B B R B B R B D R B B R B B R R B R R R B B R R B B R B. Issue: October Research & Valuations Dept.

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1 Issue: Research & Valuations Dept. Analysts: Mr. George Lazaridis Ms. Eva Tzima Secondhand Market Total vessels sold this month: 146 The secondhand market shows no sign of slowing down, with the latest figures this month showing 2013 volumes having already surpassed the volumes of 2012 as a whole. As always December will likely be a slower month then the average, however even taking this into account. We expect to close the year with close to around 1,400 vessels having changed hands, which in its own is an impressive figure even when compared to the levels seen in 2007 and Newbuilding Market Total new orders placed this month: 265 The new building market has been getting ever more fired up, with more and more owners getting in on the new order game as the fear more and more that prices have only one way to go and that s up. Shipbuilders are getting even better at maintaining this sentiment, with many of them having limited their available slots and now offering at a considerable premium the possibility of squeezing extra availability for2015. This report has been prepared and published by Intermodal Research & Valuations department. The material is intended for the clients of Intermodal Shipbrokers Co. and any reproduction or re-distribution is prohibited without prior permission. Please refer to our disclaimer and legal disclosure on the final page for further information. If you wish to subscribe to this or any other report we produce, please contact us directly. Contents Special Feature... 2 Secondhand Market... 3 Newbuilding Market... 4 Demolition Market... 5 Dry Bulkers... 6 Fleet Profile... 6 Sale and Purchase Market... 8 Freight Market... 9 Tankers...10 Fleet Profile Sale and Purchase Market Freight Market Containerships...14 Fleet Profile Markets Gas Carriers...17 Fleet Profile Markets Contact Information...20 Demolition Market Total vessels scrapped this month: 108 The demolition market has completely lost its footing and if the Indian government loses it war with the forex markets it may well be that we find ourselves back to early 2000 s demo prices something that would drastically limit activity and holt any ship owner's intention to scrap any further vessel. Secondhand Prices of 5 year old vessels (million US$) Capesize VLCC Panamax $38.0 $55.9 $18.8 Panamax Suezmax Sub-Pmax $22.9 $40.0 $16.3 Supramax Aframax Feedermax $22.5 $28.4 $14.0 Handysize LR1 Feeder $18.4 $30.1 $6.0 MR $27.8 B B B R B B R B D R B B R Newbuilding Prices (million US$) Capesize VLCC Panamax LNG $51.4 $90.4 $44.0 $185.0 Panamax Suezmax Sub-Pmax LPG - VLGC $27.5 $56.0 $31.3 $71.5 Supramax Aframax Feedermax LPG - LGC $25.6 $49.4 $25.0 $63.0 Handysize LR1 Feeder LPG - MGC $21.9 $41.9 $14.0 $48.1 MR LPG - SGC $34.5 B $42.1 B B R R B R R R B B R R B B R B Scrap Prices India China Turkey Bangladesh Pakistan Average ($/ldt) $411 $359 $314 $400 $413 B

2 SPECIAL FEATURE Tankers feeling the Westerly Trade Winds With market demand intensifying considerably towards the end of October for most of the large crude oil tanker Eastbound routes, we believe that it s a great opportunity to re-evaluate what effect China s economic growth can really have on this market. The latest spike in demand from the Far East has not only helped the market recover from its doldrums but has also provided the foundation for a strong boost in freight rates for several routes (the intensity of which similar has not been seen in 2013). Amongst these we have seen rates for the TCE for MEG/Japan almost double on 1st November 2013 when it reached just USD 42,000/day, similarly the WAF/ F.East route gained by around 40% in just one day, touching the very lucrative level of USD 98,939/day. It s no wonder that we had media frenzy on the matter, with all of them quick to call on this accelerated demand as the corner stone of a full on recovery of the market. For one, the new found hope on Chinese demand might end up being very short-lived, as we already have many noting that although imports are on the rise internal demand seems to have dropped compared to a year earlier. This means that most of the current imports have been potential for the purpose of re-stocking. This point may be even taken further as some propose possible build-up of commercial inventories ahead of the commissioning of some of the most recent refinery units. This may well be more cause for worries then you would think, as the most recent imports are for the use for China s expansionary petroleum exports plan which once put into play may well cause crude oil shipments to drop to other refinery destinations some of which may lay further away from China and as such bring about a drop in overall market tonne-mile demand. still caped as the requirements to supply crude from the MEG is minimal as it lies fairly close in nautical mile terms. Demand for crude sourced from WAF could provide a higher market upswing potential, although with the level of tonnage oversupply left after the wake of lacking demand from the Western economies, might require significantly more STEMS per calendar month in order to keep the current active fleet fully busy. The good news is that that may well be what is on the horizon for the tanker industry. Chinese oil consumption is set prime for a major increase over the next couple of years. With the average income still rising fast and more people moving to major cities, transportation has become a key ingredient to keeping its growing megalopolises interconnected and economically thriving. These massive populations take a whole lot of oil to move around and as their disposable income rises, so does their fuel consumption. We have seen Chinese oil imports more than double over the past decade and this rate is ever more likely to continue over the upcoming years and possibly at an even faster pace. One only needs to look at what happened in the development process of other Far Eastern economies in the past and you can pretty much be certain that oil will be what fuels the next step in China s economic development. Let s hope it s enough to slowly bring a balance in the tanker industry and cover much of this excess tonnage supply that has amassed the past couple of years. Way may be far from seeing lucrative rates of return on investments, however it seems that way may well find ourselves out of the muck we have seen over the past 24 months or so. George Lazaridis Research Analyst The second and most important point is that, even in the case that this new crude oil import growth is based on expectations of high per capita consumption increase of China itself, the potential gain is Chinese oil imports by source (million tonnes) Unidentified * Japan Australasia West Africa Middle East Europe Mexico US Other Asia Pacific India East & Southern Africa North Africa Former Soviet Union S. & Cent. America Canada Sources: Intermodal Research, IHS Fairplay 2

