DNV GL © 2013 SAFER, SMARTER, GREENERDNV GL © 2013

BUSINESS AREA MARITIME – BUSINESS DEVELOPMENT

June 2015

Disclaimer

Whilst care has been taken in the production of this analysis, no liability can be accepted for any loss incurred in any way whatsoever by any person who may seek to rely on the information contained herein.

DNV GL © 2013

MARKET SUMMARY ………………………..……………………………………

BUSINESS ENVIRONMENT ………………..……………………………..

CONTAINERSHIPS ……………..…………………………………………………

OIL & PRODUCT TANKERS ………………………………………………

BULK CARRIERS .…………..……………………………………………………….

OFFSHORE ….................…….…………………………………………………

FOCUS ON:

CRUISE VESSELS …….……………….…………………………………………..

MULTI PURPOSE VESSELS ……………………………………...............

3

5

6

12

18

25

33

32

DNV GL © 2013

Market Summary

16 June 20153

are substantially higher and are likely to remain satisfactory at

least until the end of the year. Also product tankers make

reasonable profit and their prospects remain positive. The LPG

players sit with a happy and self-confident smile, but with freight

rates reaching $100.000/day (for VLGC), it comes as no

surprise. Their LNG partners may have not been as lucky,

however big projects which start in the near future give them

confidence that they have played their cards well so far.

In the container segment, a whiff of optimism can be sensed, as

most of the operators have managed to return to profit.

The gloomy side of the table is certainly occupied by the dry bulk

segment. Slower growth of imports (particularly to China),

combined with a substantial oversupply of tonnage have literally

wiped out all of the profits. Uncontrolled contracting has started

to take its toll and it may take several years before this segment

recovers. The offshore players are sweating bullets as well. They

were winning the table for the past few years, but the current

low oil price and reduced E&P investments put them in a very

uncomfortable spot. Add a record high orderbook to the picture

and you can see that playing bluff is not an option either.

So there you have it. The cards are on the table. What you see is

what you get. Current sluggish NB contracting proves beyond

doubt, that we have a strong correction in the market. It doesn’t

mean that we are entering another recession and that everyone

is losing the game. The game, however, has just got a lot more

interesting!

Ever since the last recession, shipping in its strive for recovery

has followed various “fashion” trends. We have seen counter-

cyclical ordering, the growing role of private equity, an increased

interest in energy efficiency or a gradual shift towards the so

called “eco ships”. We have also experienced an unprecedented

development in the offshore industry, led by high oil prices

triggered by the presumption of a shortage of that commodity.

So what is next? Almost six months into the year, if we were to

describe the market in one word, that word would be

“correction”. It’s now time to lay the cards on the table and

prove who has got the strongest hand. So in 2015 we “call all-

in”. On the lucky side of the table we can certainly find oil and

gas tanker owners. Due to cheap oil, crude oil tanker earnings

What you see is what you get

GLOBAL SHIPPING MARKETSGLOBAL SHIPPING MARKETSGLOBAL SHIPPING MARKETSGLOBAL SHIPPING MARKETS

����

GLOBAL CONTRACTING 2014 vs 2015, JanGLOBAL CONTRACTING 2014 vs 2015, JanGLOBAL CONTRACTING 2014 vs 2015, JanGLOBAL CONTRACTING 2014 vs 2015, Jan----MayMayMayMay

423

476

76

91

303

312

101

72

155

169

40

108

Dry Cargo

Tanker

Offshore

Container

Bulker

Other

2014 (Jan-May)

2015 (Jan-May)

DNV GL © 2013

0

1.000

2.000

3.000

4.000

5.000

2016 2017 2018 2019 2020201520142013201220112010

Market Summary

16 June 20154

Our latest forecast results show a dramatic reduction of number

of new contracts, in 2015 falling to just a little over 1,800 ships

and MOU (incl. small tonnage). If it comes true, it would be one

of the lowest years in the past 15 years. We expect a small and

gradual recovery end of this year. It is driven mainly on the

presumption that shipyards will be forced to further reduce

prices, thus attracting potential investors.

Looking into specific ship segments, we can clearly see uneven

developments. We remain positive for contracting within the

larger crude oil tankers as well as products tankers (LR1, LR2

possibly LR3). In the gas sector, although already burdened with

large orderbook, we still see a possibility for further contracting.

It is mainly driven by a positive future outlook in this market.

The container operators remain active, however we see a trend

where liner operators target the largest ships (20+k TEU),

whereas the non-operating owners choose from 8-13k TEU

segment, offering a greater flexibility for deployment.

On the other hand, we see substantial difficulties in the dry bulk

sector, where supply/demand balance is widening. Reduced

shipments and relatively strong fleet development sends

shockwaves across the entire sector discouraging further

investment. The situation in the offshore sector isn’t any better.

Reduced investment, low capacity utilisation, combined with a

record high orderbook give very little hope for the recovery any

time soon.

What goes up, must gown down until it bounces back up again!

Shipbuilders are certainly not happy about the recent

developments. The contracting activity is far below their

expectations. During the first 5 months of 2015, only 640

contracts have been signed. It is even below the level we

experienced in 2009, after the collapse of Lehman Brothers.

Monthly average contracting has fallen to around 127 ships (incl.

MOUs).

Uneven dynamics in the market are well reflected by which ships

are being contracted nowadays. We clearly see a lot less activity

in the dry bulk and offshore segments, whereas ordering of oil,

gas and chemical tankers remains relatively vibrant. The

container segment is also active, mostly, although not

exclusively, within the larger ships.

Downhill slide����

GLOBAL CONTRACTING FORECAST (vessels)GLOBAL CONTRACTING FORECAST (vessels)GLOBAL CONTRACTING FORECAST (vessels)GLOBAL CONTRACTING FORECAST (vessels)

Historical data Forecast

DNV GL © 2013

PURCHASING MANAGERS INDEX

120

80

40

750

500

250

201420132012 20152011201020092008

1.500

1.000

500

2014201320122011201020092008 2015

40

20

-20

2015201420132010 2011 2012

40

45

50

55

60

2011 2015201420122010 2013

Business Environment

Oil prices increased 25% in 2015 year-to-date

During the second half of 2014, the US dollar made significant

gains against the Euro and against the Japanese Yen. This trend

continued in the first five months of 2015.

For the Chinese Yuan Renminbi and the South Korean Won, the

situation remained more or less unchanged.

Brent crude oil stood at US$50 per barrel at the start of this

year, and has increased since then by 25% to the current price

of US$63,-.

