| Bermuda                                                       | 98-0225954                        |
|---------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction ofincorporation or organization) | (IRS Employer Identification No.) |
| Commerce Building,Chancery Lane,Hamilton HM 12, Bermuda  |
| (Address of principal executive offices)                      |
|                                                          |
| (441) 295-9230                                                |
|                                                          |
| (Registrant's telephone number, including area code)          |

| N/A                                                                                |
|------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report) |

| As of August 8, 2009, the registrant had outstanding 17,513,371 Class A common shares, par value $0.01 per share, and 12,390,461 Class B common shares, par value $0.01 per share. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of of Contents

|                                           |                                                                                                             | Page   |   |
|------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------|--------|
|  PART I:  FINANCIAL INFORMATION |                                                                                                             |   |
| Item 1                                         | Financial Statements                                                                                             |   |   |
|                                           | Consolidated Balance Sheets as of June 30, 2009 (Unaudited) and December 31, 2008                                | 3      |   |
|                                           | Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2009 and June 30,2008  | 4      |   |
|                                           | Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 30, 2009 and June 30, 2008  | 5      |   |
|                                           | Consolidated Statement of Changes in Shareholders' Equity (Unaudited) for the six months ended June 30,2009 | 6      |   |
|                                           | Notes to Consolidated Financial Statements                                                                       | 7      |   |
|                                           |                                                                                                             |   |   |
| Item 2                                         | Management’s Discussion and Analysis of Financial Condition and Results of Operations                      | 24     |   |
| Item 3                                         | Quantitative and Qualitative Disclosure About Market Risk                                                        | 47     |   |
| Item 4                                         | Controls and Procedures                                                                                          | 47     |   |
|                                           |                                                                                                             |   |   |
|  PART II:  OTHER INFORMATION    |                                                                                                             |   |
| Item 1                                         | Legal Proceedings                                                                                                | 48     |   |
|    Item 1A                      | Risk Factors                                                                                                     | 48     |   |
| Item 2                                         | Unregistered Sales of Equity Securities and Use of Proceeds                                                      | 48     |   |
| Item 3                                         | Defaults Upon Senior Securities                                                                                  | 48     |   |
| Item 4                                         | Submission of Matters to a Vote of Security Holders                                                              | 48     |   |
| Item 5                                         | Other Information                                                                                                | 48     |   |
| Item 6                                         | Exhibits                                                                                                         | 49     |   |
|                                           | Signatures                                                                                                       |   |   |

