Capital Link Shipping Weekly Markets Report

Monday, January 23, 2015 (Week 4)

Monday, January 26, 2015 (Week 4) IN THE NEWS   

Latest Company News Weekly Commentary by Barry Parker Dividend Paying Shipping Stocks

CAPITAL MARKETS DATA   

Currencies, Commodities & Indices Shipping Equities – Weekly Review Weekly Trading Statistics – by KCG

SHIPPING MARKETS     

Weekly Market Report – by Cleartrade Exchange Stifel Shipping Markets Weekly Tanker Market Opinion, by Poten & Partners Tanker Market - Weekly Highlights, by Charles R. Weber Company S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny

TERMS OF USE & DISCLAIMER

CONTENT CONTRIBUTORS

1 1

IN COOPERATION WITH

ORGANIZED BY

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Attendance is complimentary for qualified attendees

ABOUT THE FORUM Please join Capital Link’s 6th Annual Greek Shipping Forum on the topic of “Opportunities & Challenges” in Athens, Greece on Tuesday, February 24, 2015.

GLOBAL GOLD SPONSORS

This event will cover the latest developments and trends in the global economy and world trade and will also review the various funding alternatives for raising capital for listed and private shipping companies. Capital Link Forums are known for combining rich educational and informational content with unique marketing and networking opportunities. They generate exceptional visibility for speakers, sponsors and participants. of the Investment Management Division of

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PANEL TOPICS TO BE COVERED •CLUDE: Global Economy & World Trade •

The Top Ten Signs That The Shipping Industry Is Turning Around

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MLPs as a Growth Business & Capital Raising Vehicle

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Shipping & the Equity Capital Markets

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Shipping & the Non-Bank Debt Markets

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Reverse Mergers; Alternative Public Offerings

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Restructuring as a Business & Investment Opportunity – Market Review

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Creative Financing – Fast Solutions for Today’s Market Conditions

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Bank Financing & Shipping

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Acquisition of Non-Performing Shipping Loans

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Private Equity and Joint Ventures

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Analyst Panel

MEDIA PARTNERS

Keynote Address & Capital Link Shipping Leadership Award After the luncheon, the “2015 Capital Link Greek Shipping Leadership Award” will be presented to Mr. Lambros Varnavides, in recognition of his unique and extensive contribution to Shipping and Greece and for his overall outstanding service to the shipping industry. Mr. Varnavides, will make brief remarks sharing with us his insight and passion on shipping. RBS, one of the leading maritime lenders, reached its pinnacle among the world’s top shipping banks under his watch and hard work. Not only did he reach the highest level of business achievement on a personal level, but he also contributed materially to the development of Greece in the maritime industry. Mr. Efthimios E. Mitropoulos, IMO Secretary General Emeritus and Chairman of the “Maria Tsakos” Foundation will introduce and present the Award to Mr. Lambros Varnavides.

Seating is limited. To register and/or for more information, click on the above button or visit our website

SUPPORTING ORGANIZATIONS

Capital Link Shipping

...Linking Shipping and Investors Across the Globe

Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on our in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to the shipping industry becoming the largest provider of Investor Relations and Financial Communications services to international shipping companies listed on the US and European Exchanges. Capital Link's headquarters are in New York with a presence in London and Athens.

Investor Relations & Financial Advisory

Operating more like a boutique investment bank rather than a traditional Investor Relations firm, our objective is to assist our clients enhance long term shareholder value and achieve proper valuation through their positioning in the investment community. We assist them to determine their objectives, establish the proper investor outreach strategies, generate a recurring information flow, identify the proper investor and analyst target groups and gather investor and analyst feedback and related market intelligence information while keeping track of their peer group. Also, to enhance their profile in the financial and trade media.

In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge of shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as:

www.CapitalLinkShipping.com

A web based resource that provides information on the major shipping and stock market indices, as well as on all shipping stocks. It also features an earnings and conference call calendar, industry reports from major industry participants and interviews with CEOs, analysts and other market participants.

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Weekly distribution to an extensive audience in the US & European shipping, financial and investment communities with updates on the shipping markets, the stock market and listed company news.

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In New York, Athens and London bringing together investors, bankers, financial advisors, listed companies CEOs, analysts, and shipping industry participants.

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Monday, January 23, 2015 (Week 4)

IN THE NEWS

Latest Company News Monday, January 19, 2015

Danaos Corporation (NYSE: DAC), announced that it will release its results for the fourth quarter ended December 31, 2014, after the close of the market in New York on Monday, February 9, 2015. http://danaos.irwebpage.com/press_releases.html?irp=pr2&relid=58 4859

Atwood Oceanics Announces Fiscal 2015 First Quarter Earnings Conference Call Atwood Oceanics, Inc. (NYSE: ATW) announced that it would announce earnings after the market closes on Tuesday, February 3, 2015. The company will hold its conference call and webcast in conjunction with its Fiscal 2015 First Quarter Earnings Release on Wednesday, February 4, 2015 at 10:00 A.M. CT (11:00 A.M. ET). http://ir.atwd.com/file.aspx?IID=4010374&FID=27119091

Scorpio Tankers Inc. Announces Fourth Quarter Earnings Guidance and Vessel Deliveries http://ir.scorpiotankers.com/press-releases/scorpio-tankers-incannounces-fourth-quarter-earnings-guidance-and-vessel-delivenyse-stng-1170346

Golar LNG Announces Change in CEO Golar LNG Limited has announced that Doug Arnell has decided to step down as CEO of Golar on February 1, 2015. Mr. Arnell's decision is driven by a personal wish to return with his family to his home country of Canada. http://www.golarlng.com/index.php?name=seksjon/Stock_Exchange _Releases/Press_Releases.html&pressrelease=1888020.html

Thursday, January 22, 2015 Seadrill Majority Owned Subsidiary, North Atlantic Drilling Launches Amendment Process for NADL NOK 1.5 Billion Bond Maturing in 2018 Seadrill announced that its majority owned subsidiary, North Atlantic Drilling, has launched an amendment process whereby Seadrill Limited will provide a guarantee for North Atlantic Drilling's NOK 1.5 billion bond maturing in 2018, in exchange for some amendments to the bond covenant package, namely replacing the NADL's current financial covenants with Seadrill's financial covenants from Seadrill's NOK denominated bonds. http://www.seadrill.com/investor-relations/events-and-news

Tuesday, January 20, 2015 Knot Offshore Partners LP Announces Fourth Quarter 2014 Cash Distribution The Partnership announced that its Board of Directors has declared a quarterly cash distribution with respect to the quarter ended December 31, 2014, of $0.49 per unit. This corresponds to $1.96 per outstanding unit on an annualized basis. This cash distribution will be paid on February 13, 2015 to all unitholders of record as of the close of business on February 3, 2015. http://ir.knotoffshorepartners.com/investor-relations/newsreleases/news-details/2015/KNOT-Offshore-Partners-LPAnnounces-Fourth-Quarter-2014-Cash-Distribution/default.aspx

Hercules Offshore, Inc. Provides January Fleet Status Report Hercules Offshore, Inc. (Nasdaq: HERO) announced that it has published the January Fleet Status Report ("the Report"). The Report includes the Hercules Offshore Rig Fleet Status (as of January 22, 2015), which contains detailed contract information for each of the Company's drilling rigs. The Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for December 2014, including revenue per day and operating days. http://ir.herculesoffshore.com/phoenix.zhtml?c=192573&p=irolnewsArticle&ID=2009854

Overseas Shipholding Group Appoints Capt. Ian T. Blackley as President and Chief Executive Officer Overseas Shipholding Group, Inc. (NYSE MKT:OSGB) announced the appointment of Captain Ian T. Blackley as President and Chief Executive Officer, effective immediately. Most recently, Captain Blackley served as Executive Vice President and Chief Operating Officer of the Company, and he previously served as its Chief Financial Officer. http://ir.osg.com/phoenix.zhtml?c=82053&p=irolnewsArticle&ID=2008985

Friday, January 23, 2015 Star Bulk Announces the Sale of M/V Star Julia for Demolition Star Bulk Carriers Corp. (Nasdaq: SBLK) announced that it has entered into a binding agreement to sell for demolition the M/V Star Julia (ex “Powerful”, the “Vessel”), a 70,100 dwt Panamax vessel, built in 1994, to an unaffiliated third party (the “Buyers”), at a profit over net book value. The Company expects to deliver the Vessel to the Buyers by early February 2015. http://www.starbulk.com/UserFiles/sblk012315.pdf

