Statistical Publications

Shipping Statistics And Market Review 2017 Volume 61 - No. 4

Analytical Focus

World Merchant Fleet World Market World Bulk Carrier Market World Container and General Cargo Shipping World Merchant Fleet by Ownership Patterns World Passenger and Cruise Shipping/ ISL Cruise Fleet Register World Shipbuilding and Shipbuilders Major Shipping Nations World Seaborne Trade and World Port Traffic

Institute of Shipping Economics and Logistics ISL Shipping Statistics and Market Review (SSMR) Volume 61 - 2017

Published and distributed by: ISL Institute of Shipping Economics and Logistics Universitaetsallee 11-13 28359 Bremen, Germany

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ISL SSMR Vol. 61 2017 - Single issues online version No. 1/2 World Merchant Fleet 125.- € No. 3 World Tanker Market 95.- € No. 4 World Bulk Carrier Market 95.- € No. 5/6 World Container and General Cargo Shipping 160.- € No. 7 World Merchant Fleet by Ownership Patterns 95.- € No. 8 World Passenger and Cruise Shipping 130.- € No. 9/10 World Shipbuilding and Shipbuilders 95.- € No. 11 Major Shipping Nations 95.- € No. 12 World Seaborne Trade and World Port Traffic 160.- €

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© ISL Institute of Shipping Economics and Logistics, Bremen, 2017

All rights reserved. No parts of this publication may be reproduced or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or any information storage or retrieval system without permission in writing from the editors. The editors do not guarantee the accuracy of the information contained in „ISL Shipping Statistics and Market Review (SSMR)” nor do they accept responsibility for errors or omissions of their consequences. Volume 61 (2017) No 4 - 2017 ISSN 0947 - 0220

published 9 times per year (double issues Jan./Feb., May/ June. and Sept./ Oct.)

Shipping Statistics and Market Review

Analytical Focus

World Bulk Carrier Market

ISL Comment ...... 3 ISL Statistical Tables ...... 9

Market Review

Economic Indicators ...... 35 World Merchant Fleet ...... 38 Freight and Charter Market ...... 41 Shipping Prices and Costs ...... 53 World Shipbuilding ...... 54 World Port Traffic ...... 56

Institute of Shipping Economics and Logistics Abbreviations/Symbols www.isl.org

Abbreviations n.a. Not available NDRF National Defence Reserve Fleet ARA Antwerp/Rotterdam/Amsterdam range n.e.c. Not elsewhere classified AWES Association of West European Shipbuilders neg. Negligible b/d Barrels per day NIS Norwegian International Ship Register BHP Brake horsepower no Number cgt Compensated gross NODC Non-oil Producing Developing Countries cif Cost, insurance, freight nrt Net register tonnage CIS Commonwealth of Independent States nt COD Country of Domicile NWE,NW Northwest Europe CPE Centrally-planned Economies o.a. Over all CPI Consumer price index OBO Ore/bulk/oil carrier cST Centi Stokes OECD Organization for Economic cu.m Cubic metres (also m3) Cooperation and Development DB Double bottom O/O Ore/oil carrier DC Developing Countries OPEC Organization of Petroleum DH Double Exporting Countries DIS Danish International Ship Register OR Ordinary Register DME Developed market economies P/C Products carrier DS Double sides Pr/OBO Product/ore-bulk-oil carrier dwt Deadweight r Revised d/y Day/year Ro/ro Roll-on/roll-off ECB European Central Bank RT Revenue EMEs Emerging Market Economies SAR Special administration region EU European Union SBT Ship segregated ballast tanks FY Fiscal year SDR Special drawing rights FAO Food and Agriculture Organization SSMR ISL Shipping Statistics and Market Review of the United Nations ST Short ton fio Free in and out t Ton/tonne fob Free on board TB Tug/barge FT Freight tons TEU Twenty feet equivalent unit ft Foot TKB Tanker barge GATT General Agreement on Tariffs and Trade T/S Tanker/steam gt T/T Tanker/turbine HP Horsepower ULCC Ultra large crude carrier HT Harbour ton USAC United States Atlantic Coast ibf Intermediate bunker fuel USD US Dollar IEA International Energy Agency VLCC Very large crude carrier IMF International Monetary Fund WS Worldscale IMO International Maritime Organization WTO World Trade Organization in. Inch YR, YRS Year, Years ITF International Transport Workers Federation km Kilometre loa Symbols lbs Pounds ... Data not available LDT Light tons - Nil LDC Less Developed Countries 0/0.0 Less than half of unit employed LNG Liquefied Natural Gas 1995-2004 From 1995 to 2004 inclusive LPG Liquefied Petroleum Gas 2002/03 Crop year, fiscal year etc., beginning LT Long ton in 2002 and terminating in 2003

m Metre Billions means a thousand million mbd Million barrel per day Detailed items in tables do not necessarily add to totals mdo Marine diesel oil because of rounding MED Mediterranean MfA Marine fishing area mill Million M/T Motor tanker MT Metric tons mtd per ton fob delivered mth Month For further explanation (e.g. Glossary) mtw Per ton ex wharf please visit: www.isl.org/infoline

