S & P

Most of the sales reported this week in the Dry S+P market are concerned older units. In the Panamaxes the M/V SPIRIT OF RIO (72,578 dwt 1987 blt Mitsui) has be sold for US$ 4m to Chinese buyers which represents a price slightly excess Chinese demolition levels.

In the Handymax sector, understand that the M/V ROGUE (42,223 dwt 1991 blt Oshima) is sold for region US$ 5.9m while in the Handysizes the M/V TASMAN ID (22,050 dwt 1994 blt Saiki) has been sold to Chinese buyers for US$ 4.8m. The M/V APACHE MAIDEN (23,325 dwt 1987 blt Kurushima) obtained US$ 2.5m. Syrian buyers are understood to have purchased the M/V PAN DYNAMIC (26,717 dwt 1985 blt Shin Kurushima) for US$ 2.7m while the one year younger and with much better SS/DD position M/V TALA (26,849 dwt 1986 blt Usuki) is sold at US$ 3.6m to undisclosed buyers.

In contrast to the dry sector, it has been an active week in the Tanker Sale and Purchase market with a number of recent inspections now resulting in sales.

The reported sale of the M/T TOKACHI (280,973 dwt 1999 blt IHI) continues the steady flow of 'pre‐2000' built tonnage sold this year. The ship has changed hands from c/o NYK in Japan to c/o Nathalin in Thailand at US$ 27m. Nathalin have been among the more active buyers over the last 18 months targeting both the VLCC and Aframax sectors. A further VLCC is reported sold to Russian buyers, the M/T KENSINGTON (298,437 dwt 1995 blt Daewoo), at a price of US$ 24.5m.

The Daiichi managed aframax M/T KINKO MARU (105,433 dwt 2003 blt Namura) has been sold to clients of Bakri Navigation at region US$ 16.8m. D’Alesio’s IMO III, M/T ANTIGNANO (40,113 dwt 2002 blt Hyundai) reported sold for US$ 14.15m to Italian buyers.

The non IMO III, M/T FREJA OCEAN (47,045 dwt 2002 blt Onomichi) has been sold at US$ 12.85m to UAE based Buyers. This price again surpassed expectations with the market expecting a lower price reflecting recently concluded sales on similar tonnage as well as a vessel where surveys were due imminently.

The M/T MAX SCHULTE (34,999 dwt 1999 blt Guangzhou) has been sold to Greek buyers for US$ 8.6m.

Of older tonnage, the M/T GENMAR AJAX (96,183 dwt 1996 blt Samsung) has been sold for US$ 7.5m to South East Asian clients. The price represents about a US$ 1 million premium to the demolition market.

NEWBUILDING

With shipyards in the major exporting regions all reporting and exhibiting significant year on year drops in new contracting activity, there is no doubt that the market continues to remain challenging,

particularly for the larger and more conventionally orientated facilities. With conventional demand so far being focused primarily on the mid‐sized segments of the market, those yards geared up for the larger spectrum of asset class have found 2012 a struggle. Fundamentally, aside from the depressed nature of the shipping markets, it has been the volatility and constraints of the macro financial environment that have been a real and key inhibitor for shipbuilding and particularly investment into the capital intensive asset segments of the market.

For the moment, the market therefore remains largely price orientated, with the key drivers behind investment decisions being seemingly focused on a long term play on depressed asset values. It remains to be seen as to when Owners will have enough confidence in the larger segments of the market, to commit investment against the same motivation and with shipyards under continuing pressure, it is very much a game of wait and see as to when values become enticing enough again and more importantly whether the macro environment will exhibit enough stability to allow for this to translate into actual contracting activity.

In terms of reported business: In dry, it has now finally been reported that Clients of Norse

Management (UK) Ltd have ordered two option two 82,000 dwt Kamsarmaxes at China’s SWS. It is understood the contracts were actually penned back in June, the pricing is circa USD 27.5 Mill and the delivery for the firm Vessels will be from July 2014. Zhejiang Yangfan have won some further business this week, however this time four option two 39k dwt Handysizes for Clients of Unishipping, the Netherlands. We understand these Vessels will deliver from October 2014 and costing the Owner around USD 23 Mill per Vessel.

The Car Carrier market has again seen further orders with Clients of NYK placing two Mitsubishi designed 7,000 CEU Vessels at both Shin Kurushima and Imabari. Both Yards are set to deliver one Vessel in 2014 and the second in the first half of 2015. We are unaware thus far of the pricing of the deal. In Cruise, Clients of Norwegian Cruise Line have placed a one option one order for a 4,200 berth, 163,000 GT Cruise Vessel at Germany’s Meyer Werft Shipyard in a deal reported to be worth some EUR 700 Mill per Vessel.