Completion of Sale of Golar Eskimo from Golar LNG Limited We refer to the press release dated December 15, 2014, which announced the transaction to sell the companies that own and operate the FSRU Golar Eskimo to Golar LNG Partners LP (the "Acquisition"). Golar LNG Limited has now completed the Acquisition with effect from January 20, 2015. http://www.golarlng.com/index.php?name=seksjon/Stock_Exchange _Releases/Press_Releases.html&pressrelease=1888450.html

Capital Product Partners L.P. Schedules Fourth Quarter 2014 Earnings Release, Conference Call and Webcast Capital Product Partners L.P. (NASDAQ: CPLP) announced that before the NASDAQ market opens on Friday, January 30, 2015, it will release financial results for the fourth quarter ended December 31, 2014. http://www.capitalpplp.com/releasedetail.cfm?ReleaseID=892680

Wednesday, January 21, 2015 Danaos Corporation Announces Date for the Release of Fourth Quarter 2014 Results, Conference Call and Webcast 2

Monday, January 23, 2015 (Week 4)

IN THE NEWS

Latest Company News Capital Product Partners L.P. Announces Cash Distribution Capital Product Partners L.P. (NASDAQ: CPLP) announced that its board of directors has declared a cash distribution of $0.2325 per common unit for the fourth quarter of 2014 ended December 31, 2014, in line with management's annual guidance. http://www.capitalpplp.com/releasedetail.cfm?ReleaseID=892691

DHT Holdings, Inc. to announce fourth quarter 2014 results on Thursday January 29, 2015 DHT Holdings, Inc. (NYSE: DHT) will release its fourth quarter 2014 earnings after market close on Wednesday January 28, 2015 and will host a conference call at 8:00 a.m. EST on Thursday January 29, 2015 to discuss the results for the quarter. http://www.dhtankers.com/index.php?id=441&pressrelease=188952 7.html

Monday, January 26, 2015

3

Monday, January 23, 2015 (Week 4)

IN THE NEWS

Tanker nerds running amok Contributed by

These are heady times for oil and tanker nerds; energy company credits, U.S. oil and gas exports, the tanker market, and the crude oil markets were all covered in a series of online and live events last week. While the experts (that sounds better than nerds!) were parsing API gravities and Worldscale points- tanker owner Euronav was upping the size of its equity offering, and DryShips was readying a spinout of its tanker fleet. On the sidelines, there are whispers about other groups (from both the shipowner and PE camps) itching to liberate regulatory filings from their word processors and activate those computer links to the SEC. Oh, in the middle of all this, news reports came in reporting the demise of King Abdullah, in Saudi Arabia.

Barry Parker Barry Parker is a financial writer and analyst. His articles appear in a number of prominent maritime periodicals including Lloyds List, Fairplay, Seatrade, and Maritime Executive and Capital Link Shipping.

doing the blinking. . Consider an article in the FT last week, “Venezula in a bind as Maduro faces dilemma over oil” which offered conjectures about what might happen if Venezuela were to default on debt, asking: “…Another question is whether….Venezuelan oil cargoes could be seized by creditors seeking repayment.” The authors noted that debt issued by state oil company PDVSA, lacking “collective action clauses” (which I am not familiar with) might be difficult to restructure. Ouch.

In trying to put developments in the commodity and shipping into perspective, I will point first to the wisdom of Dr. David Knapp, a longtime analyst, with the Energy Intelligence Group. Knapp, a Board member of the New York Energy Forum, was one of two speakers at the group’s 2015 World Oil Price Outlook, held in midtown Manhattan. Recognizing that oil markets are cyclical, and that each trip through the cycle will be a little different, Dr. Knapp (the Senior Editor for Global Market Analysis, and Editor on the monthly “Oil Market Intelligence”) framed the situation as follows. The first phase of current developments are what he called “The Shale phase”, where rapid increases in available crude supply overwhelm the marketplace, and- as Economics 101 dictates, the equilibrium price point slides downward. The second segment of our journey, which Dr. Knapp said is beginning to emerge, is what he called “The Storage phase,” germane to shipping people because some of that storage will occur on large tankers that are taken on period time charters. This past week, tanker folks all over the world were reading each day, in the esteemed shipping press, about yet another vessel taken for a storage contract, at rates that were now exceeding $40,000/day. For shorter terms- either on time charters or on the equivalent backed out from a sequence of voyage ($/tonne) charters, numbers of $80,000/day and $90,000/day were being mentioned. After the storage phase, Knapp was looking for the oversold market to move up, but, like other analysts, he could not be precise on the price bottom, the eventual settle, and the timing of the move- more likely to be “U-shaped” (my favorite meme), ie prices might hug the bottom for a while.

Then, let’s jump to an online seminar nestled among all these events, hosted by Standard & Poors, which pulled viewers in with its attentiongrabbing headline about credit downgrades in the energy sector. A takeaway from S&P’s webcast concerned production in the U.S. oil patch, which will certainly continue through the first half of the year, supported by more liquidity than meets the eye. S&P. whose major concern is credit metrics, does not try to prognosticate unforeseen developments like PE coming into scoop up drillers who need to repair balance sheets. But, to me- trying to synthesize and assimilate all the freely available expertise, their financially driven views help put a timeline on what might happen to prices. One additional group of experts must be mentioned, which is the Columbia / SIPA ‘s Center on Global Energy Policy, which hosted a superb seminar called “Navigating the U.S. Crude Oil Debate.” The featured speaker was Thomas E. Donilon, former National Security Advisor to President Obama (who has done a great deal to stimulate shale oil production) and a member of the Center on Global Energy Policy's Advisory Board. As described in my columns (and elsewhere), the U.S. is getting more comfortable with exports of condensatesderived from the increasing amounts of light crude being produced from the Eagle Ford fields in Texas. Mr. Donilon’s focus was in geo-politics, where he suggests that: “….crude exports will provide diplomatic leverage and a tool to assist our allies and friends…” This newfound economic clout is an addition to numerous likely positive economic benefits from crude exports- which may include lower world benchmark oil prices as more oil is supplied, everything else being equal. If crude export policies are liberalized, each cargo would be one more factor in keeping the U-shaped oil price time-line down for a longer period of time.

Using Dr. Knapp’s overview as a jumping off point, let’s then consider a well attended lunch held by the Connecticut Maritime Association which featured Jerry Lichtblau, from True North Chartering, a long-time market analyst. Multiple parts of the discussion jumped out at me. First, channeling Dr. Knapp’s “shale phase” (not revealed until later that evening), Lichtblau suggested that Private Equity might take a shot a distressed assets in the shale biz. I never heard that suggested anywhere else, but it makes total sense. Lichtblau talked at length about what might happen if oil prices were to stay low (presumably dunked by PE guys continued pressure pumping)- with negative impacts on production and, then seaborne shipments, noting that Venezuela and Nigeria might curtail their production. When pressed about differing consequences for the tanker market if one country turns off the pumps rather than another- Lichtblau stressed something akin to “Barry’s Rule #1”, which is that disruption of trades, wherever it happens, is good for ship hires because of inefficiencies- more vessels moving around empty. Yes, to repeat, “not exactly an investing thesis” as my analysts buddies are keen to remind me, but that’s shipping.

As I am running out of space, let’s get back to Dr. Knapp’s “storage phase” of indeterminate timeframe, and an assertion by Jerry Lichtblau’s that many tanker time charters may have storage options. Lower crude oil prices (or less susceptibility to upward-moving sparks) will keep the nearby part of the forward curve lower. For watchers of oil price contango- the major driver of floating storage, a deeper discount in nearby oil prices would continue to support the economic viability of floating storage- which is inefficient transportation at its best. PE guys, way smarter than me, will no doubt be reaching similar conclusions. So look for more tanker investment opportunities to be made available, as PE and owners (sometimes mixed together) begin the inexorable path to liberating their shares. Tanker nerds will be quite busy, it would seem.

But, actually, consequences may differ, depending which country is

4

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

Select Dividend Paying Shipping Stocks Stock Prices as of January 23, 2015

Company Name

Ticker

Quarterly Dividend

Annualized Dividend

Last Closing Price

Annualized Dividend Yield

(Jan. 23, 2015) Container Costamare Inc

CMRE

$0.28

$1.12

$16.80

6.67%

Diana Containerships

DCIX

$0.0025

$0.01

$2.21

0.45%

Seaspan Corp

SSW

$0.345

$1.38

$18.07

7.64%

Dry Bulk Baltic Trading Limited

BALT

$0.01

$0.04

$1.77

2.26%

Knightsbridge Shipping Limited

VLCCF

$0.05

$0.20

$4.45

4.49%

Navios Maritime Holdings Inc.

