Shipping IntelligenceWeekly

Issue No. 948 26-Nov-2010 ISSN: 1358-8028

ClarkSea Index $14,361 The Atlantic Market This Week ……

Capesize: Weaker Panamax: Firmer Handy: Firm

Selection of ports covered by the various market sectors in this report

The Pacific Market This Week ……

Capesize: Weaker Panamax: Softer Handy: Firm

510152025303540455055

Dec

-04

Apr-

05Au

g-05

Dec

-05

Apr-

06Au

g-06

Dec

-06

Apr-

07Au

g-07

Dec

-07

Apr-

08Au

g-08

Dec

-08

Apr-

09Au

g-09

Dec

-09

Apr-

10Au

g-10

$,000/day

Highlights VLCC Market Spot rates in WAF remained firm despite eastern ballasters………….…………p.2 Suezmax Market Average Suezmax earnings firmed by 26% w-o-w on the back of increased cargo volumes…….....………..……..p.2 Aframax Market Average Aframax spot earnings softened by 25% w-o-w……………………….p.2 Products Market Average clean “Handy” spot earnings firmed by 38% w-o-w…….…...….…p.3 Capesize Market Rates in the Atlantic fell despite a rather active week, whilst the Pacific market was sluggish for most of the week…..p.4 Panamax Market Whilst rates in the Atlantic improved w-o-w, those in the Pacific declined...…p.4 Handymax Market Earnings rose w-o-w, with the strongest gains made in the Pacific basin……...p.5 S & P Market There have been several interesting sales in the Panamax sector………………..p.i Newbuilding It is increasingly apparent that medium-term demand sentiment from owners is softening………… …………….......p.10 Demolition The waiting continues to see whether the promise of Bangladesh’s reopening will deliver………………………...…….p.11 Li

cens

ed to

Wal

lem

Shi

pbro

king

HK

Lim

ited.

Dis

trib

utio

n is

res

tric

ted;

ple

ase

rem

embe

r to

ack

now

ledg

e th

e so

urce

. ht

tp://

ww

w.c

lark

sons

.net

29/

11/2

010

01:3

9:14

680

45Licensed to W

allem S

hipbroking HK

Limited. D

istribution is restricted; please remem

ber to acknowledge the source. http://w

ww

.clarksons.net 29/11/2010 01:39:14 68045

Crude Tanker Spot MarketCrude Tanker Highlights

VLCC Single WS 2010 Average earnings $ per day VLCC Earnings

Voyage..... Nov 19 Nov 26 2010 2008 2009 2010 Nov 19 Nov 26 This Week ....2 280,000t Gulf - Europe 42.5 42.5 50 74,040 19,797 28,468 17,171 16,333 SOFTER -5%2 280,000t Gulf - US Gulf * 42.5 42.5 50 71,874 19,115 22,535 12,640 11,976 SOFTER -5%2 265,000t Gulf - Japan * 70.0 62.5 73 105,036 31,186 43,391 38,419 28,945 WEAKER -25%2 265,000t Gulf - S.Korea * 70.0 62.5 73 102,002 31,634 41,936 38,175 28,747 WEAKER -25%2 270,000t Gulf - Sing 70.0 62.5 74 108,338 33,172 44,779 38,832 29,740 WEAKER -23%2 280,000t Gulf - Red Sea 80.0 72.5 80 118,415 44,638 55,693 53,830 44,328 WEAKER -18%2 260,000t WAF - East * 70.0 67.5 72 82,951 35,013 42,766 38,736 35,855 SOFTER -7%2 260,000t WAF - US Gulf * 77.5 70.0 75 100,691 43,097 45,926 47,395 39,248 WEAKER -17%2 280,000t Med - UKC 87.5 80.0 85 128,474 58,558 68,066 67,280 58,165 WEAKER -14%2 260,000t WAF - WC India^ 3.50 3.50 3.63 87,201 37,844 44,411 40,243 39,782 STEADY -1%2 VLCC Ave. Earnings * 92,511 32,009 39,311 35,073 28,954 WEAKER -17%^ WAF - WC India route quoted in WS until 11-Aug-06; quoted as a lump-sum figure thereafter (in $ million).

Suezmax Single WS 2010 Average earnings $ per day Suezmax Earnings Voyage..... Nov 19 Nov 26 2010 2008 2009 2010 Nov 19 Nov 26 This Week ....4 130,000t Gulf - S.China 100.0 95.0 99 65,548 24,545 27,130 26,296 22,987 WEAKER -13%4 130,000t WAF - USAC * 97.5 107.5 98 65,588 25,031 25,932 25,062 29,676 FIRMER 18%4 130,000t WAF - Med 100.0 110.0 99 76,636 27,025 28,576 27,613 33,564 FIRMER 22%4 130,000t Med - Med * 105.0 120.0 104 87,681 31,391 35,521 32,850 43,073 FIRMER 31%4 Suezmax Ave. Earnings * 76,634 28,211 30,727 28,956 36,375 FIRMER 26%

Aframax Single WS 2010 Average earnings $ per day Aframax Earnings Voyage..... Nov 19 Nov 26 2010 2008 2009 2010 Nov 19 Nov 26 This Week ....6 80,000t Gulf - East * 110.0 115.0 117 38,045 14,330 15,849 12,719 13,892 FIRMER 9%6 80,000t Med - Med * 110.0 95.0 114 50,637 16,674 19,387 15,051 9,258 WEAKER!! -38%6 80,000t Med - USAC 105.0 105.0 120 50,924 19,869 19,612 12,121 11,772 STEADY -3%6 80,000t UKC - UKC * 110.0 95.0 111 68,511 12,164 21,916 19,020 9,520 WEAKER!! -50%6 80,000t UKC - USAC 120.0 115.0 123 50,587 18,339 18,582 16,598 14,229 WEAKER -14%6 80,000t UKC - Med 100.0 90.0 103 40,363 13,890 13,337 10,772 6,464 WEAKER!! -40%6 80,000t Indo - Japan * 105.0 105.0 112 38,513 11,537 14,780 10,770 10,612 STEADY -1%6 70,000t Carib - US Gulf * 140.0 125.0 132 36,172 13,120 16,770 18,444 13,904 WEAKER -25%6 80,000t Black Sea - Med * 110.0 100.0 119 67,785 25,071 26,649 19,710 14,913 WEAKER -24%6 Aframax Ave. Earnings * 49,944 15,483 19,225 15,952 12,017 WEAKER -25%

Clarkson Research Services Page 2

Note: In June 2008, all tanker earnings since start 2004 were re-evaluated on the basis of revised voyage calculations; "Earnings" are timecharter equivalents of spot freight rates (see footnote on page 4); */# Indicates constituent routes of "Average Earnings" for each sector since start 2004.

26-Nov-10

Crude Tanker Spot Earnings ($,000's/day)

10

20

30

40

50

60

70

80

90

100

Nov'08

Jan'09

Apr'09

Jun'09

Aug'09

Oct'09

Dec'09

Feb'10

Apr'10

Jun'10

Aug'10

Oct'10

VLCCSuezmaxAframax

• VLCCs: The MEG market softened considerably this week. The total number of fixtures for the month is now up to 43, though many more will be required to halt the falling rates. Despite ballasters from the Gulf, West Africa VLCC rates remain steady around WS 70. • Suezmaxes: Cargoes flooded into the WAF market yesterday, so owners were unwilling to offer their tonnage out today, preferring to hold off until Monday in case US charterers want to add their cargoes. It looks like the expected pre-Thanksgiving spike may yet end up as a post-Thanksgiving spike. • Aframaxes: All guns were blazing in the North Sea/Baltic on Friday. Extremely cold Baltic weather has led to speculation that ice class restrictions could be imposed as early as 10-15th December for Primorsk which has caused some ice class owners to re-evaluate the worth of their tonnage. However rates for voyages UKC have softened.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Product Tanker Spot Market

Clean Product WS 2010 Average earnings $ per day Clean Earnings Single Voyage... Nov 19 Nov 26 2010 2008 2009 2010 Nov 19 Nov 26 This Week ....8 75,000t Gulf - Japan 122.5 130.0 122 41,305 16,526 14,766 13,838 15,820 FIRMER 14%9 55,000t Gulf - Japan 135.0 135.0 133 34,854 13,608 10,973 10,430 10,059 SOFTER -4%

13 35,000t Gulf - Japan * 150.0 160.0 145 22,968 5,883 5,396 5,428 6,612 FIRMER 22%13 35,000t Gulf - E.Africa * 290.0 310.0 265 31,578 15,495 8,834 10,628 11,906 FIRMER 12%13 37,000t UKC - USAC * 150.0 170.0 163 24,669 8,539 10,305 7,675 10,466 FIRMER 36%13 38,000t Caribs - USAC * 135.0 140.0 140 23,650 6,170 7,114 5,909 6,537 FIRMER 11%13 30,000t Sing - Japan * 170.0 190.0 140 13,386 1,957 2,450 5,553 8,107 FIRMER 46%14 30,000t Med - USAC # 170.0 200.0 200 22,865 9,720 12,413 7,418 11,248 FIRMER 52%14 30,000t Med - UKC # 180.0 185.0 181 20,713 9,429 11,574 10,227 10,880 FIRM.... 6%14 30,000t Med - Med 170.0 175.0 171 36,510 8,840 19,499 17,845 19,053 FIRM.... 7%14 30,000t Black Sea - Med 180.0 180.0 177 29,075 11,741 17,320 16,457 16,457 STEADY 0%14 30,000t Baltic - UKC # 135.0 160.0 171 20,687 7,063 14,798 6,861 11,648 FIRMER 70%14 30,000t UKC - UKC 135.0 160.0 168 4,661 15,709 6,567 12,617 FIRMER 92%

Clean 'MR' Ave. Earnings * 23,250 7,651 7,656 7,039 8,725 FIRMER 24%Clean 'Hdy' Ave. Earnings # 21,422 8,737 12,928 8,169 11,258 FIRMER 38%

See footnote on page 2. § Note: 45kt dirty products Med-UKC is now calculated using a 47,000 dwt "MR" vessel

Dirty Product WS 2010 Average earnings $ per day Dirty Earnings Single Voyage... Nov 19 Nov 26 2010 2008 2009 2010 Nov 19 Nov 26 This Week ....12 55,000t Med - US Gulf * 125.0 122.5 141 36,955 12,775 14,047 8,400 7,754 SOFTER -8%12 55,000t UKC - US Gulf * 125.0 122.5 141 40,028 14,085 16,160 10,994 10,190 SOFTER -7%12 50,000t Caribs - USAC * 125.0 115.0 142 33,552 11,354 13,432 8,887 6,295 WEAKER!! -29%13 45,000t Med - UKC § 132.5 145.0 151 14,335 14,859 9,990 12,485 FIRMER 25%

Dirty Ave. Earnings * 36,845 12,738 14,546 9,427 8,080 WEAKER -14%

VLCC Spot Monthly Fixture Record VLCC Spot Market

Market Activity... Average No. Number Last This Week ...2008 2009 Jun '10 Jul '10 Aug '10 Sep '10 Oct '10 4 Wks

Fixtures: Gulf-West 24 19 19 26 26 15 27 18 DOWN BY... -33%Gulf-East/Japan 56 57 60 88 60 59 77 71 DOWN BY... -8%Gulf-Red Sea 0 0 0 0 0 0 0 0 #DIV/0! #DIV/0!Others 27 30 26 31 32 32 41 28 DOWN BY... -32%

Total Number of Fixtures 107 106 105 145 118 106 145 117 DOWN BY... -19%Vessels due to arrive in Gulf ~ 71 80 64 111 97 92 116 101 DOWN BY... -13%VLCC's Spot in Gulf ~ No. 4 9 9 5 11 8 19 8 DOWN BY... -58%

000 Dwt 1,009 2,459 2,601 1,436 3,096 2,212 5,596 2,261 DOWN BY... -60%~ As at the beginning of the month for historical data; for the next 4 weeks (vessels due) or this week (vessels spot) for current week's data.

Clarkson Research Services Page 3

Product Tanker Spot Earnings ($,000's/day) Product Tanker Highlights

26-Nov-10

5

10

15

20

25

30

35

40

45

Nov'08

Jan'09

Apr'09

Jun'09

Aug'09

Oct'09

Dec'09

Feb'10

Apr'10

Jun'10

Aug'10

Oct'10

DirtyClean - MRClean - Handy

• Clean Products After a busy week which saw a lot of activity, rates have not climbed as much as perhaps could have been expected. However, with tonnage lists continuing to tighten, spot rates may move further upwards next week. • Dirty Products Again, not much cargo was seen in the Cont “Handy” market this week. Rates dropped off slightly towards the end of the week due to the lack of action. Conversely, lots of cargo flooded out of the Black Sea and into the Med. “Handy” rates there peaked at WS 220 mid-week, but had eased back down to WS 210 by the end of the week. Med-UKC rates firmed to WS 145, meaning that earnings increased 25% w-o-w. There was an increase in activity for Panamaxes in the Med this week, but the Cont has been quiet. Rates accordingly softened. The tonnage list cleared towards the end of the week, and rates could rise next week if the tighter tonnage list places sufficient pressure on spot rates.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Large Bulk Carrier MarketBulkcarrier Spot Earnings ($,000's/Day)

Capesize Single $ Per Tonne Average Earnings $ Per Day Capesize Market

Voyage....... Nov 19 Nov 26 2010 2009 2010 Nov 19 Nov 26 This Week ...Iron Ore Trades

16 165,000 Tubarao/Rotterdam 14.25 13.75 13.84 43,914 33,674 34,456 31,896 SOFTER -7.4%16 165,000 Tubarao/Japan 18m 26.45 23.55 25.82 58,913 49,196 49,981 41,211 WEAKER -17.5%16 165,000 Tub/Beilun.Baoshan 27.30 24.25 26.72 58,087 49,587 50,379 41,588 WEAKER -17.4%16 165,000 Dampier/Rotterdam 16.25 14.90 14.97 22,090 16,217 19,059 14,582 WEAKER -23.5%16 165,000 Dampier/Japan 18m 9.75 9.00 9.75 40,887 30,845 29,227 24,282 WEAKER -16.9%16 165,000 Dampier/Beilun.Bao. 10.50 9.70 10.54 39,105 30,876 30,460 25,398 WEAKER -16.6%16 165,000 Saldanha/Beilun.Bao. 19.00 17.05 17.65 37,660 32,165 35,674 29,139 WEAKER -18.3%