2 SSMR April 2017 Contents – Comment and Statistical Tables www.isl.org

Page ISL Comment – World Bulk Carrier Market 5-8

Global dry bulk trade in 2016 ...... 5 Dry bulk fleet developments in 2016 ...... 5 Period rates for bulk carriers ...... 7 Outlook ...... 7

SUMMARY TABLES - COMMENT Tab. 1 Bulk carrier fleet by type as of January 1st, 2015 - 2017 ...... 5 Tab. 2 World Bulk Carrier Fleet Reductions by Type 2014 - 2016 ...... 6 Tab. 3 World Bulk Carrier Fleet: Deliveries by Type 2014 - 2016 ...... 6 Tab. 4 World Bulk Carrier Fleet and Order Book by size as of January 1st, 2017 6 Tab. 5 Demolition and Contracting Prices of Bulk Carriers 2012-2016 6

FIGURES - COMMENT Fig. 1 World Seaborne Dry Bulk Trade 2010-2016 ...... 5 Fig. 2 World Bulk Carrier Fleet – Annual Tonnage Changes 2008-2017 .... 6 Fig. 3 Time Charter Rates for Bulk Carriers Jan. 2015 - March 2017 ...... 10 Fig. 4 World Bulk Carrier Fleet Deliveries and New Orders 2006 - 2016 .... 7 Fig. 5 Development of Iron Ore and Coal and Wheat Export Prices 2011-2017 6 Fig. 6 World Steel Production by Area 1997 - 2017 ...... 5 Fig. 7 Chinese Seaborne Dry Bulk Imports 2010-2016 ...... 5 Fig. 8 World Steel Production by Top Countries First Quarter 2017 ...... 5 Fig. 9 Quarterly Iron Ore and Coal Traffic of Major Exporting Ports by Region 6

ISL Statistical Tables– World Bulk Carrier Market 9-32

(1) TOTAL BULK CARRIER FLEET 1.1 Key Figures on World Bulk Carrier Fleet by Type and Size Class 2017 9 1.2 World Bulk Carrier Fleet Development by Type 2008 - 2017 ...... 10 1.3 Total Bulk Carrier Fleet by Ownership Patterns ...... 11 1.3.1 Total Bulk Carrier Fleet by Major Flags 2016 and 2017 ...... 11 1.3.2 Bulk Carrier Fleet by Country of Control as of January 1st, 2017 ...... 12 1.3.3 Bulk Carrier Fleet by Year of Build and Type as of January 1st, 2017 ... 13 1.3.4 Total Bulk Carrier Fleet by Registered Flag and Country of Control According to Regions and Type 2017 and 2017 ...... 14 1.3.5 Total Bulk Carriers by Country Groups and Division of Age 2017 ..... 15 1.3.6 Total Bulk Carriers Additions to Fleet by Top Countries of Control .... 15 1.3.7 Total Bulk Carriers by Size Class and Division of Age and Order Book up to 2017 ...... 16 1.3.8 Total Bulk Carriers Fleet - Size Dimensions 2017 ...... 16

SSMR April 2017 3 ISL Statistical Tables– World Bulk Carrier Market 9-32

(1) TOTAL BULK CARRIER FLEET (CONTINUED) 1.4 Broken-up Bulk Carriers ...... 17 1.4.1 Broken-up Bulk Carriers by Type January 2006 - December 2016 ... 17 1.4.2 Broken-up Bulk Carriers by Major Flags 2006 - 2016 ...... 17 1.4.3 Broken-up Bulk Carriers by Size Class 2006 - 2016 ...... 17

(2) BULK MARKET - SHIPPING COSTS AND PRICES 2.1 Second Hand Prices of Bulk Carriers, Average Values 2006 - 2016 .. 18 2.2 Contracting Prices for Newbuildings 2006 - 2016 ...... 18 2.3 Demolition Prices 2006 - 2016 ...... 18 2.4 Demolition Prices by Area 2006 – 2016 ...... 18

(3) BULK MARKET - COMMODITIES, SEABORNE TRADE, PORTS Commodities 3.1 Coal Production and Consumption ...... 19 3.1.1 World Coal Production by Country 2006 - 2015 ...... 19 3.1.2 World Coal Consumption by Country 2006- 2016 ...... 20 3.2 World Iron and Steel Production ...... 21 3.2.1 World Pig Iron Production by Selected Countries 2007 - 2016 ...... 21 3.2.2 World Crude Steel Production by Country 2007 - 2016 ...... 22 3.3 World Total Grain Production and Trade ...... 23 3.3.1 Production of Grain by Region and Selected Countries 2007 - 2016 . 23 3.3.2 Import of Grain by Region and Selected Countries 2007 - 2016 ...... 24 3.3.3 Export of Grain by Region and Selected Countries 2007 - 2016 ...... 24 Seaborne Trade 3.4 Seaborne Iron Ore Trade 2007 - 2016 ...... 25 3.4.1 By Leading Exporting Country 2007 – 2016 ...... 25 3.4.2 By leading Importing Country 2007 – 2016 ...... 25 3.5 Seaborne Coal Trade 2007 - 2016 ...... 25 3.5.1 By Leading Exporting Country 2007 – 2016 ...... 25 3.5.2 By Leading Importing Country 2007 – 2016 ...... 25 Ports 3.6 World Dry Bulk Ports ...... 26 3.6.1 Selected Major World Coal Ports - Traffic 2011 - 2016 ...... 26 3.6.2 Selected Major World Iron Ore Ports - Traffic 2011 - 2016 ...... 27

