Worldyards Monthly Newsletter

Transcription

1 June Worldyards Monthly Newsletter This is a monthly publication of Worldyards which summarizes developments in the newbuilding market in the past month with a special focus on shipbuilders. We start with a summary table, followed by shipbuilding output forecast and newbuilding price index. We then list the newbuilding orders, present our statistical summaries on terminations, slippage/advancement, rescheduling and demolitions, and conclude the newsletter with latest developments in shipbuilders, their host countries and shipbuilding technology. For latest figures on orderbook ratio, age profile and delivery schedule of various segments and other vital statistics, log onto our website ( Summary of Orders and Investments, Jun New Contracts Investment (USD Million) Bulkers 2,652,400 (-50%) 1, (-39%) Containers 143,700 (-48%) 1,261 (-47%) LNG (Gas I) 684,100 CBM (+2,343%) 800 (+796%) LPG (Gas III) 211,000 CBM (+15%) 238 (+22%) Crude Tanker 318,000 (+38%) 114 (+21%) Product Tanker 230,000 (-81%) 94 (-85%) Specialised Tanker 4,500 (-71%) 21 (+31%) Vehicles Carrier (Specialised Cargo II) 32,000 No of Cars (+103%) 296 (+111%) Notes: (1) %: It is the percentage change over last month. (2) Percentage numbers are rounded up. (3) Please refer to Worldyards segment definitions listed in the Member site for detailed explanations for the segments.

2 Capacity and Utilization Year Capacity Annual Delivery Scheduled Delivery Capacity / (CGT) Growth (CGT) (CGT) Utilization ,791,149-40,375, % ,846, % 41,563, % ,425, % 47,557, % ,933, % 46,389, % ,397, % 45,484, % 74,048, % 20,057,106 26,154, % ,368, % 81,231 28,226, % 76,046, % - 15,830, % 76,686, % - 5,045, % ,625, % - 846, % * Stale orders (please refer to Key Statistics -> Orderbook -> Scheduled Deliveries for the definition of stale orders) Worldyards shipbuilding capacity and utilization estimate is not a result of mathematical forecast, but rather result of a sum-of-all-parts approach estimating micro developments in each and every shipbuilder. First, Worldyards assumed 2008 as the base for maximum capacity or full utilization except for the few builders who have just started production in mid to end of 2007 and a number of builders who have delivered more in (Please note that our previous capacity calculation is essentially based on the builder's output. For the detailed discussion see our market comment dated on 23 June 2010, Utilisation as a Metric of Capacity). Then, we assume an organic productivity growth of 3 5% for each shipbuilder annually. The organic baseline of 3-5% depends on the status of the market and the country of the builder. We use 5% for good market, 3% for less good market. However productivity can be reduced also if a builder produces consistently below their potential in depressed market, they will slow down investment for technical and technological improvements, lay off workers, and take on a more diverse product mix than what is ideal for productivity. So we assume -3% for each year where output is 15% below potential for the previous year, -5% if the output gap is bigger than 15%. On top of the organic growth (or decline), the growth rate is then adjusted upwards or downwards to allow for other productivity developments (we call them "capacity-significant events"), caused by events such as new production methods/processes, introduction of facilities/equipment, closure of facilities, shifting of strategic focus from merchant shipbuilding to other activities, etc. Worldyards evaluates each event and assess their impact which will be added on or subtracted from the 3 5% baseline growth rate for each shipbuilder. Each and every of these capacity-significant events can be viewed under the "Background" box of each shipbuilders in the member site. For any additional facility of the shipbuilder, the increment capacity will be distributed as 60% on its first year of Page 2 of 17

3 production, another 25% on its second year (or 85% in total) and full production on its third year (capacity will reach its designed level in 3 years). On the other hand, for any closure of facility, full capacity will be deducted upon its effectivity year since we can't close a drydock/facility gradually. The Worldwide, Continent-wise and Country-wise estimates are just a summation of resultant estimates of individual builders. It is important to note though that "available capacity" would appear much higher due to the fact that the Japanese orderbook is significantly under-reported, our solution to this is to create "proforma orders" for some yards as deemed appropriate. Page 3 of 17

