at a different temperature, in addition to increased risk of thermal
shocks to machinery, as well as the difference in viscosity that needs to be
considered in order to avoid fuel pump failures. Vessels may also comply
with the SOx/NOx restrictions with the use of Exhaust Gas Cleaning Systems
that “clean” the emissions before released into the atmosphere though it
should be noted that the installation costs remain substantial.
Furthermore, SOx emissions from shipping may also be controlled with the
use of alternative fuels, LNG or bio-fuels. It is indicated that LNG use as a
marine fuel remains cheaper than MGO and stands as a better choice in
terms of reserve to production ratio. Its use to propel ships represents a
“green” alternative, with 0% Sulphur content, while when ignited has nearly
zero Oxide emissions. It does not affect the operational qualities of the vessel though specialized training for crew members is essential. Wartsila, Rolls
Royce Marine, Mitsubishi and MAN are the main manufacturers of gas or
dual fuel engines for ships. The technical, safety requirements and investment costs signify higher suitability for new-buildings. At present, the most
immediate difficulty is the limited available infrastructure for bunkering the
aforesaid vessels. Moreover, bio-fuels are an alternative to lower carbon
concentration in the propulsion of ships. For instance, biodiesel and vegetable oils can be used partly in diesel engines or as an alternative for HFO consumption. However there is not sufficient practical experience and currently
they are more expensive than oil products.
The employment of the new restrictions on how freight rates reflecting the
new market criteria is yet to be integrated into charter-party agreements.
The Worldscale Association published a fixed differential of $48.35 per mile
to embody the cost of burning 0.1% Gasoil within the SECAs, compared to
the 380 CST fuel oil grade delivered basis Rotterdam used to calculate
Worldscale flat rates. Ship-Owners and brokers are incorporating new ways
to negotiate the additional emerged costs into their charter contracts. The
definition of these costs or which party should carry their burden, nevertheless still remains ambiguous.
To conclude with, the main industry debate is that of the ability of implementation of these new regulations rather than that of compliance. In essence, Owners need to evaluate any return on investment in new technology with the risks and remarkable increased costs of higher price of lowSulphur fuel, but also the cost of technological failure caused by burning low
-Sulphur fuel. In the longer term, the staging of compliance will most probably adjust to market conditions.
Chartering (Wet: Softer - / Dry: Stable + )
Despite the fact that indices across the board were pointing up on Friday, it seems there might still be a long way to go before this actually
means something, as every time numbers appear to be poised for a
reversal, the Dry Bulk market is quick to pull back in key trading regions.
The BDI closed today (24/03/2015) at 597 points, up by 3 points compared to Monday’s levels (23/03/2015) and an increase of 29 points
compared to previous Tuesday’s closing (17/03/2015). A continuously
busier West Africa market provided some much needed support to VL
rates that were witnessing slower activity in Middle East for yet another
week. The BDTI Monday (23/03/2015) was at 786 points, a decrease of
23 points and the BCTI at 672, an decrease of 50 points compared to
previous Monday’s (16/03/2015) levels.
Sale & Purchase (Wet: Stable- / Dry: Stable- )
Bring on the bulkers! SnP activity considerably firmed last week on the
back of a remarkable increase in dry bulk sales, with HandymaxSupramax tonnage proving most popular amongst Buyers, who in their
impressive majority were Greek. On the tanker side, we had the sale of
the “TAKASUZU” (279,989dwt-blt 00, Japan), which was sold to Greek
owners, New Shipping for a price in the region of $26.5m. On the dry
bulker side, we had the resale of the “SBI KRATOS” (63,500dwt-blt 16,
China), which was reported being sold on subjects to Greek buyers for a
price in the region of $24.5m.
Newbuilding (Wet: Stable- / Dry: Stable-)
The number of newbuilding orders reported in the market last week
remained in line with recent activity volumes, with tanker orders still
enjoying the lion’s share amongst them and prices pretty much in line
with the market as despite the steady flow of tanker orders of late, it
seems that it is still hard for yards to make a case for a premium nowadays. At the same time it is no surprise that ordering interest over at the
dry bulker side remains sluggish especially when it comes to the larger
sizes, while the fact that despite the enormous pressure rates have been
under the Capesize newbuilding price is still holding above the average
of both 2012 and 2013, is definitely another reason to believe that further price corrections might be on the way. In terms of recently reported deals, Singaporean owner, BW Group, exercised an option for a pair
of LR1s (73,800dwt) at STX , in S. Korea, for a price of $ 46.9m and delivery set in March of 2017.
