WEEKLY MARKET REPORT July 9th, 2010 / Week 27

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1 LY MARKET REPORT July 9th, 2010 / Week 27 Another week in the red as the market continues the correction - summer time is here and traditionally it is a period in the cycle where the market usually dips. There are however, other issues that have been affecting the market over the past 1-2 months or so, the most important being the lack of iron ore demand from China. Steel prices have been under pressure for sometime now - basically there is too much production and not enough demand. As a knock-on effect iron ore imports have been affected as steel mills have the tendency, in a falling end product environment to use up their stocks in an effort to curb their expenses and counter balance the falling returns from the reduced finished product prices. With capesize and panamax vessels being the workhorses for the iron ore cargoes it is of no surprise that this market segment has been the hardest hit - this week alone the BCI and BPI fell around 20%. The lack of cargoes compared to the available ships is causing owners to offer lower than last done in order to secure employment and minimize waiting times. At the same time we see fresh cargoes in the market, but they are not sufficient. Perhaps we will not see a turn in the freight rates until the grain season in the US kicks off and for now coal seems to be the only cargo driving the market together with the odd grain and iron ore cargoes. Going forward, world stock markets continued to rise on hopes that the global economic recovery is steady and growth will prove resilient, with investors viewing a surprise interest rate hike in South Korea as a sign of confidence in the recovery. After a fall in U.S. unemployment benefit claims the previous day, the Bank of Korea raised its benchmark interest rate from a record low (following the comparable rate hikes by Taiwan, India and Malaysia during the last two weeks) amid prospects for faster economic growth. So as the market is trying to find direction sales are limited but those done are at numbers which are healthy proving that forward expectation is there. The most significant reported sale is a structured deal from Japanese owners Mitsubishi Corporation, who sold en bloc two 180,000 dwt capesize re-sales (scheduled for delivery September 2011 from Hyundai Korea) for US$ million each with t/c attached for 10 years at US$ 27,000 per day - the buyers being Pacific Shipping Trust (PST) stock listed in the Singapore Stock Exchange and having made an announcement end of June. Interest for handysize bulkers remains strong as evident from the reported sale of the BRIGHT CORAL (24,173 dwt / blt 1995 Japan) for US$ million. WeberSeas, Weekly Market Report Page 1 of 10

2 The demolition market remains slow with Bangladesh still being inactive and seems that it will stay so for the remainder of this month and the beginning of August at least. Prices are however, stable with a small tendency of being on the increase as demand is strong but supply still scarce. TANKERS MOUNT OLYMPUS 40,011/03 - SAIKI - MIT 10,850 - COILED - COATED - IGS - SBT - COW - DH SS 11/2013, DD 10/2011 Sold for $24.6 mill. to undisclosed buyers. GOLDIE 29,998/87 - KURUSHIMA - B&W 8,556 - COILED - IGS - SBT - COW - SH - SS 12/2012 DD 11/2010 Sold for $2.7 mill. to Indonesian buyers. BULKERS HYUNDAI ,500/Sep-11 - HYUNDAI - B&W 25,370-9HH HYUNDAI ,500/Sep-11 - HYUNDAI - B&W 25,370-9HH Sold en bloc for $123.2 mill. to Singaporean buyers (Pacific Shipping Trust). Sale includes t/c attached for 10 years at $27,000/day, for both vessels. FOUR EARTH 75,864/84 - MITSUBISHI - SUL 16,741-7HH - SS 05/2013, DD 09/2011 Sold for $9.4 mill. to Far Eastern buyers. Sale includes t/c attached at $11,000/day until January SWIFT FORTUNE 71,240/82 - BRAZIL - SUL 17,402-7HH - SS 06/2012, DD 06/2010 Sold for $6.75 mill. to Hong Kong based buyers (Hua Feng Shipping) basis DD due. BRIGHT CORAL 24,173/95 - HAKODATE - MIT 7,200-5HH - C 4X30.5T - SS/DD 10/2010 Sold for $14.45 mill. to Greek buyers. SERRA DEVAL 15,786/80 - BRAZIL - B&W 7,200-4HH - C 4X10T HAKKI DEVAL 15,775/79 - BRAZIL - B&W 7,200-4HH - C 4X10T Sold en bloc for $5 mill. to Syrian buyers (Yamak). Old sale. MARIANO LAURO 7,100/06 - TURKEY - MAK 3,916-3HH - C 3X25T Sold at an auction for $4.8 mill. to Colombian buyers. CONTAINERS HDW-GAARDEN ,650/10 - GERMANY - SUL 43,018-3,426 TEU HDW-GAARDEN ,650/10 - GERMANY - SUL 43,018-3,426 TEU Sold en bloc for $49 mill. each to Greek buyers. RO-RO/PASSENGERS ATLANTIDA 800/10 - PORTUGAL - 4 x ABC 14, PASS CARS Sold for $36 mill. to Venezuelan buyers. WeberSeas, Weekly Market Report Page 2 of 10