NM

$0.06

$0.24

$3.96

6.06%

Safe Bulkers Inc.

SB

$0.04

$0.16

$3.62

4.42%

Ardmore Shipping Corp.

ASC

$0.10

$0.40

$11.52

3.47%

DHT Holdings, Inc.

DHT

$0.02

$0.08

$8.05

0.99%

Navios Maritime Acquisition Corp

NNA

$0.05

$0.20

$3.81

5.25%

Nordic American Tankers Limited

NAT

$0.22

$0.88

$10.78

8.16%

Scorpio Tankers Inc

STNG

$0.12

$0.48

$8.96

5.36%

Teekay Tankers Ltd

TNK

$0.03

$0.12

$5.87

2.04%

Tsakos Energy Navigation Ltd

TNP

$0.05

$0.20

$7.77

2.57%

Ship Finance International Limited

SFL

$0.41

$1.64

$14.36

11.42%

Teekay Corporation

TK

$0.31625

$1.265

$44.79

2.82%

GasLog Ltd

GLOG

$0.14

$0.56

$17.16

3.26%

Golar LNG

GLNG

$0.45

$1.80

$29.59

6.08%

CPLP

$0.2325

$0.93

$8.68

10.71%

Dynagas LNG Partners

DLNG

$0.4225

$1.69

$16.94

9.98%

Golar LNG Partners, L.P.

GMLP

$0.5475

$2.19

$25.88

8.46%

Navios Maritime Partners L.P.

NMM

$0.4425

$1.77

$12.39

14.29%

Teekay LNG Partners L.P.

TGP

$0.70

$2.80

$38.62

7.25%

Teekay Offshore Partners L.P.

TOO

$0.5384

$2.1536

$21.42

10.05%

KNOT Offshore Partners L.P.

KNOP

$0.49

$1.96

$22.56

8.69%

Hoegh LNG Partners

HMLP

$0.3375

$1.35

$20.93

6.45%

ORIG

$0.19

$0.76

$8.14

9.34%

Tankers

Mixed Fleet

LNG/LPG

Maritime MLPs Capital Product Partners L.P.

Offshore Drilling Ocean Rig UDW

5

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

Preferred Shipping Stocks Ticker Fixed Annual Dividend(1) Liquidation Preference Last Closing Price (01/23/15)

Box Ships Series C TEUPRC

CMREPRC

Diana Shipping Series B DSXPRB

Global Ship Lease Series B GSLB

International Shipholding Series A ISHPRA

International Shipholding Series B ISHPRB

Navios Series G NMPRG

7.625

8.50

8.875

8.75

9.50

9.00

8.75

8.625

$24.00

$25.00

$25.00

$25.00

$25.00

$100.00

$100.00

$25.00

$25.00

$17.30

$23.82

$25.73

$24.94

$21.00

$104.25

$101.50

$20.68

$20.15

Preferred Shipping Stocks Ticker Fixed Annual Dividend(1) Liquidation Preference Last Closing Price (01/23/15)

Safe Bulkers Series B SBPRB

Safe Bulkers Series C SBPRC

Safe Bulkers Series D SBPRD

Seaspan Series C

Seaspan Series D

Seaspan Series E

SSWPRC

SSWPRD

8.00

8.00

8.00

9.50

$25.00

$25.00

$25.00

$23.50

$17.71

$17.54

Costamare Series B

Costamare Series C

CMREPRB

9.00

Navios Series H NMPRH

SSWPRE

Teekay Offshore Series A TOOPRA

Tsakos Energy Series B TNPPRB

Tsakos Energy Series C TNPPRC

7.95

8.25

7.25

8.00

8.875

$25.00

$25.00

$25.00

$25.00

$25.00

$25.00

$27.18

$26.13

$25.92

$22.86

$24.62

$25.35

(1) Annual dividend percentage based upon the liquidation preference of the preferred shares. .

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6

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

Indices Week ending, Friday, January 23, 2015 MAJOR INDICES

America

Symbol

1/23/2015

1/16/2015

% Change

YTD % Change

2-Jan-15

Dow Jones

INDU

17,672.60

17,511.57

0.92

-0.90

17,832.99

Dow Jones Transp.

TRAN

8,981.94

8,764.12

2.49

-1.29

9,098.98

NASDAQ

CCMP

4,757.88

4,634.38

2.66

0.66

4,726.81

NASDAQ Transp.

CTRN

3,939.25

3,723.18

5.80

0.07

3,936.65

S&P 500

SPX

2,051.82

2,019.42

1.60

-0.31

2,058.20

Europe

Symbol

1/23/2015

1/16/2015

% Change

YTD % Change

2-Jan-15

Deutsche Borse Ag

DAX

10,649.58

10,167.77

4.74

9.06

9,764.73

Euro Stoxx 50

SX5E

3,382.55

3,202.24

5.63

7.74

3,139.44

FTSE 100 Index

UKX

6,832.83

6,550.27

4.31

4.35

6,547.80

Asia/Pacific

Symbol

1/23/2015

1/16/2015

% Change

YTD % Change

2-Jan-15

ASX 200

AS51

5,501.82

5,299.24

3.82

1.21

5,435.93

Hang Seng

HSI

24,850.45

24,103.52

3.10

4.16

23,857.82

Nikkei 225

NKY

17,511.75

16,864.16

3.84

0.35

17,450.77

CAPITAL LINK MARITIME INDICES

Index

Symbol

1/23/2015

1/16/2015

% Change

2-Jan-15

YTD % Change

Capital Link Maritime Index

CLMI

1,943.26

1,943.71

-0.02

2,270.00

-14.39

Tanker Index

CLTI

1,161.31

1,189.65

-2.38

1,322.86

-12.21

Drybulk Index

CLDBI

605.82

628.80

-3.65

622.45

-2.67

Container Index

CLCI

1,417.97

1,402.24

1.12

1,471.29

-3.62

LNG/LPG Index

CLLG

2,663.62

2,747.51

-3.05

3,082.31

-13.58

Mixed Fleet Index

CLMFI

2,007.93

1,837.96

9.25

2,441.80

-17.77

MLP Index

CLMLP

2,475.30

2,562.83

-3.42

2,882.73

-14.13

7

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA BALTIC INDICES

Index

Symbol

1/23/2015

1/16/2015

% Change

2-Jan-15

YTD % Change

Baltic Dry Index

BDIY

720

741

-2.83

771

-6.61

Baltic Capesize Index

BCIY

887

620

43.06

456

94.52

Baltic Panamax Index

BPIY

685

759

-9.75

827

-17.17

Baltic Supramax Index

BSI

650

716

-9.22

884

-26.47

Baltic Handysize Index

BHSI

380

418

-9.09

488

-22.13

Baltic Dirty Tanker Index

BDTI

917

950

-3.47

885

3.62

Baltic Clean Tanker Index

BCTI

705

740

-4.73

775

-9.03

TRANSPORTATION STOCKS

DRYBULK Baltic Trading Ltd Diana Shipping Inc DryShips Inc Eagle Bulk Shipping Inc FreeSeas Inc Globus Maritime Ltd Knightsbridge Shipping Ltd Navios Maritime Holdings Inc Navios Maritime Partners LP Paragon Shipping Inc Safe Bulkers Inc Scorpio Bulkers Seanergy Maritime Star Bulk Carriers Corp

TANKERS Ardmore Shipping Corp Capital Product Partners LP DHT Holdings Inc Frontline Ltd/Bermuda Knot Offshore Partners Navios Acquisition Nordic American Scorpio Tankers Inc Teekay Offshore Partners LP Teekay Tankers Ltd Top Ships Tsakos Energy Navigation Ltd

TICKER

1/23/2015 Friday

1/16/2015 Friday

Change %

52 Week High

52 Week Low

1/2/2014

Three Month Avg. Volume

BALT DSX DRYS EGLE FREE GLBS VLCCF NM NMM PRGN SB SALT SHIP SBLK

$1.77 $6.60 $0.97 $11.61 $0.08 $2.30 $4.45 $3.96 $12.39 $1.92 $3.62 $1.82 $0.77 $4.15

$1.74 $6.51 $0.99 $12.87 $0.09 $2.33 $4.83 $4.03 $12.50 $1.91 $3.75 $2.06 $0.82 $4.64

1.72% 1.38% -2.14% -9.79% -15.39% -2.13% -7.87% -1.74% -0.88% 0.52% -3.47% -11.65% -5.51% -10.56%