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CONSOLIDATED BALANCE SHEETS

|                                 |                                    |                                                                                                                                                                                               |                                       |    | June 30,    |    |   | December 31, |    |
|--------------------------------------|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|---------|-------------|---------|--------|--------------|---------|
|                                 |                                    |                                                                                                                                                                                               |                                       |    | 2009        |    |   | 2008         |    |
|                                 |                                    |                                                                                                                                                                                               |                                       |    | (unaudited) |    |   |         |    |
| Assets                               |                                    |                                                                                                                                                                                               |                                       |    |        |    |
|                                 | Current assets                          |                                                                                                                                                                                               |                                       |    |        |    |   |
|                                 |                                    | Cash and cash equivalents                                                                                                                                                                          |                                       | $       | 52,488      |    |   | $            | 131,150 |   |
|                                 |                                    | Restricted cash                                                                                                                                                                                    |                                       |    | 15,175      |    |   |         |    |   |
|                                 |                                    | Charter hire receivable, net of allowance of $500 in 2009 and $500 in 2008                                                                                                                         |                                       |    | 28,663      |    |   |         | 45,786  |   |
|                                 |                                    | Fuel and other inventories                                                                                                                                                                         |                                       |    | 14,084      |    |   |         | 12,079  |   |
|                                 |                                    | Prepaid expenses and other current assets                                                                                                                                                          |                                       |    | 8,223       |    |   |         | 10,722  |   |
|                                 |                                    | Advances to affiliates                                                                                                                                                                             |                                       |    | 1,482       |    |   |         | 6,402   |   |
|                                 |                                    |                                                                                                                                                                                               | Total current assets                       |    |        | 120,115 |   |         |    | 206,139 |   |
|                                 | Fixed assets, net                       |                                                                                                                                                                                               |                                       | 803,263 |        |    |   | 808,706      |    |
|                                 | Goodwill                                |                                                                                                                                                                                               |                                       | 8,426   |        |    |   | 8,426        |    |
|                                 | Other assets and deferred charges       |                                                                                                                                                                                               |                                       | 21,108  |        |    |   | 18,414       |    |
|                                 |                                    |                                                                                                                                                                                               | Total assets                               |    | $           | 952,912 |   |         | $       | 1,041,685 |   |
|                                 |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |   |   |
| Liabilities and Shareholders' Equity |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |
|                                 | Current liabilities                     |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |
|                                 |                                    | Debt, current portion                                                                                                                                                                              |                                       | $       | 37,292      |    |   | $            | 56,945  |   |
|                                 |                                    | Accounts payable and accrued expenses                                                                                                                                                              |                                       |    | 39,258      |    |   |         | 41,602  |   |
|                                 |                                    | Voyages in progress                                                                                                                                                                                |                                       |    | 520         |    |   |         | 3,268   |   |
|                                 |                                    | Advances from affiliates                                                                                                                                                                           |                                       |    | 413         |    |   |         | 13      |   |
|                                 |                                    |                                                                                                                                                                                               | Total current liabilities                  |    |        | 77,483  |   |         |    | 101,828 |   |
|                                 |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |   |   |
|                                 | Debt, long-term portion                 |                                                                                                                                                                                               |                                       | 299,372 |        |    |   | 326,129      |    |
|                                 | Other liabilities                       |                                                                                                                                                                                               |                                       | 11,019  |        |    |   | 15,432       |    |
|                                 |                                    |                                                                                                                                                                                               | Total liabilities                          |    |        | 387,874 |   |         |    | 443,389 |   |
|                                 |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |   |   |
|                                 | COMMITMENTS AND CONTINGENCIES (Note 12) |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |
|                                 |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |   |   |
|                                 | Shareholders' equity                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |
|                                 |                                    | Common shares, Class A, $.01 par value, 75,000,000 authorized, 17,531,996 shares issued and 17,513,371 shares outstanding in 2009 and 17, 519,496 shares issued and 17,509,496 outstanding in 2008 |                                       |    | 175         |    |   |         | 175     |   |
|                                 |                                    | Common shares, Class B, $.01 par value, 30,000,000 authorized, 12,390,461 shares issued and outstanding in 2009 and 2008                                                                           |                                       |    | 124         |    |   |         | 124     |   |
|                                 |                                    | Warrants                                                                                                                                                                                           |                                       |    | 21          |    |   |         | 21      |   |
|                                 |                                    | Additional paid-in capital                                                                                                                                                                         |                                       |    | 187,434     |    |   |         | 186,683 |   |
|                                 |                                    | Accumulated other comprehensive (loss)                                                                                                                                                             |                                       |    | (9,457      | )       |   |         | (13,727 | ) |
|                                 |                                    | Retained earnings                                                                                                                                                                                  |                                       |    | 387,208     |    |   |         | 425,409 |   |
|                                 |                                    | Less: Treasury stock (18,625 shares, at cost)                                                                                                                                                      |                                       |    | (467        | )       |   |         | (389    | ) |
|                                 |                                    |                                                                                                                                                                                               | Total shareholders' equity                 |    |        | 565,038 |   |         |    | 598,296 |   |
|                                 |                                    |                                                                                                                                                                                               | Total liabilities and shareholders' equity |    | $           | 952,912 |   |         | $       | 1,041,685 |   |
|                                 |                                    |                                                                                                                                                                                               |                                       |    |        |    |   |         |    |   |   |

Table of Contents

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CONSOLIDATED STATEMENTS OF INCOME

