Capital Link Shipping Weekly Markets Report

Monday, October 17, 2011 (Week 41)

IN THE NEWS → Latest Company News → 4th Annual International Shipping & Marine Services Forum - London → Shipping & Offshore CSR Forum - London → Investor Relations: Maximizing the Potential of the US Marketplace → Select Dividend Paying Shipping Stocks → Weekly China Update

CAPITAL MARKETS DATA → Currencies, Commodities & Indices → Shipping Equities - Weekly Review → Weekly Trading Statistics, by Knight Capital → Shipping Bonds - Weekly Review, by Knight Capital

SHIPPING MARKETS → The Week In Review, by Golden Destiny → Dry Bulk Market - Weekly Highlights, by Intermodal Shipbrokers → Tanker Market - Weekly Highlights, by Charles R. Weber Company → Weekly Tanker Market Opinion, by Poten & Partners → Weekly Freight Rate & Asset Trends, by Intermodal Shipbrokers → Container Market - Weekly Highlights, by Braemar Seascope → S&P Secondhand, Newbuilding & Demolition Markets, by Golden Destiny → Forward Freight Agreements - FFAs, by SSY Futures

EVENTS → Conference Call Calendar

CONTENT CONTRIBUTORS Capital Link Shipping ...Linking Shipping and Investors Across the Globe

Capital Link is a New York-based Advisory, Investor Relations and Financial Communications firm. Capitalizing on our in-depth knowledge of the shipping industry and capital markets, Capital Link has made a strategic commitment to the shipping industry becoming the largest provider of Investor Relations and Financial Communications services to international shipping companies listed on the US and European Exchanges. Capital Link's headquarters are in New York with a presence in London and Athens.

Investor Relations & Financial Advisory Operating more like a boutique investment bank rather than a traditional Investor Relations firm, our objective is to assist our clients enhance long term shareholder value and achieve proper valuation through their positioning in the investment community. We assist them to determine their objectives, establish the proper investor outreach strategies, generate a recurring information flow, identify the proper investor and analyst target groups and gather investor and analyst feedback and related market intelligence information while keeping track of their peer group. Also, to enhance their profile in the financial and trade media.

In our effort to enhance the information flow to the investment community and contribute to improving investor knowledge of shipping, Capital Link has undertaken a series of initiatives beyond the traditional scope of its investor relations activity, such as:

www.CapitalLinkShipping.com A web based resource that provides information on the major shipping and stock market indices, as well as on all shipping stocks. It also features an earnings and conference call calendar, industry reports from major industry participants and interviews with CEOs, analysts and other market participants.

Capital Link Shipping Weekly Markets Report Weekly distribution to an extensive audience in the US & European shipping, financial and investment communities with updates on the shipping markets, the stock market and listed company news.

www.CapitalLinkWebinars.com Sector Forums & Webinars: Regularly, we organize panel discussions among CEOs, analysts, bankers and shipping industry participants on the developments in the various shipping sectors (containers, dry bulk, tankers) and on other topics of interest (such as Raising Equity in Shipping Today, Scrapping, etc).

Capital Link Investor Shipping Forums In New York, Athens and London bringing together investors, bankers, financial advisors, listed companies CEOs, analysts, and shipping industry participants.

www.MaritimeIndices.com Capital Link Maritime Indices: Capital Link developed and maintains a series of stock market maritime indices which track the performance of U.S. listed shipping stocks (CL maritime Index, CL Dry Bulk Index, CL Tanker Index, CL Container Index, CL LNG/LPG Index, CL Mixed Fleet Index, CL Shipping MLP Index – Bloomberg page: CPLI. The Indices are also distributed through the Reuters Newswires and are available on Factset.

Capital Link - New York - London - Athens New York - 230 Park Avenue, Suite 1536, New York, NY, 10169 Tel.: +1 212 661 7566 Fax: +1 212 661 7526 www.capitallink.com London - Longcroft House,2-8 Victoria Avenue, London, EC2M 4NS, U.K Tel. +44(0) 203 206 1320 Fax. +44(0) 203 206 1321 www.capitallinkforum.com Athens - 40, Agiou Konstantinou Str, Suite A 5, 151-24 Athens, Greece Tel. +30 210 6109 800 Fax +30 210 6109 801 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report IN THE NEWS Latest Company News Monday, Oct 10, 2011 Wednesday, Oct 12, 2011

Star Bulk Announces Signing of $64.5 Million Loan Facility Teekay LNG Partners and Marubeni Joint Venture to Acquire With HSH Nordbank Ownership Interest in Eight LNG Carriers From A.P. Moller- Maersk A/S Star Bulk Carriers Corp. (NASDAQ: SBLK), announced that it has entered into a new $64.5 million secured term loan agreement Teekay LNG Partners L.P. announced that its joint venture (the with HSH Nordbank, which has up to a five year term and bears Joint Venture) with Marubeni Corporation (Marubeni) has agreed interest at LIBOR plus a margin. The borrowings under this new to acquire ownership interests in eight liquefied natural gas (LNG) loan agreement together with $5.3 million in cash were used to carriers from Denmark-based global conglomerate, A.P. Moller- repay in full the Company’s two existing loan facilities with Piraeus Maersk A/S, for an aggregate purchase price of approximately Bank as agent and lender, respectively. $1.402 billion. The transaction includes the acquisition by the Joint Venture of 100 percent ownership interests in six LNG carriers and Goldenport Announces Transactions in Own Shares 26 percent ownership interests in two additional LNG carriers.

Goldenport Holdings Inc. (LSE: GPRT) announced that on 7 October 2011 it purchased through Panmure Gordon (UK) Limited NewLead Holdings Ltd. Announces Second Favorable 17,588 of its ordinary shares of US$0.01 each (“Shares”) at a price Arbitration Award Against TMT Bulk Corp. and Withdrawal of per Share of 71.875 pence. Following the purchase, the Company Vessel from Service holds 156,202 Shares in treasury and has 91,132,352 Shares in issue (excluding Shares held in treasury). The above figure of NewLead Holdings Ltd. (NASDAQ:NEWL) announced that it has 91,132,352 may be used by shareholders as the denominator for recently received a second favorable arbitration award against the calculations by which they will determine if they are required to TMT Bulk Corp. (“TMT”) for $1,969,821.75 inclusive of interest and notify their interest in, or a change to their interest in, the Company costs. This is the second favorable arbitration award to NewLead. under the FSA’s Disclosure and Transparency Rules. The total amount received to date, under both arbitration awards is $3,968,757.71. Furthermore, in early October 2011, the Company withdrew the second vessel chartered-out to TMT. The first vessel Tuesday, Oct 11, 2011 was withdrawn from TMT’s service in late September 2011.

Costamare Inc. Declares Quarterly Dividend of $0.27 per Share Ocean Rig UDW Inc. Announces Additional Well Contracts for the Eirik Raude The Board of Directors of Costamare Inc. (NYSE: CMRE) approved management’s recommendation to increase the dividend from Ocean Rig UDW Inc. (NASDAQ: ORIG) announced that it has $0.25 per share to $0.27 per share and declared a cash dividend entered into drilling contracts for three additional wells offshore on its common stock of $0.27 per common share payable on West Africa, with two independent oil operators based in the UK November 7, 2011 to stockholders of record at the close of trading and the USA respectively, for the semi-submersible rig Eirik Raude. of the Company’s common stock on the New York Stock Exchange The total revenue backlog, excluding mobilization cost, to complete on October 21, 2011. The Company has 60,300,000 shares of the three wells program is estimated at $96 million for a period common stock outstanding as of today. of approximately 175 days. The new contracts will commence in direct continuation after the completion of the existing Tullow Goldenport Announces Transactions in Own Shares contract around mid-October.

Goldenport Holdings Inc. (LSE: GPRT) announced that on 10 Goldenport Announces Transactions in Own Shares October 2011 it purchased through Panmure Gordon (UK) Limited 15,147 of its ordinary shares of US$0.01 each (“Shares”) at a price Goldenport Holdings Inc. (LSE: GPRT) announced that on 11 per Share of 71.875 pence. Following the purchase, the Company October 2011 it purchased through Panmure Gordon (UK) Limited holds 171,349 Shares in treasury and has 91,117,205 Shares in 15,066 of its ordinary shares of US$0.01 each (“Shares”) at a price issue (excluding Shares held in treasury). The above figure of per Share of 71.75 pence. Following the purchase, the Company 91,117,205 may be used by shareholders as the denominator for holds 186,415 Shares in treasury and has 91,102,139 Shares in the calculations by which they will determine if they are required to issue (excluding Shares held in treasury). The above figure of notify their interest in, or a change to their interest in, the Company 91,102,139 may be used by shareholders as the denominator for under the FSA’s Disclosure and Transparency Rules. the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA’s Disclosure and Transparency Rules.

Page 3 ABOUT THE SHIPPING MAN

When restless New York City hedge fund manager Robert Fairchild watches the Baltic Dry Cargo Index plunge 97%, registering an all-time high and a 25-year low within the span of just six months, he decides to buy a ship.

Immediately fantasizing about naming a vessel after his wife, carrying a string of worry beads and being able to introduce himself as a “shipowner” at his upcoming college reunion, Fairchild immediately embarks on an odyssey into the most exclusive, glamorous and high stakes business in the world.

From pirates off the coast of Somalia, to Wall Street investment bankers to Greek and Norwegian shipping magnates, the education of Robert Fairchild is an expensive one. In the end, he loses his hedge fund, but he gains a life - as a Shipping Man.

Part fast paced financial thriller, part ship finance text book, The Shipping Man is 310 pages of required reading for anyone with an interest in capital formation for shipping.

Available at Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report IN THE NEWS Latest Company News

Thursday, Oct 13, 2011 Horizon Lines Names Joe Rodriguez Vice President Sales and Marketing, Eastern Region d’Amico Executes Buy-Back Program Horizon Lines, Inc. (NYSE:HRZ) announced that Joe Rodriguez In accordance with the authorization issued by the Shareholders’ has been named Vice President, Sales and Marketing, Eastern meeting of 29 March 2011 and following the Board of Directors Region, for the company’s Horizon Lines, LLC operating subsidiary. resolution of 5 July 2011, d’Amico International Shipping S.A. - as Mr. Rodriguez will oversee all sales activity, pricing and marketing provided by the Consob Resolution n. 16839 of 19 March 2009 in the eastern half of the United States and Puerto Rico, reporting and of article 4.4, therein recalled, of the Commission Regulation directly to Brian Taylor, Executive Vice President, Chief Operating (CE) n.2273/2003 of 22 December 2003 - hereby discloses that Officer and Chief Commercial Officer of Horizon Lines, Inc. during the period between October 06th and October 12th 2011, repurchased, on the regulated market managed by Borsa Italiana Goldenport Announces Transactions in Own Shares S.p.A., nr. 43,888 own shares, representing the 0.02927% of the outstanding share capital of the Company, at the average price of Goldenport Holdings Inc. (LSE: GPRT) announced that on 13 Euro 0.616, for a total consideration of Euro 27,016. As at October October 2011 it purchased through Panmure Gordon (UK) Limited 12th 2011, d’Amico International Shipping S.A. holds nr. 5,073,194 8,890 of its ordinary shares of US$0.01 each (“Shares”) at a price own shares, representing the 3.38326 % of the outstanding share per Share of 72 pence. Following the purchase, the Company capital. holds 210,670 Shares in treasury and has 91,077,884 Shares in issue (excluding Shares held in treasury). The above figure of Goldenport Announces Transactions in Own Shares 91,077,884 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to Goldenport Holdings Inc. (LSE: GPRT) announced that on 12 notify their interest in, or a change to their interest in, the Company October 2011 it purchased through Panmure Gordon (UK) Limited under the FSA’s Disclosure and Transparency Rules. 15,365 of its ordinary shares of US$0.01 each (“Shares”) at a price per Share of 71.875 pence. Following the purchase, the Company holds 201,780 Shares in treasury and has 91,086,774 Shares in issue (excluding Shares held in treasury). The above figure of Monday, Oct 17, 2011 91,086,774 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to Seanergy Maritime Holdings Corp. Announces New Time notify their interest in, or a change to their interest in, the Company Charter Agreement for One of Its Vessels under the FSA’s Disclosure and Transparency Rules. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) announced that the Company has entered into new time charter agreement for one of its Capesize vessels. The M/V BET Prince, a 163,554 Friday, Oct 14, 2011 dwt Capesize dry bulk carrier built in 1995, has entered into a time charter agreement, for a period of about eleven to about thirteen TORM Announces the Sale of Two Product Tankers months at a gross charter rate linked to the adjusted Time Charter Average of the Baltic Exchange Capesize Index. The charter is TORM has entered into an agreement to sell the two LR2 product expected to commence by the end of October 2011. As a result tankers TORM Mette and TORM Marianne. The parties have agreed of this new charter party agreement, the Company has charter not to disclose the sales price. TORM Mette and TORM Marianne arrangements that cover its ownership days 96% for 2011, 70% for will be delivered to the new owners in the fourth quarter of 2011 2012 and 24% for 2013, based on the latest redelivery date of the where the effect of the transaction will be recognised in the financial charter party agreements. statements. The sale has no impact on the Company’s profit and loss statement, but a positive effect on the liquidity of approximately Goldenport Announces Transactions in Own Shares USD 20m. Following the sale, TORM’s owned fleet consists of 65.5 product tankers and two dry bulk vessels. In addition, TORM has Goldenport Holdings Inc. (LSE: GPRT) announced that on 14 four product tankers and two dry bulk vessels on order. October 2011 it purchased through Panmure Gordon (UK) Limited 9,195 of its ordinary shares of US$0.01 each (“Shares”) at a price Star Bulk Enters Into a One-Year Time Charter Agreement for per Share of 72.25 pence. Following the purchase, the Company the Star Theta holds 219,865 Shares in treasury and has 91,068,689 Shares in issue (excluding Shares held in treasury). The above figure of Star Bulk Carriers Corp. (NASDAQ: SBLK) announced that it has 91,068,689 may be used by shareholders as the denominator for entered into a time charter contract with Cargill International S.A the calculations by which they will determine if they are required to (“Cargill”) for the vessel Star Theta, for a duration of approximately notify their interest in, or a change to their interest in, the Company one year, at a gross daily rate of $14,100. The Star Theta is a under the FSA’s Disclosure and Transparency Rules. Supramax vessel of 55,425 dwt built in 2003. The new contract will contribute a minimum of $4.5 million to a maximum of $5.6 million in gross revenue. The vessel is expected to be delivered to Cargill in October 2011.

Page 5 Key Highlights

The 4th Annual International Shipping & Marine Services Forum took place on October 6, 2011 in London.

LONDON, UK–In cooperation with the London Stock Mr. Kalinowski asserted that the recent eurozone crisis and Exchange, Capital Link successfully hosted its 4th Annual the ensuing recapitalization of London banks has slowed International Shipping & Marine Services Forum on down the traditional route of finance. The London Stock Thursday, October 6, 2011, at the Grange St. Paul Hotel in Exchange in turn can help companies profit from lower London to over 300 guests. asset valuations, meet environmental standards, and invest in technology and logistics. As with its previous forums, the forum’s objective was to not only provide a comprehensive review of the shipping and SECTOR OVERVIEWS: MARINE SERVICES marine services markets, but to also heighten the visibility of listed shipping and marine services companies throughout Mr. Peter Ashworth (Equity Analyst, Charles Stanley the UK and wider European investment communities. Securities) began his address with a quick rundown of the volatile markets, specifically in London. He gave a thorough This year’s event welcomed an all-time high of over 300 presentation on the marine services sector contextualizing it attendees. The level of investor participation and the against the FTSE classification and sub-sectors. impressive roster of senior executives demonstrated not only the available opportunities for accessing capital in spite Indeed, he hearkened to the FTSE in pointing out the of volatile markets, but also investment opportunities in the high investment demand in comparison to shipping or marine services sector. shipbroking, while also categorizing the services sector into commercial, naval, leisure, and the relatively new Before the forum’s commencement, the President of offshore renewable markets. He identified the overall trend Capital Link, Mr. Nicolas Bornozis, took the time to extend of success at maintaining margins for companies serving his thanks to the London Stock Exchange for its ongoing niche markets during the recession. support for a fourth year in row, as well as to the sponsors and attendees’ respective contributions and participation. Taking note of the trends for growth—such as the growth in global trade, renewable energy, and consumer traffic—he OPENING REMARKS: LONDON AS A GLOBAL concluded, “This is a service sector-driven business, not an INVESTMENT DESTINATION asset-driven [business]. It’s [about] service-provision rather than owning ships, so equipment and regulatory- driven.” Mr. Jens-Axel Kalinowski’s (Manager, Continental Europe, Primary Markets, London Stock Exchange) opened the forum by discussing London’s historical and continuing To download presentations from this forum and for more importance as an epicenter of international shipping and information, please click here. marine services, and therefore, a leading source of capital and expertise. COMPANY PRESENTATION: JAMES FISHER & SONS PLC

The first company presentation was given byMr. Tim Harris (Chairman). He touched briefly on both the history of James Fisher & Sons plc, which he heralded as the leading marine services company in the UK with a market cap of £260 million. He also covered the company’s “consistent, simple, and straightforward strategy,” which has helped create a strong management team, high margins and ROCE, strong cash conversion, and attractive opportunities for further shareholder returns—characteristics that have primed the company for any future investments. Mr. Peter Ashworth commences the Ms. Elinor Dautlich addresses forum with his opening remarks. legal challenges in shipping today. COMPANY PRESENTATION: DP WORLD He listed a number of mitigating actions for safeguarding the many cons that accompany today’s ship management. For Ms. Fiona Piper (Vice President, Investor Relations) example, he recommended financial and natural hedging stepped forward to represent her company at the forum. As in response to forex exposure, succession planning in the only listed global port operator to operate 60 terminals response to high reliance on people and supply shortages, throughout the world, DP World comprises 10% of the global and transparency in response to difficulty in rating investment market share. With a portfolio of nine new developments risk. underway in the next 5 years, she portrayed her company as firstly container- and secondly bulk cargo-oriented. Outlining the driving forces in ship management, he accordingly ended his presentation with V.Ship’s future At Ms. Piper’s admission, DP World has had an average strategy. concession life of 43 years by operating through long-term concessions. Although the company’s biggest obstacle is the LEGAL CHALLENGES IN SHIPPING TODAY prolonged length of time port building takes, she expressed targeted emerging markets in Eastern Europe, Asia, the Ms. Elinor Dautlich (Partner, Holman Fenwick Willan LLP) Middle East, and Africa. In response to concerns of another offered forum attendees a legal perspective on the shipping recession, she claimed, “We are in a much better position industry. She may have spent time discussing low rates and today than we were back in 2008 [and] when we went into debt financing as a means to access capital, but the majority the recession in 2009.” She continued on an optimistic note of her speech consisted of the shipping industry’s legal about DP World, observing, “More importantly, 86% of our challenges in regards to rates, liquidity, piracy, sanctions, business today is focused on the more resilient, emerging competition, and bribery in light of the 2011 UK Bribery Act markets.” and in the aftermath of the Deepwater Horizon accident.

SHIP MANAGEMENT – TRENDS & DEVELOPMENTS PANEL DISCUSSION: SHIPPING & THE CAPITAL MARKETS Mr. Roberto Georgi (President, V.Ships) painted a broad picture of ship management’s current capital structure, Mr. Alaric Nightingale (Shipping Reporter, Bloomberg emphasizing the pros and cons. Among the positives listed, News) both moderated and introduced the first panel of Mr. Georgi underscored resilience to market cycles—though the day. The topic matter of concern seemed to be equity not immunity—rising barriers to entry—particularly in the markets, with panelists Mr. Phillipe Chryssicopoulos tanker sector—light and low asset requirements, strong (Managing Director and Head of Shipping EMEA, Bank of cash flow, widening target audience of cargo interests and America Merrill Lynch) aptly depicting the present state of financial investors, and brand strength. the capital markets as a “perfect storm.” Mr. Floris Lyppens

Left to right: Ms. Erifili Tsironi, Mr. Shreyas Chipalkatty Mr. Robert Giorgi speaks on ship Mr. Mark Ras presents his case on the (hidden), Mr. Joep Gorgels, and Mr. Simon Hartley participate management’s trends and developments. Shipping & Capital Markets panel. on the Shipping & Bank Lending panel. CFO Mr. Robert Perri (Box Ships Inc.) responded that his company attributes such growth through its trade routes to China, India, and Indonesia, as well as to Latin America and Africa. Mr. Tasos Aslidis (CFO, Euroseas Ltd.) agreed that though growth was not as substantial as previous years and even went down, most growth has not been concentrated along main trade routes. Rates have decreased overall, but demand is holding for ships. Adding to the dialogue, Mr. John Dragnis (Commercial Director, Goldenport Holdings, Inc.) conceded that the market was being held up by emerging markets, improving 2012 prospects as a result. Regardless of this overall stability, he warned that the health Forum attendees interact and network during a coffee break. of liner companies is key as companies’ balance sheets take heavy hits from high banker expenses. (Executive Director, Corporate Finance & Capital Markets, ABN AMRO) and Mr. Mark Ras (Senior Vice President, With charter rates depressed, ships have been resorting DVB Bank SE) shared in this consensus, using the word to chartering as a result, which should lead to the market “selective” to adequately describe the equity markets, but bouncing back. Panelists shared their individual company admitting pockets of safety in certain sectors, such as LNG strategies in the case that it doesn’t. Euroseas’ conservative, and the offshore sector, in large part due to the dynamics 5-year-old two-pronged strategy entails the company playing that differ from the general shipping markets. off of the consistently divergent trends in the dry bulk and container markets. PANEL DISCUSSION: SHIPPING & BANK LENDING Box Ships seemed to have a similar staggered approach, Mr. Simon Hartley (Partner, Norton Rose LLP) steered albeit with two separate, publicly listed companies handling panelists Mr. Joep Gorgels (Head of Transportation West- the dry bulk and container markets. Because Paragon— Europe, ABN AMRO), Mr. Shreyas Chipalkatty (Director, which is Box Ship’s predecessor and in charge of dry bulk— EMEA Shipping , Citigroup), and Ms. Erifili Tsironi (DVB owns a large percentage of Box Ships, it reaps cash flow Bank SE Representative Office Greece) on the shipping from the dividends there. and bank lending. After Mr. Hartley’s quick review of the banking industry, which continues to see the recapitalization Mr. Dragnis admitted that Goldenport Holding’s strategy was of banks and the number of banks declining, he opened the more or less similar. topic to the panelists. COMPANY PRESENTATION: HELLENIC CARRIERS LTD. Mr. Gorgels concurred with Mr. Hartley’s assessment, noting that ship financing’s capacity was at the lowest point in Ms. Fotini Karamanlis (CEO) profiled the diversified some time. As banks deleverage and margins and fees rise fleet composition, experienced management, proactive due to their basis in expensive dollars, leverage is low with chartering strategy, solid financial performance, and fleet equities; it is becoming increasingly difficult for European renewal expansion at her company, Hellenic Carriers Ltd. banks in ship financing, especially because shipping is about long-term dollar funding. Furthermore, low ratings Her presentation was appropriately framed against the also stand in the way of companies soliciting bank loans dry bulk market outlook. She provided a snapshot of the for their vessel projects. Mr. Chipalkatty expanded on freight market, dry bulk supply, and orderbook in addition to Mr. Gorgel’s evaluation, adding that most well-capitalized taking note of demand and market considerations. She also clients are able to get what they want. Rather, it is smaller brought attention to both the challenges and opportunities clients who are finding it difficult to get bank capital. Ms. inherent in the dry bulk sector. For instance, although the Tsironi agreed, noting that liquidity is small and that active market environment may be depressed, brought on by banks are scaling down in size. Still, she noted that on the oversupply, she pointed to the consistently high demand, led positive side, stronger companies are stepping up to the by growth in emerging nations, as an opportunity. plate, and some specific sectors are even flourishing, such as terminals and ports. She concluded with Hellenic Carriers’ persevering strategy and company goals: servicing their clients to secure PANEL DISCUSSION: CONTAINER SECTOR uninterrupted trading for their vessels; maintaining high standards of operations as a competitive edge in their peer Drewry Shipping Consultants Ltd.’s Head of Container group; maximizing their strong balance sheet and cash Research, Mr. Neil Dekker, stepped in as moderator for the reserves “in order to navigate through continuing challenging container sector, addressing the volatile industry that saw market conditions”; and taking advantage of price correction negative demand for the first time in 2009 and record growth to modernize and expand their fleet. in 2010. From left to right: Mr. Martin Stopford, Mr. Gust Biesbroeck, and Mr. Tony Edwards speak on the M&A, From left to right: Mr. John Dragnis and Mr. Ben Mr. Casper Burgering speaks on the global Consolidation, Growth & Investment Opportunities in Nolan share their views on the Dry Bulk Sector panel. economy and dry bulk commodities. Today’s Shipping Markets panel.