Coal Trades16 150,000 Bolivar/Rotterdam 14.90 14.75 14.72 45,070 36,315 36,153 35,275 STEADY -2.4%16 150,000 Hay Pt./Rotterdam 19.00 19.00 18.01 19,570 11,999 13,063 12,916 STEADY -1.1%16 150,000 R.Bay/Rotterdam 13.00 12.35 12.42 18,715 11,847 12,632 10,395 WEAKER -17.7%16 150,000 Indonesia/Rotterdam 13.95 13.10 13.31 18,963 12,283 14,105 10,860 WEAKER -23.0%16 150,000 Hay Pt./Japan 17m 12.80 11.90 12.06 34,489 27,625 29,637 25,255 WEAKER -14.8%16 Ave. Earnings, 1999/00-built 39,064 31,454 33,253 28,974 WEAKER -12.9%17 Ave. Earnings, 1990/91-built 34,147 28,377 29,897 26,427 WEAKER -11.6%

Panamax Single $ Per Tonne Average Earnings $ Per Day Panamax Market

Voyage....... Nov 19 Nov 26 2010 2009 2010 Nov 19 Nov 26 This Week ...Coal Trades

18 70,000 H.Rds/ARA 13.25 16.25 17.95 21,072 26,422 14,439 21,560 FIRMER 49.3%18 70,000 USGulf/ARA 17.10 20.00 23.03 18,524 23,511 13,049 17,773 FIRMER 36.2%18 70,000 Bolivar/ARA 15.80 18.50 21.18 19,926 25,332 12,832 18,261 FIRMER 42.3%18 70,000 Newcastle/Cont 25.50 24.75 29.20 8,922 15,780 11,075 10,146 WEAKER -8.4%18 70,000 Richards B./Rott 15.90 15.00 18.13 10,635 14,124 9,886 7,980 WEAKER -19.3%18 70,000 Roberts Bank/Japan 18.00 17.75 20.90 17,035 24,689 18,465 17,907 SOFTER -3.0%18 70,000 Newcastle/Japan 17.75 17.50 21.25 16,555 24,864 17,426 16,871 SOFTER -3.2%18 55,000 Roberts Bank/Rott 26.50 25.75 29.51 9,201 15,137 10,953 9,988 WEAKER -8.8%18 70,000 Indonesia/Rotterdam 19.75 18.85 21.76 8,280 14,699 11,001 9,515 WEAKER -13.5%

Grain Trade (Supramax)19 49,000 USGulf/Japan(HSS)* 53.00 54.00 65.17 26,989 35,964 25,336 26,251 FIRM....... 3.6%18 Ave. Earnings, 1997/98-built 15,089 20,855 13,617 15,017 FIRMER 10.3%

19/20 Ave. Earnings, 1980's-built 13,176 18,409 11,309 12,742 FIRMER 12.7%

Clarkson Research Services Page 4 26-Nov-10

Bulkcarrier Highlights

2008

137,961105,639

139,51268,162

105,72098,80095,219

104,891

97,69983,264

2008

61,90663,53356,85092,802

45,22140,455

53,36746,25861,98234,94542,507

*This route replaces the Panamax grain routes, which are no longer reported and are not included in average earnings from start 2007 onwards."Average Earnings" are timecharter equivalents of spot freight rates, excluding waiting time off-hire etc., for standard routes/ships, for which see the "Sources & Methods" document on our website, "SIN 2005" (www.clarksons.net). Standard Ships are indicated by the figures on the left, e.g. Modern Capesize = Standard Ship no.13.

43,32339,673

34,60534,100

56,840

10

20

30

40

50

60

70

80

90

Nov'08

Jan'09

Apr'09

Jun'09

Aug'09

Oct'09

Dec'09

Feb'10

Apr'10

Jun'10

Aug'10

Oct'10

CapesizePanamaxHandymax

• Capesize: The Capesize market was buoyant during the first half of the week, with most activity focused in the Atlantic basin. However, as ballasters began to sail towards Brazil, rates softened, which precipitated a standoff between owners and charterers. The Pacific market was sluggish throughout the week, and rates fell accordingly. • Panamax: Whereas rates on most Atlantic routes improved markedly compared to last week, the opposite was generally the case in the Pacific. It looks as though the market could remain lopsided next week, with further gains expected in the Atlantic and rates remaining flat in the Pacific. • Handymax: After a steady tightening of tonnage in the Atlantic, fronthaul earnings leapt on Thursday. Meanwhile, there was far greater activity in the Pacific than last week but a large amount of prompt tonnage meant that earnings rose only moderately.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Tripcharter Market, Freight Futures, & Bunkers

Panamax Average Earnings $ Per Day Panamax Market

Tripcharter...* 2008 2009 2010 Oct 29 Nov 05 Nov 12 Nov 19 Nov 26 This Week ....Cont/Far East 63,005 29,096 36,786 27,500 26,500 27,500 25,000 28,000 FIRMER 12.0%TransPacific R/V 43,048 16,774 24,074 19,000 19,500 20,000 17,000 16,800 STEADY -1.2%Far East/Cont 35,673 9,305 15,414 12,000 12,250 12,500 12,000 10,000 WEAKER -16.7%TransAtlantic R/V 53,779 22,036 27,042 18,000 17,000 17,000 14,500 22,000 FIRMER 51.7%Average Panamax Earnings 48,876 19,298 25,829 19,125 18,813 19,250 17,125 19,200 FIRMER 12.1%Clarkson P'max Trip Index 494 195 261 193 190 195 173 194 FIRMER 12.1%*Rates are for a Panamax vessel based on the Baltic standard BPI vessel.

Handymax Average Earnings $ Per Day Handymax Market

Tripcharter…* 2008 2009 2010 Oct 29 Nov 05 Nov 12 Nov 19 Nov 26 This Week ....Cont/Far East 51,075 27,178 31,969 25,000 22,750 21,500 20,500 22,500 FIRMER 9.8%TransPacific R/V 35,904 13,588 20,143 17,250 16,250 14,750 11,750 12,500 FIRM....... 6.4%Far East/Cont 31,317 7,663 13,190 12,000 11,500 10,500 9,500 9,500 STEADY 0.0%TransAtlantic R/V 46,214 19,383 24,354 16,750 16,500 16,500 15,000 15,500 FIRM....... 3.3%Average Earnings 52,000 dwt 41,113 16,914 22,414 17,750 16,750 15,813 14,188 15,000 FIRM....... 5.7%Average Earnings 45,000 dwt 36,245 14,741 19,673 15,938 14,938 14,063 12,563 13,188 FIRM....... 5.0%Clarkson Handymax Index 497 204 271 215 202 191 171 181 FIRM....... 5.7%* 52,000 dwt "Supramax" unless stated

Baltic Freight Indices Baltic Panamax Index Trends

28-Oct 2465 4272 1768 270729-Oct 2410 4262 1750 267801-Nov 2371 4231 1730 264802-Nov 2313 4165 1705 260003-Nov 2288 4060 1680 254204-Nov 2287 4011 1655 251005-Nov 2304 3994 1628 249508-Nov 2322 3984 1597 248209-Nov 2361 3938 1580 246710-Nov 2437 3882 1552 245411-Nov 2432 3695 1532 236612-Nov 2365 3612 1516 231315-Nov 2294 3530 1495 2261

16-Nov 2216 3490 1474 2219 FFA Indications at close …..…… 25-Nov17-Nov 2122 3492 1457 218818-Nov 2063 3496 1431 2164 Index Nov-10 Q1-11 Cal-1119-Nov 2038 3526 1389 2155 BPI 1A TransAtlantic R/V, $/day 19,176 0 0 022-Nov 2061 3585 1369 2179 BPI 2A Skaw-Gib/Far East, $/day 26,875 25,625 28,000 023-Nov 2112 3593 1370 2199 BPI 3A TransPacific R/V, $/day 17,168 17,250 17,750 024-Nov 2194 3539 1392 2213 BCI 7 Bolivar/Rott $/ton 15.16 15.75 13.38 13.1325-Nov 2290 3381 1443 2200 BCI 4 R.Bay/Rott $/ton 12.80 12.75 11.50 11.50

Max Value 2465 4272 1768 2707 Cape TC Average $/day 32,607 36,750 25,250 24,375Min Value 2038 3381 1369 2155 P'max TC Average $/day 18,408 18,050 18,750 18,400Avg Value 2274 3797 1548 2383 S'max TC Average $/day 15,088 15,750 16,875 16,250

Regional Bunker MDO 380cst

Markets ..... Avg. To date Nov Nov Avg. To date Nov Nov This Week ....2009 2010 19 26 2009 2010 19 26

Rotterdam 490 658 718 707 353 447 463 469 HIGHER 1.3%Genoa - - - - 373 468 473 484 HIGHER 2.3%

Philadelphia 576 689 750 750 368 464 471 488 HIGHER 3.5%Houston 525 674 743 758 360 446 460 461 HIGHER 0.2%Cristobal 618 739 804 789 381 471 493 488 LOWER -0.9%

Los Angeles 564 714 785 771 375 464 490 500 HIGHER 2.0%Japan 557 709 745 753 409 515 535 538 HIGHER 0.6%

Singapore 517 655 724 705 371 461 480 484 HIGHER 0.8%Fujairah - - - - 372 465 478 492 HIGHER 3.0%

Bunkers are in $/t

Clarkson Research Services Page 5 26-Nov-10

Bunkers

(380cst)

BPI BCI BSI BDI

Basis Closing Mid Price

0

2,000

4,000

6,000

8,000

10,000

12,000

1 3 6 8 11 13 16 18 21 23 26 28 31 33 36 38 40 43 45 48 50

Week No.

200820092010

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Gas & Chemical Markets

2010 LPG Charter Rates, $'000/month

Market…. 2008 2009 Sep Oct 26 Nov Trends…Voyage Rates ($/mt) 44/46K mt Gulf/Jap* 41.91 21.72 34.31 37.70 48.50 FIRMER.. 29%T/C Equivalent, $/day 82,000m³ modern 22,916 5,991 17,096 19,858 31,562 FIRMER.. 59% 78,000m³ modern 22,230 5,836 16,480 19,135 30,247 FIRMER.. 58%12 mths T/C, $/day 82,000m³ modern 22,945 16,505 20,507 21,239 23,014 FIRMER.. 8% 78,000m³ modern 22,003 16,246 20,343 21,074 22,850 FIRMER.. 8% 59,000m³ modern 29,858 20,621 20,959 21,863 23,014 FIRM... 5% 57,000m³ 29,251 19,903 19,480 19,957 20,548 STEADY... 3% 35,000m³ 28,347 20,457 20,055 20,022 20,220 STEADY... 1% 24,000m³ 27,314 18,721 15,124 15,124 15,124 STEADY... 0% 22,000m³ Semi-Ref + 30,004 24,035 20,877 20,548 20,384 STEADY... -1% 15,000m³ Semi-Ref 23,207 18,465 15,781 15,551 15,452 STEADY... -1% 8,250m³ Ethylene 21,143 17,934 15,946 16,143 16,439 STEADY... 2% 3,500m³ Pressure (East) 7,957 6,557 7,233 7,233 7,233 STEADY... 0% 3,200m³ Semi-Ref 10,088 8,134 8,219 8,219 8,548 FIRM... 4%* 44K mt for 78K vessel/46K mt for 82K vessel.

Chemicals 2010 Chemical Freight Rates, $/mt

Markets…. 2008 2009 Sep Oct 26 Nov Trends…Voyage Rates ($/mt)10,000 Gulf/WCIndia 31.66 20.61 26.25 25.40 23.00 WEAKER. -9%15,000 Gulf/MPFE 63.23 37.06 49.25 47.40 42.00 WEAKER. -11%15,000 Gulf/Med 63.23 37.06 66.00 66.60 62.00 SOFTER... -7%5,000 Rott/Houston 45.61 35.32 32.00 32.20 32.00 STEADY... -1%10,000 Rott/Houston 40.40 28.75 27.00 27.40 27.00 STEADY... -1%1,000 ~ Rott/MPFE 97.88 101.90 95.00 95.00 96.00 STEADY... 1%2,000 ~ Rott/MPFE 88.92 93.95 83.00 83.00 86.00 FIRM... 4%3,000 Rott/MPFE 83.99 88.94 78.00 78.00 80.00 STEADY... 3%5,000 Rott/MPFE 80.87 80.64 72.50 73.00 74.00 STEADY... 1%2,000 ~ Houston/Rott 66.95 56.19 54.50 55.00 58.00 FIRM... 5%3,000 Houston/Rott 61.89 52.10 51.00 52.00 55.00 FIRM... 6%5,000 Houston/Rott 54.73 44.98 43.75 44.00 46.00 FIRM... 5%2,000 ~ Houston/MPFE 85.32 85.85 76.00 83.20 95.00 FIRMER.. 14%5,000 Houston/MPFE 67.85 60.35 46.00 53.20 70.00 FIRMER.. 32%10,000 Houston/MPFE 64.05 56.82 44.00 51.20 65.00 FIRMER.. 27%Easychems except for: ~ Stainless Steel. MPFE= Main Port Far East

Clarkson Research Services Page 6 26-Nov-10

LPG

Chem MarketAverage

Average LPG Market

35

45

55

65

75

85

95

105

Nov

-08

Jan-

09Fe

b-09

Apr

-09

May

-09

Jun-

09A

ug-0

9S

ep-0

9O

ct-0

9D

ec-0

9Ja

n-10

Mar

-10

Apr

-10

May

-10

Jul-1

0A

ug-1

0O

ct-1

0N

ov-1

0

Rott/Far E.

Houston/Far E.

basis 5,000mt Easychems

0

100

200

300

400

500

600

700

800

900

1,000

Nov

-08

Jan-

09Fe

b-09

Apr

-09

May

-09

Jun-

09A

ug-0

9S

ep-0

9O

ct-0

9D

ec-0

9Ja

n-10

Mar

-10

Apr

-10

May

-10

Jul-1

0A

ug-1

0O

ct-1

0N

ov-1

0

78,000m³,1 Yr t/c

78000m³ TCE, Gulf - Japan

• Spot cargo availability east of Suez has slowed a little this week - with a resultant slowdown in the level of spot freight enquiry. This has been affected to some extent by a typical pause while the market awaits Saudi Aramco’s CP announcement, which for December is expected early next week. • Some spot fixtures which had been fixed on subjects prior to the end

of last week were reported finalised and there will be a similar number carried over this weekend. In the West, there has been a parallel slowdown in activity giving rise to some concern by shipowners that the number of open ships in the region is set to rise, in particular because of the recent attractive product prices which have tempted Middle East shipments to the

West. Some owners have already addressed the potential imbalance, scheduling some of their ships to ballast back to the AG. Some of the recent positive developments have, however, been counter-balanced by the emergence of trader relets into the market for December. This perhaps explains the signs of weakness in the Baltic Index, which has fallen slightly.