4 New Orders The order is defined as a confirmed signed contract in Worldyards. Every effort has been made to confirm the order. LOIs are excluded. Options declared are treated as new orders. Sub-Segment Capacity Shipbuilder Delivery Beneficial Owner Open Hatch Bulk Carriers 3 x 38,300 Jinling Shipyard Oldendorff Carriers [Egon Oldendorff] Price (US $ M) 22* Date Handysize Handysize Handysize 2 x 35,000 38,000 2 x 38,000 Jiangdong Shipyard AVIC Weihai Shipyard AVIC Weihai Shipyard Graig Shipping 22* 26-Jun- 5-Jun- 5-Jun- Nov- Globeco 22* Visentini 22* 2 x 57,600 2 x 58,000 2 x 60,000 4 x 63,500 2 x 63,500 4 x 63,800 4 x 63,800 2 x 63,800 3 x 64,000 3 x 64,000 4 x 64,000 Tsuneishi Zhoushan Imabari 2014 / / Mykonos Shipping 26* Belships 28 Oshima Shipyard dacc Maritime 28* Dayang Dayang Chengxi Shipyard Chengxi Shipyard 2014 / / 2017 / 2017 Marine Capital, MCL Grieg Star [Grieg Group] Wah Kwong Shipping CSSC (Hong Kong) Shipping * 25* Jiangsu Hantong Spar Shipping 25 Chengxi Shipyard Chengxi Shipyard 2014 Cosco Shipyard Greathorse Shipping Golden Ocean Group Limited, GOGL Lomar Corporation [Libra Group] 25* 25* 25* 5-Jun- 13-Jun- 20-Jun- 21-Jun- 27-Jun- 7-Jun- 14-Jun- Panamax Bulker 2 x 82,000 Jinling Shipyard Oldendorff Carriers [Egon Oldendorff] 26.5* Capesize 179,300 Hyundai Heavy, HHI Jun- Golden Union Shipping 47* 14-Jun- Containership 1,500-1,999 teu 2 x 1,800 CSBC Corporation SITC 23 Post-panamax Containership < 7,000 teu 2 x 4,350 Taizhou Kouan 15-Jun- n/a 37.5* 12-Jun- Page 4 of 17

5 Sub-Segment Capacity Shipbuilder Delivery Beneficial Owner Containership 7,000-9,999 teu Containership 7,000-9,999 teu Containership 7,000-9,999 teu 3 x 9,000 4 x 9,400 2 x 9,400 Hyundai Heavy, HHI Jiangnan Changxing Heavy Jiangnan Shipyard (Group) Price (US $ M) 2014 Hamburg Sud 86* Jun- Mar- Bocomm Leasing, BCFL Bocomm Leasing, BCFL 82* 82* Date 12-Jun- 19-Jun- 19-Jun- Containership > 10,000 teu 3 x 16,000 Shanghai Waigaoqiao, SWS / CSSC (Hong Kong) Shipping 130* Conventional LNG Conventional LNG Conventional LNG 155,300 CBM 182,000 CBM 2 x 173,400 CBM Mitsubishi Heavy, MHI Kawasaki Heavy Industries Dec- Oct- Daewoo, DSME Ocean Breeze LNG Transport, OBLT Kawasaki Kisen Kaisha, K Line Maran Gas [Angelicoussis Group] 190* 200* 205* 4-Jun- 4-Jun- 30-Jun- LPG 0-9,999 cbm 2 x 3,500 CBM Kitanihon 2014 Epic Pantheon International Gas Shipping 15 6-Jun- VLGC VLGC 2 x 60,000 CBM 84,000 CBM Hyundai Heavy, HHI Hyundai Heavy, HHI Solvang 68* Mar- Petredec 72* 14-Jun- 21-Jun- Suezmax 2 x 159,000 Hyundai Heavy, HHI Marmaras Navigation 57* LR II 2 x 115,000 Hyundai Heavy, HHI Kyklades Maritime 47* 27-Jun- Asphalt/Bitumen Tanker 2 x 2,250 3 Maj 30-Apr Wisby Tankers n/a PCC 2 x 8,000 No of Cars Tianjin Xingang / Wallenius Lines, OW 75* 25-Jun- PCTC * WY Estimates 2 x 8,000 No of Cars Hyundai Heavy, HHI 2014 / n/a 73* Page 5 of 17