SECTOR OVERVIEW: OIL & GLOBAL ENERGY times, especially since not all segments and players of the MARKETS market feel the consequences of the sovereign debt crisis equally. Mr. Evenson stated that for this reason, Teekay Ms. Kate Fisher (Head of Tanker Research, Braemar Corporation’s current policy and strategy rely on chartering Seascope) addressed the oil and global energy markets in out their tankers: “We were a tactical fleet manager and we terms of the tanker market as well as her company. She made the judgment [that we were] better off chartering out, sought to show forum participants tanker demand and from and we were correct. But at any given point, we’ll switch where it stems, and help foster understanding about the that around and go to the spot side.” He made sure to supply and demand scenario. On the demand side, the differentiate between this economic crisis and the one that segregation between GDP growth between advanced and took place in the 80s, in which supply trumped demand. emerging economies is pronounced. As expected, emerging In today’s crisis, demand now supersedes supply, which, economies are experiencing faster growth than advanced according to Mr. Evensen, is a “good sign.” Mr. Fiori was economies, with global crude demand highest in Africa with in agreement, admitting that d’Amico has chartered almost a demand as high as in the 90 million bpd. Consumption, 50% of their fleet. Still, he voiced surprise by the length of per urban per capita, illustrate that China is leading in the crisis, estimating that it would last until 2015. consumption with an increase of 10-15% per year. There is an obvious shift in refinery capacity to the Asia-Pacific over SECTOR OVERVIEW: THE GLOBAL ECONOMY & DRY the last 15 years, a trend that demonstrates decreasing BULK COMMODITIES refining capacity in Europe and the U.S., but an increasing one in China and India. She predicted that refining would ABN AMRO’s Mr. Casper Burgering (Senior Sector become progressively and directly available at the source Economist) evaluated the prospects for the global economy in the Middle East, such as in Saudi Arabia, Iran, and Iraq. and dry bulk commodities. In the midst of a rapidly changing She observed the significance of this phenomenon in future global economy, he identified how the overall growth of the product trade as the Middle East remains a key area for G7, which represents the seven biggest economies, has supply. decreased rapidly by 20% in just 20 years, a stark contrast to China’s 12% growth in the same amount of time. She spent the next portion of her presentation focusing on China, deducing that China will lead demand growth Charting the transformation path of economies for crude for the next ten years. The shift in refinery locations will oil, as well as copper, aluminum, nickel, and finished steel, affect tanker trades, but the shipping industry can expect Mr. Burgering pinpointed how developed countries like a general, overall growth in oil demand to have a positive Germany, the U.S., and Japan have entered their maturity effect on tanker markets. phase, with China experiencing quick growth and India experiencing slow growth. Despite this general growth, PANEL DISCUSSION: TANKER SECTOR he also analyzed challenges to the two Asian countries, such as controlling inflation, easing investment growth, Moderator Mr. Henry Curra (Head of Research, ACM and stabilizing consumption growth. He continued his Shipping Group plc) continued the conversation on the assessment of future issues by subsector and region—the tanker sector, wasting no time in asking panelists Mr. Marco U.S., Europe, Brazil, South Africa, Russia, Japan, China and Fiori (CEO, d’Amico International Shipping S.A.), Mr. Peter Australia—determining a GDP forecast of sluggish growth Evensen, (President and CEO, Teekay Corporation) and rather than a double dip recession. Mr. Nikolas Tsakos (President and CEO, Tsakos Energy Navigation Ltd.) their respective views on what it exactly In summation, he concluded that the dry bulk sector will see means to be in the throes of the economic crisis. growth in its materials until 2012, albeit on a low level, with a predicted 6% for the iron ore trade, 4% for scrap, 8% for Mr. Tsakos took on the uniquely optimistic position in spite coking coal, and 3% for steel products. of being in “a supply-driven crisis.” He declared, “Every crisis provides opportunities, but it’s a good lesson; this is PANEL DISSCUSSION: DRY BULK SECTOR a crisis that we brought upon ourselves.” Mr. Evenson and Mr. Marco seemed to agree with their colleague, alluding Mr. Ben Nolan (Director and Head of Shipping Research, to adaptability as the key to success during these difficult Knight Capital Americas L.P.) began the dry bulk panel by soliciting panelists’ perspective: what can management game as major, larger companies are the ones who are teams accomplish in respect to their financing options, receiving bank financing. such as companies’ ability to obtain waivers on their loan covenants? PANEL DISCUSSION: M&A, CONSOLIDATION, GROWTH & INVESTMENT OPPORTUNITIES IN TODAY’s SHIPPING MARKETS

Moderator Mr. Tony Edwards (Partner, Corporate Finance, Stephenson Harwood), astutely noticing the schism in outlook between pessimistic bankers and optimistic shipowners, asked panelists Dr. Martin Stopford (Managing Director, Clarksons), Mr. Gust Biesbroeck (Head of Transportation, Energy, Commodities & Transportation (ECT), ABN AMRO) and Mr. Hugh Williams (Chairman and CEO, Graig Shipping Plc) their own opinions on the matter.

Dr. Stopford compared the situation to “a bit like sitting in the dentist’s waiting room, and you hear the drill going all around. You’re fairly sure that the pain isn’t going to be Guests listen to panelists and presenters with rapt attention. anything substantial. But, it is in your wisdom tooth, it is Excel Maritime Carriers Ltd.’s Mr. Pavlos Kanellopoulos at the back, it’s been there quite a while, and it could be (CFO) provided a company example to show the ease bad news.” He disagreed with the general sentiment with which they were able to request and receive covenant pervading the Dry Bulk Sector panel, noting that though relaxation within just 4 weeks. He described banks as willing shipbuilding prices haven’t performed up to par in past to cooperate with companies, as long as said company years, performance must be contextualized. He asserted had a history of workable solutions in which issues were that a lot of money earned was allocated to shipbuilding proactively rather than reactively addressed. capacity, with shipyards delivering 150 million tons of ships last year and planning to deliver more this year. Orderbooks Ms. Fotini Karamanlis (CEO, Hellenic Carriers Ltd.) may be getting thin, but shipyards won’t sell below material also offered a company example in 2009, in which two of costs and the likelihood of a shipyard closing is slim since it Hellenic carriers’ lenders obtained covenants for minimum is cheaper to sell a ship cheaply than to close. value and restructured payments of principal installments, which worked out well for company. She prefaced that this Repeating Ms. Karamanlis’ remarks in the previous panel, success, however, is probably due to long-term charters he declared, “This year’s low, will be next year’s high.” He prior to the market downturn in 2008. In fact, with or without added, “If you look at the last quarter, there’s been quite restructuring, most charters continued and hence, banks some cash coming in, especially in the dry bulk market. It’s managed to gain part of restructured principal installments only in the last quarter that there’s been a serious squeeze through sweep closes. She regarded, a little pessimistically, on cash flow and big ships don’t have the same operating that this time was different. Values are on the decline and expenses.” buying interest thin. Echoing Mr. Kanellopoulos, she stated that banks will continue to lend if there is a precedence of success, which will be determined by a close look at cash flows, cash reviews, and company commitments.

Mr. John Dragnis (Commercial Director) at Goldenport Holdings Inc. sang a slightly different tune, underscoring the quality of ships as an important factor in financing. He warned against seeing “bargains” at less reputable yards, claiming, “A vessel is not just how much it costs, it’s how well you can operate and service your charters when you’re requiring an asset.”

The panel turned once again to China, as the panelists debated whether the country would help finance projects in the dry bulk sector, contributing to oversupply. All three panelists surmised that any help from Chinese banks would probably be conditional, with them helping major players only, funding Chinese projects only, or helping ships with long-time charters to a major Chinese company. There also seemed to be widespread consensus that smaller to medium-sized companies are out of the dry bulk sector Attendees discuss forum topics covered by speakers during a break. ABN AMRO’s head of transportation, on the other hand, Supporting Sponsor: International Registries, Inc. seemed reluctant on painting a black and white picture, Media Partners: Lloyd’s List, The Maritime Executive, alleging a complex situation with banks today. He stressed Ship2Shore, TradeWinds, Worldoils that banks are dealing with their own issues, particularly with their credit portfolio on the shipping side. ORGANIZERS – CAPITAL LINK, INC. Mr. Williams redirected the focus of the crisis away from banks, pointing to game-changing trends—fuel efficiency, The Forum was organized by Capital Link, a New York cost-savings, stringent regulatory and safety environments— based Investor Relations and Financial Communications deeming them increasingly prominent trends that the industry Firm with a strategic commitment to shipping. could not ignore in fostering more investment opportunities. In terms of M&A, at least for those companies struggling to This Forum was held in cooperation with the London Stock stay afloat, he asserted that alternatives exist in public listed Exchange. markets, such as bankruptcy, voluntary exits, and other forms of consolidation. CONFERENCE MATERIAL

SPONSORS & MEDIA PARTNERS All conference material is available on Capital Link’s forum website here. Global Lead Sponsor: ABN AMRO Global Gold Sponsors: Knight Capital Group L.P., DVB Bank For further information, please contact Capital Link at: Corporate Sponsors: Charles Stanley Securities, New York: Nicolas Bornozis or Eleni Bej at +1 212 661 7566. Clarksons, Goldenport Holdings Inc., Holman Fenwick Athens: Olga Bornozi or Vicky Siabani at +30 210 6109 800. Willan LLP, Norton Rose LLP, Stephenson Harwood, London: Annie Evangeli at +44(0)20 3206 1322. V.Ships

2011-2012 Capital Link Forums CAPITAL LINK FORUM Shipping & Offshore CSR Forum CSR as a Competitive Advantage Bridging Industry, Environment & Society Thursday, October 27, 2011 - London

ParticiPating OrganizatiOns • ABN AMRO • Global Marketing Systems, Inc. (GMS) • Lloyd’s Register • A.P. Moller - Maersk Group • Holman Fenwick Willan LP • London Stock Exchange • AVIVA Investors • IHS Fairplay • Louis Dreyfus Armateurs • BIMCO • InterManager • MTI Network • Carbon War Room • International Transport Workers’ • Nordic Tankers A/S • Clipper Group A/S Federation (ITF) • RightShip • Concordia Maritime AB • International Maritime Organization • SeaBird Exploration • Damskibsselskabet NORDEN A/S (IMO) • Sustainable Shipping Initiative • Danaos Corporation • INTERTANKO • Tanker Operator • Danish Shipowners Association • Intrepid Shipping • Tsakos Energy Navigation Ltd. • FutureShip GmbH (A GL Company) • König & Cie. • V. Group Ltd • Germanischer Lloyd • Lloyd’s List • Wärtsilä North America, Inc. in cOOPeratiOn With

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suPPOrting sPOnsOr suPPOrting OrganizatiOns

Media Partners

.gr Nafsgdeepreen into the information www. Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report IN THE NEWS Investor Relations: Maximizing the Potential of the US Marketplace By Nicolas Bornozis, President of Capital Link From the October 2011 Issue of Marine Money Magazine, reprinted with permission

The US remains the capital markets hub for shipping stocks. It has the largest number of listed shipping companies, an extensive investor base which includes both institutional and individual investors, a large number of analysts and brokerage firms / investment banks actively following the sector and an expanding number of journalists, reporters and bloggers who cover shipping. At the same time, because of its size, diversity and complexity, the US marketplace is the most demanding and daunting from an IR perspective.

A successful IR program must meet the informational needs and standards of all constituencies –shareholders, prospective investors, analysts, bankers, media- going well beyond the pure fulfillment of regulatory requirements. The basic functions of an IR program are to provide to the market a consistent, clear and meaningful information flow on the company’s development and strategy and then to gather, analyze and evaluate market feedback.

A consistent IR program can be a significant competitive advantage and make a difference. The market ultimately decides the valuation levels, but a good IR program can help by making sure that investors have correct and timely information, while also expanding and diversifying the shareholder base. Compared to other overseas markets, the US is the biggest and most complex one with thousands of institutional investors and millions of individual investors. Individual investors represent between a third and a half of the daily transaction volume across the US markets and if you look at the shareholding base of shipping stocks they represent a significant percentage, which was not the case 2-3 years ago. So reaching out to this audience through a specially crafted IR program is a must.

The number of institutional investors active in shipping is large but it still represents a tiny fraction of the overall institutional investor universe in the US. Sometimes companies tend to focus mainly on the familiar territory, limiting themselves to a few large investors active in shipping. The challenge and potential is to reach out to a larger investor universe and benefit from a more extensive and more diversified investor base. An effective investor targeting program can achieve this and open up new horizons.

Finally, even though US listed companies enjoy an advantage over their non-US listed peers, both investing and shipping are global businesses and astute investors can take advantage of valuation discrepancies among stock markets. Non-US listed shipping companies should market to US institutional investors as these have the ability to transact anywhere. The limiting factor is not where a company is listed, but to what investor audience it markets itself.

Nicolas Bornozis has 29 years of experience in the US financial and capital markets and has developed Capital Link to be the largest provider of IR and financial media services to US and European listed shipping companies. Capital Link and Marine Money work closely

Page 13 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report IN THE NEWS Select Dividend Paying Shipping Stocks

SELECT DIVIDEND PAYING SHIPPING STOCKS

Quarterly Last Closing Price Annualized Company Name Ticker Dividend Annualized Dividend (Oct-14, 2011) Dividend Yield Containers Box Ships Inc TEU $0.15 $0.60 $9.46 6.34% Costamare Inc CMRE $0.27 * $1.08 $12.36 8.74%

Dry Bulk Globus Maritime Limited GLBS $0.16 $0.64 $5.00 12.80% Navios Maritime Holdings Inc NM $0.06 $0.24 $3.85 6.23% Navios Maritime Partners NMM $0.44** $1.76 $16.78 10.49% Safe Bulkers Inc SB $0.15 $0.60 $6.58 9.12% Star Bulk Carriers Corp SBLK $0.05 $0.20 $1.37 14.60%

Tankers Capital Product Partners Lp CPLP $0.2325 $0.93 $6.23 14.93% Navios Maritime Acquisition Corp NNA $0.05 $0.20 $3.38 5.92% Tsakos Energy Navigation Ltd TNP $0.15 $0.60 $5.96 10.07%

Mixed Fleet Euroseas Ltd ESEA $0.07 $0.28 $3.40 8.24%

London Listed Companies 2010 Total Last Closing Price (Oct- Annualized Dividend (Great British Pence) Ticker Dividend 14, 2011) Yield Goldenport Holdings GPRT 5.40 72.25 7.47%

*Board approved an eight percent (8%) dividend increase, beginning with the third quarter 2011 dividend, raising the quarterly dividend from $0.25 to $0.27 per common share. **Dividend increased 2.3% over the prior quarter's $0.43 per unit.

Get your message across to 36,000 weekly recipients around the globe Join a select group of shipping & financial industry’s advertisers by promoting your brand with

Capital Link’s Shipping Weekly Markets Report.

For additional advertising information and a media kit, please contact/email:

Nicolas Bornozis at +1 212 661-7566, [email protected]

Page 14 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report IN THE NEWS Weekly China Update Major Economic Indicators increasing by 1.48 million mt as compared to August and up 15.15 According to the State Administration of Customs (SAC), China’s percent year on year. In the January-September period, China’s exports grew 17.1% YoY in September after rising 24.5% in imports of iron ore amounted to 508.08 million mt, increasing by August and 20.4% in July. Imports rose 20.9%, down from the 11.1 percent year on year. increases of 30.2% in August and 22.9% in July. Meanwhile, the trade surplus saw further decline from US$31.5bn in July and At the same time, China’s daily crude steel production for mid US$17.8bn in August to US$14.5bn in September. For 9M11, September is estimated to be 1.9186 million tonnes, down 2.31 exports and imports increased 22.7% and 26.7%, compared with percent compared with early September, according to statistics the corresponding increases of 24% and 27.6% in 1H11. Overall, from China Iron and Steel Association (CISA). Daily crude steel exports and imports have maintained relatively high growth rates in production of CISA’s members is expected to reach 1.6297 million recent months, although they have fluctuated somewhat amid the tonnes, down 2.27 percent compared with the ten days ending rising comparison base and dynamic economic changes at home September 10. and abroad. Coal In September, China’s exports to most regions saw decelerate According to China National Coal Association’s estimates, China’s further, probably due to the effect of the sovereign debt crises coal supply/demand is to balance this winter and there will be and economic slowdowns in various countries. In 9M11, exports no price surges ahead. Worry about coal shortage intensifies to the US rose 14.7%, down from 15.1% in 8M11, while exports lately as the supply gets increasingly intense. Coal inventory to the European Union (EU) grew 17.4% after rising 18.5% in at Qinghuangdao Port dropped from 5.239 million tonnes on 8M11. Meanwhile, growth of exports to Japan also decelerated September 27 to 4.976 million tonnes on September 28. Insiders from 25% in 8M11 to 24.6%, still at a relatively high level that was say the stockpile downtrend is to continue. Chinese power plants supported by some mild resumption of business activities after the usually start coal reserve in October. But this year, the preparation earthquake. In 9M11, exports to the Association of Southeast Asian work was two month earlier. The situation worsened following Nations (ASEAN), Korea and Singapore gained 24.7%, 25.6% shipment difficulties on Datong-Qinghuangdao line over facility and 11.2%, compared with the rises of 24.3%, 24.4% and 10.9% overhaul and suspensions at China Coal’s mining work in Shanxi. in 8M11. Exports to India, Russia and Australia registered high Coal inventory at Qinghuangdao Port dropped from 5.239 million growth of 26%, 35.8% and 28.5%, albeit lower than the increases tonnes on September 27 to 4.976 million tonnes on September 28. of 26.3%, 39.3% and 29.6% in 8M11. Shipping Indices In September, imports of most commodities saw a significant slowdown with volume starting to decline. The import volume of soybeans dropped 6.1% but the import value still increased 22.7% in 9M11, mostly due to the price factor. For crude oil, import volume rose only 4% in 9M11, but the import value increased 43.2% on the price hikes. The import volume of iron ore climbed 11.1% and the import value jumped 50.3%. Due to the month-on-month decline in both volume and prices, the import growth of most commodities significantly slowed in September. Under the tightening policies and weakening demand in China, imports of M&E products and high-tech products also experienced some growth deceleration, from 18.9% and 16% in 1H11 to 16.3% and 13.7% in 9M11.

Steel / Iron Ore According to the latest data from the Chinese customs authorities, in September this year China’s finished steel exports rose by 20,000 mt from August to 4.21 million mt, increasing by 39.87 percent as compared to September last year. In the January September period of the current year, China’s exports of finished steel totaled 37.15 million mt, increasing by 9.5 percent year on year. As for imports, in September China imported 1.33 million mt of finished steel, decreasing by 20,000 mt month on month and increasing by 0.76 percent year on year. In the first nine months, China’s finished steel imports totaled 11.96 million mt, down 4.3 percent Shanghai Containerized Freight Index closed at 947.54 for the week ended Oct 14, losing year on year. China’s imports of semi-finished steel totaled 30,000 Shanghai2.69% week- onContainerized-week. China Coastal Freight Bulk FreightIndex Indexclosed decreased at 947.54 6.09% forto 1317.00 the mt in September, while China did not export any semi-finished steel weekduring theended same period.Oct 14, losing 2.69% week-on-week. China Coastal products during the given month. In the first nine months of the Bulk Freight Index decreased 6.09% to 1317.00 during the same year, China’s imports of semi-finished amounted to 430,000 mt, period. down by two percent year on year. Articles compiled by Capital Link, Inc with information provided by Jeff Yuan, Senior ArticlesManager atcompiled Guotai Junan by CapitalSecurities Link, Co., Ltd. Inc China with . information provided by Jeff Also in September, China imported 60.57 million mt of iron ore, Yuan, Senior Manager at Guotai Junan Securities Co., Ltd. China.