(4) FUTURE BULK CARRIER TONNAGE SUPPLY- WORLD BULK CARRIER ORDER BOOK 4.1 Existing Bulk Carrier Fleet by Type and Major Areas of Build 2017 ... 28 4.2 Bulk Carrier Order Book and New Orders by Type 2012 – 2017 ...... 29 4.3 Order Book by Major Countries of Build and Type 2017 ...... 29 4.4 Bulk Carriers on Order by Size Class and Country of Build 2017 ...... 30 4.5 Bulk Carriers on Order by Countries of Build and Delivery Schedule 30 4.6 Bulk Carriers on Order by Ship Yard and Delivery Schedule 2017 .... 30 4.7 Additions to the Bulk Carrier Order Book by Type and Major Countries of Build 2011 - 2016 ...... 31 4.8 Additions to the Bulk Carrier Order Book by Type and Major Countries of Control 2011 - 2016 ...... 32

4 SSMR April 2017 Comment - World bulk carrier fleet www.isl.org

Dry bulk earnings: light at the end of the Fig. 1: World seaborne dry bulk trade 2010-2016 tunnel? 5500 Dry bulk earnings recovered from miserable levels to poor levels during 2016. After having taken a beating during 5000 2015, when the anticipated market growth failed to show while at the same time, the fleet continued to expand, the 4500 earnings of dry bulk carriers started the year 2016 at rock- bottom levels. During said year however, trade growth 4000 gained momentum and fleet expansion was reduced Million tons significantly as the massive scrapping activity seen in the 3500 previous year persisted and ship deliveries were delayed in large amounts. This allowed for a gradual recovery of 3000 charter rates – albeit to levels still unsatisfactory for 2010 2011 2012 2013 2014 2015 2016 owners (unless maybe they did acquire the ships in a “fire est. sale” without any borrowed money involved). Source: ISL 2016 based on Clarksons Reseach Services Limited (CRSL)

Resulting from the poor earnings, contracting was more Fig. 2: World bulk carrier fleet – annual tonnage changes as of January or less nonexistent in 2016 with the only noteworthy 1st, 2008 - 2017 (dwt- per cent) 17.0 order being a series of VLOCs which already accounted 18.0 for 12 million dwt out of the 13 million dwt capacity ordered in total. As a result, the orderbook-to-fleet-ratio 15.0 13.7 11.1 fell to the lowest level for years at the start of 2017. In the 12.0 first months of 2017, period earnings continued to rise 8.9 9.0 7.2 suggesting that market participants were carefully 6.3 5.8 optimistic about the future. 6.0 4.6 2.4 3.0 1.9 Iron ore trade gives new impetus to global dry bulk trade 0.0 -3.0 The seaborne trade of dry bulk commodities picked up 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 momentum in 2016 after the standstill experienced in Source: Up to 2011 based on IHS Fairplay, since 2012 on Clarkson Research Services Limited (CRSL). Please see disclaimer 2015. According to recent Clarkson Research Services Limited (CRSL) estimates, trade volumes increased by 1.3 per cent, reaching 4.9 billion tons in 2016. The revived Tab. 1: Bulk carrier fleet by type as of January 1st, 2015 - 2017 iron ore trade (+3.4 per cent) contributed a great deal to % change this growth especially since Brazilian exporters gained 2015 2016 2017 over Average size market share and thus ton-mile demand grew noticeably mill mill mill prev.year (1000 dwt) faster. It is worth mentioning that according to the CRSL Ship type No dwt No dwt No dwt No dwt 2015 2017 estimates China now is the first country to ever have Bulk carrier 9381 660.4 9541 674.4 9752 693.0 2.2 2.7 70.4 71.1 imported one billion of a single dry bulk commodity in a Ore carrier 229 61.4 233 62.9 235 63.0 0.9 0.2 268.3 268.0 given year. CRSL’s latest Dry Bulk Trade Outlook Other bulk carrier 1086 16.8 1145 15.6 1152 15.1 0.6 -3.1 15.5 13.1 suggests that seaborne iron ore imports into the People’s Total 10696 739 10919 753 11139 771 2.0 2.4 69.1 69.2 Republic of China exceeded 1,000,000,000 tons per Source: Based on Clarkson Research Services Limited (CRSL). Please see disclaimer annum for the first time in 2016. The analysts from Drewry Shipping Consultants (which Fig. 3: Time charter rates for bulk carriers Jan. 2015 - Mar. 2017 18,000 report a different total dry bulk trade volume) computed a 53k dwt 75k dwt 170k dwt 180k dwt 2.4 percent trade growth as well as 3.5 per cent growth in 16,000 ton-mile demand for 2016. 14,000 Looking ahead, CRSL’s latest estimate for the growth of the seaborne dry bulk stood at 2.5 percent. If this pans out 12,000 as forecast, total dry bulk trade would surpass the 5 billion tons per annum mark for the first time ever in 2017. 10,000 US$ per per day US$

Dry bulk carrier deliveries constant since 8,000

2014 6,000

At the start of 2017, the dry bulk fleet had grown to reach 4,000 11,139 units with an aggregated capacity of 771 million dwt. In terms of number and capacity, this equalled a Source: ISL 2017 based on Fearnleys, data at end of the month growth of 2.0 per cent or 2.4 per cent respectively in 2016.