3 Vessel Purchases (last 12 months) UNITS OUTLAY ($) DWT November $1,876.66m 6,345,799 December $944.63m 4,449,363 January $1,347.13m 6,173,921 February $1,373.55m 4,617,506 March $1,405.70m 6,369,249 April $1,672.50m 5,928,965 May $1,210.37m 6,357,118 June $1,246.58m 5,609,308 July $1,258.46m 4,467,920 August $1,709.75m 8,674,667 September $2,591.22m 7,695,117 October $2,184.15m 8,658,055 Summary The secondhand market shows no sign of slowing down, with the latest figures this month showing 2013 volumes having already surpassed the volumes of 2012 as a whole. As always December will likely be a slower month then the average, however even taking this into account. We expect to close the year with close to around 1,400 vessels having changed hands, which in its own is an impressive figure even when compared to the levels seen in 2007 and TOTAL 1474 $18,820.69m 75,346,988 Activity in 2013 Vs 2012 units Seller Statistics (2013) UNITS OUTLAY ($) Japan 185 $2,539.16m Germany 123 $844.71m Greece 98 $1,439.12m Hong Kong 59 $910.40m S. Korea 54 $803.54m Turkey 35 $461.09m Norway 31 $174.70m China 31 $463.65m Singapore 24 $332.40m Denmark 22 $448.35m undisclosed 242 $2,838.73m all other 358 $4,743.54m TOTAL 1262 $15,999.40m Buyer Statistics UNITS % OUTLAY ($) % DWT % UNITS OUTLAY ($) DWT Greece % $5,052.93m 31.6% 22,939, % 210 $3,759.88m 17,140,563 China % $1,069.42m 6.7% 5,701, % 115 $874.70m 6,238,912 U. S. A % $1,208.95m 7.6% 2,667, % 37 $523.05m 887,619 Norway % $1,241.20m 7.8% 3,086, % 23 $531.63m 979,735 Hong Kong % $470.40m 2.9% 1,990, % 9 $113.40m 446,422 Singapore % $607.02m 3.8% 2,794, % 38 $482.50m 2,194,869 S. Korea % $294.55m 1.8% 1,801, % 49 $1,089.39m 6,470,949 Indonesia % $250.20m 1.6% 1,258, % 48 $284.20m 1,111,567 Turkey % $400.55m 2.5% 743, % 40 $349.23m 1,100,967 Germany % $236.17m 1.5% 735, % 19 $223.65m 495,887 undisclosed % $2,039.50m 12.7% 8,353, % 254 $1,738.41m 7,042,371 all other % $3,128.51m 19.6% 12,477, % 384 $4,517.84m 13,057,656 TOTAL % $15,999.40m 100.0% 64,551, % 1,226 $14,487.87m 57,167,517 3

4 Buyer Statistics UNITS OUTLAY (US$) DWT Greece 181 $1,797.60m 15,965,411 Japan 176 $335.50m 6,462,048 China 146 $2,928.80m 8,985,926 U. S. A. 129 $9,813.00m 4,259,949 Singapore 125 $0.00m 2,661,150 Germany 109 $363.61m 6,423,991 Norway 106 $2,971.37m 2,954,053 S. Korea 94 $2,017.20m 6,237,817 Monaco 91 $3,143.00m 5,751,274 Bermuda 85 $702.00m 8,220,140 undisclosed 1067 $4,290.08m 32,125,971 all other 752 $15,011.86m 26,207,637 Total 3061 $43,374.02m 126,255,367 Summary The new building market has been getting ever more fired up, with more and more owners getting in on the new order game as the fear more and more that prices have only one way to go and that s up. Shipbuilders are getting even better at maintaining this sentiment, with many of them having limited their available slots and now offering at a considerable premium the possibility of squeezing extra availability for2015. Smart marketing techniques can only get you so far and if the market doesn t keep on its promise to improve, they may well find themselves lacking in business. This most recent marketing technique however also makes for more prudent management practices allowing them to hold lower costs during lean times. Activity in 2013 Vs 2012 (incl. Bulkers, Tankers, Containers & Gas) units Percentage of new orders secured by each Shipbuilding Nation (2013) S. Korea 29% 16% 50 0 China Japan 18% 37% All Other New orders placed (last 12 months) Bulk Carrier Tanker Gas Carrier Container Other Total November December January February March April May June July August September October TOTAL ,637 3,414 4

5 Vessels Scrapped (last 12 months) UNITS LDT DWT November ,451 4,778,580 December ,017 5,004,832 January ,295 5,463,149 February ,819 3,221,530 March ,003,392 5,627,344 April ,468 4,305,480 May ,667 4,051,810 June ,700 3,344,926 July ,783 4,482,621 August ,649 3,572,825 September ,670 4,358,037 October ,016 3,651,609 TOTAL 1,666 9,863,927 51,862,743 Summary The demolition market has completely lost its footing and if the Indian government loses it war with the forex markets it may well be that we find ourselves back to early 2000 s demo prices something that would drastically limit activity and holt any ship owner's intention to scrap any further vessel. Up to now Bangladesh and Pakistan have been making up for there limited activity and taking up the slack left behind by Indian shipbreakers. Despite all this we will see around 25% less activity in the whole of 2013 compared to what we saw in thee record year of Demo Seller Statistics Activity in 2013 Vs UNITS DWT UNITS DWT China 153 6,088, ,346,178 Greece 94 4,847, ,640,576 Turkey 80 1,233, ,602 Russia , ,005 Vietnam , ,327 Germany 55 1,685, ,221,296 Japan 44 2,240, ,135,861 Hong Kong 39 2,231, ,038,788 Singapore 31 2,060, ,463,166 India , ,282,543 undisclosed 137 5,298, ,016,909 all other ,669,612 1,029 25,309,201 Total ,079,331 1,975 65,708,452 Demo Country Statistics Average Prices for scrap (US$/ldt) units UNITS % LDT % DWT % UNITS LDT DWT India % 2,480, % 9,841, % 404 3,874,350 16,718,603 China % 1,630, % 9,028, % 160 1,541,617 8,595,382 Turkey % 350, % 1,134, % , ,045 Bangladesh % 1,512, % 8,834, % 152 1,861,988 11,145,572 Pakistan % 982, % 6,963, % 79 1,352,681 8,547,123 Unk./Other % 1,023, % 6,276, % 1,119 3,267,697 19,890,727 Total % 7,980, % 42,079, % 1,975 12,172,279 65,708,452 India China Turkey Bangladesh Pakistan Wet $410 B $361 D $318 D $405 B $423 B Dry $411 B $358 D $310 R $396 B $403 B