6 Resale Sub-Segment Capacity Shipbuilder Seller Buyer 64,000 Zhejiang Zengzhou Price (US $ M) n/a Turkish 24 Date Panamax Bulker 82,000 Tsuneishi Zhoushan Kambara Kisen Co., Ltd. Greek Jun- Containership 2,000-2,999 teu 3 x 2,546 Yangzijiang Own Account by Default Klaveness Maritime Logistics AS [Torvald Klaveness Group] Jun- MR/Chemical MR/Chemical 37,583 2 x 52,000 Hyundai Mipo, HMD SPP Societe d'armement et de Transport (SOCATRA) Dunya Denizcilik ve Ticaret A.S. Frontline Ltd York Capital Management Jun- Newly Surfaced Existing Orders Orders that were placed before the publishing date of our last issue, but only became known to, or were confirmed by Worldyards, after we published our last issue. Some are net additions in number of orders, for instance we only knew of 2 vessels but it has now emerged that there were total 4. Sub-Segment Capacity Shipbuilder Delivery Beneficial Owner Small Handy 2 x 15,000 Jiangsu Haitong Offshore Price (US $ M) Date 2014 n/a 13* n/a 8 x 64,000 2 x 64,000 Yangzijiang New Times, NTS / Oceanbulk Maritime 25* Sammok Shipping 25* 24-Apr- 31-May- Panamax Bulker Panamax Bulker Panamax Bulker Panamax Bulker 61,000 81,600 2 x 81,600 82,000 Dalian COSCO KHI Ship Engineering, DACKS M Tsuneishi Zhoushan Tsuneishi Zhoushan Dayang Page 6 of 17 Oceanbulk Maritime 26.5* Jul- Kambara Kisen 28.5* Mitsubishi 28.5* Jul- FCN Management 28* 31-May- 30-Apr- 30-Apr- 15-Mar-

7 Sub-Segment Capacity Shipbuilder Delivery Beneficial Owner Panamax Bulker Panamax Bulker 2 x 82,000 4 x 82,000 Yangzijiang Yangzijiang Price (US $ M) SK Shipping 26.5* / Global Maritime Investments, GMI 26.5* Date 31-May- 31-May- Containership 2,000-2,999 teu Containership 7,000-9,999 teu 2 x 2,190 4 x 9,200 Guangzhou Wenchong, GWS New Times, NTS n/a 27* China International Marine Containers, CIMC 80* 15-May- 31-May- MPP MPP 12,500 2 x 36,000 Jiangzhou Union Yangzijiang Apr- German 19* Chipolbrok 30* 26-Apr- 28-Mar- VLGC 2 x 84,000 CBM Hyundai Heavy, HHI / Petredec 73* 26-Apr- VLCC 300,000 Dalian COSCO KHI Ship Engineering, DACKS M Jun- Dalian Ocean Shipping [COSCO Group] 85* 14-Dec Aframax Uncoated 2 x 114,900 Daewoo, DSME Feb- Flagship Marine Ventures May- MR 2 x 50,800 STX Offshore & D&K Holdings May- Product 5,000-9,999 dwt 2 x 5,000 Jiangsu Haitong Offshore 2014 Citra Armada Nusantara 6* 16-Jan PCTC 4 x 7,300 No of Cars Hyundai Heavy, HHI 2014 Glovis 70.2 * WY Estimates Please check our site for details of removed confirmed orders - orders which have become invalid for whatever reasons. 26-Apr- Deals under Negotiation Sub-Segment Capacity Shipbuilder Delivery Beneficial Owner - Price (US $ M) Page 7 of 17