SSMR April 2017 5 Comment - World bulk carrier fleet www.isl.org After having expanded massively during the 2011-2013 Fig. 4: World bulk carrier fleet deliveries and new orders 2006 - 2016 period, bulk carrier deliveries have slowed down, 150 averaging more or less exactly 47 million dwt per annum deliveries contracts since 2014. As far as it is known today, during 2016, 555 100 bulk carriers with an aggregated capacity of million dwt million 46.5 million dwt have been delivered. The orderbook 50 would have initially suggested a much larger volume (90.5 million dwt), but as usual, orderbook slippage 0 occurred in large amounts. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: Up to 2010 based on IHS Fairplay, since 2012 on Clarkson Research Services As far as deliveries are concerned, a focus on particular Limited (CRSL). Please see disclaimer size ranges has been observable. The following segments have seen the most pronounced influx of new tonnage: Tab. 2: World bulk carrier fleet reductions by type 2014- 2016 handy bulkers (~38,000) dwt, supramax and ultramax 2014 2015 2016 bulkers (~ 58,000 and 62,000 dwt) as well as kamsarmax Ship type No mill No mill No mill av. ship bulkers (~82,000 dwt). of dwt of dwt of dwt age 2016 When it comes to even larger units, it seems that owners Bulk carriers 286 14.6 400 28.5 362 25.9 23.1 Ore carrier 60.961.281.8 23.6 have recently not been enticed by the larger width offered Other bulk by the new locks of the . Instead they seem carriers 14 0.4 11 0.5 12 0.4 23.9 to be appreciating the newly possible higher utilization of Total 306 15.9 417 30.2 382 28.1 the already existing “” bulkers regarding the 23.5 Average age 27.7 25.0 23.5 henceforth eased restrictions. Much unlike old panamax container ships with a of 32.2m, “old” Source: Based on Clarkson Research Services Limited (CRSL). Please see disclaimer panamax bulk carriers with a beam of 32.2 m remained Tab. 3: World bulk carrier fleet: Deliveries by type 2014 – 2016 quite popular with bulk ship investors in recent years. As a dwt-% result, many of those ships will still be delivered in the 2014 2015 2016 change near future. Ship type No of mill No of mill No of mill ships dwt ships dwt ships dwt '15/'16 Above the 150,000 dwt mark, 98 units have been Bulk carrier 537 41.6 590 44.1 533 44.4 0.8 delivered in 2016. Most of these ships have been modern Ore carrier 133.2102.7 71.8-32.3 capesize (~180,000 dwt) and newcastlemax (209,000 dwt) Other bulk designs. carrier 341.3170.3150.2-30.9 Total 584 46.2 617 47.1 555 46.5 -1.3 While 46.5 million dwt have been delivered to the fleet, scrapping of old bulkers remained high and amounted to Source: Based on Clarkson Research Services Limited (CRSL). Please see disclaimer 28.0 million dwt in 2016. This affected bulkers of all sizes Tab. 4: Bulk carrier fleet and order book by size class as of January with no segment spared or particularly active. 1st, 2017

With earnings at dirt-poor levels, the ailing yard industry Fleet Order book had a hard time sealing deals in 2016. No matter how dwt %- dwt %- brutal the pricing and the competition might have been, No of mill share No of mill share not even the lowest new building prices recorded within Size category ships dwt of total ships dwt of total the last 10 years managed to lure owners into placing < 10000 1024 3.1 0.4 10 0.1 0.1 orders in large amounts. Instead, total contracting – as is 2803 78.3 10.2 247 8.8 10.4 known today – amounted to just 52 units with an 658 30.3 3.9 22 1.0 1.2 aggregated capacity of 13.5 million dwt. 31 of those orders Supramax 1936 107.9 14.0 42 2.4 2.8 have been VLOCs amounting to 12.4 million dwt. It thus Panamax 2634 195.5 25.4 422 29.7 35.3 seems fair to state that except for this one series of ore Capesize up to 150,000 580 57.6 7.5 21 2.0 2.4 Capesize 150,000 + 1504 298.5 38.7 161 40.1 47.7 carriers, contracting of dry bulkers effectively imploded Total 11139 771.1 100.0 925 84.0 100.0 during 2016.

