In the report, you can find charts covering from Dry Bulk Freight Rate(Time Charter Rate) to Freight Derivatives(FFA) trends --- The Baltic Exchange Dry Index climbed by 5% over the course of the month in spite of a sharp drop in Capesize earnings during the latter part of the month. While the other two smaller vessel sizes were almost unchanged from a month ago, Panamax has been the strongest performer of the four main Baltic index classes, with the average earning rising by $1,166/day to $6,596/day. As I have predicted in earlier report ‘Coal Trade Market’, increased coal movements have supported panamax freight rate. Interestingly seasonal strength in US grain season, together with strong commodity prices, have indeed raised physical earnings but still failed to translate into the paper market. Although nearby prices are being driven by short-term seasonal trend, the price for deferred contracts (Cal 2017-19) have not changed much from a month ago. It seems that market judges the current strength would be temporary. Do you agree with the consensus? It is true that if the spot market is really reflecting a supply-demand balance, then it is future prices which will have to catch up.. 10월 BDI지수 평균은 월 후반 케이프 운임의 가파른 하락에도 전월 대비 5%상승 하였습니다. 파나막스 선형은 나머지 수프라 핸디 선형의 월 평균 운임이 거의 변동 없었던 것에 반해 가장 큰 상승세를 보였습니다. 제가 KMI에서 발표한 ‘석탄운송시장’에서 전망한 바대로 파나막스 운임은 미국 그레인 시즌과 더불어 석탄 운송량 증가의 해택을 본 것으로 파악됩니다. 현재 원자재 가격 강세와 계절적 수요가 현물 시장에 잘 나타나고 있는 것으로 보입니다만 재밌는 것은 여전히 FFA원월물 시장은 큰 변동이 없었습니다. 아마도 시장 참여자들이 여전히 현재 스팟 시장을 계절적, 일시적 상승으로 보고 있기 때문으로 보입니다. 분명 현재의 수급 상황이 반영된 것이 현물 운임 시장이기에 선물 운임 시장 역시 결국 이에 수렴되어야 하겠지만 개인적으로 여전히 배는 참 많아 보이며 내년 초 시장 조정은 피하기 어려워 보입니다. ‘Freight Market' 에서는 월간 단위 선형 별(Cape, PMX, SMX, HSZ), 수역 별(태평양/대서양/FH/BH) 운임과 운임 선물 시장(FFA)의 트랜드를 알 수 있습니다.

1. Freight Market
Oct 2016
This report has been produced for general information. Whilst care has been taken in the
production of this report, no liability or responsibility can be accepted for any loss incurred in any
way whatsoever by any person who may seek to rely on the information contained herein.
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311

2. Baltic Dry Index & Forward Freight Agreement
2
Spot Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Trans Pacific 5984 7618 7603 ▼0% 5158 ▼13%
Trans Atlantic 5656 7132 8082 ▲13% 5535 ▼22%
Fronthaul 9871 10973 11785 ▲7% 9093 ▼20%
Backhaul 2759 4119 4376 ▲6% 2138 ▼6%
Dry Bulk Earning Av. 6097 7501 7870 ▲5% 5448 ▼20%
FFA Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
BDI Spot 673 828 868 ▲5% 601 ▼20%
Cal 2016 616 628 638 ▲2% 590 ▼35%
Cal 2017 706 702 719 ▲2% 683 ▼31%
Cal 2018 814 816 819 ▲0% 795 ▼25%
Cal 2019 897 900 896 ▼0% 877 ▼21%
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
BDI 870p
17@ 720p
18@ 820p
0
200
400
600
800
1,000
1,200
1,400
1,600
Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16
Pt
BDI Cal17 Cal18 Cal19
* 10 days moving average graph

3. Weighted Dry Index
3※ Source: Baltic Exchange, HJS
Weighting - Fleet Cape PMX SMX HSZ Dry %
Trans Pacific 1,057 1,299 2,093 1,677 6,126 57%
Trans Atlantic 183 563 835 1,283 2,864 27%
Fronthaul 178 299 165 132 774 7%
Backhaul 212 300 220 166 898 8%
Total 1,631 2,460 3,313 3,258 10,662 100%
Weighted Earning Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Capesize 6214 11807 11696 ▼1% 6471 ▼14%
Panamax 5420 5462 6704 ▲23% 4766 ▼17%
Supramax 6732 6869 6710 ▼2% 5462 ▼20%
Handysize 5864 6094 6117 ▲0% 4786 ▼13%
Weighted Dry Index 671 779 804 ▲3% 579 ▼16%
BCPI(commodity price) 872 881 923 ▲5% 816 ▼11%
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
2,000
4,000
6,000
8,000
10,000
12,000
Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16
(Pts)($/day)
BDI Pacific Earning
Atlantic Earning Weighted Dry Index (right)