3 FRESH FOR SALE TANKERS ALAM BITARA 45,513/99 - HALLA - B&W 10,492 - COILED - COATED - IGS - SBT - COW - DH Vessel inspectable in U.K./Continent/Gibraltar range around end of July. ADMIRAL L 41,100/90 - MITSUBISHI - MIT 7,001 - COILED - COATED - IGS - SBT - COW - DS Vessel currently in West Africa. BULKERS WILLIAM 23,829/95 - NAIKAI - B&W 7,111-4HH - C 4X30T Vessel inspectable in Maracaibo where ETA 26th-29th July. WeberSeas, Weekly Market Report Page 3 of 10

4 DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2010 THIS DATE TOTAL 2008 TOTAL ULCC/VLCC SUEZMAX AFRAMAX PANAMAX TANKER CAPE/COMBO (100,000 dwt +) PANAMAX/KAMSARMAX BULKER LOCATION TANKERS BULK CARRIERS CHINA INDIA BANGLADESH N/A N/A PAKISTAN DEMOLITION: INDIA M/T FRONT SABANG M/T SOMERSET (LPG) Reefer NEW ZEALAND STAR M/V FOREST VENTURE (MPP) 285,715/90-33,685 LDT - USD 405/LDT 18,270/81-8,250 LDT - USD 430/LDT 8,657/82-5,034 LDT - USD 370/LDT 8,453/77-5,429 LDT - USD 358/LDT CHINA M/V BADRI PRASAD 115,1/78-16,602 LDT - USD 362/LDT WeberSeas, Weekly Market Report Page 4 of 10

5 TYPE OF SHIP NEWBUILDING STATISTICS * TOTAL ORDERBOOK ULCC/VLCC SUEZMAX AFRAMAX PANAMAX MR ,000 DWT CAPESIZE/ MINI CAPE / VLOC ,000 DWT PANAMAX SUPRAMAX / HANDYMAX HANDYSIZE * Includes ALL vessels on order NEWBUILDING CONTRACTS Price No Size Type Yard Delivery (mill) Owners Comments 3 320,000 dwt Tanker Daewoo 2012/13 n/a American Eagle Tankers 3 158,000 dwt Tanker Samsung 2011/12 n/a Frontline + 2 options 2 156,000 dwt Tanker Rongsheng 2013 n/a N.S Lemos WeberSeas, Weekly Market Report Page 5 of 10

6 BALTIC DRY EX RATES THIS LAST % Baltic Dry Index ,58% Baltic Capesize ,98% Baltic Panamax ,56% Baltic Supramax ,92% Baltic Handysize ,29% Jan-05 4-Apr-05 4-Jul-05 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 4-Apr-08 4-Jul-08 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 BDI Jan-05 4-Apr-05 4-Jul-05 4-Oct-05 4-Jan-06 4-Apr-06 4-Jul-06 4-Oct-06 4-Jan-07 4-Apr-07 4-Jul-07 4-Oct-07 4-Jan-08 4-Apr-08 4-Jul-08 4-Oct-08 4-Jan-09 4-Apr-09 4-Jul-09 4-Oct-09 4-Jan-10 4-Apr-10 4-Jul-10 BCI Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Ju l Oct Jan Apr Jul-10 BPI WeberSeas, Weekly Market Report Page 6 of 10

7 BALTIC WET EX RATES THIS LAST % Baltic Clean Tanker ,61% Baltic Dirty Tanker ,17% Jan-05 8-Mar May Jan-05 8-Mar May Jul Sep Nov-05 1-Feb-06 5-Apr Jun Aug Oct Dec-06 1-Mar-07 3-May-07 5-Jul-07 7-Sep-07 9-Nov Jul Sep Nov-05 1-Feb-06 5-Apr Jun Aug Oct Dec-06 1-Mar-07 3-May-07 5-Jul-07 7-Sep-07 9-Nov-07 21/01/ Mar-08 BCTI 21/01/ Mar-08 BDTI 2-Jun Aug Oct Dec-08 4-Mar May Jul Sep Nov Jan-10 6-Apr Jun-10 2-Jun Aug Oct Dec-08 4-Mar May Jul Sep Nov Jan-10 6-Apr Jun-10 WeberSeas, Weekly Market Report Page 7 of 10

