S & P

In comparison to last week there are few dry sales to report. That being said we continue to see a lot of buying interest in the market for ships built within 15 years. The Japanese market remains the key source of tonnage and with the JPY continuing to weaken against the USD potential buyers are hoping this will encourage further selling.

In the Capesizes, Taiwanese buyers has purchased the M/V DONG-A SATURN (149,396 dwt 1994 blt CSBC) for US$ 7.5m.

A couple sale to report in the Panamax sector; the M/V OCEAN PLANET (76,812 dwt 2005 blt Sasebo) reported sold for a price in the low US$ 15m with dd due 9/2013 to Greek buyers while the 14years old M/V CO-OP PHOENIX (72,443 dwt 1999 blt Sasebo) sold at about US$ 9.5m again to Greek interests.

Having had more than 10 buyers inspect the vessel at dry‐dock recently, we now understand that the M/V SKY MARINER (53,459 dwt 2005 blt Imabari) has been sold to undisclosed buyers at a price in the region of US$ 15.5m with drydocking freshly passed last month.

The handymax M/V TARAPACA (46,786 dwt 2000 blt Kanasashi) has reportedly been sold for US$ 10.5m. Whilst the buyers identity is unknown, we are hearing rumours that Middle Eastern interest may have secured the vessel.

In the handysize sector M/V ODINBEY (28,381 dwt 1995 blt Imabari) has been sold for US$ 6.2m to Middle Eastern buyers.

Greek buyers understood to have purchased M/V SHARK BAY (26,412 dwt 1997 blt Guangzhou) for US$ 4m. It is worth noting that the vessel will be delivered with one of her cranes out of order. A sister ship but one year older M/V EMMA-SOPHIE (26,411 dwt 1996 blt Guangshou) obtained only US$ 2.5m; in her case all her four cranes are not operable.

Another quiet week in the tanker Sale and Purchase market although this is more due to a scarcity of sales candidates as opposed to lack of buying interest as we have a number of open enquiries for tankers of most sizes and ages.

In terms of concluded business, we have a delayed report that VLCC 'WASHUSAN' (281,050 dwt 2000 blt Mitsubishi) has been sold to Greek Buyers at US$ 28.3m with Buyers BOD subject lifted mid‐January of this year (deal was fixed end December 2012).

In the MR product tankers the M/T NOBLE EXPRESS (51,393 dwt 2008 blt STX) has been sold to Ultragas at around US$ 24.5m. We understand that she will continue in the pool where she currently operates; both sellers and buyers are pool members.

NEWBUILDING

The week has seen yet further reports of new business being concluded and similarly to last week’s capesize orders, the majority of these have again been within the Dry Bulk market. This time though, the ordering has been concentrated amongst the midsized vessels and has been focused primarily amongst the Japanese yards. With the financial year in Japan continuing to run up until the end of March, we do expect to continue to see news of further orders being placed as the yards there look to boost their end of year results.

Amongst the orders this week, Tsuneishi are understood to have extended their relationship with J.J. Ugland and have signed a contract with Clients of UM Bulk AS for two 58,000 DWT bulkers. UM Bulk is a J/V between the J.J. Ugland companies, Grimstad and Mitsubishi Corporation, Tokyo and these vessels will be built at Tsuneishi’s Cebu facility in the Philippines. The pricing of these vessels is understood to stand in the region of USD 26.5 Mill and deliveries are provisionally scheduled within the 4Q of 2014 and 1Q 2015. Clients of Singaporean based Pacific Carriers are reported to have ordered a single 61,000 DWT bulk carrier at Imabari, with a reported price of USD 28 Mill and delivery in 1Q 2015. In other dry business, Sanoyas are understood to have won their first order of the year, for one 82,000 DWT Kamsarmax, from an undisclosed buyer with delivery End 2014. Finally, Clients of Dharma Bangsa Mentari have reportedly contracted up to 10 x 10,500 DWT bulk carriers with

self‐unloading capability at Qidong Daoda, China with delivery from 1H 2014.

There has been only limited reports of newbuilding activity in the tanker market this week. Knutsen NYK Offshore Tankers are reported to have placed an order at COSCO Zhoushan for a single 152,000 DWT shuttle tanker for delivery in the second half of 2014. Domestic company Xinhai Oil meanwhile are understood to have contracted two 4,500 DWT bunkering vessels at Chongqing Chuandong with delivery again lined up for 2014. Pricing has not been disclosed.

Finally and within the LPG sector, reports have surfaced that Frontline have extended their series of VLGCs at Jiangnan Changxing bringing the total number of firm vessels on order at the yard to 6. This deal was in fact concluded a few weeks ago, however now understand it includes additional options for up to another 2 vessels. Pricing is understood to be in the region of USD 63.5 Mill and delivery from 2H 2015.