$7.60 $13.55 $4.14 $16.44 $2.11 $4.44 $16.16 $11.49 $20.40 $8.09 $11.43 $10.25 $1.98 $15.52

$1.74 $6.31 $0.78 $0.68 $0.08 $2.22 $3.76 $3.61 $9.67 $1.91 $3.54 $1.82 $0.71 $4.15

$6.44 $13.30 $4.31 $4.47 $2.31 $3.87 $8.98 $10.65 $18.62 $7.18 $10.20 $9.72 $1.99 $13.10

848,474 702,622 12,001,647 87,355 1,969,231 9,642 1,004,355 1,207,864 892,572 115,940 584,792 2,173,581 10,374 612,378

Ticker

1/23/2015

1/16/2015

Change %

ASC CPLP DHT FRO KNOP NNA NAT STNG TOO TNK TOPS TNP

$11.52 $8.68 $8.05 $3.07 $22.56 $3.81 $10.78 $8.96 $21.42 $5.87 $1.09 $7.77

$11.39 $8.54 $8.27 $3.35 $20.86 $3.83 $11.55 $9.37 $22.52 $5.99 $1.22 $7.73

1.14% 1.64% -2.66% -8.36% 8.15% -0.52% -6.67% -4.38% -4.88% -2.00% -10.66% 0.52%

52 wk high $14.84 $11.56 $9.05 $4.63 $29.89 $4.43 $11.88 $10.59 $37.03 $6.71 $12.88 $8.35

52 wk low $8.81 $6.79 $5.30 $1.19 $19.20 $2.47 $7.19 $6.74 $21.42 $3.22 $1.00 $4.99

8

1/2/2014 $15.16 $10.36 $6.67 $3.59 $27.57 $4.37 $9.46 $11.78 $32.55 $3.85 $11.49 $5.95

3-Month Avg. Vol. 130,684 631,476 1,645,319 3,082,979 63,078 500,154 1,607,361 2,457,749 291,016 1,433,806 52,244 528,734

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

CONTAINERS Box Ships Inc Costamare Inc Danaos Corp Diana Containerships Inc Global Ship Lease Inc Seaspan Corp

LPG/LNG Dynagas LNG Partners GasLog Ltd Golar LNG Ltd Golar LNG Partners LP Navigator Gas StealthGas Inc Teekay LNG Partners LP

MIXED FLEET Euroseas Ltd Ship Finance International Ltd Teekay Corp

MLPs Capital Product Partners Dynagas LNG Partners Golar LNG Partners LP Hoegh LNG Partners Knot Offshore Partners Navios Partners Teekay Offshore

OFFSHORE DRILL RIGS Atwood Oceanics Diamond Offshore Drilling Ensco International Hercules Offshore Noble Corp. Ocean Rig UDW Inc Pacific Drilling Rowan Companies Seadrill Ltd. Transocean Vantage Drilling Company

Ticker

1/23/2015

1/16/2015

Change %

TEU CMRE DAC DCIX GSL SSW

$0.81 $16.80 $5.16 $2.21 $5.06 $18.07

$0.79 $16.39 $5.19 $2.36 $4.83 $18.03

2.53% 2.50% -0.58% -6.40% 4.76% 0.22%

Ticker

1/23/2015

1/16/2015

Change %

DLNG GLOG GLNG GMLP NVGS GASS TGP

$16.94 $17.16 $29.59 $25.88 $17.26 $5.73 $38.62

$15.92 $16.96 $31.08 $25.17 $18.15 $5.80 $40.08

6.41% 1.18% -4.79% 2.80% -4.90% -1.21% -3.64%

Ticker

1/23/2015

1/16/2015

Change %

ESEA SFL TK

$0.73 $14.36 $44.79

$0.75 $14.19 $42.20

-2.60% 1.20% 6.14%

Ticker

1/23/2015

1/16/2015

Change %

CPLP DLNG GMLP HMLP KNOP NMM TOO

$8.68 $16.94 $25.88 $20.93 $22.56 $12.39 $21.42

$8.54 $15.92 $25.17 $20.60 $20.86 $12.50 $22.52

1.64% 6.41% 2.80% 1.60% 8.15% -0.88% -4.88%

Ticker

1/23/2015

1/16/2015

Change %

ATW DO ESV HERO NE ORIG PACD RDC SDRL RIG VTG

$28.76 $32.11 $28.66 $0.73 $16.53 $8.14 $3.50 $21.45 $10.06 $15.67 $0.33

$28.67 $31.65 $28.99 $0.82 $16.48 $8.07 $3.33 $21.82 $10.13 $15.72 $0.35

0.31% 1.45% -1.14% -10.31% 0.30% 0.87% 5.11% -1.70% -0.69% -0.32% -7.96%

9

52 wk high $2.94 $24.36 $7.50 $4.26 $5.62 $24.31

52 wk low $0.67 $16.00 $4.13 $1.85 $3.12 $17.30

52 wk high $25.27 $31.89 $72.50 $39.00 $31.50 $11.70 $47.19

52 wk low $14.00 $15.95 $29.45 $24.35 $15.26 $5.37 $35.42

52 wk high $1.39 $19.82 $67.12

52 wk low $0.71 $13.11 $42.20

52 wk high $11.56 $25.27 $39.00 $25.89 $29.89 $20.40 $37.03

52 wk low $6.79 $14.00 $24.35 $16.64 $19.20 $9.67 $21.42

52 wk high $53.79 $51.93 $55.62 $5.09 $30.03 $19.87 $10.88 $33.68 $40.37 $46.00 $1.98

52 wk low $26.76 $29.37 $26.41 $0.73 $14.52 $7.46 $3.28 $19.81 $9.52 $15.21 $0.32

1/2/2014 $3.28 $17.80 $5.08 $4.04 $5.83 $22.57

1/2/2014 $21.84 $16.84 $35.71 $30.04 $25.88 $10.16 $41.87

1/2/2014 $1.40 $16.22 $47.29

1/2/2014 $10.36 $21.84 $30.04 NA $27.57 $18.62 $32.55

1/2/2014 $52.47 $52.52 $56.57 $6.52 $32.00 $19.08 $11.25 $34.35 $40.07 $48.91 $1.86

3-Month Avg. Vol. 176,683 152,028 20,353 171,042 65,484 195,869

3-Month Avg. Vol. 79,906 1,365,142 2,519,975 356,775 524,339 197,655 312,188

3-Month Avg. Vol. 56,487 701,933 760,758

3-Month Avg. Vol. 631,476 79,906 356,775 65,535 63,078 892,572 291,016

3-Month Avg. Vol. 1,733,038 1,933,602 5,264,436 4,099,323 8,354,348 643,935 1,146,474 2,172,015 14,561,106 14,739,008 1,552,888

Monday, January 23, 2015 (Week 4)

OSLO-Listed Shipping Comps (currency in NOK) Golden Ocean Stolt-Nielsen Ltd. Frontline Ltd. Jinhui Shpg. & Trans Odfjell (Common A Share) Odfjell (Common B Share) Solvang ASA Eitzen Chemical ASA American Shipping Co. Wilson ASA Hoegh LNG Belships ASA I.M. Skaugen Western Bulk

OFFSHORE SUPPLY Gulfmark Offshore Hornback Offshore Nordic American Offshore Tidewater Seacor Holdings

Ticker

1/23/2015

1/16/2015

Change %

GOGL SNI FRO JIN ODF ODFB SOLV ECHEM AMSC WILS HLNG BEL IMSK WBULK

$5.36 $124.50 $24.70 $13.75 $26.50 N/A N/A $4.20 $33.20 N/A $81.25 $4.01 $3.65 $4.35

$5.57 $126.00 $25.00 $13.85 $27.60 $25.50 $22.50 $4.96 $34.20 N/A $78.75 $4.24 N/A $4.25

-3.77% -1.19% -1.20% -0.72% -3.99% N/A N/A -15.32% -2.92% N/A 3.17% -5.42% N/A 2.35%

Ticker

1/23/2015

1/16/2015

Change %

GLF HOS NAO TDW CKH

$20.63 $21.19 $11.31 $30.08 $72.55

$21.06 $21.84 $12.05 $31.00 $71.56

-2.04% -2.98% -6.14% -2.97% 1.38%

10

52 wk high $13.90 $193.50 $33.20 $27.90 $46.80 $46.20 $26.00 $8.05 $51.38 $17.00 $105.00 $6.50 $11.90 $16.80

52 wk high $50.31 $46.92 $20.40 $56.40 $90.05

52 wk low $4.68 $106.50 $7.74 $11.30 $21.00 $20.30 $20.20 $1.81 $29.95 $10.50 $46.80 $3.80 $3.65 $4.00

52 wk low $19.76 $19.53 $9.70 $28.62 $68.19

1/2/2014 $13.23 $162.00 $22.20 $28.00 $40.50 $39.50 $20.50 $7.57 $37.03 N/A $47.90 $6.20 N/A $15.40

1/2/2014 $45.61 $47.86 N/A $58.60 $89.77

3-Month Avg. Vol. 4,468,977 76,187 2,059,747 83,387 104,543 47,122 2,828 74,326 86,827 324 138,115 11,871 13,515 239,493

3-Month Avg. Vol. 619,000 848,727 296,508 1,060,665 224,636

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

Shipping Equities: The Week in Review SHIPPING EQUITIES UNDERPERFORM THE BROADER MARKET During last week, shipping equities underperformed the broader market, with the Capital Link Maritime Index (CLMI), a composite index of all US listed shipping stocks, decreasing 0.02%, compared to the S&P 500 increasing 1.60%, Nasdaq gaining 2.66%, and Dow Jones Industrial Average (DJII) rising 0.92%.

