MONTHLY CANAL OPERATIONS SUMMARY – JULY 2007

LOCKS LANE OUTAGE AND PANAMA CANAL AUTHORITY TRANSIT RESERVATION SYSTEM

Beginning Wednesday, August 15, 2007, at 0001 hours through Friday, August 24, 2007, at 2359 hours (10 days), there will be restricted lockages in the WEST lane of Miraflores Locks. Relay operations will be conducted in the EAST lane. These restricted lockages are necessary in order to perform tow track repairs on the centerwall close to Miter Gates 114 and 118.

In addition, beginning Wednesday, August 15, 2007, at 0001 hours through Friday, August 17, 2007, at 2359 hours (3 days), the EAST lane of Pedro Miguel Locks will be out of service. Closing the East lane of Pedro Miguel Locks is necessary in order to perform dry chamber work on Miter Gates 50 and 51.

As a result of this work and pursuant to the rules governing the Transit Reservation System (MR’s Notice to Shipping No. N-7-2007), a reduction in the number of available booking slots will be in effect during this period, as follows:

• From 0001 hours on August 15, 2007 through 2359 hours on August 17, 2007, Condition 2 will be in effect;

• From 0001 hours on August 18, 2007 through 2359 hours on August 24, 2007, Condition 1.a will be in effect.

The number of slots per direction and restriction during Condition 1.a will be limited as follows:

• No more than eight (8) supers may be booked for transit in the southbound direction, and of these, no more than six (6) with “full daylight-hour” restriction. Similarly, no more than seven (7) supers may be booked for transit in the northbound direction, and of these, no more than five (5) with “full daylight-hour” restriction.

• The total number of “full daylight-hour” restricted supers shall not exceed eight (8) vessels per day.

• No more than four (4) regular vessels may be booked for transit in the same direction.

• Of the six slots available for regular vessels, no more than two (2) may be allocated to regular vessels transiting under restrictions.

Applications for reserved transits under these conditions will be received commencing 0900 hours August 12, 2007. The booking slot available through the Auction Process will continue to be offered during this period.

COMPLIANCE WITH PANAMA CANAL SHIPBOARD OIL POLLUTION EMERGENCY PLAN (PCSOPEP) REQUIREMENTS

Notice to Shipping N-12-2007 reiterates that all vessels approaching Canal waters for transit must submit a Panama Canal Shipboard Oil Pollution Emergency Plan (PCSOPEP) at least 96 hours prior to its arrival. This requirement, which became effective January 1, 2005, is applicable to vessels with fuel and/or oil cargo-carrying capacity of 400 MT or more. Non-compliance with the above constitutes a violation of Chapter IX, Section Four of the Maritime Regulations for the Operation of the Panama Canal, and may subject the vessel to sanctions in accordance with Chapter XI, Offenses, Sanctions and Sanctioning Proceedings of said Regulations.

Effective October 1, 2007, vessels failing to submit a compliant PCSOPEP at least 96 hours prior to arrival at Canal waters will be classified as non-compliant and will no longer be granted a grace period. Under such condition, the vessel will be scheduled as Tier 3 and will be charged accordingly, as well as for additional resources assigned to the vessel due to this non-compliance. In addition, the vessel will only be programmed for transit after the ship owners, operators or shipping agent have paid or provided satisfactory guarantees for the payment of the applicable sanction, which will be set at a minimum of $2,500.00. Subsequent arrivals to Panama Canal waters under similar non-compliance conditions will generate increased sanctions that may result in denial of transit.

Ship owners, operators, and masters are encouraged to ensure that their vessels comply with the PCSOPEP requirement and other Panama Canal regulations. For further information, please direct your inquiries to pcsopep@pancanal.com or by telephone to (507) 272-4635.