• Chemical freight rates ex-Europe have been relatively stable this week, with no change on the westbound trans-atlantic trade, maintaining the steady rates which have persisted since late October. • On the trade to the Far East, how-ever, rates have been marked up by a dollar for the smaller easy chems and stainless tanks rates. Demand in Europe

has prevented the kind of strong firm-ing seen in Houston-Asia rates as a re-sult of strong Asian polymer prices. However, there has been some upward pressure on rates to justify higher benchmarks. • However, eastbound rates ex-Middle East Gulf have softened week-on-week. The hangover from Eid in terms of undersupply of cargoes has

seemingly persisted whilst prompt ton-nage has built up over the holidays. Al-though owners are trying to sound op-timistic, the available space makes it hard to see anything other than a softer outlook for the short term.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Liner & Offshore MarketsLiner Market Rates ($,000's/day) Liner Market News

Container / MPP / Average 2010 Liner Markets ....

Short Sea Markets 2006 2007 2008 2009 Aug Sep Oct Nov Trends…*Container Vessels ($/Day) Feedermax, 725 teu grd. 9,817 9,054 7,563 3,558 5,200 5,300 5,300 5,300 FIRM....... 6% Handy, 1,000 teu grd. 12,350 12,500 10,346 4,075 7,300 7,350 7,500 7,500 FIRM....... 5% Handy, 1,700 teu grd. 17,079 16,613 14,108 4,754 8,500 8,750 8,250 8,250 STEADY... 3% Sub-P'max, 2,000 teu g'less 18,392 19,696 16,313 5,054 10,000 10,100 9,800 9,800 FIRMER... 11% Sub-P'max, 2,750 teu g'less 22,646 26,292 21,958 5,638 14,000 14,000 13,000 13,000 STEADY... 1% Panamax, 3,500 teu g'less 26,583 29,958 26,125 6,575 18,250 19,000 16,500 16,500 STEADY... 0%MPP Tonnage ($/Day) 17,000 dwt, grd. 1 yr. t/c (liner) 12,083 14,792 17,792 9,412 10,500 10,500 10,250 10,250 STEADY... 2% 9,000 dwt, 1 yr. t/c (liner) 10,192 10,708 8,763 9,747 7,200 7,200 7,200 7,200 FIRM....... 7% European Short Sea 3,000dwt($/t) ECUK/ARAG - N.Spain 21.64 28.61 32.67 17.43 21.13 21.50 23.30 25.75 FIRMER... 11% French Bay - ECUK 13.03 16.07 18.05 12.57 12.81 12.81 15.00 17.50 FIRMER... 17% Lower Baltic - ARAG 15.97 22.53 28.80 16.32 17.13 17.81 19.30 21.50 FIRMER... 11% UK/ARAG - W.Med 32.19 37.00 44.85 26.75 30.63 31.44 33.80 37.00 FIRMER... 9% W.Med - UK/ARAG 25.86 29.69 37.08 22.94 22.88 23.31 25.05 26.75 FIRM....... 7%*3-mnth trend for Container/MPP; current month shows latest end month data. Change since previous month for Short Sea; see www.hcshipping.co.uk for market report.

Offshore Vessel Average 2010 Offshore Market …

Market 2006 2007 2008 2009 Aug Sep Oct 26 Nov This Month AHTS 7-12,000 Bhp 40,706 34,122 24,066 11,645 20,354 14,465 7,271 5,936 WEAKER... -18% AHTS 12,000+ Bhp 55,935 51,559 51,533 19,242 20,252 17,813 10,443 8,538 WEAKER... -18% PSV < 3,000 Dwt 22,170 21,601 15,535 6,095 16,021 15,042 7,972 5,750 WEAKER!!... -28% PSV > 3,000 Dwt 26,119 26,074 19,855 6,929 19,631 18,408 9,444 6,223 WEAKER!!... -34%Note: Rates are based on the averages of reported fixtures in the North Sea in £/day, supplied by One Offshore UK Ltd.

Offshore Fleet No. Vessels, end

& Orderbook…. 2007 2008 2009 Oct-10

Fleet:*Anchor Handling Tug/Supply 2,357 2,514 2,815 2,990PSV/Supply 1,821 1,944 2,071 2,125Crew/Workboat 886 940 988 1,005Other Types 2,758 2,848 2,927 2,975All Offshore Vessels 7,822 8,246 8,801 9,095

Orderbook:Anchor Handling Tug/Supply 712 699 483 320 PSV/Supply 335 309 202 193 Crew/Workboat 33 35 24 7 Other Types 237 242 183 144 All Offshore Vessels 1306 1277 890 664 The Offshore Fleet published above has been expanded as of 1st September 2010 to include all vessels >100 GT. This adds 2,300 smaller vessels to CRS's fleet coverage.

Clarkson Research Services Page 7 26-Nov-10

5

10

15

20

25

Nov

-06

Feb

-07

May

-07

Aug

-07

Nov

-07

Feb

-08

May

-08

Aug

-08

Nov

-08

Feb

-09

May

-09

Aug

-09

Nov

-09

Feb

-10

May

-10

Aug

-10

Nov

-10

1,700 teu FCC725 teu FCC1,000 teu FCC17,000 dwt MPP

AHTS Freight Rates

0

30

60

90

120

150

Dec

-06

Mar

-07

Jun-

07

Sep

-07

Dec

-07

Mar

-08

Jun-

08

Sep

-08

Dec

-08

Mar

-09

Jun-

09

Sep

-09

Dec

-09

Mar

-10

Jun-

10

Sep

-10

AHTS >12,000Bhp

£,000/day

3-week moving average

• Maersk Line is reported to be in talks to sign a deal for a series of containership vessels, rumoured to be of around 18,000 TEU, which would be the biggest boxship vessels in the world upon completion. It is reported that a LOI could be signed before the end of the year for the potential order. Negotiations are said to be taking place around the design of the vessels, which could be the first to be powered by LNG in a bid to make them more environmentally friendly. If such an order goes ahead, the ships are likely be due for delivery in 2012-14 and may come with an option for further vessels.

• Israeli container line Zim has reported a third quarter profit of US$37 million, compared to a loss of US$208 million in the same period last year. Better market conditions in general and internal restructuring are said to have contributed to the turnaround. Revenue in Q3 climbed 77% y-o-y, to US$1bn.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Secondhand Prices

Oil Tanker End Year, $m Three Month Asset Play in Focus

Prices… 2007 2008" 2009 Nov Trend…310,000 dwt d/h Resale 155.0 134.0 98.0 115.0 STEADY... 0%310,000 dwt d/h * 5 yrs 135.0 104.0 79.0 86.0 STEADY... -2%300,000 dwt d/h 10 yrs 110.0 74.0 59.0 60.0 STEADY... -3%265,000 dwt d/h' 15 yrs 39.0160,000 dwt d/h Resale 102.0 93.0 70.0 71.0 STEADY... -3%160,000 dwt d/h # 5 yrs 92.0 78.0 56.5 60.0 SOFTER... -3%150,000 dwt d/h 10 yrs 74.0 63.0 43.0 44.0 SOFTER... -4%105,000 dwt d/h Resale 80.0 64.0 53.0 59.0 STEADY... 1%105,000 dwt d/h 5 yrs 70.0 54.0 41.5 44.0 STEADY... 1%105,000 dwt d/h ^ 10 yrs 60.0 43.0 24.0 29.0 SOFTER... -3%95,000 dwt d/h 15 yrs 28.0 13.0 15.0 SOFTER... -4%73,000 dwt d/h ~ 5 yrs 60.5 49.0 35.0 38.0 STEADY... -2%70,000 dwt d/h § 10 yrs 50.5 39.0 22.0 28.0 STEADY... -2%65,000 dwt s/h 20 yrs 12.0 7.0 4.7 5.3 STEADY... 0%51,000 dwt d/h Resale 59.0 47.0 32.0 36.0 STEADY... -2%47,000 dwt d/h 5 yrs 52.0 37.0 23.0 26.0 STEADY... -3%45,000 dwt d/h 10 yrs 42.0 27.0 15.5 18.5 SOFTER... -4%45,000 dwt d/h 15 yrs 28.0 17.0 10.0 11.0 SOFTER... -6%37,000 dwt d/h 5 yrs 44.5 30.5 19.5 23.0 SOFTER... -5%35,000 dwt d/h 10 yrs 36.0 23.0 14.0 15.5 SOFTER... -5%5-y-o Tanker Index 266 197 133 148 STEADY... -3%12 month Change 7% -26% -32% 12% 0%Before Feb-10: *300k dwt '250k dwt #150k dwt ^95-97k dwt s/h ~70k dwt §65k dwt.

Bulkcarrier End Year, $m Three Month

Prices... 2007 2008" 2009 Nov Trend…170,000 dwt 5 yrs 150.0 45.0 55.0 55.5 STEADY... -2%170,000 dwt * 10 yrs 105.0 31.0 44.0 41.0 SOFTER... -3%150,000 dwt 15 yrs 88.0 22.0 27.5 23.0 SOFTER... -4%150,000 dwt 20 yrs 59.0 13.0 16.0 15.0 SOFTER... -6%76,000 dwt ^ 5 yrs 88.5 26.0 36.0 39.5 STEADY... 2%72,000 dwt 10 yrs 72.0 20.0 27.5 30.0 SOFTER... -5%69,000 dwt 15 yrs 61.0 12.5 21.5 23.5 STEADY... 2%69,000 dwt # 20 yrs 44.5 9.0 11.0 15.0 FIRMER... 13%56,000 dwt ~ 3 yrs 75.0 26.5 30.0 36.0 STEADY... 2%56,000 dwt ~ 5 yrs 75.0 24.5 27.0 33.0 STEADY... 2%45-48,000 dwt § 10 yrs 60.0 18.0 21.5 26.0 STEADY... 2%42-45,000 dwt 15 yrs 46.5 13.0 17.0 21.0 STEADY... -2%42-45,000 dwt 20 yrs 36.0 7.5 11.0 13.0 STEADY... -3%28-30,000 dwt 5 yrs 44.0 20.5 22.0 25.0 SOFTER... -4%28-30,000 dwt 10 yrs 40.0 16.0 17.0 21.5 SOFTER... -4%28-30,000 dwt 15 yrs 33.0 10.0 12.5 14.0 SOFTER... -6%27,000 dwt 20 yrs 26.0 5.0 8.0 10.0 SOFTER... -3%5-y-o Bulker Index 423 151 175 198 STEADY... -1%12 month Change 77% -64% 16% 15%Before Oct-08: *150k dwt. Before Jan-10: ^73k dwt #60k dwt ~52k dwt §42-45k dwt.

Container & End Year, $m Three Month Ro-Ro Prices 2007 2008" 2009 Nov Trend …3,500 teu 10 yrs 49.5 29.0 15.5 36.5 FIRM.... 8%1,700 teu 10 yrs 26.5 12.5 8.5 16.3 STEADY... 1%725 teu 10 yrs 14.0 9.8 5.5 8.5 FIRM.... 4%10-y-o Container Index 136.8 81.0 49.2 86.2 FIRM.... 5%Ro-Ro 2,500 lm* 10 yrs 25.0 24.0 22.5 22.5 STEADY... 0%Ro-Ro 1,250 lm* 10 yrs 15.5 14.5 10.8 10.5 STEADY... 0%*Ro-Ro prices in euros, historical data converted using historical exchange rates

Clarkson End Year, $m Three Month Index … 2007 2008" 2009 Nov Trend …ALL VESSELS 225 156 142 145 STEADY... -2%"End 2008 values subject to uncertainty. 3-month trend is the average of the last three months over the average of the previous three months.0 0 0 0 0 0 0 0 0Clarkson Research Services Page 8 26-Nov-10

Long Term Price Trends

50

100

150

200

250

300

350

400

450

500

550

Oct

'01

Oct

'02

Oct

'03

Oct

'04

Oct

'05

Oct

'06

Oct

'07

Oct

'08

Oct

'09

Oct

'10

Bulkers

Tankers

Index, Start 2000 = 100

Short Term Tanker Trends

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Oct

'07

Jan

'08

Apr

'08

Jul '

08

Oct

'08

Jan

'09

Apr

'09

Jul '

09

Oct

'09

Jan

'10

Apr

'10

Jul '

10

Oct

'10

% Year on Year

5-year-old Tanker Price Index

Percentage ChangeYear-On-Year

Short Term Bulk Trends

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Oct

'07

Jan

'08

Apr

'08

Jul

'08

Oct

'08

Jan

'09

Apr

'09

Jul

'09

Oct

'09

Jan

'10

Apr

'10

Jul

'10

Oct

'10

% Year on Year

5-year-old Bulker Price IndexPercentage

ChangeYear-On-Year

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Sale & Purchase Market

Tanker Y-t-d Oct

Sales* .... 2009 2010 2010

Type: VLCC 26 48 6Suezmax 14 20Aframax 23 33 3Handy/Pmax 83 146 16

Total No. Sales 146 247 25Total DWT (,000) 14,558 26,317 2,796Total Value ($ m) 3,391 6,553 556Revised: Suezmax = 120-200k dwt, Aframax = 80-120k dwt

Bulker Y-t-d Oct

Sales* .... 2009 2010 2010

Type: Capesize 48 48 4Panamax 129 100 14Handymax 153 120 7Handysize 245 176 22

Total No. Sales 575 444 47Total DWT (,000) 31,578 26,796 2,741Total Value ($ m) 8,594 9,665 986

Other Y-t-d Oct

Sales .... 2009 2010 2010

Total No. Sales 494 493 30Total dwt (,000s) 5,211 7,653 553Total Value ($ m) 3,116 4,920 300

Total Y-t-d Oct

Sales ..... 2009 2010 2010

Buyers: Greece 219 183 21Norway 28 52 8Germany 14 17 1China P.R. 214 132 10UK 33 24 3South Korea 30 32 2

Total No. Sales 1,215 1,184 102Total Dwt (,000) 51,346 60,766 6,090Total Value ($m.) 15,101 21,139 1,842Average $/Dwt 294 348 302* Includes vessels over 10,000 dwt only. Sales of bulk vessels under 10,000 dwt and of non-bulk vessels are included in "Other Sales".

Clarkson Research Services i 26-Nov-10

ALL DATA AND INFORMATION IN THIS REPORT ARE AS REPORTED UP TO NOON ON THE DATE OF PUBLICATION

Sales Volumes & Values

0500

1,0001,500

2,0002,5003,0003,5004,0004,5005,000

5,5006,0006,5007,000

Nov

-05

Mar

-06

Jul-0

6N

ov-0

6M

ar-0

7Ju

l-07

Nov

-07

Mar

-08

Jul-0

8N

ov-0

8M

ar-0

9Ju

l-09

Nov

-09

Mar

-10

Jul-1

0

$m.

0

20

40

60

80

100

120

140

160

180

200

220No.