The 380 cst Rotterdam reached its lowest point in January 2015

with US$250 per tonne, down 55% compared to the high level of

US$ 570 per tonne in January 2014.

OIL / BUNKER STEEL / SCRAP

����

Bunker$/tonne

Crude$/bbl

USD

EXCHANGE RATES

380cst R’dam Crude (Brent)

Index

Avg. Demolition Price VLCC (USD/ldt)

Global Steel Price (USD/t)

%China Manufacturing Purchasing Managers Index

5

USD/KRW

USD/CNYUSD/EUR

USD/JPN

DNV GL © 2013

DNV GL © 2013

Executive Summary| Containerships

Demand for the large container vessels (all vessels above 12,000

TEU) comes from the Asia-Europe trade. Newbuilding demand is

expected to stay relatively high, due to the need from liner

companies to save slot costs. The major alliances are now in

place, and further ordering is expected. Since scrapping is non-

existent for this segment, yearly fleet growth rates are high.

Containerships 8,000-12,000 TEU are more and more deployed

on non-mainlane trades. Once the new Panama Canal has

opened, additional deployment opportunities are expected.

Contracting levels are expected to increase, and also here,

scrapping does not play a role. Yearly fleet growth levels are

expected to remain high.

For containerships 3,000-8,000 TEU, demand is expected to

increase after the opening of the new Panama Canal (for the

wide-beam designs). In addition, trade growth in the smaller

North–South routes, intra Asian and other non-mainlane trades

support future growth. Scrapping activity is expected to keep

fleet growth to minimum levels.

For the smallest containerships below 3,000 TEU, demand

growth in the future is expected to come from the intra-Asian

network of routes and the North–South routes. Although

contracting levels are expected to pick up, scrapping levels are

too high to result in a positive fleet growth in the mid term.

The most recent forecast for the 2015 containership fleet growth

is around 7% (TEU based), compared to a global containerized

trade growth of 5,7%. Fleet capacity expansion is going to take

place predominantly in the segment of the largest

containerships. For next year however, fleet growth is expected

to reach a much lower 5,5%, whereas trade growth is predicted

to increase to 6,4%. Despite some mixed signals about the

strength of the 2015 Asia–Europe trade growth recently, the

longer term growth expectations for containerised cargo are

optimistic.

The ongoing trend of building even larger containerships shows

no sign of slowing down and recently, Maersk Line announced

that it plans to build a further 11 Triple-E class vessels, with an

option for six more.

CONTAINERSHIPSCONTAINERSHIPSCONTAINERSHIPSCONTAINERSHIPS

���� The trend of mega containership is expected to continue

7

DNV GL © 2013

-8

-4

0

4

8

12

16

20202018201620142012201020082006200420022000

In its “World Economic Outlook”, the IMF forecast global growth

of 3.5% in 2015 (unchanged from its last update in January) and

3.8% in 2016, slightly stronger than it had previously expected.

Earlier, the World Trade Organisation (WTO) cut its forecasts for

global trade growth this year to 3.3%, down from 4%.

Global containerized trade is expected to grow by 5.7% in 2015,

which would mean a slight increase compared to the 2014

increase of 5.3%. In 2016, trade is expected to grow by 6.4% to

reach 192,5 million TEU at the end of the year.

For 2015, trade on the mainlanes Far East–US and Far East-

Europe is expected to grow by 4.1% and 4.5% respectively and

for the Europe-US trade an increase of 3.0% is foreseen. The

North-South trades and non-mainlane East-West trades are

expected to grow by 6.5%-7.0% in 2015. All in all, stronger than

last years trade growth is expected for the Far East-US and the

North-South trades.

For the Asia-Europe trade, year-to-date volumes (Jan - end of

April 2015) recorded 4.7m teu, representing a 3.4% fall on the

4.9m TEU moved by Asia-Europe carriers during the first four

months of last year, according to Container Trades Statistics

(CTS). However, on a month on month basis, the figures suggest

that normality is returning to the trade following the usual

slowdown post-Chinese New Year.

%p.a.

150

100

50

0

250

200

6,4%

5,7%

5,0%

5,3%

201520132011200920072005

Other

North-South

Non-Mainlane East-West

Transatlantic (EU-US)

Far East-Europe

Transpacific (FE-US)mTEU

����

Containerships | Demand

ChinaUSA EUGlobal

GDP GROWTH EXPECTATIONS

GLOBAL CONTAINERISED TRADE

Healthy trade growth expected, but uncertainty still exists

8

DNV GL © 2013

100

1,0

0,8

0,6

0,4

0,2

200

300

400

500

20152014201320122011

2,5

2,0

1,5

1,0

0,5

0,0

20202019201820172016201520142013201220112010

In the first five months of the year, containership newbuilding

contracting amounted to 72 vessel totalling 930,000 TEU. This

year, the focus is clearly on the ordering of very large

containerships. A total of 34 containerships with 18,000 TEU or

more have been ordered so far this year (compared to 13

vessels last year). On the other hand, so far in 2015 there were

no new contracts for containerships between 12,000-16,000 TEU

(last year, there were 34 new orders for this size segment).

For the full year 2015, the volume of new contracts is expected

to reach around 1,9 million TEU with 180 vessels. Focus is on

the liner companies, which are expected to continue ordering the

very largest containerships >16,000 TEU for the rest of the year.

Future levels of newbuilding contracting are based on healthy

containerised trade growth expectations for the years to come

and the continuation of lowering slot costs per transported

container. This could lead to a gradual increase in the yearly

contracting volumes from 1,6 mTEU in 2016 to 2,1 mTEU in

2020.

The total idle containership fleet reached 1,8% or 350,000 TEU

at the start of May 2015. Compared to the start of the year, this

means an increase of more than 100,000 TEU. Although the total

number of vessels in layup did not change significantly, there are

relatively more mid-sized containerships in layup (3,000-7,500

TEU segment) and less smaller vessels (< 3,000 TEU).

mTEU

����

Containerships | Supply

(EXPECTED) CONTRACTING

Strong focus on large vessel newbuilding contracting

9

<3k TEU

3-8k TEU

8-12k TEU

12K-16K TEU

>16K TEU

<3k TEU

3-7,5k TEU mTEU (right axis)

>7,5k TEUmTEUVessels

IDLE CONTAINERISHIP FLEET

DNV GL © 2013

For the containership sector, 2015 will be characterized by

another year with high volume deliveries. This is the direct result

from the extraordinary newbuilding contracting level in 2013

totalling 2.0 mTEU.