Demolition (Wet: Stable- / Dry: Stable- )
Demolition activity remained firm last week, with most notably additional Capesize vessels heading for scrap, while prices remained stable
across the board. Following a prolonged period of time during which
adverse developments dominated the demo market, there was at last
something considerably positive in the air as last week came to an end.
The observed slowdown in Chinese steel production seems to have finally allowed for an improvement of steel prices across the Indian subcontinent, and despite the fact that we have yet to witness the spill
overs on demo prices, sentiment has admittedly improved amongst
Breakers. At this point and given the amount of pressure the market has
been under during the past months, no one can argue with certainty
that the shift in sentiment will extend over the following days, but
should this happen, we expect current market levels to become the
floor for the next month or so with subcontinent Breakers intensifying
their competition. Prices this week for wet tonnage were at around 230395 $/ldt and dry units received about 215-370 $/ldt.
Wet Market
Spot Rates
Indicative Period Charters
Routes
WS points $/day
$/day
2014
2013
WS
points
$/day
±%
$/day
$/day
265k MEG-JAPAN
50
46,227
52
47,600
-2.9%
30,469
21,133
280k MEG-USG
26
29,319
28
31,663
-7.4%
17,173
7,132
260k WAF-USG
64
60,789
65
61,743
-1.5%
40,541
26,890
130k MED-MED
88
46,662
110
64,170 -27.3% 30,950
17,714
130k WAF-USAC
81
40,923
99
50,077 -18.3% 24,835
13,756
130k BSEA-MED
93
54,722
104
67,641 -19.1% 30,950
17,714
80k
MEG-EAST
107
31,122
107.0
30,404
2.4%
19,956
11,945
80k
MED-MED
122.5
41,625
103
31,060
34.0% 28,344
13,622
80k
UKC-UKC
95
23,127
95
26,126
-11.5%
33,573
18,604
70k
CARIBS-USG
129
32,061
170
46,243 -30.7% 25,747
16,381
75k
MEG-JAPAN
107
31,602
106
29,905
5.7%
16,797
12,011
55k
MEG-JAPAN
128
27,187
128
26,490
2.6%
14,461
12,117
37K
UKC-USAC
155
22,552
185
27,110 -16.8%
10,689
11,048
30K
MED-MED
170
25,921
190
30,693 -15.5% 18,707
17,645
55K
UKC-USG
115
24,437
125
26,898
23,723
14,941
55K
MED-USG
115
22,765
125
25,402 -10.4% 21,089
12,642
50k
CARIBS-USAC
115
20,609
165
33,959 -39.3% 25,521
15,083
-9.1%
TC Rates
$/day
VLCC
Suezmax
Aframax
Panamax
MR
Handy
size
- 12mos
-
- 'SKS SPEY'
- $28,000/day
2007
158,000 dwt
- Shell
-12 mos
-
- 'PRISCO IRINA '
- $15,250/day
2009
50,000 dwt
- Koch
TD3
TD4
TD6
TC1
TC2
TC5
DIRTY - WS RATES
TD9
220
170
120
70
20
WS poi nts
Dirty
Clean
Aframax
Suezmax
VLCC
Vessel
Week 11
WS poi nts
Week 12
240
220
200
180
160
140
120
100
80
60
Week 12
Week 11
±%
Diff
2014
2013
300k 1yr TC
40,000
40,000
0.0%
0
28,346
20,087
300k 3yr TC
41,000
41,000
0.0%
0
30,383
23,594
150k 1yr TC
33,000
33,000
0.0%
0
22,942
16,264
150k 3yr TC
33,000
33,000
0.0%
0
24,613
18,296
110k 1yr TC
23,000
23,000
0.0%
0
17,769
13,534
110k 3yr TC
23,000
23,000
0.0%
0
19,229
15,248
75k 1yr TC
21,000
21,000
0.0%
0
16,135
15,221
75k 3yr TC
18,500
18,500
0.0%
0
16,666
15,729
VLCC
300KT DH
81.0
CLEAN - WS RATES
TC6
Indicative Market Values ($ Million) - Tankers
Vessel 5yrs old
Mar-15 Feb-15
±%
2014
2013
2012
80.6
0.5%
73.6
56.2
62.9
52k 1yr TC
15,250
15,000
1.7%
250
14,889
14,591
Suezmax
150KT DH
58.5
59.0
-0.8%
50.2
40.1
44.9
52k 3yr TC
15,000
15,000
0.0%
0
15,604
15,263
Aframax
110KT DH
45.0
45.0
0.0%
38.6
29.2
31.2
75KT DH
36.0
35.6
1.1%
32.8
28.0
26.7
52KT DH
25.0
25.6
-2.4%
27.2
24.7
24.6
36k 1yr TC
14,000
14,000
0.0%
0
14,024
13,298
LR1
36k 3yr TC
14,000
14,000
0.0%
0
14,878
13,907
MR
Chartering
Sale & Purchase