Volume

Value

Tankers:

Clients of Euronav continued their ongoing fleet renewal programme by selling the “PACIFIC LAGOON” (305,839 dwt, built 1999 Mitsubishi H.I.), to Grand China for $54.75m on the basis of a charter free delivery in Q1 2011. This is the second vessel Grand China has purchased from these owners. In February, they acquired the ex-“NAMUR” (298,552 dwt, built 2000 Hitachi Zosen), for $58.5m. Euronav have been fairly active in the disposal of their older VL tonnage this year. In August, they sold the ex- “TI CREATION” (298,324 dwt, built 1998 Daewoo), for $55.5m to clients of Andros Maritime.

SLS Shipbuilding has sold an MR tanker (49,700 dwt, non-IMO pump room design), on the basis of a charter free delivery from the yard in January 2011. The buyers are rumoured to be Egyptian Tanker Company, who are purchasing the vessel for a price in the region of $38.5m. If this is correct then it represents a very firm price, especially as there are comparable units currently available at more competitive price levels.

Dry Cargo:

The biggest talking point of this week has been within the Post-Panamax/Kamsarmax sector where there have been several interesting sales. Firstly, Italian owners Setsea S.P.A. have sold the “BENEDETTA D'AMATO” (92,500 dwt, built 2010 Jiangsu New Yangzijiang) for $46m to clients of Mercator with timecharter attached (to commence on delivery) at $21,400/day for a minimum of 83 and a maximum of 86 months. Elsewhere, clients of Clemko are rumoured to have sold the first of their four Kamsarmaxes at Hyundai Mipo, for delivery in September 2011, for $42m to Greek owners, although we understand there are some outstanding subjects. In terms of 1990s built tonnage, clients of Oceanfreight have sold both of the Italian built Panamaxes, “TRENTON” and “AUSTIN” (75,264 dwt, built 1995 Fincantieri) for $22m each.

In the Handymax sector, Japanese owners have sold the “SILKY OCEAN” (45,665 dwt, built 1995 Tsuneishi Zosen, C4x25T) to Greek interests for a firm $21.6m. The other sale within this sector is that of the Taiwanese controlled “NEW ETERNITY” (45,741 dwt, built 1994 Hashihama Zosen, C4x25T) which has been sold for slightly in excess of $20m. The two 1990s built Handysize vessels sold this week have both come from Japanese owners. Firstly, Taiwanese buyers have purchased the “GLOBAL DIAMOND” (24,834 dwt, built 1997 Kanasashi K.K., C4x30T) for $13.5m with 4+1 years timecharter attached at $10,000/day. Elsewhere, the “SANTA CHRISTINA” (25,378 dwt, built 1996 Imabari S.B., C4x30T) has been sold for $13m.

With regards to over-aged tonnage, clients of HOSCO have sold the Capesize “HEBEI WISDOM” (182,212 dwt, built 1986 Hitachi Zosen) for $14m and, lastly, the “VOYAGER” (33,347 dwt, built 1985 Kanda Zosensho, C4x25T) has been sold for $8.5m with 2 year timecharter attached at $13,500/day.

Baltic Sale & Purchase Assessments (weekly) (Based on max. 5-year old vessels, as published by the Baltic Exchange) As of the 22nd November 2010. VLCC (305,000 DWT): $87.778m Aframax (105,000 DWT): $44.387m MR Product tanker (45,000 DWT): $26.406m Capesize (172,000 DWT): $55.175m Panamax (74,000 DWT): $38.920m Super Handy (52,000 DWT): $32.536m Note: H. Clarkson brokers did not contribute to the above Baltic Sale & Purchase Assessment rates.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Recent Ship Sales by Vessel Type

Vessel Type Vessel name Dwt/Unit Blt. Yard Date Price $m. BuyersTanker D/Hull N/B RESALE HULL 496 49,700 2010 SLS Shipbuilding 25-Nov region 38.5 Clients of Egyptian Tanker Co

Tanker D/Hull Pacific Lagoon 305,839 1999 Mitsubishi H.I. 22-Nov 54.75 Clients of Grand ChinaTanker S/Hull Gemini Star* 301,862 1995 Odense Lindo 15-Nov for conversion 27 Clients of OGX Petroleum & Gas

Tanker S/Hull Suhail Star* 301,862 1994 Odense Lindo 15-Nov for conversion 27 Clients of OGX Petroleum & Gas

Tanker D/Hull Forth Bridge 5,800 1992 Cochrane S.B. 08-Nov 2 Undisclosed interestsTankChem IMO II/III Southern Orchis 8,336 1999 Asakawa S.B. 23-Nov 8.5 South Korean interestsTankChem IMO II Golden Emerald 6,436 2008 Zhenjiang Sopo 23-Nov at auction 6 Greek interestsTankChem IMO II/III Golden Kaori 9,224 1998 Higaki Zosen 09-Nov 5.5 Undisclosed interestsTankChem IMO II Trans Sund* 4,794 1991 Aarhus Flydedok 08-Nov 11 Clients of GazpromTankChem IMO II Trans Vik* 4,750 1991 Aarhus Flydedok 08-Nov # Clients of GazpromOffshore AHTS Temasek Sepinggan 1,200 2002 Pan United 19-Nov 10 Clients of PT Bahtera Nusantara

Offshore AHTS Redfish 1 8,000 2010 Yuexin S.B. 15-Nov 22 Malaysian interestsOffshore Support Noordhoek Singapore 2,078 1977 Schpsw. De Waal 10-Nov undisclosed Clients of Euroflow Designs

Gas C'rier 83,000 cu.m Thetis Glory* 54,789 2008 Daewoo 26-Nov cash+50%avance Clients of Avance GasGas C'rier 83,000 cu.m Venus Glory* 54,474 2008 Daewoo 26-Nov cash+50%avance Clients of Avance GasGas C'rier 83,000 cu.m Iris Glory* 54,707 2008 Daewoo 26-Nov cash+50%avance Clients of Avance GasGas C'rier 4,005 cu.m Kinna 3,231 1989 Hanjin H.I. 22-Nov 3.2 Clients of Lucky MarineGas C'rier 3,200 cu.m Oriental Sky 2,924 1995 Shitanoe Zosen 22-Nov ss/dd overdue 5.2 Korean interestsGas C'rier 82,513 cu.m Joyama 49,999 1986 Mitsubishi H.I. 11-Nov 10 Clients of NaftomarGas C'rier 75,203 cu.m Noto Gloria 49,412 1992 Kawasaki S.B. 10-Nov 15 Clients of Siam GasGas C'rier 3,500 cu.m Lady Barbara 3,983 1990 Kyokuyo S.Y. 10-Nov 3.3 Undisclosed interestsGas C'rier 78,476 cu.m Sunway 48,980 1991 Mitsubishi H.I. 05-Nov 14 Clients of PetredecDry MPP 430 teu. CIC Belem* 6,273 1992 Kyokuyo S.Y. 19-Nov 6 Clients of Allcargo Logistics

Dry MPP 430 teu. Artne* 6,262 1992 Kyokuyo S.Y. 19-Nov # Clients of Allcargo Logistics

Dry MPP 366 teu. Sirocco 5,196 1998 Jiangzhou S/Y 12-Nov 2.7 Undisclosed interestsDry Genl 2x35t cr. Lehmann Forester 8,620 2008 Fujian New Shenghai 25-Nov at auction EUR3 Clients of Great Option Investment

Dry Genl Gearless Adriane 1,307 1970 Bayerische 23-Nov undisclosed Clients of Island Flag Shipping

Dry Genl Gearless Nortic 1,200 1969 Frederikshavn 23-Nov undisclosed Undisclosed interestsDry Genl 2x5t dr. Katrine Krog 1,170 1969 Frederikshavn 23-Nov undisclosed Carribbean based interestsDry Genl 1x60t cr. Sunroad Tsuwano 9,640 2005 Miyoshi Zosen 17-Nov undisclosed Undisclosed interestsDry Genl 2x15t cr. Yasemin 6,830 1996 Sasebo H.I. 15-Nov undisclosed Undisclosed interestsDry Genl 2x20t dr. Amsterdam 6,726 1985 Halla Eng. 08-Nov undisclosed Greek interestsContainer 2,800 teu. Positano 38,000 2011 Nordic Yards Wismar 24-Nov 39.9 Clients of Hammonia Reederei

Container 450 teu. Xin Hai Yuan 8,616 1984 Shin Kurushima 18-Nov 1.8 Malaysian interestsContainer 1,129 teu. Oriental Bright 16,500 1996 Imabari S.B. 18-Nov undisclosed Undisclosed interestsContainer 1,576 teu. Harmony 21,480 1994 Hanjin H.I. 16-Nov 7 11 South American interestsContainer 1,728 teu. Nordstar 22,900 1998 Stocz. Szczecin 15-Nov dely JAN/APR11 14.5 Undisclosed interestsContainer 566 teu. Vsico Promote 8,515 1999 Murakami Hide 09-Nov high 7 Clients of SinokorContainer 927 teu. Siam 1 15,628 1996 Iwagi Zosen 05-Nov 8 Far Eastern interestsContainer 3,456 teu. Clifton Bridge 47,539 1988 Kawasaki H.I. 05-Nov dely APR/2011 8.1 Clients of GoldenportBulk Str. Hvy. Silky Ocean 45,665 1995 Tsuneishi Zosen 26-Nov 21.6 Greek interestsBulk 4x25t cr. New Eternity 45,741 1994 Hashihama Zosen 26-Nov slightly excess 20 Undisclosed interestsBulk 4x30t cr. Santa Christina 25,378 1996 Imabari S.B. 26-Nov high 13 Undisclosed interestsBulk Str. Hvy. Benedetta D'Amato 92,500 2010 Jiangsu New YZJ 26-Nov 83-86mthTC@$21k 46 Clients of MercatorBulk Str. Hvy. Austin* 75,264 1995 Fincantieri 24-Nov low 22 Undisclosed interestsBulk Str. Hvy. Trenton* 75,265 1995 Fincantieri 24-Nov low 22 Undisclosed interestsBulk 4x25t cr. Voyager 33,347 1985 Kanda Zosensho 24-Nov 2yrsTC@$13.5k 8.5 Greek interestsBulk Str. Hvy. Hebei Wisdom 182,212 1986 Hitachi Zosen 24-Nov 14 Undisclosed interestsBulk Str. Hvy. N/B RESALE HULL 81,920 2011 Hyundai Mipo 22-Nov 42 Greek interestsBulk 4x30t cr. Global Diamond 24,834 1997 Kanasashi K.K. 22-Nov 4+1 yrsTCB@$10k 13.5 Taiwanese interestsBulk Str. Hvy. Songa Peak 151,148 1990 NKK Corp. 18-Nov excess 20 Undisclosed interestsBulk Str. Hvy. Chane Navigator 54,347 2010 Jiangsu Qinfeng 18-Nov 30 Chinese interestsBulk 4x35t cr. N/B RESALE HULL ZH1019* 57,000 2010 Zhejiang Zhenghe SB 17-Nov 10yrsTC@$16.5k 61 Clients of Ship FinanceBulk 3x14t cr. N/B RESALE HULL ZH1020* 57,000 2010 Zhejiang Zhenghe SB 17-Nov 10yrsTC@$16.5k # Clients of Ship FinanceBulk 4x30t cr. ID Harmony 23,712 1995 Kanasashi K.K. 17-Nov 14.5 Undisclosed interestsBulk 5x25t cr Agios Minas 29,002 1981 Hakodate Dock 16-Nov 4.1 Chinese interestsBulk 5x25t cr. Feroi 37,092 1983 Shin Kurushima 16-Nov 6.3 Far Eastern interestsBulk Str. Hvy. Energy Trade 77,679 1998 Mitsui SB 15-Nov excess 24 Undisclosed interestsBulk Str. Hvy. Blue Annapurna 180,000 2010 Daehan S.B. 15-Nov 63-64 Greek interestsBulk 4x30t cr. Orient Saori 30,835 1997 Minami Nippon 10-Nov 19.5 Undisclosed interestsBulk Str. Ore. Golden Shadow 73,500 1997 Sumitomo H.I. 09-Nov 26.7 Clients of NordsulBulk 4x30t cr. Nord Brave 53,529 2007 Iwagi Zosen 09-Nov 36.5-37 Clients of VinalinesBulk Str. Hvy. PB Eagle 97,119 1992 Imabari S.B. 09-Nov 18.5 Greek interests

* En bloc Sales. #En Bloc price shown under first ship of bloc.

Clarkson Research Services ii 26-Nov-10

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Bulk Fleet Changes

Bulk Fleet Oil Tanker Fleet Bulk Carrier Fleet Combo Fleet

Changes... 2009 2010 to date 2009 2010 to date 2009 2010 to date

(No. Vessels ,000dwt) No. Dwt No. Dwt No. Dwt No. Dwt No. Dwt No. Dwt

Fleet 1st January 4,921 406,916 5,288 436,002 6,976 418,010 7,312 459,506 81 7,847 70 7,072

Changes: Deliveries 573 48,054 415 38,535 531 42,505 842 68,479 5 1,599Sold For Scrap 130 8,363 187 11,639 246 9,986 103 5,004 10 722Losses 1 94 6 232 4 315Misc. Additions 41 1,679 16 864 104 10,880 57 4,573 1 76Misc. Removals 116 12,189 78 12,739 47 1,671 49 1,573 2 130

Net Change During Year 367 29,086 166 15,021 336 41,496 743 66,160 -11 -775 5 1,599

Fleet End Yr/ Yr to Date 5,288 436,002 5,454 451,023 7,312 459,506 8,055 525,665 70 7,072 75 8,671 Vessels over 10,000 dwt only are included in the analysis in this table. Great Lakes Only vessels are excluded.