8 Deductions (in CGT and no. of Orders in bracket) as compared to Orderbook Recorded Page 8 of 17

9 Notes: Fictitious Orders: Orders that were never signed but wrongly reported. Theoretically they shall never have been part of the orderbook, even though some of them did find their way in. Some of them even have IMO numbers. Failed order: Signed contracts confirmed to have failed to become effective. We treat terminated orders between shipbuilders and ship-owning companies which are both controlled by the same ultimate interests as failed orders. There are some builders which are operating differently from the normal built-to-order business model they start building vessels on speculation that they could sell them closer to delivery, alternatively they (or the nominal ship-owners within the same group) will offer them for long-term charter. Examples are a lot of the Turkish yards, some Japanese yards such as Imabari and Tsuneishi. Even though they could have nominal shipbuilding contracts, but they can be regarded as internal transfers within the group so the normal contractual relationships regarding installments, refundment guarantees etc. may not apply. The owners will choose to stop construction at anytime of its choice without having to consider the legal obligations under the shipbuilding contract. Whenever we have been able to establish the same ownership interests for the concerned shipbuilder and ship-owning companies, we will treat their terminated contracts as failed. Column (2) & (4) are still part of the orderbook and thus not included on the Total Deduction column, i.e. builder decided to continue construction of the vessels. Cancelled Orders: Effective contracts which have been cancelled legitimately or abandoned by way of defaults. Terminated by Mutual Agreement: An agreement between buyer and shipyard to negate an effective shipbuilding contract, especially those with deliveries in the distant future. The buyers would normally agree to pay the shipbuilders some compensation. Within the shipbuilding contract there are strict mechanisms governing how the contract can be rescinded, this is an extra contractual way to terminate the shipbuilding contract. Page 9 of 17

10 Slippage/Advancement in 2012 Segment Bulkers Containers Semi-liner Tonnage LNG (Gas I) LPG (Gas III) Combination Carriers Crude Tanker Product Tanker Product/Chemical Tanker Chemical Tanker Specialised Tanker Specialised Cargo (Specialised Cargo I) Vehicles Carrier (Specialised Cargo II) Heavy-Lift Cargo (Specialised Cargo III) Passenger Ships Total Unit Scheduled Delivery (as per 1 st January) (a) Ahead of Schedule (b) On-time (c) Realised Confirmed deductions / fictitious (d) Slippage (e) Actual Deliveries No. : (0.76%) 870 (60.21%) 132 (9.13%) 432 (29.90%) 1203 CGT : 27,894, ,248 17,175,519 2,447,977 8,076,222 (0.70%) (61.57%) (8.78%) (28.95%) 22,892,820 No. : (1.52%) 169 (64.02%) 19 (7.20%) 72 (27.27%) 204 CGT : 9,163, ,691 6,129,190 2,494, ,667 (4.50%) (1.38%) (66.89%) (27.22%) 6,789,892 No. : (2.19%) 133 (48.54%) 42 (15.33%) 93 (33.94%) 279 CGT : 2,662,776 52,710 (1.98%) 1,379, , ,808 (15.92%) (51.79%) (30.31%) 2,255,455 No. : 6-2 (33.33%) 0 (0.00%) 4 (66.67%) 2 CGT : 435, , ,554 0 (0.00%) (36.75%) (63.25%) 160,096 No. : 38 1 (2.63%) 20 (52.63%) 5 (13.16%) 12 (31.58%) 37 CGT : 434,851 8,698 (2.00%) 229, ,869 48,200 (11.08%) (52.68%) (34.23%) 354,376 No. : (100.00%) - - CGT : 55, No. : (60.13%) 19 (12.03%) 44 (27.85%) 115 CGT : 5,619,236-3,359,294 1,555, ,227 (12.53%) (59.78%) (27.69%) 4,078,054 No. : (0.83%) 48 (39.67%) 18 (14.88%) 54 (44.63%) 123 CGT : 1,467,847 13,794 (0.94%) 792, , ,234 (16.64%) (54.02%) (28.40%) 1,365,320 No. : (41.51%) 22 (20.75%) 40 (37.74%) 80 CGT : 1,936, , , ,876 (14.66%) (46.05%) (39.29%) 1,331,427 No. : (36.00%) 23 (30.67%) 25 (33.33%) 49 CGT : 1,072, , , ,500 (25.87%) (40.72%) (33.40%) 697,343 No. : (48.48%) 2 (6.06%) 15 (45.45%) 39 CGT : 438, , ,123 19,902 (4.54%) (52.57%) (42.89%) 402,700 No. : 7-1 (14.29%) 1 (14.29%) 5 (71.43%) 4 CGT : 67,470-7,872 (11.67%) 16,447 (24.38%) 43,151 (63.96%) 22,007 No. : (71.11%) 8 (17.78%) 5 (11.11%) 34 CGT : 1,389, , , ,448 (16.72%) (71.47%) (11.80%) 1,051,475 No. : CGT : No. : 7-7 (100.00%) CGT : 815, ,508 (100.00%) ,508 No. : 2, (0.89%) 1,464 (56.74%) 292 (11.32%) 801 (31.05%) 2,176 CGT: 53,455, ,141 32,601,451 5,167,100 15,289,492 (0.74%) (60.99%) (9.67%) (28.60%) 42,216,473 Page 10 of 17