As a result, the bulk carrier orderbook has dwindled down Tab. 5: Demolition and contracting prices of Capesize bulk carriers to just about 84 million dwt (925 ships) at the start of 2012-2016 2017. This is the lowest orderbook-to-fleet-ratio for more % change than ten years. Theoretically, some 56.7 million dwt of this over prev. orderbook have been earmarked for delivery in 2017. 2012 2013 2014 2015 2016 year Mathematically speaking, this would lead to a supply-side Contracting prices growth of ~ 7 per cent. More likely however is that (mill US $ at end of year) 48.1 46.3 49.0 47.0 41.0 -12.8 scrapping and slippage will continue to dampen the fleet Second hand prices (10yrs) expansion and (hopefully) keep it in line with demand (mill US$ at end of year) 24.5 31.0 27.5 13.5 16.0 18.5 growth. Demolition prices (US $/Displ. t, end of year) 409.9 385.4 391.0 284.0 285.0 0.4 ISL, contracting and demolition prices based on Fearnleys, second hand prices based on Drewry, Shipping Insight

6 SSMR April 2017 Comment - World bulk carrier fleet www.isl.org Fig. 5: Development of Iron ore and Coal and Wheat export prices Upward trend for period rates in 2016 2011 – 2017 (monthly averages) 350.00 At the start of the year 2016, the time charter markets for 300.00 bulk carriers have been a mess – mildly speaking. When US$ 4,800 per day is enough to hire a 170,000 dwt ship 250.00 while US$ 5,000 per day would be required to secure a 53,000 dwt carrier for one year, something must be 200.00 horribly wrong with the supply-demand balance of the market. This massive oversupply and the resulting 150.00US$/t earnings go a long way in explaining the ~60 per cent discount for 10 year old capesize bulkers compared to the 100.00 (rock bottom) newbuilding prices. 50.00 According to a recent study by Drewry Shipping Iron Ore Price Coal, Australian thermal coal Price Wheat Consultants, operation costs for 10 year old handymax 0.00 bulkers should have been around US$ 5.000 per day during 2016. The larger capesize units probably would Source: IMF 2017, Market Prices for Non-Fuel and Fuel Commodities; Iron Ore. China import have required around US$ 7.000 per day. Neither one of Iron Ore Fines 62% FE spot (CFR Tianjin port), Coal: Australian thermal coal, FOB the two sizes thus could have been remotely comfortable Newcastle/Port Kembla; Wheat: Wheat, No.1 Hard Red Winter, ordinary protein, Kansas City, with the period rates achieved at the start of the year 2016. US$ per metric ton

However, as the year progressed, seaborne trade demand grew faster than initially anticipated and the fleet expansion continued to be subdued. Hence, the period Fig. 6: World steel production by area 1997 - 2017 (a) rates improved gradually since Spring 2016 and ended the 1800 year on higher levels for all sizes. At the end of 2016, Others CIS 1600 charterers would have had to pay US$ 6,900 per day for a North America EU 1400 handymax bulk carrier (~ 53,000 dwt) according to Asia Fearnleys while panamax bulkers (~ 70/75,000 dwt) stood 1200 at similar levels (US$ 7,000 per day). 170,000 dwt bulk 1000 carriers should have been able to secure employment for tonnes 800 ill

US$ 8,100 per day while slightly larger units with m 600 180,000 dwt were even able to fetch US$ 9,750 per day at 400 the end of December 2016. 200 In the first few months of 2017, the period markets 0 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 continued to follow this upward trajectory. Small handy ISL, based on International Iron and Steel Institute; (a): 2017 estimated tonnage was able to command US$ 9,300 per day late in April, panamax rates achieved an astonishing

US$ 12,000 per day and the rates for the two capesize- types assessed by the dry bulk experts of Fearnleys have Fig. 7: Chinese seaborne dry bulk imports 2010-2016 been quoted as US$ 12,000 per day and US$ 14,000 per 1400 day. Coking Coal Steam Coal Iron ore 1200

Outlook: positive trend with downward risks 1000

Whilst the markets seem to be headed upwards at first 800 glance in the spring of 2017, it cannot go unnoticed that a number of risks for a sustained recovery exist. On the 600 Million tons Million demand side, much of those risks revolve around 400 whichever way the Chinese economy is headed next. The stimulus plan initiated late in 2015 has certainly revived 200 dry bulk trade demand. Nonetheless there evidently exist 0 overcapacities in the Chinese steel industry. Additionally, 2010 2011 2012 2013 2014 2015 2016 (est) the recent environmental problems have dampened future Source: ISL 2017 based on Clarksons Reseach Services Limited (CRSL) potential additions to coal fired power production. When it comes to China (today the most important importer of thermal coal and iron ore), much of the seaborne trade demand of the near future will probably be decided in a match between domestic resources and imported iron ore and coal.

The CRSL forecast expects the dry bulk trade to increase by 2.5 per cent in 2017. Drewry Shipping Consultants’

SSMR April 2017 7 Comment - World bulk carrier fleet www.isl.org estimate is no less optimistic (2.9 per cent regarding the volume, 3.4 per cent regarding the ton-mile demand). Fig. 8: World steel production by top countries first quarter 2017 Whilst both assessments will elevate the total maritime dry (million tons) bulk trade to levels not seen before, they still do not EU 28, 40.9 Russia, 17.7 outpace the “mathematical” fleet growth of roughly 7 per Others, 73.7 cent as such. USA, 20.0 Japan, 26.0

