Shipping Intelligence Weekly

Issue No. 835 29-Aug-2008 ISSN: 1358-8028

ClarkSea Index $34,174 The Atlantic Market This Week ……

55 50 $,000/day 45 Capesize: Weaker Panamax: Steady Handy: Softer 40 35 30 25 20 15 10 5 Jan-08 Jan-07 Jan-06 Jan-05 Jan-04 Jan-03 Sep-07 Sep-06 Sep-05 Sep-04 Sep-03 Sep-02 May-08 May-07 May-06 May-05 May-04 May-03 Highlights VLCC Market Confidence returned to the MEG, with some rates rising WS30…..p.2 Suezmax Market Rates firmed in both markets, led by the WAF market…………….p.2 Aframax Market Rates remained relatively steady in the Black Sea/Med market……..p.2 Products Market Dirty products average earnings Selection of ports covered by the various market sectors in this report weakened this week….....……...p.3 Capesize Market The Pacific Market This Week …… The Capesize market continued its downward trend………………..p.4 Capesize: Weaker Panamax: Softer Handy: Steady Panamax Market The Panamax market had a quiet week with rates slightly down….p.4 Handymax Market The Handymax market remained steady………………………...…p.5 S & P Market Grand Union has arranged a reverse merger involving the sale of twenty dry bulk vessels to a Canadian IPO buyer..…………………………..p.i Newbuilding This summer has been subdued, with containership activity being particularly quiet...…………....p.10 Demolition Prices for recently concluded deals declined further to approximately $700/ldt…………………....….p.11 Crude Tanker Spot Market Crude Tanker Spot Earnings ($,000's/day) Crude Tanker Highlights • 240 VLCCs: The MEG has seen the long-awaited return of confidence, 220 with rates rising by more than WS30 on some routes over 200 the last few days. The Atlantic market has also 180 VLCC strengthened somewhat, buoyed by a firmer Suezmax Suezmax market. But, with a US holiday this coming Monday, next 160 Aframax week may see the market slow. Overall, average VLCC 140 earnings strengthened by 102% w-o-w to $47,252/day. 120 • Suezmaxes: Rates firmed in both markets this week, possibly as a result 100 of fears of the potential disruption that could be caused by 80 tropical storm Gustav, with rates in the WAF market 60 leading the charge. Overall, average earnings rose to

40 $64,008/day, up by 57% w-o-w. • Aframaxes: 20 Although rates in the Baltic market were subdued and even slipped marginally, rates remained steadier in the Black Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sea/Med market as an influx of enquiry allowed owners to '06 '06 '07 '07 '07 '07 '07 '07 '08 '08 '08 '08 sustain rates at fairly constant levels.

VLCC Single WS 2008 Average earnings $ per day VLCC Earnings Voyage..... Aug 22 Aug 29 2008 2006 2007 2008 Aug 22 Aug 29 This Week .... 2 280,000t Gulf - Europe 68 83 110 52,652 44,805 82,489 25,859 40,740 FIRMER 58% 2 280,000t Gulf - US Gulf * 68 83 110 50,599 43,986 80,502 23,840 38,710 FIRMER 62% 2 265,000t Gulf - Japan * 68 95 154 63,599 63,691 121,756 16,714 44,777 FIRMER 168% 2 265,000t Gulf - S.Korea * 68 95 154 60,809 61,778 117,365 17,120 44,372 FIRMER 159% 2 270,000t Gulf - Sing 68 100 158 64,796 64,827 123,967 17,147 49,781 FIRMER 190% 2 280,000t Gulf - Red Sea 68 100 165 69,404 70,143 133,589 19,065 51,987 FIRMER 173% 2 260,000t WAF - East * 68 90 129 55,203 50,286 92,098 19,251 41,337 FIRMER 115% 2 260,000t WAF - US Gulf * 88 115 148 71,234 55,155 109,670 40,162 67,065 FIRMER 67% 2 280,000t Med - UKC 95 125 155 89,805 70,271 136,509 62,452 94,796 FIRMER 52% 2 260,000t WAF - WC India^ 3.50 3.75 6.30 62,749 53,103 94,898 26,574 29,761 FIRMER 12% 2 VLCC Ave. Earnings * 60,289 54,979 104,278 23,417 47,252 FIRMER 102% ^ WAF - WC India route quoted in WS until 11-Aug-06; quoted as a lump-sum figure thereafter (in $ million). Suezmax Single WS 2008 Average earnings $ per day Suezmax Earnings Voyage..... Aug 22 Aug 29 2008 2006 2007 2008 Aug 22 Aug 29 This Week .... 4 130,000t Gulf - S.China 150 160 176 41,224 38,781 60,634 40,612 44,158 FIRMER 9% 4 130,000t WAF - USAC * 140 183 194 47,370 39,175 69,421 35,638 57,750 FIRMER 62% 4 130,000t WAF - Med 140 183 196 70,125 46,722 82,382 43,970 68,849 FIRMER 57% 4 130,000t Med - Med * 135 175 208 58,315 49,110 95,835 45,721 70,266 FIRMER 54% 4 Suezmax Ave. Earnings * 52,843 44,142 82,628 40,679 64,008 FIRMER 57%

Aframax Single WS 2008 Average earnings $ per day Aframax Earnings Voyage..... Aug 22 Aug 29 2008 2006 2007 2008 Aug 22 Aug 29 This Week .... 680,000t Gulf - East * 183 170 210 32,193 29,654 38,913 25,834 20,290 WEAKER -21% 680,000t Med - Med * 220 205 225 34,097 31,685 55,358 51,178 44,343 WEAKER -13% 680,000t Med - USAC 215 225 225 39,199 35,821 52,165 44,473 47,081 FIRM.... 6% 680,000t UKC - UKC * 250 170 198 43,829 39,706 73,941 104,074 55,173 WEAKER!! -47% 680,000t UKC - USAC 255 210 224 40,414 35,733 51,431 59,501 41,936 WEAKER!! -30% 680,000t UKC - Med 240 165 189 33,853 27,801 42,324 59,372 28,559 WEAKER!! -52% 680,000t Indo - Japan * 185 180 205 34,395 29,493 39,563 28,950 25,471 WEAKER -12% 670,000t Carib - US Gulf * 163 255 216 27,600 22,455 34,408 15,895 41,518 FIRMER 161% 680,000t Black Sea - Med * 230 230 233 58,029 45,812 73,419 69,547 68,212 STEADY -2% 6 Aframax Ave. Earnings * 38,357 33,134 52,600 49,246 42,501 WEAKER -14% Note: In June 2008, all tanker earnings since start 2004 were re-evaluated on the basis of revised voyage calculations; "Earnings" are timecharter equivalents of spot freight rates (see footnote on page 4); */# Indicates constituent routes of "Average Earnings" for each sector since start 2004. 0 0 0 0 0 0 0 0 0 Clarkson Research Services Page 2 29-Aug-08 Product Tanker Spot Market Product Tanker Spot Earnings ($,000's/day) Product Tanker Highlights

65 • Clean Products Tight tonnage in the Middle East has kept rates there firm 60 Dirty Clean - MR despite fewer cargoes becoming available. LR1 rates are 55 Clean - Handy looking slightly softer, with vessels willing to ballast from 50 the West to pick up West Coast Indian or even MEG cargoes. Overall, ‘MR’ average earnings weakened by 45 10% w-o-w to $28,458/day, whilst ‘Handysize’ earnings 40 firmed by 14% w-o-w to $24,965/day. 35 • 30 Dirty Products Panamaxes had a very slow start to the week. Rates in the 25 Caribs softened, and the Europe/TA market was 20 completely inactive. However, mid-week vessels were

15 fixed at WS262, and since then there has been more enquiry in the market. Vessels are generally being fixed 10 between WS260 and WS265. Most vessels are being fixed 5 and as a consequence, higher rates should be seen next Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul week. However, average dirty earnings this week '06 '06 '07 '07 '07 '07 '07 '07 '08 '08 '08 '08 weakened 11% w-o-w to $34,350.

Clean Product WS 2008 Average earnings $ per day Clean Earnings Single Voyage... Aug 22 Aug 29 2008 2006 2007 2008 Aug 22 Aug 29 This Week .... 875,000t Gulf - Japan 350 350 212 31,851 23,704 35,368 73,639 71,918 STEADY -2% 955,000t Gulf - Japan 385 365 243 28,253 24,194 30,275 59,559 53,358 WEAKER -10% 13 35,000t Gulf - Japan * 360 360 297 25,467 22,930 22,326 28,329 27,239 SOFTER -4% 13 35,000t Gulf - E.Africa * 490 460 330 28,053 27,401 29,027 47,941 42,936 WEAKER -10% 13 37,000t UKC - USAC * 335 310 296 27,626 28,810 27,809 31,628 27,270 WEAKER -14% 13 38,000t Caribs - USAC * 308 290 298 30,330 28,820 30,474 30,072 26,852 WEAKER -11% 13 30,000t Sing - Japan * 330 325 234 18,748 14,116 10,439 20,150 18,443 WEAKER -8% 14 30,000t Med - USAC # 310 340 301 21,749 23,231 22,093 21,029 24,312 FIRMER 16% 14 30,000t Med - UKC # 260 295 259 21,449 22,467 20,228 18,504 22,663 FIRMER 22% 14 30,000t Med - Med 260 280 265 35,785 36,313 36,493 35,228 39,359 FIRMER 12% 14 30,000t Black Sea - Med 250 290 255 28,821 27,571 27,077 24,647 31,053 FIRMER 26% 14 30,000t Baltic - UKC # 280 295 250 22,212 21,538 21,575 25,914 27,921 FIRM.... 8% 14 30,000t UKC - UKC § 275 295 279 New timeseries 35,811 40,225 FIRMER 12% Clean 'MR' Ave. Earnings * 26,045 24,416 24,015 31,624 28,548 WEAKER -10% Clean 'Hdy' Ave. Earnings # 21,804 22,412 21,299 21,816 24,965 FIRMER 14% § Jun-08: Tees-Amsterdam replaced Tees-Dunkirk as featured UKC-UKC route. Dirty Product WS 2008 Average earnings $ per day Dirty Earnings Single Voyage... Aug 22 Aug 29 2008 2006 2007 2008 Aug 22 Aug 29 This Week .... 12 55,000t Med - US Gulf * 280 265 259 32,655 32,196 37,369 39,338 34,524 WEAKER -12% 12 55,000t UKC - US Gulf * 280 265 259 35,399 34,427 40,529 43,052 38,122 WEAKER -11% 12 50,000t Caribs - USAC * 275 265 262 27,444 26,864 33,191 33,249 30,406 WEAKER -9% 12 45,000t Med - UKC 275 275 296 New timeseries 30,589 29,381 SOFTER -4% Dirty Ave. Earnings * 31,833 31,162 37,030 38,546 34,350 WEAKER -11%

VLCC Spot Monthly Fixture Record VLCC Spot Market Market Activity... Average No. Number Last This Week ... 2006 2007 Mar '08 Apr '08 May '08 Jun '08 Jul '08 4 Wks Fixtures: Gulf-West 23 28 22 29 29 17 19 28 UP BY.... 47% Gulf-East/Japan 61 67 43 76 60 64 43 47 UP BY.... 9% Gulf-Red Sea 300 0 0 0 0 0#DIV/0! #DIV/0! Others 31 33 25 21 28 18 20 20 UP BY.... 0% Total Number of Fixtures 118 129 90 126 117 99 82 95 UP BY.... 16% Vessels due to arrive in Gulf ~ 65 65 77 54 87 65 100 73 DOWN BY... -27% VLCC's Spot in Gulf ~ No. 309 4119 4 DOWN BY... -56% Dwt 744 0 2,432 1,187 294 294 2,666 1,164 DOWN BY... -56% ~ As at the beginning of the month for historical data; for the next 4 weeks (vessels due) or this week (vessels spot) for current week's data. Clarkson Research Services Page 3 29-Aug-08 Large Bulk Carrier Market Bulkcarrier Spot Earnings ($,000's/Day) Bulkcarrier Highlights • Capesize: 220 The market’s downward trend continued this week, with 200 Capesize average earnings falling by 10.0% w-o-w to $104,933/day. Panamax Freight rates in the Pacific dropped notably, and those in the 180 Handymax Atlantic also softened. Generally, market sentiment is strong for 160 4Q, supported by charterers’ ideas in the Pacific for the end of September. However, the lack of spot cargoes there has led to 140 increased ballasters and a further downturn is still possible. 120 • Panamax:

100 Another quiet week and still no sign of the 4Q kick. The Atlantic round voyage softened slightly early in the week before 80 beginning to firm again. Pacific rates remain much lower than in 60 the Atlantic. More backhaul business was seen but rates remained low and average earnings softened 0.9% w-o-w to 40 $43,245/day. More of the same is expected next week as period 20 activity remains sluggish. Cal 09 FFA was virtually unchanged w-o-w, but is significantly above the index. • Handymax: Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul The Handymax market remains directionless. Overall, average '06 '06 '07 '07 '07 '07 '07 '07 '08 '08 '08 '08 earnings fell by 2.0% w-o-w to $43,625/day.

