WEEKLY MARKET REPORT October 19th, 2007 / Week 42

TELEPHONE: ONE EXECUTIVE DRIVE TELEFAX: 201-585-9999 FORT LEE, NEW JERSEY 07024 201-585-9998 ships@compassmar.com WEEKLY MARKET REPORT October 19th, 2007 / Week 42 Dry cargo rates softened slightly in mid week but the BDI closed higher for the week (only Cape and Panamax indexes finished marginally lower) but few (if any) sellers are lowering price ideas! On the tanker side, prices for modern double hull tankers are unfazed by charter rates that still do not come close to justify price levels. Product tanker values keep moving higher: M/T "BRITISH EXPERIENCE"/"BRITISH ENGINEER" (37,340/2003-2003 - Coiled/Coated) were sold for $46.25 mill. each compared with 2 x 2002 built sisters sold in May for $42.5 mill. each. How much future arbitrage will buyers have at today's prices? Tonnage SUPPLY continues to grow with virtually no demolition ("RECYCLING") in sight and newbuilding vessels of all types are being delivered in increasing quantities. On the DEMAND side, oil crossed the $90/b level but optimism remains for strong continued world economic growth. President Hu Jintao of China announced this week that China will aim to QUADRUPLE per capita GDP by 2020 (both social and economic policy)! Throw in India's economic expansion and hope springs eternal! The public shipping companies continue to be active (what credit crisis?). With ship prices at such high levels (and very few sellers), we expect there will be increased activity in the M&A front in the near future. Quintana announced earlier in the week that they "evaluate strategic alternatives in order to enhance shareholder value" implying that the company is 'in play'. Also, PT Berlian Tankers confirmed their purchase of Chembulk Tankers for $850 mill. The fleet includes 19 modern stainless steel chemical tankers (3 newbuildings delivering in 2007, 2008, 2009 plus 16 existing vessels). Alternatively, Oceanaut (a SPAC formed by Excel Maritime Carriers) bought 9 bulkers for $700 million cash (see below) from Enterprises Shipping (Victor Restis) and chartered the vessels to the sellers for various periods ranging from 2-5 years. Interestingly, the Restis family acquired 30% of Oceanaut by paying $82.5 mill. for 10,312,500 shares of common stock at $8.00/share. Equity continues to pour into shipping on the private side too (so don't expect ship prices to go down for a long, long, time). First Reserve Corporation (private equity group) has announced a $300+ mill. fund for shipping and energy related acquisitions and Merrill Lynch has teamed up with V Financial (part of V Ships) to provide equity investments in shipping. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 1

TANKERS: ESPERANZA 120,880/93 - MITSUI - B&W 19,000 - COILED - SBT - IGS - COW SH Sold for $31 mill. to Chinese buyer (for conversion). SEA LION 97,002/91 - KOYO MIHARA - SUL 13,800 - COILED - SBT - IGS - COW DS Sold for $26.5 mill. to Chinese buyer. FORMOSA FOURTEEN 45,400/05 - SHIN KURUSHIMA - MIT 12,600 - COATED - COILED - SBT - IGS - COW - IMO II/III - DH Sold for $56 mill. to undisclosed buyer. SEATREASURE 37,623/88 - KASADO KUDAMATSU - SUL 10,300 - COATED - COILED - SBT - IGS - COW - DS Sold for region $13 mill. to UAE based buyer (Fal Bunkering). BRITISH EXPERIENCE / BRITISH ENGINEER 37,340/03 - HYUNDAI MIPO - B&W 12,870 - COATED - COILED - IGS - IMO III - DH Sold for $46.25 mill. each to Cypriot buyer (Interorient). GEORGY USHAKOV 19,996/01 - RUSSIA - B&W 11,665 - COATED - COILED - SBT - IGS - COW - DH STEPAM MAKAROV 19,996/00 - RUSSIA - B&W 11,665 - COATED - COILED - SBT - IGS - COW - DH IVAN KRUZENSHTERN 19,996/00 - RUSSIA - B&W 11,665 - COATED - CLD - SBT - IGS - COW - DH MUROVDAG 15,885/99 - GERMANY - B&W 7,205 - COATED - COILED - IGS - IMO 2/3 DH ILANDAG 15,885/99 - GERMANY - B&W 7,205 - COATED - COILED - IGS - IMO 2/3 DH SHAKHDAG 15,885/99 - GERMANY - B&W 7,205 - COATED - COILED - IGS - IMO 2/3 - DH DMITRY LAPTEV 15,885/98 - GERMANY - B&W 7,205 - COATED - COILED - IGS - IMO 2/3 - DH BABADAG 15,885/97 - GERMANY - B&W 7,205 - COATED - COILED - IGS - IMO 2/3 - DH Sold for $231.5 mill. en bloc to Singapore buyer (Ocean Tankers). Sale includes t/c for 7 years at $15,300 net/day with option for additional 3 years. 3 x ETHYLENE/LPG STX RESALES 9,141/08/09 - STX - 9,000 CBM Sold for $46.5 mill. to Japanese buyer (Kosan). BULKERS: Oceanaut Inc. purchased the below 9 bulk carriers this week for $700 mill. "en bloc" and chartered them back to the Sellers as follows: Name Dwt/Yr blt Shipyard Price Charter rate Expiration date 2xSungdongResale 172,000/09 Sungdong-Korea $131 mill. each $45,000/d 2014 Miden Max 73,515/93 Hyundai $61 mill. $38,000/d 3 rd quarter 2009 Bremen Max 73,503/93 Hyundai $60.5 mill. $55,000/d 1 st quarter 2009 Bergen Max 72,338/94 Hyundai $50 mill. $28,500/d 1 st quarter 2009 Hamburg Max 72,338/94 Hyundai $63.5 mill. $55,000/d 1 st quarter 2009 2xKouanResale 53,000/08 Kouan-China $69.6 mill. each $42,000/d 2010 1xKouanResale 53,000/09 Kouan-China $64 mill. $33,000/d 2010 COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 2