6 < no. Vessel 1,400 1,200 1, % Orderbook to fleet ratio Active Fleet: 8,900 Vsls On Order: 1,501 Vsls (17%) Fleet breakdown 11% 9% All Dry Bulkers in service per country of shipbuilder 47% Japan China 6% 8% All Dry Bulkers on order per country of shipbuilder 53% China Japan 33% S. Korea Rest of the World 33% S. Korea Rest of the World Fleet Breakdown In Service Fleet Orderbook Total <5years 5-10years 10-15years 15-20years 20-25years >25years Total ,999 dwt 1, ,999 dwt 1, Handysize 2,305 1, ,999 dwt ,999 dwt 1,836 1, ,999 dwt* Supra/Handymax 2,691 1, ,999 dwt ,999 dwt 1, ,999 dwt** Panamax 1, ,999 dwt ,999 dwt PostPanamax ,999 dwt ,999 dwt 1, >200,000 dwt VLOC/Capesize 1, Total (>20,000dwt) 8,900 4,335 1, , ,

7 No. Vessels 8,960 8,910 8,860 8,810 8,760 8,710 8, Fleet Development this month ,610 Fleet at 01/Oct/13 Additions Demolitions Other Removals Fleet at 01/Nov/13 In Service Fleet Development Fleet as at Additions Demolitions Other Removals/ Fleet as at Nett Change 01 Oct 2013 October-2013 October-2013 Additions 01 Nov 2013 October-2013 no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt Handysize 2, , Supra/Handymax 2, , Panamax 1, , PostPanamax VLOC/Capesize 1, , Total (>20,000dwt) 8, , Orderbook Development Orderbook as at New orders Deliveries Other Removals/ Orderbook as at Nett Change 01 Oct 2013 October-2013 October-2013 Additions 01 Nov 2013 October-2013 no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt Handysize Supra/Handymax Panamax PostPanamax VLOC/Capesize Total (>20,000dwt) 1, , In Service Fleet Vs. Orderbook no. in Service no. on Order pct DWT in Service DWT on Order pct Handysize 2, % 71,382,732 13,903,723 19% Supra/Handymax 2, % 142,757,528 26,808,952 19% Panamax 1, % 147,239,589 29,952,942 20% PostPanamax % 49,879,569 5,607,390 11% VLOC/Capesize 1, % 279,303,326 42,459,861 15% Total (>20,000dwt) 8,900 1,501 17% 690,562, ,732,868 17% 7

8 Handysize Supramax Panamax Capesize Newbuilding prices (million US$) mill USD Capesize Panamax $100.0 Supra/Handymax Handysize $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 Secondhand prices (million US$) mill USD Capesize Panamax $160.0 Supra/Handymax Handysize $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 Market summary There has been a rapid movement in asset prices for both new building and secondhand dry bulkers this past month. The increased activity coupled with the limited amount of sale candidates available has pushed potential buyers to look deep into their pockets and constantly pay a premium on top of whatever the last done market sale was. This month it has been the modern Capes that have attracted much of the buying interest and as such the largest price gains, while at the same time the Panamax sector still seems to be rising. The smaller size segments haven t shown much promise for yet another month with the Handies showing hardly any increases in prices. Despite the Dry Bulk freight market having lost most of its upward momentum this month, there was still an evident pressure that was created both from the shipbuilders themselves which have been actively pushing up prices for new orders but from buyers themselves, which seem to have a more bullish approach and seeing the increases in newbuilding prices become ever more confident that the previous lows seen 12 months ago are long behind us and if you don t hurry even at these price levels you are going to miss out on some cheap buys. Indicative Market Values (US$ million) Vessel Oct-13 Sep-13 ±% Trend NB 180K $ 51.4m $ 49.5m 3.8% $ 46.6m $ 52.5m $ 63.2m $ 63.9m Resale 180K $ 48.6m $ 45.0m 8.1% $ 42.8m $ 53.5m $ 69.3m $ 65.0m 5Y 170K $ 38.0m $ 36.0m 5.6% $ 34.0m $ 43.0m $ 56.9m $ 50.5m 10Y 170K $ 25.5m $ 23.0m 10.9% $ 23.2m $ 32.7m $ 42.9m $ 40.1m 15Y 150K $ 15.6m $ 15.0m 4.2% $ 14.6m $ 19.6m $ 26.5m $ 25.9m 20Y 150K $ 9.0m $ 9.0m 0.0% $ 10.1m $ 15.0m $ 17.5m $ 18.2m NB 78K $ 27.5m $ 27.0m 1.9% $ 27.0m $ 32.1m $ 38.6m $ 36.9m Resale 78K $ 30.2m $ 29.8m 1.3% $ 29.4m $ 38.7m $ 44.0m $ 38.7m 5Y 75K $ 22.9m $ 21.0m 8.9% $ 22.1m $ 30.9m $ 37.9m $ 31.6m 10Y 72K $ 16.1m $ 15.3m 5.1% $ 16.3m $ 24.5m $ 30.9m $ 24.0m 15Y 69K $ 10.0m $ 9.0m 11.1% $ 11.0m $ 17.2m $ 23.1m $ 18.3m 20Y 69K $ 6.1m $ 5.5m 11.4% $ 7.8m $ 13.5m $ 14.5m $ 10.4m NB 58K $ 25.6m $ 25.0m 2.5% $ 25.1m $ 29.6m $ 32.7m $ 32.1m Resale 58K $ 29.3m $ 28.0m 4.5% $ 27.5m $ 33.5m $ 38.2m $ 33.9m 5Y 58K $ 22.5m $ 21.5m 4.4% $ 21.8m $ 27.9m $ 30.3m $ 26.3m 10Y 57K $ 16.8m $ 16.5m 2.0% $ 16.0m $ 21.1m $ 24.2m $ 19.4m 15Y 45K $ 9.8m $ 9.5m 3.4% $ 10.6m $ 16.0m $ 19.5m $ 15.2m 20Y 43K $ 6.5m $ 6.5m 0.0% $ 7.8m $ 11.5m $ 12.4m $ 9.2m NB 30K $ 21.9m $ 21.8m 0.6% $ 21.9m $ 24.6m $ 27.8m $ 26.4m Resale 30K $ 23.0m $ 23.0m 0.0% $ 22.5m $ 27.0m $ 29.0m $ 25.2m 5Y 30K $ 18.4m $ 18.2m 1.2% $ 17.6m $ 23.0m $ 25.5m $ 21.0m 10Y 30K $ 13.0m $ 13.0m 0.0% $ 13.5m $ 18.2m $ 20.2m $ 15.6m 15Y 30K $ 9.0m $ 9.0m 0.0% $ 8.4m $ 13.6m $ 15.1m $ 11.0m 20Y 30K $ 6.0m $ 6.0m 0.0% $ 6.2m $ 9.6m $ 10.1m $ 7.5m 8