Mixed fleet stocks were the best performers during last week, with Capital Link Mixed Fleet Index increasing 9.25%, followed by Capital Link Container Index rising 1.12%. Dry bulk equities were the least performer during last week, with Capital Link Dry Bulk Index declining 3.65%. During last week, dry bulk shipping stocks underperformed the physical market, with Baltic Dry Index (BDI) decreasing 2.83%, compared to the Capital Link Dry Bulk Index dropping 3.65%. During last week, Baltic Dirty Tanker Index (BDTI) declined 3.47%, and Baltic Clean Tanker Index (BCTI) decreased 4.73%, compared to Capital Link Tanker Index reducing 2.38%. The Trading Statistics supplied by KCG Holdings, Inc. provide details of the trading performance of each shipping stock and analyze the market’s trading momentum and trends for the week and year-to-date. The objective of the Capital Link Maritime Indices is to enable investors, as well as all shipping market participants, to better track the performance of listed shipping stocks individually, by sector or as an industry. Performance can be compared to other individual shipping stocks, to their sector, to the broader market, as well as to the physical underlying shipping markets or other commodities. The Indices currently focus only on companies listed on US Exchanges providing a homogeneous universe. They are calculated daily and are based on the market capitalization weighting of the stocks in each index. In terms of historical data, the indices go back to January 2, 2005, thereby providing investors with historical performance. There are seven indices in total; the Capital Link Maritime Index comprised of all 45 listed shipping stocks, and six Sector Indices, the CL Dry Bulk Index, the CL Tanker Index, the CL Container Index, the CL LNG / LPG Index, the CL Mixed Fleet Index and the CL Maritime MLP Index. The Index values are updated daily after the market close and can be accessed at www.CapitalLinkShipping.com or at or www.MaritimeIndices.com. They can also be found through the Bloomberg page “CPLI” and Reuters.

11

Monday, January 23, 2015 (Week 4)

CAPITAL MARKETS DATA

MARITIME INDEX DAILY COMPARISON CHARTS (52 -WEEK )

*Teekay Corp was removed from the Capital Link Tanker Index on Aug 28, 2014.

*SOURCE: BLOOMBERG

12

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Custom Statistics Prepared Weekly for Capital Link Shipping BROAD MARKET Percent Change of Major Indexes for the Week Ending Friday, January 23, 2015

Name Nasdaq-100 Index Nasdaq Composite Index Russell 3000 Index Russell 1000 Index S&P 500 Index Russell 2000 Index

Symbol NDX COMPX RUA RUI SPX RUT

Close 4278.14 4757.88 1220.21 1141.67 2051.82 1188.93

Net Gain 188.49 187.06 35.61 33.35 59.15 34.22

Percent Gain 4.61% 4.09% 3.01% 3.01% 2.97% 2.96%

SHIPPING INDUSTRY DATA (43 Companies) Moving Averages • 32.56% closed > 10D Moving Average. • 34.88% closed > 50D Moving Average. • 30.23% closed > 100D Moving Average. • 23.26% closed > 200D Moving Average. Top Upside Momentum (Issues with the greatest 100 day upside momentum*)

Top Downside Momentum (Issues with the greatest 100 day downward momentum*)

Symbol

Close

Weekly % Change

50-Day % Change

Symbol

Close

Weekly % Change

50-Day % Change

EGLE FRO GSL TNK MATX NAT NNA DHT TNP STNG

11.61 3.07 5.06 5.87 36.32 10.78 3.81 8.05 7.77 8.96

-12.44% -9.44% 5.86% -2.49% 5.15% -3.66% -0.26% -3.59% 0.91% -0.11%

-17.95% 122.46% 40.17% 38.77% 24.26% 26.67% 27.85% 25.39% 14.77% 5.16%

SBLK FREE SALT BALT PRGN VLCCF DRYS GLNG NM SB

4.15 0.08 1.82 1.77 1.92 4.45 0.97 29.59 3.96 3.62

-11.32% -11.11% -11.22% -1.12% 0.52% -8.44% -1.02% -0.07% 2.06% 2.26%

-53.16% -52.94% -60.09% -45.71% -45.92% -41.98% -34.01% -42.66% -32.54% -31.44%

*Momentum: Momentum: (100D % change) + 1.5*(50D % change) + 2.0*(10D % change) for each stock then sort group in descending order and report the top 10.

*Momentum: (100D % change) + 1.5*(50D % change) + 2.0*(10D % change) for each stock then sort all names that have a negative value in ascending order and report the top 10.

Top Consecutive Higher Closes

Top Consecutive Lower Closes

Symbol

Close

Up Streak

Symbol

Close

Up Streak

TK GMLP DHT FRO NNA TNP

44.79 25.88 8.05 3.07 3.81 7.77

4 3 2 2 2 2

STNG GASS GLNG GLOG NM SHIP TOO TGP PRGN

8.96 5.73 29.59 17.16 3.96 0.77 21.42 38.62 1.92

-2 -2 -2 -2 -2 -2 -2 -2 -3

13

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS Top Largest Weekly Trading Gains

Top Largest Weekly Trading Losses

Symbol

Close One Week Ago

Today Close

Net Change

% Change

Symbol

Close One Week Ago

Today Close

Net Change

% Change

KNOP

19.44

22.56

3.12

16.05%

DLNG CPLP TEU TK GSL MATX GMLP SFL GLOG

15.04 8.08 0.76 42.22 4.78 34.54 24.88 13.91 16.64

16.94 8.68 0.81 44.79 5.06 36.32 25.88 14.36 17.16

1.90 0.60 0.05 2.57 0.28 1.78 1.00 0.45 0.52

12.63% 7.43% 6.58% 6.09% 5.86% 5.15% 4.02% 3.24% 3.12%

EGLE SBLK SALT FREE FRO VLCCF GLBS TOPS DCIX TOO

13.26 4.68 2.05 0.09 3.39 4.86 2.49 1.18 2.33 22.56

11.61 4.15 1.82 0.08 3.07 4.45 2.3 1.09 2.21 21.42

-1.65 -0.53 -0.23 -0.01 -0.32 -0.41 -0.19 -0.09 -0.12 -1.14

-12.44% -11.32% -11.22% -11.11% -9.44% -8.44% -7.63% -7.63% -5.15% -5.05%

Top Largest Monthly Trading Gains (A month has been standardized to 20 trading days)

Top Largest Monthly Trading*Losses (A month has been standardized to 20 trading days)

Symbol

Close One Month Ago

Today Close

Net Change

% Change

Symbol

Close One Month Ago

Today Close

Net Change

% Change

FRO TNK GSL NMM DHT TNP CPLP NAT STNG MATX

2.44 4.68 4.16 10.89 7.17 6.98 7.86 10.03 8.5 34.5

3.07 5.87 5.06 12.39 8.05 7.77 8.68 10.78 8.96 36.32

0.63 1.19 0.90 1.50 0.88 0.79 0.82 0.75 0.46 1.82

25.82% 25.43% 21.63% 13.77% 12.27% 11.32% 10.43% 7.48% 5.41% 5.28%

SBLK BALT PRGN SHIP DRYS FREE GLOG TOO GLNG EGLE

6.28 2.58 2.79 1 1.24 0.1 21.38 26.46 35.52 13.85

4.15 1.77 1.92 0.77 0.97 0.08 17.16 21.42 29.59 11.61

-2.13 -0.81 -0.87 -0.23 -0.27 -0.02 -4.22 -5.04 -5.93 -2.24

-33.92% -31.40% -31.18% -23.00% -21.77% -20.00% -19.74% -19.05% -16.69% -16.17%

Stocks Nearest to 52-Week Highs

Stocks Nearest To 52-Week Lows

Symbol

52W High

% Away

Symbol

52W Low

% Away

MATX TNP NAT NNA GSL DHT TGP STNG TNK ASC

36.73 8.47 11.85 4.28 5.72 9.31 45.06 10.63 7.02 14.71

-1.12% -8.26% -9.05% -10.95% -11.54% -13.53% -14.30% -15.73% -16.34% -21.67%

ESEA PRGN GLBS GLNG SB BALT DSX SALT TOO GMLP

0.71 1.86 2.21 28.32 3.46 1.68 6.25 1.72 20.13 24.12

2.82% 3.23% 4.07% 4.48% 4.62% 5.36% 5.60% 5.81% 6.40% 7.30%

14

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS Top Stocks with Highest Weekly Volume Run Rate* > 1 Symbol