Capesize Single $ Per Ton Average Earnings $ Per Day Capesize Market Voyage...... Aug 22 Aug 29 20082006 2007 2008 Aug 22 Aug 29 This Week ... Iron Ore Trades 16 165,000 Tubarao/Rotterdam 35.75 30.75 39.7945,557 124,412 146,648 125,094 100,942 WEAKER -19.3% 16 165,000 Tubarao/Japan 18m 69.50 68.25 75.0460,584 146,438 188,606 168,280 163,145 SOFTER -3.1% 16 165,000 Tub/Beilun.Baoshan 72.50 71.25 78.6160,694 145,911 190,060 169,012 164,135 STEADY -2.9% 16 165,000 Dampier/Rotterdam 37.75 32.00 41.1229,868 78,713 93,208 78,818 58,363 WEAKER!! -26.0% 16 165,000 Dampier/Japan 18m 26.25 23.10 28.7848,712 118,206 147,679 127,717 105,676 WEAKER -17.3% 16 165,000 Dampier/Beilun.Bao. 29.65 26.50 30.8445,966 112,208 137,000 127,918 109,727 WEAKER -14.2% 16 165,000 Saldanha/Beilun.Bao. 47.00 42.00 49.1144,831 110,119 128,859 118,225 100,802 WEAKER -14.7% Coal Trades 16 150,000 Bolivar/Rotterdam 37.25 31.80 41.3044,615 118,395 143,047 122,983 99,026 WEAKER -19.5% 16 150,000 Hay Pt./Rotterdam 50.50 48.85 51.6229,153 74,104 84,753 78,418 72,571 SOFTER -7.5% 16 150,000 R.Bay/Rotterdam 36.65 35.00 39.0531,049 77,188 87,245 76,673 70,321 WEAKER -8.3% 16 150,000 Indonesia/Rotterdam 37.00 35.35 38.5731,454 77,334 78,754 71,848 65,964 WEAKER -8.2% 16 150,000 Hay Pt./Japan 17m 31.25 29.60 34.5739,620 93,598 129,199 110,013 100,533 WEAKER -8.6% 16 Ave. Earnings, 1999/00-built 44,732 111,380 134,351 116,542 104,933 WEAKER -10.0% 17 Ave. Earnings, 1990/91-built 37,149 94,814 113,943 99,638 90,371 WEAKER -9.3% Note: Earnings on the Hay Pt./Japan coal route have been re-evaluated on the basis of a revised voyage calculation. Panamax Single $ Per Ton Average Earnings $ Per Day Panamax Market Voyage...... Aug 22 Aug 29 20082006 2007 2008 Aug 22 Aug 29 This Week ... Coal Trades 18 70,000 H.Rds/ARA 33.00 34.00 37.6523,270 57,655 72,287 59,415 61,089 STEADY 2.8% 18 70,000 USGulf/ARA 40.90 43.75 48.1014,504 39,731 62,757 49,269 53,342 FIRMER 8.3% 18 70,000 Bolivar/ARA 37.40 39.80 44.1121,124 55,479 69,432 53,754 57,704 FIRM...... 7.3% 18 70,000 Newcastle/Cont 50.00 49.00 59.5922,330 43,522 45,328 32,453 30,233 SOFTER -6.8% 18 70,000 Richards B./Rott 37.40 37.25 42.9821,538 46,811 52,750 40,781 39,611 STEADY -2.9% 18 70,000 Roberts Bank/Japan 32.30 31.30 40.4425,400 51,522 59,271 41,576 38,646 SOFTER -7.0% 18 70,000 Newcastle/Japan 30.50 29.50 37.7123,264 52,606 53,366 37,503 34,585 SOFTER -7.8% 18 55,000 Roberts Bank/Rott 50.00 49.00 58.8821,748 43,003 45,607 33,161 30,835 SOFTER -7.0% 18 70,000 Indonesia/Rotterdam 36.50 34.50 43.5320,186 46,472 44,346 31,617 27,468 WEAKER -13.1% Grain Trade (Supramax) 19 49,000 USGulf/Japan(HSS)* 109.00 105.00 116.00- 53,323 73,669 67,865 63,271 SOFTER -6.8% 18 Ave. Earnings, 1997/98-built 21,714 49,349 57,772 43,618 43,245 STEADY -0.9% 19/20 Ave. Earnings, 1980's-built 19,394 45,857 53,411 39,554 39,177 STEADY -1.0% *This route replaces the Panamax grain routes, which are no longer reported and are not included in average earnings from start 2007 onwards. "Average Earnings" are timecharter equivalents of spot freight rates, excluding waiting time off-hire etc., for standard routes/ships, for which see the "Sources & Methods" document on our website, "SIN 2005" (www.clarksons.net). Standard Ships are indicated by the figures on the left, e.g. Modern Capesize = Standard Ship no.13. Clarkson Research Services Page 4 29-Aug-08 Tripcharter Market, Freight Futures, & Bunkers 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Panamax Average Earnings $ Per Day Panamax Market Tripcharter... 2006 2007 2008 Aug 01 Aug 08 Aug 15 Aug 22 Aug 29 This Week .... Cont/Far East 24,548 62,150 83,314 80,000 71,000 72,500 69,000 70,000 STEADY 1.4% TransPacific R/V 25,195 54,908 57,386 52,500 43,000 41,000 35,000 33,000 SOFTER -5.7% Far East/Cont 24,264 51,782 47,271 42,000 34,000 33,500 31,000 30,000 SOFTER -3.2% TransAtlantic R/V 22,447 58,894 73,000 69,000 61,000 62,000 58,000 61,000 FIRM...... 5.2% Average Panamax Earnings 24,073 56,933 65,243 60,875 52,250 52,250 48,250 48,500 STEADY 0.5% Clarkson P'max Trip Index 243 575 659 615 528 528 488 490 STEADY 0.5% *Rates are for a Panamax vessel based on the Baltic standard BPI vessel.

Handymax Average Earnings $ Per Day Handymax Market Tripcharter…* 2006 2007 2008 Aug 01 Aug 08 Aug 15 Aug 22 Aug 29 This Week .... Cont/Far East 21,757 49,430 67,336 60,500 58,000 56,000 55,000 53,500 STEADY -2.7% TransPacific R/V 24,075 44,675 46,950 44,500 39,000 35,000 39,500 40,000 STEADY 1.3% Far East/Cont 24,725 44,563 40,764 40,000 34,000 31,250 34,500 34,500 STEADY 0.0% TransAtlantic R/V 20,502 51,660 61,121 54,000 50,000 48,000 49,000 46,500 SOFTER -5.1% Average Earnings 52,000 dwt 22,583 47,582 54,021 49,750 45,250 42,563 44,500 43,625 STEADY -2.0% Average Earnings 45,000 dwt 20,373 42,583 47,788 44,250 40,375 38,000 39,563 38,750 STEADY -2.1% Clarkson Handymax Index 273 575 653 601 547 514 538 527 STEADY -2.0% * 52,000 dwt "Supramax" unless stated

Baltic Freight Indices Baltic Panamax Index Trends BPI BCI BSI BDI 12,000 7524 8388 30-Jul 13077 4953 10,000 31-Jul 7517 13005 4897 8341 7468 8280 01-Aug 12944 4827 8,000 2005 04-Aug 7401 12838 4779 8209 2006 7288 8100 2007 05-Aug 12695 4686 6,000 06-Aug 7075 12244 4605 7869 2008 6835 7521 07-Aug 11456 4511 4,000 08-Aug 6612 10720 4450 7201 6375 7055 11-Aug 10581 4389 2,000 12-Aug 6178 10695 4307 6992 6094 7097 13-Aug 11256 4227 0 Week No. 6248 7420 14-Aug 12240 4200 1 3 6 8 10 13 15 18 21 23 26 28 30 33 35 38 40 43 45 47 50 15-Aug 6379 12581 4198 7557 18-Aug 6465 12673 4229 7622 FFA Indications at close …..…… 28-Aug 19-Aug 6467 12337 4288 7543 Basis Closing Mid Price 20-Aug 6330 11710 4370 7344 Index Aug Sept Cal'09 21-Aug 6174 11331 4392 7190 BPI 1A TransAtlantic R/V, $/day 57,613 22-Aug 6080 11291 4387 7147 BPI 2A USGulf/Far East, $/day 69,298 69,500 71,500 26-Aug 6012 11263 4379 7115 BPI 3A TransPacific R/V, $/day 33,815 39,000 49,000 27-Aug 5978 11120 4349 7050 BCI 7 Bolivar/Rott $/ton 35.53 40.00 41.25 28-Aug 5951 10820 4291 6929 BCI 4 R.Bay/Rott $/ton 35.57 36.00 38.00 Max Value 7524 13077 4953 8388 Cape TC Average $/day 119,918 118,250 Min Value 5951 10581 4198 6929 P'max TC Average $/day 47,710 55,250 Avg Value 6593 11851 4463 7522 S'max TC Average $/day 44,872 45,000

Regional Bunker MDO 380cst Bunkers Markets ..... Avg. To Date Aug Aug Avg. To Date Aug Aug This Week .... 2007 2008 22 29 2007 2008 22 29 (380cst) Rotterdam 572 960 1034 953 346 539 620 650 HIGHER 4.8% Genoa - - - - 369 560 643 676 HIGHER 5.2% Philadelphia 686 1057 1038 1030 371 569 648 661 HIGHER 2.1% Houston 610 1027 1003 1058 353 560 638 662 HIGHER 3.8% Cristobal 691 1128 1325 1325 369 582 650 708 HIGHER 9.0% Los Angeles 711 1057 985 1165 382 592 669 673 HIGHER 0.6% Japan 606 1010 1095 1123 419 641 723 763 HIGHER 5.5% Singapore 623 1037 979 992 374 573 666 705 HIGHER 5.9% Fujairah 666 1101 1245 1205 375 579 688 721 HIGHER 4.9%

Clarkson Research Services Page 5 29-Aug-08 Gas & Chemical Markets

LPG Average 2008 LPG Market LPG Charter Rates, $'000/month Market…. 2006 2007 Jun Jul 29 Aug Trends… 1,800 Voyage Rates ($/mt) 1,600 78000m³ TCE, 44/46K mt AG/Japan* 46.71 37.07 59.63 74.00 68.00 WEAKER. -8% AG - Japan T/C Equivalent, $/day 1,400 82,000m³ modern + n/a 31,398 37,645 50,138 43,563 WEAKER. -13% 1,200 78,000m³ modern 37,327 23,019 37,069 48,083 41,754 WEAKER. -13% 12 mths T/C, $/day 1,000 82,000m³ modern + n/a 24,288 23,343 24,042 26,466 FIRMER.. 10% 800 78,000m³ modern 37,727 25,455 22,316 22,891 25,316 FIRMER.. 11% 59,000m³ modern" 35,394 32,207 29,425 28,932 29,590 STEADY... 2% 600 54,000m³# 29,931 26,395 23,959 24,658 19,726 WEAKER. -20% 35,000m³ 33,247 30,677 28,192 28,603 28,275 STEADY... -1% 400 78,000m³, 24,000m³ 27,588 28,483 27,946 27,699 27,617 STEADY... 0% 200 1 Yr t/c 22,000m³ Semi-Ref + n/a 29,836 29,918 30,247 30,576 STEADY... 1% 15,000m³ Semi-Ref 22,353 28,395 23,014 23,014 23,014 STEADY... 0% 0 8,250m³ Ethylene 19,967 23,684 21,370 21,370 21,370 STEADY... 0%

3,500m³ Pressure (East) n/a 7,846 7,891 7,767 7,726 STEADY... -1% Jul-08 Apr-08 Oct-06 Oct-07 Jan-07 Jun-07 Jan-08 Mar-07 Feb-07 Feb-08 Nov-06 Sep-06 Aug-08 Aug-07 Sep-07 Dec-07 3,200m³ Semi-Ref 9,939 20,885 10,192 10,192 10,192 STEADY... 0% May-07 May-08 * 44K mt for 78K vessel/46K mt for 82K vessel. + Annual data is for end-2007. " 57,000m³ till end 2007. #52,000m³ till end 2007. • With the end of the month rapidly freight rates are under some pressure, • With around 18 vessels currently approaching and in the hope of a more are waiting before moving to secure showing open for September, the Baltic favourable correction in CP (contract cover. Index has lost a couple dollars, slipping prices), products traders appear to have • Having said that, several charterers to the mid-$60s per metric tonne. How- been taking a wait-and-see attitude to with cargoes to move in the next few ever, this still represents healthy earn- fixing vessels over the course of the weeks obviously felt it prudent to take ings for shipowners. week. action and despite the general lack of • Freight enquiry has therefore been activity, three vessels were confirmed at sporadic and has not been helped by the healthy levels. Two of the fixtures in- fact that potential charterers, seeing that volved cargoes to be lifted in the West.

Chemicals Average 2008 Chem Market Chemical Freight Rates, $/mt Markets…. 2006 2007 Jun Jul 29 Aug Trends… 105 basis Voyage Rates ($/mt) 95 5,000mt 10,000 AG/WCIndia 24.45 30.85 33.63 35.75 34.00 SOFTER... -5% Easychems 15,000* AG/Far E. 47.42 54.42 70.50 71.25 72.50 STEADY... 2% 85 15,000* AG/Med 47.42 54.42 82.25 84.75 84.00 STEADY... -1% 5,000 Rott/Houston 51.14 43.75 44.38 45.00 50.00 FIRMER.. 11% 75 10,000 Rott/Houston 42.94 38.18 38.88 39.75 46.00 FIRMER.. 16% 65 1,000 ~ Rott/Far E. 99.14 100.61 104.75 104.50 104.00 STEADY... 0% 2,000 ~ Rott/Far E. 91.27 91.48 95.88 95.50 95.00 STEADY... -1% 55 3,000 Rott/Far E. 85.57 88.45 90.75 89.50 87.00 STEADY... -3% 45 5,000 Rott/Far E. 80.89 85.82 85.75 84.50 84.00 STEADY... -1% Rott/Far E. 2,000 ~ Houston/Rott 57.60 67.88 68.00 70.50 75.00 FIRM... 6% 35 3,000 Houston/Rott 48.20 62.74 64.75 66.25 68.00 STEADY... 3% Houston/Far E. 5,000 Houston/Rott 42.31 53.85 59.50 61.00 62.00 STEADY... 2% 25 2,000 ~ Houston/Far E. 77.47 83.81 87.75 95.50 98.00 STEADY... 3% 5,000 Houston/Far E. 54.28 69.24 70.75 82.00 80.00 STEADY... -2% Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 10,000 Houston/Far E. 51.05 65.03 68.00 76.00 76.00 STEADY... 0% Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Easychems except for: * Chemicals. ~ Stainless Steel. • Prices in the Asian polypropylene to $1,725/mt CFR Far East Asia. • India’s Pasupati Acrylon and and polyethylene markets continued to • Samsung Total Petrochemicals is Indian Acrylics have shut their acrylic fall this week, with prices dropping operating its new propylene plant at fibre plants temporarily because of poor $10-30/mt w-o-w as there was no major Daesan, South Korea at a lower-than- production margins. Pasupati Acrylon post-Olympic demand recovery. On expected rate of 60% and is therefore shut its 32,000mt/year AF plant in Wednesday, PP raffia/injection prices unable to sell spot cargoes in the near- Punjab state, to the north of Delhi on dropped $30/mt w-o-w to $1,675/t CFR term. The plant’s run rate is being 11th-12th August, while Indian Acrylics Far East Asia, while film-grade high hindered by a shortage of raffinate shut its 40,000mt/year AF plant at density PE prices edged down $10/mt feedstock from supplier, Lotte Daesan. Sangrur, to the east of Delhi this week.