With activity in the Middle East still softening, the crude carriers market
was for another week turning for support to the West Africa region, where
things continue to be admittedly busier overall. Saying that, we believe that
following a few weeks during which tonnage is being drawn away from the
MEG region, the market there is due to find some sort of balance that could
possibly lead to an upward correction, given of course that WAF business
remains firm, while the continuously softening bunker prices are also expected to keep supporting TCE levels. Rates for VLs closed off the week
slightly down, with both the Eastbound and Westbound voyage giving up a
couple of WS points, while despite the fact that sentiment has been a bit
more conservative lately, we expect April to be supportive of rates given
firm Far East demand.
In the VLCC sector we had the sale of the “TAKASUZU” (279,989dwt-blt 00,
Japan), which was sold to Greek owners, New Shipping for a price in the
region of $26.5m.
In the MR sector we had the sale of the “SEAGLORY” (47,149dwt-blt 03,
Japan), which was sold to Middle Eastern buyers, for $15.0m.
Rates for Suezmaxes remained under downward pressure last week, as
demand in the WAF region kept softening, with VL tonnage being preferred
by charterers, while rates offered in the Black Sea/Med region were also
pointing down at the end of the week.
Aframaxes noted a mixed picture last week, with cross-Med rates firming
substantially on the back of stronger regional demand, while things were
sluggish elsewhere, with the Caribs Afra continuing to correct downwards
despite the fact that the region witnessed increased fresh business.
© Intermodal Research
24/03/2015
2
Dry Market
Baltic Indices
Indicative Period Charters
Point
Diff
$/day
±%
2014
2013
Index
Index
1,097
1,205
BDI
591
BCI
423
$4,174
378
$3,982
45
4.8%
1,943
2,106
BPI
617
$4,941
585
$4,692
32
5.3%
960
1,186
BSI
635
$6,638
606
$6,334
29
4.8%
937
983
BHSI
384
$5,667
368
$5,363
16
5.7%
522
562
562
29
- 9 to 12 mos
- Huangpu 22/27 Mar
- 'BULK MONACO '
- $ 7,000/day
2008
76,596dwt
-Priminds
- 5 to 8 mos
- Karaikal 18/23 Mar
- 'JAG AARATI'
- $ 7,350/day
2011
80,677dwt
-Klaveness
Baltic Indices
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
BCI
Index
Week 11
13/03/2015
Index
$/day
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
AVR 4TC BCI
$/day
Week 12
20/03/2015
Index
$/day
±%
Diff
2014
2013
Capesize
170K 6mnt TC
Week
11
8,250
0.0%
0
22,020
17,625
170K 1yr TC
10,000
10,000
0.0%
0
21,921
15,959
170K 3yr TC
11,500
11,500
0.0%
0
21,097
16,599
Handysize Supramax Panamax
Period
Week
12
8,250
76K 6mnt TC
7,750
7,500
3.3%
250
12,300
12,224
$/day
76K 1yr TC
7,750
7,500
3.3%
250
12,259
10,300
76K 3yr TC
9,000
9,000
55K 6mnt TC
8,000
7,750
0.0%
0
13,244
10,317
3.2%
250
12,008
55K 1yr TC
8,250
11,565
8,000
3.1%
250
11,589
10,234
55K 3yr TC
30K 6mnt TC
8,500
8,500
0.0%
0
11,585
10,482
6,750
6,750
0.0%
0
9,113
8,244
30K 1yr TC
7,250
7,250
0.0%
0
9,226
8,309
30K 3yr TC
7,750
7,750
0.0%
0
9,541
8,926
BPI
BSI
BHSI
BDI
Average T/C Rates
AVR 4TC BPI
AVR 5TC BSI
AVR 6TC BHSI
Chartering
To see green across the board is a rare occurrence in the Dry Bulk market
nowadays and while the upside in which last week closed off is not of the
extend that could turn sentiment around, it was still more than welcome
across the market. The geared sizes are steadily ahead of the bigger segments, while macro data on the Chinese economy is still coming in short of
expectations and consequently still weighing down on sentiment for Capes.