The largest part of the TEU capacity that will be delivered this

year will come from the 8,000-12,000 TEU size segment,

followed by the largest vessels in the +16,000 TEU segment.

Delivery expectations for 2016 are much lower, coming from the

dip in newbuilding contracting that occurred in 2014 (1,1mTEU).

This will result in a slower fleet growth in 2016, compared to

other years. Yearly deliveries are expected to average 1,6mTEU

in the 2017-2020 period. However, the highest impact on the

demand/supply balance is the fact that deliveries from the

largest vessels (+16,000 TEU) will increase their share in the

total deliveries, increasing the delivery volume more than

proportional, due to their size.

The containership fleet still is relatively young, at least the larger

size segments. As a result, scrapping expectations for the 2015-

2020 period are expected to be around 275,000 TEU per year

and apply to the two smallest size segments of the fleet only.

Fleet growth (in TEU capacity) for the 2015-2020 period is

expected to be around +6% per year with an exception for this

year. Due to strong deliveries and relatively low scrappings, the

containership fleet is expected to expand by +7% in 2015.

mTEU

mTEU

����

Containerships | Supply

EXPECTED DELIVERIES & REMOVALS

FLEET DEVELOPMENT

+6% yearly fleet growth expected for 2015-2020

10

2,0

0,0

0,5

1,5

1,0

-0,5

2011 20122010 20152013 2014 20192018 202020172016

12K-16K TEU

<3k TEU8-12k TEU>16K TEU

3-8k TEU

5

0

10

20

15

25

201320122011 2016 201820172014 2015 2019 20202010

12K-16K TEU

8-12k TEU

3-8k TEU

>16K TEU <3k TEU

DNV GL © 2013

Containerships | Prices & Chartering

200

150

100

50

0

2010 2011 2012 2013 2014 2015

Containership freight rates started to drop quite suddenly in the

second quarter of 2015 on all of the benchmark SCFI trades (the

average drop for the four routes is -35%). This occurred after

the latest round of general rate increases proposed by liner

companies were not accepted by the market.

On the contrary, timecharter rates for containerships have

increased across all size ranges in the Jan-May 2015 period. The

containership timecharter rate index increased 30% in the first

five months of this year.

Possible explanations for the diverse direction of rates must be

found in a slowdown in parts of the cascading process and a

contraction in the charter market fleet.

mUSD .000 USDper day

Newbuilding prices for container vessels remained unchanged so

far in 2015. Considering the newbuilding contracting volume, this

comes as no surprise. And as long as the orders keep on coming

this year, there will probably not be much price movement.

Current newbuilding prices range between $31 million for a

2,600-2,900 TEU vessel and $154 million for a 18,500-19,000

TEU vessel, of course heavily dependant on the vessel

specifications. The latest newbuilding vessels by Maersk for

instance are priced at around $160m per vessel, more than

others of similar capacity ordered in recent months. Some of the

features of the new ships include higher lashing bridges and

strengthened hatch covers to allow taller container stacks.

0

2

4

5

3

6

7

1

20132010 2011 2012 20152014

SCFI Shanghai-WC America Freight Rate $/FEU

SCFI Shanghai-Med Freight Rate $/TEU

SCFI Shanghai-Europe Freight Rate $/TEU

SCFI Shanghai-US EC Freight Rate $/FEU

4,800 TEU (Wide Beam)

2,500 teu Geared

18,5K-19K TEU

13K-14K TEU

6,600-6,800 teu

8,500-9,100 TEU

NEWBUILDING PRICES FREIGHT RATES (Shanghai Shipping Exchange)

���� Containership spot rates take a dive. Timecharterrates go up and newbuilding prices still unchanged.

11

DNV GL © 2013

DNV GL © 2013

Executive Summary| Oil & Products Tankers

(particularly in the MR segment) may start to put pressure on

the rates. Nevertheless, we still believe in good performance at

least until the end of 2015.

Despite strong fundamentals supporting the market, there are

also several factors which need to be addressed. First of all, the

robust growth of shipments is triggered by low oil prices, which

results in stockpiling as well as, it supports refinery margins,

encouraging higher throughput. Those are not the drivers

coming from increased oil consumption, but simply from taking

an advantage of the current market environment.

Secondly, as we expect a substantial number of deliveries for

2016 and 2017, strong rates are going to gradually come under

pressure. As there is only limited potential for scrapping (or

conversions), both crude oil and products fleet growth will

accelerate, thus substantially increasing the supply of tonnage.

A rapid increase of refinery capacity in the Middle East, India and

China is another interesting factor. Since there are more

products generated in that regions, it is reasonable to suspect

that it will lead to reduced exports of crude oil and increased

exports of products. As volumes are likely to grow, the long-

range products tankers are the obvious “suspects” to benefit

from that change.

There are more factors to take into account, such as political

unrest in Libya and the relaxing of Iranian sanctions. It is hard to

predict their outcome, but they will play an important role too.

While the entire merchant shipping benefits from the reduced

fuel expenses, crude oil tankers seem to have hit the jackpot!

Besides the savings made on bunkers, they have also been

blessed with a substantial growth of demand for tonnage. Cheap

oil has triggered off an intensive stockpiling (particularly in Asia),

which resulted in an increased number of fixtures for the crude

tankers. As a result the freight rates have gone up substantially.

Average 1 year TC rates are at least twice as high as they were a

year ago. A strong spot market keeps oil tankers busy and

owners are reluctant to offer their ships for storage. Relatively

low deliveries of new tonnage in 2015 will most likely keep

earnings high for another year.

Products tankers continue to perform well, however a large

orderbook and subsequently growing number of deliveries.

Full steam ahead!

OIL & PRODUCTS TANKERSOIL & PRODUCTS TANKERSOIL & PRODUCTS TANKERSOIL & PRODUCTS TANKERS

����

13

DNV GL “Everbright”delivered 2010, 156 717 DWT, 274.50m Loa

DNV GL © 2013

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

400

300

200

100

0

-100

-200

2014201220102008 2009 2011 2013 2015

After the latest meeting, OPEC announced they would maintain

their current crude oil production, leaving the production target

of 30mbd unchanged. In fact, during the past 3 months

production was over 31mbd. As we face a possible lift of Iranian

sanctions, the situation may get even more interesting. Iran

claims that it is able to almost immediately add another 0.5mbd

of production, should the sanctions are lifted. In addition, yet

another 0.5mbd will be added within the next 6 months, as Iran

is willing to restore all its previous export patterns. Add another

38mb of oil currently stored on tankers and we are likely to see a

lot more oil in the international markets by the end of the year.

