Shipping Overview CMA Luncheon - October 27, 2010 Presentation by - PowerPoint PPT Presentation

Shipping Overview CMA Luncheon - October 27, 2010 Presentation by Mr. George Economou

Drybulk Market (All market sources from Clarkson’s)

120,000 180,000 240,000 300,000 Freight Rates Overview 60,000 0 2000-01 2000-07 2001-01 2001-07 2002-01 2002-07 2003-01 2003-07 Drybulk Freight Rates (in $/day) 2004-01 2004-07 2005-01 2005-07 2006-01 2006-07 2007-01 2007-07 4TC Panamax Monthly Average 4TC Capesize Monthly Average 2008-01 2008-07 2009-01 2009-07 2010-01 2010-07

Demand & Supply Overview Demand/Supply - Annual % Change 15.00% Demand YoY %Chg Supply YoY % Chg 11.25% 7.50% 3.75% 0% CAGR - Supply 5.88% CAGR - Demand 3.45% -3.75% -7.50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 15.0% 7.5% 7.37% 7.38% 0% 4.97% 4.85% 5.23% 4.03% 2.25% 2.10% -0.61% -7.5% -15.0% Cumulative imbalance between Supply-Demand growth -15.85% -22.5% -21.71% -30.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supply - Demand Gr Supply - Demand Gr Supply - Demand Growth: Drybulk Sector (in mill tons) owth: Drybulk Sector (in mill tons) owth: Drybulk Sector (in mill tons) owth: Drybulk Sector (in mill tons) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Iron Ore 447 450 480 516 587 658 721 781 840 907 1,007 Coal 516 550 573 619 660 688 729 772 797 792 822 Other 2,626 2,648 2,789 2,899 3,061 3,170 3,318 3,434 3,541 3,204 3,381 Total Demand 3,589 3,648 3,842 4,034 4,308 4,516 4,768 4,987 5,178 4,903 5,210 YoY % Chg 7.97% 1.64% 5.32% 5.00% 6.79% 4.83% 5.58% 4.59% 3.83% -5.31% 6.26% Drybulk Fleet 274.9 286.9 294.7 302.0 322.5 345.0 368.4 392.4 418.1 459.6 515.3 YoY % Chg 3.00% 4.37% 2.72% 2.48% 6.79% 6.98% 6.78% 6.51% 6.55% 9.93% 12.12%

China: Key Driver Chinese Imported Volumes (in mill tons) 700 Iron Ore Total Coal 525 350 175 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(Est) Chinese Iron Ore Imports vs Total (in mill tons) 1,500 ROW Iron Ore (ex China) Iron Ore Imported in China 1,125 750 375 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010(Est) In 2000 China’s In 2010 China’s share was 15.6% share est 62%

Newbuilding Orderbook Drybulk Orderbook vs Fleet 800 Drybulk NB Orderbook Drybulk Fleet 600 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010(f) In 2003 Orderbook Current Orderbook was 18.5% of Fleet is 53.8% of Fleet Drybulk Vessel Deliveries (in mill DWT) 150 Drybulk Deliveries 113 75 38 0 2003 2004 2005 2006 2007 2008 2009 2010(f) 2011(f) 2012(f)

Investment Overview Vessel Type Capesize Year Built 2005 Purchase Price $54 mill 5 Years Investment Period $6500/day OPEX Loan Facility 60% Debt @ 5.50% All in Interest Residual Value $38.3 mill (Straight Line Depreciation) Expected ROE 10% $26,670/day Average Required Rate Panamax Vessel Type 2005 Year Built Purchase Price $38 mill Investment Period 5 Years OPEX $6500/day 60% Debt @ 5.50% All in Interest Loan Facility $27.2 mill (Straight Line Depreciation) Residual Value 10% Expected ROE Average Required Rate $20,362/day

Slippage: Good or Bad? On December 31st 2007: Drybulk Fleet 397.8 Orderbook 222.5 Estimated Deliveries in 2008 30.4 Estimated Deliveries in 2009 55.2 Data reported on Clarkson’s Drybulk T s Drybulk Trade Outlook Jan 2008 rade Outlook Jan 2008 On December 31st 2008: Drybulk Fleet 422.4 Orderbook 294.8 Drybulk Sector Actual Deliveries in 2008 29.7 Estimated Deliveries in 2009 71.3 Delivery Slippage in 2008 2.30% Estimated Deliveries in 2010 111.7 Data reported on Clarkson’s Drybulk T s Drybulk Trade Outlook Jan 2009 rade Outlook Jan 2009 Delivery Slippage in 2009 40.39% On December 31st 2009: Delivery Slippage in 2010 38.54% Drybulk Fleet 461.8 Orderbook 272.2 Actual Deliveries in 2009 42.5 Estimated Deliveries in 2010 125.6 Data reported on Clarkson’s Drybulk T s Drybulk Trade Outlook Jan 2010 rade Outlook Jan 2010 On August 31st 2010: Drybulk Fleet 509.7 Orderbook 275.9 Estimated Deliveries in 2010 77.2 Estimated Deliveries in 2011 119.2 Data reported on Clarkson’s Drybulk T s Drybulk Trade Outlook Sept 2010 rade Outlook Sept 2010

Surviving a high speed crash! The Drivers are alive!