SWS RESALE 177,000/10 - SWS - B&W 22,923-9HH Sold for $96 mill. to Greek buyer (old sale). GOLDEN JASMINE 70,109/94 - JIANGNAN - B&W 16,674-7HH GOLDEN JADE 70,046/94 - JIANGNAN - B&W 16,674-7HH Sold for $125 mill. en bloc to undisclosed buyer. FLORA 52,370/93 - UKRAINE - B&W 12,912-8HH - C 4X30T Sold for $45.5 mill. to Indian buyer. ARISBE 34,142/86 - HAYASHIKANE - SUL 12,970-5HH - C 4X25T - 6,439 LDT Sold for $29.75 mill. to undisclosed buyer. C. CHAMP 30,326/84 - KANDA - MITSUBISHI 7,730-5HH - C 4X25T - 7,789 LDT Sold for $15 mill. to undisclosed buyer. Sale includes t/c at $11,700/day until December 2008 February 2009. GRAIN TRADER 30,084/79 - CROATIA - MAN 10,340-5HH - C 4X10T - 7,500 LDT Sold for $7.0 mill. to Croatian buyer. Sale includes t/c at $20,000/day until February-April 2008. (Old sale) TAXIARCHIS SIERRA 21,664/85 - SHIN YAMAMOTO - B&W 6,700-4HH - C 3X30T, D 1X25T - 5,416 LDT Sold for $15 mill. to South Korean buyer. CHANG JIN 6,699/82 - KOCHI - MITSUBISHI 3,900-3HH - D 4X15T - 1,945 LDT Sold for $2.1 mill. to Chinese buyer. CONTAINERS: BUXENERGY / BUXLIBERTY 63,300/09 - DAEWOO MANGALIA - SUL 62,240-4,892 TEU Sold for $90 mill. each to US based buyer (Seacastle Inc). MOL BRILLIANT / GITTE 9,868/92 - DENMARK - MAK 13,595-4HO 6HA - C 2X40T - 976 TEU Sold for $28.63 mill. en bloc to Greek buyer. Sale includes t/c attached for both vessels as follows: MOL Brilliant: on t/c at $10.280/day until August 2008. Gitte: on t/c at $11,385/day until April 2008, with an option to extend for additional six months at $12,400/day. TWEENDECKERS: BLUMARLIN 9,444/95 - BULGARIA - B&W 6,091-3HH - C 2X40T - 518 TEU Sold for $16.8 mill. to undisclosed buyer. REEFERS: WALILI 4,300/80 - MIHO SHIMIZU - HANSHIN 3,840-2HH - D 2X5T - 214,997 CBF Sold for $2.1 mill. to undisclosed buyer. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 3