9 Handy Supramax Panamax Capesize Average period T/C rates (US$/day) $/day Capesize Panamax Supramax Handysize 200, , ,000 50,000 0 Average spot T/C rates (US$/day) $/day Capesize Panamax Supramax Handysize 250, , , ,000 50,000 0 Market summary October was an overwhelmingly positive month for dry bulk owners, with rates increasing in both basins and across the board. Supras witnessed a 50% increase in their daily earnings, with the average TCE on their four main routes having now reached very good levels. The capes continued to look positive although they have now dropped from their previous peak levels. The iron ore surge has now subdued and although there is limited open tonnage around the constant fresh inquires poring in have been limiting any rises in position lists and therefore things are still farily tight and to the owner s advantage. Supras and Handies have been also gaining some ground this month. There had been some activity that had continued on from South America, while the USGulf has been helping clean up any excess tonnage in the Atlantic basin for the biggest part of this month. The Pacific was also a lot more active with significant movement seen in the North Pacific while Cargoes ex-india and Indonesia had been keeping the Supras quite occupied. Going into the final two months of the year things might start to slow down especially close to December. However things are looking a lot more promising then they did the same period last year and there is still much to be hopefully especially if the U.S. shows a bullish side in the final quarter.. Average period T/C rates (US$/day) Vessel Index Avg. Atlantic Avg. Pacific 6mos period 1yr period Index Avg. Atlantic Avg. Pacific 6mos period 1yr period Index Avg. Atlantic Avg. Pacific 6mos period 1yr period Index Avg. Atlantic Avg. Pacific 6mos period 1yr period Oct-13 Sep-13 ±% Trend ,499 3, % 1,571 2,237 3,480 4,172 $ 42,783/d $ 39,198/d 9.1% $ 15,348/d $ 24,015/d $ 43,861/d $ 53,884/d $ 20,986/d $ 20,383/d 3.0% -$ 30/d $ 7,264/d $ 22,734/d $ 31,426/d $ 27,300/d $ 26,800/d 1.9% $ 13,349/d $ 18,274/d $ 36,283/d $ 39,692/d $ 21,400/d $ 21,550/d -0.7% $ 13,685/d $ 16,938/d $ 32,967/d $ 33,276/d 1,975 1, % 965 1,749 3,115 2,405 $ 21,508/d $ 14,356/d 49.8% $ 11,929/d $ 19,544/d $ 31,085/d $ 25,274/d $ 10,140/d $ 6,719/d 50.9% $ 3,467/d $ 8,457/d $ 18,999/d $ 13,336/d $ 16,825/d $ 12,950/d 29.9% $ 10,803/d $ 17,038/d $ 28,679/d $ 21,603/d $ 13,225/d $ 11,440/d 15.6% $ 9,706/d $ 14,663/d $ 24,559/d $ 18,151/d 1, % 906 1,377 2,148 1,658 $ 15,909/d $ 12,871/d 23.6% $ 13,343/d $ 19,729/d $ 29,051/d $ 24,006/d $ 9,810/d $ 7,804/d 25.7% $ 6,772/d $ 10,286/d $ 17,222/d $ 13,765/d $ 12,525/d $ 11,480/d 9.1% $ 10,976/d $ 15,387/d $ 24,369/d $ 17,279/d $ 11,050/d $ 10,130/d 9.1% $ 10,130/d $ 14,108/d $ 20,847/d $ 14,678/d % , $ 9,741/d $ 8,579/d 13.5% $ 8,337/d $ 11,603/d $ 17,671/d $ 13,152/d $ 8,077/d $ 7,209/d 12.0% $ 6,952/d $ 9,500/d $ 15,182/d $ 9,526/d $ 9,100/d $ 8,680/d 4.8% $ 8,055/d $ 11,512/d $ 16,708/d $ 11,409/d $ 8,850/d $ 8,380/d 5.6% $ 8,224/d $ 11,587/d $ 15,662/d $ 10,678/d 9

10 < no. Vessels % Orderbook to fleet ratio In Service Fleet: 4,481 Vsls On Order: 531 Vsls (12%) Fleet breakdown 16% 11% All Tankers in service per country of shipbuilder S. Korea 5% 13% All Tankers on order per country of shipbuilder S. Korea 49% Japan 54% China China 28% Brazil 24% Rest of the World Rest of the World Fleet Breakdown In Service Fleet Orderbook Total <5years 5-10years 10-15years 15-20years 20-25years >25years Total ,999 dwt ,999 dwt ,999 dwt 1, MR 2, ,999 dwt ,999 dwt Panamax/LR ,999 dwt ,999 dwt Aframax/LR ,999 dwt ,999 dwt Suezmax ,999 dwt >320,000 dwt VLCC Total (>25,000dwt) 4,481 1,447 1,

