25 May – 1 June, 2012

Container Market – Weekly Report

Chartering Market Fixtures Reported This Week
Charter activity was slightly reduced compared to last week. NORTHERN PIONEER - FLAG LIB - BLT 1994 – 42,086 DWT
3,538 TEU - 2471/HOM - 250 PLUGS CELLULAR - GEARLESS - 22.5/97.5
Actual transactions for the full month of may was however
10DAYS - EUROPEAN - HAPAG-LLOYD – 8,000 USD/DAY
similar to what was seen during the same period last year and
year-to-date the amount of fixtures concluded exceeds the same CONTI SEATTLE - FLAG LIB - BLT 1997 – 28,370 DWT
period in 2011 by more than 20%. 2,113 TEU - 1514/HOM - 144 PLUGS CELLULAR - GEARED - 20.0/51.0
50DAYS - TC WAFR - DELMAS – 6,950 USD/DAY
For the larger tonnage Evergreen appeared this week as the
active taker with an extension of a widebeam Asian controlled HANSA FLENSBURG - FLAG LIB - BLT 2000 – 23,992 DWT
4,700 TEU unit for 12 months as well as a 5,000 TEU panamax 1,740 TEU - 1295/HOM - 296 PLUGS CELLULAR - GEARED - 20.5/58.0
9MNTHS - EXT MED - CMA CGM – 6,800 USD/DAY
for 10-12 months charter. Cosco managed to secure a 6,500
TEU unit basis a delivery end of June but for a roundvoyage only. HANSA FREYBURG - FLAG LIB - BLT 2003 – 23,508 DWT
There seems to be uncovered demand for 5,000 TEU plus 1,740 TEU - 1330/HOM - 296 PLUGS CELLULAR - GEARED - 20.5/58
tonnage and with limited supply rates could improve further. 9MNTHS - MED - CMA CGM – 6,850 USD/DAY
With a number of 3,500-4,250 TEU requirements withdrawn the
short term outlook appears mixed. A craned 3,400 TEU vessel OCEAN EMERALD - FLAG LIB - BLT 2008 – 22,314 DWT
was reported fixed to European operators at levels in the low 1,713 TEU - 1259/HOM - 377 PLUGS CELLULAR - GEARED - 20.0/61.2
USD 12,000 for 10-12 months which would represent an 20/6MONTHS DAYS - CARIBS - MAERSK LINE – 7,000 USD/DAY
increase of 20% compared to a sister vessel fixed in March.
RIJNBORG - FLAG NTH - BLT 2007 – 16,450 DWT
1,712 TEU - 1050/HOM - 220 PLUGS CELLULAR - GEARLESS - 20.0/50
Activity for tonnage between 2,000 and 3,000 TEU decreased 3MNTHS - OPTED UKC - MAERSK LINE – 8,000 USD/DAY
this week though a few craned 2,500 TEU vessels were under
negotiation. A couple of 2,700-2,8000 TEU vessels were fixed NORTHERN HAPPINESS - FLAG LIB - BLT 1994 – 22,273 DWT
short term in Asia but also later on failed on subject. The craned 1,709 TEU - 1184/HOM - 270 PLUGS CELLULAR - GEARED - 19.0/45.0
2,100 TEU Conti Seattle was fixed for 50-70 days at levels 2MNTHS - MED - CMA CGM – 6,500 USD/DAY
around USD 7,000 daily or similar to what was done last week.
H FYN - FLAG GEU - BLT 2003 – 20,367 DWT
1,581 TEU - 1062/HOM - 288 PLUGS CELLULAR - GEARED - 20.0/55.0
In the segment between 1,300 and 2,000 TEU we noticed a few 9MNTHS - MED - CMA CGM – 6,250 USD/DAY
1,740 TEU Wenchong built vessels being extended by CMA CGM
for periods of 9-12 months at levels in the very high USD 6's and INDEPENDENT VENTURE - FLAG LIB - BLT 1993 – 20,480 DWT
ML paying USD 7,000 in the Caribbean for a 1-2 months 1,468 TEU - 1034/HOM - 140 PLUGS CELLULAR - GEARLESS - 18/47.1
extension of the 1713 TEU Ocean Emerald. 50DAYS - MED-WAFR - MITSUI OSK LIN – 6,100 USD/DAY

Feeders between 900-1,299 saw increasing activity and slightly AKERDIJK - FLAG LIB - BLT 2011 – 20,200 DWT
1,436 TEU - 1054/HOM - 431 PLUGS CELLULAR - GEARLESS - 19.0/49.5
improved rates. Evergreen paid USD 9,800 daily for 5 months
20DAYS - NEA - KMTC – 6,600 USD/DAY
European trade on a 1,221 TEU ice classed vessel or about 15%
more compared to her last fixture in March. A standard cv 1100 ALEXANDER B - FLAG ABB - BLT 2006 – 18,530 DWT
managed to improve levels to USD 5,900 daily for 8 months 1,221 TEU - 930/HOM - 305 PLUGS CELLULAR - GEARLESS - 19.3/43.0
trading in the Mediterranean and STX were in Asia linked to the 5MNTHS - EUROPEAN - EVERGREEN – 9,900 USD/DAY
1054 TEU Mare Doricum for 6 months trading at USD 5,000
daily. STADT BREMERHAVEN - FLAG MAI - BLT 2006 – 13,710 DWT
1,118 TEU - 713/HOM - 233 PLUGS CELLULAR - GEARED - 19.3/38.0
8MNTHS - MED - CMA CGM – 5,900 USD/DAY
Below 900 TEU activity was slightly up compared to last week
especially in the Atlantic with improved volumes being handled in
northern Europe. Continued on page 3.