NEW SHIPS FOR SALE: BULKERS: SOYANG 66,764/84 - SUMITOMO - SUL 10,150-7HH Vessel is proceeding to Singapore for bunkering with ETA 25th October. Thereafter will proceed to Turkish ports. ORIANA C 38,706/85 - KOYO MIHARA - B&W 8,750-5HH - C 4X25T Vessel is due St Petersburg between October 26-18th for Chennai (to be confirmed) on about November 25-29th. ATLANTIC ID 26,842/86 - USUKI SAIKI - MITSUBISHI 7,170-5HH - C 4X30T Vessel en route to Brake, ETA 20th October to load, for about 2-3 days. TANKERS: CHELSEA 298,432/95 - DAEWOO - SUL 35,973 - COILED - SBT - IGS - COW - DH ETA Pasir Gudang, Singapore on the 24th October for discharge. JAG ANJALI / JAG ARPAN 64,000/86 - HYUNDAI - B&W 11,280 - COATED - COILED - SBT - IGS - COW - DS Jag Anjali: Vessel at Hazira for discharge where ETA 19th October, thereafter vessel s schedule unknown at present but she may sail towards Fujairah. Jag Arpan: Vessel currently at Banias for discharge. JAG ANJALI 46,101/03 - SHIN KURUSHIMA - B&W 12,870 - COATED - COILED - IGS - DH Vessel can be inspectable in mid November. Owners invite best offers subject to inspection by 25th October, London closing. HALIFAX 29,753/92 - GUANGZHOU - B&W 8,394 - COATED - COILED - SBT - IGS - COW - DB Vessel is trading clean petroleum products in Mediterranean and UK continent. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 4

NEWBUILDINGS NEWBUILDING STATISTICS TYPE OF SHIP 2007 2008 2009 2010 2011 2012 2013 * TOTAL ORDERBOOK ULCC/VLCC 7 36 69 42 15 3 172 ( 0 ) SUEZMAX 4 20 58 42 15 139 ( 0 ) AFRAMAX 10 74 106 80 20 290 ( -4 ) PANAMAX 11 40 50 18 4 123 ( +1 ) MR 58 196 201 157 34 1 647 ( +11 ) 0-35,000 DWT 119 187 191 115 28 5 645 ( +39 ) CAPESIZE 11 50 122 233 124 13 553 ( +46 ) 80-100,000 DWT 12 39 65 113 79 8 316 ( +3 ) PANAMAX 16 69 45 62 21 7 220 ( +10 ) SUPRAMAX 39 147 225 199 82 11 703 ( +12 ) HANDYSIZE 31 104 183 136 45 9 3 511 ( +13 ) * Includes ALL vessels on order NEWBUILDING CONTRACTS No. Size Type Yard Delivery Price (mill) Owners Comm. 2 x 110,000 dwt Tank Hudong-Zhonghua 2010/11 undisclosed 2 x 107,500 dwt Tank Tsuneishi 2009/10 $60 Transpetrol 2 x 50,500 dwt Prod Guangzhou 2010/11 J. Lauritzen 4 x 46,000 dwt Prod Mipo 2009/10 ST Shipping 6 x 17,000 dwt Chem Jin Mao Shipbuilding 2009/10 $30 Seacrest Shipping 4 x 13,000 dwt Chem 21st Century 20010 Sinochem Shipping 2 x 9,000 dwt Prod Chuangdong 2009 V-Ships 3 x 5,300 dwt Chem Eregli Shipyard 2009/10 $29.5 J.T. Essberger 4 x 180,000 dwt Bulk Orient Shipyard 2009/10 $90 Germans Opt 2 2 x 176,000 dwt Bulk Zhoushan Jinhaiwan 2009 $98 Reederei H. Vogemann 2 x 170,000 dwt Bulk STX 2009 $110 Europeans 6 x 105,000 dwt Bulk STX Dalian 2010/11 $63 Essar Shipping 2 x 105,000 dwt Bulk STX Dalian 2010/11 $63 Ince Denizcilik 4 x 94,000 dwt Bulk COSCO Dalian 2009 $60 Noble Shipping 2 x 92,500 dwt Bulk Jiangsu 2010 Conti Reederei 2 x 80,700 dwt Bulk STX 2011 GE Shipping 1 x 58,500 dwt Bulk Kawasaki 2010 Noble Shipping 4+4 57,000 dwt Bulk Jin Mao 2009/10 $38 Altantic Bulk Carriers 3 x 54,000 dwt Bulk ABG Shipyard 2010/11 $38 Precious Shipping COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 5

3 x 33,500 dwt Bulk Jin Mao 2010 $28 Pitiousa Shipping 3 x 33,000 dwt Bulk Orient Shipyard 2010 Bongshin 4 x 30,000 dwt Bulk New Century 2010/11 Cosmos Marine Management 1 x 30,000 dwt Bulk Taizhou 2010 $30 STX Pan Ocean 4 x 14,450 dwt Mpp Mokpo Shipbuilding 2010 Arklow Shipping 4 x 8,600 dwt Teu China Shipbuilding 2010/11 $120.7 OOCL COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 6

