You are an Owner. You have received an indication from Charterers for cargo from Houston, TX, USA to Moji, Japan for the carriage of fertilizer. The inquiry reads: “+++Charterers invite Owner’s best for following: 12,000MT FERTILIZER, 5PCT MOLOO1SBSP HOUSTON, USA/ 1SBSP MOJI,JAPANFEB 1~10,2009FIOSTLOAD/DISCHARGE 4,000MT PWWD SHINCNO ADD/NO COMM+++ You search your internal position lists and find the closest suitable open vessel is expected as follows N/OPEN: MIAMI, FL, USA ON JAN 31ST, 2009NAME: M/V RICHVESSELDWT: 17,324 mtYR BUILT: 1987FLAG: PhilippinesCLASS: LRSPEED: 13BUNKER: F.O. 30 MT PDD.O. (AT SEA) 2MT PDD.O. (AT PORT) 4MT PDLOA/BEAM: 145.50m / 21mHOLDS/HATCHES: 5/5GEAR: 5 SETS X 25MT (SINGLE) HORIZONTAL SLEWINGCRANES GEMINI = 1 SET = 2 X 25MT = 50MT (USING#2 & 3 TWIN CRANES)

Now, let’s get into the voyage calculation. I normally like to start from the time component. Total time, in this situation, is the (1) ballast leg, (2) loading time (3) transit time, (4) discharging time and (5) weather. “Rotation Description DaysSavannah - Houston Sail 1,354 nautical miles 5Moji Sail 9,669 nautical miles via Panama 31Weather Factor 5% 2Houston Loading 3Moji Discharge 3          44 days”TIPSThere are many free sources of distance tables available on the Internet. Here are just a few:http://www.portworld.com/map/http://e-ships.net/dist.htmhttp://netpas.net/products/product_detail_DT_EN.php The next step is to gather all the cost components up. Many prices you will already have at hand but some prices you may need to ask a local port agent. Our costs are: Port costs @ Houston USD 25,000Port costs @ Moji USD 28,000Canal fees @ Panama USD 40,756Other expenses: USD 3,000Daily hire rate of vessel: USD 528,000USD 12,000 pdpr x 44 daysBunker Costs @ Sea USD 356,212 IFO380 x 30mt/day x USD 280/mt x 38 days DO x 2mt/day x USD 487/mt x 38 daysBunker Costs @ Port USD 11,688 DO x 4mt/day x USD 487/mt x 6 days

USD 992,656TIPSHere are a couple of tools to familiarize you with the above costs: Panama canal costs:http://www.therozogroup.com.pa/calculate.htmlBunker priceshttp://www.bunkerworld.com/ Given the total costs of USD 992,656, the breakeven freight rate would be USD 82.72/mt. I will not go into how much we should expect from our investments – I have decided to make my initial firm offer @ USD 100 pmt.You subsequently draft your firm offer for the voyage business as follows:OWNER’S ARE PLEASED TO OFFER FIRM AS FOLLOWS:REPLY BY: TODAY, JAN 27TH BY 1700HRS AT HOUSTON, TXFOR ACCOUNT OF: FCC (PLEASE ADVISE)NAME OF SHIP: M/V RICHVESSEL DWT: 17,324 mt YR BUILT: 1987 FLAG: Philippines CLASS: LR LOA/BEAM: 145.50m / 21m HOLDS/HATCHES: 5/5 GEAR: 5 SETS X 25MT (SINGLE) HORIZONTAL SLEWING CRANES GEMINI = 1 SET = 2 X 25MT = 50MT (USING #2 & 3 TWIN CRANES) ALL DETAILS ABOUT WOG POSITION & EST’ READINESS OF SAVANNAH ETS JAN 31ST

VESSEL: HOUSTON ETA FEB 5TH AGW UCE WP WOGCARGO DESCRIPTION & QUANTITY: 12,000MT FERTILIZER, 5PCT MOLOOLOAD PORT(S)/BERTHS: 1SBSP, HOUSTON, TXDISCHARGE PORT(S)/BERTHS: 1SBSP, MOJI, JAPANLAYDAYS/CANCELLING: FEB 1ST -10TH, 2009LOADING RATE: 4,000MT PWWD SHINCDISCHARGING RATE: 4,000MT PWWD SHINCFREIGHT RATE: USD 100 PMT PAYABLE AT HOUSTON, TX WITHIN 3 DAYS AFTER DEPARTURE AND PRIOR RELEASE OF B/LS, MARKED FREIGHT PAYABLE AS PER C.P.

DEMURRAGE RATE: USD 17,000 PDPR LOADING/DISCHARGING COSTS: FIOST ADDRESS COMMISSION: NONE INCL. BROKERAGE: NONE INCL. CHARTERPARTY FORM: GENCONSUBJECTS: - SUBJECT DETAILS BASED ON CHARTERER’S EXECUTED CP TO BE MUTUALLY REVIEWED AND AGREED – OFFER DOES NOT INCLUDE USE OF SHIP’S GEAR - ALL CHRTS SUBS TO BE LIFTED 24HRS AFTER FIXING MAIN TERMEND OFFER And so you have made your first firm offer and await charterer’s firm counter, if you’re lucky!The above has looked at a very simplified voyage estimation. This calculation just begins to touch the surface. Plod along

and you will find that there are every more details you can enter to your voyage calculation. -end