11 Fleet Development this month No. Vessels 4,500 4, , ,470 4,460 4,450 4,440 4,430 4,420 4,410 Fleet at 01/Oct/13 Additions Demolitions Other Removals Fleet at 01/Nov/13 In Service Fleet Development Fleet as at 01 Oct 2013 Additions October-2013 Demolitions October-2013 Other Removals/ Additions Fleet as at 01 Nov 2013 Nett Change October-2013 no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt MR 2, , Panamax/LR Aframax/LR Suezmax VLCC Total (>25,000dwt) 4, , Orderbook Development Orderbook as at New orders Deliveries Other Removals/ Orderbook as at Nett Change 01 Oct 2013 October-2013 October-2013 Additions 01 Nov 2013 October-2013 no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt no. Vsls mill dwt MR Panamax/LR Aframax/LR Suezmax VLCC Total (>25,000dwt) In Service Fleet Vs. Orderbook no. in Service no. on Order pct DWT in Service DWT on Order pct MR 2, % 87,190,469 14,594,879 17% Panamax/LR % 30,354,617 1,865,498 6% Aframax/LR % 97,413,135 9,652,616 10% Suezmax % 76,176,048 8,076,670 11% VLCC % 193,808,268 18,659,178 10% Total (>25,000dwt) 4, % 484,942,537 52,848,841 11% 11

12 MR LR1 Aframax Suezmax VLCC Newbuilding prices (million US$) Mil US$ $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 VLCC Suezmax Aframax LR1 MR Secondhand prices (million US$) Mil US$ $180.0 $160.0 $140.0 $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 VLCC Suezmax Aframax LR1 MR Market summary Beyond the rises witnessed in the products market, overall tanker values have remain steady with a slightly positive feel. The poor performance of the crude oil tankers especially in the first weeks of October has left most buyers a taste of pessimism as to the near-term prospects of the market. However with secondhand asset prices having held for so long at such low levels compared to their new building counterparts many could consider them bargain buys if their earnings could support it. That may well be what we will have in the next couple of months as the seasonal upswing in freight rates has started to take place and looking more bullish than usual thanks to a rapid, as it seems, restocking by the Chinese. The question is, will this be enough to reshape confidence in these battered sectors. That s as far as the large crude oil carriers go, however it s a whole different story in the products market where modern vessels have been showing strong increases over the past couple of months and many big names in the market have shown keen interest even at their current levels. Indicative Market Values (US$ million) Vessel Oct-13 Sep-13 ±% Trend NB 300K $ 90.4m $ 90.0m 0.4% $ 93.3m $ 98.7m $ 102.7m $ 109.3m Resale 300K $ 81.9m $ 80.6m 1.6% $ 84.8m $ 94.5m $ 104.3m $ 107.9m 5Y 300K $ 55.9m $ 55.3m 1.1% $ 58.9m $ 69.2m $ 80.8m $ 84.6m 10Y 250K $ 35.0m $ 35.0m 0.0% $ 37.2m $ 44.7m $ 56.5m $ 63.4m NB 150K $ 56.0m $ 56.0m 0.0% $ 57.3m $ 60.9m $ 65.6m $ 70.6m Resale 150K $ 55.0m $ 54.6m 0.7% $ 57.2m $ 62.5m $ 68.8m $ 73.1m 5Y 150K $ 40.0m $ 39.6m 0.9% $ 42.3m $ 49.2m $ 57.3m $ 61.2m 10Y 150K $ 24.0m $ 24.0m 0.0% $ 27.6m $ 33.3m $ 40.6m $ 45.8m 15Y 150K $ 14.0m $ 14.0m 0.0% $ 16.6m $ 19.3m $ 22.8m $ 27.8m NB 110K $ 49.4m $ 49.1m 0.7% $ 49.0m $ 51.9m $ 54.4m $ 56.4m Resale 105K $ 40.0m $ 40.0m 0.0% $ 42.0m $ 46.8m $ 53.2m $ 55.9m 5Y 96K $ 28.4m $ 29.4m -3.4% $ 29.9m $ 34.9m $ 41.5m $ 44.1m 10Y 96K $ 18.4m $ 19.4m -5.2% $ 18.4m $ 22.3m $ 28.1m $ 31.0m 15Y 85K $ 8.1m $ 8.9m -8.5% $ 9.8m $ 12.4m $ 15.5m $ 17.3m NB 70K $ 41.9m $ 41.6m 0.8% $ 41.7m $ 43.3m $ 44.5m $ 47.7m Resale 70K $ 40.1m $ 39.0m 2.9% $ 36.8m $ 40.6m $ 45.5m $ 47.4m 5Y 65K $ 30.1m $ 29.0m 3.9% $ 26.8m $ 30.6m $ 35.7m $ 37.5m 10Y 65K $ 20.1m $ 19.0m 5.9% $ 17.4m $ 19.9m $ 23.2m $ 26.0m NB 52K $ 34.5m $ 34.2m 0.7% $ 33.9m $ 34.8m $ 35.6m $ 37.7m Resale 52K $ 37.5m $ 36.1m 3.8% $ 35.0m $ 36.4m $ 37.0m $ 37.1m 5Y 52K $ 27.8m $ 27.0m 2.8% $ 25.3m $ 26.6m $ 27.4m $ 28.1m 10Y 45K $ 18.8m $ 19.0m -1.3% $ 16.8m $ 17.4m $ 18.0m $ 20.1m 15Y 45K $ 10.4m $ 11.0m -5.7% $ 9.9m $ 10.4m $ 11.6m $ 12.6m 12