Deliveries & Other Additions..Type Date Vessel Name Flag Year Dwt Owner Shipyard & Yard No. Contracted

Built PriceBulk Nov'10 Lan Hai Fen Jin PRC 2010 57,000 Guangdong Lanhai Xiamen S.B. $m 28.50Bulk Nov'10 Orchard Bulker SG. 2010 32,500 Lauritzen Bulkers Jiangmen Nanyang 117MPP/Hvy. Lift Nov'10 Hyundai Phoenix AT. 2010 10,128 Harren & Partner Kouan S.B. $m 45.00Bulk Nov'10 Yue Dian 83 H.K. 2010 87,000 Guangdong Yuedian Hudong Zhonghua H1550AGCargo Nov'10 BBC Magellan AT. 2010 6,264 Briese-Schiffahrts Dalian Fishing 2008-1203Tanker Nov'10 S.Leader PA. 2010 4,800 Nissho Odyssey Miyoshi Zosen 405Bulk Nov'10 Mercurius CY. 2010 34,538 Frangoulis S/Mngt. SPP Shipbuilding H4056Bulk Nov'10 Percival CY. 2010 176,000 Intership Nav. Co. New Times S.B. 0117637 $m 90.00Chem & Oil Nov'10 Wilutama H.K. 2010 26,198 Berlian Laju Tanker Shin Kurushima 5710Bulk Nov'10 Anna Meta LI. 2010 54,619 Blumenthal, Johann Mitsui SB 1790Bulk Nov'10 Orient Accord MA. 2010 33,500 Interorient Nav. Co. Weihai Samjin 1017 $m 35.00Chem & Oil Nov'10 Shanxin PRC 2010 6,575 CSIC-IMC Shipping Chongqing Chuandong HT0106

Chem & Oil Nov'10 Shanren PRC 2010 6,575 CSIC-IMC Shipping Chongqing Chuandong HT0105Bulk Nov'10 Crystal Tiger PA. 2010 180,000 Mitsui O.S.K. Lines Imabari S.B. 8091PCC Nov'10 CSAV Rio Bueno LI. 2010 11,315 F. Laeisz Lujiashi Zhoushan 2076PCC Nov'10 CSAV Rio Blanco LI. 2010 11,369 F. Laeisz Lujiashi Zhoushan 2075

Bulk Nov'10 Sea Master BM. 1985 23,743 Uniteam Marine Ltd. Misc.Add.Prev.Demo.Open Hatch Nov'10 Thor Champion TH. 1982 25,150 Thoresen Thai Agen. Misc.Add.Prev.Demo.Chem & Oil Nov'10 Topaz TU. 2009 2,655 Kaman Denizcilik Pet Misc.Add.Prev.DelyChem & Oil Nov'10 Violet MA. 2008 7,080 Chemmariner Shpg. Misc.Add.Prev.DelyChem & Oil Nov'10 Malou Theresa MA. 2008 7,842 Tank. Herning A/S Misc.Add.Prev.DelyRoPax Nov'10 Asakaze 21 JA. 2009 1,233 Kita Nippon Kaiun Misc.Add.Prev.Excld.

Scrapping & Other Removals..Type Date Vessel Name Flag Year Dwt Owner Breakers Ldt Price

Built $/ldt $m.MPP Nov'10 Mikue CS. 1980 7,906 Glomar Supplies Ltd India 2,458MPP Nov'10 Eastern Sea MA. 1984 12,665 Alunited Maritime BangladeshGCargo Nov'10 Southern Arrow CB. 1984 6,549 Pamela Corp. P.R.C. 2,014 385.0 0.78PCC Nov'10 Astro Venus PA. 1982 12,464 Kambara Kisen India 9,508 450.0 4.28Ro-Ro Nov'10 Fu Han Kou PA. 1986 9,300 NYKCOS Car Car. P.R.C.GC Liner Nov'10 Bolan PK. 1980 18,144 Pakistan Nat. Shpg. Pakistan 5,635 448.0 2.52L.P.G. Nov'10 Berge Racine NIS 1985 63,296 BW Gas India 21,978 460.0 10.11Chem & Oil Nov'10 Bow Panther SG. 1986 39,422 Odfjell ASA India 9,689 478.0 4.63Bulk Nov'10 Maha Vidya IN. 1977 27,451 Five Stars Shpg. Pakistan 6,861 455.0 3.12Chem & Oil Nov'10 Ustica PA. 1986 24,225 Gabes Marine Tankers IndiaTanker Nov'10 Ocean Power SG. 1983 127,778 Ocean Tankers Pte Bangladesh 470.0Harbour Tug Nov'10 Mermaid Warrior AU. 1969 Mermaid Marine GroupGravel/Stone Nov'10 Pieter NE. 1965 802 Van OordReefer Nov'10 Storm Bay SG. 1983 11,720 Oceanlink Management India 6,384GCargo Nov'10 Asrar-a-Mostafa BA. 1978 7,200 AK Ship Mngt. & Serv BangladeshBulk Nov'10 Our River CS. 1983 75,105 Holyman Ltd. Bangladesh

Bunkering Nov'10 W-O Budmo M.I. 2006 7,654 W-O Shipping Group Misc.RemGC Liner Nov'10 Bien Dong 02 VN. 1960 10,395 Vinaship LossBulk Nov'10 Jianmao 9 PA. 1976 34,456 Jian Mao Intl. Shg. LossGCargo Nov'10 Guang Ming PRC 1965 14,987 Guangdong Sun Misc.Rem.Prev.Demol.Bulk Nov'10 Fubo PA. 1974 27,709 China Shpg. (Hainan) Misc.Rem.Prev.Demol.Bulk Nov'10 Huai Hai PRC 1962 26,754 China Ocean (COSCO) Misc.Rem

Clarkson Research Services iii 26-Nov-10

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Timecharter Fixture Record

Latest Tanker Timecharter Fixtures...Reported Charterer Vessel Name D / Year Dwt Spd Cons. Period Rate Delivery

C Built $ per Day Date Place24-Nov Vitol Futura C 2006 40,000 12 Mths $ 11,000 Nov 10 Caribs24-Nov Repsol SKS Sira D 2002 159,435 16 74 2 Yrs $ 22,500 + P/S Dec 1023-Nov Stena Alhani D 2007 113,000 15 50 6 Mths $ 22,000 + P/S Nov 1019-Nov Stena Samraa Alkhaleej D 2006 114,000 6 Mths $ 22,000 + P/S19-Nov Stena Alhani D 2007 113,000 6 Mths $ 22,000 + P/S15-Nov Shell Ocean Lady D 2002 105,000 15 44 12 Mths $ 17,90015-Nov Shell True. D 2010 115,917 15 49 12 Mths $ 18,00015-Nov TTMI United Ambassador D 2007 73,000 15 12 Mths $ 15,35008-Nov Shell Genmar Concord 2004 47,000 2 Yrs $ 10k/12k/14k/16k per 6 Mths

08-Nov Shell Stena Concert 2004 47,000 2 Yrs $ 10k/12k/14k/16k per 6 Mths

08-Nov Shell Stena Contest 2005 47,000 2 Yrs $ 10k/12k/14k/16k per 6 Mths

08-Nov Shell Stena Consul 2004 47,000 2 Yrs $ 10k/12k/14k/16k per 6 Mths

04-Nov Cosco Yiangos D 2010 296,000 5 Yrs $ 36,500 + P/S04-Nov Cosco Kaliope D 2010 296,000 5 Yrs $ 36,000 + P/S02-Nov Hanjin Shpg Arion D 2001 308,459 15 12 Mths $ 28,750 Nov 1001-Nov BP Eships Falcon C 2010 51,000 6 Mths01-Nov Oman Shipping Pyxis Delta C 2010 51,000 27 Mths $ 14,50001-Nov Norden Formosa 14 C 2005 46,000 3 Yrs $ 14,00001-Nov Emarat Uacc Consensus C 2005 46,000 12 Mths Sub $ 14,00001-Nov BP Atlantas D 2010 320,000 16 105 12 Mths Nov 1001-Nov Trafigura Saham C 3 Mths $ 32,000 Nov 1027-Oct Petrobras TI Oceana D 2003 441,585 17 145 6 Mths $ 37,500 Nov 1025-Oct AET Blue Topaz D 2010 5 Yrs $34,000 + p/s yrs 3-5

25-Oct Scorpio Hellespont Progress C 2006 73,727 2 yrs $16,50025-Oct Scorpio Hellespont Prosperity C 2006 73,715 2 yrs $16,50015-Oct Scorpio Marcela Lady C 2007 46,000 14 33 6 Mths/6 Mths $ 12,000 Oct 1014-Oct BP Kazdanga D 2005 37,312 16 67 2 Yrs $ 25,000 + P/S Oct 1014-Oct BP Eurochampion 2004 D 2007 164,608 15 2 Yrs/1 Yrs $ 25,000 Oct 10

Latest Dry Bulk Timecharter Fixtures...Reported Charterer Vessel Name Year Dwt Spd Cons. Period Rate Delivery

Built $ per Day Date Place25-Nov Korean Chtrs Equinox Voyager 2002 50,832 3-5 Months $16,000 Prompt Dalian24-Nov GMI Goldeneye 2001 52,285 12 Months $17,000 25Nov-05Dec Toyama24-Nov Noble Georgios S 2001 74,242 3 Months $19,500 27Nov-30Nov Cape Passero24-Nov Rio Tinto F. D. Jacques Graubart 2007 76,588 3-5 Months $19,750 26Nov-30Nov Kaohsiung24-Nov Oldendorff Micaela Della Gatta 2006 82,790 5-7 Months $19,500 Prompt Bayuquan23-Nov Cargill Galini 2005 56,015 4-6 Months $15,400 03Dec-05Dec South Korea22-Nov Norden Marina 2000 75,122 4-6 Months $19,250 21Nov-23Nov Dalian22-Nov Minmetal Aliki 2005 180,235 59-61 Months $26,500 01Mar-31Mar Far East22-Nov Minmetal Ocean Qingdao 2010 76,000 5 Years $18,900 01Jun Jiangnan19-Nov Swiss Marine Grain Harvester 2004 76,417 3-5 Months $20,000 21Nov-23Nov Taichung19-Nov Cargill Ocean Freedom 2010 55,000 4-6 Months $15,500 25Nov Japan19-Nov Cargill Marylaki 2010 58,470 3-5 Months $15,250 25Nov Far East19-Nov Transgrain Megalohari 2004 76,633 3-5 Months $19,250 19Dec-25Dec China19-Nov Classic Maritime Giant Ace 2009 179,147 3-6 Months $30,000 05Dec-07Dec China18-Nov Vitol Navios Star 2002 76,662 2 Years $18,000 01Dec-01Jan Far East18-Nov Transgrain Mary Gorgias 2008 75,204 3-5 Months $19,750 Prompt Krishnapatnam17-Nov Swiss Marine Brilliance 1990 149,349 4-6 Months $24,000 22Nov-25Nov Beilun16-Nov Swiss Marine Aeolian Glory 1995 157,991 14-16 Months $24,500 Prompt Zhoushan15-Nov TA Bulk Maple Pioneer 2008 32,500 3-5 Months $14,000 18Nov-21Nov Falmouth15-Nov Cargill Pollux 2007 32,017 3-5 Months $14,000 20Nov-22Nov Rotterdam11-Nov CNR Osprey I 2002 50,206 12 Months $18,500 01Nov East Med11-Nov Swiss Marine Nyon 1999 73,035 18-20 Months $20,000 01Apr World Wide11-Nov Swiss Marine Libertas 2007 74,930 11-13 Months $20,000 17Nov-20Nov Singapore11-Nov GMI Ocean Lily 2006 76,585 4-6 Months $21,500 15Nov China11-Nov GMI Navios Titan 2005 82,936 23-25 Months $20,000 23Nov-25Nov Jintang10-Nov Dreyfus Amoy Dream 2010 57,000 3-5 Months $20,000 15Nov Algeria10-Nov Sinochart Golden Heiwa 2007 76,662 4-6 Months $23,000 Prompt Bayuquan

Clarkson Research Services iv 26-Nov-10

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

The Timecharter Market Tanker Timecharter Market 1 Year T/C... Average Rate $/day To Date Nov T/C Activity & The Freight Market

2007 2008 2009 2010 26 VLCC (early 2000s)310,000 Dwt Modern 55,548 73,413 39,577 38,688 31,000150,000 Dwt Modern 44,452 47,192 30,577 28,615 26,000110,000 Dwt Modern 33,144 35,793 20,077 18,766 18,00074,000 Dwt Modern 29,317 29,221 19,375 16,745 16,00047-48,000 Dwt Modern 25,904 23,481 15,231 13,177 13,00037,000 Dwt Modern 23,269 21,952 13,702 11,479 12,000285,000 Dwt Early '90s* 68,519 35,163 32,313 26,000145,000 Dwt Early '90s* 42,260 27,192 23,354 21,00097,000 Dwt Early '90s* 32,692 17,827 15,635 15,000

3 Year T/C... Average Rate $/day To Date Nov2007 2008 2009 2010 26

310,000 Dwt Modern 48,385 58,644 37,538 38,490 36,500150,000 Dwt Modern 38,577 40,923 29,106 27,427 27,000110,000 Dwt Modern 29,625 30,500 20,678 20,057 20,00074,000 Dwt Modern 26,913 26,486 19,957 17,469 17,75047-48,000 Dwt Modern 23,288 22,322 15,870 14,115 14,75037,000 Dwt Modern 21,317 20,385 13,904 11,656 13,000

T/C Activity… To Date

...over 1 year 2006 2007 2008 2009 2010

VLCC 200,000 + 29 22 14 29 27Suezmax 120-200,000 22 16 27 12 16Aframax 80-120,000 40 34 53 31 46Panamax 60-80,000 16 11 9 7 18Handy 10-60,000 68 68 53 31 38Total No. Fixtures 175 151 156 110 145

Total in m. dwt 20.1 16.3 17.0 15.8 18.5Modern is taken to mean no more than 10 years old. * All tanker timecharter rates are now for Double Hulls. Data from start 2008 are available at www.clarksons.net

Bulk Carrier Timecharter Market 1 Year T/C... Average Rate $/day To Date Nov T/C Activity & The Freight Market

2007 2008 2009 2010 26 Capesize (Modern)Capesize Modern 106,918 111,529 33,276 33,698 30,000Panamax Modern 52,317 55,637 18,151 25,229 20,625Supramax Modern 45,702 45,510 14,678 21,315 17,250Handymax Modern 39,870 38,673 12,827 18,701 15,000Handysize Modern 28,120 29,486 10,678 15,908 13,250Capesize "CSBC" 90,327 89,582 27,152 26,792 23,000Capesize * 1980s 45,135Panamax 1980s 40,926 44,697 10,634 15,586 14,250

3 Year T/C... Average Rate $/day To Date Nov2007 2008 2009 2010 26

Capesize Modern 75,808 82,260 27,721 29,302 27,000Panamax Modern 39,774 44,356 15,531 19,828 18,250Supramax Modern 33,750 33,788 13,556 17,474 16,000Handysize Modern 21,863 21,837 10,609 14,052 13,000Capesize "CSBC" 63,077 70,053 21,452 22,208 21,000Panamax 1980s 28,168 28,837 6,904 10,000 8,000

T/C Activity… To Date

...over 1 year 2006 2007 2008 2009 2010

Capesize 100,000 + 111 144 91 53 38Panamax 60-100,000 183 282 188 146 137Handymax 40-60,000 74 110 66 68 60Handysize 10-40,000 9 8 8 2 11Total No. Fixtures 377 544 353 269 246Total in m. dwt 36.1 51.4 33.5 23.7 20.6Tanker and bulk carrier T/C activity size ranges reflect existing CRSL ship type definitions.

Modern is taken to mean no more than 10 years old. *Vessel no longer reported due to lack of liquidity.