8 MAJOR CAPITAL MARKETS INDEX THIS LAST % S HIGH S LOW DOW JONES , ,02 244,26 2,50% , ,57 NASDAQ 2.175, ,36 74,04 3,% 2.535, ,95 AIM 664,30 648,50 15,80 2,44% 736,10 511,20 NIKKEI 9.535, ,60 344,14 3,74% , ,33 NAME SYMBOL PUBLIC COMPANIES DRY-CARGO SECTOR THIS LAST % HIGH LOW DIANA DSX 12,09 11,46 0,63 5,50% 18,24 11,75 DRYSHIPS DRYS 3,72 3,42 0,30 8,77% 7,99 3,28 EAGLE BULK EGLE 4,14 4,03 0,11 2,73% 6,75 3,91 EXCEL MARITIME EXM 4,88 5,02-0,14-2,79% 9,95 4,59 GENCO GNK 15,50 14,72 0,78 5,30% 29,20 14,20 NAVIOS HOLDINGS NM 4,76 4,55 0,21 4,62% 7,55 3,55 TBS INTERNATIONAL TBSI 6,14 6,07 0,07 1,15% 9,97 5,21 NAME CAPITAL PRODUCT PARTNERS SYMBOL TANKER/ENERGY SECTOR THIS LAST % HIGH LOW CPLP 8,33 7,99 0,34 4,26% 11,49 5,31 GENERAL MARITIME GMR 5,68 5,68 0,00 0,00% 9,42 5,15 OMEGA NAVIGATION ONAV 1,94 1,95-0,01-0,51% 4,50 1,73 STEALTHGAS GASS 4,10 4,49-0,39-8,69% 7,64 3,93 TEN TNP 14,18 13,96 0,22 1,58% 18,80 12,65 NAME SYMBOL CONTAINER SECTOR THIS LAST % HIGH LOW DANAOS DAC 3,89 3,58 0,31 8,66% 6,99 2,72 * Prices reflect Thursday s closing values. Prices in US$ WeberSeas, Weekly Market Report Page 8 of 10

9 RATES OF EX THIS LAST % Euro / $ 1,2681 1,2505 0,0176 1,41% Sterling / $ 1,5175 1,5184-0,0009-0,06% $ / Yen 88,585 87,875 0,710 0,81% $ / Nok 6,3483 6,4482-0,0999-1,55% $ / Won 1.208, ,00-13,500-1,10% Brent Crude 75,77 72,91 2,86 3,92% LIBOR (3-month) 0.53% 0.53 % % ESTIMATED VALUES* TANKERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS VLCC $110.0m $86.0m $62.0m (DH) $16.0m Suezmax $70.0m $60.0m $43.0m (DH) $12.5m Aframax $58.0m $43.0m $31.0m (DH) $9.0m Panamax $45.0m $35.0m $20.0m (DH) $7.0m Product $35.0m $26.5m $18.0m (DH) $4.5m BULK CARRIERS PROMPT RESALE 5 YEARS 10 YEARS 20 YEARS Capesize $74.0m $62.0m $48.0m $20.0m Panamax/Kamsarmax $45.0m $39.0m $34.0m $17.5m Supramax/Handymax $37.0m $32.0m $27.0m $13.5m * The above values are based and adjusted according only to recent reported sales and are subject to weekly changes. TANKER T/C RATES* 1 YR 3 YRS 5 YRS VLCC (300,000 dwt) 41,000/D 40,000/D 41,000/D SUEZMAX (150,000 dwt) 28,000/D 27,500/D 29,000/D AFRAMAX (110,00 dwt) 19,000/D 20,000/D 21,000/D PANAMAX (72,000 dwt) 16,000/D 17,500/D 18,500/D MR (45-50,000 dwt) 12,500/D 14,000/D 14,500/D * The above figures are representative rates for modern tankers only. BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $ $ $ $ cst: $ $ $ $ MGO: $6.50 $ $ $ WeberSeas, Weekly Market Report Page 9 of 10

10 WEBERSEAS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER Bobby Mitropoulos Tom Protonotarios Nicholas Sfinias Spyros Karamassis TANKER CHARTERING Basil Mavroleon Lefteris Mystriotis Dionysios Mitsotakis George Karalis TANKER OPERATIONS Kimon Polikratis ADMINISTRATION Yannis Mitropoulos Urania Savvaki Very Truly Yours, W E B E R S E A S (H E L L A S) S.A. The information contained in this report has been obtained from various market sources. WEBERSEAS (HELLAS) S.A. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. WSH will not be held responsible for any action or failure to take action upon reliance on information contained in this report WEBERSEAS (HELLAS) S.A. All Rights Reserved WeberSeas, Weekly Market Report Page 10 of 10