History & Growth. Pangaea Logistics Solutions Is. An Independent Ship Owner. & Operator Focused As An. Industrial Contract Carrier.

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2 History & Growth Pangaea Logistics Solutions Is The company began operations in 1996 and remains closely held and managed by active partners. The group operates between 50 to 70 vessels An Independent Ship Owner & Operator Focused As An of which 20 are owned. With a growing global staff, now in excess of 70 highly trained individuals, the company enjoys a quality reputation established through consistent performance, capability, & integrity. Industrial Contract Carrier In The Worldwide Transportation Of Dry Bulk Commodities

3 Pangaea Logistics Solutions Org Chart

4 Now our 21st YEAR!

5 Vessel Type Year Ice Country 1 m/v Bulk Juliana Supramax 2001 Japan 2 m/v Bulk Trident Supramax 2006 Japan 3 m/v Bulk Beothuk Supramax 2002 Japan 4 m/v Bulk Newport Supramax 2003 Japan 5 m/v Bulk Freedom Supramax 2005 Japan 6 m/v Bulk TBN Supramax 2008 Japan 7 m/v Bulk Power Supramax 2010 China 8 m/v Bulk Progress Supramax 2010 China 9 m/v Bulk Endurance Ultramax C Japan 10 m/v Bulk Destiny Ultramax C Japan 11 m/v Bulk Pangaea Panamax 1999 Japan 12 m/v Bulk Patriot Panamax 1996 Japan 13 m/v Nordic Odyssey Panamax A Japan 14 m/v Nordic Orion Panamax A Japan 15 m/v Nordic Oshima Panamax A Japan 16 m/v Nordic Odin Panamax A Japan 17 m/v Nordic Olympic Panamax A Japan 18 m/v Nordic Oasis Panamax A Japan 19 m/v Nordic Barents Handymax A S. Korea 20 m/v Nordic Bothnia Handymax A S. Korea Note: m/v Bulk Power & Progress on 5 yr bareboat charter in. Pangaea Controlled Fleet [60 vsls] Owned Operated

6 OUR BUSINESS IS BUILT AROUND CARGO Profitability of backhaul focus Pangaea Logistics Solutions: Backhaul Trip Revenue ($18/t) 900,000 Bunkers & Port Costs Vessel Hire (28 days) (200,000) (250,000) Voyage Result 450,000 Fronthaul Eastern N.A. Trip Revenue ($17/t) 870,000 Bunkers & Port Costs Vessel Hire (35 days) (200,000) (315,000) Voyage Result 355,000 ECSA Pangaea Logistics Solutions: Ballast Revenue 0 Bunkers Vessel Hire (8 days) (55,000) (72,000) Voyage Result (107,000) Europe Typical Operator: Ballast Revenue 0 Bunkers Vessel Hire (13 days) (90,000) (120,000) Voyage Result (210,000) Typical Operator Voyage Result = $145,000 PLS Voyage Result = $678,000 Difference = $533,000

7 Pangaea Trade Routes + Ice Routes

8 Niche Trades: Ice Class Vessels

9 Hard Work & Niche Trades Translate into Results Source: Fearnley PANL has outperformed market average in SMX and PMX sectors by an average of US$ 3,250 per day over the last 5 years based on book of contracts & projects.

10 Hard Work Operating & Niche Trades Translate into Results The bottom line...our business structure works!

11 TEAM WORK - THANK YOU

12 Ship Management in the US &Tri-State Area Neil McLaughlin

13 Ship Management History in the USA -Pre Revolution: New source of commodities as Colonies settled. Due to vast forests Shipbuilding emerges as early industry. Couple with trade. Birth or a powerful merchant lead society. -Revolution: driven by merchants. No taxation w/out representation & Trade restrictions on Colonies goods. In Rhode Island Merchants lead by the Brown Family burned the British Customs schooner Gaspee that was enforcing Navigation Acts for Crown in Whaling Industry & advent of the Baltimore Clipper: Energy (lamp oil), growing speed of trade and growth of the American West. Culminating in US having largest Merchant Marine worldwide by 1861 (eve of Civil War). -Post Civil War & Seamen s Act of 1915: growth of the concept of Unions starting in 1870s. Codified with laws like the Seaman s Act of 1915 put US Flagged vessels at an economic disadvantage against countries lacking similar requirements / safeguards : Liberian Flag of Convenience starts. 18 years later largest registry in the world Tax Reform Subpart F: Ultimately acted as disincentive for US based shipping companies to stay in US reversed this trend to a large degree.

14 Ship Management in the USA Today There is more activity within the USA / Tri-State area than many shipping practitioners realize: -Jones Act Companies and US Flagged Shipping Companies, and brown water lakes and river shipping companies. -Foreign Flag Fleets: Ship management for the FOC bulker, tanker, offshore, and to a lesser degree container industries / fleets, has a strong presence within the USA & the Tri State Area, which from the early / mid 2000s through to today, has experienced a resurgence. -Owners, Operators, Pool Managers, Financial Owners, etc. Collectively there is a large group of organizations that require ship management in one form or another within the USA.

15 Bulker Co s w/ Management in USA

16 Benefits of US Based Ship Management History: To a certain degree it s in our country s DNA. Maritime Academies: Train talented, dedicated, and motivated personnel keen to build a career in the industry both at sea and, ultimately, onshore. Time zone: Second only to Zulu Time (GMT) Zone. The entire Americas are within our TZ and these countries from Canada to Chile are cargo rich. East Coast South America, USG Gulf. Proximity to Major Charterers: e.g. Cargill, ADM, Exxon, Chevron, Vale, Potash Corp Canada, Koch Industries. Commercial Brokers / Traders: Traditionally fragmented on the dry bulk side but we ve seen a recent influx of some of the largest brokerage shops worldwide (e.g. BRS, Clarksons). While other brokers Compass and Pierot have always acted as a corner stone in the USA. Proximity to large scale / debt and equity finance centers: It s become an increasingly capital intensive industry. Influx of PE, largest market for publically listed shipping companies, active banking markets. Active Community / Trade Organizations: SMA, CMA, ASBA, Marine Money, Capital Link, SCI, YSPNY.

17 Drawbacks US Based Ship Management Costs: Overall SG&A costs often tend to be higher in the US for ship management personnel than many other maritime countries. Technical Management: Global market for technical management of vessels constantly driven by a desire to bring daily OPEX levels to minimum. The technical personnel within an office tend to be ex Masters and ex Chief Engineers. We do not have the same depth to draw from as active maritime nations for these personnel. Green card issues. Industry Awareness: Few people in the USA graduating non maritime colleges likely know of our industry as a potential career path lots of competing career choices / pay structures available. Decentralized Maritime Cluster: Once centralized: bankers, brokers, lawyers, owners, all within close proximity of Battery Park / Lower Manhattan.

18 Optimal US Based Ship Management Structure Commercial Team It looks like this.pangaea s Newport Office Operations Team Financial Team Legal Team (optional) Management Team Technical Team (abroad)

19 Thoughts for the SMA with this Ship Management Landscape Increase Awareness (create dedicated SMA relationship managers) Advertise Efficiency & Speed Cost Competitive Forum Create a US Shipping Directory (online ok) Target Owners/Charterers as well as brokers for inclusion of NY arbitration Revitalize membership

20 Thank You Neil McLaughlin