Maersk Broker Time Charter Rate Index, Week 22 Average Container T/C Rates
1.800

1.600 Size 2011 YTD 2012 4 Weeks MA Trend

200-399 $4.545 $3.209 $3.209 
Maersk Broker Container Index

1.400

1.200 400-649 $4.710 $4.129 $3.938 

1.000 650-899 $6.139 $4.714 $5.226 
800 900-1,299 $8.249 $5.703 $6.060 
600
1,300-1,999 $10.055 $6.640 $6.750 
400
2,000-2,999 $12.862 $7.016 $7.069 
200
3,000-3,949 $14.702 $8.247 $8.877 
0
3,950-5,199 $19.732 $9.607 $12.920 
Jan-96

Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

June:* 444
May: 421
(*4 weeks Moving Average –The index is calculated on June 1st)
 25 May – 1 June, 2012

Sale & Purchase Newbuilding

While most talks last week was about the sale of two further 5,800 TEU's by
CMA CGM, this week has indeed been significantly more quiet. This week
most talk has been about newbuildings, with order for 1100 TEU's and more
talks on who are believed to be the buyers of two 5,400 TEU's from OOCL
with charter back.
Two smaller container vessels of 5-600 TEU has changed hands, both at
prices similar to last done. This size was seeing activity, but prices in the
segment is still subdued.
For vessels around 1000 TEU, there seems to have been a slight change of
sentiment to the more positive side, with a number of vessels seeing
interest, from buyers both Europe and Asia.
Finally Klingenberg obtained possession of the 05 Built CV1100 Ulrike F,
from a bank controlled auction.
Overall the newbuilding market is still in a slow moving state with a generally low
activity. However, as earlier reported, some interest is emerging as the prices
remain at a benign level for buyers.
This week it was confirmed that Yangzijiang have signed a contract for 2+2+2 x
1,100 TEU vessels with Lomar at a price of around USD 18 mill. per vessel.
These vessels will have gear and start delivery in the first quarter of 2014.
This order marks Lomar's second newbuilding order this year as the same
Owner two months ago signed a contract for 2+2+2 x 2,200 TEU vessels at
Wenchong.
Wenchong are also being linked to a rumour of yet another contract of an
undisclosed number of 2,200 TEU vessels for a Greek Owner at an alleged price
of USD 26 mill, which is in line with what Lomar paid.
In Japan two of the major yards, Imabari Shipbuiling and Mitsubishi Heavy
Industries, have entered into a strategic cooperation agreement for designing
eco friendly container vessels, which the said yards hope will make them more
competitive in the export market.

Estimated Second Hand Prices - 10 yrs old (USD Million) Estimated Newbuilding Prices (USD Million)

1,100 1,700 2,700 4,500 1,800 2,800 4,800 6,600 9,200 13,000

6-7 12-13 20-21 29-30 27-29* 36-38* 47-50* 60-63* 89-91* 115-120*

Price Development Since Last Week 23-25** 34-36** 44-46** 59-61** 86-88** n.a.
    Price Development Since Last Week
Source: Maersk Broker
* * * * * *
** ** ** ** ** n.a.
Source: Maersk Broker
*based on Korean built vessel for 2014 delivery
**based on Chinese built vessel for 2014 delivery

Market Developments and Drivers

 USA: The US economy expanded less than previously reported in the first quarter of 2012. GDP climbed at 1.9% annual rate from January to
March, revised down from the previous estimate of 2.2%. Consumer spending on retail goods and cars kept the economy going, as the saving
rate sank to 3.6%, the lowest rate since 2007.

 China: China’s factory output weakened as the manufacturing sector slowed in May. The purchasing managers index (PMI) grew at the weakest
pace in six months, decreasing to 50.4 in May from 53.3 in April. It’s the weakest reading since December, though the index usually has a
seasonal decline in May. A reading above 50 indicates an expansion.