The price of iron ore, which seems to be caught on a vicious downward
spiral, has noted a fresh low for the year, while a big part of the market is
placing the revival of iron ore imports from China on this very slide and the
subsequent close down of local producers.
The average rate for Capes regained the $ 4,000/day level last week, which
of course is hardly great news, but in the midst of uninspiring activity across
both basins throughout the week, this slight upward correction might well
be a sign that a floor is being created for the big bulkers.
Indicative Market Values ($ Million) - Bulk Carriers
Vessel 5 yrs old
Mar-15 Feb-15
±%
2014
2013
2012
Capesize
180k
35.7
36.8
-2.9%
47.3
35.8
34.6
Panamax
76K
17.7
18.6
-5.1%
24.5
21.3
22.7
Supramax
56k
18.7
19.5
-4.3%
24.7
21.5
23.0
Handysize
30K
14.0
15.3
-8.2%
19.5
18.2
18.2
Sale & Purchase
In the Ultramax sector, we had the resale of the “SBI KRATOS” (63,500dwtblt 16, China), which was reported being sold on subjects to Greek buyers
for a price in the region of $24.5m.
In the Handymax sector we had the sale of the “RAMADAN
QUEEN” (46,412dwt-blt 05, Japan), which also went to Greek owner, New
Trade for $8.6m.
Activity in the Atlantic Panamax continued to be primarily driven by East
Coast South America, with charterers only taking a pause just before the
weekend, while despite the fact that the region has been drawing an increased number of ballasters, rates managed to hold around last dones. At
the same time the period market remained active, while out of the Pacific
rates were positional.
Rates for the smaller size segment continued to improve last week on the
back of stable enquiry across most key trading regions. Supramax tonnage
saw rates trending sideways just before Friday, while Handies held onto the
good numbers reported recently throughout the week.
© Intermodal Research
24/03/2015
3
Secondhand Sales
Tankers
Size
Name
Dwt
Built
Yard
VLCC
TAKASUZU
279,989
2000
MR
SEAGLORY
47,149
MR
ESHIPS SAMA
SMALL
TRANS TRADER
M/E
SS due
Hull
Price
Buyers
Comments
MITSUBISHI
NAGASAKI, Ja pa n
Mi ts ubi s hi Ma y-15
DH
$ 26.5m
Greek (New
Shi ppi ng)
2003
ONOMICHI, Ja pa n
MAN-B&W Ma y-18
DH
$ 15.0m
MIddl e Ea s tern
45,663
2005
SHIN KURUSHIMA
ONISHI, Ja pa n
Mi ts ubi s hi
Jun-15
DH
$ 15.0m
Si nga porea n
(Wi l s on Oi l )
8,801
2005
SHITANOE , Ja pa n
MAN-B&W
Apr-15
DH
$ 10.3m
Europea n
Price
Buyers
Comments
$ 11.0m
Turki s h
(Ka rdeni z)
for convers i on to
fl oa ting power
ba rge
$ 27.3m
undi s cl os ed
4 X 30t
CRANES
$ 24.5m
Greek
Apr-16
4 X 30t
CRANES
$ 11.5m
Greek
StSt
Bulk Carriers
Size
Dwt
Name
Built
Yard
M/E
SS due
Gear
CAPE
ABYO FOUR
172,639
1999
CONSTANTA,
Roma ni a
B&W
KMAX
SBI MERENGUE
81,560
2016
TSUNEISHI
ZHOUSHAN HUL,
Chi na
MAN-B&W
UMAX
SBI KRATOS
63,500
2016
CHENGXI
SHIPYARD CO LT,
Chi na
MAN-B&W
SMAX
C. S. RAINBOW
55,725
2006
MITSUI TAMANO,
MAN-B&W
Ja pa n
HMAX
RAMADA QUEEN
46,412
2005
OSHIMA
SHIPBUILDING,
Ja pa n
B&W
Jun-15
4 X 30t
CRANES
$ 8.6m
Greek (New
Tra de)
HMAX
AFRICAN SUN
45,208
1994
KANASASHI TOYOHASHI,
Ja pa n
Mi ts ubi s hi
Dec-18