Page 15 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Currencies, Commodities & Indices Week ending Friday, October 14, 2011

KEY CURRENCY RATES

Rate Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low 3-Month LIBOR 0.4047 0.3911 3.48% 33.66% 0.53925 0.28438 10-Yr US Treas. Yield 2.2495 2.0729 8.52% -32.57% 3.3190 2.3833 USD/EUR 0.7204 0.7473 -3.60% -3.79% $0.78 $0.67 USD/GBP 0.6324 0.6432 -1.68% -2.09% $0.65 $0.60 USD/JPY 77.0300 76.6800 0.46% -5.75% $85.53 $76.11 USD/CNY 6.3765 6.3580 0.29% -3.40% $6.70 $6.34

PRECIOUS METALS

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low Gold 1,674.97 1,654.47 1.24% 18.44% $1,921.15 $1,308.25 Silver 31.87 31.95 -0.26% 3.84% $49.79 $22.83 Platinum 1,544.00 1,520.75 1.53% -12.74% $1,916.75 $1,432.50 Copper 343.15 329.50 4.14% -22.63% $460.60 $299.40 Palladium 625.80 590.00 6.07% -21.44% $848.00 $535.00

KEY AGRICULTURAL & CONSUMER COMMODITIES

Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low Corn 640.00 600.00 6.67% 3.14% $779.00 $476.00 Soybeans 1,270.00 1,158.25 9.65% -7.90% $1,465.00 $1,102.25 Wheat 622.75 607.50 2.51% -22.69% $986.75 $596.75 Cocoa 2,671.00 2,652.00 0.72% -11.99% $3,600.00 $2,540.00 Coffee 239.55 224.35 6.78% -0.40% $313.75 $181.25 Cotton 101.94 101.98 -0.04% -28.31% $144.66 $82.82 Sugar #11 27.93 25.16 11.01% -13.04% $30.60 $18.35

KEY FUTURES

Commodities Current Price Price Last Week % Change YTD %Chg 52 Week High 52 Wk Low Gas Oil 946.75 891.00 6.26% 19.50% $1,061.00 $726.75 WTI Crude 87.31 82.90 5.32% -4.71% $115.46 $74.95 Natural Gas 3.69 3.47 6.46% -20.22% $4.98 $3.21 Heating Oil 306.50 285.80 7.24% 19.78% $337.40 $232.07 Gasoline RBOB 283.50 264.57 7.16% 16.62% $307.40 $213.75

Page 16 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Currencies, Commodities & Indices

MAJOR INDICES

YTD % Index Symbol Close Last Week % Change 3-Jan-11 Change Dow Jones INDU 11,644.49 11,103.12 4.88% -0.23% 11,444.61 Dow Jones Transp. TRAN 4,691.46 4,359.55 7.61% -9.34% 4,693.59 NASDAQ CCMP 2,667.85 2,479.35 7.60% -0.88% 2,532.41 NASDAQ Transp. CTRN 2,206.23 2,045.31 7.87% -15.16% 2,151.96 S&P 500 SPX 1,224.58 1,155.46 5.98% -3.72% 1,199.38 Russell 2000 Index RTY 712.46 656.21 8.57% -10.78% 714.63 Amex Oil Index XOI 1,160.13 1,068.63 8.56% -5.36% 1,148.91 FTSE 100 Index UKX 5,466.36 5,303.40 3.07% -9.10% 5,246.99

CAPITAL LINK MARITIME INDICES

Index Symbol 14-October-11 07-October-11 % Change 3-Jan-11 YTD % Change

Capital Link Maritime Index CLMI 1,847.94 1,654.33 11.70% 2,031.89 -9.05% Tanker Index CLTI 1,714.70 1,503.77 14.03% 2,355.67 -27.21% Drybulk Index CLDBI 748.69 618.11 21.13% 894.91 -16.34% Container Index CLCI 986.05 872.69 12.99% 2,182.51 -54.82% LNG/LPG Index CLLG 3,333.67 3,007.55 10.84% 3,004.87 10.94% Mixed Fleet Index CLMFI 1,397.82 1,212.71 15.26% 1,943.64 -28.08% MLP Index CLMLP 2,630.46 2,427.04 8.38% 2,963.32 -11.23%

BALTIC INDICES

Index Symbol 14-October-11 07-October-11 % Change 4-Jan-11 YTD % Change Baltic Dry Index BDIY 2,173 2,000 8.65% 1,693 28.35% Baltic Capesize Index BCIY 3,587 3,218 11.47% 2,285 56.98% Baltic Panamax Index BPIY 2,084 1,913 8.94% 1,798 15.91% Baltic Supramax Index BSI 1,594 1,533 3.98% 1,421 12.17% Baltic Handysize Index BHSI 822 774 6.20% 807 1.86% Baltic Dirty Tanker Index BDTI 826 777 6.31% 842 -1.90% Baltic Clean Tanker Index BCTI 706 709 -0.42% 635 11.18%

Page 17 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Shipping Equities: The Week in Review SHIPPING EQUITIES OUTPERFORMED THE BROADER MARKET DRY BULK STOCKS THE BEST PERFORMERS

During last week, shipping equities outperformed the broader market. The Capital Link Maritime Index (CLMI), a composite index of all US listed shipping stocks increasing 11.70% compared to the S&P 500 gaining 5.98%, and the Dow Jones Industrial Average (DJII) climbing 4.88%. Year-to-date, the CLMI has lost 9.05% versus the losses of 0.23% for the DJII and 3.72% for the S&P 500. The broader markets showed solid gains.

Each of the shipping sector ended up higher at the close of last week, and Dry Bulk stocks performed the best during last week, with the Capital Link Mixed Dry Bulk Index increasing 21.13%, compared to the gains of 15.26% for Capital Link Mixed Fleet Index, 14.03% for Capital Link Tanker Index, 12.99% for Capital Link Container Index, 10.84% for Capital Link LNG/LPG Index, and 8.38% for Capital Link MLP Index. Year-to-date, the best performing sector has been LNG/LPG stocks, with the Capital Link LNG/LPG Index gaining 10.94%, followed by Capital Link MLP Index decreasing 11.23% and Capital Link Dry Bulk Index sliding 16.34%. The top three largest weekly trading gainers are Tops Ships, Inc (TOPS), General Maritime Holdings, (GMR), and Excel Maritime (EXM), with stock prices increasing 99.06%, 94.12% and 59.26%, respectively. London Listed Friday Price Last % YTD 52 Week 52 Week 1 Month Ticker Companies (GBp) Close Week Change %Chg High Low Average Volume During last week, dry bulk stocks outperformedHellenic the physical Carriers Ltd shipping HCL market,46.50 as the Baltic46.00 Dry1.09% Index -(BDI)40.00% increased81.00 8.65%44.00 compared49,163.60 Goldenport Holdings GPRT 72.25 71.50 1.05% -37.98% 132.00 69.00 52,993.90 to a gain of 21.13% for the Capital Link Dry Bulk Index. Year-to-date, the BDI has gained 28.35% compared to a loss of 16.34% for the Friday Price Last % YTD 52 Week 52 Week 1 Month Capital Link Dry Bulk Index. Capesize spot ratesMilan remained Listed Company elevated (Euro) due Tickerto the strong chartering activities out of Australia and Brazil. Close Week Change %Chg High Low Average d’Amico International Shipping DIS 0.63 0.60 5.00% -36.36% 1.12 0.56 VolumeN/A Tanker stocks outperformed the physical tanker shipping market during last week, with the Baltic Dirty Tanker Index (BDTI) increasing 6.31% and the Baltic Clean Tanker Index (BCTI) losing 0.42% compared to a gainFriday of 14.03% Price Lastfor the %Capital Link Tanker52 Week Index. 52 Year-to-Week 1 Month Blank Check Companies Ticker YTD %Chg date, the BDTI has lost 1.90% and the BCTI has gained 11.18%, while the CapitalClose Link TankerWeek IndexChange has lost 27.21%.High Brent CrudeLow OilAverage Nautilus Marine Acquisition gained 3.86% for the week, and 18.74% year-to-date.Corp The VLCC marketNMAR softened 9. last50 week9.56 due to-0.63% overcapacity. 0.00% Clean9.50 product 9.40 tanker N/A rates remained flat from close of last week. Nautilus Marine Acquisition Corp Warrants NMARW 0.39 0.30 30.00% -2.50% 0.53 0.30 N/A The Trading Statistics supplied by Knight Capital MARITIME INDEX DAILY COMPARISON CHARTS (YTD)* provide details of the trading performance of each shipping stock and analyze the market’s trading Capital 1.10 Link momentum and trends for the week and year-to- Maritime date. 1.00 Index S&P 500 The objective of the Capital Link Maritime Indices is 0.90 to enable investors, as well as all shipping market 0.80 Russell participants, to better track the performance of 2000 listed shipping stocks individually, by sector or 0.70 as an industry. Performance can be compared to *SOURCE: BLOOMBERG other individual shipping stocks, to their sector, to the broader market, as well as to the physical CAPITAL LINK TANKER INDEX DAILY COMPARISON CHARTS (YTD)* underlying shipping markets or other commodities. 1.90 Capital The Indices currently focus only on companies Link 1.70 Tanker listed on US Exchanges providing a homogeneous 1.50 Index universe. They are calculated daily and are based 1.30 Baltic on the market capitalization weighting of the stocks 1.10 Clean 0.90 Tanker in each index. In terms of historical data, the indices Index 0.70 Baltic Dirty go back to January 1, 2005, thereby providing 0.50 Tanker investors with significant historical performance. Index

*SOURCE: BLOOMBERG There are seven indices in total; the Capital Link Maritime Index comprised of all 50 listed shipping CAPITAL LINK DRY BULK INDEX DAILY COMPARISON CHARTS (YTD)* stocks, and six Sector Indices, the CL Dry Bulk 1.40 1.25 Index, the CL Tanker Index, the CL Container Capital Link Index, the CL LNG / LPG Index, the CL Mixed Fleet 1.10 Drybulk Index Index and the CL Maritime MLP Index. 0.95 0.80 0.65 The Index values are updated daily after the 0.50 Baltic Dry Index market close and can be accessed at www. 0.35 CapitalLinkShipping.com or at or www.

MaritimeIndices.com. They can also be found *SOURCE: BLOOMBERG through the Bloomberg page “CPLI” and Reuters.

Page 18 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Shipping Equities

Friday Prev. Week % YTD 52 Week 52 Week 1 Month Average Dry Bulk Ticker Close Close Change %Chg High Low Volume Baltic Trading Ltd BALT $5.69 $4.60 23.70% -45.50% $12.69 $3.64 141,989 Diana Shipping Inc DSX $8.45 $7.08 19.35% -27.65% $13.71 $6.59 498,258 DryShips Inc DRYS $2.74 $2.24 22.32% -47.21% $6.21 $1.75 7,486,461 Eagle Bulk Shipping Inc EGLE $1.70 $1.36 25.00% -65.93% $5.75 $1.26 785,977 Excel Maritime Carriers EXM $3.01 $1.89 59.26% -47.38% $6.63 $1.63 500,783 FreeSeas Inc FREE $0.90 $0.76 18.88% -75.91% $5.08 $0.62 21,190 Genco Shipping GNK $9.29 $6.90 34.64% -36.06% $18.08 $4.15 904,925 Globus Maritime GLBS $5.00 $5.15 -2.91% -48.61% $13.59 $4.58 9,374 Navios Maritime Hldgs NM $3.85 $3.04 26.64% -29.10% $6.29 $2.88 641,029 Navios Maritime Ptns NMM $16.78 $13.85 21.16% -15.04% $21.56 $11.06 253,605 OceanFreight Inc OCNF $18.87 $18.30 3.14% 1.45% $23.00 $5.22 31,300 Paragon Shipping Inc PRGN $1.20 $0.85 41.18% -65.12% $4.00 $0.66 367,369 Safe Bulkers Inc SB $6.58 $5.70 15.44% -25.90% $9.78 $5.28 93,348 Seanergy Maritime Hldg SHIP $3.57 $2.79 27.96% -75.21% $20.25 $2.71 7,806 Star Bulk Carriers Corp SBLK $1.37 $1.23 11.38% -49.45% $3.23 $1.00 183,873 TBS International PLC TBSI $0.76 $0.75 1.33% -73.88% $5.04 $0.65 31,537

Friday Price % YTD 52 Week 52 Week 1 Month Average Tankers Ticker Close Last Change %Chg High Low Volume Week Aegean Marine Petrol ANW $4.95 $3.84 28.91% -52.54% $17.79 $3.19 411,086 Capital Product Ptns CPLP $6.23 $5.74 8.54% -35.17% $11.39 $4.85 222,929 DHT Holdings Inc DHT $1.93 $1.70 13.53% -59.96% $5.19 $1.51 626,734 Frontline Ltd FRO $5.41 $4.40 22.95% -79.17% $29.15 $3.88 2,229,144 General Maritime Corp GMR $0.33 $0.17 94.18% -90.23% $4.46 $0.12 2,392,806 Navios Maritime Acq. NNA $3.38 $3.40 -0.59% -16.54% $5.87 $3.00 29,717 Nordic American Tanker NAT $14.82 $12.56 17.99% -43.63% $27.50 $11.58 416,877 Omega Navigation Ent. ONAVQ.PK $0.22 $0.23 -4.27% -83.28% $1.54 $0.13 46,339 Overseas Shipholding OSG $15.24 $12.37 23.20% -57.50% $38.32 $11.80 825,056 Scorpio Tankers Inc STNG $5.94 $5.10 16.47% -42.55% $12.18 $4.69 149,033 Teekay Corp TOO $25.59 $23.30 9.83% -7.98% $31.50 $22.01 166,319 Teekay Offshore Ptns TK $25.21 $21.46 17.47% -24.00% $37.93 $20.67 534,097 Teekay Tankers Ltd TNK $4.95 $4.17 18.71% -60.75% $12.99 $3.48 519,838 Torm A/S TRMD $1.31 $1.29 1.55% -81.73% $7.80 $1.15 14,124 Tsakos Energy Nav. TNP $5.96 $5.44 9.56% -40.81% $13.10 $5.10 124,817

Friday Price Last % YTD 52 Week 52 Week 1 Month Average Containers Ticker Close Week Change %Chg High Low Volume

Friday Price Last % YTD 52 Week 52 Week 1 Month Average LNG/LPG Ticker Close Week Change %Chg High Low Volume Golar LNG Ltd GLNG $35.90 $31.32 14.62% 135.09% $39.90 $12.75 653,408 Golar LNG Partners LP GMLP $25.90 $24.40 6.15% 4.23% $29.74 $22.41 119,859 StealthGas Inc GASS $4.05 $3.85 5.19% -50.25% $8.80 $3.40 35,698 Teekay LNG Partners TGP $34.78 $32.26 7.81% -8.64% $41.50 $28.61 123,214

Friday Price Last % YTD 52 Week 52 Week 1 Month Average Mixed Fleet Ticker Close Week Change %Chg High Low Volume B+H Ocean Carriers Ltd BHO $3.89 $3.55 9.58% -8.69% $7.56 $2.65 1,315 $3.40 $3.16 7.59% -11.23% $5.28 $2.85 59,881 Euroseas Ltd ESEA Page 19 Knightsbridge Tankers VLCCF $17.38 $15.85 9.65% -23.40% $25.80 $15.05 141,955 NewLead Holdings Ltd NEWL $0.85 $0.75 13.33% -66.00% $4.54 $0.53 4,413 Ship Finance Intl SFL $14.04 $11.84 18.58% -35.74% $23.07 $11.26 414,496 TOP Ships Inc TOPS $2.11 $1.06 99.81% -80.28% $11.60 $1.00 11,250

Friday Price Last % YTD 52 Week 52 Week 1 Month Average Containers Ticker Close Week Change %Chg High Low Volume

Box Ships Inc TEU $9.46 $7.80 21.28% -14.00% $12.00 $6.44 96,224 Costamare Inc CMRE $12.36 $11.60 6.55% -14.11% $18.48 $10.55 116,802 Danaos Corp DAC $3.23 $3.06 5.56% -17.39% $7.87 $2.65 26,395 Diana Containerships DCIX $5.23 $4.66 12.21% -65.70% $15.50 $4.58 66,898 Global Ship Lease Inc GSL $2.71 $1.85 46.49% -46.34% $7.75 $1.80 80,327 Horizon Lines Inc HRZ $0.32 $0.29 10.34% -92.83% $5.95 $0.25 818,383 Seaspan Corp SSW $13.28 $11.02 20.51% 1.84% $21.33 $10.21 227,222 Capital Link Shipping Monday, October 17, 2011 (Week 41) Friday Price Last % YTD 52 Week 52 Week 1 Month Average LNG/LPG Ticker Weekly MarketsClose Report Week Change %Chg High Low Volume Golar LNG Ltd GLNG $35.90 $31.32 14.62% 135.09%CAPITAL $39.90 MARKETS$12.75 653,408 DATA Golar LNG Partners LP GMLP $25.90 $24.40 6.15% 4.23% $29.74 $22.41 119,859 StealthGas Inc GASS $4.05 $3.85 5.19% -50.25% $8.80 $3.40 35,698 TeekayShipping LNG Partners EquitiesTGP $34.78 $32.26 7.81% -8.64% $41.50 $28.61 123,214

Friday Price Last % YTD 52 Week 52 Week 1 Month Average Mixed Fleet Ticker Close Week Change %Chg High Low Volume B+H Ocean Carriers Ltd BHO $3.89 $3.55 9.58% -8.69% $7.56 $2.65 1,315 Euroseas Ltd ESEA $3.40 $3.16 7.59% -11.23% $5.28 $2.85 59,881 Knightsbridge Tankers VLCCF $17.38 $15.85 9.65% -23.40% $25.80 $15.05 141,955 NewLead Holdings Ltd NEWL $0.85 $0.75 13.33% -66.00% $4.54 $0.53 4,413 Ship Finance Intl SFL $14.04 $11.84 18.58% -35.74% $23.07 $11.26 414,496 TOP Ships Inc TOPS $2.11 $1.06 99.81% -80.28% $11.60 $1.00 11,250

London Listed Friday Price Last % YTD 52 Week 52 Week 1 Month Ticker Companies (GBp) Close Week Change %Chg High Low Average Volume Hellenic Carriers Ltd HCL 46.50 46.00 1.09% -40.00% 81.00 44.00 49,163.60 Goldenport Holdings GPRT 72.25 71.50 1.05% -37.98% 132.00 69.00 52,993.90

Friday Price Last % YTD 52 Week 52 Week 1 Month Milan Listed Company (Euro) Ticker Close Week Change %Chg High Low Average d’Amico International Shipping DIS 0.63 0.60 5.00% -36.36% 1.12 0.56 VolumeN/A

Friday Price Last % 52 Week 52 Week 1 Month Blank Check Companies Ticker YTD %Chg Close Week Change High Low Average Nautilus Marine Acquisition Corp NMAR 9.50 9.56 -0.63% 0.00% 9.50 9.40 N/A Nautilus Marine Acquisition Corp Warrants NMARW 0.39 0.30 30.00% -2.50% 0.53 0.30 N/A

MARITIME INDEX DAILY COMPARISON CHARTS (YTD)*

Capital 1.10 Link Maritime 1.00 Index Capital Link S&P 500 0.90

0.80 Shipping Russell 2000 0.70

*SOURCE: BLOOMBERG

CAPITAL LINK TANKER INDEX DAILY COMPARISON CHARTS (YTD)*

1.90 Capital Link 1.70 Tanker 1.50 Index 1.30 Baltic 1.10 Clean 0.90 Tanker Index Trac0.70k all U.S. & European listed Shipping companies and access: earnBalticings Dirty & c0.50onference call calendar, media interviews, press releases, news, blTankerogs, stock prices/charts & presentations Index

Visit CapitalLinkShipping.com *SOURCE: BLOOMBERG

CAPITAL LINK DRY BULK INDEX DAILY COMPARISON CHARTS (YTD)* Page 20

1.40 1.25 Capital Link 1.10 Drybulk Index 0.95 0.80 0.65 0.50 Baltic Dry Index 0.35

*SOURCE: BLOOMBERG

Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Weekly Trading Statistics

Custom Statistics Prepared Weekly for Capital Link Shipping

BROAD MARKET

Percent Change of Major Indexes for the Week Ending Friday, October 14, 2011 Name Symbol Close Net Gain Percent Gain Russell 2000 Index RUT 712.46 56.25 8.57% Nasdasq Transportation Index TRANX 2206.23 160.92 7.87% Nasdaq-100 Index NDX 2371.94 169.18 7.68% Dow Jones Transportation Index TRAN 4691.46 331.91 7.61% Nasdaq Composite Index COMPX 2667.85 188.50 7.60% Phlx Semiconductor Sector Index SOX 380.86 24.13 6.76% Russell 3000 Index RUA 722.74 42.79 6.29% Russell 1000 Index RUI 675.52 38.87 6.11% S&P 500 Index SPX 1224.58 69.12 5.98% Dow Jones Industrial Average Index INDU 11644.49 541.37 4.88%

Index Data: INDU (Dow Jones Industrial Average INDU Important Moving Averages Index. The INDU closed today at 11,644.49 for a weekly gain of 541.37 pts (+4.8758%). The high of the 50 Day: 11,200.78 week was 11,681.57 while the low was 11,104.64 (close = 93.57% of high/low range). The INDU closed 100 Day: 11,735.14 9.93% from its 52 week high (12,928.45) and 12.37% 200 Day: 11,968.46 from its 52 week low (10,362.26).

SHIPPING INDUSTRY DATA (50 Companies)

Moving Averages

 91.67% closed > 10D Moving Average.  56.25% closed > 50D Moving Average.  16.67% closed > 100D Moving Average.  6.25% closed > 200D Moving Average

Top Upside Momentum (Issues with the greatest Top Downside Momentum (Issues with the greatest 100 day upside momentum*) 100 day downward momentum*) Weekly % 50-Day % Weekly % 50-Day % Symbol Close Symbol Close Change Change Change Change GNK 9.29 34.64% 94.76% HRZ 0.32 10.34% -65.96% OCNF 18.87 3.11% 30.05% TRMD 1.31 1.55% -53.05% EXM 3.01 59.26% 41.98% FREE 0.9 18.42% -37.06% NMM 16.78 21.16% 25.60% DHT 1.93 13.53% -38.73% GLNG 35.9 14.62% 7.20% GMR 0.33 94.12% -62.07% SSW 13.28 20.51% 18.25% FRO 5.41 22.95% -36.20% TGP 34.78 7.81% 5.49% NEWL 0.85 13.33% -29.17% BHO 3.89 9.58% 5.14% GLBS 5 -2.91% -21.26% TBSI 0.76 1.33% -42.86% *Momentum: (100D % change) + 1.5*(50D % change) + DAC 3.23 5.56% -10.77% 2.0*(10D % change) for each stock then sort group in descending order and report the top 10. *Momentum: (100D % change) + 1.5*(50D % change) + 2.0*(10D % change) for each stock - sort names that have a negative value in ascending order - report the top 10.

