S & P

There has been a significant amount of resale business concluded this week.

5 X New Yangzijiang kamsarmaxes (82,000 dwt 2012/2013 blt China) reported sold enbloc to Nishin at a price of US$ 23m each.

Tsuneishi Fukuyama has sold its Kamsarmax newbuilding Hull 1487 (82,100 dwt Jan 2013 blt

Tsuneishi) to Greek buyers at US$ 27m.

Further on, the Hull SO56 (81,993 dwt 2013 blt Hyundai Vinashin) reported sold to Greek buyers for US$ 23m. The vessel was originally contracted by clients of Hyundai Investment Corp and is due to delivery around April 2013.

Another pair of Kamsarmaxes understand are committed to Greek buyers. The Guangzhou Longxue Hull L0026 and sister Hull L0047 (82,000 dwt 2012 blt China) reported sold at US$ 22.5m.

Sinopacific Shipbuilding have continued their sales run with the conclusion of another “CROWN 58”from their Dayang facility. Hull DY147 has now been sold to Greek buyers for $20.2m basis delivery January 2013. This follows on from the yard’s recent sales of three other “CROWN 58” ships for slightly higher levels of around US$ 21m to Chinese buyers, as well as two “CROWN 63” Ultramaxes (Hull DY4023 / Hull DY4021) for US$ 24.5m each to a German and a Greek buyer.

Another resale to report this week is that of Hull H4066 (35,000 dwt 12/2012 blt SPP) from clients of Roxana Shipping S.A. to clients of Empremar, Chile for US$ 25.35m. This price looks very firm when compared to the recent sales of “NORD ANTWERP”, “NORD AARHUS” and “NORD DUBAI” (33,221 dwt 2011/12 blt Hyundai Mipo) for US$ 61.5m enbloc. We understand this high price could be to do with the fact that clients of Empremar specifically wanted to purchase a sister unit to “SPL TARAPACA” (which they bought in 2011) that could also give delivery within 2012. Additionally some suggested that long term subjects exist.

The post-panamax beam, coal trader M/V PEGASUS ISLAND (77,830 dwt 2002 blt Mitsui) has been concluded to undisclosed buyers at US$ 12.2m. Market rumours suggest either Greeks or Indonesians are behind this purchase but still unclear. Offers were invited last week on M/V IKAN BAYAN (75,777 dwt 2005 blt Sanoyas) after as many as 15 buyers had requested to inspect her in La Coruna earlier this month. We understand the Japanese owners received only a limited number of offers and have now committed the vessel to undisclosed Greek interests for around US$ 15.4m.

As the tanker market enters what should be the pre‐Christmas lull there is an unusual yet

reassuringly high level of activity for this time of year. Vessels across the spectrum are being heavily inspected and prices in some segments are actually firming giving optimism for 2013 following a very subdued 2012. It should be noted that we are talking in purely sale and purchase terms here as we all recognise that there are challenging times still ahead particularly on the chartering markets. However the fact that some of these values are improving will hopefully give a little respite to some of the day to day pressures that Owners have been facing over the last couple of years.

Several rumours exist in the market on the sale of the LR2 M/T CHAMPION PRIDE (99,997 dwt 1998 blt Samsung) in respect of the final price and the buyers’ id. Hopefully till our next report both will be clear and shall report accordingly.

NEWBUILDING

The newbuilding market is beginning to quieten as we approach the final weeks of the year, with only limited new enquiries being witnessed in the market. That is not to say that all activity has ceased however and we have continued to see new business being concluded in various sectors including both LNG and Car carriers.

With 2012 approaching its conclusion, it is unsurprising that attention is beginning to shift to the development of the market next year. The availability of financing and the evolution of the global economy will continue to sway market activity. As things stand, there remains a great deal of uncertainty over how markets will progress after what has undoubtedly been a challenging 2012 from

both a newbuilding and a chartering perspective. The niche sectors will likely continue to play an important role in the development of new business for the yards, however also expect there to be a renewed interest in the conventional sectors, as some owners, increasingly look to take advantage of the very latest designs and pricing that looks historically competitive.

The week has seen various new orders being placed, most notably, Teekay LNG Partners announcing the signing of two 173,400 cubic meter Liquefied Natural Gas (LNG) carrier newbuildings at Daewoo Shipbuilding and Marine Engineering. The deal includes options to order up to three additional vessels and whilst pricing has not been disclosed, these vessels are understood to be scheduled for delivery in the first half of 2016. LNG ordering has offered valuable support for many of the major yards over the past 2 years, and whilst the 50 vessels contracted made 2011 a major success story, 2012 has also made a signification contribution to global ordering. With the addition of these latest vessels, there have now been 27 new orders in 2012 split between Korea, Japan and even China. With other major state projects on the horizon, the yards will no doubt be hopeful that this sort of level of contracting will

continue on into 2013.

In the car carrier market, Eukor Car Carriers are understood to have extended their order at HHI for one further vessel of 7,400 CEU in size. This latest vessel is scheduled to be delivered in 1H 2014 and pricing is understood to lie in the low USD 70s Mill. This sector has seen a resurgence in newbuilding activity in 2012 with 26 firm vessels having been ordered, up from just 3 units in 2011. The yards will no doubt be hoping that like LNG, this level of contracting can continue through into 2013 and in doing so help them supplement ordering across the various conventional sectors.