4 X 25t
CRANES
$ 3.8m
Greek
HMAX
HELLENIC
HORIZON
44,809
1995
HALLA ENG & HI INCHE, S. Korea
B&W
Ma r-15
4 X 25t
CRANES
$ 3.7m
Greek
HMAX
BAY RANGER
43,125
1995
OSHIMA
SHIPBUILDING,
Ja pa n
Sul zer
4 X 25t
CRANES
$ 4.6m
undi s cl os ed
HANDY
AEC FAITH
37,700
2015
NAIKAI ZOSEN INNOSHI,
MAN-B&W
4 X 30t
CRANES
$ 21.0m
Greek
HANDY
ZIEMIA LODZKA
26,264
1992
TURKIYE GEMI
PENDIK, Turkey
Sul zer
$ 1.9m
undi s cl os ed
a s -i s Ca s a bl a nca
Comments
Sep-19
Apr-17
on s ubs
ba nk dea l
SS/DD fres hl y
pa s s ed
Gas/LPG/LNG
Type
Name
Dwt
Built
Yard
M/E
SS due
Cbm
Price
Buyers
LPG
PETRO
MILLENNIUM
3753
2000
SHIN KURUSHIMA
IMABARI, Japan
Akas aka
Apr-15
3,526
$ 4.3m
Vi etnames e
© Intermodal Research
24/03/2015
4
Secondhand Sales
MPP/General Cargo
Name
Dwt
Built
Yard
M/E
SS due
AMANDA
5,780
2005
MARITIM SP Z OO,
Pol a nd
Ma K
Ma r-15
SOFIA
5,780
2005
MARITIM SP Z OO,
Pol a nd
Ma K
Jun-15
AACHEN
5,780
2004
MARITIM SP Z OO,
Pol a nd
Ma K
Gear
Price
Buyers
undi s cl os ed
Germa n (HS
Schi ffa hrts )
Comments
Containers
Size
Name
Teu
Built
Yard
PMAX
YM NEW JERSEY
4,923
2006
KOYO MIHARA,
Japan
PMAX YM LOS ANGELES
4,923
2006
SUB
MAERSK JURONG
PMAX
2,824
2008
SUB
PMAX
2,758
SUB
PMAX
CAPE MADRID
CAPE MAAS
2,758
© Intermodal Research
KOYO MIHARA,
Japan
M/E
SS due
MAN-B&W Nov-16
MAN-B&W Dec-16
HYUNDAI MIPO
DOCKYARD, S. MAN-B&W Jun-18
Korea
GUANGZHOU
2011 WENCHONG SHI, Wartsila Jun-16
China
GUANGZHOU
2011 WENCHONG SHI, Wartsila Apr-16
China
24/03/2015
Gear
Price
Buyers
Comments
Greek (Diana)
incl. TC to Yang
Ming at
$21,000/day
Turkish (Arkas)
incl. TC back to
Maersk at
$18,650/day
$ 21.5m
$ 21.5m
$ 17.0m
$ 16.0m
undisclosed
$ 16.0m
5
Newbuilding Market
Indicative Newbuilding Prices (million$)
Vessel
Gas
Tankers
Bulkers
Capesize
180k
Kamsarmax 82k
Panamax
77k
Ultramax
63k
Handysize
38k
VLCC
300k
Suezmax
160k
Aframax
115k
LR1
75k
MR
50k
LNG 160k cbm
LGC LPG 80k cbm
MGC LPG 55k cbm
SGC LPG 25k cbm
Week
12
52.5
29.0
28.5
26.0
22.0
96.5
65.0
53.5
46.0
36.5
190.0
78.0
68.0
46.0
Week
11
52.5
29.0
28.5
26.0
22.0
96.5
65.0
53.5
46.0
36.5
190.0
78.0
68.0
46.0
±%
2014 2013 2012
0.0% 55.8 49
0.0% 30.4 27
0.0% 29.2 26
0.0% 27
25
0.0% 23
21
0.0% 98.6 91
0.0% 65
56
0.0% 54
48
0.0% 45.9 41
0.0% 36.9 34
0.0% 186.0 185
0.0% 78.4 71
0.0% 66.9 63
0.0% 44.3 41
47
28
27
25
22
96
58
50
42
34
186
71
62
44
The number of newbuilding orders reported in the market last week remained in line with recent activity volumes, with tanker orders still enjoying
the lion’s share amongst them and prices pretty much in line with the market
as despite the steady flow of tanker orders of late, it seems that it is still hard
for yards to make a case for a premium nowadays. At the same time it is no
surprise that ordering interest over at the dry bulker side remains sluggish
especially when it comes to the larger sizes, while the fact that despite the
enormous pressure rates have been under the Capesize newbuilding price is
still holding above the average of both 2012 and 2013, is definitely another
reason to believe that further price corrections might be on the way.