Tanker Market (All market sources from Clarkson’s)

Freight Rates Overview Crude Tanker Freight Rates (in $/day) 300,000 VLCC Monthly Average Suezmax Monthly Average Aframax Monthly Average 240,000 180,000 120,000 60,000 0 2000-01 2000-07 2001-01 2001-07 2002-01 2002-07 2003-01 2003-07 2004-01 2004-07 2005-01 2005-07 2006-01 2006-07 2007-01 2007-07 2008-01 2008-07 2009-01 2009-07 2010-01 2010-07

Demand & Supply Overview Demand/Supply - Annual % Change 8% Demand YoY %Chg Supply YoY % Chg 6% 4% 2% 0% CAGR - Supply 1.99% CAGR - Demand 3.77% -2% -4% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 10% 5% 6.06% 6.24% 5.18% -0% 2.63% 1.49% 0.86% 0.38% -5% -2.71% -10% -8.43% -15% Cumulative imbalance between Supply-Demand growth -20% -18.81% -19.52% -25% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supply - Demand Growth: Tanker Sector (in mill tons) Supply - Demand Gr Supply - Demand Gr anker Sector (in mill tons) anker Sector (in mill tons) anker Sector (in mill tons) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Crude Oil 1,656 1,684 1,667 1,770 1,850 1,885 1,933 1,984 1,964 1,883 1,933 Products 523 553 586 586 636 691 736 763 781 756 774 Total Demand 2,179 2,237 2,253 2,356 2,486 2,576 2,669 2,747 2,745 2,639 2,707 YoY % Chg 3.32% 2.66% 0.72% 4.57% 5.52% 3.62% 3.61% 2.92% -0.07% -3.86% 2.58% Tanker Fleet 295.5 290.6 303.4 303.4 319.6 342.7 362.8 384.6 406.3 435.7 443.8 YoY % Chg 2.46% -1.66% 4.40% 0.00% 5.34% 7.23% 5.87% 6.01% 5.64% 7.24% 1.86%

China: Oil Demand Chinese Imported Oil Volumes (in mill bpd) 4,000 Crude Products 3,000 2,000 1,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Chinese Seaborne Imported Oil vs Global (in mill bpd) 60,000 Seaborne Oil Trade (ex China) Seaborne Oil Imports in China 45,000 30,000 15,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 In 2000 China’s In 2009 China’s share was 3.5% share was 7.6%

Newbuilding Orderbook Tanker Orderbook vs Fleet (in mill DWT) 600 Tanker NB Orderbook Tanker Fleet 450 300 150 0 2003 2004 2005 2006 2007 2008 2009 2010(f) In 2003 Orderbook Current Orderbook was 25% of Fleet is 28.6% of Fleet Tanker Vessel Deliveries (in mill DWT) 70.0 Tanker Deliveries 52.5 35.0 17.5 0 2003 2004 2005 2006 2007 2008 2009 2010(f) 2011(f) 2012(f) 2013+(f)

Investment Overview VLCC Vessel Type Year Built 2005 Purchase Price $90 mill Investment Period 5 Years $10,000/day OPEX 60% Debt @ 5.50% All in Interest Loan Facility Residual Value $65.7 mill (Straight Line Depreciation) Expected ROE 10% Average Required Rate $44.450/day Vessel Type Suezmax 2005 Year Built $65 mill Purchase Price 5 Years Investment Period OPEX $8500/day Loan Facility 60% Debt @ 5.50% All in Interest Residual Value $46.9 mill (Straight Line Depreciation) 10% Expected ROE $32,742/day Average Required Rate

Slippage: Good or Bad? On December 31st 2007: Tanker Fleet 383.6 Orderbook 157.5 Estimated Deliveries in 2008 40.5 Estimated Deliveries in 2009 57.7 Data reported on Clarkson’s Oil & Tanker T s Oil & Tanker Trade Outlook Jan 2008 rade Outlook Jan 2008 On December 31st 2008: Tanker Fleet 404.0 Orderbook 175.2 Tanker Sector Actual Deliveries in 2008 36.3 Estimated Deliveries in 2009 64.3 Delivery Slippage in 2008 10.37% Estimated Deliveries in 2010 51.4 Data reported on Clarkson’s Oil & T s Oil & Tanker Trade Outlook Jan 2009 rade Outlook Jan 2009 Delivery Slippage in 2009 24.88% On December 31st 2009: Delivery Slippage in 2010 29.92% Tanker Fleet 434.4 Orderbook 131.8 Actual Deliveries in 2009 48.3 Estimated Deliveries in 2010 64.5 Data reported on Clarkson’s Oil & Tanker T s Oil & Tanker Trade Outlook Jan 2010 rade Outlook Jan 2010 On September 30th 2010: Tanker Fleet 448.0 Orderbook 123.8 Estimated Deliveries in 2010 45.2 Estimated Deliveries in 2011 60.5 Data reported on Clarkson’s Oil & Tanker T s Oil & Tanker Trade Outlook Oct 2010 rade Outlook Oct 2010

Slow sinking boat... is it sunk?

Container Market (All market sources from Howe Robinson)

6M-2010 Review: Significant Recovery Slow Steaming Increased Demand Total East -West Trade Idle Supply 4,814,222 Q1 2009 Scrapping Q1 2010 5,518,507 14.63% %Chg Containership Scrapping 400 Expected TEU (in ‘000s) Actual TEU (in‘000s) 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010(f)

TEU Deliveries Container Fleet Development 14000 TEU (in ‘000s) 10500 7000 3500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010(f) Container Deliveries 2,000 Expected TEU (in ‘000s) Actual TEU (in‘000s) 1,500 1,000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010(f) 2011(f) 2012(f)