Recent situation recap at Black Sea & Baltic Sea ports..MTS Shipping and Trading Ltd.

According to recent reports, the ice condition, which has negatively influenced the loading proceeds at Mariupol of Ukraine for quite some time, is finally declared over as of March 22, 2006. On the other hand, ice due is still being collected at Rostov-on-Don port of Russia. It is reported that there is currently not a very significant ice problem at Rostov; however, the ice due collection will be dropped as of April 1, 2006. Market level for representative cargoes in given destinations can be indicated as follows: • Average freight rate from Rostov; for scrap shipment on Volgodon type vessel of around 5,000 mt deadweight, estimated intake around 3,700 mt, for shipment to Marmara Sea at around $31/mt, for shipment to Nemrut at $33/mt. • Average freight rate from Ukrainian Black Sea port; for billet cargoes of approximately 15,000 mt vessel for shipment to Italian Adriatic port; at low $20s/mt • Average freight rate from Mariupol for 5,000 mt hot rolled coil shipment on FILO basis to Ashdod at around $28-30/mt, from Odessa at around $26-28/mt. Owners are trying to push the freight rates upwards, taking advantage of the long-lasted ice season this year. Cargo loads accumulated at port Mariupol during winter season start to commence loading one after the other; however freight market is expected to get healthier by mid-May. MTS Shipping and Trading Ltd. Phn: +90 212 2708100 Fax: +90 212 2843990 Email: shipping@mtsist.com WEB: www.mtsist.com