In terms of recently reported deals, Singaporean owner, BW Group, exercised an option for a pair of LR1s (73,800dwt) at STX , in S. Korea, for a price
of $ 46.9m and delivery set in March of 2017.
Bulk Carriers Newbuilding Prices (m$)
Tankers Newbuilding Prices (m$)
VLCC
Suezmax
Aframax
LR1
MR
Capesize
110
Panamax
Supramax
Handysize
90
140
mi l lion $
mi l lion $
180
100
70
50
60
30
20
10
Newbuilding Orders
Units
Type
Size
Yard
Delivery
Buyer
Price
2
Tanker
115,000 dwt
Sungdong S.B., S.Korea
2016
Greek (Thenamaris)
$ 56.0m
2
Tanker
73,800 dwt
STX SB (Jinhae),
S.Korea
3/2017
Singaporean (BW Group))
$ 46.9m
LR1, options
1
Tanker
6,366 dwt
Tersan, Turkey
6/2016
Germany (Gefo
Gesellschaft)
undisclosed
chemical
2
Bulker
82,000 dwt
Jiangsu Jinling, China
2018
1
Gas
38,000 cbm
2
MPP
28,000 dwt
2
MPP
12,500 dwt
© Intermodal Research
Hyundai Mipo, S.
Korea
Hudong Zhonghua,
China
Jiangzhou Union,
China
Chinese (Qingdao Da Tong) undisclosed
Comments
LR2/options, total 4
on order
3 on order
5/2017
S. Korean (KSS Line)
$ 52.0m
4+8/2018
Chinese (COSCO Shipping)
$ 40.0m
hea vy l i ft (700T
SWL)/options
2016
German (Auerbach
Schiffahrt)
undisclosed
heavy lift, options
24/03/2015
6
Demolition Market
Indicative Demolition Prices ($/ldt)
Dry
Wet
Markets
Bangladesh
India
Pakistan
China
Bangladesh
India
Pakistan
China
Week
12
385
380
395
230
370
365
370
215
Week
11
385
380
395
230
370
365
370
215
±%
Demolition activity remained firm last week, with most notably additional
Capesize vessels heading for scrap, while prices remained stable across the
board. Following a prolonged period of time during which adverse developments dominated the demo market, there was at last something considerably positive in the air as last week came to an end. The observed slowdown in
Chinese steel production seems to have finally allowed for an improvement
of steel prices across the Indian subcontinent, and despite the fact that we
have yet to witness the spill overs on demo prices, sentiment has admittedly
improved amongst Breakers. At this point and given the amount of pressure
the market has been under during the past months, no one can argue with
certainty that the shift in sentiment will extend over the following days, but
should this happen, we expect current market levels to become the floor for
the next month or so with subcontinent Breakers intensifying their competition. Prices this week for wet tonnage were at around 230-395 $/ldt and dry
units received about 215-370 $/ldt.