Clarkson Research Services Page 6 29-Aug-08 Liner & Offshore Markets Liner Market Rates ($,000's/day) Liner Market News

36 • The A.P. Moller-Maersk group has reported its 1H 2008 1,700 teu FCC financial results. Its container shipping division Maersk Line, 32 725 teu FCC which is the largest liner operator in the world, made a profit 28 1,000 teu FCC of $73 million in 1H 2008, compared to a loss of $219 million 17,000 dwt MPP in the equivalent period of 2007. However, the 2008 figure 24 was significantly boosted by ship sales, which reportedly 20 totalled $327 million. CSCL has also announced its 1H 2008 interim financial results, with profits falling by 44% year-on- 16 year to Yuan 637.2 million. Like Maersk Line, CSCL was able to increase its revenue, with sales growing by 5.2% y-o-y 12 to reach Yuan 18.4 billion, but a sharp increase in costs 8 undermined overall profitability. • 4 Rapid growth in containerised imports from Asia has boosted box throughput at the Dutch port of Amsterdam. In the first half of 2008, the port handled 0.2 million TEU, an Feb-05 Feb-06 Feb-07 Feb-08 Aug-04 Nov-04 Aug-05 Nov-05 Aug-06 Nov-06 Aug-07 Nov-07 May-05 May-06 May-07 May-08 increase of 19.4% on the equivalent period in 2007.

Container / MPP / Average 2008 Liner Markets .... Short Sea Markets 2004 2005 2006 2007 May Jun Jul Aug Trends…* Container Vessels ($/Day) Feedermax, 725 teu grd. 9,888 12,775 9,817 9,054 8,300 8,200 8,000 8,000 STEADY... -3% Handy, 1,000 teu grd. 14,475 17,700 12,350 12,500 12,150 11,750 11,500 11,500 SOFTER... -5% Handy, 1,700 teu grd. 23,108 27,146 17,079 16,613 17,500 17,000 16,000 16,000 WEAKER... -8% Sub-P'max, 2,000 teu g'less 26,267 28,750 18,392 19,696 19,500 18,500 18,000 18,000 WEAKER... -10% Sub-P'max, 2,750 teu g'less 33,850 34,813 22,646 26,292 27,500 23,000 22,000 22,000 WEAKER... -22% Panamax, 3,500 teu g'less 35,621 38,427 26,583 29,958 31,000 29,500 27,000 27,000 WEAKER... -12% MPP Tonnage ($/Day) 17,000 dwt, grd. 1 yr. t/c(liner) 11,321 14,983 12,083 14,792 21,500 22,000 22,000 22,000 FIRM...... 6% 9,000 dwt, 1 yr. t/c (liner) 8,842 12,213 10,192 10,708 14,000 14,000 14,000 14,000 STEADY... 2% European Short Sea 3,000dwt($/t) ECUK/ARAG - N.Spain 25.67 24.40 21.64 28.61 37.45 36.19 36.31 33.00 WEAKER... -9% French Bay - ECUK 13.71 12.64 13.03 16.07 21.05 21.06 20.19 17.50 WEAKER... -13% Lower Baltic - ARAG 22.49 18.33 15.97 22.53 33.10 32.69 31.25 27.00 WEAKER... -14% UK/ARAG - W.Med 33.23 34.00 32.19 37.00 50.60 50.19 48.69 48.50 STEADY... 0% W.Med - UK/ARAG 26.76 25.77 25.86 29.69 43.20 43.50 42.31 40.00 SOFTER... -5% *3 mth trend for Container + MPP markets, Change since previous month for Short Sea. See www.hcshipping.co.uk for Short Sea market report

Offshore Vessel Average 2008 Offshore Market … Market 2004 2005 2006 2007 May Jun Jul 29 Aug This Month AHTS 7-12,000 Bhp 6,932 15,927 40,706 34,122 10,800 26,375 35,000 25,000 WEAKER!!... -29% AHTS 12,000+ Bhp 9,294 25,072 55,935 51,559 17,528 33,557 41,408 45,750 FIRMER... 10% PSV < 3,000 Dwt 5,981 13,593 22,170 21,601 12,150 12,450 16,000 18,000 FIRMER... 13% PSV > 3,000 Dwt 8,520 17,168 26,119 26,074 15,694 18,832 23,971 23,857 STEADY... 0% Note: Rates are based on the averages of reported fixtures in the North Sea in £/day, supplied by One Offshore UK Ltd.

Offshore Fleet No. Vessels, end AHTS Freight Rates £,000/day & Orderbook…. 2005 2006 2007 Jul-08 140 Fleet:* 120 AHTS >12,000Bhp Anchor Handling Tug/Supply 1,907 1,992 2,100 2,148 100 PSV/Supply 1,571 1,643 1,720 1,760 80 Crew/Workboat 368 373 380 380 3-week moving average Other Types 1,630 1,653 1,691 1,708 60 All Offshore Vessels 5,476 5,661 5,891 5,996 40 Orderbook: 20 Anchor Handling Tug/Supply 204 400 549 547 PSV/Supply 155 239 281 261 0 Crew/Workboat 9132331 Other Types 68 141 203 216 Jan-05 Jan-06 Jan-07 Jan-08 Sep-04 Sep-05 Sep-06 Sep-07 All Offshore Vessels 434 793 1056 1,055 May-05 May-06 May-07 May-08 * As of 1st February 2006, our coverage of the offshore fleet has been expanded. Clarkson Research Services Page 7 29-Aug-08 Secondhand Prices

Oil Tanker End Year, $m Three Month Asset Play in Focus Prices… 2005 2006 2007 Aug Trend… Long Term Price Trends 310,000 dwt d/h * Resale 140.0 140.0 155.0 195.0 FIRMER... 12% 550 Index, Start 2000 = 100 300,000 dwt d/h 5 yrs 117.0 118.0 135.0 165.0 FIRMER... 9% 300,000 dwt d/h 10 yrs 90.0 96.0 110.0 135.0 FIRM.... 5% 500 STEADY... -3% 250,000 dwt s/h 15 yrs 37.0 39.0 59.0 42.0 450 Bulkers 160,000 dwt d/h " Resale 87.0 94.0 102.0 120.0 FIRMER... 9% 150,000 dwt d/h 5 yrs 75.0 82.0 92.0 105.0 FIRM.... 6% 400 Tankers 150,000 dwt d/h 10 yrs 65.0 71.0 74.0 85.0 STEADY... 2% 350 105,000 dwt d/h Resale 70.0 75.0 80.0 89.0 FIRMER... 8% 105,000 dwt d/h # 5 yrs 63.0 66.5 70.0 79.0 FIRMER... 9% 300 95-97k dwt d/h 10 yrs 54.0 53.0 60.0 64.0 FIRM.... 6% 250 95-97k dwt d/h ^ 15 yrs New timeseries 44.0 FIRM.... 3% 70,000 dwt d/h 5 yrs 48.0 56.0 60.5 60.0 STEADY... 1% 200 65,000 dwt d/h 10 yrs 39.0 42.0 50.5 50.0 STEADY... 0% 150 65,000 dwt s/h 20 yrs 8.5 11.0 12.0 12.0 STEADY... 0% 47,000 dwt d/h ~ 5 yrs 47.0 47.5 52.0 54.0 STEADY... 3% 100 45,000 dwt d/h 10 yrs 38.0 39.0 42.0 44.0 SOFTER... -4% 50 45,000 dwt d/h 15 yrs 23.0 27.0 28.0 32.0 SOFTER... -4% 45,000 dwt s/h 20 yrs 10.0 13.0 10.0 10.0 STEADY... 0% 37,000 dwt d/h § 5 yrs 40.0 44.0 44.5 47.0 STEADY... 0% '98 Jul '99 Jul '00 Jul '01 Jul '02 Jul '03 Jul '04 Jul '05 Jul '06 Jul '07 Jul '08 Jul 35,000 dwt d/h 10 yrs 21.0 31.0 36.0 37.0 STEADY... 0% 5-y-o Tanker Index 233 248 266 284 FIRM.... 3% Short Term Tanker Trends 12 month Change 17% 6% 7% 6% 0% 40% % Year on Year Before Mar-08: *300k dwt "150k dwt #95-97k dwt ^86k dwt s/h ~45k dwt §35k dwt 35% Bulkcarrier End Year, $m Three Month 5-year-old Tanker 30% Price Index Prices... 2005 2006 2007 Aug Trend… 25% Percentage Change 170,000 dwt 5 yrs 57.0 81.0 150.0 153.0 FIRM.... 4% Year-On-Year 150,000 dwt 10 yrs 38.0 62.0 105.0 116.0 FIRM.... 4% 20% 150,000 dwt 15 yrs 28.0 43.0 88.0 92.5 STEADY... 2% 15% 150,000 dwt * 20 yrs 18.5 21.0 59.0 70.0 FIRMER... 11% 73,000 dwt 5 yrs 29.5 45.5 88.5 88.0 FIRM.... 5% 10% 72,000 dwt 10 yrs 24.0 37.0 72.0 77.0 FIRM.... 7% 5% 69,000 dwt 15 yrs 18.5 27.5 61.0 61.0 FIRM.... 8% 60,000 dwt 20 yrs 10.5 16.0 44.5 45.0 FIRM.... 7% 0% 52,000 dwt 3 yrs 29.5 42.5 75.0 75.0 STEADY... 1% 52,000 dwt 5 yrs 25.5 40.0 75.0 72.0 STEADY... 3% -5% 42-45,000 dwt 10 yrs 20.5 32.0 60.0 61.0 STEADY... 1% -10% 42-45,000 dwt 15 yrs 16.5 22.0 46.5 50.0 STEADY... 0% 42-45,000 dwt 20 yrs 10.0 15.5 36.0 37.0 STEADY... 2% Jul '05 Jul '06 Jul '07 Jul '08 Jul Apr '06 Apr '07 Apr '08 Apr Oct '05 Oct '06 Oct '07 28-30,000 dwt 5 yrs 26.0 28.5 44.0 53.0 FIRMER... 8% Jan '06 Jan '07 Jan '08 28-30,000 dwt 10 yrs 19.0 23.0 40.0 46.0 FIRM.... 6% Short Term Bulk Trends 28-30,000 dwt 15 yrs 15.0 18.0 33.0 37.0 FIRMER... 9% % Year on Year 27,000 dwt 20 yrs 8.0 11.5 26.0 30.0 FIRMER... 17% 5-y-o Bulker Index 178 239 423 445 FIRM.... 5% 90% 5-year-old Bulker 12 month Change -4% 34% 77% 22% Price Index Before Oct-05: *120-130k dwt 70% Percentage Change Year-On-Year Container & End Year, $m Three Month 50% Ro-Ro Prices 2005 2006 2007 Aug Trend … 3,500 teu 10 yrs 37.0 41.0 49.5 48.3 SOFTER... -4% 30% 1,700 teu 10 yrs 24.5 24.5 26.5 27.0 STEADY... -2% 725 teu 10 yrs 12.5 13.0 14.0 15.8 STEADY... -2% 10% 10-y-o Container Index 115.7 120.8 136.8 140.5 STEADY... -3% Ro-Ro 2,500 lm* 10 yrs 22.0 23.3 25.0 22.8 WEAKER.. -11% Ro-Ro 1,250 lm* 10 yrs 13.5 14.5 15.5 16.3 STEADY... 1% -10% *Ro-Ro prices in euros, historical data converted using historical exchange rates Clarkson End Year, $m Three Month -30% Index … 2005 2006 2007 Aug Trend … Jul '05 Jul '06 Jul '07 Jul '08 Jul Apr '06 Apr '07 Apr '08 Apr Oct '05 Oct '06 Oct '07 Oct ALL VESSELS 156 179 226 246 FIRM.... 4% Jan '06 Jan '07 Jan '08 The 3 month trend is the average of the last three months over the previous three months. All bulk indices have been re-based to start 2000 = 100. 0 0 0 Clarkson 0Research Services0 0 0 0 0 Page 8 29-Aug-08 Sale & Purchase Market

Tankers: Sales Volumes & Values $m. No. Clients of the Centrofin group have acquired a resale Aframax from 7,000 220 Benor tankers for $85.0m. The vessel in question is scheduled to be 6,500 200 6,000 delivered from the Tsuneishi Shipyard in Japan during August 2009 and Value 180 5,500 will be built to a 107,500 dwt specification with a 42 metre beam. Whilst 5,000 160 the sale was concluded a few weeks ago it is still a fair indication of 4,500 140 current resale values, which remain stable despite the temporary August 4,000 120 lull in the chartering markets. Continuing with the Aframax theme there 3,500 are unconfirmed reports that the “LEONIS” (94,225 dwt, built 1994 100 3,000 Fincantieri) has been sold to undisclosed buyers for a price approaching 2,500 80 $36.0m. 2,000 60 1,500 40 In the MR sector, United Arab Chemical Carriers have agreed to 1,000 Volume purchase two vessels from clients of D'amico Societa Di Navigazione. 500 20 The “HIGH CONSENSUS” and “HIGH HARMONY” (both about 0 0 45,900 dwt, built 2005 Shin Kurushima) have been acquired for $56.5m. Earlier in the year the D’amico group were involved in the sale of two Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Aug-03 Dec-03 Aug-04 Dec-04 Aug-05 Dec-05 Aug-06 Dec-06 Aug-07 Dec-07 sister vessels when the ex-“HIGH TRUST” and ex-“HIGH PEACE” (built 2004) were sold to Vietnamese interests for about $55.0m. Tanker Y-t-d Jul Dry Cargo: 2007 2008 2008 Sales* .... The big news this week was that Grand Union, Greece have arranged a Type: VLCC 52 25 5 reverse merger involving the sale of 20 dry bulkcarriers to Canadian Suezmax 42 27 9 based-IPO buyer Tailwind Financial. The buyers were originally looking Aframax 66 57 5 to invest in the financial services sector, but instead have opted to form Handy/Pmax 229 145 17 Total No. Sales 389 254 36 what will become a full time, integrated ship owning and ship Total DWT (,000) 35,596 22,314 4,006 management business. The fleet sale is thought to include nine new Total Value ($ m) 14,507 9,892 1,754 building orders for delivery in 2010 and 2011 and 11 trading vessels. Revised: Suezmax = 120-200k dwt, Aframax = 80-120k dwt Bulker Y-t-d Jul In the Panamax sector clients of Atlantska Plovidba have sold the “JADRAN” (70,946 dwt, built 1982, Brod. 3 Maj) for $27.0m to a Sales* .... 2007 2008 2008 Chinese buyer. In the Supramax sector, the “VICTORIA I” (55,303 dwt, Type: Capesize 90 32 7 built October 2008 Zhejiang Jiantiao) has been sold by clients of Tanto Panamax 180 60 5 Intim Line to an undisclosed buyer for the interesting price of $72.0m. Handymax 185 67 11 On older Handymaxes, the Greek-controlled “CUSTODIA ATHENA” Handysize 294 123 12 (41,084 dwt, built 1985 Sanoyas, C4X25T) has been sold for $34.0m Total No. Sales 749 282 35 with a charter-free delivery in October 2008. Following on from this sale Total DWT (,000) 44,871 16,344 2,472 has been the disposal by Cosco Bulk of the “SEA CROWN” (43,681 Total Value ($ m) 26,176 12,353 1,753 dwt, built 1984 Tsuneishi Zosen, C4X25T) for $29.0m with a prompt delivery. The difference is thought to relate to the condition on Y-t-d Jul Other inspection and the surveys coming due in April 2009. In the Handysize Sales .... 2007 2008 2008 sector the “VOYAGER V” (25,057 dwt, built 1982 Hyundai H.I., Total No. Sales 826 470 56 C3X20T) has been sold for $10.5m with delivery in October 2008. The Total dwt (,000s) 11,316 5,351 435 vessel is non-IACS classed which may be a contributory factor to the Total Value ($ m) 12,166 8,816 393 low price.