Only if scrapping of bulk carriers should again reach levels India, 25.1 similar to those of the previous year and if not all of the ships currently listed in the orderbook for delivery in 2017 China, 193.1 are actually handed to owners in this very year, and if the Chinese government is not forced to enforce new measures to address pollution throughout the year 2017, then the supply-demand balance might just maintain its current fragile equilibrium during 2017. ISL, based on International Iron and Steel Institute

Fig. 9: Quarterly iron ore and coal traffic of major exporting ports by regions 2008-2017 (1st quarter) 180 Iron ore 150 Australia Brazil 120

90

Million tonnes Million 60

30

0

60 Coal 50 Australia South Africa 40

30

20 Million tonnes Million

10

0

ISL Port Data Base 2017; Brazil: total iron ore exports, based on ANTAQ, Industry and Foreign Trade; Australia: Ports of Hedland and Dampier; Coal: Australia: Gladstone, Hay Point and Dalrymple Bay, South Africa: Richards Bay

8 SSMR April 2017 ISL Market Review 2017 - World ports www.isl.org

6.3 ISL Monthly Container Port Traffic Indices 2015 - 2017 TEU index; Ø 2000 = 100; moving quarterly averages Japan, South Korea, Taiwan China Japan, South Korea, Taiwan 450 Month 2015 2016 2017 2015 2016 2017 China Jan. 190. 5 186. 0 186. 3 456. 3 457. 8 482. 0 World Feb. 185.8 183.4 184.7 460.4 461.7 486.6 350 March 179.1 180.2 183.1 435.9 431.2 456.2 April 178.3 179.5 430.2 429.7 May 181.4 182.4 427.0 429.0 250 June 187.8 187.8 455.4 461.3 July 185.7 187.5 465.5 468.8 Aug. 183.9 188.2 469.1 476.0 150 Sep. 183.0 186.8 468.0 476.5 Oct. 182.9 182.9 464.2 476.0 50 NovNov. 184. 1 181. 3 458. 5 472. 5 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dec. 182.8 181.9 457.7 477.5 Average 183.8 184.0 184.7 442.6 454.0 474.9 ISL

Other Asia North America Pacific 450 Other Asia Month 2015 2016 2017 2015 2016 2017 North America Pacific Jan. 244.9 221.5 230.2 154.0 157.7 168.7 350 Feb. 240.8 221.1 229.9 140.9 154.2 168.2 World March 235.0 220.4 222.6 130.4 151.9 158.4 April 231. 5 221. 4 138. 2 148. 1 250 May 229.0 222.5 150.5 145.5 June 233.1 230.9 166.9 150.7 July 231.5 232.2 162.9 157.5 150 Aug. 232.2 233.9 166.1 163.5 Sep. 228.7 233.6 170.4 165.7 Oct. 224.1 232.0 173.0 166.6 50 Nov. 221.6 232.2 171.0 169.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dec. 219.0 229.1 164.9 167.7 Average 232.7 231.0 227.6 156.7 157.4 165.1 ISL

North America Atlantic North Europe 450 Month 2015 2016 2017 2015 2016 2017 North America Atlantic Jan. 188.2 191.8 203.1 219.1 206.1 214.8 North Europe 350 Feb. 181.9 182.5 204.1 212.1 203.2 211.1 World March 180.1 186.5 204.0 207.8 205.3 209.3 April 189.5 191.8 213.0 212.6 250 May 198.2 198.1 213.1 216.5 June 212.1 200.4 215.1 219.6 July 212. 1 200. 5 211. 1 216. 8 150 Aug. 214.5 203.6 214.5 216.7 Sep. 211.6 208.3 214.1 217.0 Oct. 210.3 210.9 213.6 217.1 50 Nov. 207.4 210.2 211.9 218.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dec. 199.1 206.1 209.6 216.5 Average 180.1 200.4 203.7 218.2 212.9 211.7 ISL Mediterranean Other Regions 450 Month 2015 2016 2017 2015 2016 2017 Mediterranean Jan. 222. 0 225. 6 235. 2 300. 4 315. 6 324. 8 Other Regions Feb. 216.2 220.2 233.6 295.5 306.7 322.6 350 March 213.0 218.8 209.2 290.7 300.9 316.4 World April 219.3 223.1 294.1 298.5 May 223.6 232.6 294.9 297.5 250 June 229.2 243.0 305.9 300.5 July 225.6 244.1 307.2 303.1 150 Aug. 226.2 242.8 315.0 309.5 Sep. 228.2 243.0 318.1 315.1 Oct. 227.3 242.6 316.6 319.3 50 NovNov. 223. 2 240. 4 313. 7 323. 9 2008 2009 2010 2011 2012 2013 2014 2015 2016 Dec. 223.2 236.3 305.5 322.9 Average 240.7 223.1 226.0 257.1 304.8 321.3 ISL Note: For further information, e.g. definition of port regions, please see Definitions.