Page 22

Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Weekly Trading Statistics

Top Consecutive Higher Closes Top Consecutive Lower Closes Symbol Close Up Streak Symbol Close Down Streak OCNF 18.87 9 CPLP 6.23 -2 GNK 9.29 9 DAC 3.23 -2 NMM 16.78 9 FRO 5.41 -2 TEU 9.46 6 TBSI 0.76 -2 NM 3.85 6 TGP 34.78 5 ALEX 39.61 5 PRGN 1.2 5 SB 6.58 5 TOO 25.59 5

Top Largest Weekly Trading Gains Top Largest Weekly Trading Losses Close One Friday Net % Close One Friday Net % Symbol Symbol Week Ago Close Change Change Week Ago Close Change Change PRGN 0.79 0.85 0.06 7.59% GLBS 5.15 5 -0.15 -2.91% TOPS 1.06 2.11 1.05 99.06% NNA 3.4 3.38 -0.02 -0.59% GMR 0.17 0.33 0.16 94.12% EXM 1.89 3.01 1.12 59.26%

GSL 1.85 2.71 0.86 46.49% PRGN 0.85 1.2 0.35 41.18% GNK 6.9 9.29 2.39 34.64% ANW 3.84 4.95 1.11 28.91% SHIP 2.79 3.57 0.78 27.96% NM 3.04 3.85 0.81 26.64% EGLE 1.36 1.7 0.34 25.00%

Top Largest Monthly Trading Gains (A month has Top Largest Monthly Trading*Losses (A month has been standardized to 20 trading days) been standardized to 20 trading days) Prior Friday Net Prior Net % Symbol % Change Symbol Friday Close Close Close Change Close Change Change TOPS 1.53 2.11 0.58 37.91% HRZ 0.45 0.32 -0.13 -28.89% EXM 2.48 3.01 0.53 21.37% TBSI 0.98 0.76 -0.22 -22.45% GNK 7.86 9.29 1.43 18.19% DHT 2.44 1.93 -0.51 -20.90% NEWL 0.73 0.85 0.12 16.44% TRMD 1.63 1.31 -0.32 -19.63% NMM 14.49 16.78 2.29 15.80% TNK 6.04 4.95 -1.09 -18.05% TEU 8.57 9.46 0.89 10.39% SHIP 4.35 3.57 -0.78 -17.93% GLNG 32.8 35.9 3.10 9.45% EGLE 2.07 1.7 -0.37 -17.87% BALT 5.27 5.69 0.42 7.97% DRYS 3.24 2.74 -0.50 -15.43% OCNF 17.6 18.87 1.27 7.22% GLBS 5.89 5 -0.89 -15.11% DAC 3.78 3.23 -0.55 -14.55%

TGP 32.66 34.78 2.12 6.49%

Stocks Nearest to 52-Week Highs Stocks Nearest To 52-Week Lows Symbol 52W High % Away Symbol 52W Low % Away GLNG 39.57 -9.28% TRMD 1.15 13.91% GMLP 29.74 -12.91% DCIX 4.58 14.19% TGP 40.10 -13.27% NNA 2.95 14.56% TOO 30.45 -15.96% VLCCF 15.05 15.48% OCNF 23.00 -17.96% GMLP 22.41 15.57% NMM 20.53 -18.26% TOO 22.01 16.27% TEU 11.80 -19.86% TNP 5.10 16.86% ALEX 54.78 -27.69% TBSI 0.65 16.92% VLCCF 24.60 -29.34% GASS 3.40 19.12% SB 9.39 -29.90% ESEA 2.85 19.30%

Page 23 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA Weekly Trading Statistics

Top Stocks with Highest Weekly Volume Run Rate* > 1 Symbol Close Net % Change Run Rate TOPS 2.11 99.06% 4.0749 CMRE 12.36 6.55% 2.6259 GMR 0.33 94.12% 2.4774 GMLP 25.9 6.15% 1.7898 HRZ 0.32 10.34% 1.7203 OCNF 18.87 3.11% 1.6698 NM 3.85 26.64% 1.6280 SHIP 3.57 27.96% 1.5120 EXM 3.01 59.26% 1.4870 CPLP 6.23 8.54% 1.3107

*The Volume Run Rate is calculated by dividing the current week's volume by the average volume over the last 20 weeks. For example, a run rate of 2.0 means the stock traded twice its average volume.

Top Year-To-Date Gainers Top Year-To-Date Decliners Symbol YTD Gain % Symbol YTD Decline % GLNG 146.91% HRZ -92.68% SSW 10.67% GMR -89.85% GMLP 4.23% TRMD -81.26% OCNF 2.55% TOPS -80.64% ALEX 1.02% FRO -78.40% FREE -75.94% SHIP -74.13% TBSI -73.79% EGLE -65.86% DCIX -65.48%

The following are the 50 members of this group: Symbol – Name: ALEX - Alexander & Baldwin Inc; ANW - Aegean Marine Petroleum Network Inc; BALT - Baltic Trading Ltd; BHO - B+H Ocean Carriers Ltd; CPLP - Capital Product Partners LP; CMRE- Costamere, Inc.; DAC - Danaos Corp; DCIX – Diana Containerships; DHT - DHT Maritime Inc; DRYS - DryShips Inc; DSX - Diana Shipping Inc; EGLE - Eagle Bulk Shipping Inc; ESEA - Euroseas Ltd; EXM - Excel Maritime Carriers Ltd; FREE – FreeSeas; FRO - Frontline Ltd; GASS - StealthGas Inc; GLBS – Globus Maritime Limited ; GLNG - Golar LNG Ltd; GMLP – Golar LNG Partners; GMR - General Maritime Corp; GNK - Genco Shipping & Trading Ltd; GSL - Global Ship Lease Inc; HRZ - Horizon Lines Inc; NAT - Nordic American Tanker Shipping; NEWL - NewLead Holdings Ltd; NM - Navios Maritime Holdings Inc; NMM - Navios Maritime Partners LP; NNA - Navios Maritime Acquisition Corp; OCNF - OceanFreight Inc; ONAV - Omega Navigation Enterprises Inc; OSG - Overseas Shipholding Group Inc; PRGN - Paragon Shipping Inc; SB - Safe Bulkers Inc; SBLK - Star Bulk Carriers Corp; SFL - Ship Finance International Ltd; SHIP - Seanergy Maritime Holdings Corp; SSW - Seaspan Corp; STNG - Scorpio Tankers Inc; TBSI - TBS International Ltd; TEU – Box Ships Inc; TGP - Teekay LNG Partners LP; TK - Teekay Corp; TNK - Teekay Tankers Ltd; TNP - Tsakos Energy Navigation Ltd; TOO - Teekay Offshore Partners LP; TOPS - TOP Ships Inc; TRMD - D/S Torm A/S; VLCCF - Knightsbridge Tankers Ltd

Notes These symbols were ignored in some analysis (i.e. 200 day moving average) due to the lack of historical data: DCIX, GMLP, and TEU. 0 DISCLAIMER This communication has been prepared by Knight Equity Markets, L.P. The information set forth above has been compiled from third party sources believed by Knight to be reliable, but Knight does not represent or warrant its accuracy, completeness or timeliness of the information and Knight, and its affiliates, are not responsible for losses or damages arising out of errors or omissions, delays in the receipt of this information, or any actions taken in reliance thereon. The information provided herein is not intended to provide a sufficient or partial basis on which to make an investment decision. The communication is for your general information only and is not an offer or solicitation to buy or sell any security or product. Knight and its affiliates most likely make a market in the securities mentioned in this document. Historical price(s) or value(s) are as of the date and, if applicable, time indicated. Knight does not accept any responsibility to update any information contained in this communication. Knight and/or its affiliates, officers, directors and employees, including persons involved in the preparation or issuance of this material, may, from time to time, have long or short positions in, or buy or sell (on a principal basis or otherwise) the securities mentioned in this communication which may be inconsistent with the views expressed herein. Questions regarding the information presented herein or a request for a copy of this document should be referred to your Knight representative. Copyright 2011 Knight Equity Markets, L.P. Member NASD/SIPC. All rights reserved.

Page 24 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report CAPITAL MARKETS DATA

Shipping Bonds Contributed by Month to date high yield deal volume is $0.0 billion in 0 deals. The year to date high yield deal volume is $217.279 billion in 486 deals. As for the secondary, the S&P/LSTA Leveraged Loan 100 gained 21 basis points, to close at 89.28. The current default rate by number of issuers is 0.92% for October, versus 0.9% for September. There were no BWICs this week. Year, to date total BWIC volume is $1.88 billion, versus $1.91 billion in the same period in 2010.

Eitzen Maritime Services ASA received 100% of the votes for its restructuring plan at meetings held October 12th and 13th. The restructuring includes a $10mm senior unsecured bond, conversion of bond, less any amount made in cash, into 95% of the company’s post-restructuring stock, the possibility of new board members, and a private placement of NOK 80 million to repay bonds prior to conversion.

This week Moody’s downgraded Sovcomflot from Baa3 to Ba1 with a negative outlook, due to the weakness in the industry combined with the fact the company is investing in expansion and has lower operating performance and financial metrics.

Shipping Relative Value Analysis

As of Amount Issue Next Call 10/14/11 Issuer Coupon Issue Maturity Out Rating Price YTW STW Date Price

Shipping American Commercial (ACLI) 12.500% Sr Sec Nts 07/15/17 $200 B2 / B+ 106.00 10.51% 941 bps 07/15/13 106.25

American Petroleum Tankers (AMPETR) 10.250% Sr Sec Nts 05/01/15 $258 B1 / B+ 98.00 10.94% 985 bps 05/01/12 105.13

Berlian Laju Tanker (BLTAIJ) 7.500% Sr Un Nts 05/15/14 $400 NR/ CCC- 36.00 58.58% 5810 bps 05/15/12 103.75

CMA CGM (CMACG) 8.500% Sr Un Nts 04/15/17 $475 B3 / B- 40.00 32.72% 3162 bps 04/15/14 104.25 8.875% Sr Un Nts 04/15/19 $325 B3 / B- 42.79 27.09% 2781 bps 04/15/15 104.44 General Maritime (GMR) 12.000% Sr Un Nts 11/15/17 $300 Ca / CCC- 23.33 59.73% 5864 bps 11/15/13 106.00 Golden State Petro (GOLDEN) 8.040% Sr Sec Nts 02/01/19 $100 B2 / BB+ 97.00 8.60% 775 bps nc nc Great Lakes Dredge & Dock (GLDD) 7.375% Sr Un Nts 02/01/19 $250 B3 / B 104.88 6.27% 518 bps 02/01/15 103.69 DryShips (DRYS) 5.000% Conv Nts 12/01/14 $700 NR/ NR 67.13 19.57% 1909 bps nc nc Excel Maritime (EXM) 1.875% Conv Nts 10/15/27 $150 NR/ NR 57.19 22.23% 2175 bps 10/22/14 100.00 Horizon Lines (HRZ) 6.000% Conv Nts 04/15/17 $179 NR/ NR NA NA NA nc nc Marquette Transportation (MARTRA) 10.875% Sr Sec Nts 01/15/17 $250 B3 / B- 95.50 12.05% 1036 bps 01/15/13 108.16 Navios Maritime Acquisition (NNA) 8.625% Sr Sec Nts 11/01/17 $505 B2 / B 75.25 15.00% 1390 bps 11/01/13 104.31 Navios Maritime (NM) 8.875% Sr Sec Nts 11/01/17 $400 Ba3 / BB- 95.00 10.00% 890 bps 11/01/13 104.44 8.125% Sr Un Nts 02/15/19 $350 B3 / B+ 82.50 11.75% 953 bps 02/15/15 104.06 9.250% Sr Un Nts 04/15/19 $200 B3 / B+ 102.25 8.72% 763 bps 04/15/14 106.94 Overseas Shipholding (OSG) 8.750% Sr Un Nts 12/01/13 $73 B2 / B 103.88 6.75% 648 bps nc nc 8.125% Sr Un Nts 03/30/18 $300 B2 / B 73.00 14.75% 1254 bps nc nc 7.500% Sr Un Nts 02/15/24 $146 B2 / B 57.00 15.38% 1316 bps nc nc Royal Caribbean (RCL) 7.000% Sr Un Nts 06/15/13 $550 Ba2 / BB 103.50 4.77% 451 bps nc nc 6.875% Sr Un Nts 12/01/13 $350 Ba2 / BB 103.00 5.35% 509 bps nc nc 5.625% Sr Un Nts 01/27/14 Page$1,000 25 Ba2 / BB 92.75 9.28% 861 bps nc nc 11.875% Sr Un Nts 07/15/15 $300 Ba2 / BB 115.25 7.15% 605 bps nc nc 7.250% Sr Un Nts 06/15/16 $350 Ba2 / BB 103.50 6.37% 527 bps nc nc 7.250% Sr Un Nts 03/15/18 $150 Ba2 / BB 100.00 7.25% 503 bps nc nc 7.500% Sr Un Nts 10/15/27 $300 Ba2 / BB 94.25 8.15% 496 bps nc nc Ship Finance (SHIPFI) 8.500% Sr Un Nts 12/15/13 $296 B1 / B+ 94.90 11.22% 1095 bps 11/14/11 101.42 6.970% Sr Un Nts 04/07/14 $500 NR/ NR NA NA NA 10/07/13 100.50 3.750% Sr Un Nts 02/10/16 $125 NR/ NR 74.33 11.78% 1036 bps nc nc Stena AB (STENA) 7.000% Sr Un Nts 12/01/16 $129 Ba3 / BB+ 99.10 7.21% 611 bps 11/14/11 102.33 6.125% Sr Un Nts 02/01/17 $300 Ba3 / BB+ 86.58 9.40% 818 bps nc nc 5.875% Sr Un Nts 02/01/19 $102 Ba3 / BB+ 74.81 10.98% 985 bps nc nc 7.875% Sr Un Nts 03/15/20 $200 Ba3 / BB+ 83.81 10.86% 919 bps nc nc Teekay Corp (TK) 8.500% Sr Un Nts 01/15/20 $450 B2 / BB /*- 93.00 9.75% 753 bps nc nc Trailer Bridge (TRBR) 9.250% Sr Sec Nts 11/15/11 $83 Caa2 / CCC /*- 89.16 171.12% 24801 bps 11/14/11 100.00 United Maritime (UNMTGR) 11.750% Sr Sec Nts 06/15/15 $184 B3 / B 98.00 12.43% 1134 bps 12/15/12 105.88 Windsor Petroleum (WINPET) 7.840% Sr Sec Nts 01/15/21 $224 Caa1 / BB- NA NA NA nc nc

Supply Vessels Gulfmark Offshore (GMRK) 7.750% Sr Un Nts 07/15/14 $160 B1 / BB- 98.25 8.47% 799 bps 11/14/11 101.29 Hornbeck Offshore Services (HOS) 6.125% Sr Un Nts 12/01/14 $300 Ba3 / B+ 98.00 6.85% 636 bps 11/14/11 102.04 8.000% Sr Un Nts 09/01/17 $250 Ba3 / B+ 99.00 8.21% 712 bps 09/01/13 104.00 1.625% Conv Nts 11/15/26 $250 NR/ B+ 94.50 4.43% 417 bps 11/15/13 100.00 Seacor Holdings (CKH) 5.875% Sr Un Nts 10/01/12 $178 Ba1 / BB+ 101.25 4.51% 425 bps nc nc 7.375% Sr Un Nts 10/01/19 $234 Ba1 / BB+ 107.50 6.17% 395 bps nc nc

Source: Knight, Company Fillings, Bloomberg Shipping Relative Value Analysis

As of Amount Issue Next Call 10/14/11 Issuer Coupon Issue Maturity Out Rating Price YTW STW Date Price

Shipping American Commercial (ACLI) 12.500% Sr Sec Nts 07/15/17 $200 B2 / B+ 106.00 10.51% 941 bps 07/15/13 106.25

American Petroleum Tankers (AMPETR) 10.250% Sr Sec Nts 05/01/15 $258 B1 / B+ 98.00 10.94% 985 bps 05/01/12 105.13

Berlian Laju Tanker (BLTAIJ) 7.500% Sr Un Nts 05/15/14 $400 NR/ CCC- 36.00 58.58% 5810 bps 05/15/12 103.75

Overseas Shipholding (OSG) As of Amount Issue Next Call 8.750% Sr Un Nts 12/01/13 $73 B2 / B 10/14/11103.88 6.75% 648 bps nc nc Issuer Coupon Issue Maturity Out Rating Price YTW STW Date Price 8.125% Sr Un Nts 03/30/18 $300 B2 / B 73.00 14.75% 1254 bps nc nc Shipping 7.500% Sr Un Nts 02/15/24 $146 B2 / B 57.00 15.38% 1316 bps nc nc RoyalAmerican Caribbean Commercial (RCL) (ACLI) 12.500%7.000% SrSr SecUn NtsNts 06/15/1307/15/17 $550$200 Ba2B2 / BBB+ 103.50106.00 10.51%4.77% 451941 bps 07/15/13nc 106.25nc 6.875% Sr Un Nts 12/01/13 $350 Ba2 / BB 103.00 5.35% 509 bps nc nc American Petroleum Tankers (AMPETR) 5.625% Sr Un Nts 01/27/14 $1,000 Ba2 / BB 92.75 9.28% 861 bps nc nc 11.875%10.250% SrSr SecUn NtsNts 07/15/1505/01/15 $300$258 Ba2B1 / BBB+ 115.2598.00 10.94%7.15% 605985 bps 05/01/12nc 105.13nc 7.250% Sr Un Nts 06/15/16 $350 Ba2 / BB 103.50 6.37% 527 bps nc nc Berlian Laju Tanker (BLTAIJ) 7.250% Sr Un Nts 03/15/18 $150 Ba2 / BB 100.00 7.25% 503 bps nc nc 7.500% Sr Un Nts 10/15/2705/15/14 $300$400 Ba2NR/ / BBCCC- 94.2536.00 58.58%8.15% 5810496 bps bps 05/15/12nc 103.75nc Ship Finance (SHIPFI) CMA CGM (CMACG) 8.500% Sr Un Nts 12/15/13 $296 B1 / B+ 94.90 11.22% 1095 bps 11/14/11 101.42 6.970%8.500% Sr Un Nts 04/07/1404/15/17 $500$475 B3NR/ / NRB- 40.00NA 32.72%NA 3162NA bps 10/07/1304/15/14 100.50104.25 3.750%8.875% Sr Un Nts 02/10/1604/15/19 $125$325 B3NR/ / NRB- 74.3342.79 11.78%27.09% 10362781 bps 04/15/15nc 104.44nc StenaGeneral AB Maritime (STENA) (GMR) 12.000%7.000% Sr Un Nts 12/01/1611/15/17 $129$300 Ba3Ca / BB+CCC- 99.1023.33 59.73%7.21% 5864611 bps bps 11/14/1111/15/13 102.33106.00 Golden State Petro (GOLDEN) 6.125% Sr Un Nts 02/01/17 $300 Ba3 / BB+ 86.58 9.40% 818 bps nc nc 5.875%8.040% SrSr SecUn NtsNts 02/01/19 $102$100 Ba3B2 / BB+ 74.8197.00 10.98%8.60% 985775 bps nc nc Great Lakes Dredge & Dock (GLDD) 7.875% Sr Un Nts 03/15/20 $200 Ba3 / BB+ 83.81 10.86% 919 bps nc nc 7.375% Sr Un Nts 02/01/19 $250 B3 / B 104.88 6.27% 518 bps 02/01/15 103.69 Teekay Corp (TK) DryShips (DRYS) 8.500% Sr Un Nts 01/15/20 $450 B2 / BB /*- 93.00 9.75% 753 bps nc nc 5.000% Conv Nts 12/01/14 $700 NR/ NR 67.13 19.57% 1909 bps nc nc Trailer Bridge (TRBR) Excel Maritime (EXM) 9.250% Sr Sec Nts 11/15/11 $83 Caa2 / CCC /*- 89.16 171.12% 24801 bps 11/14/11 100.00 United Maritime (UNMTGR) 1.875% Conv Nts 10/15/27 $150 NR/ NR 57.19 22.23% 2175 bps 10/22/14 100.00 Horizon Lines (HRZ) 11.750% Sr Sec Nts 06/15/15 $184 B3 / B 98.00 12.43% 1134 bps 12/15/12 105.88 Windsor Petroleum (WINPET) 6.000% Conv Nts 04/15/17 $179 NR/ NR NA NA NA nc nc Marquette Transportation (MARTRA) 7.840% Sr Sec Nts 01/15/21 $224 Caa1 / BB- NA NA NA nc nc 10.875% Sr Sec Nts 01/15/17 $250 B3 / B- 95.50 12.05% 1036 bps 01/15/13 108.16

Navios MaritimeSupply Vessels Acquisition (NNA) Gulfmark Offshore (GMRK) 8.625% Sr Sec Nts 11/01/17 $505 B2 / B 75.25 15.00% 1390 bps 11/01/13 104.31 Navios Maritime (NM) 7.750% Sr Un Nts 07/15/14 $160 B1 / BB- 98.25 8.47% 799 bps 11/14/11 101.29 Hornbeck Offshore Services (HOS) 8.875% Sr Sec Nts 11/01/17 $400 Ba3 / BB- 95.00 10.00% 890 bps 11/01/13 104.44 6.125%8.125% Sr Un Nts 12/01/1402/15/19 $300$350 Ba3B3 / B+ 98.0082.50 11.75%6.85% 636953 bps 11/14/1102/15/15 102.04104.06 8.000%9.250% Sr Un Nts 09/01/1704/15/19 $250$200 Ba3B3 / B+ 102.2599.00 8.21%8.72% 712763 bps 09/01/1304/15/14 104.00106.94 Overseas Shipholding (OSG) 1.625% Conv Nts 11/15/26 $250 NR/ B+ 94.50 4.43% 417 bps 11/15/13 100.00 Seacor Holdings (CKH) 8.750% Sr Un Nts 12/01/13 $73 B2 / B 103.88 6.75% 648 bps nc nc 5.875%8.125% Sr Un Nts 10/01/1203/30/18 $178$300 Ba1B2 / BB+B 101.2573.00 14.75%4.51% 1254425 bps bps nc nc 7.375%7.500% Sr Un Nts 10/01/1902/15/24 $234$146 Ba1B2 / BB+B 107.5057.00 15.38%6.17% 1316395 bps bps nc nc Royal Caribbean (RCL) Source: Knight, Company Fillings, Bloomberg 7.000% Sr Un Nts 06/15/13 $550 Ba2 / BB 103.50 4.77% 451 bps nc nc 6.875% Sr Un Nts 12/01/13 $350 Ba2 / BB 103.00 5.35% 509 bps nc nc 5.625% Sr Un Nts 01/27/14 $1,000 Ba2 / BB 92.75 9.28% 861 bps nc nc 11.875% Sr Un Nts 07/15/15 $300 Ba2 / BB 115.25 7.15% 605 bps nc nc 7.250% Sr Un Nts 06/15/16 $350 Ba2 / BB 103.50 6.37% 527 bps nc nc 7.250% Sr Un Nts 03/15/18 $150 Ba2 / BB 100.00 7.25% 503 bps nc nc 7.500% Sr Un Nts 10/15/27 $300 Ba2 / BB 94.25 8.15% 496 bps nc nc Ship Finance (SHIPFI) 8.500% Sr Un Nts 12/15/13 $296 B1 / B+ 94.90 11.22% 1095 bps 11/14/11 101.42 6.970% Sr Un Nts 04/07/14 $500 NR/ NR NA NA NA 10/07/13 100.50 3.750% Sr Un Nts 02/10/16 $125 NR/ NR 74.33 11.78% 1036 bps nc nc Stena AB (STENA) 7.000% Sr Un Nts 12/01/16 $129 Ba3 / BB+ 99.10 7.21% 611 bps 11/14/11 102.33 6.125% Sr Un Nts 02/01/17 $300 Ba3 / BB+ 86.58 9.40% 818 bps nc nc 5.875% Sr Un Nts 02/01/19 Page$102 26 Ba3 / BB+ 74.81 10.98% 985 bps nc nc 7.875% Sr Un Nts 03/15/20 $200 Ba3 / BB+ 83.81 10.86% 919 bps nc nc Teekay Corp (TK) 8.500% Sr Un Nts 01/15/20 $450 B2 / BB /*- 93.00 9.75% 753 bps nc nc Trailer Bridge (TRBR) 9.250% Sr Sec Nts 11/15/11 $83 Caa2 / CCC /*- 89.16 171.12% 24801 bps 11/14/11 100.00 United Maritime (UNMTGR) 11.750% Sr Sec Nts 06/15/15 $184 B3 / B 98.00 12.43% 1134 bps 12/15/12 105.88 Windsor Petroleum (WINPET) 7.840% Sr Sec Nts 01/15/21 $224 Caa1 / BB- NA NA NA nc nc

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© September 2010 Knight Capital Group, Inc. All rights reserved. Knight Equity Markets, L.P. and Knight Capital Markets LLC are o -exchange liquidity providers and members of FINRA and SIPC. To learn about Knight Capital Group, Inc. (NYSE Euronext: KCG) go to knight.com. Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS The Week In Review

ECONOMIC ENVIRONMENT Contributed by The Franco-Belgian lender Dexia disrupted last week the financial Golden Destiny S.A. markets with fears for a rapid contagion of eurozone debt crisis. The week opened with European leaders laying out plans to strengthen Golden Destiny S.A. region’s banks and upcoming news for Dexia’s nationalization. 57 Akti Miaouli, Piraeus, 18536, Greece Brussels will pay €4bn to take over Dexia Bank Belgium, which includes a large retail bank in a group that is otherwise focused on Phone: +30 210 4295000 lending to local governments, along with state guarantees worth Website: www.goldendestiny.gr €90bn ($120bn) to finance the rest of the group.