13 MR Panamax Aframax Suezmax VLCC Average period T/C rates (US$/day) $/day VLCC Suezmax Aframax 100,000 Panamax MR 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 Average spot TCE rates (US$/day) $/day 180, , , , ,000 80,000 60,000 40,000 20,000 0 VLCC Suezmax Aframax Panamax MR Market summary The VL s were the first to show the major gains from the seasonal spike in demand, with interest from the Far East clearing much of the excess tonnage and leaving prime conditions for even a profitable spike in freight rates. Despite similar not having spilled over completely to the Suez and Afras there have been notable gains there two and with the new wave of fresh inquiries rapidly poring in, November could end up being the hottest month yet. Suez and Afras also shoed a bit of difficulty in the first weeks of the month especially in the Black Sea/Med region, although this seems to have reversed fairly quickly and earning seem to have now returned back to normal. In the products tanker sector things took a turn for the worst, as the decrease in enquiries left a number of the major routes with considerably increased position lists, while many owners look to reposition there vessels elsewhere and at a considerable discount in an effort to reach better returns. Average period T/C rates (US$/day) Vessel Oct-13 Sep-13 ±% Trend MEG-Japan MEG-USG WAF-USG 1yr period 3yr period WAF-USAC Med-Med 1yr period 3yr period Med-Med UKC-UKC Caribs-USG 1yr period 3yr period MEG-Japan (LR1) UKC-USG Med-USG 1yr period 3yr period UKC-USAC Med-Med Med-UKC 1yr period 3yr period $ 20,310/d $ 11,242/d 80.7% $ 21,830/d $ 18,212/d $ 41,615/d $ 30,972/d $ 15,515/d $ 8,643/d 79.5% $ 1,589/d $ 2,489/d $ 20,944/d $ 18,995/d $ 24,186/d $ 19,863/d 21.8% $ 31,452/d $ 25,709/d $ 45,306/d $ 42,508/d $ 18,000/d $ 18,000/d 0.0% $ 22,125/d $ 24,947/d $ 37,962/d $ 39,577/d $ 22,000/d $ 22,000/d 0.0% $ 26,995/d $ 31,481/d $ 38,349/d $ 37,548/d $ 8,087/d $ 4,934/d 63.9% $ 13,368/d $ 13,368/d $ 26,217/d $ 25,031/d $ 7,479/d $ 5,728/d 30.6% $ 22,106/d $ 25,110/d $ 36,301/d $ 31,392/d $ 15,875/d $ 16,000/d -0.8% $ 17,356/d $ 19,587/d $ 28,377/d $ 30,596/d $ 17,500/d $ 17,500/d 0.0% $ 20,952/d $ 23,630/d $ 27,387/d $ 29,096/d $ 10,061/d $ 8,718/d 15.4% $ 19,401/d $ 20,055/d $ 27,031/d $ 25,071/d $ 17,057/d $ 8,225/d 107.4% $ 18,512/d $ 18,599/d $ 24,220/d $ 15,080/d $ 13,306/d $ 17,482/d -23.9% $ 12,310/d $ 8,225/d $ 17,032/d $ 13,120/d $ 13,500/d $ 13,000/d 3.8% $ 13,639/d $ 15,457/d $ 18,731/d $ 20,077/d $ 15,000/d $ 14,750/d 1.7% $ 15,870/d $ 18,135/d $ 20,052/d $ 20,678/d $ 11,834/d $ 13,628/d -13.2% $ 10,852/d $ 7,753/d $ 10,769/d $ 13,608/d $ 13,209/d $ 16,794/d -21.3% $ 16,566/d $ 11,261/d $ 16,414/d $ 14,086/d $ 11,538/d $ 13,595/d -15.1% $ 14,720/d $ 9,661/d $ 14,343/d $ 12,775/d $ 15,750/d $ 15,000/d 5.0% $ 12,995/d $ 14,745/d $ 16,604/d $ 19,375/d $ 16,000/d $ 15,500/d 3.2% $ 14,168/d $ 16,063/d $ 17,495/d $ 19,957/d -$ 1,463/d $ 3,976/d % $ 9,246/d $ 11,017/d $ 10,526/d $ 8,539/d $ 5,125/d $ 7,864/d -34.8% $ 19,047/d $ 18,443/d $ 19,918/d $ 8,840/d $ 6,973/d $ 6,582/d 5.9% $ 3,059/d $ 1,929/d $ 2,715/d $ 1,957/d $ 14,750/d $ 14,500/d 1.7% $ 13,514/d $ 13,668/d $ 13,160/d $ 15,231/d $ 15,500/d $ 15,500/d 0.0% $ 14,389/d $ 14,538/d $ 14,175/d $ 15,870/d 13

14 < no. Vessels % Orderbook to fleet ratio Active Fleet: 5,023 Vsls On Order: 493 Vsls (10%) Fleet breakdown 31% All Containerships in service per country of shipbuilder 34% S. Korea China 6% 15% All Containerships on order per country of shipbuilder 46% China S. Korea Japan Philippines 15% 20% Rest of the World 33% Rest of the World Fleet Breakdown In Service Fleet Orderbook Total <5years 5-10years 10-15years 15-20years 20-25years >25years Total <499 teu teu ,999 teu 1, Feeder 2, Sub-Panamax ,999 teu ,199 teu Panamax 1, ,200-7,999 teu ,999 teu Post-Panamax ,999 teu ,999 teu SPP ULCV Total 5,023 1,149 1,

15 No. Vessels 5,050 5,040 5,030 5,020 5,010 5, Fleet Development this month ,990 Fleet at 01/Oct/13 Additions Demolitions Other Removals Fleet at 01/Nov/13 Fleet Development Fleet as at 01 Oct 2013 Additions October-2013 Demolitions October-2013 Other Removals/ Additions Fleet as at 01 Nov 2013 Nett Change October-2013 no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu Feeder 2, , Sub-Panamax Panamax 1, , Post-Panamax ULCV/SPP Total (fully cellular) 5, , Orderbook Development Orderbook as at New orders Deliveries Other Removals/ Orderbook as at Nett Change 01 Oct 2013 October-2013 October-2013 Additions 01 Nov 2013 October-2013 no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu no. Vsls mill teu Feeder Sub-Panamax Panamax Post-Panamax ULCV/SPP Total (fully cellular) In Service Fleet Vs. Orderbook no. in Service no. on Order pct TEU in Service TEU on Order pct Feeder 2, % 2,370, ,472 5% Sub-Panamax % 1,709, ,410 8% Panamax 1, % 4,407, ,158 7% Post-Panamax % 6,079,220 1,011,237 17% ULCV/SPP % 2,524,425 2,024,574 80% Total 5, % 17,092,249 3,603,851 21% 15