|                                       |                                                                                               |                     |    | Three Months Ended June 30, |   |   | Six Months Ended June 30, |       |
|--------------------------------------------|----------------------------------------------------------------------------------------------------|--------------------------|---------|-----------------------------|--------|--------|---------------------------|------------|
|                                       |                                                                                               |                     |    | 2009                        |   |   | 2008                      |       |   | 2009 |   |   | 2008 |   |
|                                       |                                                                                               |                     |    | (unaudited)                 |   |   | (unaudited)               |       |   | (unaudited) |   |   | (unaudited) |   |
| Revenue                                    |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |
|                                       | Voyage revenue                                                                                     |                     | $       | 59,741                      |   |   | $                         | 128,696    |   |   | $ | 124,254 |   |   | $ | 226,856 |   |
|                                       | Time charter revenue                                                                               |                     |    | 12,168                      |   |   |                      | 25,258     |   |   |   | 18,339 |   |   |   | 57,984 |   |
|                                       | Logistics revenue                                                                                  |                     |    | 270                         |   |   |                      | 2,711      |   |   |   | 536 |   |   |   | 3,243 |   |
|                                       | Other revenue                                                                                      |                     |    | 57                          |   |   |                      | 282        |   |   |   | 265 |   |   |   | 440 |   |
|                                       |                                                                                               | Total revenue            |    |                        | 72,236 |   |                      |       | 156,947 |   |   |   | 143,394 |   |   |   | 288,523 |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
| Operating expenses                         |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
|                                       | Voyage                                                                                             |                     |    | 27,314                      |   |   |                      | 41,931     |   |   |   | 56,313 |   |   |   | 73,849 |   |
|                                       | Logistics                                                                                          |                     |    | 172                         |   |   |                      | 2,191      |   |   |   | 421 |   |   |   | 2,691 |   |
|                                       | Vessel                                                                                             |                     |    |                        | 25,520 |   |                      |       | 24,315 |   |   |   | 53,499 |   |   |   | 47,749 |   |
|                                       | Depreciation and amortization of vessels and other fixed assets                                    |                     |    | 23,603                      |   |   |                      | 16,515     |   |   |   | 46,322 |   |   |   | 30,008 |   |
|                                       | General and administrative                                                                         |                     |    | 8,349                       |   |   |                      | 15,296     |   |   |   | 17,035 |   |   |   | 27,063 |   |
|                                       |                                                                                               | Total operating expenses |    |                        | 84,958 |   |                      |       | 100,248 |   |   |   | 173,590 |   |   |   | 181,360 |   |
|  (Loss) income from operations        |                                                                                               |                     | (12,722 | )                           |   |   | 56,699                    |       |   |   | (30,196 | ) |   |   | 107,163 |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
| Other (expenses) and income                |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
|                                       | Interest expense                                                                                   |                     |    | (4,466                      | )      |   |                      | (3,840     | ) |   |   | (7,977 | ) |   |   | (7,277 | ) |
|                                       | Loss on extinguishment of debt                                                                     |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   | (2,318 | ) |
|                                       | Interest and other income (expense)                                                                |                     |    | 275                         |   |   |                      | (218       | ) |   |   | (28 | ) |   |   | 451 |   |
|                                       |           Total other (expenses) and income, net |                     |    | (4,191                      | )      |   |                      | (4,058     | ) |   |   | (8,005 | ) |   |   | (9,144 | ) |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                          |                                                                                               | $                        | (16,913 | )                           |   | $      | 52,641                    |       |   | $ | (38,201 | ) |   | $ | 98,019 |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |   |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Earnings per share                         |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
| Net (loss) income per common share         |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
|                                       | Basic and Diluted                                                                                  |                     | $       | (0.57                       | )      |   | $                         | 1.82       |   |   | $ | (1.28 | ) |   | $ | 3.44 |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |
|                                       | Basic and Diluted                                                                                  |                     |    | 29,827,345                  |   |   |                      | 28,778,769 |   |   |   | 29,822,402 |   |   |   | 28,411,539 |   |
|                                       |                                                                                               |                     |    |                        |   |   |                      |       |   |   |   |   |   |   |   |   |   |   |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                 |                                                                                     |                                                     |                                                               |    | Six Months Ended June 30, |   |
|------------------------------------------------------|------------------------------------------------------------------------------------------|----------------------------------------------------------|--------------------------------------------------------------------|---------|---------------------------|--------|
|                                                 |                                                                                     |                                                     |                                                               |    | 2009                      |   |   | 2008 |   |
|                                                 |                                                                                     |                                                     |                                                               |    | (unaudited)               |   |   | (unaudited) |   |
| Cash flows from operating activities                 |                                                                                     |                                                     |                                                               |    |                      |   |
|                                                 | Net (loss) income                                                                        |                                                     | $                                                                  | (38,201 | )                         |   | $ | 98,019 |   |
|                                                 | Adjustments to reconcile net income to net cash provided by operating activities         |                                                     |                                                               |    |                      |   |   |   |   |
|                                                 |                                                                                     | Depreciation and amortization                            |                                                               |    | 46,322                    |   |   |   | 30,008 |   |
|                                                 |                                                                                     | (Gain) loss on change in value of interest swap contract |                                                               |    | (143                      | )      |   |   | 81 |   |
|                                                 |                                                                                     | Amortization and write-off of deferred financing costs   |                                                               |    | 1,289                     |   |   |   | 2,851 |   |
|                                                 |                                                                                     | Non cash stock based compensation                        |                                                               |    | 751                       |   |   |   | 1,429 |   |
|                                                 |                                                                                     | Drydocking expenditures                                  |                                                               |    | (6,741                    | )      |   |   | (6,739 | ) |
|                                                 |                                                                                     | (Income) loss in joint venture                           |                                                               |    |                      |   |   |   | (226 | ) |
|                                                 |                                                                                     | Changes in operating assets and liabilities              |                                                               |    |                      |   |   |   |   |   |
|                                                 |                                                                                     |                                                     | Decrease (increase) in charter hire receivable                     |    |                      | 17,123 |   |   |   | (20,879 | ) |
|                                                 |                                                                                     |                                                     | (Increase) in fuel and other inventories                           |    |                      | (2,005 | ) |   |   | (7,585 | ) |
|                                                 |                                                                                     |                                                     | Decrease in prepaid expenses and other current assets              |    |                      | 2,499  |   |   |   | 1,833 |   |
|                                                 |                                                                                     |                                                     | (Increase) in other assets and deferred charges                    |    |                      | (524   | ) |   |   | (979 | ) |
|                                                 |                                                                                     |                                                     | (Decrease) increase in accounts payable and accrued expenses       |    |                      | (2,344 | ) |   |   | 4,043 |   |
|                                                 |                                                                                     |                                                     | (Decrease) increase in voyages in progress                         |    |                      | (2,748 | ) |   |   | 4,226 |   |
|                                                 |                                                                                     |                                                     | Increase (decrease)  in advances from/to affiliates, net |    |                      | 5,320  |   |   |   | (4,260 | ) |
| Net cash provided by operating activities            |                                                                                     |                                                     | 20,598                                                             |    |                      |   | 101,822 |   |
|                                                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |   |   |   |
| Cash flows from investing activities                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |
|                                                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |   |   |   |
|                                                 | Vessel acquisitions / capital improvement costs / vesselconstruction in progess payments |                                                     |                                                               | (34,138 | )                         |   |   | (260,464 | ) |
|                                                 | Restricted cash to fund 2009 new vessel payments                                         |                                                     |                                                               | (20,000 | )                         |   |   |   |   |
|                                                 | Decrease in restricted cash for new vessel payments                                      |                                                     |                                                               | 4,825   |                      |   |   |   |   |
|                                                 | Deposit for vessel purchases                                                             |                                                     |                                                               |    |                      |   |   | (7,925 | ) |
|                                                 | Investment in joint venture                                                              |                                                     |                                                               | (87     | )                         |   |   |   |   |
|                                                 | Repayment of loan made from joint venture                                                |                                                     |                                                               |    |                      |   |   | 760 |   |
| Net cash (used) by investing activities              |                                                                                     |                                                     | (49,400                                                            | )       |                      |   | (267,629 | ) |
| Cash flows from financing activities                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |
|                                                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |   |   |   |
|                                                 | Proceeds from issuance of shares in secondary publicoffering, net of offering costs      |                                                     |                                                               |    |                      |   |   | 95,649 |   |
|                                                 | Repayment of debt principal                                                              |                                                     |                                                               | (60,585 | )                         |   |   | (141,807 | ) |
|                                                 | Proceeds from debt                                                                       |                                                     |                                                               | 14,175  |                      |   |   | 313,000 |   |
|                                                 | Payment of deferred financing and leasing costs                                          |                                                     |                                                               | (3,372  | )                         |   |   | (4,491 | ) |
|                                                 | Acquisition of treasury stock                                                            |                                                     |                                                               | (78     | )                         |   |   |   |   |
| Net cash provided by (used in) financing activities  |                                                                                     |                                                     | (49,860                                                            | )       |                      |   | 262,351 |   |
|                                                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents |                                                                                     |                                                     | (78,662                                                            | )       |                      |   | 96,544 |   |
| Cash and cash equivalents beginning of period        |                                                                                     |                                                     | 131,150                                                            |    |                      |   | 30,498 |   |
|                                                 | Cash and cash equivalents end of period                                                  |                                                     |                                                               | 52,488  |                      |   | $ | 127,042 |   |
| Supplemental cash flow information:                  |                                                                                     |                                                     |                                                               |    |                      |   |   |   |
|                                                 | Interest paid, net of amounts capitalized                                                |                                                     | $                                                                  | 11,565  |                      |   | $ | 5,275 |   |
|                                                 |                                                                                     |                                                     |                                                               |    |                      |   |   |   |   |   |   |