The week ended with one more downgrade in the eurozone with In Greece, following lengthy negotiations with international lenders S&P cutting Spain’s sovereign debt rating by one notch from the vital aid of the next installment of country’s EUR 110 billion douple A to douple A minus, holding a negative outlook on the bailout has been finally secured to be paid in early November. country due to slowing growth, high unemployment, high level of The European Commission, the European Central Bank and the debt and weakening financial system. S&P highlighted the financial International Monetary Fund completed their fifth review of Greece profile of the Spanish banking system expressing concerns for the and agreed on the economic and financial policies needed to bring future solidness of the country’s banking system as it foresees that the government’s economic program back on track. The officials Spain’s banks will continue to accumulate problematic assets into said that they believe Greece will be able to meet its 2011-2012 2012 with access to market funding being scarce and expensive. fiscal targets, but the recession will be deeper than was anticipated Observers have also noted that Spain is unlikely to meet its in June and a recovery is now expected only from 2013 onwards. budgetary targets for this year for cutting the deficit to GDP ratio In the meantime, a lot of discussion has been emerged on the hair from 11.1% last year to 9.2% this year and 4.4% next year amid the cut of Greek debt. In July, private holders of Greek bonds were slowing eurozone economic growth. asked to take an average haircut, or writedown, on their holdings of 21%, while now a group of countries led by German asks for a France and Germany, the two leading countries of the eurozone, bigger haircut of 50%-60%. However, this haircut seems unlikely have recognized that the sovereign debt crisis is spreading with with the European Central Bank saying that attempts to involve signs for further infection, while they appear determined to reach an private investor may put at risk the financial stability of the currency agreement by the end of October on a comprehensive package of area as a whole. measures to stabilize the eurozone, including the recapitalization of European banks. France is keen to use the euro zone’s 400 billion The ongoing economic turmoil has already damaged the growth rescue fund, the European Financial Stability Facility, to recapitalize of Chinese trade as Europe and U.S. are the most important its own banks, whereas Berlin insists that the Fund should be used trading partners of the country. China’s trade surplus narrowed for as last alternative. European Commission President Jose Manuel a second straight month in September to $14,5 billion with both Barosso, speaking before the European Parliament in Strasbourg, imports and exports being lower than expected. September’s trade said that banks would be required firstly to seek private sources of surplus was smaller than Augusts’ surplus of $17,8 billion and less capital with national governments providing support, if necessary, than half of the $31,5 billion recorded in July. Exports increased and if support is unavailable then recapitalization could be funded 17.1% overall in September from a year earlier, down from a by loans from the European Financial Stability Facility. The 24.5% increase in August, according to data released by Chinese International Monetary Fund (IMF) estimates that the European customs. The slowdown was stronger in Chinese trade with banks need 200 billion euros in additional funds to withstand the Europe, as exports showed only a 9.8% rise in September from the sovereign debt crisis and secure their cash liquidity. last year, compared with a 22.3% rise in August. Chinese imports Furthermore, in one more attempt to reinforce the banking system, also slowed down as they increased by 20.9% from a year earlier, global banking regulators will push banks to hold more liquid assets compared with a 30.2% rise in August. Overall, Chinese economy and restrain the industry’s reliance on short-term funding, despite is under the threat of eurozone contagion as there are signs for a complaints that the rule changes could damage the broader further significant slowdown in trade. According to National Bureau economy, according to the new chairman of the Basel Committee of Statistics, China’s economic growth, which has averaged around on Banking Supervision. In his first interview in the Financial Times, 10% for a decade, slowed to 9.6 % annually in the first half of 2011. he said that the Basel group plans to put uniform implementation of In the second quarter, its GDP rose 9.5 percent, a dip from the the Basel III reforms at the top of its agenda. That deal, which was 9.7 percent growth in the first quarter. The Chinese Academy of struck last year by the 27 member countries, will force banks to hold Social Sciences, a major government think tank, forecasts China’s more top quality capital against unexpected losses, but there are gross domestic product will grow 9.2% in 2012 on condition that the rising concerns that some countries will not stick to the agreement. domestic and international environments will not worsen. Leading European banks say they would rather sell assets than raise expensive new capital to meet compulsory demands from SHIPPING MARKET the European Union for higher capital ratios, threatening a further contraction of credit in the eurozone economy. On ongoing fears for a significant slowdown in the worldwide trade from the economic recession, HSBC said in its latest quarterly Trade Connections Report that Asia’s trade will almost double

Page 28 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS The Week In Review by 2025 as a key driver of the world trade growth despite current level of 1,043 points on February 4th. The highest rate increase economic headwinds. Asia’s trade volume will grow 96% to nearly has been in the capesize segment, BCI up 11.4% w-o-w, BPI up $14 trillion by 2025, recording annual year-on-year growth of 4.8% 8.9% w-o-w, BSI up 3.9% w-o-w, BHSI up 6.2% w-o-w. versus an estimated of 3.8% for global trade. By 2025, world trade is expected to increase 73% from the current level, driven mainly Capesizes are currently earning $31,329/day, an increase of $3,453/ by India, Vietnam, Indonesia and China. However, the report noted day from a week ago, while panamaxes are earning $16,702/day, a dip in confidence among Asian importers and exporters about the an increase of $1,376/day. At similar week in 2010, capesizes were trade outlook for the next 6 months, with 41% expecting the global earning $45,279/day, while panamaxes were earning $18,143/day. economy to decline. Supramaxes are trading at 47% lower levels than capesizes by earning $16,671/day, up by $643/day from last week’s closing, but In the dry market, the positive sentiment persists with significant are 0.1% lower than panamax earnings. At similar week in 2010, gains in the panamax and capesize segment as charter rates are supramaxes were getting $19,425/day, hovering at discounted hovering at the highest levels from the start up of the year, while levels from capesize earnings and 7% above panamax earnings. the BDI keeps its constant rally standing above 2,000 points level. Handysizes are trading at $ 11,911/day; up by $641/day from last Capesize and panamax earnings are up by ..% and % respectively week, when at similar week in 2010 were earning $14,533/day. from the lowest level of this year, when capesizes were earning $4,567/day on February 28th and panamaxes $10,372/day on In the wet market, crude freight outlook is still dark from the February 2nd. Global grain and coal demand remains strong oversupply of vessels and the slowing growth of oil demand with favoring smaller vessel sizes, supramaxes and handysizes, average earnings for very large crude carriers on the benchmark whereas there are still expectations for further surge in Chinese Middle East Gulf to Japan route being at record lows. The thermal coal demand. The recent upturn of the market from the prospects for the crude market remain bleak for the rest of the year end of July seems to stabilize with the global demand for dry with limited hopes for a recovery in 2012, while the slide in VLCC commodities showing signs of firm demand. However, the dry bulk values continues and owners seem to be in middle of the decision shipping market is still being hunted by oversupply and there is of either sending their overaged VLCC units to the scrap yards or some market disbelief for a rebalance earlier than the end of 2012 starting the laying up or applying the slow steaming policy to ease / early 2013. the oversupply pressure. The risk of bankruptcy of tanker operators is very high with almost two thirds of the industry believing that 15% The capesize segment is being supported from strong congestion of tanker companies will not survive from the downturn, according at major Australian and Brazilian ports, around 90 vessels are to the Lloyd’s List Tanker Prospectives Survey. calculated to be anchored, whereas panamax earnings from strong Chinese thermal coal fixtures due to extremely low coal port The International Energy Agency in its monthly oil Market Report stockpiles at Qinhuangdao from the recent maintenance in China’s cut its forecast for global oil demand for a second month as the coal dedicated Daqin Railway. Chinese iron ore port stockpiles economic recovery loses momentum. The Paris-based organization have declined from the previous week, but are still high. According reduced its estimates for world demand for next year by 210,000 to Commodore Research, approximately 92.4 million tons of iron barrels a day, to 90.5 million a day, which means that consumption ore are currently stockpiled at Chinese ports, 700,000 tons less will increase by 1.3 million barrels a day, or 1.4 percent, from this than a week ago. The amount of iron ore stockpiles threatens year. The IEA said that “there is still robust growth but it’s being the recovery of the capesize segment with worries for one more affected by this economic slowdown. Global oil demand has grown slowdown in the fourth quarter of the year. at a moderate, but stable pace in recent months. The picture could deteriorate, however, with a downward spiral in economic Strong iron ore and coal imports from China are the one of the main prospects”. This year world oil demand will increase by 1 million beneficiary factors for the recent buoyed dry sentiment. According barrels a day, or 1.1 percent, to 89.2 million a day, following a to data from China’s customs authority, China imported 60,57 downward revision of 50,000 barrels, according to the agency. million tonnes of iron ore in September, the highest monthly volume since January, up 2.5% from August. Over the first three quarters The downward revision of global oil demand distress further the of the year, Chinese iron ore imports sum up to 508 million tonnes, financial status of tanker operators, who are already facing serious 11% more compared with the same period last year. Despite the glut of ships that drives them in a constant slide down of freight increase, Chinese traders remain pessimistic about their prospects rates, below vessel’s operating expenses. The dreadful economic in the coming months due to economic uncertainties and tight conditions in U.S. and Europe narrows the opportunities for a fast domestic credit. In terms of coal imports, China’s imports for the recovery of oil demand that could match the available list of tankers first nine months of the year reached 120 million tonnes, up 1.9% seeking a profitable charter deal. Additionally, the crude demand from last year, whereas imports on September are estimated to be has also slowed in China and India with signs of growth in Japan at 15,6 million tonnes, down by 5.97% from 16,59 million tonnes due to need for oil-fired power from the earthquake crisis. As per recorded in August and much lower than traders’ expectations of data from the International Energy Agency, China’s oil demand some 20 million tonnes. grew 5.8% month-on-month in August, down by 6.6% from July’s demand, while Indian oil demand rose by 2.7% in August, which is The index closed today at 2,173 points, up by 8.6% from last slightly slower than the 2.9% increase in July. In contrast, Japan’s week’s closing and down by 21.3% from a similar week closing in oil demand rose 4% year-on-year in August, underpinned by power 2010 when it was 2,762 points. The index has reached once more generation. its highest level of this year standing 108.3% up from the lowest

Page 29 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS The Week In Review According to the chief executive officer of the largest U.S. outstanding new vessel commitments. Yasumi Kudo, president of listed tanker owner, Teekay Group, tanker market is bottoming NYK, has stated that the company shall not endeavor to compete and demand for oil tankers will match supply by the Northern with other shipping companies on the basis of the containership Hemisphere’s next winter, lifting charter rates for the vessels. He fleet size, but will try to stay ahead by focusing on cargo collection added that the smaller-sized oil tankers, which dominate Teekay’s capacity and volumes. fleet, will recover before larger carriers. The combination oftoo many ships and the slow pace of oil demand growth could lead to APM-Maersk is said to have the largest capex commitment, about 6% of laid up fleet in a year, according to a Bloomberg survey estimated at $6,5 billion due to its 20 Triple-E class 18,000 TEU of eight brokers and analysts. orders, at a total cost of $3,8 billion in total, $190mil each unit, with option for ten additional units. It is worth clarifying that last week’s In the gas market, the massive earthquake and tsunami in Japan rumors for CMA-CGM being in talks with Chinese yards to build up continues to build LNG imports to replace nuclear power loss with to 20 boxship units of 9,000-10,000 TEUs, have been denied by the forecasts that Japanese utilities will need to charter in as many company reassuring that it no short-term plans for new purchases as 15 extra LNG carriers in the coming couple of years. Chubu or charter-ins, and is focused on reducing its debt load over the Electric Power, Japan’s third biggest power firm is said to be in near-term as the freight rate environment remains weak discussions with suppliers to secure an additional 800,000 tonnes of LNG in the six months to March 2012. The company is planning In the shipping finance, ABN AMRO is looking to expand its business to use a total of 13million tones of LNG in 2011/2012, up from a pre- by picking up shipping loan portfolios or rival banks. A senior ABN earthquake estimate of 8,4 million tones. The prospects for a stable AMRO official, Joep Gorgels, head transportation West-Europe, strong Japan LNG demand are high since the country’s nuclear said in Reuters: “We have a clear strategy that we want to grow in power outlook remains unclear with just 10 of Japan’s 54 reactors this market, we are thinking anti-cyclical here”. “We are looking at operating. The full restart of Japan’s nuclear power utilities is highly buying loan portfolios in shipping and offshore,” he added on the dependent on the radiation risks due to the controversy that was sidelines of a Capital Link shipping conference in London. Gorgels created from the burst of nuclear power crisis. said lending conditions to the ship industry remained tough. “At the moment we are at the lowest point of ship finance available A strategic partnership came to light this week in the LNG segment. in general to the shipping industry,” he said. “The typical shipping Teekay’s LNG subsidiary, Teekay LNG, has announced its joint banks are deleveraging, are recapitalizing.” venture with Japanese trading house Marubeni to acquire eight owned and partially owned LNG carriers from Maersk. Teekay European bank lending has dwindled with DNB NOR Bank ASA and Marubeni JV acquired a 100% interest in six modern LNG expressing its pessimism for any prompt rebound on the ongoing carriers and a 26% interest in two additional LNG carriers for a eurozone debt crisis. Kjartan Bru, senior vice president of shipping, total consideration of $1.4 billion, the transaction is expected to offshore and logistics at Oslo-based DnB NOR, said by telephone close in early 2012. Five of the carriers currently operate on long- interview in Bloomberg that ship-finance deals fell to “slightly term contracts (17-year average duration) and three of them are on over” 20 in the third quarter from almost 60 in the second quarter, short-term contracts. while rising costs for European lenders to borrow dollars and an interbank market that’s “not functioning,” are curbing the region’s In the container market, rates are unchanged from last week due banks’ ability to fund ship owners. “ to Chinese holidays with the Shanghai Container Freight index standing at 973 points and the momentum being negative from Under the tough lending conditions, Star Bulk Carriers Corp., previous weeks’ falling freight rates. The weak freight environment announced this week that it has entered into a new $64.5 million exposes major container operators at a high risk due to their massive secured term loan agreement with HSH Nordbank, which has up to a expensive newbuilding programs for new vessel deliveries in the five year term with interest at LIBOR plus a margin. The borrowings next two years. According to Alphaliner estimates, owners have under this new loan agreement together with $5.3 million in cash added $27 billion of new containership orders (for 2,4 Mteu) to the were used to repay in full the Company’s two existing loan facilities remaining pipeline of $30 billion (for 2,1 Mteu) that was committed with Piraeus Bank as agent and lender, respectively. Furthermore, prior the collapse of Lehman Brothers on September 2008. The new Hanjin Shipping of South Korea has sealed $80.5m of shipbuilding vessel capital expenditures commitments of nineteen of the largest financing for its new ordered capesize bulkers for delivery at the carriers amount to over $33 billion. Among the top-20 carriers, end of 2012 in a syndicate loan Korea Finance Corporation and only two Japanese shipping lines, MOL and NYK, do not have any DVB Bank.

Page 30 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Dry Bulk Market - Weekly Highlights The Dry Bulk market remains on a positive trend having reached now levels very close to those seen one year ago. Demand has Contributed by remained firm in all vessels sizes despite the general uncertainty in Intermodal the dry commodities market. The week had a slow start, but from Wednesday onwards we witnessed an explosion in fresh inquiries Intermodal Shipbrokers Co. pushing the market further up. Capes witnessed similar inquiries to 17th km Ethniki Odos Athens-Lamia & 3 Agrambelis Street, those seen a week prior, but as tonnage lists are still holding fairly 145 64 N. Kifisia, tight, rates were once again on an upward climb. Panamaxes on the Athens - Greece other hand may have not witnessed such a firm rise in freight levels as the Capes, however there was a significant rise in inquiries in Phone: +30 210 6293300 the market along with a drastic tightening of tonnage lists which Website: www.intermodal.gr should provide prime conditions for a notable rise in freight levels next week. Supras are still holding positive, though trailing behind the rest of the size segments due to their already relatively firmer freight levels. Handies recorded a considerable improvement this week, though their market performance is still comparably poorer than the larger bulker sizes.

Baltic Indices / Dry Bulk Spot Rates 2011 2010 Week 41 14/10/2011 Week 40 07/10/2011 Point ±% Diff Avg Index Avg Index Index $/day Index $/day BDI 2,173 2,000 8.7% 173 1,458 2,758 BCI 3,587 $31,329 3,218 $27,876 11.5% 369 1,965 3,480 BPI 2,084 $16,702 1,913 $15,326 8.9% 171 1,730 3,115 BSI 1,594 $16,671 1,533 $16,028 4.0% 61 1,377 2,148 BHSI 822 - 774 $11,270 6.2% 48 727 1,124

With regard to demand, we have seen a recent rise in activity p The Baltic Dry Index closed on Friday the 14th of October at as many traders seem to be pilling stocks while trying to take 2,173 points with a weekly gain of 173 points or 8.7% over previous advantage of the lower commodity prices witnessed lately. Most week’s closing. (Last Friday’s the 7th of October closing value was notable is the more than 10% decrease in iron ore export prices 2,000 from India for China which has been one of the main drivers for recorded at points). activity in the pacific for Panamaxes and Supras. Despite this drop in prices however, many analysts believe that we could see Capesize another price rise trend within the new year as shortages in supply 6,000 35 will inevitably lead producers to up their prices once more. This all 30 will inevitably depend on how the current problems in Europe and 5,000 the US pan out over the next couple of months, as they have been 25 no. Fixtures the main source of uncertainty and poor psychology in the global 4,000 markets. 20 Index 3,000 15 Baltic Dry 10 4,500 180 2,000 4,000 160 5 140 1,000 3,500 no. Fixtures 0 3,000 120 100 2,500 Index 80 2,000 60 1,500 40 1,000 20 CAPESIZE MARKET - p The Baltic Cape Index closed on 500 0 Friday the 14th of October at 3,587 points with a weekly gain of 369 points. For this week we monitor a 11.5% change on a week- on-week comparison, as Last Friday’s the 7th of October closing value was 3,218 points). It is worth noting that the annual average of 2011 for the Cape Index is currently calculated at 1,965 points, while the average for the year 2010 was 3,480 points.

Page 31 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Dry Bulk Market - Weekly Highlights

No. of Highest Lowest No. of Highest Lowest Week Week Fixtures Fixture Fixture Fixtures Fixture Fixture this week 4 $36,000 $4,650 this week 71 $27,250 $6,650

last week 4 $52,000 $22,000 last week 55 $32,000 $7,500

Week Period Charter Trip Charter Week Period Charter Trip Charter this week $0 $23,788 this week $16,476 $17,807 last week $0 $31,250 last week $14,295 $17,618 For Week 41 we have recorded a total of 71 timecharter fixtures in the Panamax sector, 19 for period charter averaging $16,476 For Week 41 we have recorded a total of 4 timecharter fixtures per day, while 52 trip charters were reported this week with a daily in the Capesize sector, 0 for period charter averaging $0 per day, average of $17,807 per day. while 4 trip charters were reported this week with a daily average of $23,788 per day. The daily earnings differential for the Panamaxes, that we calculate from all this week’s reported fixtures, i.e. the difference between This week’s fixture that received the lowest daily hire was the M/V the lowest and highest reported fixture for this week was reduced, ‘’CSK RADIANCE’’, 169606 dwt, built 2001, dely Busan 14/16 and this week’s fixture that received the lowest daily hire was the Oct , redely UKC, $4650, BHP Billiton, for a trip via Hay Point M/V ‘’PANAMAX SUN’’, 64170 dwt, built 1982, dely Zhoushan spot -17350$ reduced from last week, and the fixture with the highest , redely China, $6650, Winning, for a trip via Indonesia -850$ daily hire was the M/V ‘’CAPE UNITY’’, 180181 dwt, built 2007, reduced from last week, and the fixture with the highest daily hire dely Rotterdam 20/22 Oct , redely Skaw-Cape Passero, $36000, was the M/V ‘’YASA H.MEHMET’’, 83482 dwt, built 2011, dely US J.Aron, for a trip via Bolivar -16000$ reduced from last week. Gulf 25/30 Oct , redely Singapore-Japan, $27250, Noble, for a trip, Cargill relet, 725000 bb -4750$ reduced from last week. The BCI is showing a 11.5% rise on a weekly comparison, a 7.3% rise on a 1 month basis, a 88.8% rise on a 3 month basis, a 122.5% The BPI is showing a 8.9% rise on a weekly comparison, a 20.1% rise on a 6 month basis and a -17.4% fall on a 12 month basis. rise on a 1 month basis, a 34.0% rise on a 3 month basis, a 22.9% rise on a 6 month basis and a -7.5% fall on a 12 month basis. Panamax 5,000 100 Supramax 90 3,500 60 80 4,000 no. Fixtures 3,000 70 50 no Fixtures no 60 2,500 40 3,000 50 Index 40 2,000 30 Index 2,000 30 20 1,500 20 10 1,000 1,000 0 10 500 0

PANAMAX MARKET - p The Baltic Panamax Index closed on Friday the 14th of October with a gain at 2,084 points having gained 171 points on a weekly comparison. It is worth noting that SUPRAMAX & HANDYMAX MARKET - p The Baltic last Friday’s the 7th of October saw the Panamax index close at Supramax Index closed on Friday the 14th of October at 1,594 1,913 points. The week-on-week change for the Panamax index points up with a weekly gain of 61 points or 4.0% . The Baltic is calculated to be 8.9%, while the yearly average for the Baltic Supramax index on a weekly comparison is with an upward trend Panamax Index for this running year is calculated at 1,730 points as last Friday’s the 7th of October closing value was 1,533 points. while the average for 2010 was 3,115 points. The annual average of the BSI is recorded at 1,377 points while the average for 2010 was 2,148 points.