The sudden increase of available oil will not directly translate into

much more robust demand for tonnage, however we still expect

a good growth in demand in 2015. For crude oil tankers it is

forecast to reach 2.3% (DWT terms), whereas for products

tankers it will increase up to 4.2% y-o-y.

There are visible changes of trade patterns. The US shale

production forces the traditional US suppliers to find new

markets. Latin America started to export larger volumes to Asia.

West-African oil goes to Europe and Asia rather than to the US.

There is also a new trade from the US back to coastal Canada

(due to free trade agreement). Despite Canadian oil being sold to

the US, Canada’s demand for this commodity is generated

mainly in the coastal areas, thus seaborne crude is preferred.

Millionbpd

mDWT

Solid tonnage demand growth ����

Oil & Products Tankers | Demand

GLOBAL OIL DEMAND

TANKER DEMAND DEVELOPMENT

4.0

3.0

2.0

1.0

0.0

-1.0

-2.0

100

80

60

40

20

0

-20

-40

20162014201220102008

y-o-y change in %

mio bpd

y-o-y change product in %y-o-y change crude in %

Product tanker demandCrude tanker demand

14

DNV GL © 2013

Driven by the strong fundamentals, contracting of oil tankers

remains vibrant. As newbuilding prices are still low, investors are

keen to take on new projects. As many as 64 crude and 38

product tankers have been placed in the shipyards during the

first 5 months. In addition, it is worth mentioning, that there

have been at least 14 newbuilding contract conversions, from

capesize bulkers into LR1 and LR2 tankers and there are likely

more to come in the second half of the year.

According to the DNVGL forecast, another 47 crude and 120

products and chemical/oil tankers are to be contracted towards

the end of the year. The total expected volume in 2015 (incl.

conversions) is expected to reach around 280 contracts

(32mDWT). Looking beyond 2015, our expectations for the

sector remain positive, however in 2016 the total number of

contracts is expected to be below this years result (264). It is

mainly due to lower expectations in the MR tanker contracting,

triggered by already a large orderbook in this segment. We

remain positive for the larger ships (LR1, LR2 and possibly LR3)

as the volumes of cargo are expected to grow robustly. Based on

that fact, we expect increased competition of larger vessels

against typically used MR tankers in some trades.

In the crude sector we expect similar number of contracts for

VLCC, whereas in the Suezmax sector, due to recent extensive

contracting we forecast a significant slowdown in 2016.

mDWT

mDWT

Contracting – looking into the crystal ball����

Oil & Products Tankers | Supply

EXPECTED DELIVERIES & REMOVALS

(EXPECTED) CONTRACTING

0

30

40

20

10

20142013201220112010 202020192015 2016 2017 2018

Crude Oil Tankers Product/Chemical Tankers

-20

30

10

-10

20

40

60

0

50

202020192010 2011 2012 2013 2014 2015 2016 2017 2018

Crude Oil Tankers Product/Chemical Tankers

15

DNV GL © 2013

15

11

15

1717

0%

5%

10%

15%

20%

VLCC Suezmax Aframax Panamax Handysize

300

100

200

0

700

600

500

400

20202019201820162015 201720142013201220112010

If we look at the demand/supply ratio, it seems like most of the

oil tanker segments are well balanced. On the crude side, the

demand for tonnage is a notch ahead of the expected fleet

growth, providing an extra boost for freight rates. When we look

beyond the current year, we must not underappreciate coming

deliveries, which in 2016 will be much higher than in 2014 and

2015. This will certainly bring a cooling effect to the earnings.

On the product side, the balance is slightly worse although yet

not alarming. The fleet is going to grow 1% faster than demand

for tonnage. As already mentioned before, we are particularly

worried about 245 vessels strong MR orderbook. Many of those

ships were contracted on a speculative basis and thus may

struggle to find employment once being delivered. In addition,

on the longer hauls, LR1 tankers will gradually try to squeeze

their smaller brothers out of business, by providing better

economies of scale.

The oil tanker orderbook contains 841 ships corresponding to

75.6 mDWT. It represents 8% and 14% of the existing fleet

respectively. The current fleet consists of 11,026 ships, which

have an accumulated tonnage of 526.9 mDWT.

In 2015, the crude fleet is expected to grow by 1.1% (vs.

demand of 2.3%) whereas the products tanker fleet will grow by

5.6% (vs demand of 4.2%).

mDWT

����

Oil & Products Tankers | Supply

FLEET DEVELOPMENT

Order book versus fleet [in %]

Product/Chemical TankersCrude Oil Tankers

Fleet in balance

16

DNV GL © 2013

Oil & Products Tankers | Prices & Chartering

Over the past 3 months, oil tankers earnings remained high,

averaging around $33,600/day. It is a little less than in the

beginning of the year, but still very satisfactory indeed.

Due to a general fall in the contracting activity, newbuilding

prices started to deteriorate, which creates an additional

incentive for further investment. VLCC costs around 95.5 mUSD,

Suezmax 64.5 mUSD, whereas Aframax 53.0 mUSD (55.0 mUSD

for a LR2). Second hand prices have remained pretty much

unchanged. The 5yo/NB price ratio hoovers around 84%-88%.

Demolition activity is limited to the small product/chemical

tankers only. In the larger sector there were only a hand-full of

vessels sold for scrapping in the year to date.

000.USDPer day

MillionUSD

TIME CHARTER RATES NEWBUILDING & SECOND HAND PRICES

����

000.USDper day

CRUDE OIL TANKER EARNINGS

Good earnings, falling NB prices and no demolition

40

30

20

10

50

60

70

2012 2013 20152008 2009 2010 2011 2014

Handy

Panamax

Afra

Suez

VLCC

140

120

100

80

60

40

20

20122011201020092008 201520142013

5yrs

Handy

5yrs

Aframax

5yrs

VLCC

20

60

40

120

80

100

2010 20132012 201420112008 20152009

VLCC AfraSuez

17

DNV GL © 2013

DNV GL © 2013

Executive Summary| Bulk Carriers

19

China’s coal imports fell 42% y-o-y in 1Q2015 and imports

appear to be heavily undermined this year by China shifting

away its focus from polluting, coal-fired power plants to

renewables and cleaner sources of energy.

Meanwhile, Chinese iron ore imports are still expected to expand

firmly by around 6% despite weak domestic steel demand.

Expansion of low-cost Australian supply should displace some

domestic Chinese production volumes in the current low price

environment and boost the seaborne trade.