2014 2013 2012
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
469
478
471
313
451
459
449
297
422
426
423
365
402
405
401
350
440
445
444
384
414
419
416
365
The highest price amongst recently reported deals, was that paid by Bangladeshi breakers for the Capesize “SILVER MERCHANT” (151,066dwt-17,970ldtblt 95), which received a price of $413/ldt.
Dry Demolition Prices
550
500
450
400
350
300
250
200
Bangladesh
India
Pakistan
China
$/l dt
$/l dt
Wet Demolition Prices
550
500
450
400
350
300
250
200
Bangladesh
India
Pakistan
China
Demolition Sales
Name
Size
Ldt
Built
Yard
Type
$/ldt
Breakers
Comments
AQUAHOPE
167,105 22,093
1997
HALLA ENG & HI SAMHO, S. Korea
BULKER
$ 400/Ldt
Pakistani
incl. 2000T ROB
ANANGEL
SOLIDARITY
161,643 19,406
1993
HYUNDAI HEAVY
INDS - U, S. Korea
BULKER
$ 380/Ldt
Bangladeshi
as-is Singapore
SILVER MERCHANT
151,066 17,970
1995
NKK CORP - TSU,
Japan
BULKER
$ 413/Ldt
Bangladeshi
incl. 1800T ROB
LIVORNO EXPRESS
43,714
13,186
1991
SAMSUNG, S. Korea
CONT
$ 250/Ldt
Turkish
ZAIZOOM
4,350
2,171
1979
IMABARI IMABARI,
TANKER
Japan
$ 325/Ldt
Pakistani
GREEN LINE
3,389
1,050
1985
TANKER
$ 325/Ldt
Pakistani
BYAR ALI
1,165
548
1981
AT PERAMA, Greece TANKER
$ 310/Ldt
Pakistani
© Intermodal Research
IVAN DIMITROV,
Bulgaria
24/03/2015
7
Commodities & Ship Finance
19-Mar-15
18-Mar-15
17-Mar-15
16-Mar-15
1.930
2,108.10
5,026.42
18,127.65
7,022.51
3,788.26
5,087.49
12,039.37
19,560.22
24,375.24
248.29
1.08
1.50
120.05
0.12
6.21
1,113.50
87.40
1.980
2,089.27
4,992.38
17,959.03
6,962.32
3,758.09
5,037.18
11,899.40
19,476.56
24,468.89
246.45
1.07
1.48
120.76
0.12
6.20
1,121.60
88.45
1.930
2,099.50
4,982.83
18,076.19
6,945.20
3,747.38
5,033.42
11,922.77
19,544.48
24,120.08
249.60
1.08
1.50
120.04
0.12
6.23
1,111.90
87.33
2.060
2,074.28
4,937.43
17,849.08
6,837.61
3,694.39
5,028.93
11,980.85
19,437.00
23,901.49
248.09
1.06
1.48
121.29
0.12
6.25
1,129.30
88.97
2.100
2,081.19
4,929.51
17,977.42
6,804.08
3,679.48
5,061.16
12,167.72
19,246.06
23,949.55
246.12
1.06
1.48
121.38
0.12
6.27
1,130.75
89.02
W-O-W
Change %
-9.4%
2.7%
3.2%
2.1%
4.2%
3.8%
1.5%
-1.1%
1.6%
2.3%
2.8%
3.1%
1.4%
-1.1%
2.3%
-0.7%
-2.2%
-2.2%
Basic Commodities Weekly Summary
Oil WTI $
oil
Gold $
1,350
60
1,300
55
1,250
50
1,200
45
1,150
40
1,100
20-Mar-15 13-Mar-15
Rotterdam
Houston
Singapore
Rotterdam
Houston
Singapore
Maritime Stock Data
Company
Oil Brent $
65
gold
Bunker Prices
MDO
10year US Bond
S&P 500
Nasdaq
Dow Jones
FTSE 100
FTSE All-Share UK
CAC40
Xetra Dax
Nikkei
Hang Seng
DJ US Maritime
$/€
$/₤
¥/$
$ / NoK
Yuan / $
Won / $
$ INDEX
20-Mar-15
380cst
Currencies
Stock Exchange Data
Market Data
499.0
585.0
509.0
288.5
287.5
310.5
520.5
631.5
534.5
299.0
320.0
330.0
W-O-W
Change %
-4.1%
-7.4%
-4.8%
-3.5%
-10.2%
-5.9%
Finance News
Stock
Curr. 20-Mar-15 13-Mar-15
Exchange
W-O-W
Change %
AEGEAN MARINE PETROL NTWK
NYSE
USD
14.56
13.49
7.9%
BALTIC TRADING
NYSE
USD
1.38
1.44
-4.2%
BOX SHIPS INC
CAPITAL PRODUCT PARTNERS LP
COSTAMARE INC
NYSE
USD
NASDAQ USD
NYSE
USD
0.77
9.82
18.75
0.87
9.29
18.57
-11.5%
5.7%
1.0%
DANAOS CORPORATION
NYSE
USD
6.11
6.21
-1.6%
DIANA SHIPPING
NYSE
USD
6.37
6.48
-1.7%
DRYSHIPS INC
NASDAQ USD
0.80
0.85
-5.9%
EAGLE BULK SHIPPING
NASDAQ USD
9.39
9.37
0.2%
EUROSEAS LTD.
