Shipping Terminology

Time Charter- Longer term contracts Spot charter- short term contracts

Oil Tankers
Perfect storm from about 2003-2004
Phase out of single hull tankers 2010 (but affected market at time because fleets were restructuring and ordering double hull tankers) High avg. age fleets, tankers needed to be scrapped High demand for Crude oil world wide Ship building yards packed and backlogged until 06 Rough sea weather (cyclical)

Other Oil Tanker Companies

Other Oil shippers prospered as well:
NAT, VLCCF, TNP, GMR, OMM

All paid high dividends during time, but since the outlook is not as good its probably not the safest time to get into them. Good dividend plays to watch though, just for cyclical opportunities.

Bulk Shipping
Ship Dry commodities such as coal, iron ore, steel, grains, etc.

Bulk Market Outlook

Has a better outlook than oil shipping in terms of supply and demand and room for growth. China, South Korea and India demanding a lot of commodities to develop China Olympics in 2008, building like crazy to show off to the world, increased steel demand Even beyond 2008, though, China Demand expected to continue to grow Fairly significant part of world fleet over age of 20 years, potential scrap candidates Supply growth expected to be lower than Demand growth, and not as many new build ships coming online until 2010.

Bulk Shipping Strategies

Potential in industry for safe or risky plays:
EXM heavily exposed to Spot rates

Bulk Shipping Strategies

EGLE has time charter strategy,
more predictable income and as result they offer a high dividend yield (currently 11.5%)

Still room for growth by expanding fleet

LNG Shipping
Not yet very developed market,
Needs a lot of infrastructure, because LNG needs offshore rigs to convert liquid to gas and vice versa for transportation.

Only company know of GLNG Potential, but needs more time to develop.