S & P

Not much to report in the dry S&P market however a number of vessels presently under negotiations which we expect to turn into recorded sales next week.

The Capesize bulker M/V TAMOU (177,243 dwt 2005 blt Namura) controlled by clients of Doun Kisen, having been inspected by 9 parties in in Xingang, China at the end of March and invited offers earlier this week has now been sold to Greek buyers for region US$ 27m basis a charterfree delivery by arrangement. Doun Kisen.

In the Panamax segment, the Greek controlled M/V SD NOVA (70,108 dwt 1996 blt Sumitomo) has been sold at high US$ 6m to unnamed buyers (understand this should be an older sale), whilst the Taiwanese owned M/V YM CULTIVATION (69,163 dwt 1997 blt Koyo) has been purchased for US$5m by Hong Kong based buyers on an “as is” basis (understand 2 of ship’s generators were out of order).

In the Handymaxes, the M/V KEN (46,747 dwt 1998 blt Sanoyas) has gone at US$ 9.5m reportedly to Phoenix Bulk.

It has been a very busy week in the Tanker S&P market.

The standout deal this week is the news that Scorpio Tankers has paid US$ 36.5m each for four resale MR Tankers delivering from Hyundai Mipo shipyard between June and September 2013. The press release which accompanied the news states that the Vessels are sisters to the Scorpio controlled “STI Amber‐Class” so will fit easily into the Companies rapidly expanding fleet.

Furthermore, Greek buyers have paid US$ 34.5m for the STX Jinhae (hull 1463) and delivery within 2013.

Of older tonnage the German controlled, uncoated Panamax tanker M/V CHEMTRANS SUN (71,675 dwt 1999 blt Hudong) has been sold to Nigerian interests at region US$ 7m. The early generation Chinese build quality and the fact she is uncoated will have had a significant effect on the price.

The German controlled unit, epoxy coated LR2 M/T NORDMARK (105,337 dwt 1998 blt Halla) reported sold to Ukrainian buyers at US$ 8.2m basis SS/DD due April 2013. The Buyers are reported to be the very same as who recently purchased the ex 'MERIDIAN LION' (299,999 dwt 1997 blt Hyundai) and ex 'KATJA' (97,220 dwt 1995 blt Sumitomo).

NEWBUILDING

An active week in the Newbuilding market ‐ where the volume of reported ordering has surpassed any other thus far in 2013. The week has seen orders for a total of close to 40 firm vessels being placed, across all key sectors, though it is important to note that a number of these contracts have been signed some time ago and are only now coming to light. As per much of the recently concluded business, the majority of these orders are scheduled for delivery in 2015 and options into 2016, suggesting the yards are continuing to offer only a reduced level of available capacity in order to maintain, at the very least, current price levels.

In the Dry bulk sector, clients of Golden Ocean Management are reported to have ordered two firm 60,000 DWT Supramax at Japan Marine United. The vessels are understood to be on order at the shipyard group’s Yokohama facility are planned for delivery in the first quarter of 2015. Continuing the orders in the sector, it was reported that Clients of Nisshin Shipping have ordered three firm plus two option 64,000 DWT bulk carriers at Jiangsu Hantong. The vessels, based on the SDARI 64 design, will be delivered in 2015, with the options set for delivery in 2016 if declared. Pricing is understood to lie in the region of USD 24.5 Mill. The Sinopacific group are also understood to have been active with reports they have received an order for 1+1 63,500 DWT from clients of GSD Marin, with delivery of the vessels in the second and third quarter of 2014 from their Dayang facility. In addition reports

suggest they have also won an order from Clients of Seatrek for two firm and one option vessels.

Although being reported now, these deals are understood to have been originally signed/agreed back in February and March respectively. The Seatrek vessels are also expected to delivery from 2014 with the second vessel and optional unit in 2015. In the larger sizes, New Yangzijiang have reportedly won an order from Clients of Marine Management Services for three firm plus two option 82,000 DWT bulk carriers. Pricing is understood to be USD 26 Mill with delivery of the firm vessels in the second half of 2015 and early 2016. The Capesize ordering spree seen throughout the first quarter of this year has continued with Frontline 2012 declaring four options for 181,000 DWT bulkers at STX Dalian. These vessels are due for delivery in 2015, we also understand the deal includes options for a further four vessels for delivery in 2016, which if declared will take the owner’s Capesize orders at the yard to a total of twelve vessels. Continuing on orders in the larger sector, it has also been reported that Oldendorff Carriers have contracted four firm plus two option 207,000 DWT Newcastlemax at Hyundai Heavy Industries. Delivery of the firm vessels is split between 2H 2014 and early 2015 with the options in 2015.

The orders in the product tanker sector have continued this week with Scorpio Tankers declaring a further two options for 37,000 DWT Ice Class 1A product/chemical tankers at Hyundai Mipo. These are the 7th and 8th vessels in the series with delivery of both vessels understood to be lined up for the third quarter of 2014. In addition, Scorpio has reported yet more orders in the LR2 sector this week, with a further four 114,000 DWT product carriers at Hyundai Samho and also two additional vessels of the same size at DSME, all for delivery in the second half of 2014. The latter deal is understood to include a number of options with the firm vessels costing a reported USD 50 Mill. Additionally, it was reported that clients of Lundqvist Rederierna contracted a single 104,000 DWT Aframax at Sumitomo with delivery in 2H 2014. In the container sector, SITC are understood to have recently contracted two firm 1,800 TEU container vessels with a further six options at CSBC Keelung. Pricing of the firm vessels is reported at circa USD 23 Mill with delivery planned for the last quarter of 2014 with the options in 2015 if declared. Zhejiang Yangfan has received an order for two firm 1,100 TEU container vessels from Ningbo Ocean Shipping with delivery lined up for 2014.

Finally, in the gas market K‐Line are understood to have ordered a single 164,700 CBM LNG carrier from Kawasaki Heavy Industries for deliver at the end of 2015. In China, Jiangnan Shipyard has won an order for one option one 30,000 CBM LNG carriers from domestic CNOOC Energy Technology and Services with the firm vessels set for delivery in 2015. It has also been reported that Dalian Inteh Group have ordered one 28,000 CBM LNG carrier at COSCO Dalian with delivery in the first quarter of 2015.