11 Slippage/Advancement in Q1- Segment Bulkers Containers Semi-liner Tonnage LNG (Gas I) LPG (Gas III) Combination Carriers Crude Tanker Product Tanker Product/Chemical Tanker Chemical Tanker Specialised Tanker Specialised Cargo (Specialised Cargo I) Vehicles Carrier (Specialised Cargo II) Heavy-Lift Cargo (Specialised Cargo III) Passenger Ships Total Unit Scheduled Delivery (as per 1 st January) (a) Ahead of Schedule (b) On-time (c) Realised Confirmed deductions / fictitious (d) Slippage (e) Actual Deliveries No. : (1.52%) 139 (35.19%) 16 (4.05%) 234 (59.24%) 252 CGT : 7,500, ,914 2,751,488 4,356, ,270 (3.90%) (1.35%) (36.68%) (58.08%) 4,848,304 No. : (37.97%) 3 (3.80%) 46 (58.23%) 56 CGT : 2,404, ,066 1,327,960 95,357 (3.97%) (40.80%) (55.23%) 1,942,071 No. : 67 2 (2.99%) 23 (34.33%) 3 (4.48%) 39 (58.21%) 49 CGT : 669,982 8,703 (1.30%) 245, ,279 38,780 (5.79%) (36.60%) (56.31%) 440,882 No. : 1-1 (100.00%) CGT : 79,325-79,325 (100.00%) ,556 No. : (58.82%) 0 (0.00%) 7 (41.18%) 20 CGT : 235, ,418 69,374 0 (0.00%) (70.58%) (29.42%) 293,831 No. : CGT : No. : (45.95%) 1 (2.70%) 19 (51.35%) 29 CGT : 1,387, , ,316 43,992 (3.17%) (43.35%) (53.48%) 1,014,272 No. : (28.89%) 1 (2.22%) 31 (68.89%) 29 CGT : 531, , ,587 20,442 (3.85%) (34.15%) (62.00%) 348,454 No. : 31 1 (3.23%) 12 (38.71%) 5 (16.13%) 13 (41.94%) 21 CGT : 600,944 24,228 (4.03%) 273, ,711 79,443 (13.22%) (45.52%) (37.23%) 457,492 No. : 18-6 (33.33%) 2 (11.11%) 10 (55.56%) 9 CGT : 313, , ,649 29,434 (9.40%) (38.67%) (51.93%) 157,146 No. : 14-5 (35.71%) 1 (7.14%) 8 (57.14%) 11 CGT : 153,032-91,189 (59.59%) 10,326 (6.75%) 51,517 (33.66%) 198,498 No. : 11-6 (54.55%) 0 (0.00%) 5 (45.45%) 2 CGT : 130,299-90,182 (69.21%) 0 (0.00%) 40,117 (30.79%) 20,354 No. : 5-3 (60.00%) 0 (0.00%) 2 (40.00%) 6 CGT : 165,360-98,887 (59.80%) 0 (0.00%) 66,473 (40.20%) 198,900 No. : 2-1 (50.00%) 0 (0.00%) 1 (50.00%) - CGT : 23,976-7,739 (32.28%) 0 (0.00%) 16,237 (67.72%) - No. : 1-1 (100.00%) CGT : 136, ,825 (100.00%) ,280 No. : (1.24%) 267 (36.93%) 32 (4.43%) 415 (57.40%) 489 CGT: 14,333, ,845 5,826,223 7,763, ,044 (4.26%) (0.93%) (40.65%) (54.16%) 10,324,040 Page 11 of 17