Total Y-t-d Jul Baltic Sale & Purchase Assessments (weekly) (Based on max. 5-year old vessels, as published by the Baltic Exchange) 2007 2008 2008 Sales ..... As of 26th August 2008. Buyers: Greece 370 143 22 VLCC (305,000 DWT): $162.900m Norway 115 40 1 Aframax (105,000 DWT): $77.229m Germany 32 10 1 MR Product tanker (45,000 DWT): $53.421m China P.R. 84 72 11 Capesize (172,000 DWT): $153.225m UK 69 50 5 Panamax (74,000 DWT): $88.275m South Korea 85 28 5 Total No. Sales 1,973 1,040 129 Super Handy (52,000 DWT): $72.767m Total Dwt (,000) 91,908 44,666 6,987 ALL DATA AND INFORMATION IN THIS REPORT ARE AS Total Value ($m.) 52,937 31,568 3,941 REPORTED UP TO NOON ON THE DATE OF PUBLICATION Average $/Dwt 576 707 564 * Includes vessels over 10,000 dwt only. Sales of bulk vessels under 10,000 dwt and of non-bulk vessels are included in "Other Sales". Clarkson Research Services i 29-Aug-08 Recent Ship Sales by Vessel Type

Vessel Type Vessel name Dwt/Unit Blt. Yard Date Price $m. Buyers Tanker D/Hull Leonis 94,225 1994 Fincantieri 29-Aug 36 Undisclosed interests Tanker D/Hull N/B RESALE HULL 1408 107,500 2009 Tsuneishi Zosen 28-Aug 85 Clients of Centrofin Tanker D/Hull High Consensus* 45,896 2005 Shin Kurushima 27-Aug 56.5 # Clients of United Arab Chem. Tanker D/Hull High Harmony* 45,913 2005 Shin Kurushima 27-Aug 56.5 # Clients of United Arab Chem. Tanker D/Hull Mikom Brave 45,869 2000 Shin Kurushima 22-Aug 44 Clients of Ancora Tanker S/Skin Ocean Opal 147,273 1993 A.E.S.A. 22-Aug 40 Chinese interests Tanker D/Hull N/B RESALE HULL 1100* 316,000 2009 Waigaoqiao S/Y 15-Aug dely DEC/09 185 Clients of Hosco Tanker D/Hull N/B RESALE HULL 1102* 316,000 2009 Waigaoqiao S/Y 15-Aug dely JUNE/09 185 # Clients of Hosco Tanker D/Hull Tamara 97,793 1990 Koyo Dock K.K. 13-Aug dely OCT/08 39 Clients of Oceanfreight Tanker S/Skin Hellenic Star 29,999 1988 Shin Kurushima 08-Aug 9.35 Chinese interests Tanker D/Hull Sovereign 47,168 1992 Halla Eng. 08-Aug 26.5 Clients of Pratibha Tanker S/Skin Titan Aries 265,243 1988 Hyundai H.I. 05-Aug 37.5 Swiss interests Tanker D/Hull Akademik Vereshchagin 28,610 1989 Kherson Shipyd. 04-Aug 13.1 Undisclosed interests Tanker D/Hull Asari* 28,656 1984 Kherson Shipyd. 31-Jul 8.22 Greek interests Tanker D/Hull Bulduri* 28,647 1984 Kherson Shipyd. 31-Jul 8.22 # Greek interests Tanker D/Hull Meriom Breeze* 38,877 2004 Guangzhou S.Y. Int. 31-Jul undisclosed German interests Tanker D/Hull Meriom Ruby* 38,500 2008 Guangzhou S.Y. Int. 31-Jul undisclosed # German interests Tanker D/Hull Nordic Lisbeth 72,650 2006 Samsung H.I. 31-Jul 68.5 Undisclosed interests TankChem IMO II St.st Fairchem Pegasus 19,822 2004 Fukuoka S.B. 22-Aug 40 European interests TankChem IMO III Vinashin Energy 34,743 1999 Daewoo SB 04-Aug 36 Greek interests TankChem IMO II/III Meriom Topaz 50,500 2008 Guangzhou S.Y. Int. 31-Jul dely SEPT/08 62.5 Undisclosed interests Reefer 313100 cu.ft. Thorgull 6,325 1983 Shikoku Dock. 29-Aug 3 Undisclosed interests Pass./Car 710 pass. Palm Beach Princess 843 1964 Aker Finnyards 31-Jul 15 Undisclosed interests Offshore AHTS Boa Mammoth 3,000 2008 Amursky S.B. 27-Aug 74.25 Undisclosed interests Offshore Tug Gulf Condor 1981 Quality S.Y. 19-Aug undisclosed Clients of NorthLand Transp. Offshore PVS Viking Nereus 3,550 2004 Westcon A/S 08-Aug undisclosed Undisclosed interests Offshore AHTS Med Quattro 1,507 1974 Appledore S.B. 08-Aug undisclosed Egyptian interests Offshore AHTS Lady Dawn 2,112 1982 Bolsones Verft 04-Aug dely AUG/08 17 Clients of European Venture LPG 3500 cu.m Oriental Leo 3,213 1996 Shitanoe Zosen 21-Aug 9 Berlian Laju Tanker LPG 3,000 cu m Emerald Star* 7,200 1992 I.N.M.A. 13-Aug inc7yrsBBB 70 Norwegian KS interests Eth/LPG 3,000 cu m Ruby Star* 3,450 1990 Cant. De Poli 13-Aug undisclosed # Norwegian KS interests Eth/LPG 3,000 cu m Sapphire Star* 8,550 1991 Soc. Esercizio 13-Aug inc7yrsBBB # Norwegian KS interests Eth/LPG 3,000 cu m Diamond Star* 3,444 1991 Cant. De Poli 13-Aug inc7yrsBBB # Norwegian KS interests Dry MPP 367 teu. Bao Fu Men 16,251 1978 Usuki Zosensho 18-Aug undisclosed Undisclosed interests Dry MPP 568 teu. Natalie Bolten 12,998 2001 Jiangsu Yangzijiang 18-Aug 2yrsTCB@$13500 20.5 Italian interests Dry MPP 325 teu. Libra 6,158 1984 Zhonghua S.Y. 06-Aug undisclosed Undisclosed interests Dry Genl 2x20t dr. Jiang Jie 7,120 1980 Nishi S.B. Co. 22-Aug 3.9 Undisclosed interests Dry Genl 106 teu. Newfane 8,650 1991 Braila Shipyard 11-Aug 7.5 Undisclosed interests Dry Genl 3x15t dr. Alpha 7,678 1977 Mie S.B. Co. 31-Jul undisclosed Undisclosed interests Dry Genl 4x15t dr. Dimitris P 6,470 1983 Nishi S.B. Co. 31-Jul 11.75 Undisclosed interests Container 1560 teu Barzan 23,200 1999 Imabari S.B. 29-Aug 25.5 Clients of SeaChange Container 432 teu Palucca 5,270 1997 Mutzelfeldt 28-Aug undisclosed Undisclosed interests Container 327 teu F. Camellia 3,978 1996 Jiangsu Yangzijiang 28-Aug 4.1 Russian interests Container 844 teu Jacqueline 10,730 1995 Miho Zosensho 22-Aug 16 Indian interests Container 4,250 teu. N/B RESALE HULL 789* 53,500 2010 Jiangsu New YZJ 18-Aug inc8yrsTC@$28k 76 Clients of Global Ship Lease Container 4,250 teu. N/B RESALE HULL 790* 53,500 2010 Jiangsu New YZJ 18-Aug inc8yrsTC@$28k 76 # Clients of Global Ship Lease Container 2,474 teu. CSAV Peru 33,738 1998 Volkswerft 14-Aug DEC/2010TC@$21k 41 Greeks interests Container 1,118 teu. Pacific Voyager 13,760 2008 Jinling Shipyard 31-Jul 29 Undisclosed interests Container 1,608 teu. Pacific Trader 22,525 1996 Meeres-Technik 31-Jul 29 Undisclosed interests Bulk 4x36t cr. Victoria I 55,303 2008 Zhejiang Jiantiao 29-Aug 72 Undisclosed interests Bulk 3x25t cr Voyager V 25,057 1982 Hyundai H.I. 29-Aug delv Oct/08 10.5 Undisclosed interests Bulk 4x25t cr Custodia Athena 41,084 1985 Sanoyas 28-Aug delv Oct/08 34 Undisclosed interests Bulk 4x24t cr. Sea Crown 43,296 1984 Tsuneishi Zosen 28-Aug 29 Greek interests Bulk Lumber Vinashin Summer 21,340 1983 Shin Yamamoto 22-Aug inc6mthTC@15k 7.5 Hoang Son Bulk 3x25t cr. Maritime Songkhla 23,936 1979 Imabari S.B. 19-Aug 7.9 Undisclosed interests Bulk 4x30t cr. Vogekatja 23,994 1998 Kanda S.B. Co. 14-Aug TC@32000 39.6 Clients of Freeseas Bulk 4x25t dr. Glorius 23,050 1980 Hashihama Zosen 13-Aug 13 Greek interests Bulk Str. Ore. Jadran 70,946 1982 Brod. 3 Maj 12-Aug 27 Undisclosed interests Bulk Str. Hvy. Maple Valley 76,608 2005 Imabari S.B. 07-Aug DEC/2012TC@26k 63 Clients of Dryships Bulk 5x16t cr. Elpida 30,850 1984 Sunderland S.B. 06-Aug 21 Undisclosed interests Bulk 3x15t cr. Zografia 28,962 1978 Hakodate Dock 06-Aug 11.9 Undisclosed interests Bulk 3x30t cr. Sea Grace 18,325 2000 Shikoku Dock. 04-Aug 34 Turkish interests Bulk Str. Hvy. Cpt Costas 124,292 1981 Hitachi Zosen 04-Aug dely DEC/JAN09 18.5 Chinese interests * En bloc Sales. #En Bloc price shown under first ship of bloc Clarkson Research Services ii 29-Aug-08 Bulk Fleet Changes

Bulk Fleet Oil Tanker Fleet Bulk Carrier Fleet Combo Fleet Changes... 2007 2008 to date 2007 2008 to date 2007 2008 to date (No. Vessels ,000dwt) No. Dwt No. Dwt No. Dwt No. Dwt No. Dwt No. Dwt

Fleet 1st January 4,284 364,486 4,580 385,530 6,364 367,635 6,669 391,637 98 9,369 85 8,157

Changes: Deliveries 412 30,207 268 18,370 309 23,615 189 13,277 Sold For Scrap 75 3,031 56 3,590 13 421 2 32 Losses 110 6211127 Misc. Additions 20 1,541 11 481 21 1,277 48 4,668 2 206 Misc. Removals 60 7,662 54 8,525 6 257 4 118 15 1,419 Net Change During Year 296 21,045 169 6,736 305 24,002 230 17,768 -13 -1,212

Fleet End Yr/ Yr to Date 4,580 385,530 4,749 392,267 6,669 391,637 6,899 409,405 85 8,157 85 8,157 Vessels over 10,000 dwt only are included in the analysis in this table. Great Lakes Only vessels are excluded. Deliveries & Other Additions.. Type Date Vessel Name Flag Year Dwt Owner Shipyard & Yard No. Contracted Built Price Bulk Aug'08 Yvonne LI. 2008 56,300 Byzantine Maritime. I.H.I. 3242 $m 36.50 L.P.G. Aug'08 Gas Serenity H.K. 2008 3,500 Gram P.D. Taizhou Wuzhou Rfr Fish C. Aug'08 Polfoss AT. 2008 2,500 Eimskip Myklebust M.V. 51 $m 22.00 PSV Aug'08 Greatship Dhriti IN. 2008 3,240 Greatship India Aker Brattvaag 375 NKm 145.00 Container Aug'08 Flintercarrier NE. 2008 9,500 Flinter Groningen IHDA Shipbuild. 253 MPP Aug'08 MCP Salzburg CY. 2008 7,660 Hartmann Schiff. Shandong Huanghai HCY-62 LPG/Chem Aug'08 Syn Zania IT. 2008 4,026 Synergas S.r.l. Cant.Nav.Pesaro 122 Container Aug'08 Cala Pigafetta IT. 2008 37,125 Costa Cont. Line Szczecin. Nowa B178/32 MSV Aug'08 Skandi Seven NIS 2008 6,200 DOF Management Soeviknes Verft 703 PSV Aug'08 Sea Turbot M.I. 2008 3,250 Deep Sea Supply Cochin S.Y. BY-62 Container Aug'08 COSCO Nagoya PA. 2008 50,500 Itochu Corp. Samsung H.I. 1667 Container Aug'08 STX Melbourne PA. 2008 37,800 STX Pan Ocean Aker Ostsee 157 $m 51.57 Container Aug'08 Maren Maersk DIS 2008 100,000 Maersk Line Odense Lindo 213 Container Aug'08 Maersk Stockholm NE. 2008 102,000 Maersk Line Hyundai Samho S313 130.00 Container Aug'08 Kota Lambang SG. 2008 52,000 Pacific Int. Lines Dalian Shipbld. Ind. C4250-23 Container Aug'08 First Ocean MA. 2008 76,000 IRISL Hanjin H.I. N-180 $m 105.00