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    | Accumulated |   |    |   |   |
|-------------------------------------------|--------|------------------|--------|-----------------|--------|--------|----------|--------|---------|--------|----------|--------|---------|--------|------------|--------|----------|--------|---------|-------------|--------|---------|--------|--------|
|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    | Other Com-  |   |    |   |   |
|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   | Additional |   |     |   |    | prehensive  |   |    |   |   |
|                                      |   | Common Shares    |   | Treasury Stocks |   |   | Warrants |   | Paid-in |   | Retained |   |    | Income |       |   |     |   |
|                                      |   | Shares           |   | Amount          |   | Shares |     | Amount |    |   | Shares   |   | Amount  |   | Capital    |   | Earnings |   |    | (Loss)      |   |    | Total  |   |
|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   |    |   |   |
|  Balance at December 31, 2008        |   |  29,909,957 |   |            | 299    |   | 10,000   |   |    | (389   | )        |   | 311,903 |   |       | 21     |     |   | 186,683 |        |   | 425,409 |   |   |   | (13,727 | ) |   | $ | 598,296 |   |
|  Net loss                            |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   | (38,201 | )      |   |   |   |   |   |   | (38,201 | ) |
|  Unrealized gain on cash flow hedges |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   |    |   |   |   | 4,270 |   |   |   | 4,270 |   |
|  Comprehensive income                |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   |    |   |   |   |   |   |   |   | (33,931 | ) |
|  Stock based compensation            |   |  12,500     |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   | 751     |        |   |    |   |   |   |   |   |   |   | 751 |   |
|  Treasury stock                      |   |             |   |            |   |   | 8,625    |   |    | (78    | )        |   |    |   |       |   |     |   |    |        |   |    |   |   |   |   |   |   |   | (78 | ) |
|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   |    |   |   |   |   |   |   |   |   |   |
|  Balance at June 30, 2009            |   |  29,922,457 |   | $               | 299    |   | 18,625   |   | $       | (467   | )        |   | 311,903 |   | $          | 21     |     | $      | 187,434 |        | $      | 387,208 |   |   | $ | (9,457 | ) |   | $ | 565,038 |   |
|                                      |   |             |   |            |   |   |     |   |    |   |     |   |    |   |       |   |     |   |    |        |   |    |   |   |   |   |   |   |   |   |   |