Close

Net % Change

Run Rate

FRO EGLE SBLK DHT GMLP NAT ASC TNK NVGS TOO

3.07 11.61 4.15 8.05 25.88 10.78 11.52 5.87 17.26 21.42

-9.44% -12.44% -11.32% -3.59% 4.02% -3.66% 1.68% -2.49% 1.77% -5.05%

2.7693 2.1550 1.9563 1.7923 1.7838 1.7771 1.7183 1.6076 1.5572 1.5218

*The Volume Run Rate is calculated by divided the current week's volume by the average volume over the last 20 weeks. For example, a run rate of 2.0 means the stock traded twice its average volume. Top Year-To-Date Gainers

Top Year-To-Date Decliners

Symbol

YTD Gain %

Symbol

YTD Decline %

FRO NMM DCIX TNK GSL TNP DHT NAT CPLP MATX

22.31% 21.83% 17.55% 16.47% 12.44% 11.32% 10.12% 9.11% 8.50% 5.21%

SBLK BALT PRGN EGLE GLNG TOO NVGS GMLP GLOG TK

-36.74% -29.48% -29.15% -20.86% -18.86% -18.15% -18.04% -16.92% -15.68% -11.34%

The following are the 43 members of this group: Symbol - Name: ASC – Ardmore Shipping Corp; BALT - Baltic Trading Ltd; CMRE - Costamare Inc; CPLP - Capital Product Partners LP; DAC - Danaos Corp; DCIX - Diana Containerships Inc.; DHT - DHT Maritime Inc; DLNG - Dynagas LNG Partners LP; DRYS - DryShips Inc; DSX - Diana Shipping Inc; EGLE - Eagle Bulk Shipping Inc; ESEA - Euroseas Ltd; FREE - FreeSeas Inc; FRO - Frontline Ltd; GASS StealthGas Inc; GLBS - Globus Maritime Limited; GLNG - Golar LNG Ltd; GLOG - GasLog Ltd.; GMLP - Golar LNG Partners LP; GSL - Global Ship Lease Inc; KNOP - KNOT Offshore Partners LP; MATX - Matson, Inc.; NAT - Nordic American Tanker Shipping; NM - Navios Maritime Holdings Inc; NMM - Navios Maritime Partners LP; NNA - Navios Maritime Acquisition Corp; NVGS - Navigator Holdings Ltd.; PRGN - Paragon Shipping Inc; SALT - Scorpio Bulkers; SB Safe Bulkers Inc; SBLK - Star Bulk Carriers Corp; SFL - Ship Finance International Ltd; SHIP - Seanergy Maritime Holdings Corp; SSW - Seaspan Corp; STNG - Scorpio Tankers Inc; TEU - Box Ships Inc.; TGP - Teekay LNG Partners LP; TK - Teekay Corp; TNK - Teekay Tankers Ltd; TNP - Tsakos Energy Navigation Ltd; TOO - Teekay Offshore Partners LP; TOPS - TOP Ships Inc; VLCCF - Knightsbridge Tankers Ltd; DISCLAIMER: This communication has been prepared by Knight Capital Americas LLC.s ("KCA"), trading, market making and/or sales personnel (collectively, "KCG Traders") to compile commentary received from either particular KCG Traders providing their personal perspectives on the markets, sectors and general news or third party sources. The information set forth above has been obtained from or based upon sources believed by the KCG Traders to be reliable, but each KCG Trader and KCG (as defined below) does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors or omissions, delays in the receipt of this information, or any actions taken in reliance thereon. Opinions, historical price(s) or value(s) are as of the date and, if applicable, time indicated. KCG does not accept any responsibility to update any opinions or other information contained in this communication. The information provided herein is not intended to provide a sufficient basis on which to make an investment decision. It is intended only to provide observations and views of individual KCG Traders, which may be different from, or inconsistent with, the observations and views of KCG and/or its affiliates, officers, directors and/or employees (including other KCG Traders). The communication is for your general information only and is not an offer or solicitation to buy or sell any security or product. KCG Traders may, from time to time express indications of interest to potentially buy or sell a particular security. These indications of interest are not firm orders or quotes, and may not be current. Accordingly, please contact your KCG representative if you have any interest or questions relating to these indications of interest or to any information provided herein. KCA most likely makes a market in the securities mentioned in this document. KCG and/or its affiliates, officers, directors and employees, including persons involved in the preparation or issuance of this material, may, from time to time, have long or short positions in, or buy or sell (on a principal basis or otherwise) the securities mentioned in this communication which may be inconsistent with the views expressed herein. Questions regarding the information presented herein or to request a copy of this document should be referred to your KCG Representative. This document is a product of KCG Holdings, Inc. ("KCG") and its affiliates and subsidiaries (collectively "KCG"). KCG Holdings, Inc. ("KCG") is comprised of trading and related entities under common control such as Knight Capital Americas, LLC, KCG Europe Limited (a U.K. registered broker-dealer) and KCG Hotspot FX LLC. © 2013 KCG Holdings, Inc. ("KCG") All rights reserved. Provided by Knight Capital Americas LLC, member of FINRA and SIPC.

15

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Weekly Market Report Week Ending January 23, 2015

FREIGHT Capesize 4TC Average Contract Jan Feb Mar Q1 Q2 Q3 Cal

15 15 15 15 15 15 15

BCI TC Average 6375 8253 8885 8520 10100 11688 11281

Panamax 4TC Average Contract Feb Mar Q1 Q2 Q1, Q2

15 15 15 15 15

Open 6250 7000 9000 8250 9700 11500 11000

Close 6500 7400 8000 8700 9150 11350 10400

BPI TC Average 6205 7047 6733 7617 7483

Supramax 6TC Average Contract Feb, Mar 15

Chg 319 428 29 1262 443 na 96

Volume:

Chg -795 -803 -267 -323 na

Volume: Open 6500 7500 6600 8000 7500

Close 5800 7000 6600 7400 7400

BSI TC Average 7271

Chg na

Chg 250 400 -1000 450 -550 -150 -600

Chg -700 -500 0 -600 -100

Volume: Open 7300

Close 7200

Chg -100

3,605 Low 6250 7000 7900 8200 8900 11350 10400

1,615

lots High 6500 10000 10125 8800 10600 12100 11550

lots

Low 5800 6850 6600 7400 7400

130

High 6500 7500 6750 8000 7500

lots

Low 7200

High 7300

IRON ORE TSI Iron Ore 62% Fines Contract Jan Feb Mar Q1 Q2 Q3 Cal

15 15 15 15 15 15 15

TSIO 62 Average 68.10 66.07 65.07 67.38 64.12 62.88 63.64

Chg -0.53 -1.43 -2.05 -0.83 -1.83 -1.50 -1.50

Volume: Open 69.00 68.05 67.50 68.25 66.25 64.00 64.00

16

Close 67.50 63.75 63.25 66.50 62.00 61.80 63.50

Chg -1.50 -4.30 -4.25 -1.75 -4.25 -2.20 1.00

3,735,000 Low 67.50 63.00 63.00 66.50 61.50 61.80 63.50

mt High 69.00 68.05 67.75 68.25 66.25 64.00 64.00

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Weekly Market Report Week Ending January 23, 2015