12 Slippage/Advancement in Q2- Segment Bulkers Containers Semi-liner Tonnage LNG (Gas I) LPG (Gas III) Combination Carriers Crude Tanker Product Tanker Product/Chemical Tanker Chemical Tanker Specialised Tanker Specialised Cargo (Specialised Cargo I) Vehicles Carrier (Specialised Cargo II) Heavy-Lift Cargo (Specialised Cargo III) Passenger Ships Total Unit Scheduled Delivery (as per 1 st January) (a) Ahead of Schedule (b) On-time (c) Realised Confirmed deductions / fictitious (d) Slippage (e) Actual Deliveries No. : (6.57%) 65 (23.72%) 6 (2.19%) 185 (67.52%) 178 CGT : 5,083, ,565 1,201,002 3,395, ,271 (2.35%) (7.23%) (23.62%) (66.80%) 3,408,432 No. : (13.41%) 28 (34.15%) 1 (1.22%) 42 (51.22%) 72 CGT : 2,894, ,569 1,060,770 1,386,670 25,682 (0.89%) (14.56%) (36.65%) (47.90%) 2,579,616 No. : 44 3 (6.82%) 6 (13.64%) 2 (4.55%) 33 (75.00%) 29 CGT : 461,246 44,655 (9.68%) 71,819 (15.57%) 10,908 (2.36%) 333,864 (72.38%) 343,474 No. : 3 1 (33.33%) 1 (33.33%) 0 (0.00%) 1 (33.33%) 1 CGT : 249,795 79,325 91,145 79,325 (31.76%) 0 (0.00%) (31.76%) (36.49%) 79,325 No. : 6 1 (16.67%) 4 (66.67%) 0 (0.00%) 1 (16.67%) 7 CGT : 106,908 18,992 11,196 76,720 (71.76%) 0 (0.00%) (17.76%) (10.47%) 111,658 No. : (0.00%) 3 (100.00%) - CGT : 15, (0.00%) 15,084 (100.00%) - No. : 31 2 (6.45%) 7 (22.58%) 3 (9.68%) 19 (61.29%) 15 CGT : 1,093,099 54,643 (5.00%) 249, , ,083 (10.89%) (22.84%) (61.27%) 571,984 No. : 46 2 (4.35%) 16 (34.78%) 0 (0.00%) 28 (60.87%) 30 CGT : 435,627 33,263 (7.64%) 180, ,205 0 (0.00%) (41.36%) (51.01%) 291,564 No. : 13-3 (23.08%) 1 (7.69%) 9 (69.23%) 10 CGT : 276,872-71,712 (25.90%) 14,100 (5.09%) 191,060 (69.01%) 209,434 No. : 9-3 (33.33%) 1 (11.11%) 5 (55.56%) 11 CGT : 187,877-79,167 (42.14%) 14,717 (7.83%) 93,993 (50.03%) 182,179 No. : 10 1 (10.00%) 3 (30.00%) 1 (10.00%) 5 (50.00%) 6 CGT : 194,155 30,135 64,428 89,266 (45.98%) 10,326 (5.32%) (15.52%) (33.18%) 136,132 No. : 4-2 (50.00%) 0 (0.00%) 2 (50.00%) - CGT : 60,837-40,085 (65.89%) 0 (0.00%) 20,752 (34.11%) - No. : 7 2 (28.57%) 2 (28.57%) 1 (14.29%) 2 (28.57%) 2 CGT : 226,466 67,219 67,043 65,504 (28.92%) 26,700 (11.79%) (29.68%) (29.60%) 65,504 No. : 3-2 (66.67%) 0 (0.00%) 1 (33.33%) - CGT : 26,690-15,382 (57.63%) 0 (0.00%) 11,308 (42.37%) - No. : 5 1 (20.00%) 3 (60.00%) 1 (20.00%) - 3 CGT : 532,880 87, ,379 (16.41%) (64.06%) ,379 No. : (7.78%) 145 (26.85%) 17 (3.15%) 336 (62.22%) 364 CGT: 11,845,988 1,204,821 3,621,950 6,574, ,833 (3.76%) (10.17%) (30.58%) (55.50%) 8,320,681 Page 12 of 17

