Iino Kaiun Kaisha : Shipping Market Information

April 15, 2024

Shipping Market Information

【Contents】
1.	Chemical Tanker Market	P. 1
2.	VLGC Market	P. 2
3.	Dry Bulk Carrier Market	P.	3
4.	Glossary	P.	4

Ratio of market exposure (Spot*¹) in fleet

(As of Oct. 31, 2023 Forecast, to be updated in every 2Q/4Q)

Oil Tanker	0 %
Chemical Tanker*²	25	%
LPG Carrier (VLGC)	14	%
LNG Carrier*³	0 %
Panamax and Small Handy	54	%
Dedicated Carriers	0	%

*¹ Contract on a per-voyage basis. (Not long-term) *² Not including time charter and other vessels

*³ The calculation includes 1 owned vessel, 24 LNG carriers are jointly owned or involved in the portfolio companies

Chemical Tanker Market

($/MT)						($/MT)
for freight						for Bunker
200						1,200
180
						1,000
160
140
						800
120
100						600
80
						400
60
40
						200
	15kmt Arabian Gulf / Main Ports in Far East
20	15kmt Arabian Gulf / Rotterdam
	VLSFO bunker price, Singapore
0						0
Apr-21	Oct-21	Apr-22	Oct-22	Apr-23	Oct-23	Apr-24

(Source: Clarksons Research)

General relationship between spot freight rates for chemical tankers and bunker prices

Impact of spot freight rates and bunker prices on profitability

(without hedging against the risk of bunker price fluctuations)

	Bunker price	Profitability
			【for example】
	↗	→
When spot			Profitability will
		improve if spot
freight rates	→	↗	freight rates
increase (↗)			increase and
	↘	↗	bunker prices
	decrease.
	Bunker price	Profitability
			【for example】
	↗	↘	Profitability will
	deteriorate if
When spot			spot freight
		rates fall and
freight rates	→	↘
bunker prices
decrease (↘)
		increase.
	↘	→

*However, the figures may not necessarily be as shown in the above table due to the time lag between refueling and consumption, and the range of increase/decrease in freight and bunker oil prices, respectively.

Spot freight rates include fuel costs. Basically, when fuel oil prices rise (fall), freight rates also rise (fall), but there may be some time lag.

１

VLGC Market

($/tonne)						($,000/month)
for spot rate						for TCE Earnings/TC rate
200						6,000
180	LPG Spot Rate 46,200mt Gulf - Japan
160						5,000
VLGC TCE Earnings Ras Tanura-Chiba
140	84K CBM LPG 12 Month Timecharter Rate				4,000
120
100						3,000
80
60						2,000
40						1,000
20
0						0
Apr-21	Oct-21	Apr-22	Oct-22	Apr-23	Oct-23	Apr-24

(Source: Clarksons Research)

2

Dry Bulk Carrier Market

US$/DAY
60,000
		Capesize: 87,875$/DAY (Oct, 2021)
50,000			Capesize 180,000DWT
			(Average of 4 trip charter routes)
40,000			Panamax 82,000DWT
		(Average of 4 trip charter routes)
			Handysize 38,000DWT
30,000			(Average of 6 trip charter routes)
20,000
10,000
0
Apr-21	Oct-21	Apr-22	Oct-22	Apr-23	Oct-23	Apr-24

(Source: Clarksons Research)

3

Glossary

Contract Type

 COA（Contract of Affreightment）	 Spot Contract
A contract to transport a specific cargo with specific freight rates for	Contract on a per-voyage basis.
a certain period of time, without specifying the vessel to be used.	(Not long-term)

• TC (Time Charter Contract)

A contract to charter a vessel for a certain period of time. The term can be as short as a few months or as long as a decade or more. The charterer (operator) pays a certain amount of charter fee to the shipowner (owner).

The shipowner is responsible for ship management, including repairs and crewing.

Other

• Product Tanker / Chemical Tanker (Relationship between them)

Chemical tankers mainly carry liquid chemical products (methanol, alcohol and other cargoes), while product tankers mainly carry petroleum products (gasoline, naphtha and other cargoes). Product tankers can carry some liquid chemical products. Therefore, when the cargoes (petroleum products) carried by product tankers decrease, the product tankers flow into the chemical tanker market. An increase in the fleef of overall chemical tanker market may lead to the market conditions to decline.

For more information on chemical tankers, please see "What is a Chemical Tanker" on our website.

• Bunker (Fuel Oil) Price

【Type】 ① High Sulfer Fuel Oil（HSFO）:Low cost but high environmental impact.

②Very Low Sulfer Fuel Oil（VLSFO）:VLSFO must be used for non-scrubber equipped vessels due to

the enforcement of the sulfur limits of the MARPOL Convention 2020; it is more costly than HSFO, but has a lower environmental impact.

【General relationship between spot freight rates for chemical tankers and bunker prices】

Spot freight rates include fuel costs. Basically, when fuel oil prices rise (fall), freight rates also rise (fall), but there may be some time lag.

• Docking

Vessels enter dock for periodic inspections and repair work.

Periodic inspections are every 5 years and interim inspections every 2-3 years.

• Provision for special repairs

Allowance recorded for docking. (tens to hundreds of millions of yen)

4