4. Baltic Dry Index
Dry Bulk Earning Spread by Size
4※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
500
1,000
1,500
2,000
2,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(pts)
BDI 2013 2014 2015 2016 FFA
0.0
1.0
2.0
3.0
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14
Apr-14
Jul-14
Oct-14
Jan-15
Apr-15
Jul-15
Oct-15
Jan-16
Apr-16
Jul-16
Oct-16
Sector Spread
Cape/PMX 20 MA
PMX/SMX 20 MA
SMX/HANDY 20 MA

5. Atlantic - Pacific Earning Spread
Atlantic - Pacific Earning Spread Seasonality
5
-8000
-4000
0
4000
8000
12000
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16
CAPE
PMX
SMX
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
(3,000)
(2,000)
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CAPE PMX
SMX HSZ

6. Capesize C5TC & Forward Freight Agreement
6
Spot Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Trans Pacific 6326 12012 11174 ▼7% 6260 ▼12%
Trans Atlantic 4460 10567 12191 ▲15% 6276 ▼19%
Fronthaul 12090 17420 18445 ▲6% 12682 ▼21%
Backhaul 373 5194 6260 ▲21% 539 N/A
C5TC Average 5996 11376 11576 ▲2% 6441 ▼23%
FFA Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
2Q 2016 6685 6685 6685 - 6171 ▼6%
3Q 2016 6826 7691 8098 ▲5% 7632 ▼30%
4Q 2016 9638 10467 10863 ▲4% 9781 ▼29%
Current Year 6489 6824 7094 ▲4% 6617 ▼29%
Next Year 8433 8534 8651 ▲1% 8396 ▼28%
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
17@8,600
5TC 11,000
18@10,000
0
5,000
10,000
15,000
20,000
25,000
30,000
Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16
$ per day
C5TC Cal17 Cal18
* 10 days moving average graph

7. Capesize 5TC average
Capesize Fronthaul Route (Baltic C9)
7※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
10,000
20,000
30,000
40,000
50,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
CAPE 2013 2014 2015 2016 FFA
($/day)
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/day)
CAPE FH 2013 2014 2015 2016

8. Capesize Trans Atlantic Route (Baltic C8)
Capesize Trans Pacific Route (Baltic C10)
8※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/day)
CAPE TA 2013 2014 2015 2016
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
($/day)
CAPE TP 2013 2014 2015 2016

9. Panamax P4TC & Forward Freight Agreement
9
Spot Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Trans Pacific 5330 5651 6794 ▲20% 4716 ▼12%
Trans Atlantic 5474 4871 6837 ▲40% 4832 ▼25%
Fronthaul 10120 10178 11489 ▲13% 8872 ▼20%
Backhaul 994 1020 1263 ▲24% 737 ▲29%
P4TC Average 5479 5430 6596 ▲21% 4789 ▼19%
FFA Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
2Q 2016 4899 4899 4899 - 4891 ▼14%
3Q 2016 5998 5769 5746 ▼0% 5378 ▼22%
4Q 2016 6509 6566 6597 ▲0% 5895 ▼20%
Current Year 5120 5078 5077 ▼0% 4820 ▼23%
Next Year 5780 5817 5982 ▲3% 5596 ▼22%
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
17@ 6,000
4TC 7,000
18@ 6,700
0
3,000
6,000
9,000
12,000
15,000
Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16
$ per day
P4TC Cal17 Cal18
* 10 days moving average graph

10. Panamax 4TC average
Panamax Fronthaul Route (Baltic P2A)
10※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
20,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PMX 2013 2014 2015 2016 FFA
($/day)
0
5,000
10,000
15,000
20,000
25,000
30,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PMX FH 2013 2014 2015 2016
($/day)

11. Panamax Trans Atlantic Route (P1A)
Panamax Trans Pacific Route (Baltic P3A)
11※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PMX TA 2013 2014 2015 2016
($/day)
0
5,000
10,000
15,000
20,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
PMX TP 2013 2014 2015 2016
($/day)