Container Aug'08 F. Camellia SG. 1996 3,978 Unknown Owner Misc.Add.Prev.Excld. GCargoAug'08 Qi Lin Men PA. 1991 7,033 Nanjing Ocean Shpg. Misc.Add.Prev.Excld. GCargoAug'08 Xin Min Men PRC 1979 5,639 Nanjing Ocean Shpg. Misc.Add.Prev.Excld. Ore Aug'08 Stellar Cosmo KO. 1992 269,581 TMT Co. Ltd. Misc.Add.Conv.In Bulk Aug'08 Shanghai Carrier KO. 1991 149,999 Sinokor Merchant Mar Misc.Add.Conv.In Ore Aug'08 K Cosmos PA. 1992 254,991 Korea Line Misc.Add.Conv.In Scrapping & Other Removals.. Type Date Vessel Name Flag Year Dwt Owner Breakers Ldt Price Built $/ldt $m. Reefer Aug'08 Nordic Star SV. 1980 9,300 Ost-West-Handel India 4,675 700.0 3.27 Container Aug'08 Red Sea MA. 1977 18,834 Dongnama Shipping Bangladesh 8,395 781.0 6.56 Chem & Oil Aug'08 Artemis GR. 1983 39,776 Livanos Group Bangladesh 9,710 Chem & Oil Aug'08 Achilleus GR. 1983 39,730 Livanos Group Bangladesh 9,748 Reefer Aug'08 Frio Kyknos PA. 1982 3,804 Laskaridis Shpg Bangladesh 2,000 MPP Aug'08 Kota Indah SG. 1976 24,580 Pacific Int. Lines Bangladesh 9,630 753.0 7.25 Container Aug'08 Glory D PA. 1978 13,527 Goldenport S/Mngt. Bangladesh 5,000 Bulk Aug'08 Little Angels PA. 1980 16,268 TMT Co. Ltd. Bangladesh 5,631 740.0 4.17 Tanker Aug'08 A Elephant LI. 1987 264,758 TMT Co. Ltd. Bangladesh 32,182 769.0 24.75 Products Aug'08 Cobra DM. 1982 27,841 Polembros Shpg. Bangladesh 7,500 800.0 6.00 Chem & Oil Aug'08 Neptun NIS 1976 28,060 Salhus Shipping AS India 8,500 1,175.0 9.99 Chem & Oil Aug'08 Lance NIS 1980 35,100 Salhus Shipping AS India 8,676 1,100.0 9.54 Pass/Car F. Aug'08 Jabal Ali 2 S.L 1971 2,553 Naif Marine Services India 6,069 700.0 4.25 Cruise Aug'08 Madagascar UE. 1960 622 OMIKS Ltd. India Reefer Aug'08 Dean MA. 1979 10,598 Lagoa Shipping Corp. India 6,725 Ro-Ro/Lo-Lo Aug'08 Dubai Islands SV. 1982 6,185 Emarat Maritime LLC India 2,548

Reefer Aug'08 Oceano Pacifico CU. 1969 3,943 Nexus Reefer Misc.Rem.Prev.Demol. Cement Jul'08 Sinar Andalas PA. 1998 6,501 Samudera Shpg. Line Misc.Rem Bulk Jul'08 Pacific Bang Chuan H.K. 1992 145,242 Pacific King Shpg. Misc.Rem.Conv.Out Bulk Jul'08 Pacific Bang Yu LI. 1989 146,184 Pacific King Shpg. Misc.Rem.Conv.Out Bulk Jul'08 Al Dhabiyyah UAE 1983 27,945 ADNATCO Misc.Rem.Conv.Out Bulk Jul'08 Zhen Hai PRC 1963 24,344 COSCO Qingdao Misc.Rem

Clarkson Research Services iii 29-Aug-08 Timecharter Fixture Record

Latest Tanker Timecharter Fixtures... Reported Charterer Vessel Name D / Year Dwt Spd Cons. Period Rate Delivery C Built $ per Day Date Place 22-Aug Petrobras High Glory C 2006 47,000 3 Yrs $ 22,300 22-Aug Petrobras High Power C 2004 45,900 16 3 Yrs $ 22,000 22-Aug Petrobras Elka Hercules C 2002 45,000 16 3 Yrs $ 22,250 22-Aug Petrobras Elka Sirius C 2005 45,000 15 3 Yrs $ 22,250 22-Aug Petrobras Kandava C 2007 37,290 12 Mths $ 22,750 14-Aug ICC Formosapetro Challenger D 2001 281,395 15 80 12 Mths $ 98,000 Aug 08 US Gulf 14-Aug ICC Genmar Harriet G D 2006 149,000 15 12 Mths $ 65,000 Aug 08 E. Coast Canada 14-Aug CNR Genmar Phoenix D 1999 153,015 16 15 Mths $ 65,000 Aug 08 Singapore 12-Aug Suez Intl Knock Sheen D 1998 159,899 15 67 15 Mths $ 55,000 Sep 08 12-Aug Teekay El Gurdabia D 2002 112,664 15 51 1-2 Yrs $ 39,500 Sep 08 12-Aug Teekay Intisar D 2002 112,668 15 51 1-2 Yrs $ 39,500 Sep 08 12-Aug Teekay Ebn Batuta D 2002 112,679 15 51 1-2 Yrs $ 39,500 Sep 08 12-Aug BPCL Ocean Sapphire D 1992 147,273 14 58 2 Yrs/1 Yr $ 23,750 Sep 08 Arabian Gulf 08-Aug OSG Knock Sheen D 1998 159,899 15 67 15 Mths $ 55,000 Aug 08 E. Coast Canada 07-Aug Petrobras Elka Apollon C 2005 101,970 16 3 Yrs $ 33,500 Aug 08 Brazil 07-Aug Petrobras Elka Aristotle C 2003 94,143 16 3 Yrs $ 33,500 Sep 08 UK/Continent 24-Jul Teekay Enrica Lexie D 2008 105,000 12 Mths $ 41,000 Aug 08 North China 11-Jul IOC Valiant D 1992 96,136 15 39 5/1/1/1 Mths Jul 08 EC I 11-Jul ST Shipping Poseidon M D 1995 96,125 14 38 6 Mths/6 Mths Aug 08 Singapore 10-Jul Teekay Ebn Batuta D 2002 112,679 15 51 1 Yr/1 Yr $ 39,500 Aug 08 Central Med. 10-Jul Teekay El Gurdabia D 2002 112,664 15 51 1 Yr/1 Yr $ 39,500 / More 10-Jul Teekay Intisar D 2002 112,668 15 51 1 Yr/1 Yr $ 39,500 / More 09-Jul Stena Emmanuel Tomasos D 2002 37,000 2 Yrs $ 21,750 09-Jul IOC Federal Ii D 1990 96,759 13 60 5 Mths $ 35,000 Jul 08 E. Coast India 08-Jul RBD Enrica Lexie D 2008 105,000 2 Yrs $ 35,000 Aug 08 North China 04-Jul Navig8 Vinashin Victory C 2001 47,084 15 35 1 Yr $ 23,000 02-Jul PDV Overseas Ambermar C 2002 35,970 15 6 Mths/6 Mths $ 26,700 Caribbean 02-Jul Shell Iver Excel C 1997 45,750 14 31 4 Yrs $ 21,000

Latest Dry Bulk Timecharter Fixtures... Reported Charterer Vessel Name Year Dwt Spd Cons. Period Rate Delivery Built $ per Day Date Place 28-Aug GMI Star Cosmo 2005 52,092 4-6 Months $50,000 08Sep-12Sep Japan 28-Aug Norden Angelina 2001 74,540 4-6 Months $58,000 01Sep-05Sep Rizhao 28-Aug Armada Hope Star 1995 28,294 3-6 Months $30,000 Prompt Port Kelang 27-Aug Chinese Chrts Linda Leah 1997 73,390 1 Years $67,000 01Sep-05Sep Dangjin 27-Aug Glory Wealth Yasa Dream 2008 207,000 2 Years $130,000 25Oct World Wide 22-Aug North China Shipping Zagora 2001 73,435 3-4 Months $57,000 27Aug-29Aug Kinuura 21-Aug NYK City 2007 53,000 3-4 Months $57,500 Prompt Algeria 21-Aug Pioneer Navigation Mineral Star 2005 76,286 3-5 Months $63,000 29Aug-31Aug Qingdao 20-Aug Glory Wealth Prem Varsha 2006 82,800 11-13 Months $73,700 27Aug-30Aug Caofedian 19-Aug CNR Navios Achilles 2001 52,063 3 Years $38,000 01Feb-28Feb World Wide 19-Aug CNR Navios TBN 2010 172,000 5 Years $57,000 01Jan-01Mar Far East 19-Aug CNR Navios TBN 2009 172,000 10 Years $41,325 01Oct-01Nov Far East 19-Aug Cosco Tianjin Navios Orion 2005 76,602 4 Years $49,500 01Apr World Wide 19-Aug Pacific Basin Wadi Alarab 1995 70,114 3-5 Months $60,000 Prompt Vietnam 18-Aug Swiss Marine Jiu Long Feng 2002 73,937 4-6 Months $62,000 21Aug-23Aug Xingang 15-Aug Harmony Shipping Dubai Ariana 2005 76,631 3 Years $54,500 01Dec-01Jan World Wide 15-Aug Armada Rubin Grace 1995 169,939 1 Years $135,000 02Sep-08Sep China 15-Aug Armada Yasa Unity 2006 75,621 3-5 Months $61,000 20Aug-25Aug Zhoushan 15-Aug Mittal Shipping Avra 2001 75,121 4-6 Months $62,500 19Aug-21Aug Fangcheng 15-Aug Norden Montrose 1962 5,558 3-4 Months $65,000 22Aug-28Aug Beilun 14-Aug Armada Go Patoro 1991 150,108 20-22 Months $112,750 01Sep-10Sep China 14-Aug CTP Samjohn Amity 1998 74,761 3-5 Months $77,000 27Aug-31Aug Jorf Lasfar 14-Aug North China Shipping Eleftheria 2001 76,058 7-9 Months $70,000 19Aug-22Aug Brest 13-Aug GMI Cymbeline 2001 73,060 3-5 Months $61,000 18Aug-21Aug Hong Kong 13-Aug Cargill Edelweiss 2004 74,000 3-5 Months $60,000 Prompt Lanshan 13-Aug GMI Amazon 2001 74,910 2-4 Months $60,000 Prompt Chiwan 12-Aug Hamburg Bulk Carriers Paros 1992 39,000 2 Years $34,500 25Aug Arabian Gulf

