MONTE CARLO SIMULATION OF THE FREIGHT MARKET (1/1/2007)

(The following information is excerpted from the SHIPPING MONITOR of January 1,2007 (www.shipintel.com))

The FREIGHT RATE of the Bulk Carrier Index Fleet will decline six months for now by 6.8% and one year from now by 17.1% from its current value.

The FREIGHT RATE of the Tanker Index Fleet will decline six months from now by 1.7% and one year from now by 4.8% from its current value.

COMMENT: In both segments, rates for smaller vessels will decline more sharply than for larger vessels.  The probability distributions for Bulk Carriers are wider than for Tankers, indicating a higher level of volatility.