Clarkson Research Services Page 9 26-Nov-10

Total Fixtures

Total Fixtures

0

1

2

3

4

5

6

7

8

Oct

-08

Dec

-08

Feb-

09

Apr

-09

Jun-

09

Aug

-09

Oct

-09

Dec

-09

Feb-

10

Apr

-10

Jun-

10

Aug

-10

Oct

-10

0

15

30

45

60

75

90

105

120

1 Year t/cSpot $/day

No. fixtures $,000/day

0

2

4

6

8

10

12

14

16

Oct

-08

Dec

-08

Feb-

09

Apr

-09

Jun-

09

Aug

-09

Oct

-09

Dec

-09

Feb-

10

Apr

-10

Jun-

10

Aug

-10

Oct

-10

0

10

20

30

40

50

60

70

80

1 Year t/c

Spot $/day

No. fixtures $,000/day

• Bulk carrier timecharter activity this week… Chilean company Minmetal took two bulk carriers on 5 year time charters this week. These were the Capesize “ALIKI”, and the newly-built Panamax “OCEAN QINGDAO”, which were fixed at rates of $26,500/day and $18,900/day respectively.

• Tanker timecharter activity this week… In November there have been 21 tanker timecharter fixtures reported. Nine handy tankers have been fixed, and the second most popular vessels were Aframaxes, of which five were fixed. 145 timecharter fixtures of one year and above have been reported in 2010.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

The Shipbuilding Market What's Been Ordered...

S Date Dwt/Unit Delivery Builder Price Owner/Manager*5 Nov-10 207,000 Mar 2012 Daehan S.B. $m 63.50 Golden Flame Shpg.5 Bulk Nov-10 207,000 Daehan S.B. $m 63.50 Golden Flame Shpg.5 Ore Nov-10 300,000 Universal S.B. Mitsui O.S.K. Lines5 Ore Nov-10 300,000 Universal S.B. Mitsui O.S.K. Lines5 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.5 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.5 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.5 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.

17 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.17 Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.17 Container Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.17 Container Nov-10 11,850 1,100 Zhejiang Yangfan $m 18.10 Shandong Int. Trans.

5 Container Nov-10 41,500 3,500 Shanghai S.Y. $m 51.00 Nile Dutch Africa5 Container Nov-10 41,500 3,500 Shanghai S.Y. $m 51.00 Nile Dutch Africa5 Container Nov-10 41,500 3,500 Shanghai S.Y. $m 51.00 Nile Dutch Africa5 Container Nov-10 41,500 3,500 Shanghai S.Y. $m 51.00 Nile Dutch Africa5 Bulk Nov-10 180,000 Shanghai Jiangnan $m 53.08 China Shpg. Tramp5 Bulk Nov-10 180,000 Shanghai Jiangnan $m 53.08 China Shpg. Tramp5 Bulk Nov-10 180,000 Shanghai Jiangnan $m 53.08 China Shpg. Tramp5 Bulk Nov-10 180,000 Shanghai Jiangnan $m 53.08 China Shpg. Tramp5 Bulk Nov-10 180,000 Dalian Shipbuilding Haibao Shipping5 Bulk Nov-10 180,000 Dalian Shipbuilding Haibao Shipping5 Bulk Nov-10 81,200 Dalian Shipbuilding Haibao Shipping

S=Status, where: 5=confirmed order, 16=unconfirmed order, 17=option. Other units are: teu for containerships, cbm for gas vessels, numbers of cars or passengers.* The Primary Reference Company, as used in the Clarkson Fleet Database i.e. the company with the main commercial responsibility for the ship.

Year End, $m. Three Month Shipbuilding News

2007 2008 2009 Nov Trend ...TankersVLCC 320,000 dwt 146.0 150.0 101.0 105.5 FIRM....... 0.6%Suezmax 157,000 dwt 90.0 91.0 62.5 67.0 WEAKER... -0.5%Aframax 115,000 dwt 72.5 75.0 49.0 57.0 WEAKER... -0.3%'MR' Tanker 51,000 dwt 52.5 47.5 35.0 36.5 FIRM....... 1.2%Bulk CarriersCapesize 180,000 dwt 97.0 88.0 56.0 57.3 WEAKER... -2.7%Panamax 76,000 dwt 55.0 46.5 33.8 34.5 FIRM....... 0.2%Handymax 57,000 dwt 48.0 42.0 30.5 31.0 WEAKER... -2.6%Handysize 35,000 dwt 38.0 32.5 25.0 26.5 WEAKER... -3.0%Gas VesselsLPG 82,000m³ 93.0 92.0 72.0 72.8 FIRM....... 0.9%LNG 160,000m³ 237.0 245.0 211.5 202.0 FIRM....... 0.6%Dry CargoContainer 3,500 teu 63.0 60.0 36.0 49.0 FIRMER…. 8.2%Container 1,100 teu 27.5 25.0 19.0 21.3 FIRM....... 2.4%Clarkson Index 184 177 138 142 FIRM....... 0.1%

Newbuilding Vessels Contracted Year-on-Year Newbuilding Price Index

2007 2008 2009 2010Oil Tankers 323 288 114 191 FIRMER... 85%Chemical & Spec. Tankers 725 242 59 39 WEAKER!! -27%Combined Carriers 6LPG Carriers 78 62 16 36 FIRMER... 149%LNG Carriers 25 5 5 #DIV/0! ######Bulk Carriers 1999 1242 324 857 FIRMER... 193%Containerships 543 215 16 112 FIRMER... 674%General Cargo vessels 393 328 46 78 FIRMER... 88%Ro-Ro Vessels 151 97 22 8 WEAKER!! -60%Refrigerated Vessels 9 6 #DIV/0! ######Offshore Vessels 711 350 167 155 FIRM....... 3%FPSO/FSU 6 3 2 4 FIRMER... 121%Passenger & Cruise Ships 59 27 21 37 FIRMER... 95%Other Misc. Vessels 293 132 111 28 WEAKER!! -72%TOTAL CONTRACTING 5,321 2,997 898 1,550 FIRMER... 91%

Clarkson Research Services Page 10 26-Nov-10

Type

Trend ...

Bulk

Newbuilding prices vary as to country of build, delivery and ship specification. Prices here are end year/latest and from Jun-08 assume a "European spec", 20/20/20/20/20% payments and "first class competitive yards" quotations, and relate to market contracts where these have taken place and to brokers' best estimates when no contracts have occurred. 3-month trend basis last 3 vs previous 3 months.

Activity ....

Apr 201220122013

May 2012Aug 2012Nov 2012Jan 2013

20132013201320132012201220132013

Nov 2012Nov 2012Dec 2012Dec 2012Nov 2012

Prices .... Newbuilding

Feb 2013Oct 2012

ContainerContainer

ContainerContainerContainerContainer

100

110

120

130

140

150

160

170

180

190

200

Oct

'00

Oct

'01

Oct

'02

Oct

'03

Oct

'04

Oct

'05

Oct

'06

Oct

'07

Oct

'08

Oct

'09

Oct

'10

Ten year trend innewbuilding prices

Index, Jan'88 = 100

• There were further reports of new business this week and as we approach the Christmas period, the current momentum of the market shows little sign of relenting. However, it is now increasingly apparent that medium-term demand sentiment from owners is beginning to soften. Therefore, although shipyards do have the comfort of a forward orderbook, there remains an imperative to attract further business.

• Although we do not anticipate any significant deviation in newbuilding values in the near future, it is clear that yards remain determined to compete strongly for the right enquiry. This is likely to have the desired effect of spurring potential buyers into action and, consequently, could prolong the current momentum that exists within the market into the new year.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

The Demolition Market What's Been Scrapped...

Type Date Vessel Name Flag Blt Dwt Ldt Owner Buyer $/ldt $ m.

MPP Nov '10 Mikue CS. 1980 7,906 2,458 Glomar Supplies Ltd IndiaMPP Nov '10 Eastern Sea MA. 1984 12,665 Alunited Maritime Old saleGCargo Nov '10 Southern Arrow CB. 1984 6,549 2,014 Pamela Corp. P.R.C. 385.0 0.78PCC Nov '10 Astro Venus PA. 1982 12,464 9,508 Kambara Kisen India 450.0 4.28Ro-Ro Nov '10 Fu Han Kou PA. 1986 9,300 NYKCOS Car Car. Old saleGC Liner Nov '10 Bolan PK. 1980 18,144 5,635 Pakistan Nat. Shpg. Pakistan 448.0 2.52L.P.G. Nov '10 Berge Racine NIS 1985 63,296 21,978 BW Gas India 460.0 10.11Chem & Oil Nov '10 Bow Panther SG. 1986 39,422 9,689 Odfjell ASA India 478.0 4.63Bulk Nov '10 Maha Vidya IN. 1977 27,451 6,861 Five Stars Shpg. Pakistan 455.0 3.12Chem & Oil Nov '10 Ustica PA. 1986 24,225 Gabes Marine Tankers IndiaTanker Nov '10 Ocean Power SG. 1983 127,778 Ocean Tankers Pte Bangladesh 470.0Harbour Tug Nov '10 Mermaid Warrior AU. 1969 Mermaid Marine GroupGravel/Stone Nov '10 Pieter NE. 1965 802 Van OordReefer Nov '10 Storm Bay SG. 1983 11,720 6,384 Oceanlink Management As is FujairahGCargo Nov '10 Asrar-a-Mostafa BA. 1978 7,200 AK Ship Mngt. & Serv BangladeshBulk Nov '10 Our River CS. 1983 75,105 Holyman Ltd. BangladeshBulk Nov '10 Phuc Hai Moon PA. 1979 33,688 7,733 Phuc Hai Shipping India 435.0 3.36Chem & Oil Nov '10 Sea Pearl SC. 1973 3,309 Al-Dawood Shpg. Ltd. BangladeshProducts Nov '10 Iman PA. 1986 6,237 3,163 Laskaridis Shpg Pakistan 448.0 1.42Standby/Resc. Nov '10 VOS Conquest LI. 1974 600 Vroon OffshoreTanker Nov '10 Swat PK. 1985 86,593 16,372 Pakistan Nat. Shpg. Pakistan 468.0 7.66Pass/Car F. Nov '10 SNAV Sicilia BR. 1974 5,341 11,510 Alisnav IndiaMPP/Hvy. Lift Nov '10 Terrisha PA. 1984 17,330 7,160 Pan Seas Co. L.L.C. India

Scrap Year End ($/ldt) This Year Scrapping Price Trends

Prices... 2007 2008 2009 Latest %Tankers 510 285 340 470 38%Dry Cargo 470 270 330 435 32%

Buyer Year (m dwt) This Year

Activity... 2007 2008 2009 2010 %China 0.3 1.3 5.8 2.3 -56%India 1.4 3.4 9.0 7.7 -8%Bangladesh 2.5 7.1 10.1 4.3 -54%Pakistan 0.6 0.6 3.0 4.0 43%Other 0.7 0.8 3.7 4.0 18%TOTAL 5.5 13.3 31.6 22.3 -24%

Size & Year (m dwt) This Year

Type... 2007 2008 2009 2010 % Demolition Market News and Gossip

TankersVLCC 0.8 2.4 3.2 47%Suezmax 0.3 0.8 1.9 145%Aframax 0.9 1.1 1.5 1.4 -1%Handy 2.4 2.0 3.6 5.2 56%< 10,000 dwt 0.2 0.2 0.2 0.3 78%Total Tankers 3.5 4.3 8.5 11.9 52%BulkcarriersCapesize 2.2 1.4 2.3 73%Panamax 0.1 1.1 2.3 0.5 -75%Handymax 0.1 0.5 1.3 0.4 -70%Handysize 0.3 1.8 5.4 1.8 -64%Total Bulkers 0.6 5.6 10.4 5.0 -48%Combos - 0.2 0.7 - -100%Gas Vessels 0.5 0.6 0.7 0.6 -6%Other Dry 0.8 2.6 11.3 4.8 -54%TOTAL 5.5 13.3 31.6 22.3 -24%* The % change is based on annualised figures for this year against last year.

Clarkson Research Services Page 11 26-Nov-10

Note: The scrap prices ($/ldt) are based on Indian prices for VLCC tankers and a Handy dry bulk carrier of around 8,000 ldt.

150

200

250

300

350

400

450

500

550

Nov'08

Jan'09

Mar'09

May'09

Jul'09

Sep'09

Nov'09

Jan'10

Mar'10

May'10

Jul'10

Sep'10

Nov'10

US$ per ldt

Tankers - IndiaTankers - B.DeshHandy Bulk - B.Desh

• There is little new or more certain to report from the Bangladeshi market. Although a few ships were beached earlier in the month, it will not be until there is a proven track record of ships being granted licence to beach under the new regime that it can be said that the problems are over. • This week, a couple of major Norwegian owners have been disposing of specialised tonnage to Indian yards. The “BERGE RACINE” (81,600 cu.m., built 1985 Chantiers de la Ciotat) was sold by BW Gas at $460/ldt, or just over $10 million. Meanwhile, the Indians will also be scrapping the “BOW PANTHER” (39,422 dwt, built 1986 Hanjin H.I.) which was sold by Odfjell for $478/ldt. The firm price is reflective of a small stainless steel content. The vessel is expected to deliver to one of the recycling yards at Alang with amongst the best green credentials. • The Pakistani National Shipping Company has been relatively active recently, including one sale this week. At least one more vessel is likely to follow the others to domestic breakers imminently.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Economic IndicatorsGDP Growth & Forecasts*

Germ U.K. USA Japan Euro Area World2007 2.7% 2.7% 1.9% 2.4% 2.9% 5.3%2008 1.0% -0.1% 0.0% -1.2% 0.5% 2.8%2009 -4.7% -4.9% -2.6% -5.2% -4.1% -0.6%1Q10 2.1% -0.2% 3.7% 4.6% 0.6% 0.0%2Q10 4.1% 1.7% 3.0% 2.4% 1.9% 0.0%3Q10 3.9% 2.8% 3.1% 4.4% 1.9% 0.0%

2010 (f) 3.3% 1.7% 2.6% 2.9% 1.6% 4.8%2011 (f) 2.0% 1.8% 2.3% 1.3% 1.3% 4.2%

Industrial Production*: OECDavg: Germ U.K. USA Japan Europe OECD2007 5.5% 0.5% 2.0% 2.7% 2.4% 2.3%2008 0.1% -2.4% -1.5% -3.2% -2.2% -2.1%2009 -16.0% -9.7% -9.8% -21.8% -14.4% -14.0%

Aug '10 11.0% 4.2% 6.2% 15.4% 7.9% 8.5%Sep '10 7.9% 3.8% 5.4% 11.1% 0.0% 0.0%

Industrial Production*: Asiaavg: R.o K. China Taiwan Thailand Malay. India2007 8.2% 17.6% 7.3% 7.8% 1.9% 9.8%2008 3.3% 13.0% -1.5% 5.8% 0.0% 3.9%2009 0.0% 11.1% -6.4% -4.8% -7.8% 6.1%