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Note 1 — Basis of Presentation

Table of Contents

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Table of Contents

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|            |   | June 30, |   |   | December 31, |   |
|-----------------|--------|----------|--------|--------|--------------|--------|
| Description     |   | 2009     |   |   | 2008         |   |
| Fuel            |   | $        | 8,156  |   |         | $      | 7,081 |   |
| Lubricating oil |   |     | 4,923  |   |         |   | 4,356 |   |
| Other           |   |     | 1,005  |   |         |   | 642 |   |
| Total           |   | $        | 14,084 |   |         | $      | 12,079 |   |
|            |   |     |   |   |         |   |   |   |

| Description                                    |   | June 30, 2009 |      |   | December 31, 2008 |   |
|------------------------------------------------|--------|---------------|-----------|--------|-------------------|--------|
| Vessels                                        |   | $             | 677,901   |   |              | $      | 677,901 |   |
| Vessel improvements and other equipment        |   |          | 155,014   |   |              |   | 140,738 |   |
| Deferred drydocking costs                      |   |          | 22,465    |   |              |   | 15,724 |   |
| Vessel construction in process                 |   |          | 144,906   |   |              |   | 126,024 |   |
| Other fixed assets                             |   |          | 17,959    |   |              |   | 16,979 |   |
|                                           |   |          | 1,018,245 |   |              |   | 977,366 |   |
| Less accumulated depreciation and amortization |   |          | (214,982  | )      |              |   | (168,660 | ) |
|                                           |   | $             | 803,263   |   |              | $      | 808,706 |   |
|                                           |   |          |      |   |              |   |   |   |

Table of Contents

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| Description                                    |   | June 30, 2009 |   |   | December 31, 2008 |   |
|------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Accounts payable and accrued expenses - vessel |   | $             | 27,951 |   |              | $      | 29,082 |   |
| Accounts payable and accrued expenses - voyage |   |          | 9,915  |   |              |   | 11,126 |   |
| Accrued expenses - General admin               |   |          | 1,392  |   |              |   | 1,394 |   |
| Total                                          |   | $             | 39,258 |   |              | $      | 41,602 |   |
|                                           |   |          |   |   |              |   |   |   |

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|                                                       |   | Interest Rate at June 30, 2009 |   |   | June 30, 2009 |    |   | December 31, 2008 |   |
|------------------------------------------------------------|--------|--------------------------------|--------|--------|--------------------|---------|--------|------------------------|--------|
|                                                       |   |                           |   |   |               |    |   |                   |   |
| Bank of America - term credit facility,                    |   |                           |   |   |               |    |   |                   |   |
| expires December 31, 2011                                  |   |  4.60                     | %      |   | $                  | 76,000  |   |                   | $      | 95,000 |   |
| Bank of America - revolving credit facility,               |   |                           |   |   |               |    |   |                   |   |   |   |
| expires March 26, 2012                                     |   | 4.65% & 5.17               | %      |   |               | 75,000  |   |                   |   | 75,000 |   |
| The Royal Bank of Scotland credit facility,                |   |                           |   |   |               |    |   |                   |   |   |   |
| new vessel buildings, expires December 2015                |   |  4.10                     | %      |   |               | 89,175  |   |                   |   | 75,000 |   |
| Credit Suisse credit facility,                             |   |                           |   |   |               |    |   |                   |   |   |   |
| expires December 12, 2017 and  February 19, 2018 |   | 3.39% & 3.58               | %      |   |               | 28,750  |   |                   |   | 31,750 |   |
| DVB Group Merchant Bank (Asia) Ltd credit facility,        |   |                           |   |   |               |    |   |                   |   |   |   |
| expires January 23, 2013                                   |   |  5.10                     | %      |   |               | 35,864  |   |                   |   | 60,324 |   |
| AIG Commercial Equipment Finance, Inc. credit facility,    |   |                           |   |   |               |    |   |                   |   |   |   |
| expires April 1, 2012                                      |   |  7.00                     | %      |   |               | 19,250  |   |                   |   | 29,750 |   |
| Commerzbank AG credit facility,                            |   |                           |   |   |               |    |   |                   |   |   |   |
| expires June 2, 2011                                       |   |  4.19                     | %      |   |               | 4,500   |   |                   |   | 6,500 |   |
| Berenberg Bank credit facility,                            |   |                           |   |   |               |    |   |                   |   |   |   |
| expires June 19, 2012                                      |   |  3.63                     | %      |   |               | 8,125   |   |                   |   | 9,750 |   |
| Debt balance                                               |   |                           |   |   | $                  | 336,664 |   |                   | $      | 383,074 |   |
|                                                       |   |                           |   |   |               |    |   |                   |   |   |   |   |