Clarkson Research Services iv 29-Aug-08 The Timecharter Market Tanker Timecharter Market 1 Year T/C... Average Rate $/day To Date Aug T/C Activity & The Freight Market 2005 2006 2007 2008 29 VLCC (early 2000s) 300,000 Dwt Modern 58,721 58,308 55,548 76,357 85,000 No. fixtures $,000/da 150,000 Dwt Modern 43,423 43,173 44,452 46,414 55,000 8 200 105,000 Dwt Modern 35,144 33,154 33,144 35,914 43,500 7 175 70,000 Dwt Modern 31,971 31,144 29,317 28,329 32,000 1 Year t/c 47,000 Dwt Modern 25,990 27,067 25,904 23,829 24,500 Spot $/day 37,000 Dwt Modern 23,587 24,731 23,269 22,114 22,250 6 150 285,000 Dwt Early '90s 47,635 48,221 42,154 53,229 62,500 140,000 Dwt Early '90s 35,038 32,462 29,500 30,057 35,000 5 125 95,000 Dwt* Early '90s 27,615 23,202 22,404 21,229 22,500 4 100 3 Year T/C... Average Rate $/day To Date Aug 2005 2006 2007 2008 29 3 75 300,000 Dwt Modern 47,288 47,279 48,385 59,457 70,000 150,000 Dwt Modern 35,856 38,087 38,577 40,329 45,000 2 50 105,000 Dwt Modern 28,346 28,635 29,625 30,543 34,500 70,000 Dwt Modern 26,058 27,096 26,913 26,250 28,000 1 25 47,000 Dwt Modern 21,803 22,279 23,288 22,600 23,500 37,000 Dwt Modern 19,582 20,712 21,317 20,457 20,750 0 T/C Activity.... Total Fixtures To Date Jul-06 Jul-07 Jul-08 Jan-07 Jan-08 Mar-07 Mar-08 Nov-06 Nov-07 Sep-06 Sep-07 ....over 1 year. 2004 2005 2006 2007 2008 May-07 May-08 VLCC 200,000 + 25 14 29 22 8 • Tanker timecharter activity this week… Suezmax 120-200,000 13 19 22 16 19 Aframax 80-120,000 51 40 40 34 34 Five tanker timecharters were reported to the market this Panamax 60-80,000 91016113week. All of them were for Handy vessels and were taken Handy 10-60,000 30 60 70 68 34 by Petrobras for one year or longer. The largest of these Total No. Fixtures 128 143 177 151 98 was the 2006 built, 47,000 dwt “HIGH GLORY”. It was Total in m. dwt 16.3 14.2 20.2 16.3 10.7 fixed for three years at a rate of $22,300/day. Modern is taken to mean no more than 10 years old. * Previously 87,000 dwt. Bulk Carrier Timecharter Market 1 Year T/C... Average Rate $/day To Date Aug T/C Activity & The Freight Market 2005 2006 2007 2008 29 Capesize (Modern) Capesize Modern 50,651 45,246 106,918 145,929 145,000 30 No. fixtures $,000/day 200 Panamax Modern 25,853 22,155 52,317 71,179 62,500 Super H'max Modern 22,288 21,881 45,702 57,714 52,500 1 Year t/c 180 Handymax Modern 19,111 19,432 39,870 48,893 44,000 25 Spot $/day 160 Handy Modern 15,918 14,710 28,120 36,964 33,250 Capesize "CSBC" 42,101 37,624 90,327 117,679 110,000 140 Capesize * 1980s 23,048 20,529 45,135 50,925 20 Panamax 1980s 18,228 15,236 40,926 59,021 48,500 120 3 Year T/C... Average Rate $/day To Date Aug 15 100 2005 2006 2007 2008 29 80 10 Capesize Modern 37,673 36,365 75,808 105,329 97,500 60 Panamax Modern 19,606 17,736 39,774 55,100 52,500 40 Super H'Max Modern 16,716 16,772 33,750 41,264 41,000 5 Handy Modern 12,578 12,520 21,863 26,043 26,500 20 Capesize "CSBC" 30,385 29,413 63,077 91,329 77,500 Panamax 1980s 12,438 10,101 28,168 37,571 30,000 0 T/C Activity.... Total Fixtures To Date Jul-06 Jul-07 Jul-08 Jan-07 Jan-08 Mar-07 Mar-08 Nov-06 Nov-07 Sep-06 Sep-07 ....over 1 year. 2004 2005 2006 2007 2008 May-07 May-08 Capesize 100,000 + 69 57 111 144 70 • Bulk carrier timecharter activity this week… Panamax 60-100,000 149 98 183 282 155 It has been a less active week than last, with just six Handymax 40-60,000 38 22 74 110 45 Handysize 10-60,000 10898 6fixtures reported. These were made up of one Capesize, Total No. Fixtures 266 185 377 544 276 four Panamaxes and two Handys. Four charters were for Total in m. dwt 24.6 18.2 36.1 51.4 26.3 periods of less than one year, including the 2005 built, * Tanker and bulk carrier T/C activity size ranges reflect existing CRSL ship type definitions. 52,092 dwt “STAR COSMO”. Modern is taken to mean no more than 10 years old. *Route no longer reported due to lack of liquidity. Clarkson Research Services Page 9 29-Aug-08 The Shipbuilding Market What's Been Ordered... SType Date Dwt/Unit Delivery Builder Price Owner/Manager* 5 Bulk Aug-08 81,000 Sep 2011 STX Shipbuild. $m 58.3 Emirates Trading 5 Bulk Aug-08 81,000Nov 2011 STX Shipbuild. $m 58.3 Emirates Trading 5 Tanker Aug-08 300,0002011 Mitsubishi H.I. Nippon Yusen Kaisha 5 MPP Aug-08 7,500 350Dec 2009 Dalian Shipbld. Ind. Jindal Steel 5 MPP Aug-08 7,500 3502010 Dalian Shipbld. Ind. Jindal Steel 5 MPP Aug-08 15,000 9002010 Dalian Shipbld. Ind. Jindal Steel 5 Tanker Aug-08 158,000Feb 2011 Sungdong S.B. GrandUnion Inc. 5 Tanker Aug-08 158,000Apr 2011 Sungdong S.B. GrandUnion Inc. 17 Tanker Aug-08 158,0002011 Sungdong S.B. GrandUnion Inc. 17 Tanker Aug-08 158,0002011 Sungdong S.B. GrandUnion Inc. 5 Products Aug-08 75,000Dec 2010 Sungdong S.B. GrandUnion Inc. 5 Products Aug-08 75,000Feb 2011 Sungdong S.B. GrandUnion Inc. 5 FPSO/LNG Aug-08 Dec 2012 Samsung H.I. SBM Production Cont. 5 Bulk Aug-08 35,000Jul 2010 Nantong Daoda Atlas Shipping A/S 5 Bulk Aug-08 35,000Oct 2010 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Jan 2011 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Apr 2011 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Jul 2011 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Oct 2011 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Jan 2012 Nantong Daoda Atlas Shipping A/S 17 Bulk Aug-08 35,000Apr 2012 Nantong Daoda Atlas Shipping A/S 5 Chem & Oil Aug-08 6,600Dec 2009 Okskaya Shipyard American Eagle Tnker 5 Chem & Oil Aug-08 6,600Dec 2009 Okskaya Shipyard American Eagle Tnker S=Status, where: 5=confirmed order, 16=unconfirmed order, 17=option. Other units are: teu for containerships, cbm for gas vessels, numbers of cars or passengers. * The Primary Reference Company, as used in the Clarkson Fleet Database i.e. the company with the main commercial responsibility for the ship. Newbuilding Year End, $m. Three Month Shipbuilding News • Prices .... 2005 2006 2007 Aug Trend ... The summer season has been more subdued in Tankers comparison to the last few years. In general, with most VLCC 320,000 dwt 120.0 129.0 146.0 160.0 FIRM...... 3.0% yards well committed through 2011, they retain the Suezmax 157,000 dwt 71.0 80.5 90.0 99.5 FIRM...... 3.2% upper hand. However, yards have reason to be a little Aframax 115,000 dwt 58.5 65.5 72.5 82.0 FIRM...... 3.5% nervous with the almost complete absence of significant Handy 51,000 dwt 43.0 47.0 52.5 53.5 FIRM...... 1.6% activity in the containership market. Boxships have been Bulk Carriers a consistent source of demand over the last few years and Capesize 180,000 dwt 59.0 68.0 97.0 99.0 FIRM...... 1.9% are responsible for over 50% of some of the big yards’ Panamax 76,000 dwt 36.0 40.0 55.0 55.0 SAME...... orderbooks. This absence is felt most acutely in the Handymax 57,000 dwt 30.5 36.5 48.0 48.5 SAME...... Panamax sector where a lack of containership demand Handysize 35,000 dwt 26.5 29.5 38.0 40.0 FIRM...... 3.0% together with the trend away from traditional Panamax Gas Vessels designs has left yards more exposed. Whilst yards have LPG 82,000m³ 90.0 92.0 93.0 96.5 FIRM...... 1.8% generally opted to sell dry ships to cover this exposure, LNG 160,000m³ 222.0 237.0 250.0 FIRM...... 1.5% this strategy is reliant on dry demand remaining firm for Dry Cargo Container 3,500 teu 48.5 51.0 63.0 67.0 FIRM...... 1.8% the rest of the year, which remains to be seen. Inflating Container 1,100 teu 23.0 22.0 27.5 27.5 SAME...... raw material costs are still present, but the recent Clarkson Index 162 168 184 190 FIRM...... 1.4% recovery in the US dollar has softened pricing pressure. Newbuilding Vessels Contracted Year-on-Year Newbuilding Price Index Activity .... 2005 2006 2007 2008 Trend ... 190 Index, Jan'88 = 100 Oil Tankers 269 583 316 221 FIRMER... 6% 180 Chemical & Spec. Tankers 325 570 613 123 WEAKER!! -70% 170 Combined Carriers 36 WEAKER!! -100% Ten year trend in LPG Carriers 105 82 68 45 WEAK...... 0% 160 newbuilding prices LNG Carriers 47 36 25 5 WEAKER!! -70% 150 Bulk Carriers 395 630 1768 760 WEAKER! -35% Containerships 567 484 534 179 WEAKER!! -49% 140 General Cargo vessels 354 369 322 181 WEAKER!! -15% 130 Ro-Ro Vessels 95 80 125 65 WEAKER!! -21% 120 Refrigerated Vessels 7498FIRMER... 34% Offshore Vessels 299 573 508 118 WEAKER!! -65% 110 FPSO/FSU 9582WEAKER!! -62% 100 Passenger & Cruise Ships 55 39 47 14 WEAKER!! -55% Other Misc. Vessels 284 242 150 30 WEAKER!! -70% TOTAL CONTRACTING 2,811 3,700 4,499 1,751 WEAKER!! -41% '98 Jul '99 Jul '00 Jul '01 Jul '02 Jul '03 Jul '04 Jul '05 Jul '06 Jul '07 Jul '08 Jul Note: Newbuilding prices vary as to country of build, delivery and ship specification. Prices here are end year/latest and from Jun-08 assume a "European spec", 20/20/20/20/20% payments and "first class competitive yards" quotations. The 3-month trend is the change of the last 3 months over the previous 3 months.

Clarkson Research Services Page 10 29-Aug-08 The Demolition Market What's Been Scrapped... Type Date Vessel Name Flag Blt Dwt Ldt Owner Buyer $/ldt $ m. Reefer Aug '08 Nordic Star SV. 1980 9,300 4,675 Ost-West-Handel India 700.0 3.27 Container Aug '08 Red Sea MA. 1977 18,834 8,395 Dongnama Shipping Bangladesh 781.0 6.56 Chem & Oil Aug '08 Artemis GR. 1983 39,776 9,710 Livanos Group As is S'pore Chem & Oil Aug '08 Achilleus GR. 1983 39,730 9,748 Livanos Group As is S'pore Reefer Aug '08 Frio Kyknos PA. 1982 3,804 2,000 Laskaridis Shpg Private terms MPP Aug '08 Kota Indah SG. 1976 24,580 9,630 Pacific Int. Lines Bangladesh 753.0 7.25 Container Aug '08 Glory D PA. 1978 13,527 5,000 Goldenport S/Mngt. Private terms Bulk Aug '08 Little Angels PA. 1980 16,268 5,631 TMT Co. Ltd. Bangladesh 740.0 4.17 Tanker Aug '08 A Elephant LI. 1987 264,758 32,182 TMT Co. Ltd. Bangladesh 769.0 24.75 Products Aug '08 Cobra DM. 1982 27,841 7,500 Polembros Shpg. Bangladesh 800.0 6.00 Chem & Oil Aug '08 Neptun NIS 1976 28,060 8,500 Salhus Shipping AS India 1,175.0 9.99 Chem & Oil Aug '08 Lance NIS 1980 35,100 8,676 Salhus Shipping AS India 1,100.0 9.54 Pass/Car F. Aug '08 Jabal Ali 2 S.L 1971 2,553 6,069 Naif Marine Services India 700.0 4.25 Cruise Aug '08 Madagascar UE. 1960 622 OMIKS Ltd. Old sale Reefer Aug '08 Dean MA. 1979 10,598 6,725 Lagoa Shipping Corp. Old sale Ro-Ro/Lo-Lo Aug '08 Dubai Islands SV. 1982 6,185 2,548 Emarat Maritime LLC Old sale Tanker Aug '08 Ocean Enterprise TV. 1979 97,124 16,719 Ocean Tankers Pte. As is S'pore 735.0 12.29 Reefer Jul '08 Pietari Flame SV. 1978 10,988 6,893 Ost-West-Handel Old sale Reefer Jul '08 Morillo CM. 1971 10,900 6,299 Polar Shipping GmbH India 748.0 4.71 Ro-Ro Jul '08 Winco Silvia LI. 1985 4,673 4,282 Winco Maritime Private terms GC Liner Jul '08 Jin Run PA. 1972 16,000 4,920 Hengfa Shipping Inc. India 620.0 3.05 MPP Jul '08 Guhi Mas IA. 1978 3,450 1,175 Tempuran Emas Old sale 650.0 0.76 Container Jul '08 Provider LI. 1978 31,227 Nippon Yusen Kaisha PRC 570.0

Scrap Year End ($/ldt) This Year Scrapping Price Trends Prices... 2005 2006 2007 Latest % 800 US$ per ldt Tankers 305 410 510 650 27% 750 Tankers - B.Desh 700 Dry Cargo 330 390 470 630 34% Tankers - India Note: The scrap prices ($/ldt) are based on Indian prices for VLCC tankers and a 650 Handy dry bulk carrier of around 8,000 ldt. Handy Bulk - B.Desh 600 Year (m dwt) This Year Buyer 550 Activity .. 2005 2006 2007 2008 % 500 China 0.4 0.2 0.1 0.0 -33% 450 India 1.1 1.0 1.4 1.1 12% 400 Bangladesh 3.6 4.7 2.5 3.3 97% 350 Pakistan 0.1 0.2 0.7 0.4 -20% 300 Other 0.3 0.3 0.2 0.2 65% TOTAL 5.5 6.4 4.9 5.0 53% 250 Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Size & Year (m dwt) This Year '06 '06 '06 '07 '07 '07 '07 '07 '07 '08 '08 '08 '08 Type .. 2005 2006 2007 2008 % Demolition Market News and Gossip • The general feeling that prices are softening somewhat Tankers continues. Prices for representative deals, such as those for the VLCC 0.3 1.3 ##### Livanos Group-controlled tankers “ARTEMIS” (39,776 dwt, built Suezmax 0.3 0.3 ##### 1983 Brodosplit) and “ACHILLEUS” (39,730 dwt, built 1983 Brod. Aframax 1.5 0.9 0.9 0.6 2% 3 Maj) are now tending to be only just over the $700/ldt mark. Handy 1.9 2.0 2.1 1.4 -1% • < 10,000 dwt 0.1 0.1 0.2 0.1 -20% Vessels for which scrapping deals have been concluded in Total Tankers 4.1 3.1 3.2 3.7 73% recent weeks at prices above $750/ldt have thus become prone to Bulkcarriers buyers attempting to renegotiate deals. This is a common Capesize 0.2 0.3 - - ##### phenomenon in a falling scrap market, especially when sub- Panamax 0.2 0.5 0.1 - -100% continental scrap resale prices seem to be continuing to soften. To Handymax 0.1 0.2 0.1 - -100% this end, it is now understood that the LNG carrier “LAIETA”, Handysize 0.4 0.9 0.2 0.0 -76% previously reported sold into an Indian yard, will now in fact be Total Bulkers 0.9 1.8 0.4 0.0 -88% heading to Chittagong for demolition. Meanwhile, the original Combos 0.3 - - ##### buyers of the “A. ELEPHANT” at $769/ldt are now reported to Gas Vessels 0.1 0.1 0.5 0.5 32% have failed to submit a deposit. It is suggested that the sellers may Other Dry 0.3 1.1 0.8 0.9 60% now be looking for a price of around $730/ldt, indicating the extent TOTAL 5.5 6.4 4.9 5.0 53% of the market’s decline. * The % change is based on annualised figures for this year against last year. Clarkson Research Services Page 11 29-Aug-08 Economic Indicators GDP Growth & Forecasts* • According to figures released by the US Commerce Germ U.K. USA Japan Euro Area World Department this week, US GDP grew at an annualised rate of 2005 0.8% 1.8% 3.1% 1.9% 1.5% 4.8% 3.3% in 2Q 2008. This higher-than-expected figure was boosted 2006 2.9% 2.8% 2.9% 2.2% 2.8% 5.4% by exports growing at an annualised rate of 13.2% by value in the 2007 2.4% 3.1% 1.9% 2.0% 2.5% 5.2% quarter, while the value of imports fell by 7.6%. America’s 4Q07 1.8% 2.8% 2.5% 2.0% 2.2% 0.0% housing market also showed some encouraging signs, with sales 1Q08 2.6% 2.5% 2.5% 1.3% 2.1% 0.0% of newly built homes in July increasing by 2.4% while sales of 2Q08 1.7% 1.4% 1.8% 1.0% 1.5% 0.0% existing homes rose by 3.1% over the course of the month. 2008 (f) 2.0% 1.4% 1.5% 1.4% 1.6% 4.1% 2009 (f) 1.3% 1.0% 1.2% 1.2% 1.2% 3.9% However, this greater volume of sales has yet to be reflecting by improving house prices. Industrial Production*: OECD • On the other hand, the Euro economy has struggled to end: Germ U.K. USA Japan Euro Area OECD shake off the economic gloom. The Ifo business survey reported 2005 3.4% -2.7% 2.8% 3.8% 1.1% 2.1% that German business expectations in August hit their lowest 2006 6.1% -0.3% 1.9% 0.8% 2.1% 1.8% levels since the index began, while assessments of the current 2007 4.4% 0.7% 1.5% 0.8% 1.1% 1.2% business climate were at their worst since mid-2005. Apr '08 4.8% 0.2% -0.1% 1.9% 3.3% 1.9% May '08 0.8% -1.6% -0.1% 1.1% -1.6% -0.6% Industrial Production Jun '08 1.6% -1.6% 0.3% 0.0% 0.0% 0.0% % change Industrial Production*: Asia 12.00 end: R.o K. China Taiwan Thailand Malay. India 10.00 2005 16.5% 11.3% 9.5% 6.1% 4.2% 5.0% 8.00 2006 2.3% 14.7% -1.7% 7.0% 6.3% 11.1% 2007 12.4% 17.4% 10.7% 11.6% 5.9% 7.6% 6.00 Apr '08 10.5% 15.7% 9.6% 10.1% 4.3% 7.0% 4.00 May '08 8.3% 16.0% 5.3% 10.5% 2.6% 3.8% 2.00 Jun '08 6.7% 16.0% 5.1% 11.2% 1.5% 5.4% 0.00 Ind. Production*: E.Europe & S. America -2.00 end: Russia Czech. Hung. Poland Arge. Brazil -4.00 2005 4.6% 7.1% 12.9% 9.2% 7.9% 3.2% Atlantic -6.00 2006 1.9% 3.0% 14.0% 5.7% 8.9% 2.8% Pacific 2007 6.5% 2.9% 5.3% 6.2% 10.0% 6.4% -8.00 Apr '08 9.2% 6.7% 9.8% 14.9% 8.6% 5.1% May '08 6.7% 3.4% 5.5% 2.3% 6.6% 2.4% Jun '08 0.9% 2.2% -0.3% 7.2% 6.1% 6.6% Jan '93 Jan '94 Jan '95 Jan '96 Jan '97 Jan '98 Jan '99 Jan '00 Jan '01 Jan '02 Jan '03 Jan '04 Jan '05 Jan '06 Jan '07 Jan '08 Currency Trends Spot ~ & Forward# ... Exchange Rate Trends end: Euro U.K. Japan Switz. N'way China Index Jan'00=100 2005 1.18 1.73 117.77 1.32 6.77 8.07 160 $/Sterling 2006 1.32 1.96 119.05 1.22 6.27 7.81 150 $/Yen 2007 1.46 1.99 114.15 1.14 5.47 7.30 $/Euro May 1.55 1.97 104.37 1.05 5.08 7.16 140 Jun 1.55 1.97 107.32 1.04 5.15 7.07 130 Jul 1.58 1.99 106.69 1.03 5.11 7.00 29-Aug 1.47 1.83 109.41 1.10 5.38 6.83 120 3mo.# 1.47 1.82 108.84 #Forward Rates as of: 29-Aug 12mo.# 1.45 1.79 106.94 110 end: R.o K. H.Kong Sing. SDR India Australia 100 2005 1,010.50 7.75 1.66 1.43 45.16 1.37 2006 909.09 7.77 1.54 1.50 44.50 1.27 90 2007 940.60 7.80 1.45 1.57 39.42 1.14 80 May 1,034.40 7.80 1.37 1.62 42.15 1.06 Jun 1,029.93 7.81 1.37 1.62 42.85 1.05