16 Feeder Feedermax Sub-Panamax Panamax Newbuilding prices (million US$) Mil US$ PANAMAX SUB-PANAMAX FEEDERMAX FEEDER $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 Average 12 month T/C rates (US$/day) $/day PANAMAX SUB-PANAMAX FEEDERMAX FEEDER $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Market summary With the containership market still lacking its seasonal boom in demand, container vessels lacked any support and as such remained steady in both asset prices and time charter rates. With many now worrying that this will be further exacerbated by the U.S. s October shut down as it might have impaired the typical Christmas buying drive that sees U.S. consumers more then double their usual spending consumer products. In the event that we don t see a strong enough demand drive till mid December, it is likely that things will get considerably more difficult in the new year, with the first quarter of 2014 probably seeing further KG bankruptcies and even possibly a rising number of lay-ups especially in the Panamax and Sub-Panamax sectors. At the same time operators have continued to invest in meg-ships for their main routes and some have even contemplated using the beyond just those. The need for a different type of vessel with larger capacities and at more economical speeds has marginalised a lot of the 90 s and even early 2000 s vessels in the market. Market Rates and Prices Vessel NB SH price (5yr old) SH price (10yr old) SH price (15yr old) 12mos TC (4,500teu) 12mos TC (3,500teu) NB SH price (5yr old) SH price (10yr old) SH price (15yr old) 12mos TC (gearless) 12mos TC (geared) NB SH price (5yr old) SH price (10yr old) SH price (15yr old) 12mos TC (1,500teu) NB SH price (5yr old) SH price (10yr old) SH price (15yr old) 12mos TC (725teu) Oct-13 Sep-13 ±% Trend $ 44.0mil $ 44.0mil 0.0% $ 48.4mil $ 56.8mil $ 50.6mil $ 55.5mil $ 18.8mil $ 18.8mil 0.0% $ 23.8mil $ 40.8mil $ 36.6mil $ 23.3mil $ 11.3mil $ 11.3mil 0.0% $ 15.4mil $ 34.2mil $ 28.9mil $ 17.4mil $ 7.0mil $ 7.0mil 0.0% $ 9.1mil $ 20.5mil $ 15.0mil $ 11.3mil $ 8,850/d $ 8,850/d 0.0% $ 9,963/d $ 19,668/d $ 18,821/d $ 7,807/d $ 7,500/d $ 7,500/d 0.0% $ 7,189/d $ 14,773/d $ 13,198/d $ 6,600/d $ 31.3mil $ 31.3mil 0.0% $ 33.5mil $ 39.2mil $ 35.0mil $ 34.7mil $ 16.3mil $ 16.3mil 0.0% $ 20.3mil $ 32.8mil $ 30.8mil $ 20.4mil $ 10.3mil $ 10.3mil 0.0% $ 13.8mil $ 24.7mil $ 22.9mil $ 15.0mil $ 6.0mil $ 6.0mil 0.0% $ 7.3mil $ 16.9mil $ 13.2mil $ 9.3mil $ 7,000/d $ 7,000/d 0.0% $ 6,739/d $ 13,303/d $ 9,943/d $ 5,667/d $ 7,560/d $ 7,800/d -3.1% $ 6,877/d $ 11,971/d $ 8,993/d $ 5,414/d $ 25.0mil $ 25.0mil 0.0% $ 25.0mil $ 30.7mil $ 29.4mil $ 29.2mil $ 14.0mil $ 14.0mil 0.0% $ 14.0mil $ 22.2mil $ 21.1mil $ 13.9mil $ 8.8mil $ 8.8mil 0.0% $ 9.7mil $ 15.8mil $ 14.3mil $ 9.6mil $ 5.5mil $ 5.5mil 0.0% $ 5.2mil $ 11.6mil $ 9.5mil $ 6.0mil $ 7,660/d $ 7,500/d 2.1% $ 6,292/d $ 10,113/d $ 6,798/d $ 4,763/d $ 14.0mil $ 14.0mil 0.0% $ 13.3mil $ 15.9mil $ 15.1mil $ 13.2mil $ 6.0mil $ 6.0mil 0.0% $ 6.7mil $ 9.8mil $ 9.1mil $ 9.8mil $ 4.0mil $ 4.0mil 0.0% $ 5.2mil $ 9.0mil $ 7.5mil $ 7.1mil $ 1.0mil $ 1.0mil 0.0% $ 1.6mil $ 2.9mil $ 2.3mil $ 2.8mil $ 5,100/d $ 5,100/d 0.0% $ 4,380/d $ 5,463/d $ 4,538/d $ 3,564/d 16

17 < no. Vessels % Orderbook to fleet ratio Active Fleet: 1,640 Vsls On Order: 268 Vsls (16%) Fleet breakdown 19% All Gas Carriers in service per country of shipbuilder 8% All Gas Carriers on order per country of shipbuilder 8% 48% Japan S. Korea 19% 53% S. Korea China 25% China Rest of the World 20% Japan Rest of the World Fleet Breakdown In Service Fleet Orderbook Total <5years 5-10years 10-15years 15-20years 20-25years >25years Total SGC 1, MGC LGC VLGC Total LPG 1, Small Standard Q-Flex Q-Max Total LNG Total Gas Carriers 1,

18 Fleet Development this month No. Vessels 1,660 1,650 1, ,630 1,620 1,610 1,600 Fleet at 01/Oct/13 Additions Demolitions Other Removals Fleet at 01/Nov/13 Fleet Development Fleet as at 01 Oct 2013 Additions October-2013 Demolitions October-2013 Other Removals/ Additions Fleet as at 01 Nov 2013 Nett Change October-2013 no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm Total LPG 1, , Total LNG Total Gas Carriers 1, , Orderbook Development Orderbook as at New orders Deliveries Other Removals/ Orderbook as at Nett Change 01 Oct 2013 October-2013 October-2013 Additions 01 Nov 2013 October-2013 no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm no. Vsls mill cbm Total LPG Total LNG Total Gas Carriers In Service Fleet Vs. Orderbook no. in Service no. on Order pct CBM in Service CBM on Order pct Total LPG 1, % 20,911,542 4,755,990 23% Total LNG % 54,317,040 17,233,104 32% Total Gas Carriers 1, % 75,228,582 21,989,094 29% 18