FERTILIZER Urea Nola Contract Feb 15 Mar 15 Apr 15

Urea G N Chg 0.50 3.67 0.20

Open 334.00 334.00 320.00

Close 331.00 332.00 320.00

Volume: Chg -3.00 -2.00 0.00

33

Average 332.50 332.67 318.00

UAN NOLA Contract Apr 15

Chg na

Open 263.00

Close 261.00

Volume: Chg -2.00

12

Average 262.00

DAP NOLA Contract Feb 15

Chg 4.17

Open 445.00

Close 445.00

Volume: Chg 0.00

6

Average 445.00

Average 291.81 292.50 282.55

S38 Chg na na na

Open 280.00 292.00 283.00

Close 295.75 293.00 281.75

Volume: Chg 15.75 1.00 -1.25

31,150 Low 280.00 292.00 281.75

Low 331.00 332.00 312.00

lots High 334.00 334.00 320.00

Low 261.00

lots High 263.00

Low 445.00

lots High 445.00

BUNKER FUEL Singapore 380cst Contract Dec 15 Nov 15 Q2, Q3, Q4 15

17

mt High 295.75 293.00 283.00

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

First Watch: Stifel Shipping Weekly Contributed by

Stifel Nicolaus & CO, Inc. Stifel One Financial Plaza, 501 North Broadway St. Louis, MO 63102 Phone: (314) 342-2000 Website: www.stifel.com

Dry bulk asset values have been falling steadily since March 2014. Although very few transactions have taken place recently, 5-year old Panamax vessels are estimated to be worth $19 million which is only slightly above the previous trough of $18 million two years ago which represented the lowest value since 2003. Interestingly 3-year charter rates are approximate $10,675 per day which is materially higher than the 2013 level of $8,750 per day. On this basis the current charter rates would yield and unlevered cash rate of return on a 5-year-old 11%, while previous trough yields have been closer to 8%. This would imply that Panamax/Kamsarmax values are several million too low (the same holds for new deliveries). However, five year old Capesize asset values are estimated to be $36 million and 3-year time charter rates are approximately $11,750 (the lowest this millennium), generating and implied unlevered cash yield of 6% implying asset values could fall slightly farther should charter rates not improve. However, in both cases, current asset values are less that 10% from the previous floor. Furthermore, current assets values are also in line with the inflation adjusted trough values of rate collapse of the early 2000's. Although, asset values could break through previous levels of resistance, it appears to us we should be approaching a bottom, particularly if trade resumes following the mid-February Chinese New Year.

18

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS Global Shipping Fleet & Orderbook Statistics

Contributed by Stifel Nicolaus & Co, Inc.

19 19

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

A Mulligan for Capesize Owners? How bulker conversions will impact the tanker market Contributed by

Poten & Partners, Inc.

While the tanker market has gone from strength to strength on the back of sharply lower oil prices and moderate fleet expansion, the dry cargo market, in general, and capesize bulk carriers, in particular, are in the doldrums. The dry bulk orderbook for 2015 and 2016 delivery remains high, in particular for Capesize vessels. Is it realistic to expect that a significant portion of these large bulk carriers are going to be converted to Aframax or Suezmax tankers?

805 Third Avenue New York, NY 10022 Phone: (212) 230 - 2000 Website: www.poten.com

Scorpio announced recently that it had reached agreements with shipyards in South Korea and Romania to modify six newbuilding contracts for Capesize bulk carriers into newbuilding contracts for LR2 product tankers. It has been reported that several other owners are currently negotiating with shipyards as well. Is this the beginning of a trend? We caution against expecting too many additional conversions to come to fruition. For these deals to materialize a number of elements need to fall into place. Firstly, the yard needs to be able to build and have current designs for both bulkers and tankers. Secondly, these yards need to be willing to switch the order. This will probably be possible only for owners with a certain stature that have ordered a series of vessels at that yard. The shipbuilder will want to ensure that these conversions do not significantly interrupt planned construction and procurement. Shipyards are also keen to maintain their profit margins when changing from one vessel-type to the other. A look at the current Capesize orderbook will help us to scale the possible impact of these conversions. We defined a Capesize bulk carrier as a vessel of at least 120,000 dwt. As of January 1, 2015 there were some 336 Capesize bulk carriers on order. For 69 of these vessels (about 20%) construction has already started, so conversion to another vessel type is no longer an option. Even if construction has not yet started, a switch to another vessel type is only feasible if the same yard has an existing design and a proven track record of building such vessels. A careful review of the shipyards where these capesize vessels are on order shows that out of the 38 yards only 11 are also (capable of) building similarsized tankers. Excluding these “dry cargo only” yards removes another 104 vessels from the conversion pool. Next, we looked at the owners involved. If one assumes, which we believe to be reasonable, that the owners that will most aggressively push for conversions are the ones with experience in both dry bulk and tanker markets, the field is whittled down even further, since 113 of the Capesize vessels remaining on order are owned by dry cargo specialists. Based on the above analysis we estimate that out of the 336 Capesize vessels currently on order, about 50 ships are potential conversion candidates and a significant portion of these orders are already subject to active negotiations. More conversions will likely be negotiated, however, at the moment, we don’t expect that this development will become so widespread that it will pose an immediate threat to the health of the tanker market.

20

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Tanker Market – Weekly Highlights VLCCs poised for low ’15 phase outs, high NB orders? Contributed by

VLCC earnings have observed remarkable strength in recent months, positioning the class as one of the beneficiaries of the growth of global crude supply in excess of demand collapsed crude prices. Despite a relatively stagnant ton‐mile demand growth profile, rising inefficiencies stemming from a wider geographical distribution of VLCC loadings have supported rates as charterers increasingly compete with other markets for tonnage. On the supply side, two key factors have supported a reduction of net growth levels (beyond more flexible factors like slow steaming) and thus the structural improvement: lower newbuilding deliveries and a higher rate of phase‐outs. Deliveries declined from 2013, in‐line with the slowing of NB orders during the height of the global financial crises and the more sustained lull which followed the 2010 false recovery. Simultaneously, phase‐outs accelerated as stronger demolition values prompted the final exiting of the single hull fleet while earlier growth in offshore projects and a trend towards greater efficiency of scale in dry bulk markets substantiated several conversion deals. More recently, rising maintenance provisions for units from the third special survey (15‐years) onwards and rising forward regulatory and environmental compliance costs have been expected to boost demolition sales, offsetting NB deliveries to yield a low long‐term net fleet growth rate. However, as charterers continue to vie for period tonnage for floating storage optionality, two of the units fixed or on subjects for such employment were units previously sold to demolition or conversion buyers – necessitating these units to be “phased back in” as they effectively continue normal trading. Moreover, of the 25 VLCC units on subjects or fixed to period charterers since the start of the year, at least four were previously counted among our list of units for a likely 2015 phase‐out. As more such units are expected to emerge as fixed onto time charters while others are likely to continue trading given the extent of present earnings potential amid declining demolition values, our base case projection of 2015 phase outs has been revised to less than half the number we expected just four weeks ago. Similarly, the poor trading environment prevailing in other segments of the maritime space, including offshore and dry bulk, raise chances of NB orders being converted to tankers – and very likely VLCCs. This comes as conventional order interest has started heating up. Though doubts surround some of these, a total of seven (yet unconfirmed) units are reported to have been added to the orderbook in the past week; if true, QTD orders already exceed all those ordered during 4Q14.

21

Charles R. Weber Company, Inc. Greenwich Office Park One, Greenwich, CT 06831 Phone: (203) 629 - 2300 Website: www.crweber.com

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Tanker Market – Weekly Highlights

22

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Tanker Market – Weekly Highlights THE TANKER MARKETS VLCC VLCC chartering activity strengthened across all key markets this week as charterers in the Middle East market progressed more concertedly into February dates while the West Africa and Caribbean markets were more active on fresh demand from the Far East. The Middle East fixture tally rose by 56% w/w to a total of 28 fixtures while the West Africa market saw demand double to 6 fixtures. The combination of the accelerated demand in those markets – both of which draw from Middle East positions – and sustained period interest by charterers allowed sentiment to shrug off any lingering bearishness which had followed last week’s slower spot demand levels. To‐date, a total of 30 cargoes for loading through the first decade of February have been covered leaving a further 13 remaining. Against this there are 22 units available and after accounting for draws from this list for West Africa demand the implied surplus is just five units. This represents a tighter market as compared with the end‐January surplus of nine units. Together with the fact that the pace of demand should prove stronger next week as charterers cover remaining first‐decade cargoes and progress more concertedly into second‐decade dates, the shorter list of available units should allow rates to remain elevated with potential for fresh gains around mid‐week. Rate progression further forward is largely subject to the deployment status of the units which have been time chartered this month. A total of 26 VLCC units are now either confirmed or on subjects for time charters and of these just two are likely to commence storage activities shortly after delivery. The remainder, which offer the optionality to store, could either initially service internal charterer programs or be redeployed onto the spot market as relet units or through pool participation (at least two units time chartered recently now appear on pool positions). In the case of servicing internal program cargoes, a corresponding reduction of spot market activity could negatively impact psychologically‐driven sentiment while in the case of relets and pool deployments, reappearances on the spot market would expand available supply from current assumptions. Middle East Rates to the Far East were largely unchanged, posting a modest weekly gain of 0.1 point to an average of ws69.4. Corresponding TCEs gained 1% to an average of ~$75,328/day. Rates to the USG via the Cape were assessed at an average of ws37.4 – off by 0.1 point w/w as the route eased to ws37 at the close of the week. Triangulated Westbound (AG‐USG/CBS‐SPORE/AG) earnings fell 1% w/w to an average of ~$81,881/day. Atlantic Basin In the West Africa market, rates were largely steady in‐line with the Middle East market. Assessed rates on the WAFR‐FEAST route were unchanged at ws68 with corresponding TCEs averaging ~$70,378/day. A surge of fresh demand in the Caribbean market saw rates on the CBS‐SPORE route pare last week’s losses by mid‐week. An extending of those gains boosted the rate to $7.65m lump sum, representing a $550k gain for the week. A lack of natural position prevails and further inquiry during the upcoming week should keep rates elevated around present levels.