Jul 1,016.91 7.80 1.36 1.38 42.81 1.04 '08 Jul Apr '07 Apr '08 Apr Oct '06 Jan '07 Jun '07 Jan '08 Mar '08 Mar Feb '07 Nov '07 Aug '08 Sep '06 Dec '06 Aug '07 Sep '07 Dec '07 29-Aug 1,081.75 7.81 1.42 0.64 43.79 1.16 '07 May '08 May *% change year-on-year. Source: IMF, OECD, The Economist. ~Currency units per US$ except £, Euro and SDR. #Forward Rates: The FT. Interest Rate Trends ... Inflation & Prices … Prices in $/bbl or $/t Prime Lending Rates: Consumer Prices Crude Grain Steel $ Libor Oil Wheat Ship Plate Euro U.K. Switz. Japan U.S.A. Eur USA Japan OECD avg: 6 mths. avg: Brent USG Japan 2005 2.3% 5.5% 2.4% 1.4% 7.3% 4.7% 2005 2.2% 3.4% -0.1% 2.8% 40.11 160 625 2006 3.5% 6.0% 3.8% 1.6% 8.3% 5.4% 2006 2.3% 2.5% 0.3% 2.7% 56.35 169 700 2007 4.0% 6.5% 3.9% 1.9% 7.3% 4.4% 2007 3.1% 4.3% 0.7% 2.3% 62.41 216 600 May 4.0% 6.0% 3.8% 1.9% 5.0% 2.7% May 4.1% 4.2% 1.3% 3.9% 122.44 347 980 Jun 4.0% 6.0% 3.8% 1.9% 5.0% 3.1% Jun 4.4% 5.0% 2.0% 4.4% 132.54 358 1,200 Jul 4.3% 6.0% 3.8% 1.9% 5.0% 3.1% 0 Jul 0.0% 5.6% 0.0% 0.0% 137.19 342 1,250 29-Aug 4.3% 6.0% 4.0% 1.9% 5.0% 3.1% Latest 0.0% 0.0% 0.0% 0.0% 110.10 349 1,250 Clarkson Research Services Page 12 29-Aug-08 Ship Demand Trends

Oil Tanker in million barrels per day % Chg OPEC Production & VL Earnings m. bpd $,000/day 2005 2006 2007 2008 2008/07 32 225 Demand .... OPEC Oil Production 31 200 VLCC Earnings Oil Production 175 World 82.8 83.1 83.1 85.3 2.6% 30 N. America 7.6 7.8 7.8 7.8 0.8% 150 W. Europe 4.7 4.3 4.1 4.0 -2.5% 29 FSU 10.7 9.4 9.6 9.5 -1.2% 125 28 OPEC Crude Oil 29.6 29.5 28.7 29.6 3.1% 100 NGL's/Cond. 4.5 5.0 4.9 5.0 0.4% 27 75 VLCC Demand 26 50 Middle-East Output* 23.1 22.7 22.2 23.1 4.0% Less: Red Sea export 0.3 0.3 0.3 0.3 0.0% 25 25 E.Med export 0.7 0.8 0.9 1.0 10.9% Refinery T'put 5.9 6.2 6.3 6.3 0.0% 24 0 Gulf Crude Exports 16.1 15.4 14.7 15.5 5.3% Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Crude Oil Trade Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Imports: USA 10.1 10.2 10.0 9.8 -1.9% Eur-4 7.0 6.9 6.4 6.5 2.4% Major Oil Trades News: Japan 4.2 4.2 4.1 4.6 11.6% • Nymex October WTI rose to $117.01/bbl on Friday Total Imports 21.3 21.2 20.4 20.9 2.1% on the back of concerns about disruptions to production in Products Trade the Gulf of Mexico from tropical storm Gustav. This par- Imports: USA 3.5 3.6 3.4 3.2 -8.0% tially offset a $2.56/bbl fall in the price of oil on Thurs- Eur-4 2.2 2.3 2.0 2.2 10.0% day, which was triggered by the US government and IEA Japan 0.6 0.6 0.6 0.5 -6.6% pledging to release emergency stockpiles if Gustav dis- Total Imports 6.3 6.6 6.0 5.9 -1.8% World Total includes NGL's; *Mid-E output is sum of OPEC and non-OPEC crude production. rupted US production. Overall, the price of oil has fallen th Oil production data sourced from IEA. 2007 data are latest year-to-date figures. 20.6% from the record $147.27 reached on 11 July.

Dry Bulk in million tonnes % Chg Steel Production & Cape Earnings Demand .... 2005 2006 2007 2008 2008/07 180 Index $,000/day 180 170 Steel Production Index 160 Steel Prod. Capesize Earnings 140 Japan 112.5 116.2 120.2 124.0 3.1% 160 S.Korea 47.7 48.5 51.2 55.5 8.4% 120 P.R. China 348.1 421.5 487.3 542.2 11.3% 150 EU-12 144.9 152.9 156.6 159.4 1.8% 100 Total Steel Prod. 653.1 739.1 815.2 881.1 8.1% 140 80 130 Iron Ore Trade 60 Imports: Japan 132.3 134.3 139.0 141.5 1.9% 120 40 S.Korea 43.5 43.9 46.2 50.3 8.9% China 273.5 326.3 383.7 454.6 18.5% 110 20 Total Imports: 449.2 504.5 568.8 646.4 13.6% Exports: Australia 241.9 504.5 266.9 249.1 -6.7% 100 0

Coal Trade Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Imports: Japan 180.7 177.0 186.1 191.1 2.7% Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 S.Korea 74.4 75.1 83.4 95.3 14.2% EU-25* 182.7 200.7 211.1 203.0 -3.8% Major Dry Bulk Trades News: Total Imports: 437.9 452.9 480.6 489.4 1.8% • The mining firm Coal of Africa has announced a Exports: Australia 233.7 238.6 250.4 249.1 -0.5% USA 28.1 25.6 36.5 50.9 39.3% deal with Grindrod to export 0.9mt per annum through Canada 26.5 26.1 29.2 31.3 7.4% the general dry bulk terminal at Richards Bay by 2010. South Africa 70.4 68.1 66.8 61.0 -8.7% This will break the near monopoly on South African Total Exports: 358.7 358.5 382.9 392.3 2.4% coal exports held by the RBCT in recent years. Grain Trade • Despite the 15% export tax imposed by the country, Exports: USA (ex soya) 77.5 86.3 98.2 103.9 5.8% prices for Indian iron ore have been steadily falling, Canada 18.1 22.5 22.3 23.3 4.6% with offers dipping as low as $145/t CFR this week. A Australia 18.6 20.6 9.2 13.0 41.9% contributory factor is high Chinese iron ore stockpiles. Arg. (ex soya) 24.9 20.4 26.7 24.9 -6.7% nd EU-25* 17.6 18.7 16.5 15.2 -8.0% As of 22 August Chinese stockpiles totalled 72.0mt, Total Exports 156.7 168.5 172.9 180.4 4.3% notably higher than they were at the beginning of July. 2008 data are annualised figures, seasonally adjusted from latest year-to-date figures. *EU 25 to 2006, then EU27. 0 0 0 0 0 0 0 0 Clarkson Research Services Page 13 29-Aug-08 World Fleets & Orderbooks

Total Cargo Year End01-Aug-08 Orderbook & Delivery Schedule Fleet ..m. Dwt 2004 2005 2006 2007 No. m.Dwt No. m.Dwt % Fleet 2008 2009 2010+ OIL TANKERS >10k dwt 299.7 320.3 337.3 356.3 3,488 360.3 1,308 161.9 44.9% 19.7 53.4 88.8 OIL TANKERS <10k dwt 11.0 11.1 11.3 11.5 5,102 11.5 135 0.8 6.8% 0.5 0.2 0.1 CHEMICAL TANKERS 23.8 26.5 29.6 33.6 3,065 36.3 1,004 18.6 51.1% 4.4 6.5 7.7 OTHER TANKERS 3.2 3.3 3.3 3.3 641 3.4 35 0.3 8.8% 0.1 0.1 0.1 BULKERS 322.6 345.2 368.6 392.6 6,883 407.6 3,153 275.0 67.5% 15.6 65.2 194.2 COMBOS 10.2 9.4 8.9 8.2 85 8.2 9 2.8 34.9% 0.0 0.0 2.8 LPG CARRIERS 11.7 11.8 12.5 12.9 1,095 12.9 215 3.8 29.6% 1.3 1.5 1.0 LNG CARRIERS 13.9 15.4 17.5 20.1 279 20.1 109 9.7 48.2% 2.9 4.0 2.7 CONTAINERSHIPS 99.7 111.5 128.1 144.0 4,587 154.4 1,352 78.9 51.1% 10.5 21.9 46.6 MULTI-PURPOSE 22.3 22.8 23.6 24.6 2,758 25.0 671 8.4 33.7% 1.7 2.6 4.1 GENERAL CARGO 37.9 38.0 38.2 38.6 15,097 38.6 215 1.4 3.7% 0.66 0.41 0.38 RO-RO 10.2 10.2 10.4 10.5 3,577 10.5 113 1.3 12.7% 0.2 0.2 0.9 CAR CARRIERS 7.0 7.6 8.2 9.0 657 9.4 221 3.7 39.7% 0.8 1.1 1.8 REEFERS 7.9 7.9 7.8 7.6 1,998 7.6 21 0.3 3.5% 0.02 0.08 0.17 OFFSHORE (AHTS/PSV) 3.9 4.2 4.6 5.0 3,908 5.2 808 2.0 39.3% 0.72 0.67 0.64 OTHER CARGO 8.2 8.2 8.2 8.2 1,106 8.2 36 0.5 5.7% 0.08 0.14 0.25 WORLD CARGO FLEET 893.1 953.4 1,018.0 1,086.0 54,326 1,119.2 9,405 569.6 50.9% 59.2 158.1 352.4

]

Tanker Year End01-Aug-08 Orderbook & Delivery Schedule Fleet ..m. Dwt 2004 2005 2006 2007 No. m.Dwt No. m.Dwt % Fleet 2008 2009 2010+ VLCC 200,000+ 130.6 137.7 142.3 148.3 499 147.8 239 73.9 50.0% 5.8 20.9 47.2 Suezmax 120-200,000 45.3 48.9 52.3 54.7 361 54.8 171 26.9 49.1% 2.0 10.0 14.9 Aframax 80-120,000 62.2 67.5 71.3 76.5 757 78.2 268 29.5 37.7% 5.2 11.3 13.0 Panamax 60-80,000 16.2 18.7 21.3 24.0 353 24.8 129 9.4 37.9% 2.0 3.7 3.8 Small 10-60,000 65.9 70.5 76.0 82.5 2,771 86.8 1191 38.8 44.6% 8.1 13.4 17.2 of which: Specialised >10,000 20.5 23.0 25.9 29.6 1,253 32.1 690 16.6 51.5% 3.4 5.9 7.2 <10,000 17.8 18.3 18.7 19.2 7,555 19.4 484 3.1 16.0% 1.5 0.9 0.7 TOTAL FLEET >10,000 320.2 343.4 363.3 386.0 4,741 392.5 1,998 178.5 45.5% 23.1 59.3 96.1 of which: Single Hull 107.3 100.6 94.5 78.3 1,057 75.0 Double Hull 212.9 242.8 268.8 299.6 3,684 317.5 Combos in Oil 5.3 5.5 4.0 1.2 20 1.4 Increase in size of Tanker Fleet: Laid-up 0.2 0.4 1.0 0.8 16 0.8 2007/2006 6.2% Storage 3.0 2.8 1.5 1.1 8 0.9 2008*/2007 1.7% * year to date ACTIVE FLT. >10,000 322.3 345.7 364.8 385.3 4,737 392.2