| 2009 (July 1, 2009 through December 31, 2009) |   | $      | 418     |   |
|-----------------------------------------------|--------|--------|---------|--------|
| 2010                                          |   |   | 76,340  |   |
| 2011                                          |   |   | 72,533  |   |
| 2012                                          |   |   | 103,908 |   |
| 2013                                          |   |   | 15,959  |   |
| Thereafter                                    |   |   | 67,506  |   |
|                                          |   | $      | 336,664 |   |
|                                          |   |   |    |   |

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| ·   | $ 15.0 million drawn down on the steel cutting, keel laying and launch of Hull No NYHS20720; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | $ 14.6 million drawn down on the steel cutting  keel laying and launch of Hull No NYHS20721; |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | $ 10.0 million drawn down on the steel cutting, keel laying of Hull No NYHS20722; |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | $   5.0 million drawn down on the steel cutting of Hull No NYHS00723; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | $   9.6 million drawn down on the steel cutting, keel laying of Hull No NYHS200724, and |
|--------------------|--------------------------------------------------------------------------------------------------------|

| ·   | $   5.0 million drawn down on the steel cutting of Hull No NYHS200725. |
|--------------------|---------------------------------------------------------------------------------------|

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|                                                                  | Liability Derivatives  |   |
|-----------------------------------------------------------------------|------------------------|--------|
|                                                                  | June 30, 2009          |   | December 31, 2008 |   |
|                                                                  | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
|                                                                  |                   |   |   |   |   |   |   |   |
| Derivatives designated as hedging instruments under Statement 133     |                   |   |   |   |   |   |   |   |
|                                                                  |                   |   |   |   |   |   |   |   |
| Interest rate contracts                                               | Other liabilities      |   | $ | 10,020 |   | Other liabilities |   | $ | 13,727 |   |
|                                                                  |                   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments under Statement 133 |                   |   |   |   |   |   |   |   |   |   |
|                                                                  |                   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                               | Other liabilities      |   |   | 999 |   | Other liabilities |   |   | 1,705 |   |
|                                                                  |                   |   |   |   |   |   |   |   |   |   |
| Total derivatives                                                     |                   |   | $ | 11,019 |   |   |   | $ | 15,432 |   |
|                                                                  |                   |   |   |   |   |   |   |   |   |   |

|                                                         |   | Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) |   |
|--------------------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|
|                                                         |   | June 30,                                                                      |   |   | December 31, |   |
| Derivatives in Statement 133 Cash Flow Hedging Relationships |   | 2009                                                                          |   |   | 2008 |   |
|                                                         |   |                                                                          |   |   |   |   |
| Interest rate contracts                                      |   | $                                                                             | (9,457 | )  |   | $ | (13,727 | )  |
|                                                         |   |                                                                          |   |   |   |   |   |   |

|                                                                                     |                                                                      |   | Amount of Gain or (Loss) Recognized in Income on Derivatives |   |
|------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                                                                     |                                                                      |   | For the Three Months Ended June 30,                          |   |   | For the Six MonthsEnded June 30, |   |
|                                                                                     | Location of Gain or (Loss)  Recognized in Income on Derivatives |   | 2009                                                         |   | 2008 |   |   | 2009 |   | 2008 |   |
| Derivatives Not Designated as Hedging Instruments under Statement 133                    |                                                                 |   |                                                         |   |   |   |   |   |   |   |   |
|                                                                                     |                                                                      |   |                                                         |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                  | Interest expense                                                          |   | $                                                            | 510    |   | $ | 11 |   |   | $ | 707 |   | $ | (81 | ) |
|                                                                                     |                                                                      |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Ineffective Portion of Derivatives Designated as Hedging Instruments under Statement 133 |                                                                      |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |                                                                      |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate contracts                                                                  | Interest expense                                                          |   |                                                         | (355   | ) |   | - |   |   |   | (564 | ) |   | - |   |
|                                                                                     |                                                                      |   | $                                                            | 155    |   | $ | 11 |   |   | $ | 143 |   | $ | (81 | ) |
|                                                                                     |                                                                      |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