13 Notes: (1) Slippage / Advancement can be measured in two ways: a) Actual delivery against original contractual delivery. b) Actual delivery against revised contractual delivery (after rescheduling). The figure shown here is combination of both. (2) The basis of the comparison is always the known orderbook 1 st January (of current and preceding year), as unless the base is constant, we are not comparing apple to apple. That means our calculation excludes: a) Spillovers delayed deliveries from the earlier period. For instance, if a vessel is scheduled to be delivered in 1 st Quarter of (2009), but gets delivered in the 3 rd Quarter of (2009), she will not be counted as actual deliveries in 3 rd Q (2009), for the purpose of the slippage calculation. b) Newly surfaced existing orders entered into the system after 1st January of the current and preceding year. For instance, if there were 400 capesize bulkers known at 1st January 2008, the system would just track slippage of these vessels and disregard the 50 "new" orders that could have been entered into the system during 2008, since we can't calculate the extent of slippage by comparing the schedule of 400 ships against delivery of 450 ships. Since spillovers and newly surfaced existing orders are frequent events, the results shown here are slippage of the known orderbook 1st January each year, not necessarily results of the entire orderbook at any given time, however they give very close indications to the extent of slippage. (3) Actual deliveries (f) are mainly from the recorded orderbook 1st January, however it also includes spillovers from earlier periods, additional deliveries from newly surfaced existing orders, and deliveries ahead of schedule from the period (for instance, some orders were scheduled to be delivered in January 2008 however it was delivered in December 2009, hence, this will be included in Actual Deliveries in 2009).In other words, whilst (a) = (b)+(c)+(d)+(e) = 100%, (f) can be smaller (if more ships were delivered in the preceding year/previous quarter) or bigger (from spillover and unknown orders) than (b)+(c). Total deductions (d) = fictitious orders + failed contracts + cancelled and removed + terminated and removed. (4) Slippage = builder/construction delay + rescheduling. a) Quarterly slippage refers to the number of ships or orders that slipped from the quarter to a following quarter. b) Annual slippage refers to the number of ships or orders that slipped from 2010 into Slippage refers to the number of ships and capacity of orders that slipped from the quarter to a following quarter. Page 13 of 17

14 Demolitions as verified 22 July Notes: 1. YTD Figures as of 22 July 2. Total Fleet: Total fleet at the end of each year. 3. Tankers include Crude Tankers (WY Segment 8), Product Tankers (WY Segment 9), Product/Chemical Tankers (WY Segment 10), Chemical Tankers (WY Segment 11), Specialised Tankers (WY Segment 12). Page 14 of 17

15 Rescheduling (Delay + Postponement by Mutual Agreement) as verified 22 July Notes: 1. This table only accounts for what is currently on order. Deliveries are excluded months prior to date are deliveries originally scheduled to take place in 12 months prior to date the current date in other words these are delays. 3. Orderbook for the corresponding period/year is the orderbook scheduled to be delivered for a particular year, as per 21 Nov Amount of tonnage Rescheduled (%) = Amount of tonnage Rescheduled over Orderbook for the corresponding period/year. 5. Delay is usually caused by the builder, excessive delay could result in cancellation. 6. Postponement by mutual agreement is part of contractual revision. 7. Tankers include Crude Tankers (WY Segment 8), Product Tankers (WY Segment 9), Product/Chemical Tankers (WY Segment 10), Chemical Tankers (WY Segment 11), Specialised Tankers (WY Segment 12). Page 15 of 17