Bulk Carrier Year End01-Aug-08 Orderbook & Delivery Schedule Fleet ..m. Dwt 2004 2005 2006 2007 No. m.Dwt No. m.Dwt % Fleet 2008 2009 2010+ Capesize 100,000+ 102.3 111.0 121.1 131.4 800 138.0 774 144.5 104.7% 4.2 30.2 110.0 Panamax 60-100,000 86.4 93.7 101.8 108.3 1,524 111.8 671 54.7 48.9% 4.0 11.4 39.3 Handymax 40-60,000 61.3 66.8 71.7 76.9 1,663 80.4 900 50.5 62.8% 5.2 15.9 29.5 Handysize 10-40,000 72.6 73.6 74.0 75.9 2,896 77.4 808 25.4 32.9% 2.3 7.7 15.4 TOTAL FLEET 322.6 345.2 368.6 392.6 6,883 407.6 3,153 275.0 67.5% 15.6 65.2 194.2 Combos in Dry 5.4 4.5 5.3 6.7 65 6.7 Increase in size of Bulkcarrier Fleet: Laid-up 0.3 0.4 0.4 0.3 10 0.3 2007/2006 6.5% Storage 0.3 0.3 0.3 0.3 6 0.3 2008*/2007 3.8% * year to date ACTIVE FLEET 327.4 349.0 373.2 398.7 6,932 413.7

LPG Carrier Year End01-Aug-08 Orderbook & Delivery Schedule Fleet ,000m³ 2004 2005 2006 2007 No. ,000m³ No. ,000m³ % Fleet 2008 2009 2010+ <5,000 cbm 1,299 1,289 1,326 1,374 622 1,369 65 213 15.5% 92 55 65 5-20,000 cbm 1,816 1,791 1,902 2,028 252 2,119 74 642 30.3% 175 145 321 20-40,000 cbm 1,726 1,800 2,026 2,299 77 2,299 32 839 36.5% 157 478 204 40-60,000 cbm 1,407 1,466 1,466 1,360 24 1,360 5 300 22.1% 120 180 0 >60,000 cbm 8,060 8,125 8,619 8,975 120 9,514 39 3,156 33.2% 1,209 1,222 725 TOTAL FLEET 14,308 14,470 15,339 16,035 1,095 16,661 215 5,149 30.9% 1,754 2,080 1,316 TOTAL M. DWT 11.7 11.8 12.5 12.9 1,095 12.9 215 3.82 29.6% 1.28 1.55 0.99 "Oil Tankers" covers vessels in the crude oil & oil products sectors, including tankers with IMO 3 grade specification. "Chemical" includes tankers with IMO 1&2 grade specification. "Specialised" covers IMO 1&2 chemical tankers and other tankers designed for the carriage of specialist liquids..

Clarkson Research Studies Page 14 29-Aug-08 World Fleets & Orderbooks

LNG Carrier Year End 01-Aug-08 Orderbook & Delivery Schedule Fleet ,000m³ 2004 2005 2006 2007 No. ,000m³ No. ,000m³ % Fleet 2008 2009 2010+ <40,000 cbm 260 262 262 252 13 227 10 93 41.2% 19 54 20 40-60,000 cbm 253 253 253 253 4 163 0 0 0.0% 0 0 0 60-100,000 cbm 1,159 1,159 1,233 1,307 18 1,383 0 0 0.0% 0 0 0 >100,000 cbm 18,800 21,374 25,297 30,002 244 34,982 99 17,877 51.1% 5,316 7,485 5,076 TOTAL FLEET 20,472 23,048 27,045 31,814 279 36,754 109 17,970 48.9% 5,335 7,539 5,096 TOTAL M. DWT 13.9 15.4 17.5 20.1 279 20.1 109 9.7 48.2% 2.9 4.0 2.7

Containership Year End 01-Aug-08 Orderbook & Delivery Schedule Fleet ,000 Teu 2004 2005 2006 2007 No. ,000teu No. ,000teu % Fleet 2008 2009 2010+ 100-999 teu 584.4 623.2 670.6 720.4 1,258 741.4 137 113.6 15.3% 65.1 25.0 23.4 1-1,999 teu 1,322.0 1,382.0 1,483.1 1,641.3 1,219 1,724.1 276 396.5 23.0% 106.7 165.2 124.6 2-2,999 teu 1,315.2 1,434.1 1,586.7 1,695.9 707 1,786.9 138 354.4 19.8% 120.7 89.6 144.1 3,000 &+ teu (Panamax) 1,997.5 2,284.8 2,548.3 2,939.0 788 3,171.9 300 1,248.0 39.3% 206.1 539.5 502.4 3-7,999 teu (Post-Pmax) 1,844.6 2,007.8 2,239.3 2,413.8 433 2,581.7 200 1,193.1 46.2% 186.6 341.0 665.5 8,000 &+ teu (Post-Pmax) 123.6 395.3 943.3 1,353.1 182 1,605.3 301 3,302.6 205.7% 156.3 636.8 2,509.6 TOTAL FLEET 7,187.3 8,127.2 9,471.3 10,763.7 4,587 11,611.3 1,352 6,608.2 56.9% 841.6 1,797.0 3,969.6 TOTAL M. DWT 99.7 111.5 128.1 144.0 4,587 154.4 1,352 78.9 51.1% 10.5 21.9 46.6

Multipurpose Year End 01-Aug-08 Orderbook & Delivery Schedule Fleet ,000 Teu 2004 2005 2006 2007 No. ,000teu No. ,000teu % Fleet 2008 2009 2010+ 100 - 199 teu 94.3 96.0 98.3 102.3 680 103.6 112 16.4 15.8% 8.2 4.4 3.7 200 - 349 teu 164.3 169.0 175.3 182.2 708 183.8 124 34.4 18.7% 13.9 12.8 7.8 350 - 499 teu 174.2 177.4 184.5 193.0 488 196.1 59 22.7 11.6% 12.7 5.7 4.3 500 - 749 teu 293.8 305.9 322.4 350.4 590 358.2 147 90.1 25.2% 41.6 31.8 16.7 750 - 999 teu 105.0 109.8 116.2 126.7 150 132.2 107 97.5 73.8% 7.4 19.1 71.0 1000 &+ teu 175.6 179.0 182.0 183.3 142 184.5 122 188.1 102.0% 9.2 59.2 119.7 TOTAL FLEET 1,007.1 1,037.1 1,078.8 1,137.9 2,758 1,158.3 671 449.3 38.8% 92.9 133.1 223.2 MPP FLEET M. DWT 22.3 22.8 23.6 24.6 2,758 25.0 671 8.4 33.7% 1.7 2.6 4.1 GC FLEET M. DWT 37.9 38.0 38.2 38.6 15,097 38.6 215 1.44 3.7% 0.66 0.41 0.38

Ro-Ro Vessel Year End 01-Aug-08 Orderbook & Delivery Schedule Fleet, m. Dwt 2004 2005 2006 2007 No. m.Dwt No. m.Dwt % Fleet 2008 2009 2010+ <2,000 dwt 0.8 0.8 0.8 0.8 2,573 0.8 1 0.0 0.0% 0.00 0.00 0.00 2,000-5,000 dwt 1.3 1.3 1.2 1.2 327 1.2 11 0.0 3.4% 0.03 0.01 0.00 5,000-7,500 dwt 1.5 1.5 1.6 1.6 252 1.6 24 0.1 8.9% 0.02 0.02 0.10 7,500-10,000 dwt 1.1 1.1 1.1 1.1 128 1.1 11 0.1 8.4% 0.03 0.01 0.06 10-15,000 dwt 1.5 1.6 1.7 1.8 145 1.8 43 0.5 28.9% 0.04 0.11 0.37 15,000&+ dwt 4.0 4.0 4.0 4.0 152 4.0 23 0.5 13.4% 0.06 0.10 0.38 TOTAL FLEET 10.2 10.2 10.4 10.5 3,577 10.5 113 1.33 12.7% 0.18 0.25 0.91 CAR CARRIERS 7.0 7.6 8.2 9.0 657 9.4 221 3.74 39.7% 0.83 1.10 1.81

Reefer Vessel Year End 01-Aug-08 Orderbook & Delivery Schedule Fleet m. ft³. 2004 2005 2006 2007 No. m.ft³ No. m.ft³ % Fleet 2008 2009 2010+ < 100,000 cu ft 17.7 17.4 17.3 17.1 1,078 16.9 0 0.0 0.0% 0.0 0.0 0.0 100-199,999 cu ft 39.2 38.8 38.7 39.3 257 38.8 2 0.4 1.0% 0.4 0.0 0.0 200-299,999 cu ft 52.2 51.9 51.1 51.1 201 50.1 0 0.0 0.0% 0.0 0.0 0.0 300-449,999 cu ft 76.0 75.2 74.4 73.6 185 69.4 0 0.0 0.0% 0.0 0.0 0.0 450-549,999 cu ft 95.2 94.7 94.2 93.7 183 90.4 1 0.5 0.5% 0.5 0.0 0.0 > 550,000 cu ft 56.4 56.4 55.8 57.1 94 58.0 18 11.2 19.4% 0.0 3.7 7.5 TOTAL FLEET 336.7 334.4 331.5 331.8 1,998 323.7 21 12.12 3.7% 0.88 3.70 7.54 TOTAL M. DWT 7.9 7.9 7.8 7.6 1,998 7.6 21 0.27 3.5% 0.02 0.08 0.17

Note: All fleet figures are from the Clarkson Research Ship and Orderbook Databases, expressed in the units indicated. All dwt figures are metric. Annual data are as at year end, monthly data at the beginning of the month. The databases comprise vessels of 100gt and above.

A "Sources & Methods" document which describes the methodology by which Clarkson Research gathers and manipulates the data set out in this report, including the calculation of the time charter equivalent (TCE) earnings for tankers and bulk carriers, is available on our website at www.clarksons.net. Further enquiries may be made to the addresses set out on the back page.

Clarkson Research Studies Page 15 29-Aug-08 Analysis

Shipbuilding Cup Final – Get Ready for the Second Half

The football team was having a bad fleet (see the Graph of the Week). prices made shipbuilding very profit- match, so the manager gave them a Nowadays they could deliver this able, which triggered a headlong dash half time hairdryer talk. “Now, lads,” modest amount of ships in just one to commission new shipyard capacity he said. “In the last few months I’ve year. Then the boom started and the from 2004. As the new berths became given you a lot of tips and advice on orderbook jumped to 21% of the fleet available from 2006 onwards, the passing, dribbling, kicking and defen- in 2003, and 25% in 2004 and 2005. investment activity went into volume sive play.” The team nodded appre- rather than prices. The orderbook ciatively. “Well, you can forget it all Price, not Volume surged to 46% of the fleet at the end now, because I’ve just sold the lot of of 2007, and this month saw it pass you”. A real man of action. The lack of expansion in 2005 was the 50% mark for the first time, an very good for the shipyards. With all-time record. Exciting First Half, not Many Goals earnings booming and few berths available, it gave the yards a great Running Out for the Second Half When the shipbuilding game kicked opportunity to drive up prices, which off in 2002, the shipyards were also jumped by 54% between 2003 and With enough ships on order to ex- struggling to avoid relegation. They 2005. During this three year period, pand the fleet by 51% (less scrap- were not scoring and had an order- the price of a Capesize bulkcarrier ping) and lots of cash in the kitty, the book of 115m dwt, just 14% of the surged from $35m to $60m. In retro- first half of the Shipyard Super Cup is spect the reason was over. But, as the players trot out for obvious: everybody the second half, they will notice the

Orderbook - 2nd Half Kicks Off wanted ships and there supply side strikers are much bigger 70% Orderbook, % fleet was no spare capacity than before half time. Their offensive to build them, so all the will bite in some sectors this autumn, First half pressure went into but the rough play starts next year as 60% pushing up prices. the shipyards, now on steroids, de- Other Container 4% 51% liver heroic quantities of tankers, 14% Tankers 50% 46% Chain Reaction bulkcarriers and, of course, container 32% I Gas N ships. Who will win? It’s shipyard 2% 40% T This massive and to- muscle versus the owner’s skill and 32% E tally unexpected surge cunning. It may not be a new game, Bulk R of investment in new but the stakes are bigger. 30% 48% 25% 25% V ships had two effects. 21% A First, because the yards Win Some, Lose Some 20% L initially had little spare 14% capacity, it took a long So there you have it. It’s been a fan- 10% time for deliveries to tastic game so far, and investors have increase. For example, upped the stakes with $523bn of in- 0% shipbuilding deliveries vestment. In shipping, like football, increased by only 7% in someone always wins (unless it’s a

y-t-d 2006 and 5.5% in 2007. draw). It's just a matter of keeping fit 2002 2003 2004 2005 2006 2007 2008 Source: Clarkson Research Services Secondly, the surge in and not getting sold. Have a nice day. Graph of the Week

Shipping Intelligence Weekly, 29 August, 2008 Editorial Board: Shipping Intelligence Weekly is published 50 times a year. It reviews the Published by: Managing Director Martin Stopford markets for Crude, Products, Specialised and Gas tankers, Bulk carriers, Clarkson Research Services Ltd. Publisher Cliff Tyler Offshore and Liner vessels as well as the second-hand, new building and St. Magnus House, Editor J. Frew demolition markets. It provides details of freight rates, earnings, prices and 3, Lower Thames Street, Production D. Poynter activity in all these markets; fleet statistics; trade, financial and economic London EC3R 6HE, England. S & P K. Taylor indicators. It is available on subscription at a price of £595/£625 a year Tel: + (44) (0) 20 7334 3134 Tankers R. Knight (within Europe/outside Europe) including postage. Fax: + (44) (0) 20 7522 0330 Specialised R. Whittet Whilst care has been taken in the production of this review, no liability can Telex: 8812927 CLTNKA G Gas J. R. Evans be accepted for any loss incurred in any way whatsoever by any person Dry Cargo G. Campbell who may seek to rely on the information contained herein. The information E-mail: [email protected] Freight Derivatives A. Gray in this report may not be reproduced without the written permission of Web-site: http://www.crsl.com Singapore G. Lane Clarkson Research Services. Sydney, Australia P. M. Quirk