Jul '10 15.5% 13.4% 20.7% 16.3% 3.2% 13.8%Aug '10 17.1% 13.9% 23.4% 8.7% 4.0% 5.6%Sep '10 3.9% 13.3% 12.2% 8.1% 5.6% 4.4%

Ind. Production*: E.Europe & S. Americaavg: Russia Czech. Hung. Poland Arge. Brazil2007 6.6% 8.5% 8.4% 9.6% 5.4% 5.9%2008 2.6% -0.7% -0.6% 3.9% 4.1% 2.8%2009 -9.7% -12.3% -17.3% -1.2% -3.5% -7.1%

Jul '10 5.9% 5.3% 11.5% 10.4% 3.0% 8.7%Aug '10 7.0% 12.9% 14.9% 13.5% 5.9% 8.9%Sep '10 6.2% 12.2% 10.9% 11.8% 7.7% 6.3%

Currency Trends Spot ~ & Forward# ... Exchange Rate Trendsend: Euro U.K. Japan Switz. N'way China2007 1.46 1.99 114.15 1.14 5.47 7.302008 1.41 1.47 90.67 1.07 7.19 6.842009 1.42 1.59 91.79 1.05 5.89 6.83Sep 1.30 1.56 84.51 1.01 6.09 6.76Oct 1.39 1.58 81.95 0.97 5.83 6.68Nov 1.37 1.60 82.59 0.98 5.94 6.64

26-Nov 1.34 1.58 83.60 1.00 6.07 6.653mo.# 1.34 1.58 83.50

12mo.# 1.33 1.57 83.00

end: R.o K. H.Kong Sing. SDR India Australia2007 940.60 7.80 1.45 1.57 39.42 1.142008 1,299.55 7.75 1.45 1.54 48.46 1.472009 1,180.08 7.76 1.41 1.56 46.81 1.14Sep 1,168.53 7.77 1.34 1.52 46.25 1.07Oct 1,125.71 7.76 1.30 1.57 44.50 1.02Nov 1,121.95 7.75 1.29 1.56 44.82 1.00

26-Nov 1,137.65 7.76 1.31 1.54 45.52 1.02*% change year-on-year. Source: IMF, OECD, The Economist. ~Currency units per US$ except £, Euro and SDR. #Forward Rates: The FT.

Interest Rate Trends ... Inflation & Prices … Prices in $/bbl or $/tPrime Lending Rates: Consumer Prices Crude Grain Steel

$ Libor Oil Wheat Ship Plateavg: 6 mths. avg: Brent USG Japan2007 3.9% 6.5% 4.1% 1.8% 8.1% 5.2% 2007 2.6% 2.9% 0.1% 2.4% 72.29 267 6432008 3.8% 5.6% 3.5% 1.8% 5.1% 3.0% 2008 3.9% 3.9% 1.4% 3.7% 98.67 343 1,1182009 1.2% 1.6% 0.5% 1.5% 3.3% 1.1% 2009 1.0% -0.4% -1.3% 0.0% 60.93 234 707Sep 1.0% 1.5% 0.5% 1.5% 3.3% 0.5% Aug 2.3% 1.1% -0.9% 1.6% 73.78 288 700Oct 1.0% 1.5% 0.6% 1.5% 3.3% 0.5% Sep 2.5% 1.1% -0.6% 1.7% 78.85 287 700Nov 1.0% 1.5% 0.6% 1.5% 3.3% 0.4% 0 Oct 0.0% 1.2% 0.0% 0.0% 84.49 295 700

26-Nov 1.0% 1.5% 0.6% 1.5% 3.3% 0.5% Latest 0.0% 0.0% 0.0% 0.0% 86.38 283 730

Clarkson Research Services Page 12

Industrial ProductionJul '10 11.3% 1.9% 7.7% 14.8% 7.9% 8.9%

Euro U.K. Switz. Japan

26-Nov-10

#Forward Rates as of: 26-Nov

Eur USA Japan OECDU.S.A.

-25-20-15-10-505

1015202530

Jan

'93

Jan

'94

Jan

'95

Jan

'96

Jan

'97

Jan

'98

Jan

'99

Jan

'00

Jan

'01

Jan

'02

Jan

'03

Jan

'04

Jan

'05

Jan

'06

Jan

'07

Jan

'08

Jan

'09

Jan

'10

% change

Atlantic

Pacific

80

90

100

110

120

130

140

150

160

170

Dec

'08

Jan

'09

Feb

'09

Apr

'09

May

'09

Jul '

09A

ug '0

9S

ep '0

9N

ov '0

9D

ec '0

9Ja

n '1

0M

ar '1

0A

pr '1

0Ju

n '1

0Ju

l '10

Aug

'10

Oct

'10

Nov

'10

$/Sterling$/Yen$/Euro

Index Jan'00=100

• Despite the current travails in the Eurozone surrounding the Irish debt crisis and the fear that other fringe nations which currently maintain high budget deficits may be forced to appeal for financial assistance, the Ifo index of German business confidence rose by 1.6 points month-on-month in November. It now stands at 109.3 points. This is its highest value since January 1991. • In contrast to the austerity packages being implemented by many European governments, the Japanese Parliament has recently passed a new stimulus package worth $61bn. This aims to create new jobs, help small businesses and increase consumer spending. October was the twentieth consecutive month in which Japanese consumer prices have fallen, which is symptomatic of the deflation that the Japanese economy has been suffering from over the past few months.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Ship Demand Trends

Oil Tanker in million barrels per day % Chg

Demand .... 2007 2008 2009 2010* 2010/09

Oil Production World 83.1 83.9 82.8 84.3 1.8% N. America 7.8 7.6 8.1 7.9 -2.0% W. Europe 4.1 3.9 3.7 3.4 -7.4% FSU 9.6 9.5 9.6 9.7 1.3% OPEC Crude Oil 30.5 31.5 28.6 29.2 2.2%

NGL's/Cond. 4.9 5.0 5.3 5.5 2.9%

VLCC Demand Middle-East Output # 23.6 24.3 22.3 22.9 2.7% Less: Red Sea export 0.3 0.3 0.3 0.3 0.0%

E.Med export 0.9 1.0 1.1 1.1 1.2%Refinery T'put 6.4 6.4 6.4 6.4 0.0%

Gulf Crude Exports 16.0 16.6 14.5 15.1 4.1%

Crude Oil Trade Imports: USA 10.0 9.8 9.1 9.4 3.9%

Eur-4 6.4 6.7 6.0 5.8 -2.8%Japan 4.1 4.2 3.1 3.1 1.0%

Total Imports (listed) 20.5 20.6 18.2 18.4 1.2%

Products Trade Imports: USA 3.4 3.1 2.7 2.5 -7.2%

Eur-4 2.0 2.1 2.1 2.2 0.8%Japan 0.6 0.5 0.5 0.6 15.2%

Total Imports (listed) 6.1 5.8 5.4 5.3 -2.0%

Dry Bulk in million tonnes % Chg

Demand .... 2007 2008 2009 2010* 2010/09

Steel Production Japan 120.2 118.7 87.5 109.8 25.4% S.Korea 51.2 53.5 48.9 57.3 17.2% P.R. China 487.3 497.9 566.3 635.7 12.3% EU-12 156.6 148.1 102.9 130.4 26.8% Total Steel Prod. (listed) 815.2 818.2 805.6 933.3 15.9%

Iron Ore Trade Imports: Japan 139.0 140.4 105.5 134.3 27.3%

S.Korea 46.2 49.5 42.1 55.1 31.0%China 377.1 435.9 614.6 590.3 -3.9%

Total Imports (listed) 562.2 625.8 762.2 779.8 2.3% Exports: Australia 241.9 625.8 362.4 395.0 9.0%

Coal Trade Imports: Japan 186.1 190.5 162.4 184.8 13.8%

S.Korea 83.4 98.2 112.2 115.3 2.8%EU-25 # 211.1 205.4 178.4 159.3 -10.7%

Total Imports (listed) 480.6 494.0 453.0 459.4 1.4% Exports: Australia 250.4 262.1 271.8 298.4 9.8%

USA 36.5 51.8 43.7 62.5 42.9%Canada 29.2 30.9 26.9 31.0 15.3%South Africa 66.8 62.0 67.9 67.9 0.0%

Total Exports (listed) 382.9 406.8 410.4 459.8 12.0%

Grain Trade Exports: USA (ex soya) 96.9 90.3 73.2 84.1 15.0%

Canada 22.4 20.9 22.5 18.5 -17.8%Australia 9.6 13.1 19.9 20.6 3.5%Arg. (ex soya) 26.9 26.5 16.7 23.5 40.6%EU-25 # 16.3 24.9 24.3 27.4 12.6%

Total Exports (listed) 172.2 175.8 156.6 174.1 11.2% 2010 data are projections/annualised figures, seasonally adjusted from latest year-to-date figures. #EU 25 to 2006, then EU27.

0 0 0 0 0 0 0 0 Clarkson Research Services Page 13 26-Nov-10

*2010 data are projections/annualised figures. World Total includes NGL's; #Mid-E output is sum of OPEC and non-OPEC crude production. Oil production data sourced from IEA.

Major Oil Trades News: • Construction of a pipeline which will transport crude from Abu Dhabi’s oilfields to Fujairah has been completed. Oil will begin to flow on a trial basis in December, as testing for leaks begins. The pipeline will allow Abu Dhabi to by-pass the risky Strait of Hormuz and offset the reliance on oil terminals in the Arabian Gulf. The 370km pipeline will carry around 1.5m bpd of Murban crude. The pipeline may further boost Fujairah’s importance as an oil hub.

Major Dry Bulk Trades News: • Data released by the World Steel Association shows that global steel output reached 117.6mt in October. This represents y-o-y growth of 2%, and an increase of 5% compared to global production in September 2010. Chinese output totalled 50.3mt, a slight decline compared to October last year, but this was more than offset by a strong performance by the other major steelmaking countries.

• This week shipowner Mitsui OSK Lines and mining giant Vale signed a 25-year agreement to ship iron ore from Brazil to China. As a result of the contract, MOL will order two 300,000 dwt VLOCs from Universal Shipbuilding.

OPEC Production & VL Earnings

26

27

28

29

30

31

32

33

34

Sep

-06

Jan-

07

May

-07

Sep

-07

Jan-

08

May

-08

Sep

-08

Jan-

09

May

-09

Sep

-09

Jan-

10

May

-10

Sep

-10

m. bpd

0

25

50

75

100

125

150

175

200$,000/day

OPEC OilProductionVLCCEarnings

Steel Production & Cape Earnings

90

100

110

120

130

140

150

160

170

180

Oct

-06

Feb-

07

Jun-

07

Oct

-07

Feb-

08

Jun-

08

Oct

-08

Feb-

09

Jun-

09

Oct

-09

Feb-

10

Jun-

10

Oct

-10

Index

0

20

40

60

80

100

120

140

160

180$,000/day

Steel ProductionIndexCapesizeEarnings

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

World Fleets & Orderbooks

Total Cargo Year End Orderbook & Delivery Schedule

Fleet ..m. Dwt 2006 2007 2008 2009 No. m.Dwt No. m.Dwt % Fleet 2010 2011 2012+

OIL TANKERS >10k dwt 336.7 354.2 371.2 396.5 3,842 409.3 805 117.4 28.7% 10.8 55.7 50.9OIL TANKERS <10k dwt 10.8 11.1 11.5 11.9 4,975 11.9 102 0.6 4.9% 0.4 0.2 0.1CHEMICAL TANKERS 29.7 33.8 39.0 42.9 3,562 45.2 552 10.9 24.1% 3.7 5.5 1.7OTHER TANKERS 3.5 3.6 3.5 3.5 648 3.6 40 0.3 9.0% 0.1 0.1 0.1BULKERS 368.2 392.1 417.9 459.3 7,989 519.8 3,187 272.8 52.5% 31.2 120.3 121.3COMBOS 8.9 8.2 7.9 7.1 74 8.4 5 1.6 19.2% 0.3 1.3 0.0LPG CARRIERS 12.4 13.0 14.4 14.8 1,185 14.8 126 1.4 9.4% 0.3 0.5 0.6LNG CARRIERS 15.1 17.7 22.4 26.1 358 28.0 26 1.9 6.9% 0.6 0.6 0.7CONTAINERSHIPS 128.4 144.6 161.3 169.1 4,960 182.7 624 45.2 24.7% 2.4 19.9 22.8MULTI-PURPOSE 24.0 25.2 26.3 25.9 2,986 26.3 514 7.1 27.1% 2.0 3.5 1.6GENERAL CARGO 95.7 96.5 97.0 37.9 14,886 38.0 187 1.3 3.5% 0.47 0.66 0.21RO-RO 10.1 10.2 10.3 10.1 2,154 9.6 78 1.0 10.8% 0.2 0.6 0.3CAR CARRIERS 7.9 8.8 9.9 9.8 669 10.1 128 2.2 22.2% 0.6 1.2 0.5REEFERS 7.2 7.2 6.9 6.6 1,784 6.6 7 0.1 1.6% 0.02 0.00 0.09OFFSHORE (AHTS/PSV) 4.6 5.0 5.6 6.4 5,115 6.9 513 1.4 19.7% 0.78 0.34 0.24OTHER CARGO 8.4 8.4 8.3 8.3 1,437 8.3 27 0.4 4.8% 0.15 0.17 0.07WORLD CARGO FLEET 1,071.7 1,139.5 1,213.7 1,236.2 56,624 1,329.5 6,921 465.8 35.0% 53.9 210.6 201.2

]

Tanker Year End Orderbook & Delivery Schedule Fleet ..m. Dwt 2006 2007 2008 2009 No. m.Dwt No. m.Dwt % Fleet 2010 2011 2012+

VLCC 200,000+ 142.4 147.6 152.8 160.8 543 164.1 198 62.1 37.9% 5.6 28.6 27.9Suezmax 120-200,000 52.6 54.8 55.4 60.3 409 62.7 150 23.4 37.3% 1.6 10.1 11.8Aframax 80-120,000 71.5 76.4 81.1 87.7 879 92.7 142 15.6 16.8% 1.5 8.0 6.1Panamax 60-80,000 21.3 23.9 26.1 27.6 397 28.4 86 6.3 22.3% 0.4 3.8 2.1Small 10-60,000 75.3 81.4 90.2 97.8 3,213 101.0 590 19.6 19.4% 4.8 10.2 4.6

26.3 29.9 34.3 37.5 1,600 39.7 361 9.7 24.4% 2.9 5.1 1.7<10,000 18.1 18.8 20.0 21.0 7,585 21.4 333 2.1 9.9% 1.2 0.7 0.2

TOTAL FLEET >10,000 363.1 384.2 405.6 434.1 5,441 449.0 1,166 127.1 28.3% 13.8 60.8 52.6of which: Single Hull 91.3 81.7 66.9 47.3 518 31.5

