S & P

Offers were invited on Wednesday of this week on the Asahi Shipping controlled M/V BRILLIANT RIVER (149,999 dwt 1994 blt Namura). We understand the vessel has gone to a further trading undisclosed buyer at a shade over US$ 9m for delivery in June in China.

In the Kamsarmax segment, the M/V BRILLIANT TRADER (87,144 dwt 2006 blt IHI) understand is committed to Greek buyers at US$ 18.8m while the resale TSUNEISHI ZHOUSHAN SS-132 (81,600 dwt 2013 blt) is also gone to Greek buyers for US$ 28m.

Greek buyers also acquired the M/V ALICIA (63,400 dwt 2012 blt Yangzhou) at US$ 25m, the resale

open/box OSHIMA 10646 (55,200 dwt 2013 blt Oshima) at US$ 26m and the M/V NEW LIGHT

(28,616 dwt 2002 blt Imabari) at US$ 11.1m.

Not much to report in the Tanker S+P market.

In the LR2 segment, the M/T EAGLE ALBANY (107,160 dwt 1998 blt Koyo) reported sold to Far Eastern buyers at US$ 9.5m.

The M/T KALTENE (37,261 dwt 2003 blt Hyundai) sold to Greek buyers for US$ 12.9m.

NEWBUILDING

This week has been somewhat quieter than the last, nevertheless the newbuilding market has remained buoyant with continued ordering across all major sectors and ongoing focus on Capesize within the Dry market and MR and LR2 in Wet. Following the significant ordering levels seen so far this year in particular in these sectors, over 50 firm Capes and close to 20 firm LR2 orders, remaining capacity for 2015 is scarce with the majority of yard now looking towards 2016 delivery. That said, with market pricing at historically low levels, key yards now appear to have satisfied the minimal level of ordering to maintain production for at least the next 24‐30 months, and we see less of a drive currently to push 2016 deliveries. This could give the shipyards in the East some breathing space to hold back from taking low value or loss making orders in the hope that the freight market will improve and newbuilding prices will begin to firm. As we move into the second quarter of 2013 it will be particularly interesting to see whether the newbuilding activity seen so far this year continues, and if so whether this is driven by increased demand for newbuildings or the yards continuing to offer historically low pricing.

In the dry bulk market the Capesize ordering has continued, however now focussed towards the

smaller sizes rather than conventional 180,000 DWT or larger Newcastlemax. A total of nine orders have been reported for 150,000 DWT Capesize at three different Korean shipyards for eventual long term charter to KEPCO. Both SK Shipping and Hanjin Shipping each placed orders for two firm 150,000 DWT Capes at Sungdong, with all four vessels lined up for delivery in 2016. Hanjin Heavy (Busan) received an order for a further three 150,000 DWT Capesize from Hyundai Merchant Marine for delivery in 2015. And finally, STX Pan Ocean placed an order at STX Shipbuilding in Jinhae for a further two 150,000 DWT Capes for delivery at the end of both 2015 and 2016. Although understood to have been signed last month, this week we are reporting further orders for Sinopacific’s Crown 63, which according to our records brings the total number of this design on order to 16 vessels. Although understood to have been singed last month, it has come to light that Sinopacific Group’s Dayang Shipyard has taken a further order for two Crown 63 Ultramax from an undisclosed buyer with delivery in 2014.

Similarly to last week, the tanker newbuilding market has been busy with further orders for MR and Aframax/LR2. STX Shipbuilding took an order for 4+4+4+4 113,000 Aframax from Clients of Teekay Tankers, with delivery of the firm vessels in second half of 2015 and early 2016. It is understood that these orders include an option for whether the vessels are coated for trading products. Clients of East Med Maritime ordered four firm 113,000 DWT LR2s at DSME Mangalia, all for delivery in the first half of 2015. A joint venture between Stena Bulk and Weco is understood to have declared options in a series of 50,000 DWT IMO2 Chemical Tankers at Guangzhou Shipyard, taking the total order to 10 firm vessels. Pricing was reported at USD 38 Mill per vessel with delivery in 2015. Away from the yards in the East, Croatia’s Brodogradiliste Trogir is understood to have contracted two 49,500 DWT IMO Chemical Tankers for charter to Songa, with delivery of the vessels in 2015.

In the gas market, a joint venture between SK Shipping and Marubeni have placed orders for two 180,000 CBM LNG carriers at Samsung with a reported price of USD 230 Mill per vessel and delivery in the latter half of 2017. Finally, looking at container newbuilding, Heung‐A Shipping have placed an order at Japan’s Kyokuyo Shipyard for a single 1,103 TEU container carrier with pricing at a reported USD 21.5 Mill and delivery in Q1 2015.