Page 32 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Dry Bulk Market - Weekly Highlights No. of Highest Lowest HANDYSIZE MARKET - p The Baltic Handysize Index closed Week Fixtures Fixture Fixture on Friday the 14th of October with an upward trend at 822 points this week 19 $35,000 $6,500 with a weekly gain of 48 points and a percentage change of 6.2%. It is noted that last Friday’s the 7th of October closing value was 774 last week 26 $35,500 $12,000 points and the average for 2011 is calculated at 727 points while the average for 2010 was 1,124 points. Week Period Charter Trip Charter No. of Highest Lowest this week $14,650 $19,655 Week Fixtures Fixture Fixture last week $17,125 $21,892 this week 8 $17,500 $6,000 last week 4 $17,000 $12,000 For Week 41 we have recorded a total of 19 timecharter fixtures in the Supramax & Handymax sector, 5 for period charter averaging $14,650 per day, while 14 trip charters were reported this week with Week Period Charter Trip Charter a daily average of $19,655 per day. this week $0 $12,494 last week $17,000 $12,100 The minimum vs maximum daily rate differential as analyzed from For Week 41 we have recorded a total of 8 timecharter fixtures in our fixtures database was overall improved and from the reported the Handysize sector, 0 for period charter averaging $0 per day, fixtures we see that this week’s fixture that received the lowest while 8 trip charters were reported this week with a daily average daily hire was the M/V ‘’GO STAR’’, 43656 dwt, built 1994, dely of $12,494 per day. Qinhuangdao spot , redely USGulf, $6500, Daebo, for a trip, 6500 daily 1st 60 days 13000 daily balance -5500$ reduced from The minimum vs maximum daily rate differential as analyzed from last week, and the fixture with the highest daily hire was the M/V our fixtures database was overall improved and this week’s fixture ‘’HERMANN S’’, 56732 dwt, built 2009, dely EC Mexico 15/20 that received the lowest daily hire was the M/V ‘’NORD SINCERE’’, October , redely Singapore-Japan intention pet coke approx, 28355 dwt, built 2010, dely Krishnapatnam 13/14 Oct, redely $35000, Pacbasin, for a trip -500$ reduced from last week. Singapore-Japan, $6000, Ark Shipping, for a trip -6000$ reduced from last week and the fixture with the highest daily hire was the The BSI is showing a 4.0% rise on a weekly comparison, a 11.8% M/V ‘’WEST GATE’’, 28200 dwt, built 2011, dely Ronnskar 17/22 rise on a 1 month basis, a 25.5% rise on a 3 month basis, a 9.4% Oct, redely Egyptian Mediterranean, $17500, Imperial, for a trip via rise on a 6 month basis and a -14.2% fall on a 12 month basis. Sweden 500$ improved from last week. The BHI is showing a 6.2% change on a weekly comparison, a Handysize 19.1% rise on a 1 month basis, a 18.6% rise on a 3 month basis, 1,750 20 a 4.6% rise on a 6 month basis and a -17.3% fall on a 12 month 18 basis. 1,500 16 no. Fixtures 14 1,250 12 All Baltic Dry Indices, 1 day, 1week , 1 month, 3 months, 6 months and 10 12 months % changes based on last Friday’s closing figures. Index 1,000 8 INDEX 1 DAY 1 1 3 6 1 YEAR 6 WEEK MONTH MONTHS MONTHS 750 4 BDI 0.8% 8.7% 12.8% 62.2% 57.9% -21.3% 2 BCI 1.2% 11.5% 7.3% 88.8% 122.5% -17.4% 500 0 BPI 1.1% 8.9% 20.1% 34.0% 22.9% -7.5% BSI 0.7% 4.0% 11.8% 25.5% 9.4% -14.2% BHI 0.5% 6.2% 19.1% 18.6% 4.6% -17.3%

Page 33 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Tanker Market - Weekly Highlights On Bears and Balls Contributed by Some thoughts by Johnny M. Kulukundis Charles R. Weber Company, Inc. A few years ago, at the height of the heady dry cargo boom and with a decline in the tanker market only an imperceptible glimmer on the Charles R. Weber Company, Inc. Greenwich Office Park One, horizon of a newbuilding delivery graph, I had the pleasure of playing Greenwich CT 06831 golf with my father. It was the Connecticut Maritime Association’s Spring Golf Outing, a boisterous and very oversubscribed affair, with Phone: 203 629-2300 over seventy shipping foursomes. Cart loads of euphoric, very well Website: www.crweber.com paid and quite self satisfied shipping professionals tearing around the Connecticut course, sporting shirts and caps emblazoned with given greater voice to the freight bears, citing a return to lackluster the logos of their various brokerage firms, operating companies, rates after the momentary rate bonanza of the “Bosporus Bump”. ownership operations or chartering organizations. I had the opportunity to discuss the present state of the shipping As we played the course and dodged incoming balls from all market with my father the other day, exchanging news and views on angles and various other tee boxes, we found abandoned golf balls the various over supplied sectors, fortunes of those players within everywhere. Left behind by the successful shipping foursomes them and the overall state of the global economy. While discussing ahead of us, brand new Titleists featuring shiny maritime logos, one or other of these issues, my father’s response was always the balls that in that heady freight market did not need to be retrieved. same, “Well it’s not like we haven’t seen all this before.” To which No need to go look for an errant ball, simply drop another and I had to respond that actually a lot of young people in shipping play that, much like high paying time charters, there was plenty WEEK 41 – 14 OCTOBER 2011 more where that came from. To my father, a man with over fifty years of shipping experience who had seen as he puts it “markets Spot Rates Trade Cargo WS TCE always go higher than you expect and always, without fail, go VLCC $/day lower” this decadent disregard for golf balls was incomprehensible. TD1 AG>USG 280,000 MT 32.5 -$6,755 So he simply picked up the abandoned balls and dropped them TD2 AG>SPORE 260,000 MT 45.0 $5,412 into his golf bag (for the proverbial rainy day). He collected over forty of them by the end of our round, a veritable who’s who of TD3 AG>JPN 260,000 MT 45.0 $6,037 brokers, owners, operators and charterer’s balls. Over dinner he TD4 WAFR>USG 260,000 MT 55.0 $15,388 commented that he couldn’t believe all the golf balls that were TD15 WAFR>CHINA 260,000 MT 60.0 $21,028 simply left on the course. I countered him with some stratospheric prevailing time charter earnings for both wet and dry tonnage, but SUEZMAX he didn’t seem to consider this acceptable reasoning for wanton TD5 WAFR>USAC 130,000 MT 100.0 $27,068 golf ball abandonment. With hindsight, of course he was right. TD6 B.SEA>MED 135,000 MT 140.0 $66,865 AFRAMAX As of today the freight bears are back at the Bosporus. The delays TD7 N.SEA>UKC 80,000 MT 120.0 $28,010 to vessels transiting the Bosporus and Dardanelle Straits which boosted rates for Aframax and by extension Suezmax tonnage TD9 CBS>USG 70,000 MT 110.0 $8,122 have dropped by a couple of days. This reduction in delays is TD19 MED>MED 80,000 MT 180.0 $53,277 due to modifications made by Turkey’s Undersecretariat for PANAMAX Maritime Affairs, to the traffic restrictions instituted by Turkey’s Undersecretariat for Maritime Affairs in late September. These TD10 CBS>USAC 50,000 MT 120.0 $6,167 new modifications now allow vessels over 200 meters carrying TD12 CONT>TA 55,000 MT 125.0 $9,436 flammable gases, flammable liquids and oxidizing substances CPP to transit during the night. Daylight passage restrictions will be TC2 MR CONT>TA 37,000 MT 145.0 $6,003 now only be enforced for large vessels carrying explosives and radioactive substances, freeing space during daylight for crude TC3 MR CBS>USAC 38,000 MT 155.0 $9,163 carriers to transit. TC4 MR SPOR>JPN 30,000 MT 151.0 $3,368 TC1 LR2 AG>JPN 75,000 MT 120.0 $17,347 Before the unmodified new regulations were enforced, tanker delays TC5 LR1 AG>JPN 55,000 MT 120.0 $8,262 ran about a day each way, as the market and the “Undersecretariat” quickly realised, after the new regulations took effect, delays shot Time Charter Rates 1 Year 3 Years 5 Years up to around seven days each way. Now down to around five, it is $/day (theoretical) expected that as the backlog of vessels clears, this number will fall VLCC $19,500 $28,500 $33,250 to one to two days. Turkey has additionally amended the interval Suezmax $18,000 $22,000 $23,250 time between the transit of tankers through the straits. Two tankers Aframax $15,150 $17,500 $19,500 of over 200 meters must start 75 rather than 90 minutes apart and vessels under 200 meters must now have a 60 minute head start Panamax $14,500 $16,500 $18,250 between them. All of this is expected to get the straits running as MR $13,900 $14,650 $16,150 efficiently as they had before, while increasing safety. It has also THE TANKER MARKETS Page 34 VLCC

As the Chinese holidays ended the Middle East picked up, with 26 fixtures reported. In addition to the added volume, we saw higher than usual cargo inquiry; at the beginning of the week there were upwards of ten outstanding cargoes in the AG. The growing inquiry coupled with increasing bunker prices added to the fervor of the market, placing upward pressure on rates as Owners looked to push TCE’s up above operating costs, not seen since the middle of July. This pressure however did not lead to a rate increase, instead charterers went quiet; moving the market to a standoff.

A few days of inactivity and the realization that the fundamentals (more than ample supply) took the wind out of the markets sails with rates settling slightly higher than at the weeks start, but with TCE’s basically unmoved. We remain in a standoff, but the trend is much softer than even a day or two ago.

Overall It was a busier period with 33 total fixtures reported, 7 of those from the Atlantic Basin. The Middle East was led by eastbound business where China discharge led the way accounting for 44% of the week’s Eastern business. Despite Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Tanker Market - Weekly Highlights have not seen all this before, to a ten year shipping veteran it’s rates from West Africa softened to ws45 level. The one market that unfathomable. In a staunchly anti-Santayana industry that firmly is holding steady is the Caribbean / East business where ballasters believes that the whole “learning from history… doomed to repeat it” are not in play and USG positions remain rather thin. thing always applies to someone else, the present global shipping predicament we are in is an anathema to them. Suezmax The beginning of the week in the Atlantic basin Suezmax sector If I took anything away from that CMA game of golf back in the not saw owners continue to hold onto the stout gains made in the so distant, heady days of the shipping boom, it would be this. If the previous decade, but by mid week, a decided lack of inquiry in all market is so fantastic that people are willing to leave brand new, regions had started to take some of the steam out of the engine. perfectly good golf balls all over the fairway, pick them up! Because unlike new ships today, you can never have too many new golf Continued interest in the VLCC sector (and the financial savings balls. realized by co-freighting) had stolen some of the limelight from the million barrel ships, and now the owners of this class must wait THE TANKER MARKETS until next week to see if November stems roll into play first thing Monday, or if the charterers continue to apply the silent press by VLCC holding back their requirements. As the Chinese holidays ended the Middle East picked up, with 26 fixtures reported. In addition to the added volume, we saw higher Needless to say, even if a correction occurs next week (and it than usual cargo inquiry; at the beginning of the week there were seems a fair bet that it will) the level to which rates drop will dictate upwards of ten outstanding cargoes in the AG. The growing inquiry if an end November push eclipses last weeks highs. Tonnage in coupled with increasing bunker prices added to the fervor of the the Suezmax class remains balanced in the Atlantic basin, and market, placing upward pressure on rates as Owners looked to more ample in the far-east. In response to this we believe rates will push TCE’s up above operating costs, not seen since the middle of fluctuate in the Atlantic, and remain flat in the Pacific. July. This pressure however did not lead to a rate increase, instead charterers went quiet; moving the market to a standoff. Aframax The slow climb up from the summer doldrums continued this week A few days of inactivity and the realization that the fundamentals as we saw the market close at WS 110, gaining another 10 percent. (more than ample supply) took the wind out of the markets sails To start off next week we can expect the usual early week stand with rates settling slightly higher than at the weeks start, but with off between owners and charterers, but there should be enough TCE’s basically unmoved. We remain in a standoff, but the trend is tonnage locally to keep rates in check and thus hold rates mostly much softer than even a day or two ago. flat.

Overall It was a busier period with 33 total fixtures reported, 7 of Despite reports that the Black Sea regulations will be enforced those from the Atlantic Basin. The Middle East was led by eastbound differently (and therefore not have the same impact as initially business where China discharge led the way accounting for 44% suspected), the cross Mediterranean market gained again this of the week’s Eastern business. Despite the changes in sentiment, week, hitting numbers not seen in over 7 months and closing at rates showed little movement throughout the week; starting off at WS 180’ish. ws40 and ending at a high for the week of ws43.25 paid for a voyage to Thailand. The volatility in the Atlantic Basin led to more interest As we kick off next week one can suspect that charterers will in westbound rates as Owners looked to the possibility of better continue to meet resistance and will have to work though the triangulation numbers, thus westbound rates softened slightly to decreasing backlog of ships/delays in order to settle the market. ws32.0, but increasing bunkers will make repeating that difficult. CPP As we look ahead to next week we do not expect much change The clean Caribbean market was active this week, however rates in the current trend as charters look to finish up their October remained steady for CBS/USAC-G at WS 38@155 levels, giving programs and slowly start in on next month’s stems. To date we owners a return of approximately $9,500 per day. have seen 102 fixtures reported for the month leaving another 13- 18 cargoes to go. We compare that to a position list with 35 units PMI was very active, fixing approximately seven vessels from the available over that same period meaning more of the same as U.S. Gulf which resulted in the market tightening and rates pushing rates continue to be more affected by bunker prices than anything up five points from 120 to 125 for USG / UKC-Med. With tight else. We expect eastbound rates to settle in the low ws40’s, while positions from the USG some charterers have reached out to the westbound business holds at the ws32-32.5 level. end of the month already. The sentiment is that next weeks market will be poised to move upwards, especially as the TC2 market is The Atlantic Basin was quieter with 7 fixtures reported; only one softening this will add to the upward pressure in USG / TA rates. destined for trans-Atlantic business where inquiry slowed with the settling of the Suezmax market. Following last week’s 30% increase The start of the week for TC2 was active, however there was in Trans-Atlantic rates into the ws60’s, the market settled back to enough tonnage to support demand and rates slipped from 37 at what is now arguably in the mid ws50’s. Eastbound rates were 152.2 down to a rumored 37 at 140 by weeks end. Owners feel that capped by ballasters from the Middle East as evidenced by 5 of the next weeks rates should stabilize as low TCE’s of around $4000 a 9 offers on an IOC quote coming from such vessels. Eastbound day should prove a barrier to further decline.

Page 35 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Weekly Tanker Market Opinion

Contributed by Bears in the China Shop www.poten.com OctoberPoten 14, 2011 & Partners, Inc. Recent figures indicating a cooling of Chinese growth have 805 Third Avenue generated fresh concern over the health of the global economy. New York, NY 10022 The tanker market in particular has been banking on a rally of non- Bears in the China Shop OECD petroleum demand, seeing projected increases in Chinese Phone: (212) 230-2000 Spot Check petroleum consumption as one of the few rays of light in this year’s Website: www.poten.com The dampened projection of Chinese growth masks the increases in VLCC spot market demand seen Recent darkfigures market. indicating However,a cooling of Chinese even ingrowth the have face generated of possible fresh moderation,concern over the health this year. It is expected that by the end of 2011, total reported VLCC spot fixture volumes will reach of the globalshifting economy. trade patterns The tanker and market expansion in particular of overall has been Chinese banking involvementon a rally of non -OECD levels 20% higher than seen two years prior, as shown in the chart below. petroleumin petroleum demand, seeing spot projected trade stillincreases leaves in Chinese potential petroleum for development consumption as of one ton of the few rays of milelight indemand this year’s in darkthe marketcoming. However, years. even in the face of possible moderation, shifting trade patterns and expansion of overall Chinese involvement in petroleum spot trade still leaves Reported VLCC Fixtures by Charterer - 2009 - 2011E potentialIn forits development latest Oil of Market ton mile demandReport, in thethe comingInternational years. Energy Agency 1,901 2,000 (IEA) estimated that Chinese petroleum demand will average 9.6 1,732 1,800 1,574 In its latest Oil Market Report, the International Energy Agency (IEA) estimated that Chinese mbd over 2011. This reflects a downward revision of 190 kbd since 1,600 petroleumthe demandbeginning will averageof the year,9.6 mbd and over annual 2011. Thisgrowth reflects at lessa downward than half revision of last of 190 kbd 1,400 since theyear’s beginning pace, of the as year, seen and in annual the chart growth below. at less than half of last year’s pace, as seen in the 1,200 1,333 1,263 chart below. 1,000 1,211

No. of of Fixtures No. 800

600 35 Chinese Oil Demand - Historical & Outlook 134 400 70 74 104 2009 - 2012 106 200 295 399 183 1,200 11 0 2009 2010 2011 E 1,000 Chinese Content: 23% 27% 30% 10 Unipec PetroChina Day Harvest Non-Chinese Charterers 800 Source: Poten 600 9 This growth has been driven largely by the activity of Chinese charterers, who are expected to accountThis for an growth impressive has 30% been of total drivenVLCC spot largely fixture volumes by the in 2011 activity. of Chinese

y-o-y Growthy-o-y (kbd) 400 8 charterers, who are expected to account for an impressive 30% of Chinese (mbd) Demand While China’s growing domestic demand for petroleum products can account for much of this new 200 total VLCC spot fixture volumes in 2011. activity, it is also attributable to increased involvement of Chinese entities in global petroleum trade. 0 7 According to spot fixture data, Chinese charterers have lifted over 50 VLCC fuel oil cargoes year to 2009 2010 2011 2012 date fromWhile the China’sCaribbean togrowing trading hubs domestic in Southeast demand Asia. These for long petroleum haul volumes productshave account ed for overcan 10 % account of total Chinese for much VLCC spot of fixture this activity new activity,reported since it is the also beginning attributable of 2011. While Total Chinese Demand y-o-y Growth futureto volumes increased on this specificinvolvement trade are oflikely Chinese to depend entitieson arbitrage in opportunitiesglobal petroleum resulting from Source: Poten, IEA (Sep-2011) relative trade. fuel oil According pricing, trend tos seenspot over fixture the past data, five yearsChinese underscore charterers the potential have for liftedincreased Additionally, customs data released on Thursday show that China’s September crude oil importsChineseover fell market 50 presence VLCC to fuel direct oil the cargoes evolution of year global totrade date patterns. from the Caribbean Additionally, customs data released on Thursday show that to trading hubs in Southeast Asia. These long haul volumes have 12% year-on-year, and have remained below 5 million barrels per day for four consecutiveThe month growths. in Chinese demand for ships in the Atlantic Basin has been particularly remarkable. It is accounted for over 10% of total Chinese VLCC spot fixture activity TroublesChina’s in the United September States and crude Europe oildo haveimports the potential fell 12% to negativelyyear-on-year, impact China’sandestimated rate of that total eastbound VLCC trade out of the Caribbean by Chinese charterers has grown growth,have as Chinese remained petroleum below demand 5 million is driven barrels largely perby manufacturing day for four and consecutive export activity.250% reportedEven over the past since five years the, as beginningseen in the graph of on 2011. the following While page. future volumes on so, themonths. IEA now estimates Troubles that in Chinese the United consumption States is andset to Europe contribute do to have more thethan halfthis of specific trade are likely to depend on arbitrage opportunities incrementalpotential worldwide to negatively petroleum demand impact in 2011,China’s and israte expected of growth, to increase as byChinese an additional resulting 480 from relative fuel oil pricing, trends seen over the past kbd duringpetroleum 2012. demand is driven largely by manufacturing and export five years underscore the potential for increased Chinese market activity. Even so, the IEA now estimates that Chinese consumption presence to direct the evolution of global trade patterns. is set to contribute to more than half of incremental worldwide Email: [email protected] NEW YORK LONDON PERTH ATHENS HOUSTON SINGAPORE GUANGZHOU petroleum demand in 2011, and is expected to increase by an The growth in Chinese demand for ships in the Atlantic Basin has additional 480 kbd during 2012. been particularly remarkable. It is estimated that total eastbound Email: [email protected] trade outNEW of the YORK Caribbean LONDON PERTHby Chinese ATHENS charterers HOUSTON SINGAPOREhas grown GUANGZHOU Spot Check 250% over the past five years, as seen in the graph on the following page. The dampened projection of Chinese growth masks the increases in VLCC spot market demand seen this year. It is expected that by the end of 2011, total reported VLCC spot fixture volumes will reach levels 20% higher than seen two years prior, as shown in the chart below.

Page 36 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Weekly Tanker Market Opinion

Changes in Sourcing from Chinese VLCC Charterers, 2006 vs. 2011 The expansion of these trade lanes, in part a consequence of increased sourcing of light sweet barrels from producers west of Suez, is expected to drive tanker ton mile demand in the years

UK Continent / to come, and has added significance to trades that were once Caribbean Mediterranean considered opportunistic backhaul movements. Worries that + 250 % 0 cooling Chinese demand will single handedly sabotage freight rate 25 recovery seem disproportionately pessimistic, at least as long as 14 Chinese charterers are willing to share their business with foreign 88 owners. Arabian Gulf + 113 % West Africa Legend + 81 % 191 Poten Tanker Market Opinions are published by the Marine Projects No. Fixtures 33 & Consulting department at Poten & Partners. For feedback on 2006 407 this opinion or to receive this via email every week please send 60 No. Fixtures an email to [email protected]. For information on the 2011E services and research products offered by our Marine Projects & Consulting department or to contact our tanker brokers please visit Source: Poten our website at www.poten.com.

The expansion of these trade lanes, in part a consequence of increased sourcing of light sweet barrels from producers west of Suez, is expected to drive tanker ton mile demand in the years to come, and has added significance to trades that were once considered opportunistic backhaul movements. Worries that cooling Chinese demand will single handedly sabotage freight rate recovery seem disproportionately pessimistic, at least as long as Chinese charterers are willing to share their business with foreign owners.

Poten Tanker Market Opinions are published by the Marine Projects & Consulting department at Poten & Partners. For

feedback on this opinion or to receive this via email every week please send an email to [email protected]. For information on the services and research products offered by our Marine Projects & Consulting department or to contact our tanker brokers please visit our website at www.poten.com.