Double Hull 271.8 302.5 338.7 384.4 4,922 417.4Combos in Oil 4.0 1.2 2.6 3.5 37 4.2 Increase in size of Tanker Fleet:

Laid-up 1.0 0.8 0.6 2.6 27 3.1 2009/2008 7.0%Storage 1.5 1.1 0.6 3.3 17 3.4 2010*/2009 3.4% * year to date

ACTIVE FLT. >10,000 364.6 383.5 406.9 431.7 5,434 446.7

Bulk Carrier Year End Orderbook & Delivery Schedule Fleet ..m. Dwt 2006 2007 2008 2009 No. m.Dwt No. m.Dwt % Fleet 2010 2011 2012+

Capesize 100,000+ 121.3 131.6 143.4 170.1 1,118 200.4 668 129.9 64.8% 12.6 57.3 60.1Panamax 60-100,000 101.6 108.1 114.7 120.9 1,769 132.7 876 71.0 53.5% 7.4 28.8 34.9Handymax 40-60,000 71.7 76.9 83.0 92.1 2,107 105.7 809 44.9 42.5% 7.2 20.7 16.9Handysize 10-40,000 73.6 75.4 76.8 76.2 2,995 81.0 834 27.0 33.3% 4.0 13.5 9.5TOTAL FLEET 368.2 392.1 417.9 459.3 7,989 519.8 3,187 272.8 52.5% 31.2 120.3 121.3Combos in Dry 5.1 6.7 5.3 3.3 33 3.9 Increase in size of Bulkcarrier Fleet:

Laid-up 0.4 0.3 0.6 0.6 6 0.3 2009/2008 9.9%Storage 0.3 0.3 0.3 0.2 4 0.2 2010*/2009 13.2% * year to date

ACTIVE FLEET 372.6 398.2 422.4 461.8 8,012 523.2

LPG Carrier Year End Orderbook & Delivery Schedule Fleet ,000m³ 2006 2007 2008 2009 No. ,000m³ No. ,000m³ % Fleet 2010 2011 2012+

<5,000 cbm 1,326 1,377 1,407 1,447 652 1,491 33 120 8.0% 53 58 85-20,000 cbm 1,902 2,027 2,210 2,263 269 2,265 71 598 26.4% 96 163 34020-40,000 cbm 2,027 2,301 2,480 2,758 102 2,938 15 407 13.8% 105 201 10140-60,000 cbm 1,466 1,360 1,368 1,164 20 1,164 0 0 0.0% 0 0 0>60,000 cbm 8,466 8,822 10,500 11,096 142 11,366 7 568 5.0% 83 243 242TOTAL FLEET 15,186 15,886 17,964 18,728 1,185 19,224 126 1,693 8.8% 337 666 690TOTAL M. DWT 12.4 13.0 14.4 14.8 1,185 14.8 126 1.39 9.4% 0.28 0.53 0.58

Clarkson Research Studies Page 14

"Oil Tankers" covers vessels in the crude oil & oil products sectors, including tankers with IMO 3 grade specification. "Chemical" includes tankers with IMO 1&2 grade specification. "Specialised" covers IMO 1&2 chemical tankers and other tankers designed for the carriage of specialist liquids..

26-Nov-10

of which: Specialised >10,000

01-Nov-10

01-Nov-10

01-Nov-10

01-Nov-10

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

World Fleets & Orderbooks

LNG Carrier Year End Orderbook & Delivery Schedule Fleet ,000m³ 2006 2007 2008 2009 No. ,000m³ No. ,000m³ % Fleet 2010 2011 2012+

<40,000 cbm 262 252 197 206 16 226 4 44 19.5% 22 22 040-60,000 cbm 253 253 163 163 3 122 0 0 0.0% 0 0 060-100,000 cbm 1,233 1,307 1,383 1,383 17 1,295 0 0 0.0% 0 0 0>100,000 cbm 25,430 30,133 39,045 45,840 322 49,564 22 3,562 7.2% 1,012 1,115 1,436TOTAL FLEET 27,178 31,945 40,787 47,592 358 51,208 26 3,606 7.0% 1,034 1,137 1,436TOTAL M. DWT 15.1 17.7 22.4 26.1 358 28.0 26 1.9 6.9% 0.6 0.6 0.7

Containership Year End Orderbook & Delivery Schedule Fleet ,000 Teu 2006 2007 2008 2009 No. ,000teu No. ,000teu % Fleet 2010 2011 2012+100-999 teu 665.6 714.8 752.3 740.6 1,227 735.3 48 37.7 5.1% 19.7 17.9 0.01-1,999 teu 1,481.5 1,640.6 1,781.1 1,773.0 1,275 1,807.2 104 140.9 7.8% 31.1 74.5 35.22-2,999 teu 1,594.5 1,703.9 1,819.1 1,781.7 705 1,792.3 45 116.0 6.5% 27.0 35.9 53.23,000 &+ teu (Panamax) 2,538.7 2,946.0 3,337.6 3,587.9 951 3,902.9 83 341.9 8.8% 40.9 132.6 168.43-7,999 teu (Post-Pmax) 2,244.8 2,413.9 2,682.7 2,884.1 510 3,067.0 108 612.1 20.0% 30.3 322.6 259.28,000 &+ teu (Post-Pmax) 948.7 1,362.0 1,780.6 2,125.9 292 2,738.5 236 2,594.1 94.7% 47.1 1,114.3 1,432.8TOTAL FLEET 9,473.8 10,781.2 12,153.5 12,893.3 4,960 14,043.4 624 3,842.6 27.4% 196.1 1,697.8 1,948.7TOTAL M. DWT 128.4 144.6 161.3 169.1 4,960 182.7 624 45.2 24.7% 2.4 19.9 22.8

Multipurpose Year End Orderbook & Delivery Schedule Fleet ,000 Teu 2006 2007 2008 2009 No. ,000teu No. ,000teu % Fleet 2010 2011 2012+100 - 199 teu 100.5 104.9 110.3 113.9 757 115.1 55 7.9 6.9% 2.7 3.7 1.5200 - 349 teu 183.2 194.5 203.2 204.7 788 206.0 103 28.5 13.8% 15.1 11.9 1.5350 - 499 teu 187.5 195.3 196.9 192.4 467 188.0 50 19.1 10.2% 5.8 9.9 3.5500 - 749 teu 325.8 355.7 391.3 384.5 635 389.5 88 53.8 13.8% 17.3 29.6 7.0750 - 999 teu 114.5 126.5 136.7 138.3 166 146.7 98 88.5 60.3% 23.3 48.3 17.01000 &+ teu 183.7 185.1 187.5 207.2 173 229.1 120 178.9 78.1% 41.1 86.1 51.7TOTAL FLEET 1,095.2 1,162.0 1,225.8 1,241.1 2,986 1,274.4 514 376.8 29.6% 105.3 189.4 82.2MPP FLEET M. DWT 24.0 25.2 26.3 25.9 2,986 26.3 514 7.1 27.1% 2.0 3.5 1.6GC FLEET M. DWT 95.7 96.5 97.0 37.9 14,886 38.0 187 1.34 3.5% 0.47 0.66 0.21

Ro-Ro Vessel Year End Orderbook & Delivery Schedule Fleet, m. Dwt 2006 2007 2008 2009 No. m.Dwt No. m.Dwt % Fleet 2010 2011 2012+<2,000 dwt 0.4 0.4 0.4 0.5 1,224 0.5 1 0.0 0.1% 0.00 0.00 0.002,000-5,000 dwt 1.2 1.2 1.2 1.1 286 1.0 0 0.0 0.0% 0.00 0.00 0.005,000-7,500 dwt 1.5 1.6 1.6 1.5 228 1.5 15 0.1 5.8% 0.01 0.04 0.047,500-10,000 dwt 1.1 1.2 1.2 1.1 128 1.1 13 0.1 9.4% 0.05 0.05 0.0110-15,000 dwt 1.7 1.8 1.8 1.9 153 1.9 29 0.3 18.4% 0.06 0.22 0.0615,000&+ dwt 4.0 4.1 4.1 4.0 135 3.7 20 0.5 13.8% 0.05 0.27 0.19TOTAL FLEET 10.1 10.2 10.3 10.1 2,154 9.6 78 1.04 10.8% 0.17 0.59 0.29CAR CARRIERS 7.9 8.8 9.9 9.8 669 10.1 128 2.25 22.2% 0.56 1.24 0.45

Reefer Vessel Year End Orderbook & Delivery Schedule Fleet m. ft³. 2006 2007 2008 2009 No. m.ft³ No. m.ft³ % Fleet 2010 2011 2012+< 100,000 cu ft 21.8 21.7 21.3 21.3 946 21.2 0 0.0 0.0% 0.0 0.0 0.0100-199,999 cu ft 38.5 39.0 38.7 38.5 253 38.2 0 0.0 0.0% 0.0 0.0 0.0200-299,999 cu ft 50.6 50.6 49.4 48.1 186 46.3 0 0.0 0.0% 0.0 0.0 0.0300-449,999 cu ft 72.6 71.8 66.5 62.4 149 55.9 0 0.0 0.0% 0.0 0.0 0.0450-549,999 cu ft 94.7 94.2 89.4 83.3 159 79.0 0 0.0 0.0% 0.0 0.0 0.0> 550,000 cu ft 56.3 57.6 58.0 56.0 91 56.0 7 4.6 8.1% 0.7 0.0 3.9TOTAL FLEET 334.7 334.9 323.3 309.6 1,784 296.6 7 4.55 1.5% 0.65 0.00 3.90TOTAL M. DWT 7.2 7.2 6.9 6.6 1,784 6.6 7 0.11 1.6% 0.02 0.00 0.09

Clarkson Research Studies Page 15

01-Nov-10

26-Nov-10

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

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

01-Nov-10

01-Nov-10

01-Nov-10

01-Nov-10

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045

Analysis

Feeling irritable, moody and tense? Go straight to your doctor and if you are a shipowner, the chances are he will diagnose Particle Matter Trauma (PMT) brought on by the stress of the constantly shifting regulations about ship emissions. This condition is more serious for those with Low Sul-phur Dementia (LSD), the inability to remember which fuel grade to use, when and where. Emission Control Timeline Let's start with the emissions time-line. Under MARPOL Annex 6, on 1st January 2012 a global sulphur cap of 3.5% will be introduced, falling to

0.5% in 2020. That’s no problem but the limits are much tougher in desig-nated Emission Control Areas (ECAs) which regulate both SOx and NOx. Today, ships sailing in ECA waters must use 1% sulphur fuel oil and from January 2015 0.1% sulphur fuel oil. Currently, ECAs cover the only the Baltic and North Seas but the 200 mile N. American ECA comes into force in August 2012 and Japan is examining a scheme. Also (nothing to do with IMO) ships in EU ports must burn 0.1% gasoil. You Are What You Burn Ship emissions are a problem because

marine diesel engines have traditionally used Heavy Fuel Oil (HFO) which no one else wants. HFO is the refin-ing waste left after dis-tillation, containing 4-6% sulphur and various sediments. But it is 25% cheaper than crude oil (see graph). To drive auxiliary engines most ships have used Marine Diesel Oil (MDO), which is a better quality fuel with about 2% sul-phur and costs 50% more than HFO. Fi-nally, low-sulphur MGO and HFO are now available, though regulators sensitive about particular matter

insist on the use of gasoil. Dealing with the Trauma The complex matrix of regional and fuel quality issues leaves shipping companies in a dilemma. Simply us-ing the fuel that regulators require looks an easy option, but may not be. It requires adequate bunker tank seg-regations to switch between high seas, territorial and port requirements. Another challenge is that the correct grades must be available at the start of the voyage, which could be any-where in the world. Scrubbing Up MARPOL Annex 6 also allows Ex-haust Gas Cleaning Systems (EGCS) which remove emissions from the exhaust in service. EGCSs capable of removing sulphur and particular mat-ter have been tested at sea, but are not in use yet. They are big, heavy and face the risk that better technology will appear before 2015. Take an Aspirin and Forget It So there you have it. It's easy to un-derstand why busy shipowners strug-gle to keep up with this complex mix of regulatory requirements and tech-nical options. And although the mat-ter is not yet quite mission-critical, it's even easier to understand why some might wake up in a sweat wor-rying about the obstacle course which lies ahead. Have a nice day.

Anxiety, Tension, Mood Swings? Could it be PMT?

Graph of the Week

Feeling a Bit Heavy About The Fuel?

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

Au

g-0

7

No

v-0

7

Feb

-08

Ma

y-0

8

Au

g-0

8

No

v-0

8

Feb

-09

Ma

y-0

9

Au

g-0

9

No

v-0

9

Feb

-10

Ma

y-1

0

Au

g-1

0

Source: Clarkson Research Services

Crude Oil Price380CST Bunkers380CST low sulphurGasoil MDO Rotterdam

$/tonne

Shipping Intelligence Weekly, 26 November, 2010 Editorial Board: Published by: Analysis Martin Stopford Clarkson Research Services Ltd. Publisher Cliff Tyler St. Magnus House, Editor C. Kennedy 3, Lower Thames Street, Production D. Lee London EC3R 6HE, England. S & P K. Taylor Tel: + (44) (0) 20 7334 3134 Tankers R. Knight Fax: + (44) (0) 20 7522 0330 Specialised R. Whittet Telex: 8812927 CLTNKA G Gas J. R. Evans Dry Cargo G. Campbell E-mail: sales.crs@clarksons.co.uk Freight Derivatives A. Gray Web-site: http://www.crsl.com Singapore G. Lane Sydney, Australia P. M. Quirk

Shipping Intelligence Weekly is published 50 times a year. It reviews the markets for Crude, Products, Specialised and Gas tankers, Bulk carriers, Offshore and Liner vessels as well as the second-hand, new building and demolition markets. It provides details of freight rates, earnings, prices and activity in all these markets; fleet statistics; trade, financial and economic indicators. It is available on subscription at a price of £675/£690 a year (within Europe/outside Europe) including postage. Whilst care has been taken in the production of this review, no liability can be accepted for any loss incurred in any way whatsoever by any person who may seek to rely on the information contained herein. The information in this report may not be reproduced without the written permission of Clarkson Research Services Limited.

Lice

nsed

to W

alle

m S

hipb

roki

ng H

K L

imite

d. D

istr

ibut

ion

is r

estr

icte

d; p

leas

e re

mem

ber

to a

ckno

wle

dge

the

sour

ce.

http

://w

ww

.cla

rkso

ns.n

et 2

9/11

/201

0 01

:39:

14 6

8045

Licensed to Wallem

Shipbroking H

K Lim

ited. Distribution is restricted; please rem

ember to acknow

ledge the source. http://ww

w.clarksons.net 29/11/2010 01:39:14 68045