1. REGIONAL MARKET DYNAMICS THE OWNERS PERSPECTIVE

2. The Differences of Northern and Med / Black Sea Trade Differences between the Northern European and the Mediterranean companies mainly from : Differences between the Northern European and the Mediterranean companies mainly from :  Different market profiles – more TC fixings and COAs in Northern Europe when in our region we mainly see Voyage Charter fixtures  The average Northern European charterer is more experienced with chartering / trade / commerce / legalities when compared to the charterer in our region  The average owner is bigger in size in Northern Europe  Fleet age in Europe is younger than our region and charterers demand younger vessels whereas in our region age is not a high concern for charterers.  The MARPOL requirements are stricter in Northern Europe for the use of MGO and ITF compliance is a must when flying open registries flags.

3.  World economy and politics  Regulations  Fuel prices There are more common worries when it comes to : But more important it is: Common Worries  The market  The owners capability

4. Med and Black Sea Operator  The average regional operator trades 3 to 5 vessels  The total number of vessels is around 1.800 units with the majority having a dwt between 3.000 to 5.000 tons  The majority of the vessels around 65% are over 20 years old On the basis of our market knowledge and data in hand we estimate :

5. The Market Let’s now look at our market, that is the Mediterranean and Black Sea starting with the positive facts:  The world economy depends on shipping, over 85% of goods are transported by sea. In the European Union of the 28 states, Norway and Turkey, Short Sea Shipping transported goods represent more than 50% of all seaborne goods and in most countries the percentage is well above the 50%.  This holds true when looking at the statistics of ports in France, Italy, Spain, Greece, Bulgaria, Romania and Turkey. The bulk of the goods transported in these countries originates from the Mediterranean and the Black Sea.  The EU policy to divert road traffic to sea traffic. The Positive Side

6. The Negative Side  European economic policy  Less cargoes for same tonnage  Politically unstable Northern African countries and political problem  Crimea Conflict  Hard regulatory regimes  Never ending economic crisis

7. Do we expect any change for the better of the European economy and political status in Northern Africa countries and Ukraine ? Can there be any safe predictions ? Market Any safe predictions?

8.  We know that the European economy decision taking cannot be that swift as it is in USA and China. It has always been hampered by involving many decision centers from the European Central Bank, Brussels bureaucracy and peripheral obstructions.  We may safely predict that Med and Black Sea short sea shipping will not see any appreciable benefits from EU economic policy in the short and mid-term future. In praise of EU though we should say that the stability it offers is by itself a benefit and hopefully any steps taken for economic growth and / or short sea shipping support measures will reflect positively to short sea operators.

9. The Owner  The fleet is aging however, present TC rate do not pay back for investment in an new building.  The government together with companies should find new ways to finance ship building

10. Thank you! Burak Akartaş Pacific Shipping Group - President