On the supply side, we have seen a record number of

demolitions so far in 2015, particularly in the capesize segment

where over 50 ships (not all officially reported) have been

scrapped. The average demolition age has fallen and if this trend

continues, many more recently built vessels are likely to face a

similar fate. However, deliveries are expected to reach 60M DWT

in 2015 and 43M DWT in 2016 which will continue to put

pressure on the supply side.

The recent slowdown in Chinese demand has lowered down

market’s expectations, demonstrated by the conversion of some

dry bulk vessels to tankers in a desperate attempt by owners to

return to profitability. It is estimated that in 2015 ytd, as many

as 15 newbuilding orders for capesize bulk carriers were changed

into tanker orders. Growth in global seaborne dry bulk trade is

likely to slow in 2015 following estimated expansion of 4% in

2014. Currently, dry bulk trade is expected to increase by 2,4%

which is below expectation at the beginning of the year.

The dry bulk market has been feeling the “heat” of China’s

economic slowdown in 1Q2015 and together with the oversupply

of ships across all sectors; earnings have been pushed to

historical low levels.

Capesize average spot earnings (2010-built) reached a seven

year low of 4,444 USD/day in March which is below typical

operating cost level. Panamax earnings (2010-built) reached

6,856 USD/day while handymax (52K DWT) earnings averaged

around 6,000 USD/day. Overall, average bulk carrier earnings in

1Q2015 represented the lowest quarterly average since 4Q2001

and by May 2015, freight rates had shown no sign of

improvement.

During 1Q2015, the Chinese economy grew 7% y-o-y, which is

the slowest pace of growth since 2009. China's dry bulk imports

have taken a dramatic dive and the trend looks set to continue.

BULK CARRIERSBULK CARRIERSBULK CARRIERSBULK CARRIERS

����

DNV GL bulk carrier “Ajax”delivered 2006. 77,328 DWT. 225m loa

Eco-Conscious China keeps the market down

DNV GL © 201320

Iron ore spot prices fell 59% y-o-y in April to hit a ten year low

of less than 47 USD/T; far away from the 190 USD/T recorded in

2011. The two major Australian miners have targeted an

additional combined increase in production for 2015 of around

70m tonnes and the continued flow of iron ore should keep spot

prices depressed. China took measures in April to support the

domestic iron ore mining industry amidst falling prices, by

cutting power costs and halving the rate of resource tax iron ore

miners pay. This could eventually have a negative impact on the

trade. Exports to China from several countries are likely to ease

as smaller miners scale down production.

Therefore the latest projection for Chinese iron ore imports has

been revised down to an increase of 6% y-o-y totaling 971m

tonnes, which represent a much slower growth than the 15%

registered in 2014.

Chinese seaborne coal imports dropped 49% y-o-y in 1Q2015.

While Chinese coal powered generation fell 4% y-o-y during the

first quarter, hydro-electric generation increased 17% y-o-y in

the same period. Restrictions on coal quality will become stricter

mid-2015, as the government continues to attempt to reduce

urban air pollution. Global seaborne coal trade is expected to

decline to around 940m tonnes in 2015 despite strong projected

growth in Indian coal imports. Rising power demand, low coal

prices and issues surrounding domestic coal output is expected

to continue driving Indian demand.

Milliontonnes

Milliontonnes

����

Bulk Carriers | Demand

CHINESE SEABORNE COAL IMPORTS

CHINESE SEABORNE IRON ORE IMPORTS

0

10

20

30

40

50

60

70

80

90

100

300

600

900

1.200

0

2013201220112010

% s

hare

s

2015 f.2014

% Others (RHS)

% Brazil (RHS)

% Australia (RHS)

Others

Brazil

Australia

0

10

20

30

40

50

60

70

80

90

100

300

200

100

0

400

% s

hare

s

2015 f.20142013201220112010

Others

Australia

Indonesia

% Others

% Australia (RHS)

% Indonesia (RHS)

China’s economy moving away from industrial growth is drawing the last air out of the dry bulk market

DNV GL © 201321

Recent high rates of scrapping and very low contracting are

providing some release on the supply side at the moment.

According to IHS Fairplay, during the first four months of 2015,

168 bulkers with a total of around 10.8 mDWT have been sold

for demolition. Other sources report up to 225 ships scrapped

with capesizes carrying the lions share with more than 50

demolitions but figures are not yet confirmed. Younger tonnage

is being demolished and the average age at which bulker vessels

were scrapped has thus fallen to below 25 years for the first time

this century.

Only 89 orders have been placed in 2015 ytd. 27 handysizes, 21

ultramaxes and 18 kamsarmaxes have been contracted,

representing 75% of the bulkers ordered. Only few capesizes

have been contracted (4 orders) which is not really a surprise in

a market where earnings are below operating cost, but a timely

relief to investors with ships on the orderbook. Around 350

bulkers are forecast to be ordered this year, down from 765 last

year. 6.1 mDWT (240 ships) has been delivered so far. In the

handymax sector, most of the deliveries were ultramax bulkers

with 21 ships delivered. 27 handysizes, 18 kamsarmaxes, 4

VLBC as well as 4 capesizes also entered the fleet in 2015 ytd.

Deliveries are expected to reach 60 mDWT in 2015 (compared to

47.7 mDWT last year) and 43 mDWT in 2016 which will continue

to put pressure on the supply side.

mDWT

mDWT

����

Bulk Carriers | Supply

(EXPECTED) DELIVERIES & REMOVALS

(EXPECTED) CONTRACTING

-40

120

80

40

0

201820152012 20142013 2017201620112010 20202019

120

100

80

20

40

60

0

20202019201820172016201520142013201220112010

Capesize Handymax

VLBC HandysizePanamax

VLBC* > 210.000 dwt Capesize 100-210.000 dwt Panamax 65-100.000 dwt Handymax 40-65.000 dwt Handysize 10-40.000 dwt

*contains Ore Carriers (avg 250.000 dwt)

Orders plunge and rise in scrapping gives hope to dry bulk misery

Handymax

Panamax

Capesize

HandysizeVLBC

DNV GL © 201322

As of 1st of May 2015, the dry bulk fleet comprises 11,370 ships

(758 mDWT). Handysizes (2999 ships) and supramaxes (1946

ships) represent the biggest sectors in numerical terms. Firm

demolition volumes during the first months of 2015 has meant

that the capsize fleet at the start of May was steady compared to

the start of the year. The sluggish growth in the handysize fleet

(+2,4% in 2015 ytd) is partly due to the drop in deliveries. While

the handysize fleet remains one of the oldest sector on average

in the bulk carrier fleet (with 23,3% of handysize vessels aged

20 years and above, compared to 9,2% of handymaxes),

handysize demolition volumes have not picked up as strongly as

in the larger vessel sectors.