Email: [email protected] NEW YORK LONDON PERTH ATHENS HOUSTON SINGAPORE GUANGZHOU

The leading specialist in international transport finance

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0611_DVB-Anz_half-page_quer.indd 1 07.06.11 13:25 Page 37 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Weekly Freight Rate & Asset Trends

Contributed by FREIGHT RATES WEEK41 - 2011 Intermodal Tanker Spot Rates Week 41 Week 40 2011 2010 Intermodal Shipbrokers Co. Vessel Routes WS WS ±% $/day $/day $/day $/day 17th km Ethniki Odos Athens-Lamia & 3 Agrambelis Street, points points 145 64 N. Kifisia, 265k AG-JAPAN 44 3,715 42 2,602 5% 17,322 41,620 Athens - Greece 280k AG-USG 32 -6,290 33 -2,736 -2% 2,754 20,959 VLCC 260k WAF-USG 60 27,967 63 34,675 -4% 24,782 45,311 Phone: +30 210 6293300 130k MED-MED 130 57,213 105 39,993 24% 23,873 36,316 Website: www.intermodal.gr 130k WAF-USAC 100 26,325 98 27,489 3% 12,722 26,222

Suezmax 130k AG-CHINA 75 10,250 75 12,200 0% 15,283 26,910

80k AG-EAST 100 7,725 98 8,079 3% 13,108 15,716 WEEK41 - 2011 80k MED-MED 180 48,558 160 41,425 13% 12,448 19,835 ASSET VALUES 80k UKC-UKC 120 30,393 108 22,547 12% 17,015 24,225 Aframax 70k CARIBS-USG 110 7,748 95 4,247 16% 8,016 17,047 75k AG-JAPAN 117 11,071 120 13,241 -3% 11,690 14,544 Secondhand Indicative Market Values ($ Million) - Tankers

55k AG-JAPAN 119 4,739 123 6,658 -3% 8,505 10,784 Vessel 5yrs old Oct-11 Sep-11 ±% 2011 2010 2009 155 7,889 150 8,035 3% 10,764 10,531 Clean 37K UKC-USAC VLCC 300KT DH 66.0 74.4 -11.3% 82.1 87.2 84.3 30K MED-MED 160 16,874 155 16,316 3% 17,529 19,933 Suezmax 150KT DH 47.0 49.6 -5.2% 56.4 62.6 59.2

55K UKC-USG 120 8,260 110 6,618 9% 11,240 16,419 Aframax 105KT DH 37.0 37.0 0.0% 39.9 44.7 43.2 55K MED-USG 120 6,310 110 5,253 9% 9,617 14,358 Panamax 70KT DH 34.0 34.6 -1.7% 35.9 38.8 37.5 Dirty 50k CARIBS-USAC 120 5,603 120 7,264 0% 10,930 14,117 MR 45KT DH 29.0 29.1 -0.2% 28.7 26.5 29.2

Tanker Time Charter Rates Secondhand Indicative Market Values ($ Million) - Bulk Carriers Week Week $/day ±% Diff 2011 2010 Oct-11 Sep-11 2011 2010 2009 41 40 Vessel 5yrs old ±% 300k 1yr TC 20,250 20,250 0.0% 0 26,701 38,288 Capesize 170k 39.5 39.0 1.3% 44.8 57.4 49.0 VLCC 300k 3yr TC 29,000 29,000 0.0% 0 32,938 38,671 Panamax 73K 27.0 27.2 -0.7% 32.4 39.0 30.3 150k 1yr TC 18,750 18,750 0.0% 0 20,482 28,712 Supramax 52k 24.0 24.0 0.0% 26.0 30.2 26.1 Suezmax 150k 3yr TC 22,000 22,000 0.0% 0 24,596 27,642 Handysize 29K 22.5 22.0 2.3% 23.7 26.2 21.1 105k 1yr TC 15,000 15,000 0.0% 0 16,128 19,014 Aframax 105k 3yr TC 18,250 18,250 0.0% 0 18,706 20,282 70k 1yr TC 14,500 14,750 -1.7% -250 15,378 16,865 Panamax New Building Indicative Market Prices (million$) 70k 3yr TC 15,750 16,000 -1.6% -250 16,688 17,700 Week Week Vessel ±% 2011 2010 2009 45k 1yr TC 14,250 14,250 0.0% 0 13,963 13,423 41 40

MR 45k 3yr TC 14,750 14,750 0.0% 0 14,822 14,388 Capesize 170k 49.5 50.0 -1.0% 52 58 67 Panamax 75k 28.5 29.0 -1.7% 32 35 36 36k 1yr TC 12,500 12,500 0.0% 0 12,530 11,808 Handysize Supramax 57k 27.0 28.0 -3.6% 30 31 34

13,500 13,750 -1.8% -250 13,468 12,008 Bulkers 36k 3yr TC Handysize 30k 22.5 22.8 -1.1% 24 25 27 VLCC 300k 99.5 99.5 0.0% 100 103 121

Suezmax 150k 61.5 61.5 0.0% 63 66 70 WEEK41 - 2011 Aframax 110k 52.5 52.5 0.0% 53 55 59

ankers 43.5 43.5 0.0% 43 46 52 T LR1 70k Dry Bulker Time Charter Rates MR 47k 35.0 35.0 0.0% 35 36 40 Week Week $/day ±% Diff 2011 2010 LPG M3 80k 72.5 72.5 0.0% 71 72 81 41 40 LPG M3 52k 62.5 62.5 0.0% 62 65 73

Gas 170K 6mnt TC 25,000 22,250 12% 2,750 16,413 36,483 LPG M3 23k 46.0 46.0 0.0% 45 46 49 170K 1yr TC 20,750 19,750 5% 1,000 16,198 33,167

Capesize 170K 3yr TC 17,500 17,000 3% 500 17,523 29,153

70K 6mnt TC 19,250 18,250 5% 1,000 17,197 28,879 www.intermodal.gr Intermodal Shipbrokers - Capital Link - Dry Bulk Market Report “Week 41” – 17 OCT 2011 70K 1yr TC 15,375 15,000 3% 375 15,287 24,759 6

Panamax 70K 3yr TC 14,375 14,125 2% 250 14,822 19,735

52K 6mnt TC 16,500 16,250 2% 250 15,916 24,569 52K 1yr TC 14,750 14,500 2% 250 14,630 21,047 14,250 14,000 2% 250 14,243 17,502 Supramax 52K 3yr TC

45k 6mnt TC 14,250 14,000 2% 250 13,779 21,372

ymax 45k 1yr TC 12,500 12,500 0% 0 12,840 18,530 12,500 12,250 2% 250 12,635 15,568

Hand 45k 3yr TC

30K 6mnt TC 11,750 11,750 0% 0 12,166 16,908 30K 1yr TC 12,000 12,000 0% 0 12,121 15,862 12,250 12,000 2% 250 12,179 14,143 Handysize 30K 3yr TC www.intermodal.gr Intermodal Shipbrokers - Capital Link - Dry Bulk Market Report “Week 41” – 17 OCT 2011 8

Page 38

www.intermodal.gr Intermodal Shipbrokers - Capital Link - Dry Bulk Market Report “Week 41” – 17 OCT 2011 7 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS B RAEMAR S EASCOPE C ONTAINERS Container Market - Weekly Highlights T HE M ONDAY M ORNING C ONTAINER B RIEFING

TH M ONDAY 17 O CTOBERContributed 2011 by

B RAEMAR S EASCOPE C ONTAINERS Braemar Seascope C h a r t e r i n g C HARTERING

T HE M ONDAY M ORNING C ONTAINER B RIEFING

35 Cosway Street ESSEL EU MG NDEX TH V (T /H ) I M+ /ONDAY- 17 OMeanwhileCTOBERLondon NW1 the 2011 5BT 1700teu sector, resilient for a number of weeks

510/285 TEU (GL) 15.5 K 4.11 ▼ 0.06 recently,United Kingdom is under further pressure as owners here also look to 700/440 TEU (GL) 17.5 K 5.00 ► 0.00 C HARTERINGcover their positions quickly with the little business available. TEU K 750/415 (G) 16 5.36 ▼ 0.16 Phone: +44 (0) 20 7535 2650 Contrasting fortunes were had for two Wenchong 1700 units this

1000/650 TEU (G) 17.5 K 6.10 ► 0.00 week,Website: with onewww.braemarseascope.com securing US$9,150 for 4-6 months period, albeit 1100/715VESSEL TEU (T (G)EU/H 19MG K) 7.50INDEX ▼ 0.11+ / - Meanwhile the 1700teu sector, resilient for a number of weeks with a ballast leg involved, while another sister had to dip below 1350/925510/285 TEUTEU (G)(GL) 20 15.5 K K 5.514.11 ▼ ▼0.09 0.06 recently, is under further pressure as owners here also look to the US$9,000 barrier to secure a shorter 20-30 day period, but 1600/1150700/440 TEU (GL) (GL) 18 17.5 K K 7.145.00 ▼ ►0.08 0.00 cover their positions quickly with the little business available. also with a ballast journey to deliver. Below this, while limited 1700/1125750/415 TEU TEU (G) (G) 19.5 16 KK 6.585.36 ▼ ▼0.08 0.16 ContrastingContrasting fortunes fortunes were were had had for two WenchongWenchong 1700 1700 units units this this TEU K in fixing activity this week, the rates being quoted in the 1000teu 1740/13001000/650 TEU (G)(G) 20.517.5 K 6.816.10 ▼ ►0. 190.00 week,week, with with one one securing securing US$9,150 US$9,150 forfor 44-6-6 months months period, period, albe albeitit 1100/715 TEU (G) 19 K 7.50 ▼ 0.11 sector are noticeably becoming more competitive as owners 2000/1600 TEU (G) 21 K 2.84 ▼ 0.05 withwith a ballast a ballast leg leg involved, involved, while while anotheranother sistersister had had to todip dip below below 2500/19001350/925 TEU TEU (G) (G) 22 20 K K 4.995.51 ▼ ▼0.05 0.09 jostle for any possibilities. the US$9,000the US$9,00 barrier0 barrier to secureto secure a shortera shorter 20-30 20-3 0day day period, period, but but also 2800/20001600/1150 TEU TEU (GL) (GL) 22 18K K 4.617.14 ▼ ▼0.12 0.08 withalso a ballast with a journeyballast journey to deliver. to deliver. Below Belthis,ow while this, whilelimited limited in fixing 3500/25001700/1125 TEU TEU (GL) (G) 23 19.5 K K 3.346.58 ▼ ▼0. 160.08 With the number of available vessels steadily building up and activityin fixing this week,activity the this rates week being, the rates quoted being in quotheted 1000teu in the 1sector000teu are 4250/28001740/1300 TEU TEU (GL) (G) 24 20.5 K K 1.676.81 ► ▼0.00 0. 19 market conditions looking increasingly difficult, the direction in noticeablysector are becoming noticeably more becoming competitive more ascompe ownerstitive jostleas owners for any 2000/1600 INDEX T OTALTEU (G) 21 K 71.362.84 ▼ ▼1.33 0.05 which the market is heading at the moment is all too apparent. 2500/1900 TEU (G) 22 K 4.99 ▼ 0.05 possibilities.jostle for any possibilities. The one positive to take is that this is a necessary process as the 2800/2000 TEU (GL) 22 K 4.61 ▼ 0.12 The week has been one of limited new business in the market, market currently remains constricted by over-capacity and that a The week has3500/2500 been one TEU of (GL) limited 23 K new 3.34business ▼ 0.in16 the market, WithWith the the number number of of available available vesselsvessels st steadilyeadily building building up upand and particularly in the Atlantic where volumes are also apparently marketcorrection conditions might help looking it find increasingly its balance and difficult, give it athe fighting direction in particularlysuffering. inOtherwise 4250/2800 the Atlantic as TEUthe (GL) wheremajority 24 K volumes of the1.67 orders are ►in also 0.00the apparentlymarket market conditions looking increasingly difficult, the direction in INDEX TOTAL 71.36 ▼ 1.33 whichchance the as wemarket look ahead.is heading at the moment is all too apparent. suffering.continue Otherwise to be for extended as the periodsmajority of currentof the vesselsorders orin the market which the market is heading at the moment is all too apparent. continue to be for extended periods of current vessels or The one positive to take is that this is a necessary process as the replacements, with increasing numbers of owners trying to cut in The one positive to take is that this is a necessary process as the replacements,The week haswith been increasing one of limited numbers new businessof owners in thetrying market, to cut in market currently remains constricted by over-capacity and that a and secure employment. market currently remainsThe Box constricted Index (BOXi) by over -capacity and that a and secureparticularly employment. in the Atlantic where volumes are also apparently correction170 might help it find its balance and give it a fighting chance correction might help it find its balance and give it a fighting suffering. Otherwise as the majority of the orders in the market as we look ahead After a flurry of activity on the panamax sizes in recent weeks, 150chance as we look ahead. After continue a flurry to beof for activity extended on periods the of panamaxcurrent vessels sizes or in recent weeks, pulling the BOXi down in this segment as operators and owners 130 pullingreplacements, the BOXi down with in increasing this segment numbers as operators of owners and trying owners to cut alike in alike looked to lock in what they could through the winter 110 lookedand to s ecurelock in employment. what they could through the winter months, there ▼ 71.36The Box Index (BOXi) months, there have this week been mixed results in the sizes 90170 have this week been mixed results in the sizes below. In the 3500teu below. In the 3500teu segment we have seen the full extent of 150 segmentAfter we a flurry have of seen activity the on full the extent panamax of thesizes struggling in recent weeks, European 70 the struggling European market with a gearless 3400teu unit marketpulling with thea gearless BOXi down 3400teu in this unit segmen fixingt as atoperators just under and oUS$8,000wners 50130 fixing at just under US$8,000 for 3-4 months, while a geared for 3-4alike months, looked whileto lock a gearedin what B178they coulddesign, through with thecomparable winter 30110 B178 design, with comparable loaded intakes, managed to secure ▼ 71.36 loadedmonths, intakes, there managed have this to weeksecure been a reportedmixed results US$11,500 in the sizeson an 90 Asiaa reported - West US$ Africa11,500 service, on an albeitAsia - forWest the Africa increasingly service, al commonbeit below. In the 3500teu segment we have seen the full extent of 70 Feb 10 Feb 11 Nov 09 Nov Nov 10 Nov Nov 11 Nov Aug 10 Aug flexible period, with a minimum 4 to maximum 10 months agreed. 11 Aug May 10 May for the increasingly common flexible period, with a minimum 4 11 May the struggling European market with a gearless 3400teu unit to maximum 10 months agreed. 50 fixing at just under US$8,000 for 3-4 months, while a geared Meanwhile the 1700teu sector, resilient for a number of weeks 30 recently, B178 is design under, with further comparable pressure loaded as intakesowners, mhereanaged also to securelook to a reported US$11,500 on an Asia - West Africa service, albeit cover their positions quickly with theR EPRESENTATIVElittle business available. F IXTURES Feb 11 Feb 10 Nov 11 Nov Nov 10 Nov Nov 09 Nov Aug 11 Aug Aug 10 Aug May 11 May for the increasingly common flexible period, with a minimum 4 10 May to maximumNAME 10 monthsD agreed.WT TEU 14T BLT SPD CONS GR CHARTERER DELY DATE PERIOD RATE $

HLL BALTIC 62,442 4,565 3,180 95 22 145 GL MAERSK SE Asia Oct 11 2-3 mos 7,500

NORTHERN DIPLOMAT 42,007 R3,534e p r2,353e s e n09 t a t i21 v e F85i x t uGLr e s MAERSK NE Asia Oct 11 2-3 mos 7,500 E.R. MELBOURNE 45,384 3,400R EPRESENTATIVE 2,470 98 23 110 F IXTURESGL HAPAG LLOYD Med Oct 11 3-4 mos 7,900 Name Dwt Teu 14T Blt Spd Cons GR Charterer Dely Date Period Rate $ BARRY 41,800 3,091 2,481 04 22 105 G CMA CGM SE Asia Oct 11 4-10 mos 11,500 NAME DWT TEU 14T BLT SPD CONS GR CHARTERER DELY DATE PERIOD RATE $ CITYHLL OF Baltic BEIJING 34,41862,442 2,5784,565 1,9003,180 0995 22 14588 GLG CMAMaersk CGM SESE Asia Oct 11 62-3-9 mos 10,8507,500 CAPEHLL N EMOBALTIC 23,60062,442 1,7404,565 1,2953,180 10 95 20 22 58145 GLGL WAN HMAIAERSK LINES NESE Asia Asia OctOct 11 11 4-62 mos-3 mos 9,1507,500 Northern Diplomat 42,007 3,534 2,353 09 21 85 GL Maersk NE Asia Oct 11 2-3 mos 7,500 NORTHERNGLORIA D IPLOMAT 22,90042,007 1,7283,534 1,1202,353 01 09 19 21 51.585 G GL UFSMAERSK MedNE Asia OctOct 11 11 3-62 mos-3 mos 8,7007,500 TE.R.RAVEE.R. Melbourne M TELBOURNERADER 22,52545,38445,384 1,6003,4003,400 1,1242,4702,470 9498 98 1923 23 11054110 GLG GL HapagHDAPAGELMAS Lloyd L LOYD MedMed OctOct 11 11 3-430 3days mos-4 mos 8,5007,9007,900 CONBRARRYAD S 13,76041,800 1,1183,091 7002,481 06 04 19.622 38.5105 G G SEABOARDCMA CGM USGSE Asia OctOct 11 11 174 days-10 mos 7,30011,500 Barry 41,800 3,091 2,481 04 22 105 G CMA CGM SE Asia Oct 11 4-10 mos 11,500 CITYJORK OF BEIJING 11,20034,418 8682,578 6001,900 01 09 18 22 33.388 GL G CMACMA CGM CGM UKCSE Asia OctOct 11 11 4-76 mos-9 mos 6,80010,850 CAPE NEMO 23,600 1,740 1,295 10 20 58 GL WAN HAI LINES NE Asia Oct 11 4-6 mos 9,150 City of Beijing 34,418 2,578 1,900 09 22 88 G CMA CGM SE Asia Oct 11 6-9 mos 10,850 GLORIA 22,900 1,728 1,120 01 19 51.5 G UFS Med Oct 11 3-6 mos 8,700 Cape Nemo 23,600 1,740 1,295 10 20 58 GL Wan Hai Lines NE Asia Oct 11 4-6 mos 9,150 TRAVE TRADER 22,525 1,600 1,124 94 19 54 G DELMAS Med Oct 11 30 days 8,500 GloriaCONRAD S 22,90013,760 1,7281,118 1,120700 0106 1919.6 51.538.5 G G SUFSEABOARD MedUSG OctOct 11 11 3-617 mos days 8,7007,300 JORK 11,200 868 600 01 18 33.3 GL CMA CGM UKC Oct 11 4-7 mos 6,800 Trave Trader 22,525 1,600 1,124 94 19 54 G Delmas Med Oct 11 30 days 8,500

Conrad S 13,760 1,118 700 06 19.6 38.5 G Seaboard USG Oct 11 17 days 7,300

Jork 11,200 868 600 01 18 33.3 GL CMA CGM UKC Oct 11 4-7 mos 6,800

Page 39 Every effort has been made to ensure the information contained within this report is accurate, but Braemar Seascope Containers can accept no responsibility for any error, omission or consequence therefrom.

B RAEMAR S EASCOPE C ONTAINERS - L ONDON – S INGAPORE – S HANGHAI

S&P:- [email protected] C HARTERING: - [email protected] Every effort has been made to ensure the information contained within this report is accurate, but Braemar Seascope Containers can accept no responsibility for any LONDON - CHARTERING: PHIL WOODINGTONerror,, omissionGRAHAM or B consequenceOOTH, RICHARD therefrom. WETZKI , BEN JEANS, RANULF SWALLOW S&P: PEYTON BROER, SEBASTIAN DAVENPORT -THOMAS, JEREMY DAVIES, BILL PRICE B RAEMAR S EASCOPESINGAPORE C ONTAINERS - JAMES BUCK, ROY E-DKINS L SONDONHANGHAI - –AXEL S INGAPOREHUANG – S HANGHAI RESEARCH - JONATHAN ROACH S&P:- [email protected] C HARTERING: - [email protected] WWW.BRAEMARSEASCOPE .COM LONDON - CHARTERING: PHIL WOODINGTON, GRAHAM BOOTH, RICHARD WETZKI, BEN JEANS, RANULF SWALLOW S&P: PEYTON BROER, SEBASTIAN DAVENPORT-THOMAS, JEREMY DAVIES, BILL PRICE SINGAPORE - JAMES BUCK, ROY EDKINS SHANGHAI - AXEL HUANG RESEARCH - JONATHAN ROACH

WWW.BRAEMARSEASCOPE.COM Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS S&P Secondhand, Newbuilding & Demolition Markets

Contributed by Week Ending: 14th October 2011 Golden Destiny S.A. (Given in good faith but without guarantee) Golden Destiny S.A. 57 Akti Miaouli, Piraeus, 18536, Greece TOTAL WEEKLY S&P ACTIVITY VESSELTYPE SECOND HAND DEMOLITION TOTAL Phone: +30 210 4295000 Units Invested Capital Units in DWT Units Bulkcarriers 8 185.300.000 5 339.491 13 Website: www.goldendestiny.gr Tankers * 10 279.800.000 5 462.440 15 Gas Tankers ** 8 1.400.000.000 0 0 8 GDSALiners WEEKLY *** SECONDHAND1 0 / DEMOLITION1 22.930 2 / ContainersNEW BUILDING6 MARKET204.000.000 ANALYSIS1 40.379 7 of 298,920 dwt built 2000 Japan had been reported sold for $62 Reefers 0 0 1 7.188 1 mil each. Pa sse nge r / Cruise 0 0 0 0 0 Ro - Ro***** 0 0 0 0 0 Car Carrier 0 0 0 0 0 The week ended with firm activity in all main segments, bulk carriers, Combined ***** 0 0 0 0 0 tankers, gas tankers and containers, with tankers grasping the lion Special Projects ****** 1 3.000.000 1 1.800 2 TTL VSLS/Demo 34 2.072.100.000 14 874.228 48 share by holding 29.4 % of this week’s total volume of reported secondhand transactions. Overall, 34 vessels reported to have Key: (*) Incl. Crude Oil, Clean & Dirty Products, Chemical, Asphalt & changed hands this week at a total invested capital in the region Veg. Oil, of US$ 2,07 billion, two transactions reported at an undisclosed sale price. In terms of the reported number of transactions, the (**) incl. LPG, LNG, (***) incl. Multi-purpose and Tweendeckers, S&P activity is up by 9.6% from last week’s activity, due to strong enbloc deal in the LPG segment, and up by 9.6% comparable (*****) incl. Bulk-Ore, Ore-Oil and Bulk-Oil carriers, with previous year’s weekly S&P activity when 31 vessels induced (*****) incl. Ro-Ro Cargo, Ro-Ro Passenger, buyers’ interest with bulk carriers and tankers grasping 74% share of the total volume of S&P activity. In terms of invested capital, gas (******) incl. Oil & Drilling Rigs, Tugs, Livestock, Trawlers, Cable/ tankers attracted most of the invested capital, about 68% of the Exploration/Navy/Support Vessels, total amount invested, due to the enbloc deal of 8 modern for about $1,4 billion, while tankers are in the second rankings by grasping The week ended with the highest level of activity being recorded 13.5% of the total invested capital and bulkers 8.9%. in the secondhand market, lower levels of newbuilding activity and firmer volume of demolition transactions. NEWBUILDING MARKET

Overall, the secondhand ship purchasing activity is up by 113% WEEKLY NEWBUILDING ACTIVITY Vessel Type Units in DWT Invested Capital P&C % w-o-w in comparison with the ordering momentum, while the demolition Bulkcarriers 4 63.000 0 4 -79% activity is 12.5% down from the total number of orders reported Tankers 0 0 0 0 -100% and down by 58.8% from the secondhand ship purchasing activity. Gas Tankers 2 76.850 128.500.000 0 100% Liners 0 0 0 0 -100% Containers 0 0 0 0 -100% The week closed with 48 transactions reported worldwide in the Reefers 0 0 0 0 N/A secondhand and demolition market, up by 17% from previous week Passenger / Cruise 0 0 0 0 -100% Ro - Ro 2 25.200 0 2 N/A and up by 26.3% from a similar week in 2010, when 38 transactions Car Carrier 0 0 0 0 N/A had been reported and secondhand ship purchasing activity was Combined 0 0 0 0 N/A 82% higher than the ordering business. Special Projects 8 16.800 276.300.000 5 -33% TOTAL 16 181.850 404.800.000 11 -69%