23

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

Tanker Market – Weekly Highlights Suezmax Activity in the West Africa Suezmax market remained stable this week with a total of 15 regional fixtures reported matching figures observed during the prior two weeks. On a four‐week moving average basis, however, activity stands at 13 fixtures, representing a 12% reduction from the 1‐year average. A reduction of delay issues in the Mediterranean and Black Sea markets combined with the reappearance of units from other markets on West Africa position lists loosened availability and prompted the emergence of fresh rate downside towards the close of the week. The WAFR‐USAC route lost 2.5 points to ws90 while the WAFR‐UKC route lost 10 points to conclude at ws82.5. The disparity of rate losses between the two routes owes, largely, to differences in onward trading prospects; rates in the Caribbean have softened and look likely to remain weak in the near‐term while upside potential in the Baltic market offers UKC‐bound units better prospects. Further losses could be observed during the upcoming week on the weaker fundamentals and expected availability build over the weekend. Aframax Caribbean Aframax demand declined further this week, dropping 30% to just 7 fixtures – the lowest figure since August. The market commenced the week bullish after some off‐the‐radar fixtures became evident on Monday with a corresponding reduction of prompt tonnage while earlier port closures on Mexico’s gulf coast and fog on the USG raised potential for a sustaining of the tighter position through the week. As the week progressed with slow activity and a reduction of the delay issues, however, rates started to show fresh weakness and ultimately observed incremental rate losses. Ultimately, the CBS‐USG route lost 15 points to conclude at ws137.5. A fresh round of weather‐related port closures in Mexico since Thursday – consuming a longer share of regional terminals and with more bad weather expected over the weekend – could help to limit further downside during the upcoming week. Otherwise, on normal supply/demand fundamentals, rates appear likely to remain soft. Rising volumes of heavy Canadian crude have been reaching the US in recent weeks after Flanagan South and Seaway “twin” pipeline throughputs ramped up following their December startups. EIA figures show total US crude imports from Canada have risen 10% from 2H14 to an average of 3.1 Mb/d during the first three weeks of the year. While low oil prices could prevent further strengthening of volumes (the pipelines are reportedly operating at around half of their capacity), recently lower regional Aframax demand figures could represent a new norm, raising the risk of a near‐term oversupply issue. The repositioning of units from the region would likely follow – similar to the trend observed at the end of 3Q14 – thus helping to restore better balance to the market after any structural changes to the market become clearer and realized by market participants. Panamax The Caribbean Panamax market commenced on a softer tone with initial rate downside, a rebounding of activity levels from mid‐week saw rates pare the earlier losses. The CBS‐USG route closed at ws150, representing a 2.5 point loss for the week.

24

CPP The USG MR market experienced modestly slower demand this week with the fixture tally easing 7% w/w to 25. Though rates had observed successive rate losses over the course of the week, at the end of the week one unit freshly ex‐dry dock was fixed at a stronger discount to last done with other units subsequently fixing at equally low levels. The USG‐UKC route shed 22.5 points over the course of the week to a closing assessment of ws70 while the USG‐ POZOS route fell $135k to $500,000 lump sum. On a TCE basis, the USG‐POZOS route fell by just over 30% to ~$21,419/day. Rates could observe further modest downside at the start of the upcoming week, while further losses thereafter should be limited by lower availability and the appearance of fewer units on USG position lists fresh off of voyages to the USAC as those units find alternative opportunities (i.e. onward trades from ECC and UKC).

Monday, January 23, 2015 (Week 4)

SHIPPING MARKETS

S&P Secondhand, Newbuilding & Demolition Markets S&P MARKET TRENDS DURING JANUARY: ↑ Secondhand – ↑Newbuilding – ↓Demolition

Contributed by

Golden Destiny S.A.

WEEKLY S&P ACTIVITY VESSELTYPE

SECOND HAND DEMOLITION ($) Invested Units Capital Units in DWT Bulkcarriers 5 45,200,000 5 577,947 Tankers 18 305,700,000 0 0 Gas Tankers 2 105,000,000 2 21,307 General Cargo 5 1,500,000 3 43,082 Containers 5 5,700,000 0 0 Reefers 0 0 0 0 Passenger / Cruise 1 328,000,000 0 0 Ro - Ro 2 N/A 1 2,154 Car Carrier 0 0 0 0 Combined 0 0 0 0 Special Projects 3 N/A 0 0 TTL VSLS/Demo 41 791,100,000 11 644,490

TOTAL Units 10 18 4 8 5 0 1 3 0 0 3 52

57 Akti Miaouli Street, Piraeus,185 36 Greece

%w-o-w SH -29% 80% 150% -44%

DEMO 150%

Phone: +30 210 4295000 Website: www.goldendestiny.gr

NEWBUILDING MARKET -100%

WEEKLY NEWBUILDING ACTIVITY Vessel Type Units Bulkcarriers 0 Tankers 5 Gas Tankers 0 General Cargo 0 Containers 0 Reefers 0 Passenger / Cruise 0 Ro - Ro 4 Car Carrier 0 Combined 0 Special Projects 2 TOTAL 11

0%

46%

175%

20 S&P deals reported at an undisclosed sale price

 The estimated invested capital does not include deals reported at an undisclosed secondhand sale price.  P&C: deals reported as private and confidential with no disclosed details for the secondhand sale price.

Sub-type

1

Tanker Tanker Tanker Tanker Ro-Ro Ro-Ro

Units

Shuttle

Bunkering tanker

Dwt 319,000

1 + 1 152,000 2

Invested Capital 0 204,400,000 0 0 0 0 0 N/A 0 0 N/A 204,400,000

P&C 0 2 0 0 0 0 0 4 0 0 2 8

%w-o-w -100% -17% -100% -100% -100%

300%

-93% -85%

 The estimated invested capital does not include deals reported with undisclosed newbuilding price.  P&C: deals reported as private and confidential (not revealed contract price)

NEWBUILDING MARKET – ORDERS

Vessel Type

in DWT 0 701,000 0 0 0 0 0 12,450 0 0 N/A 713,450

115,000

1 1 2

200 CEU 200 CEU

Ro-Ro/ Pax

1

450

Special Project Jack-up Special Project Multipurpose Fallpipe

1 1

Contractor Country China Merchants PRC Energy Shipping Knutsen NYK Offshore NOR Tankers Wah Kwong HK American Petroleum & USA Transport Basto Fosen Ferjer NOR Basto Fosen Ferjer NOR Government of USA American Samoa DEME BEL DEME BEL

Builder

Country

Dely

USD mil/Unit

Dalian

PRC

9-2017

N/A

COSCO Zhoushan

PRC

3-2017

101,000,000

SWS

PRC

1q2017

51,700,000

Blount Marine

USA

8-2015

N/A

Cerme Shipyard Sefine

TUR TUR

12-2016 9/12-2016

N/A N/A

Nichols Brothers

USA

4-2016

N/A

Undisclosed La Naval

N/A SP

2017 1-2017

N/A N/A

Key: GR: Greece, PRC: China, NOR: Norway, JPN: Japan, DEN: Denmark, CAN: Canada, SWD: Sweden, GER: Germany, TRK: Turkey, NIG: Nigeria, SKR: South Korea, SPORE: Singapore, CYP: Cyprus, Dely: Delivery

25

Capital Link Shipping Weekly Markets Report

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