KEY INDICATORS INDICES RATE OF EXCHANGE BALTIC EXCHANGE RATES THIS WEEK LAST WEEK CHANGE $ / Won: 913.7300 Baltic Dry Index 10798 10695 +103 $ / Nok: 5.371700 Baltic Capesize 15412 15477-65 Euro / $: 1.427800 Baltic Panamax 10854 10913-59 Stlg / $: 2.047400 Baltic Supramax 6790 6501 +289 $ / Yen: 115.2500 Baltic Handysize 3161 2980 +181 LIBOR (3-mos) / 5.18% Brent Crude $84.22 $79.74 +4.48 BALTIC TANKER INDICES BALTIC DRY INDICES 3,500 3,000 2,500 BDTI INDEX BCTI INDEX 18,000 16,000 14,000 12,000 BDI BCI BPI BSI 2,000 10,000 1,500 8,000 6,000 1,000 4,000 500 2,000 0 0 02-Jan-04 02-Jul-04 02-Jan-05 02-Jul-05 02-Jan-06 02-Jul-06 02-Jan-07 02-Jul-07 01-Jun-04 01-Oct-04 01-Feb-05 01-Jun-05 01-Oct-05 01-Feb-06 01-Jun-06 01-Oct-06 01-Feb-07 01-Jun-07 01-Oct-07 ESTIMATED VALUES TANKERS NB PROMPT 12 MONTH 5 YEARS 10 YEARS 20 YEARS RESALE T/C VLCC 300,000 dwt $143.0m $153.0m $133.0m $105m (DH) $33.0m (SH) $50,000 PD Suezmax 150,000 dwt $88.0m $105.0m $96.0m $75.0m (DH) $26.0m $42,000 PD Aframax 105,000 dwt $70.0m $78.0m $67.0m $55.0m (DH) $20.0m (SH) $32,000 PD Panamax 70,000 dwt $64.0m $66.0m $56.0m $48.0m (DH) $17.0m $27,500 PD Product 47,000 dwt $52. 0m $58.0m $53.0m $43.0m (DH) $17.0m $25,000 PD BULK CARRIERS Capesize 170,000 dwt $96.0m $160.0m $133.0m $101.0m $72.0m $185,000 PD Panamax 74,000 dwt $50.0m $100.0m $84.0m $71.0m $40.0m $89,000 PD Supramax 52,000 dwt $43.0m $84.0m $72.0m $56.0m $34.0m $67,000 PD BUNKER PRICES FUEL GRADES ROTTERDAM FUJAIRAH PIRAEUS SINGAPORE 380cst: $427.00 $438.00 $449.50 $451.00 180cst: $449.00 $448.00 $477.50 $460.00 MGO: $705.00 $727.50 $756.00 $727.50 COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 7

DEMOLITION DEMOLITION STATISTICS TYPE OF SHIP THIS DATE 2007 THIS DATE 2006 2006 TOTAL 2005 TOTAL ULCC/VLCC 1 0 0 1 SUEZMAX 1 0 0 2 AFRAMAX 8 12 14 15 PANAMAX TANKER 3 4 7 15 CAPE/COMBO (100,000 dwt +) 0 3 3 2 PANAMAX BULKER *2 (*1 pmax+1 post pmax) 13 13 5 ESTIMATED DEMOLITION PRICES LOCATION TANKERS 6-10,000 LT TANKERS 15-20,000 LT BULK CARRIERS CHINA 300 305 265 SUB-CONTINENT 530 540 490 DEMOLITION: No sales to report this week. COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 8

COMPASS CONTACTS SALE & PURCHASE MOBILE PHONE NUMBER AOH Terry Chance 201-463-3834 908-232-5574 Bart Lawrence 201-463-3835 914-997-7599 Tom Linter 201-463-3826 973-949-4218 Tom O Toole 845-597-4150 845-783-9092 Tom Roberts 201-463-3832 914-242-5436 Sophus Schanche 201-463-3831 973-283-2848 PROJECTS & FINANCE Basil Karatzas 201-463-3828 713-545-5990 ADMINISTRATION Joseph Kaufmann 201-463-3833 845-628-0469 Very Truly Yours, COMPASS MARITIME SERVICES, LLC The information contained in this report has been obtained from various market sources. COMPASS MARITIME SERVICES (CMS) believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. CMS will not be held responsible for any action or failure to take action upon reliance on information contained in this report. 2007 COMPASS MARITIME SERVICES, LLC All Rights Reserved COMPASS MARITIME SERVICES, LLC * FORT LEE, NJ 07024 * USA Page 9