12. Supramax S6TC & Forward Freight Agreement
12
Spot Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Trans Pacific 6530 6565 6192 ▼6% 5103 ▼18%
Trans Atlantic 6678 7191 7360 ▲2% 5943 ▼25%
Fronthaul 10822 10469 10854 ▲4% 8803 ▼12%
Backhaul 4098 4288 4450 ▲4% 3115 ▼40%
S6TC Average 7032 7128 7214 ▲1% 5741 ▼21%
FFA Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
2Q 2016 5795 5795 5795 - 5525 ▼22%
3Q 2016 6830 6892 7064 ▲3% 6069 ▼23%
4Q 2016 7005 7089 7295 ▲3% 6239 ▼24%
Current Year 5859 5894 5989 ▲2% 5411 ▼27%
Next Year 6062 5974 6244 ▲5% 5765 ▼24%
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
17@6,200
6TC 7,500
18@7,000
0
3,000
6,000
9,000
12,000
15,000
Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16
$ per day
S6TC Cal2017 Cal2018
* 10 days moving average graph

13. Supramax 6TC average
Supramax Fronthaul Route
13※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
20,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
SMX 2013 2014 2015 2016 FFA
($/day)
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
SMX FH 2015 2013 2014 2015
($/day)

14. Supramax Trans Atlantic Route
Supramax Trans Pacific Route
14※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
SMX TA 2013 2014 2015 2016
($/day)
0
2,500
5,000
7,500
10,000
12,500
15,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
SMX TP 2013 2014 2015 2016
($/day)

15. Handysize H6TC & Forward Freight Agreement
15
Spot Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
Trans Pacific 5749 6244 6252 ▲0% 4553 ▼8%
Trans Atlantic 6013 5900 5940 ▲1% 5089 ▼18%
Am-Conti 6453 5826 6350 ▲9% 6017 ▼28%
Conti-Am 5573 5974 5529 ▼7% 4162 ▲4%
H6TC Average 5881 6072 6096 ▲0% 4822 ▼14%
FFA Market Aug 2016 Sep 2016 Oct 2016 Monthly % YTD Yearly %
2Q 2016 4791 4791 4791 - 4606 ▼19%
3Q 2016 5592 5835 5792 ▼1% 4996 ▼18%
4Q 2016 5640 5844 6015 ▲3% 5184 ▼20%
Current Year 4857 4969 5001 ▲1% 4553 ▼22%
Next Year 5319 5125 5186 ▲1% 4995 ▼22%
※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
Cal17 5,200
H6TC 6000
Cal18 5800
0
3,000
6,000
9,000
12,000
Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16
$ per day
H6TC Cal2016 Cal2017
* 10 days moving average graph

16. Handysize 6TC average
Handysize Fronthaul Route
16※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Handy 2013 2014 2015 2016 FFA
($/day)
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Handy FH 2015 2013 2014 2016
($/day)

17. Handy Trans Atlantic Route
Handy Trans Pacific Route
17※ Source: Baltic Exchange, HJS
Contact : Daejin Lee / daejin82@gmail.com / + 82 10 3462 5311
0
5,000
10,000
15,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Handy TA 2013 2014 2015 2016
($/day)
0
2,500
5,000
7,500
10,000
12,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Handy TP 2013 2014 2015 2016
($/day)

18. 18
Thank you
Previous Reports : includes freight forecasts
(1) Bulk Supply : The Seeds of Recovery (Korean / English)
(2) Tanker Supply : Oil Prices and Oversupply (Korean)
(3) Coal Trade Market : The end of the coal era, soon or yet? (Korean / English)
(4) Iron Ore Trade Market : Chinese steel market (Korean)
(5) Understanding Bulk Shipping Market (Korean)
We invite any comments and/or questions you may have. if you need bespoke reports
& analysis, we would love to meet specific client needs. To discuss any individual
requirements please contact below
Daejin Lee / Commodity Research / Shipping / FFA
Hanjin Shipping
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Email: daejin@hanjin.com / daejin82@gmail.com
This report has been produced for general information. Whilst care has been taken in the
production of this report, no liability or responsibility can be accepted for any loss incurred in
any way whatsoever by any person who may seek to rely on the information contained herein.
The information in this report may not be reproduced without the written permission of Hanjin
Shipping Co., Ltd
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