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| (in thousands)          |   |    |   |   |    |   |   |    |   |
|-------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Liabilities             |   |    |   |   |    |   |   |    |   |
| Interest rate contracts |   | $       | -      |   |    | $      | 11,019 |    |   | $ | - |   |

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|                                |                                                                       |   | Three Months Ended June 30,                                            |       |   | Six Months Ended June 30,                                              |   |
|-------------------------------------|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|--------|------------------------------------------------------------------------|--------|
|                                |                                                                       |   | 2009                                                                   |       |   | 2008                                                                   |   |   | 2009 |   |   | 2008 |   |
|                                |                                                                       |   | (in thousands, except number of shares and earnings per share amounts) |       |   | (in thousands, except number of shares and earnings per share amounts) |   |
| Numerators:                         |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |
|                                | Net (loss) income                                                          |   | $                                                                      | (16,913    | )      |                                                                   | $      | 52,641 |   |   | $ | (38,201 | ) |   | $ | 98,019 |   |
|                                | Allocation of undistributed income to nonvested restricted common shares   |   |                                                                   | -          |   |                                                                   |   | (195 | ) |   |   | - |   |   |   | (363 | ) |
|                                |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                | (Loss) earnings available to common shareholders — Basic and Diluted |   | $                                                                      | (16,913    | )      |                                                                   | $      | 52,446 |   |   | $ | (38,201 | ) |   | $ | 97,656 |   |
|                                |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Denominators:                       |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |
|                                | Weighted average common shares outstanding — Basic and Diluted       |   |                                                                   | 29,827,345 |   |                                                                   |   | 28,778,769 |   |   |   | 29,822,402 |   |   |   | 28,411,539 |   |
|                                |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per common share: |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |
|                                | Basic and Diluted                                                          |   | $                                                                      | (0.57      | )      |                                                                   | $      | 1.82 |   |   | $ | (1.28 | ) |   | $ | 3.44 |   |
|                                |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                | Anti-dilutive warrants not included above                                  |   |                                                                   | 311,903    |   |                                                                   |   |   |   |   |   | 311,903 |   |   |   |   |   |
|                                |                                                                       |   |                                                                   |       |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |

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|                                                     |   |        |   |   | Office   |   |   |   |   |
|----------------------------------------------------------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|
| At June 30, 2009                                         |   | Vessel Hire |   |   | Premises |   |   | Total  |   |
| 2009  (July 1, 2009 through December 31, 2009) |   | $           | 3,680  |   |     | $      | 415    |   |   | $ | 4,095 |   |
| 2010                                                     |   |        | 5,524  |   |     |   | 565    |   |   |   | 6,089 |   |
| 2011                                                     |   |        | 5,366  |   |     |   | 271    |   |   |   | 5,637 |   |
| 2012                                                     |   |        | 5,380  |   |     |   | 137    |   |   |   | 5,517 |   |
| 2013                                                     |   |        | 5,366  |   |     |   | -      |   |   |   | 5,366 |   |
| Thereafter                                               |   |        | 441    |   |     |   | -      |   |   |   | 441 |   |
|                                                     |   | $           | 25,757 |   |     | $      | 1,388  |   |   | $ | 27,145 |   |
|                                                     |   |        |   |   |     |   |   |   |   |   |   |   |

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|                 |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |    |
|----------------------|--------|-----------------------------|--------|--------|---------------------------|---------|
| Country              |   | 2009                        |   | 2008   |                      |    | 2009 |   | 2008 |   |
| Brazil               |   | $                           | 8,584  |   | $                         | 37,340  |   |   | $ | 19,559 |   | $ | 66,490 |   |
| United Arab Emirates |   |                        | 14,130 |   |                      | 15,485  |   |   |   | 22,443 |   |   | 27,859 |   |
| Japan                |   |                        | 7,427  |   |                      | 22,554  |   |   |   | 20,006 |   |   | 40,756 |   |
| Peru                 |   |                        | 7,397  |   |                      | 12,579  |   |   |   | 13,556 |   |   | 23,998 |   |
| Chile                |   |                        | 5,072  |   |                      | 11,943  |   |   |   | 9,901 |   |   | 21,273 |   |
| China                |   |                        | 2,125  |   |                      | 5,294   |   |   |   | 6,209 |   |   | 8,044 |   |
| Argentina            |   |                        | 2,396  |   |                      | 777     |   |   |   | 5,007 |   |   | 1,639 |   |
| Korea                |   |                        | 731    |   |                      | 5,545   |   |   |   | 4,064 |   |   | 8,964 |   |
| Venezuela            |   |                        | 1,233  |   |                      | 4,248   |   |   |   | 1,233 |   |   | 4,016 |   |
| Others               |   |                        | 6,518  |   |                      | 7,733   |   |   |   | 9,557 |   |   | 17,114 |   |
| Total                |   | $                           | 55,613 |   | $                         | 123,498 |   |   | $ | 111,535 |   | $ | 220,153 |   |
|                 |   |                        |   |   |                      |    |   |   |   |   |   |   |   |   |