The current orderbook of bulk carriers stands today at 1,643

ships (136.6 mDWT), 200 fewer ships than at the beginning of

2015. 492 ultramaxes, 363 handysizes and 299 kamsarmaxes

are currently on order which represent 70% of the total dry bulk

orderbook in numerical terms.

At the end of 2014, the bulk carrier orderbook represented

20,7% of the existing fleet in DWT terms. In 2015 ytd, the ratio

is down to 18% which is releasing some pressure on the supply

side and a step forward to the road of recovery. The orderbook is

still casting a shadow over subdued demand but recent

developments on the supply side are at least providing some

hope for a more balanced market.

mDWT

����

Bulk Carriers | Supply/Demand

FLEET DEVELOPMENT

YEAR-ON-YEAR FLEET CHANGES IN % (DWT)

800

600

400

200

201220112010 20202019201820172016201520142013

Handysize

Handymax

Panamax

Capesize

VLBC

-5%

0%

5%

10%

15%

20%

25%

30%

35%

2010 2011 2013 2014 2015 2016 2017 2018 2019 20202012

Handymax VLBC

Capesize Handysize

Panamax

Some positive developments are taking shape on the supply side

VLBC* > 210.000 dwt Capesize 100-210.000 dwt Panamax 65-100.000 dwt Handymax 40-65.000 dwt Handysize 10-40.000 dwt

*contains Ore Carriers (avg 250.000 dwt)

DNV GL © 2013

Bulk Carriers | Prices & Chartering

23

shipyards have started to retreat.

Capesize newbuilding price is now down to 50M USD compared

to 54M USD four month ago. Resale value and 5 year old prices

started to fall as well, reaching 47M USD and 33M USD

respectively in May. In secondhand sales, activity continues to

gain ground, with a lot of interest gathering around fairly modern

and resale capesizes. In general though there are still a number

of owners that seem to be finding it difficult to cope with the new

price reality being made every day. And although price drops

have slowed in May compared to what was being witnessed at

the beginning of the year, there still seems to be room for

further discounts. 5 year old capsizes are now priced at 34M USD

and 5 year old panamaxes at 17M USD.

.000 USDper day

MillionUSD

Spot capesize rates averaged 3,000 USD/day in March and went

as low as 2,625 USD/day on the 27th of March. This is almost

half of the rates seen at the end of 2014. The Panamax spot

rates started the year at 5,718 USD/day, went below 4,000

USD/day in March but are now up to 4,438 USD/day. Anaemic

demand growth is here to stay, especially as the trade

development in coal and iron ore into China is expected to

decline further. Hence, no noticeable recovery in freight rates

should be expected this year. We may see some improvement in

earnings through 2016 but this is unlikely to be sufficient for

reaching breakeven.

With banks reluctant to finance dry bulk newbuildings, in the

back of the market’s worst performances in decades and ship

owners finding it hard to justify such moves, prices offered from

ONE YEAR TIME CHARTER RATES NEWBUILDING & SECOND HAND PRICES

����

60

100

80

0

40

20

120

2007 2011 2012 2013 2014 20152008 20102009

Handymax

Handysize

Capesize

Panamax

0

100

80

60

120

40

20

2009 2010 2011 2012 2013 2014 201520082007

Capesize

Handymax (61K)5 yrs Cape

Panamax

5 yrs P’max

61K Resale Prices

Dry bulk freight rates at abysmal levels and newbuilding prices started to fall

DNV GL © 201324

Benefiting from China’s leading role in the shipbuilding industry

and the ordering boom in the mid-2000, Chinese designers have

come into the spotlight and are now indispensable partners to

Chinese shipbuilders. If we look at the current orderbook of bulk

carriers in China by design (data coverage of around 83%),

foreign designs account for only 20,6% in May 2015.

Chinese “state-owned” designers are dominating the dry bulk

orderbook in China, accounting for around 56% of orders and are

adopted by both state-owned and private yards. They provide a

wide range of designs, though most orders are in the handymax

sector, where SDARI provides the ‘Dolphin 64’ ultramax and in

the panamax sector with SDARI ‘KMAX 82’ kamsarmax design.

SDARI alone, accounts for 50,5% of all orders, across 38 yards.

Chinese “yards affiliated” designers, which are linked to

particular yards, have the tendency to focus more on the bigger

sectors, with the larger yards more likely to take orders for the

bigger units. Around 49,2% of bulkers currently on order and

linked to Chinese yards designers are capesizes and 30% are

VLBC. Shanghai Waigaoqiao, which has the largest capesize

orderbook globally, has adopted its own design. As Chinese

yards build their brands they tend to improve their design

capabilities by setting up their own designs. Yangzijiang Group

has acquired designer CS Marine, while AVIC group has bought

foreign designer Deltamarin.

����

Bulk Carriers | Designs in China

DRY BULK ORDERBOOK IN CHINA BY DESIGNER

ORDBOOK AT CHINESE STATE OWNED DESIGNER

A look at the dry bulk orderbook in China by designer

0 100 200 300 400 500 600

Number

Unknown 171

Chinese private 9

Chinese yard affiliated 63

Foreign 210

Chinese state owned 567

VLBCCapesizePanamaxHandymaxHandysize

91,7%

CSDC (36 orders at 4 yards)

SDARI (520 orders at 38 yards)

6,3%1,9%

MARIC (11 orders at 2 yards)

DNV GL © 2013

DNV GL © 2013

Executive Summary| Offshore

26

than a thousand rig years back in 2012 FY.

The number of scheduled deliveries for 2015 is as high as 880

vessels. It is 150 more than a record high number in 2010. Due

to weaker market, it is expected that slippage and cancellations

will be extraordinary. Most of the units under construction do not

have fixed contract, consequently going straight to lay-up.

Increased scrapping will play a major role in the fleet growth

reduction. As much as 32 floaters have already been announced

for scrapping this year.

A weak rig market combined with fewer rig movements has

really started to affect the OSV fleet. Lay-ups and reduced rates

have been announced in all regions. As many as 48 OSVs are

already laid up at the NCS.

Offshore contracting has nearly gone into a grinding stop. So far

there have been only 109 offshore contracts signed. The MOU

segment has been hit the hardest. The OSVs sector, despite

lower activity has so far performed better than expected.