Japan and China begin direct currency trading this week, in the first move by the Chinese central bank to allow another major currency to be
traded directly against the Yuan. Trading will begin on China’s interbank foreign exchange market 1 June, in a move to internationalise the Yuan.
Previously, the USD has been used as intermediate currency

 Europe: The Euro-area unemployment rate reached a record-high level of 11% in April and March. Spain had the highest jobless rate, of 24.3% in
April, up from 24.1% in March. Germany’s unemployment rate was 5.4%, down from 5.5% in March. Meanwhile, Euro-area economic confidence
fell in May to the lowest level in 2.5 years, as an index of executive and consumer sentiment fell to 90.6 from 92.9 in April. On the production
side, the purchasing managers index (PMI) fell for the Euro-zone to a three year low 45.1 in May. A reading below 50 signals contraction.
The Euro-area inflation rate fell more than forecast in May, to the slowest pace since February 2011. In the 17-nation area it fell to 2.4%, down
from 2.6% in April. Core inflation rate, which excludes volatile costs such as energy, stood at 1.6% in April.

Korea: South Korea’s current account surplus fell in April to a surplus of USD 1.8 bill, compared to a revised USD 2.97 bill. surplus in March. For
May, South Korea reported a trade surplus of USD 2.4 bill. Overseas sales fell 0.4% in May year-on-year, after a 4.8% decline in April, the fourth
monthly decline this year. Exports were USD 47.2 bill. in May, declining 0.4% year-on-year, while imports slowed 1.2% year-on-year to USD 44.8
bill. In the first 20 days of May, shipments to South Korea’s top export market China fell 10.4% year-on-year and shipments to European Union
declined 16.4% year-on-year.

 India: India’s exports rose in April, increasing 3.2% year-on-year to USD 24.5 bill while imports grew 3.8% year-on-year to USD 37.9 bill. That left
the trade deficit standing at USD 13.5 bill. in April.
India’s GDP growth fell in the first quarter this year, led by a poor manufacturing sector. GDP growth was 5.3% in January-March this year,
compared to 9.2% growth in the same period last year. Growth last quarter, in October-December 2011, was 6.1%. Infrastructure output grew
2.2% in April compared to a year earlier.
 25 May – 1 June, 2012

From Page 1

SVENDBORG STRAIT - FLAG GER - BLT 2011 – 14,500 DWT

1,085 TEU - 730/HOM - 250 PLUGS GEARLESS - 19,0/36,5
3MNTHS - D/C - TS LINES – 6,400 USD/DAY

STADT BERLIN - FLAG ABB - BLT 1998 – 12,850 DWT

1,076 TEU - 650/HOM - 160 PLUGS CELLULAR - GEARED - 20.0/42.0
2MNTHS - INTERASIA - YANG MING – 5,475 USD/DAY

MARE DORICUM - FLAG GEU - BLT 1995 – 12,380 DWT

1,054 TEU - 666/HOM - 113 PLUGS CELLULAR - GEARLESS - 17.5/30.5
6MNTHS - EXT SEA - STX PAN OCEAN – 5,000 USD/DAY

PAC ARIES - FLAG SNG - BLT 2002 – 16,794 DWT

1,040 TEU - 858/HOM - 200 PLUGS CELLULAR - GEARED - 19.5/51.5
35DAYS - INTERASIA - CHINA NAVIGATI – 6,800 USD/DAY

STEFAN SIBUM - FLAG ABB - BLT 2008 – 13,172 DWT

1,036 TEU - 740/HOM - 250 PLUGS GEARLESS - 18.5/36
3MNTHS - EUROPEAN - SCA TRANSFORES – 6,500 EUR/DAY

ANNAMARIE - FLAG ABB - BLT 2003 – 8,720 DWT

822 TEU - 507/HOM - 150 PLUGS CELLULAR - GEARLESS - 18.5/36.5
3MNTHS - SEA CONSORTIUM – 4,800 USD/DAY

MANGAN - FLAG LIB - BLT 2005 – 8,494 DWT

707 TEU - 425/HOM - 175 PLUGS CELLULAR - GEARLESS - 17.5/28
6MNTHS - D/C - HEUNGA – 4,250 USD/DAY

ICE CRYSTAL - FLAG ABB - BLT 2008 – 8,040 DWT

679 TEU - 410/HOM - 120 PLUGS CELLULAR - GEARLESS - 17/26
14DAYS - EUROPEAN - TEAM LINES – 3,150 EUR/DAY

BF MARYAM - FLAG CYP - BLT 1993 – 5,335 DWT

509 TEU - 282/HOM - 50 PLUGS CELLULAR - GEARLESS - 15.5/17.5
1MNTHS - MED - SEA CONSORTIUM – 2,250 EUR/DAY

CORONA - FLAG CYP - BLT 1998 – 5,184 DWT

374 TEU - 222/HOM - 50 PLUGS NONCELLULAR - GEARED - 15.5/16
3MNTHS - CARIBS - DALHART – 4,850 USD/DAY

The above report is based on our best knowledge of relevant

market conditions and all fixtures reported are without guarantee
but stated in good faith.

This report is based on our knowledge of relevant market conditions. Our estimates are made on the basis of this knowledge, but other circumstances, or new circumstances, as well as general uncertainty could
cause the market to develop differently. We take general reservation for misprints. © All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing it
in any medium by electronic means) without the written permission of the copyright owner. Likewise, any quoting is prohibited without the written permission of the copyright owner.