S & P

It has been a relatively busy week in the dry S+P market with a number of vessels under offer and trading out of the Japanese market.

In the Panamaxes, the Japanese controlled M/V IVS MERLOT (76,263 dwt 2005 blt Tsuneishi) which passed IS in January 2013 invited offers on Monday for buyers waiving inspection. She has now been sold to a Greek buyer for US$ 15.9m and will be delivering charterfree March‐April 2013.

Other business includes the sale by clients of Great Eastern Shipping of their panamax M/V JAG ARNAV (71,122 dwt 1995 blt Namura) for US$ 5.85m to Chinese buyers basis SS/DD due.

A lot of interest with a number of buyers inspecting and acquiring Supramax/Handymax bulkers. M/V TRITON LARK (56,025 dwt 2005 blt Mitsui) understand achieved high US$ 16m from Pacific Basin. Also the Japanese controlled M/V NORD ATLANTIS (53,525 dwt 2006 blt Iwagi) understand is sold for us$ 16.8m. Another vessel sold from the Japanese market is the double skin M/V ACE GATE (55,697 dwt 2005 blt Mitsui) which has achieved US$ 16.2m from Indonesian buyers with DD due. Large handymax M/V AETOS (48,893 dwt 2001blt IHI) obtained US$ 11.8m from Greek buyers while Cido Shipping’s M/V SALAMANCA (46,743 dwt 2000 blt Kanasashi) achieved US$ 9.7m.

Italian buyers purchased M/V NENA J (43,230 dwt 1995 blt Hyundai) for US$ 6.8m with drydocking passed in December, 2012.

A busy week for Tanker S+P market as well.

After the resent purchase of M/T PACIFIC PARTNER, Bakri Navigation reported to have also acquired her sister M/T PACIFIC ALLIANCE (105.941 dwt 2004 blt Hyundai) at a similar price – US$ 19.5m. The older double hull deep drafted but Panamax beam M/T AEOLOS (84.040 dwt 1990 blt Denmark) reported sold to European buyers at US$ 6.3m – understand she was trading as a storage facility vessel for the last couple of years.

Five modern MR product/chemical tankers from Torm’s fleet reported sold enbloc to Oaktree Capital of the U.S. for US$ 135m (i.e. US$ 27m each). The vessels are M/T TORM AGNES (50,274 dwt 2011 blt GSI, China) and sisters M/T TORM AMALIE (2011 blt), M/T TORM ALICE (2010 blt), M/T TORM ALMENA (2010 blt) and M/T TORM ASLAUG (2010 blt).

NEWBUILDING

With ordering levels keeping up pace this week, the shipyards in the Far East have resisted any significant drop in newbuilding prices now for the past 6 months. However, it remains to be seen whether increased levels of enquiry can outweigh sluggish charter rates and an oversupplied market to begin to push newbuilding pricing upwards. Away from the shipping market, shipyards have also had to account for a steady increase in the price of steel since September last year, which has

inevitably placed further pressure on the yards to achieve an increased margin for new contracts.

Looking at the Dry Bulk market, a number of previously rumoured orders have now come to light, including Fredriksen interests boosting their already significant Capesize orderbook. Understood to have been signed last month, SWS received an order for a further 4 x 180k Capesize vessels from Clients of Frontline with pricing understood to be in the region of USD 47 Mill with delivery of all four vessels in 2015. This brings the total Frontline Capesize orders to 8 firm vessels plus two sets of options for a further 4+2 vessels. Another order thought to have been concluded last month also emerged this week with Clients of Oceanbulk Maritime contracting 2 + 2 80,000 DWT Kamsarmax at Japan Marine United (JMU). Although pricing is undisclosed, delivery of the firm vessels is planned from Q1 2014. The total number of reported Capesize orders, excluding options, now comes close to 30 vessels, and considering further orders understood to be currently under discussion, the total

Capesize orders placed in this first quarter look likely to exceed the total number placed throughout the whole of 2012.

In a further boost to ordering in the coated tanker market, Clients of Scorpio have confirmed an order for two firm plus options 114,000 DWT LR2 product carriers at Hyundai Heavy Industry (HHI) Samho yard. Pricing was reported at USD 49.75 Mill with delivery of the firm vessels from mid‐2014.

In the gas market, Clients of Brave Maritime were reported to have placed an order for 2 x 7,200 cbm fully pressurised LPG vessels at Kyokuyo in Japan. Pricing is understood to be in the region of USD 22 Mill with delivery in the 1H 2014. In other sectors Croatian yard Brodogradiliste Uljanik contracted four firm 5,000 GT Passenger/Car Ferries from Clients of Jadrolinja for a reported en‐bloc price of

USD 42 Mill. The vessels are all due to be delivered in 2014.