Todays market is quite challenging, but still seems to be

manageable. Most units are on long term contracts and

seasonable maintenance makes contractors fairly busy. As

contracts end and new initiatives are put on hold, it is expected

to be even more depressing times ahead.

The offshore market continues to struggle as demand for rigs

and OSVs has collapsed and oversupply rises. The industry does

what it can to adopt to the new environment, with the help of

severe cost cuts and lay-ups.

Most figures are on a sharp decline. Some units have

experienced the day-rates being cut by 50%. Utilization rates

have been weakening since the beginning of 2014. The average

rate for drilling units stands at 82%. That’s down from 91% in

just 12 months and even lower than after the financial crises.

Fixing activity has also fallen. Just 135 rig years have been

contracted ytd. (Rig year: number of units ordered multiplied by

the individual length of the contract). Quite a drop from more

It will get worse before it gets better…����

OFFSHOREOFFSHOREOFFSHOREOFFSHORE

The PSV NAO Protector

(former Blue Protector).

Delivered from Ulsteinvik in 2013.

Owned by NAO.

Classed by DNV GL.

DNV GL © 2013

Crude oil price has stabilized around $65/bbl. A solid increase

since the 2015 lowest level of $45,13 bbl (Jan 13th).

Global oil supply remains at a steep 3,2 mbd y-o-y. Reaching as

much as 95,7 mbd. It is mostly driven by a very high production

from the OPEC countries (31,21 mbd).

Global demand is projected at 1,1 mbd for 2015, reaching 93,6

mbd. Cold winter and steadily improving global economic growth

have been the main drivers.

Global offshore E&P are declining. Rystad Energy, a fast growing

consultancy company, expects that expenditures will continue to

fall until 2018.

Floaters utilization factor remains weak. Ultra-deep water

utilization rates have decreased to 88%. The jack ups have

declined to 85% for the large units and 75% for the small ones.

Fixing activity continues to be slow. There has been only 9

floaters and 22 jack-ups fixtures signed year to date, mostly

short term contracts. There has been a small boost during the

past weeks as contracts are renegotiated and extended. Three

contracts are also up for bidding in Norway with a value of up to

5 billion NOKs (Johan Sverdrup, Maria and Viper-Kobra). On the

other hand, termination of contracts are a hot issue. Petrobras

has as an example just terminated all five Schahin rigs, Pemex

has terminated several contracts as well. Low fixing activity and

many terminations making the total demand for rigs weak.

%

Rig years

Less rigs at work����

Offshore | Demand

DRILLING UTILIZATION

GLOBAL FIXING ACTIVITY

800

200

600

400

1.000

20132011 20152005 2007 2009

Jack-upFloater

70

75

80

85

90

95

100

201020092008 20152014201320122011

Jack-Up <300ft MDU average

Jack-Up >300ftFloaters

27

DNV GL © 2013

Number of scheduled deliveries in 2015 remains record high. As

many as 880 vessels and units are up for delivery. Most likely

around 30% will not be delivered this year. Weak market is to be

blamed, however slippage and cancellations will bring some

“relief”. The first agreements between owners and yards for

postponed deliveries have been signed. Many more are

expected to come through.

For the first time in history, removals have started to accelerate

in the drilling segment. At the end of May 2015 as many as 32

floaters have been announced for scrapping.

Offshore contracting is expected to be low for in the coming

years. Weak demand, large orderbook and high level of

uncertainty will have a strong cool-down effect on the new

building market. Owners have more focus on cost-cutting than

expanding their fleets. During 2015 just three MOUs have been

contracted (only one drilling unit). The OSV fleet has performed

quite well, bearing the market situation. Globally, 106 vessels

have been contracted ytd. PSVs and AHTs have the largest share

with 39 and 38 contracts each.

The contracting is expected to gain momentum in the coming

years as market players start to position for the next up-cycle as

well as for the necessary replacement of the older tonnage.

Nevertheless, the oil price will dictate the future level of activity.

No. ofvessels

No. ofvessels

Record high level of slippage and cancellations����

Offshore | Supply

(EXPECTED) DELIVERIES & REMOVALS

(EXPECTED) CONTRACTING

700

600

500

400

300

200

100

20202019201820172016201520142013201220112010

OSVMOU

300

200

100

0

-100

-200

700

600

500

400

201820172016201520142013201220112010 2019 2020

OSVMOU

28

DNV GL © 2013

The MOU fleet comprises of 1800 units. Drilling segment

represents the major part, with a fleet of around 900. Scrapping

and slippage will slow down the fleet growth for the MOUs. The

short term growth is expected to be around 4% after which it

drops to less than 3% per year.

The drilling fleet is old, despite high level of deliveries in the

recent years. As many as 416 units are more then 30 years old

(70 more than 40 years old), thus potential for scrapping is high.

As the investment for a renewal of MOUs is quite significant

scrapping becomes more and more an option nowadays.

Number of drilling units without an employment rises. Since

January the total number of unemployed units have increased

from 262 to 298.

The OSV fleet consists of 9600 vessels and growing by 4% per

annum. AHTS and PSVs are the two largest segments with 3000

and 4000 vessels respectively.

Activity level is soft in all regions. GoM deep-water activity has

decreased to 51 active drilling units (down from 54). Vessel

freight rates have decreased as well. In Africa, the oil major

Total drives most of the very few tenders in the region. North

Sea Area has seen falling rates as well. The over supply is not

going to change anytime soon, as the demand is still very

limited. Only the SEA region sees some improvement as

tendering has picked up slightly.

No. ofvessels

X 1.000vessels

Fleet development reduced by scrapping, slippage and cancellations

����

Offshore | Supply

MOU - FLEET DEVELOPMENT

OFFSHORE SUPPORT VESSELS – FLEET DEVELOPMENT

2.500

2.000

3.000

1.000

1.500

0

500

20162011 20182014 2015

2,3%

2,1%

2013

2,7%

2020

4,3%

2019

4,1%

2012 20172010

12

10

8

6

4

2

0

201720162015 2020201920182013201220112010 2014

Platform Supply vesselsOSV - OtherAHTS

Well Intervention

Accommodation

Construction/ Maintenance

Production/ Storage

Drilling

29

DNV GL © 2013

Offshore | Prices & Chartering

Newbuilding prices seem to be unaffected so far. OSVs have

started to see a small decline. The orderbook for yards and

equipment manufacturer is still high, but this will not continue

for much longer.