(Source: ISL Monthly Container Port Monitor 2017) 60 SSMR April 2017 Definitions www.isl.org

ISL Monthly Container Port Traffic Indices 2014 - 2016 (Table 6.3) ISL’s Monthly Container Port Traffic Index is based on monthly container traffic of the world’s top container ports. In total, the ports reflected in the index handled approx. 423.7 mill TEU in 2016, equalling 70 per cent of world container traffic. The monthly TEU volumes per port are available since 2000. The different regions are represented by the following ports: JapaJapann, S. KKoreaorea,, BBusanusan, GGwangyangwangyang,, InIncheoncheon, KKaohsiungaohsiung,, KKeelungeelung,, KKobeobe,, NNagoyaagoya,, OsaOsakaka,, TTaichungaichung,, TTokyookyo,, YYokohamaokohama China: Guangzhou, Hong Kong, Ningbo, Qingdao, Shanghai, Shenzhen, Tianjin, Xiamen Other Asia: Bandar Abbas, Bangkok, Colombo, Dammam, Jeddah, Laem Chabang, Nhava Sheva, Singapore, Salalah North-America Pacific: Long Beach, Los Angeles, Oakland, Seattle, Tacoma, Vancouver North-America Atlantic: Charleston, Houston, Montreal, New York/ New Jersey, Port of Virginia, Savannah North Europe: Antwerp, Bremen / Bremerhaven, Dublin, Gdansk, Hamburg, Helsinki, Klaipeda, Kotka, Le Havre, Lissabon,Lissabon, Rotterdam,Rotterdam, St Petersburg,Petersburg, Tallinn,Tallinn, Zeebrugge Mediterranean: Alexandria, Ambarli, Ashdod, Algeciras-La Linea, Barcelona, Beirut, Genoa, Haifa, Marseilles, Mersin, Port Said, Valencia Other Regions: Balboa Panama, Brisbane, Buenaventura S.A., Buenos Aires, Callao, Cape Town, Durban, Guayaquil, Itajai, Kingston, Lazardo Cardena, Manzanillo Mx, MIT Panama, Melbourne, Montevideo, Ngqura (South Africa), Paranagua, San Antonio, Santos, Sydney, Valparaiso, Veracruz Mx (Source: ISL Port Data Base 2016) The ISL Port Data Base the most comprehensive data base in port traffic The ISL Port Data Base contains structured, comparable data on shipping, cargo and container traffic for more than 400 leading world ports since 1980. The data is constantly updated and completed, including today about 200 items per port and per year. This unique data base is made possible by our network partners troughout the world providing the broad information for our yearly ISL Port Data Base Survey.

Basis of calculation: Our basis for customised extracts from the Port Data Base is as follows: € 60 - basic fee, plus € 0.60 per item. The basic fee includes the setting up of a suited layout the addition of the necessary explanatory remarks and footnotes as well as the transmission of the data by E-Mail or by fax. By subscribing to a specified analysis on a yearly basis, you will save the basic fee and get an additional 20 per cent off the other costs starting the second year. Apart from customised database extracts, we provide standardised port profiles and rankings. Please contact us for contractual information. Contact and Enquiries:q Dieter Stockmann, Port Data Manager Phone +49/4 21/2 20 96-33 eMail [email protected] Web http://www.isl.org/infoline/

SSMR April 2017 61 Definitions – Merchant fleet and newbuildings www.isl.org

Fleet and New Construction Data Broken-up Tonnage includes ships sold for breaking. Figures on broken-up Country of registration and country of control tonnage are not revised if vessels reported for breaking are Country of registration indicates the country of the port of trading again. registry of a country (flag). The country of control is defined as the “Real Nationality”, i.e. the home country of the Merchant Ship Type Structures interests behind the primary reference company. None of Based on „An International Classification of Ships by Type“ the information regarding ownership is intended to confirm (ICST (1994) or otherwise the legal status of the companies or the ships associated with them Definition of terms used in merchant ship structures type Denmark includes Faeroes, Greenland. classification. France includes New Caledonia, French Polynesia, Réunion, Tanker: Single-deck vessel constructed and arranged for Wallis and Futuna Islands. the carriage of liquid cargoes in tanks integral to the hull and include crude oil or non-hazardous (IMO code) refined Netherlands includes Netherlands Antilles, Curacao. products. Portugal includes Madeira. Chemical tanker: Vessel constructed and arranged for Spain includes Canary Islands. carrying hazardous (IMO code) cargoes in special tanks. Liquid gas tanker: Vessel constructed and arranged for the UK includes Isle of Man and Falkland Island. carriage of liquefied gases either in integral tanks or US includes Puerto Rico. independent tanks under pressure or refrigerated. Dry Bulk: Dry cargo vessel. One deck, machinery aft with