FREESEAS INC
GLOBUS MARITIME LIMITED
NASDAQ USD
NASDAQ USD
NASDAQ USD
0.73
0.07
1.21
0.75
0.08
1.51
-2.7%
-12.5%
-19.9%
GOLDENPORT HOLDINGS INC
LONDON GBX
124.78
124.00
0.6%
HELLENIC CARRIERS LIMITED
LONDON GBX
17.00
17.25
-1.4%
NAVIOS MARITIME ACQUISITIONS
NYSE
USD
3.52
3.45
2.0%
NAVIOS MARITIME HOLDINGS
NYSE
USD
4.50
4.29
4.9%
NAVIOS MARITIME PARTNERS LP
NYSE
USD
9.75
11.77
-17.2%
PARAGON SHIPPING INC.
NYSE
USD
1.21
1.31
-7.6%
SAFE BULKERS INC
SEANERGY MARITIME HOLDINGS CORP
STAR BULK CARRIERS CORP
STEALTHGAS INC
TSAKOS ENERGY NAVIGATION
TOP SHIPS INC
NYSE
NASDAQ
NASDAQ
NASDAQ
NYSE
NASDAQ
USD
USD
USD
USD
USD
USD
3.66
0.71
3.30
6.61
7.80
1.08
3.29
0.90
3.37
6.03
7.28
1.06
11.2%
-21.1%
-2.1%
9.6%
7.1%
1.9%
“Navios takes flight
Shares of Navios Maritime Partners gained traction
today in the wake of an endorsement from a forecaster at Deutsche Bank. The Greek operator’s New
York-listed stock, which trades under the symbol
“NMM”, jumped 11.17% in the hour leading up to the
close before topping out at $10.84.
Observers note the spike followed an upgrade issued
by Amit Mehrotra, an equity analyst at Deutsche
Bank.
The researcher stamped the operator with a “buy”
rating, a move he attributed to a recent decline in the
company’s share price.
“Last week’s 17% decline in NMM shares has taken us
off the sidelines and into the 'Buy' camp,” Mehrotra
told clients.
“The resulting 18% distribution yield and management’s strategically smart move away from dry bulk
toward sustainability of containerships, should support shares at current levels and justify upside from
here.”
The forecaster also argued that now is a “particularly
good time to buy” since seasonal weakness in the dry
-bulk segment is expected to end in the coming
weeks.
“As such, our upgrade to ‘Buy’ from ‘Hold’ is opportunistic following the sharp sell-off in shares, which
we view as the baby (NMM shares) being thrown out
with the bathwater (dry bulk) without regard for
NMM's unique investment points,” he added.” (Aaron Kelley, Trade Winds)
The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way
whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
Compiled by Intermodal Research & Valuations Department | research@intermodal.gr
Ms. Eva Tzima | e.tzima@intermodal.gr
Mr. Vassilis Logothetis | v.logothetis@intermodal.gr
You can contact us directly by phone or by e-mailing, faxing or posting the
below form completed with all your details:
Tel: +30 210 6293 300
Fax:+30 210 6293 333-4
Email: research@intermodal.gr
Intermodal Shipbrokers Co.
17th km Ethniki Odos Athens-Lamia & 3 Agrambelis street,
145 64 N.Kifisia,
Athens - Greece
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24/03/2015
9