SECONDHAND MARKET Key:/ * The total invested capital does not include deals reported with undisclosed contract price The secondhand ship purchasing activity is standing at remarkable high levels despite the economic turmoil and the tight European ** Deals reported as private and confidential (not revealed contract price) bank lending. Strong levels of acquisitions have been reported not only in the bulk carrier and tanker segment, but also in the gas The week ended with the newbuilding business showing lower and container market with significant enbloc deals. Notable deals levels of contracting activity from previous week’s high levels of of this week have been two sales in the VLCC segment that justify 51 new orders. Offshore vessels have been the most popular once more the falling asset values in this vessel size. It has been newbuilding investments with bulk carriers posting a 79% week- reported that M/T “SKY WING” of 299,997dwt built 2002 Japan on-week decline of ordering volume, no emerged deals in the changed hands for $34,5 mil, when in April 2010 a similar vessel container market and fresh activity in the LPG segment. Overall,

Page 40 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS S&P Secondhand, Newbuilding & Demolition Markets the week closed with 16 fresh orders reported worldwide at a total the Ministry of Industries that will be responsible for monitoring the deadweight of 181,850 tons, posting a 68.6 % week-on-week import of ships of recycling in Bangladesh. In the wet market, scrap decline. This week’s total newbuilding business is in close parity levels keep their pace with India and Bangladesh paying $525/ldt. with similar week’s closing in 2010, when 17 fresh orders had been Pakistan seems to have regained its power by picking up again wet reported with bulk carriers grasping 41% share respectively of the units, while in China business has slowed down due to the National total ordering activity. In terms of invested capital, the total amount October holidays underway. of money invested is estimated at region $405 mil with 69% of the total number of orders being reported at an undisclosed contract The week ended with 14 vessels reported to have been headed price. The offshore units along with LPG carriers seem to have to the scrap yards of total deadweight 874,228 tons. In terms of attracted most of the invested capital. the reported number of transactions, the demolition activity has been marked with a 40% week-on-week increase and regarding the total deadweight sent for scrap there has been a 190% In the bulk carrier segment, an order has been emerged by the increase. In terms of scrap rates, the highest scrap rate has been Turkish player, Ciner Group, for the construction of a new fuel achieved this week in the tanker sector by Pakistan for a tanker of efficient design at China’s Sinopacific Shipbuilding, constructed at 91,717 dwt “NOSTOS” with 13,592/ldt at $540/ldt, while in the dry the group’s Dayang facility. The Turkish group has said that it has sector India has paid $540/ldt for a container of 40,379 dwt “MSC signed a contract for four 63,000 dwt bulker, but the yard suggests AURELIE”. India and Pakistan have attracted 57% of the total that the deal includes an option for two more units. No prices has demolition activity. At a similar week in 2010, demolition activity been revealed, but market sources suggest that the vessels, which was down by 50% from the current levels, in terms of the reported are a new Crown 63 design, are costing below $30 mil each with number of transactions, 7 vessels had been reported for scrap of first delivery in August 2012. Furthermore, one order came to light total deadweight 36,623 tons with no scrapping activity in the bulk for an ordering spree of 10 76,000dwt panamax bulkers by Chinese carrier and tanker segment, with India and Pakistan offering $435- coal shipper Guangdong Lanhai Shipping in Chinese Zhoushan 410/ldt for dry and $465-%440/ldt for wet cargo. based Yangfan Group, but it is not a fresh order as a source close to the deal confirms that the contract has been booked during the GREEK PRESENCE first half of this year. Greek owners continue their secondhand purchasing plans, In the tanker segment, one more MR order came to light by whereas in the newbuilding market remain more skeptical with only East Med of Greece for two 52,000dwt product tankers in SPP two units rumored to be ordered this week in the MR tanker segment Shipbuilding of South Korea at a price of $35,5 mil each for delivery of 52,000 dwt in South Korean SPP Shipbuilding yard at a price in 2012, with an option for two more units. of $35,5 mil each for delivery in 2012. In the secondhand market, Greeks concluded 2 acquisitions in the bulk carrier segment, 2 in In the gas market, there was finally some ordering activity in the the tanker and an enbloc 6 units’ deal in the container segment. LPG segment with Pertamina of Indonesia confirming an order for The total invested capital of Greek owners in the secondhand one 84,000 cu.m unit in Hyundai at a price of $79,5mil with delivery market is estimated to be this week at region $309,9 mil, whereas in 2013, while KSS line of South Korea is said to have signed a in the newbuilding market $71 mil. contract with a South Korean yard for the construction of a 35,000 cu.m unit at a price of $49 mil with a long term charter to Mitsui & NEWBUILDING MARKET – ORDERS Co. 4 units ordered by In the offshore sector, the activity grasped this week’s lion share of DRY BULK CARRIERS – 63,000 DWT Ciner Group (TRK) at Sinopacific’s group Dayang facility(PRC) Price newbuilding unit with 8 units reported to have been ordered, 62.5% undisclosed.Dely 2h/2012-1q/2013 (Option for two more) of the volume being contracted for platform supply vessels. GAS TANKERS –50,350 DWT LPG/Ethylene carrier 1 unit ordered DEMOLITION MARKET by Pertamina (INDO) at Hyundai (SKR) Price usd $ 79.5 mil .Dely 12/2013 (84,000 cum. Rumored to have an option for one In the demolition market, a firmer volume of scrapping activity more) ABT 26,500 DWT LPG 1 unit ordered by KSS Line (SKR) at Price usd $ 49 mil.Dely 5/2013 (35,000cbm. came to light from last weeks’ weak levels. The downward revision South Korean Yard Rumored to include 10year tc to Mitsui & Co) of scrap prices for the dry/general cargo continues for a second consecutive week with India and Bangladesh paying $495/ldt, RO-RO –12,600 DWT 2 units ordered by Maritime Nantaise (FR) China $430/ldt and Pakistan being one breath from the Indian at Hyundai Mipo (SKR) Price undisclosed. Dely 2013 (Option for subcontinent region by offering $490/ldt. Some deals have been one or two more. 2800lane meters) emerged the last days in the Bangladesh market, but there is still SPECIAL PROJECTS – DRILL SHIP 2 units ordered by th no official extension of the last market’s deadline on October 12 . Opus Offshore (SPORE) at Shanghai Shipyard (PRC) Price In the meantime, Bangladesh has announced its plans for the undisclosed. Dely 3/2014 – 12/2014 JACK UP RIG FOR HARSH creation of a “Ship Building / Ship Recycling Board” service under ENVIRONMENTS 1 unit ordered by ENSCO at Keppel FELS

Page 41 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS S&P Secondhand, Newbuilding & Demolition Markets

(SPORE) Price usd $ 245 mil. Dely 3q/2014 (Super A Class. The contract arose from the exercise of an option that was part of ENSCO’s order of 2 KFELS Super A class rigs on Feb/2011. The KFELS Super A class rigs can operate in depths of 122m and drill to depths of 40,000ft) 4,000 DWT Platform Supply Vessel 1 unit ordered by Gulfmark Offshore (USA) at Simek (NOR) Price undisclosed. Dely 6/2013 (SI216 Arctic design. North Sea Work) 3,800 DWT Platform Supply Vessel 1 unit ordered by Troms Offshore Supply (NOR) at STX OSV Braila in Romania & towed to the company’s yard in Brevik, Norway for outfitting. Price undisclosed (however rumored to be in the region of $ 50 mil). Dely 1q/2013 3,000 DWT Platform Supply Vessel 2 units ordered by Gulfmark Offshore (USA) at Rosetti (ITL) Price undisclosed. Dely 12/2013-3/2014 (UT755XL design. North Sea Operation) 3,000 DWT Platform Supply Vessel 1 unit ordered by Tanjung Offshore (MAL) at Muhibbah Marine (MAL) Price Usd $ 31.3 mil Dely 1/2013

Key: TRK: Turkey, PRC: China, INDO: Indonesia, SKR: South Korea, FR: France, SPORE: Singapore, NOR: Norway, ITL: Italy, MAL: Malaysia, Dely: Delivery

Page 42 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report SHIPPING MARKETS Forward Freight Agreements - FFAs DRYBULK DATE SECTOR VESSEL ROUTE PERIOD FROM TO RATE 14-Oct-11 Dry Capesize Cape 4 TC Q Q4 11 1-Oct-11 31-Dec-11 23,950 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 12 1-Jan-12 31-Dec-12 14,900 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 13 1-Jan-13 31-Dec-13 16,000 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 14 1-Jan-14 31-Dec-14 17,250

14-Oct-11 Dry Handysize BHSI Average Q Q4 11 1-Oct-11 31-Dec-11 11,600 14-Oct-11 Dry Handysize BHSI Average Y Cal 12 1-Jan-12 31-Dec-12 10,000 14-Oct-11 Dry Handysize BHSI Average Y Cal 13 1-Jan-13 31-Dec-13 10,250 14-Oct-11 Dry Handysize BHSI Average Y Cal 14 1-Jan-14 31-Dec-14 10,350

14-Oct-11 Dry Panamax P2A Skaw-Gib / Far East M 11-Oct 1-Oct-11 31-Oct-11 26,000 14-Oct-11 Dry Panamax P2A Skaw-Gib / Far East Q Q4 11 1-Oct-11 31-Dec-11 24,150 14-Oct-11 Dry Panamax P2A Skaw-Gib / Far East Y Cal 12 1-Jan-12 31-Dec-12 21,000

14-Oct-11 Dry Panamax P3A Japan-SK / NoPac RV M 11-Oct 1-Oct-11 31-Oct-11 14,750 14-Oct-11 Dry Panamax P3A Japan-SK / NoPac RV Q Q4 11 1-Oct-11 31-Dec-11 13,750 14-Oct-11 Dry Panamax P3A Japan-SK / NoPac RV Y Cal 12 1-Jan-12 31-Dec-12 11,250

14-Oct-11 Dry Supramax BSI Q Q4 11 1-Oct-11 31-Dec-11 15,800 14-Oct-11 Dry Supramax BSI Y Cal 12 1-Jan-12 31-Dec-12 12,700 14-Oct-11 Dry Supramax BSI Y Cal 13 1-Jan-13 31-Dec-13 13,000 14-Oct-11 Dry Supramax BSI Y Cal 14 1-Jan-14 31-Dec-14 13,100

TANKER DATE SECTOR VESSEL ROUTE PERIOD FROM TO RATE 14-Oct-11 Wet Clean Tanker BITR Clean TC2_37 Cont/USAC M 11-Oct 1-Oct-11 31-Oct-11 156 14-Oct-11 Wet Clean Tanker BITR Clean TC2_37 Cont/USAC Q Q4 11 1-Oct-11 31-Dec-11 165.33 14-Oct-11 Wet Clean Tanker BITR Clean TC2_37 Cont/USAC Y Cal 12 1-Jan-12 31-Dec-12 140.77

14-Oct-11 Wet Clean Tanker BITR Clean TC4 Sing/Japan M 11-Oct 1-Oct-11 31-Oct-11 151.5 14-Oct-11 Wet Clean Tanker BITR Clean TC4 Sing/Japan Q Q4 11 1-Oct-11 31-Dec-11 155.17 14-Oct-11 Wet Clean Tanker BITR Clean TC4 Sing/Japan Y Cal 12 1-Jan-12 31-Dec-12 132.06

14-Oct-11 Wet Clean Tanker BITR Clean TC5 M 11-Oct 1-Oct-11 31-Oct-11 118 14-Oct-11 Wet Clean Tanker BITR Clean TC5 Q Q4 11 1-Oct-11 31-Dec-11 124.17 14-Oct-11 Wet Clean Tanker BITR Clean TC5 Y Cal 12 1-Jan-12 31-Dec-12 111.88

14-Oct-11 Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN M 11-Oct 1-Oct-11 31-Oct-11 44.5 14-Oct-11 Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN Q Q4 11 1-Oct-11 31-Dec-11 48.5 14-Oct-11 Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN Y Cal 12 1-Jan-12 31-Dec-12 42.94

14-Oct-11 Wet Dirty Tanker BITR Dirty TD5 WAF/USAC M 11-Oct 1-Oct-11 31-Oct-11 90 14-Oct-11 Wet Dirty Tanker BITR Dirty TD5 WAF/USAC Q Q4 11 1-Oct-11 31-Dec-11 83.67 14-Oct-11 Wet Dirty Tanker BITR Dirty TD5 WAF/USAC Y Cal 12 1-Jan-12 31-Dec-12 59.91 Page 43 14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. M 11-Oct 1-Oct-11 31-Oct-11 120 14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. Q Q4 11 1-Oct-11 31-Dec-11 117.33 14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. Y Cal 12 1-Jan-12 31-Dec-12 96.04 DRYBULK DATE SECTOR VESSEL ROUTE PERIOD FROM TO RATE 14-Oct-11 Dry Capesize Cape 4 TC Q Q4 11 1-Oct-11 31-Dec-11 23,950 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 12 1-Jan-12 31-Dec-12 14,900 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 13 1-Jan-13 31-Dec-13 16,000 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 14 1-Jan-14 31-Dec-14 17,250

14-Oct-11 Dry Panamax Avg 4 TC Panamax Q Q4 11 1-Oct-11 31-Dec-11 14,850 14-Oct-11 Dry Panamax Avg 4 TC Panamax Y Cal 12 1-Jan-12 31-Dec-12 12,300 14-Oct-11 Dry Panamax Avg 4 TC Panamax Y Cal 13 1-Jan-13 31-Dec-13 12,700 14-Oct-11 Dry Panamax Avg 4 TC Panamax Y Cal 14 1-Jan-14 31-Dec-14 13,000 DRYBULK 14-Oct-11DATE SECTORDry PanamaxVESSEL P2A Skaw-GibROUTE / Far East M PERIOD11-Oct 1-Oct-11FROM 31-Oct-11TO 26,000RATE 14-Oct-1114-Oct-11 DryDry PanamaxCapesize P2A Skaw-GibCape 4 /TC Far East QQ Q4Q4 1111 1-Oct-111-Oct-11 31-Dec-1131-Dec-11 24,15023,950 14-Oct-1114-Oct-11 DryDry PanamaxCapesize P2A Skaw-GibCape 4 /TC Far East YY CalCal 1212 1-Jan-121-Jan-12 31-Dec-1231-Dec-12 21,00014,900 14-Oct-11 Dry Capesize Cape 4 TC Y Cal 13 1-Jan-13 31-Dec-13 16,000 14-Oct-1114-Oct-11 DryDry PanamaxCapesize P3A Japan-SKCape 4/ TCNoPac RV MY 11-OctCal 14 1-Oct-111-Jan-14 31-Oct-1131-Dec-14 14,75017,250 14-Oct-11 Dry Panamax P3A Japan-SK / NoPac RV Q Q4 11 1-Oct-11 31-Dec-11 13,750 14-Oct-1114-Oct-11 DryDry HandysizePanamax P3A Japan-SKBHSI Average / NoPac RV YQ CalQ4 1211 1-Jan-121-Oct-11 31-Dec-1231-Dec-11 11,25011,600 14-Oct-11 Dry Handysize BHSI Average Y Cal 12 1-Jan-12 31-Dec-12 10,000 14-Oct-1114-Oct-11 DryDry SupramaxHandysize BHSI BSIAverage QY Q4Cal 11 13 1-Oct-111-Jan-13 31-Dec-1131-Dec-13 15,80010,250 14-Oct-1114-Oct-11 DryDry SupramaxHandysize BHSI BSIAverage YY CalCal 1214 1-Jan-121-Jan-14 31-Dec-1231-Dec-14 12,70010,350 14-Oct-11 Dry Supramax BSI Y Cal 13 1-Jan-13 31-Dec-13 13,000 14-Oct-1114-Oct-11 DryDry SupramaxPanamax Avg 4 TCBSI Panamax YQ CalQ4 1411 1-Jan-141-Oct-11 31-Dec-1431-Dec-11 13,10014,850 14-Oct-11 Dry Panamax Avg 4 TC Panamax Y Cal 12 1-Jan-12 31-Dec-12 12,300 14-Oct-11TANKER Dry Panamax Avg 4 TC Panamax Y Cal 13 1-Jan-13 31-Dec-13 12,700 14-Oct-11DATE SECTORDry PanamaxVESSEL Avg 4ROUTE TC Panamax Y PERIODCal 14 1-Jan-14FROM 31-Dec-14TO 13,000RATE 14-Oct-11 Wet Clean Tanker BITR Clean TC2_37 Cont/USAC M 11-Oct 1-Oct-11 31-Oct-11 156 14-Oct-1114-Oct-11 WetDry Clean TankerPanamax BITR Clean P2ATC2_37 Skaw-Gib Cont/USAC / Far East QM Q411-Oct 11 1-Oct-111-Oct-11 31-Dec-1131-Oct-11 165.3326,000 14-Oct-1114-Oct-11 WetDry Clean TankerPanamax BITR Clean P2ATC2_37 Skaw-Gib Cont/USAC / Far East YQ CalQ4 1211 1-Jan-121-Oct-11 31-Dec-1231-Dec-11 140.7724,150 14-Oct-11 Dry Panamax P2A Skaw-Gib / Far East Y Cal 12 1-Jan-12 31-Dec-12 21,000 14-Oct-11 Wet Clean Tanker BITR Clean TC4 Sing/Japan M 11-Oct 1-Oct-11 31-Oct-11 151.5 14-Oct-1114-Oct-11 WetDry Clean TankerPanamax BITR Clean P3A TC4Japan-SK Sing/Japan / NoPac RV QM Q411-Oct 11 1-Oct-111-Oct-11 31-Dec-1131-Oct-11 155.1714,750 14-Oct-1114-Oct-11 WetDry Clean TankerPanamax BITR Clean P3A TC4Japan-SK Sing/Japan / NoPac RV YQ CalQ4 1211 1-Jan-121-Oct-11 31-Dec-1231-Dec-11 132.0613,750 14-Oct-11CapitalDry Link PanamaxShipping P3A Japan-SK / NoPac RV Y Cal 12 1-Jan-12Monday,31-Dec-12 October 17, 201111,250 (Week 41) 14-Oct-11WeeklyWet MarketsClean Tanker BITR Report Clean TC5 M 11-Oct 1-Oct-11 31-Oct-11 118 14-Oct-1114-Oct-11 WetDry Clean TankerSupramax BITR Clean TC5BSI QQ Q4Q4 11SHIPPING11 1-Oct-111-Oct-11 31-Dec-1131-Dec-11 MARKETS124.1715,800 14-Oct-1114-Oct-11 WetDry Clean TankerSupramax BITR Clean TC5BSI YY CalCal 1212 1-Jan-121-Jan-12 31-Dec-1231-Dec-12 111.8812,700 14-Oct-11 Dry Supramax BSI Y Cal 13 1-Jan-13 31-Dec-13 13,000 Forward14-Oct-1114-Oct-11 WetDry FreightDirty TankerSupramax BITR Dirty AgreementsTD3 MEG/JAPANBSI - M YFFAs11-OctCal 14 1-Oct-111-Jan-14 31-Oct-1131-Dec-14 13,10044.5 14-Oct-11 Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN Q Q4 11 1-Oct-11 31-Dec-11 48.5 14-Oct-11TANKER Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN Y Cal 12 1-Jan-12 31-Dec-12 42.94 DATE SECTOR VESSEL ROUTE PERIOD FROM TO RATE 14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TC2_37TD5 WAF/USAC Cont/USAC MM 11-Oct11-Oct 1-Oct-111-Oct-11 31-Oct-1131-Oct-11 15690 14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TC2_37TD5 WAF/USAC Cont/USAC QQ Q4Q4 1111 1-Oct-111-Oct-11 31-Dec-1131-Dec-11 165.3383.67 14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TC2_37TD5 WAF/USAC Cont/USAC YY CalCal 1212 1-Jan-121-Jan-12 31-Dec-1231-Dec-12 140.7759.91

14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TD7TC4 NSEA/CONT. Sing/Japan MM 11-Oct11-Oct 1-Oct-111-Oct-11 31-Oct-1131-Oct-11 151.5120 14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TD7TC4 NSEA/CONT. Sing/Japan QQ Q4Q4 1111 1-Oct-111-Oct-11 31-Dec-1131-Dec-11 117.33155.17 14-Oct-1114-Oct-11 WetWet CleanDirty TankerTanker BITRBITR DirtyClean TD7TC4 NSEA/CONT. Sing/Japan YY CalCal 1212 1-Jan-121-Jan-12 31-Dec-1231-Dec-12 132.0696.04

14-Oct-11 Wet Dirty Tanker BITR Dirty TD3 MEG/JAPAN M 11-Oct 1-Oct-11 31-Oct-11 44.5

14-Oct-11 Wet Dirty Tanker BITR Dirty ContributedTD3 byMEG/JAPAN Q Q4 11 1-Oct-11 31-Dec-11 48.5 14-Oct-11 Wet Dirty Tanker BITR Dirty SSY TD3 MEG/JAPAN Y Cal 12 1-Jan-12 31-Dec-12 42.94 SSY Futures Ltd 14-Oct-11 Wet Dirty Tanker BITR Dirty Lloyds Chambers,TD5 WAF/USAC 1, Portsoken Street,M London,11-Oct El 8PH1-Oct-11 31-Oct-11 90 14-Oct-11 Wet Dirty Tanker BITR Dirty Phone: +44(0)2072651871TD5 WAF/USAC (Dry) +44(0)2079777501Q Q4 11 1-Oct-11 (Wet) 31-Dec-11 83.67 Website: www.ssyonline.com 14-Oct-11 Wet Dirty Tanker BITR Dirty TD5 WAF/USAC Y Cal 12 1-Jan-12 31-Dec-12 59.91

14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. M 11-Oct 1-Oct-11 31-Oct-11 120 14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. Q Q4 11 1-Oct-11 31-Dec-11 117.33 14-Oct-11 Wet Dirty Tanker BITR Dirty TD7 NSEA/CONT. Y Cal 12 1-Jan-12 31-Dec-12 96.04

Page 44 Capital Link Shipping Monday, October 17, 2011 (Week 41) Weekly Markets Report EVENTS Conference Call Calendar Exchange Ticker Sector Results Conference Call Time Company Date Time Date (EDT)

Mon., October Tue., October Safe Bulkers SB Dry Bulk AMC 09:00 AM NYSE 17, 2011 18, 2011

Offshore Wed., October Thu., October Noble Corp. AMC 08:00 AM NYSE NE Drill Rigs 19, 2011 20, 2011

Wed., October Thu., October Costamare Inc. CMRE Containers AMC 08:30 AM NYSE 26, 2011 27, 2011 Mon., October Capital Product Mon., October CPLP Tankers BMO 31, 2011 10:00 AM Partners NASDAQ 31, 2011

Tue., Tue., Rowan Offshore RDC November 01, BMO November 01, 10:00 AM Companies Inc. NYSE Drill Rigs 2011 2011 Thu., Thu., Ensco Offshore November 03, November 03, International ESV Drill Rigs BMO 10:00 AM NYSE 2011 2011 Inc.

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