Containership Sector Snapshot

May 2015

Clarkson Containers

May 2015 www.clarksons.com

www.clarksons.com
 Containership Markets Today
200 Charter Rate Index (LHS) 1,600
S/H Price Index (LHS)
CCFI (RHS)
160 1,400

120 1,200

80 1,000

40 800

0 600
Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15
Source : CRSL, SSE
Recent Increases

April 2015 www.clarksons.com 2

 Containership Charter Rates
Containership Charter Rates

60 $000/day 2000 teu grd 1-Yr TC

3500 teu gls 1-Yr TC
50
4400 teu gls 1 Yr TC
6600 teu gls 3-Yr TC
40
9000 teu gls 3-Yr TC

30

20

10

0
Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15
Source : Clarkson Research Services

May 2015 www.clarksons.com 3

 Containership Secondhand Prices
Containership Secondhand Prices

140 US$m 2750 teu 10yo

700

120 3500 teu 10yo 600

6600 teu 5yo
100 500
8800 teu 5yo
80 400
demo $/ldt (RHS)
60 300

40 200

20 100

0 0
Jan-97

Jan-98

Jan-99

Jan-00

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15
Source : Clarkson Research Services

May 2015 www.clarksons.com 4

 Idle Containership Capacity
mill TEU
1.6 100%

% charter owned 90%

1.4
80%
1.2
70%
1.0
60%

0.8 50%

40%
0.6
30%
0.4
20%
0.2
10%

0.0 0%
Oct-08

Nov-09

Nov-10

Apr-11

Oct-11

Sep-12

Dec-12

Apr-13

Aug-13

Dec-13

Nov-14
Jun-09

Jun-10

Jan-12

May-12
Mar-09

Mar-10

Mar-14

Mar-15
Jul-14
Source : Clarkson Research/AXS

April 2015 www.clarksons.com 5

 Comparative Charter Market Performance
Charter Rate Performance, end Mar 2015 vs start 2014

6800 teu gls

4400 teu gls

3500 teu gls

1. Relative sector performance
2750 teu gls
related at least partially to the
development of the cascade.
2500 teu grd
2. Panamaxes led improved rate
2000 teu gls environment.

1700 teu grd 3. Upward pressure moving into

Sub-Panamax range.
1000 teu grd

725 teu grd

-10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Basis 6-12 month TC, 3 yr TC for 6800 teu

May 2015 www.clarksons.com 6

 Cascading Trends
% of TEU Deployed on Trade Lane  Likelihood of further slowdown
in cascading
80%
 Re-Deployment of Panamaxes
70%
into regional trades may have
60% run most of its course.
50% 3-8k TEU share of North-South  Physical dimensions,
40%
3-8k TEU share of Intra-Regional operational concerns on intra-
1-3k TEU share of Intra-Regional
regional trades ?
30%
 Lack of need to cascade from
20%
medium size sectors due to
10% trade growth ?
0%  Exhaustion of cascadable
Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jul-14
Jan-08

Jan-12
Jan-06

Jan-07

Jan-09

Jan-10

Jan-11

Jan-13

Jan-14

Jan-15

capacity e.g. FE-Europe ‘micro

Source : Clarkson Research Services
market’ ?

May 2015 www.clarksons.com 7

 2013-16 Boxship Fleet Growth
Containership Fleet Capacity Growth 2013-16

40%
Significant fleet growth above
2013
8,000 TEU, not so much
2014
elsewhere.
30%
2015f

2016f

20%

10%

0%

-10%
100-2999 TEU 3000-7999 TEU 8000-11999 TEU 12000+ TEU

May 2015 www.clarksons.com 8

 Containership Charter Rates & Orderbook
Index OB as % of Fleet
200 70%
Containership Charter Rate Index (LHS)
180 Orderbook % Of Fleet (RHS)
60%
160

140 50%

120
40%
100
30%
80

60 20%
40
10%
20

0 0%
Jan-96

Jan-97

Jan-98

Jan-99

Jan-01

Jan-02

Jan-03

Jan-04

Jan-05

Jan-06

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-15
Jan-00

Jan-07

Jan-14
Source: Clarkson Research Services

May 2015 www.clarksons.com 9

 Average Period of Charter Market Fixtures
months $/Day
60 50,000

50 Average Fixture Period

40,000
2500 TEU grd 6-12m TC Rate

40
30,000

30

20,000
20

10,000
10

0 0
Jan-03

Jan-04

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Jan-14

Jan-15
May 2015 www.clarksons.com 10
Disclaimer

The information supplied herewith is believed to be correct but the accuracy thereof is not guaranteed and the Company
and its employees cannot accept liability for loss suffered in consequence of reliance on the information provided.
Provision of this data does not obviate the need to make further appropriate enquiries and inspections. The information
is for the use of the recipient only and is not to be used in any document for the purposes of raising finance without the
written permission of Clarkson Research Services Limited.

The statistical and graphical information contained herein is drawn from the Clarkson Research Services Limited
("CRSL") database and other sources. CRSL has advised that: (i) some information in CRSL's database is derived from
estimates or subjective judgments; and (ii) the information in the databases of other maritime data collection agencies
may differ from the information in CRSL's database; and (iii) whilst CRSL has taken reasonable care in the compilation
of the statistical and graphical information and believes it to be accurate and correct, data compilation is subject to
limited audit and validation procedures and may accordingly contain errors; and (iv) CRSL, its agents, officers and
employees do not accept liability for any loss suffered in consequence of reliance on such information or in any other
manner; and (v) the provision of such information does not obviate any need to make appropriate further enquiries; (vi)
the provision of such information is not an endorsement of any commercial policies and/or any conclusions by CRSL;
and (vii) shipping is a variable and cyclical business and any forecasting concerning it cannot be very accurate.

May 2015 www.clarksons.com 11