19 SGC MGC LGC VLGC LNG Newbuilding prices (million US$) Mil US$ LNG VLGC LGC $250.0 MGC SGC $200.0 $150.0 $100.0 $50.0 $0.0 Average 12 month T/C rates (US$/day) $/month VLGC LGC $1,250 MGC SGC LNG (right axis) $1,000 $750 $500 $250 $'000/day $200 $160 $120 $80 $40 Market summary No significant shack-ups for the gas sector this month, although there have been some considerable moves being made in both the Secondhand and Newbuilding front by big player. Scorpios move to team up with Greek player Dorian has created quite a stir and is further evidence in the faith many market players have placed in this sector over the past couple of years. At the same time new orders are still trickling in here and there. The TC market has been quite different this month with rates having held at their September levels despite some demand spikes having been noted in some regions. LNG Market Rates and Prices Vessel NB 12mos TC (US$/day) Oct-13 Sep-13 ±% Trend $ 185.0mil $ 185.0mil 0.0% $ 185.5mil $ 186.1mil $ 186.5mil $ 201.9mil $ 74,600/d $ 75,000/d -0.5% $ 148,644/d $ 97,712/d $ 51,167/d - LPG Market Rates and Prices (US$ mill and US$ 000 per month respectively) Vessel Oct-13 Sep-13 ±% Trend NB Spot TCE (US$/mos) 12mos TC (US$/mos) $ 71.5mil $ 71.5mil 0.0% $ 71.0mil $ 72.8mil $ 71.5mil $ 80.8mil $ 1,279/m $ 1,370/m -6.6% $ 927/m $ 932/m $ 525/m $ 182/m $ 1,034/m $ 1,000/m 3.4% $ 928/m $ 795/m $ 576/m $ 499/m NB Spot rate (US$/MT) 12mos TC (US$/mos) NB 12mos TC (US$/mos) NB 12mos TC (US$/mos) $ 63.0mil $ 63.0mil 0.0% $ 62.3mil $ 63.0mil $ 64.3mil $ 72.6mil $ 63/MT $ 66/MT -3.9% $ 55/MT $ 55/MT $ 35/MT $ 22/MT $ 1,006/m $ 1,005/m 0.1% $ 888/m $ 721/m $ 616/m $ 624/m $ 48.1mil $ 48.0mil 0.2% $ 47.2mil $ 49.7mil $ 50.7mil $ 56.4mil $ 836/m $ 830/m 0.7% $ 783/m $ 665/m $ 604/m $ 621/m $ 42.1mil $ 42.0mil 0.2% $ 43.8mil $ 46.0mil $ 45.2mil $ 48.9mil $ 908/m $ 915/m -0.8% $ 858/m $ 693/m $ 611/m $ 726/m 19

20 Intermodal Shipbrokers Co. 17th km Ethniki Odos Athens-Lamia & 3 Agrambelis street, N.Kifisia Athens - Greece Switchboard: Fax: Website: Name Department Direct Tel. Mobile Priv. Newbuildings snp@intermodal.gr Kyriakos Dermatis S & P/ Newbuilding k.dermatis@intermodal.gr Theodoros Ntalakos S & P/ Newbuilding t.ntalakos@intermodal.gr Panagiotis Tsilingiris S & P/ Newbuilding p.tsilingiris@intermodal.gr Kanelli Anomitri (MS) S & P/ Newbuilding k.anomitri@intermodal.gr Sale and Purchase snp@intermodal.gr, offshore@intermodal.gr Demetris Evdemon S & P/ Demolition d.evdemon@intermodal.gr John N. Cotzias S & P/ RoRo-Passenger-Yachts j.cotzias@intermodal.gr Alexandros Poulopoulos S & P/ Offshore a.poulopoulos@intermodal.gr Yannis Olziersky S & P y.olziersky@intermodal.gr George Bassakos S & P g.bassakos@intermodal.gr Panos Makrinos S & P/ Demolition p.makrinos@intermodal.gr Timos Papadimitriou S & P t.papadimitriou@intermodal.gr Christos Mantzios S & P c.mantzios@intermodal.gr George Iliopoulos S & P g.iliopoulos@intermodal.gr Konstantinos Kontomichis S & P k.kontomichis@intermodal.gr Tanker Chartering tankers@intermodal.gr Lefteris Mystriotis Tanker Chartering l.mystriotis@intermodal.gr Katerina Resti Tanker Chartering k.resti@intermodal.gr Research and Valuations research@intermodal.gr George Lazaridis Research & Valuations g.lazaridis@intermodal.gr Eva Tzima Research & Valuations e.tzima@intermodal.gr Cotzias Intermodal - Representations & Agency agency@cotzias.gr Sophie N. Cotzias Representations & Agency s.cotzias@intermodal.gr Christopher T. Whitty Representations & Agency c.whitty@intermodal.gr Intermodal Shanghai Rep. Office D5, 16/F, Jiangsu Mansion 526 Laoshan road, Pu Dong area Shanghai P.R. China Switchboard :+86 (21) Fax:+86 (21) Website: Name Department Direct Tel. Mobile Priv. Newbuilding, Sale and Purchase Departments snp@intermodalshanghai.com George Dermatis S & P/ Newbuilding g.dermatis@intermodal.gr Tasos Papadopoulos S & P t.papadopoulos@intermodal.gr Christos Trageas S & P c.trageas@intermodalshanghai.com Jennie Cao (MS) S & P j.cao@intermodalshanghai.com Seeger Ding S & P s.ding@intermodalshanghai.com Daniel Zhang S & P d.zhang@intermodalshanghai.com Cathrine Tang (MS) Newbuilding c.tang@intermodalshanghai.com 20

21 Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.