16 Shipbuilder Developments 26-Jun- : GSI to acquire CSSC Guangzhou Longxue : As announced, Guangzhou Shipyard International is to issue non-public H shares to raise no more than RMB250 million to purchase CSSC Guangzhou Longxue Co., Ltd. RMB200 million of the fund will be raised from CSSC and its holding subsidiaries overseas. No more than RMB100 million of the funds will be used to purchase from CSSC the 60% stake it is holding in CSSC Guangzhou Longxue Co., Ltd. and from other shareholders the remaining 40% stake. The rest of the fund will serve as fluid capital of the listed company of GSI. 07-Jun- : DSIC rumoured to acquire STX Dalian : Rumours about the acquisition of STX Dalian by Dalian Industry Co., Ltd. are widely found in Chinese press these days. Unidentified sources said Dalian City Government has conducted several rounds of talks with STX Dalian's parent company and credit banks about the consolidation opportunities. DSIC has been planning to relocate to Changxing Island where STX Dalian sits now. If DSIC is to take over STX Dalian, the relocation process will be greatly facilitated. However, the huge debt of STX Dalian remains the biggest obstacle for the consolidation opportunities. As learned, STX Dalian had about 21,000 employees, including only 800 Korean. STX failed to pay back the bank loans which is about US$647m. The total investment in STX Dalian is about US$1bn. As early as February this year, employees of STX Dalian had a strike to request their salary from the yard. 06-Jun- : Shenfei launches SF308 : On 6 June, Shenfei Co., Ltd. based in Rongcheng of Shandong province launched SF308, the 27,400 dwt multipurpose containership for Quanzhou Ansheng Shipping Co., Ltd. Ship name is "Ren Jian Tianjin". 06-Jun- : Golden Ocean fleet updates in Q1 : In January, Golden Ocean took delivery of "Golden Brilliant" from Pipavav and assigned the two options to third parties. In March, Golden Ocean ordered two 60,000 dwt supramax vessel from Japan Marine United. Also in March, the company cancelled a construction contract at Jinhaiwan and has in total cancelled five vessels. In May, Golden Ocean bought a 2009-built cape to be named "Golden Magnum" together with a cargo owner. Also in May, the company agreed to buy two iceclass Panamax vessels built at Pipavav, first to be delivered in June and second to be delivered in second half of. 04-Jun- : Shanhaiguan Industry completed FSO conversion for Omni : On 31 May, Shanhaiguan Industry Co., Ltd. completed the conversion of one 300,000 dwt VLCC into an FSO for Singaporean owner Omni. ABS is the class. "FSO Uote 1", the converted ship, is 387 m long (LBP: 317 m), 59 m wide and 31.5 m deep, with design draft of 24.3 m. The vessel, with a designed life of 25 years, is capable to store 340,000 CBM, i.e., 2.2m barrels of crude oil. The conversion work took 15 months to complete, including 430,000 square metres of coating, 8,000 tons of steel structure, 1,600 tons of piping and more than 100 sets of new equipment.

17 Technology Developments 27-Jun- : DNV to class Denmark's very first LNG-fuelled ferry for domestic trade : Remontowa Yard in Gdansk, Poland has been chosen to build the first LNG-fuelled ferry for Samso Municipality in Denmark. The ferry is designed by Danish OSK-Ship Tech A/S and will be built to DNV class. The ferry, capable to carry 600 passengers and 160, is expected to start its first journey in October 2014 between the island of Samso and Jutland on the Danish mainland. DNV was the first class society to develop rules for LNG-fuelled ships back in the year At today's date, 38 LNG-fuelled ships are currently in operation and DNV classes 36 of them. The huge majority operate in Norwegian waters or close to Norway's coast. The Samso ferry, which will be Danish flagged, is one of the 30 LNG-fuelled newbuildings ordered for delivery within the next two years. Two more Danish-flagged vessels are among these 30 newbuilds and Fjordline, their owner, will soon be operating these two large ferries between Denmark and Norway. 05-Jun- : Wartsila launches more powerful dual-fuel engine : Wartsila has further developed its dual-fuel technology and introduced a more powerful version of its popular Wartsila 34DF engine. The new version increases the efficiency in both liquid and gas operating modes and offers a power increase up to 500kw per cylinder. Now Wartsila 34DF covers a power range from 2.9MW to 8MW. When operating in gas mode, the engine is compliant with IMO Tier III regulations. When operating in liquid fuel oil mode, the engine is compliant with IMO Tier II regulations. Country News 13-Jun- : KEXIM expands finance to aid Korean shipbuilders : The Export-Import Bank of Korea (KEXIM) announced on 13 June that it would provide struggling Korean shipbuilders up to KRW4trn (USD 3.5bn) finance. The amount was KRW500bn more than the bank's original plan. The financing has been expanded thanks to Korean government's revised supplementary budget on 7 June. The government invested a total of KRW80bn into KEXIM to grow supports to small and medium-sized exporting companies, the shipbuilding industry, etc. For domestic shipping companies suffering from financial difficulties, a KRW500bn financing will be offered as liquidity provision. In April, KEXIM introduced an operating finance for oceangoing vessels, adding to the existing financings for purchasing oceangoing vessels and second-hand ships, and inclusive export financing. Worldyards Newsletter is available freely to our subscribers, or can otherwise be ordered as a stand-alone subscription. For details of newsletter subscription please contact us at wy@worldyards.com. Reprinting or reproduction of this newsletter without explicit consent of Worldyards.com Pte Ltd is prohibited. Worldyards reserves the right to publish this newsletter on a complimentary basis 2 months after the month of issue. * Copyright Worldyards.com Pte Ltd, details without guarantee. * At the time of publishing, some orders are still being verified. Please log onto for the most up-todate information. Page 17 of 17