1. Quincannon Associates Inc. Shipbrokers Presentation to INTERTANKO’S CHEMICAL TANKER SEMINAR April 8, 2008 Panama City, RP Soren Wolmar Quincannon Associates, Inc.

2. Quincannon Associates Inc. The Chemical Tanker Market Development Trends which will influence the market Outlook

3. Quincannon Associates Inc. Developments Leading to Present Market Increase in cargo volumes, in particular to China New Regulations: IMO/Marpol, upgrading cargoes Phasing out single hull vessels Charterers’ vetting systems High CPP markets

4. Quincannon Associates Inc. Developments Leading to Present Market Consolidation of Owners/Charterers Anti-trust issues Undersupply of tonnage in late 1980’s/early 1990’s Major Owners’ newbuilding programs at or below replacement in 2000’s Longest lasting high market

5. Quincannon Associates Inc.

12. TOP 12 PRODUCTS BY VOLUME 2006 Upgraded in 2007 by New IMO Rules Palmoil 29.0 Million Tons, upgraded to IMO 2 Methanol 15.0 Million Tons, upgraded to IMO 3 Soybeanoil 10.0 Million Tons, upgraded to IMO 2 Caustic(liq) 8.7 Million Tons, unchanged (IMO 3) Sulfuric Acid 8.2 Million Tons, unchanged (IMO 3) Molasses 7.3 Million Tons, unchanged (none) MEG 5.8 Million Tons, upgraded to IMO 3 MTBE 5.3 Million Tons, upgraded to IMO 3 Xylene 5.1 Million Tons, upgraded to IMO 2 Phosphoric Acid 4.1 Million Tons, unchanged (IMO 3) Ethanol 3.5 Million Tons, unchanged (none) UAN 3.1 Million Tons, upgraded to IMO 3

13. Quincannon Associates Inc. Future Trend on Tonnage The chemical tanker fleet is growing Fleet composition is changing: Smaller vessels, simple/sophisticated Larger vessels mostly simple General: less tanks/segregations Large owners’ fleet remain constant Mid size owners growing, new trade routes With 30 vsl + 1998: 4, 2008: 9 New owners entering market

14. Quincannon Associates Inc. Supply of Tonnage QA Fleet Review of the approximately 30 owners serving the U.S. market is published each year. The number of owners serving this market varies slightly from year to year. Year Existing vsls/dwt of which +20 new buildings 2001554/12.0 mill 78/2.0 mill 36/1.0 mill 2002567/12.3 mill 112/2.6 mill 65/2.0 mill 2003597/13.5 mill 125/3.1 mill 104/3.1 mill 2004628/15.0 mill 111/2.8 mill 90/2.3 mill 2005680/16.4 mill 111/2.9 mill 128/3.1 mill 2006 680/16.1 mill 125/3.5 mill 154/4.2 mill 2007 699/16.9 mill 114/3.1 mill 173/5.0 mill

15. Quincannon Associates Inc. Supply of Tonnage Chemical tankers between 1,000 dwt and 50,000 dwt with IMO classification: EXISTING +20 YEARSNEW BUILDINGS Year Vsls/DwtVsls/DwtVsls/Dwt 2004: 2169/33 mill 625/6.8 mill 320/7.8 mill 2005:2295/36 mill 663/7.1 mill 475/10.1 mill 2006: 2487/41 mill 738/8.3 mill 523/10.1 mill 2007:2677/45 mill* 726/8.7 mill 755/16.1 mill

16. Quincannon Associates Inc. Future Trend on Tonnage Modifying factors: Availability of finance/credit crunch Delay in delivery of new buildings Cancellation of new buildings

17. Quincannon Associates Inc. Change in Fleet Composition Chemical Tankers and Tankers for Oil/Chemicals (approximate figures for 2007) Vessel size (dwt)Existing Fleet 20 Years+ New Buildings 1,000 - 5,000 727304 64* 5,000 - 10,000 617219 122 10,000 - 20,000 514 89 313 20,000 - 30,000 134 55 25 30,000 - 40,000 340 60 95 40,000 - 50,000 345 35 136 TOTAL 2,677 762 755 *Does not include large number of small vessels being built in China for domestic trade

18. Quincannon Associates Inc. Future Trends on Cargo 2007: about 150 mill chemicals/vegoils shipped Vegoil growing by 7.5% to 10% pa Chemicals growing by 6% pa

19. Quincannon Associates Inc. Future Trends on Cargo Ton/miles: China, SE Asia and AG will replace U.S. and European production Chemical ton/miles will be reduced Bio Diesel, Ethanol and vegoils will increase ton/miles More emphasize on regional trade, less on deep sea Recession, less volume, change in direction

20. Quincannon Associates Inc. Other Factors Impacting Market Chemical tanker/clean tanker market interaction Future restriction on last cargoes Political turmoil Weather related production interruption Port congestion

21. Quincannon Associates Inc. Example of Weather Related Market Interruptions Hurricane Katrina

22. Quincannon Associates Inc. Outlook More vessels/capacity More owners competing Declining or steady ton/miles Turning point in the market The end of the longest lasting high market Open questions: Recession, declining cargo volumes New building prices/steel prices Chinese shipbuilding policy in low market

23. Quincannon Associates Inc. Shipbrokers Thank you