topside tanks capable of carrying a variety of self-trimming Clarkson Research Services Limited cargoes. Disclaimer Ore Carrier (Bulk Carrier): Dry cargo vessel, one deck, strengthening for ore cargoes. “The statistical and graphical Data contained under the Ore/Bulk/Oil Carrier (OBO): Bulk carrier arranged for the heading is drawn from the Clarkson Research Services carriage of either bulk dry cargoes or liquid cargoes in the Limited (“CRSL”) database and other sources. CRSL has same cargo spaces but not simultaneously. advised that: (i) some Data in CRSL's database is derived from estimates or subjective judgments; and (ii) the Data in General Cargo: Single or multi-deck general dry cargo the databases of other marine data collection agencies may vessel with facilities for loading/ discharging cargo. differ from the Data in CRSL's database; and (iii) whilst Specialised Carrier (Special Ship): Dry cargo vessel CRSL has taken reasonable care in the compilation of the specially designed for the carriage of particular cargoes, incl. statistical and graphical Data and believes it to be accurate car-carriers. and correct, data compilation is subject to limited audit and Reefer: Specialised dry cargo vessel with 80 % or more validation procedures and may accordingly contain errors; insulated cargo space. and (iv) CRSL, its agents, officers and employees do not RoRo Cargo/RoRo Passenger: Vessel arranged for Roll-on accept liability for any loss suffered in consequence of Roll-off loading / discharging of vehicles (road and/or rail) reliance on such Data or in any other manner; and (v) the as cargo and / or passenger conveyances. provision of such Data does not obviate any need to make Container Ship (Fully Cellular Container Ships): Vessel appropriate further enquiries; and (vi) the provision of such fitted throughout with fixed or portable cell guides for the Data is not an endorsement of any commercial policies carriage of containers above and below the weather deck. and/or any conclusions by CRSL”. Passenger: Vessel which carries more than 12 fare paying passengers whether berthed or unberthed (ferries).

Basic Ship Type Structure and ISL Ship Type Aggregates

MERCHANT SHIP STRUCTURES ISL SHIP TYPES Special Fleet Report Broken-up tonnage etc. LIQUID Oil tankers - Crude oil tankers Oil tankers Tankers - Crude/products tankers " " - Products tankers " "" Oil / Chemical tankers - Oil chemical tankers Oil / Chemical tankers Tankers - Chemical tankers " " - Other tankers " Liquid gas tankers - LNG carriers Liquid gas tankers Tankers - LPG carriers " " - Other liquid gas carriers " " DRY BULK Bulk carriers - bulk carriers Bulk carriers Bulk carriers - other bulk carriers incl. ore " " carriers " - Ore/bulk/oil carriers " - Ore/oil carriers " - Bulk/oil carriers " OHTER DRY CARGO General cargo ships of which General cargo ships, of which General cargo ships, of which - Conventional Cargo ships Conventional Cargo ships Conventional Cargo ships - Special ships Special ships (a) - Pure car carriers Pure car carriers (a) - Reefer ships Reefer ships (a) - RoRo cargo ships RoRo cargo ships Container ships - Fully cellular container ships Fully cellular container ships Fully cellular container ships Passenger and of which Passenger and cargo passenger Passenger ships passenger cargo ships ships, of which (b) - Passenger ships Passenger ships " - Cargo/RoRo passenger ships Cargo/RoRo passenger ships " (a) Included in General Cargo Ships. (b) Including ships (berthed and unberthed) for passenger transport and passenger carrying vessels like general cargo passenger ships, ro-ro passenger ships (ferries).

For further explanation (e.g. Trade and Traffic Statistics) please visit: www.isl.org/infoline

62 SSMR April 2017 ISL Institute of Shipping Economics and Logistics The ISL - Institute of Shipping Economics and Logistics founded in Bremen in 1954 combines tradition with modern science; we have since positioned ourselves as one of Europe’s leading institutes in the area of maritime logistics research, consulting and knowledge transfer. On behalf of our project partners from the public and private sector, both on national and international level, we ensure that innovative ideas become solutions with practical applicability. At our offices in Bremen and Bremerhaven, we handle projects from all over the world in interdisciplinary teams.

www.isl.org ● [email protected]

ISL InfoLine / Webshop The ISL InfoLine is your resource of up-to-date market information and completes ISL's service spectrum with numerous proprietary publications, which are available in the online portal. The key publications are the ISL Shipping Statistics and Market Review (SSMR), the ISL Shipping Statistics Yearbook (SSYB) and the ISL Monthly Container Port Monitor (MCPM).

Furthermore, the portal of the ISL InfoLine offers various databases used for market analyses, statistical publications, information services and customers' enquiries. The focus here is on the ISL Port Database.

www.isl.org/infoline ● [email protected]

ISL InfoCenter / Library / SEABASE The ISL InfoCenter is the leading institution in Europe for information and documentation in maritime economics and logistics. It offers professional services about industries, markets and companies within the knowledge areas of shipping, shipbuilding and ports, transport and logistics as well as economic and trade.

The ISL Library, which exists since 1954, is one of the biggest libraries in the area of maritime economics and logistics with a total stock of about 126,000 books (January 2016), of which are 32,000 monographs and 32,000 annual publications. A quarterly list of new acquisitions is created, documenting the growth of the ISL Library. Furthermore 200 professional journals are kept regularly. In addition, digital publications within the creation of an eLibrary play an increasingly important role. The ISL Library is open to the public and the use is free of charge

ISL SEABASE functions both as a catalog of the ISL Library as well as a literature database. The catalog represents round about 125,000 bibliographic records (January 2016) of the ISL Library and is an important knowledge source for maritime industry as well as research and education. ISL SEABASE research offers a systematic access to current maritime and logistic knowledge. Besides reference books also market studies, research and conference reports, economy statistics as well as business and annual reports are included. Contributions from about 200 national and international professional journals are evaluated selectively after relevance.

www.isl.org/library ● [email protected] www.isl.org