Second hand prices have been hit much harder. Especially the

old drilling units. A 6th generation floaters second hand price has

dropped by 30% since 2012, 3rd generation has dropped with as

much as 70% in the same period!

The story is a bit different for old production units. Some years

ago operators were mainly building new, modern and purpose

built floating production units. Today they are often requesting

older and more cheaper solutions.

.000USDPer day

MillionUSD

Charter rates continue to fall. It’s a buyers market. Very few new

fixtures are being announced and many of the ongoing charters

are up for renegotiations. Some of the drilling contracts signed

this year have seen up to 50% of the discount:

- For the drillship Metro 1 a contract was signed in May 2013 for

18 months at 676,000USD a day. Just recently for the same unit

a contract was signed for 20 weeks at the rate of 285,000 USD a

day.

- Ocean Rig Olympia was signed for 580.000 USD a day in 2012.

The same unit has now signed an 8 month contract in Angola for

380,0000 only.

TIME CHARTER RATES NEWBUILDING PRICES

���� Charter rates on decline; contracts renegotiated

1.000

800

600

400

200

0

140

120

100

80

60

40

20

0

20152014201320122011201020092008

900

800

700

600

200

100

0

20152014201320122011201020092008

PSV

AHTS

Drillship

Semi-sub

Jack-Up

PSV 4,000 dwt

AHTS 240t BP

FloaterSE Asia UDW

Floater Sth America UDW

FloaterGoM UDW

30

DNV GL © 2013

FOCUS ON CRUISE SHIPS AND MULTI PURPOSE VESSELS

DNV GL © 2013

By 2022, the worldwide cruise industry is expected to have a

capacity to carry more than 30 million passengers, compared to

22 million this year. While this growth rate appears to be very

high, the industry grew by about the same percentage over the

past seven years from 2008 to 2015.

The growth of the (now) mature markets of North America and

Europe has slowed down naturally and the cruise lines are

looking towards the Asia-Pacific for future growth. There is a

special focus on China, which has to generate 5.0 million

passengers yearly by 2022 to fill the fleet, according to the

Cruise Industry News Annual Report 2015-2016.

Travel operators in China are increasingly targeting elderly and

retiring citizens, a fast-growing and important segment of the

country’s expanding domestic tourism market.

CRUISE VESSELSCRUISE VESSELSCRUISE VESSELSCRUISE VESSELS

Focus on | Cruise vessels

China’s population of residents age 60 and above already

amounts to more than 200 million, and is expected to account

for a third of the population by 2050. China’s cruise ship industry

is expected to expand to 4.5 million passengers a year by 2020,

making it the world’s largest cruise market after the USA.

So far in 2015, only one cruise ship newbuilding project was

signed. Royal Caribbean Cruises Ltd. (USA) and Meyer Werft

agreed to build a fourth Quantum-class ship for delivery in spring

2019. For the full year 2015, a total of 14 new contracts are

expected.

One of them could be Virgin Cruises. According to Italian

sources, they are closing in on an agreement with Italian

shipbuilder Fincantieri to build two large cruise ships. The Italian

yard is in competition with Meyer Werft in Papenburg, Germany

for the order of two large 170,000 GT vessels.

For the 2015-2020 period, yearly contracting levels are expected

to reach around 15 vessels per year. As a result of the upturn in

newbuilding contracting during the last two years, deliveries are

predicted to peak to 2.1mGT in 2018, compared to an average

yearly delivery volume of 1.0mGT in the 2015-2017 period.

The worldwide fleet is expected to grow from an average of 3.0%

per year in the 2011-2014 period to yearly 6% for the 2015-

2020 period (based on GT), as a result of the trend towards

cruise vessel upsizing.

���� Strong future fleet growth to keep up with expected passenger growth

32

DNV GL classed “Pearl Mist” (2015), owned by Pearl Seas Cruises, sails

on The Great Lakes, Panama Canal, Costa Rica and the Boston area.

DNV GL © 2013

MULTI PURPOSE VESSELSMULTI PURPOSE VESSELSMULTI PURPOSE VESSELSMULTI PURPOSE VESSELS

Focus on | Multi Purpose Vessels

MPV operators that were relying on cargoes coming from the

energy sector still suffer as well, because a lot of projects in the

oil & gas sector were put on hold.

The first positive sign for the MPV sector comes from the

projection that tonnage demand is expected to increase 5% per

year for the 2015-2019 period (with a bit lower growth for this

and next year, and after that expected to pick up to 5% per

year). Secondly, the MPV fleet is not expected to show any

significant growth for the 2015-2020 period (based on DWT-

capacity). This is the result of a longer period with relatively low

newbuilding contracting and constant vessel scrapping activity.

For the 2015-2020 period, newbuilding contracting levels are

expected to average 2.1mDWT per year. For the current year

and next year, somewhat lower levels are expected. Since the

fleet demolition rate is foreseen around the same level

(2.1mDWT per year), fleet growth will be marginal.

Regarding the outlook for MPVs, it is the global economic

development as well as the state of the containership- and dry

bulk sectors that determine the demand for MPVs. Global

economic activity triggers infrastructural projects and with these

projects, the demand to transport the materials arises. Besides

infrastructural projects, MPVs also hope to benefit from further

expansion projects in the wind energy sector.

Almost half way into the year 2015, there are first positive signs

from market players about the outlook for multi purpose vessels.

It is no longer expected that 2015 will bring “the turnaround” for

the sector, but compared to the last couple of years the situation

is somewhat better.

At the same time, vessel earnings are still below levels that are

sustainable for the future. For that reason, there are more and

more initiatives where owners form alliances, or start to

cooperate in another form.

What has been unchanged, is that MPVs still experience strong

competition from container vessels and smaller bulk carriers for

breakbulk cargoes. With the markets down in both the dry bulk

market and the container vessel segment, MPVs are hit from

both sides.

���� Demand for MPVs expected to increase, but still weak market conditions

33

DNV GL classed, “AAL Newcastle” (2014), 32,000 dwt

DNV GL © 2013

SAFER, SMARTER, GREENER

www.dnvgl.com

The Trend Report is published by the Sales & Market Intelligence department.

Contact persons for the respective chapters are:

Market summary, Oil & Product Tankers Jakub Walenkiewicz

Containerships, MPVs, Cruise vessels Jeffrey van der Gugten

Bulk Carriers Pierre Pochard

Offshore (Oil & Gas) Viktor Sinding-Larsen

Philipp Westphal

Head of Sales & Market Intelligence

Business Development / Business Support

Email: philipp.westphal@dnvgl.com

Telephone: +49 40 36149 6197