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Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

| ·   | changes in demand for our services, which are increasingly difficult to predict due to the current economic downturn and the widespread reduction of business activity generally; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | a decline in rates in the shipping market, which may continue for a prolonged period; |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | the effect of a decline in vessel valuations; |
|--------------------|-----------------------------------------------|

| ·   | our ability to maintain financial ratios and satisfy financial covenants in our credit facilities;  |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | changes in rules and regulations applicable to the shipping industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | actions taken by regulatory authorities; |
|--------------------|------------------------------------------|

| ·   | changes in trading patterns significantly impacting overall vessel tonnage requirements; |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | changes in the typical seasonal variations in charter rates; |
|--------------------|--------------------------------------------------------------|

| ·   | increases in costs, including changes in production of or demand for oil and petroleum products, crew wages, insurance, provisions, repairs and maintenance, generally or in particular regions; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the risk that financial counterparties will default; |
|--------------------|------------------------------------------------------|

| ·   | changes in general domestic and international political conditions; |
|--------------------|---------------------------------------------------------------------|

| ·   | changes in the condition of our vessels or applicable maintenance or regulatory standards, which may affect, among other things, our anticipated drydocking or maintenance and repair costs; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increases in the cost of our drydocking program or delays in our anticipated drydocking schedule; |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | China Communications Construction Company Ltd./ Nantong Yahua Shipbuilding Co., Ltd.’s ability to complete and deliver the vessels on the anticipated schedule and the ability of the parties to satisfy the conditions in the shipbuilding agreements; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | other factors listed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, the risks disclosed in our Form 10-K filed with the Securities and Exchange Commission on March 30, 2009 and subsequent reports on our Form 10-Q and Form 8-K. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | macroeconomic conditions in the geographic regions where we operate; |
|--------------------|----------------------------------------------------------------------|

| ·   | general economic conditions in the industries in which our customers operate; |
|--------------------|-------------------------------------------------------------------------------|

| ·   | changes in our freight and sub-time charter rates - rates we charge for vessels we charter out - and, in periods when our voyage and vessel expenses increase, our ability to raise our rates to pass such cost increases through to our customers; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the extent to which we are able to efficiently utilize our controlled fleet and optimize its capacity; and |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | the extent to which we can control our fixed and variable costs, including those for port charges, stevedore and other cargo-related expenses, fuel, and commission expenses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                |   | Number of vessels in drydock from previous quarter |   |   | Number of vessels entering drydock during quarter |   |   | Number of drydock days during quarter |   | Approximate metric tons (MT) of steel installed |
|---------------------|--------|---------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------------------|--------|-------------------------------------------------|
| Third Quarter 2009  |   | 3                                                       |   |   | 6                                                 |   |   | 212                                   |   |  days                                      |   | 684 |   |  MT |
| Fourth Quarter 2009 |   | 3                                                       |   |   | 4                                                 |   |   | 160                                   |   |  days                                      |   | 425 |   |  MT |
| Total for 2009      |   |                                                    |   |   | 10                                                |   |   | 372                                   |   |                                            |   | 1,109 |   |   |
|                |   |                                                    |   |   |                                              |   |   |                                  |   |                                            |   |   |   |   |

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| Milestone            |   | ArgyleMaritime Corp.Hull No. NYHS200720 Rockaway Belle |   | CatonMaritime Corp. Hull No. NYHS200721Dakota Princess |   | Dorchester Maritime Corp. Hull No. NYHS200722To be Named |   | Longwoods  Maritime Corp. Hull No. NYHS200723To be Named |   | McHenry Maritime Corp. Hull No. NYHS200724To be Named |   | Sunswyck Maritime Corp. Hull No. NYHS200725To be Named |
|----------------------|--------|--------------------------------------------------------|--------|--------------------------------------------------------|--------|----------------------------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------------------------------|--------|--------------------------------------------------------|
| Contract Signing     |   | Met                                                    |   | Met                                                    |   | Met                                                      |   | Met                                                                |   | Met                                                   |   | Met                                                    |
| Steel Cutting        |   | Met                                                    |   | Met                                                    |   | Met                                                      |   | Met                                                                |   | Met                                                   |   | Met                                                    |
| Keel Laying          |   | Met                                                    |   | Met                                                    |   | Met                                                      |   | 3rd Qtr 2009                                                       |   | Met                                                   |   | 1st  Qtr 2010                                |
| Launching            |   | Met                                                    |   |   Met                                   |   | 3rd Qtr 2009                                             |   | 2nd Qtr 2010                                                       |   | 1st Qtr 2010                                          |   | 3rd Qtr 2010                                           |
| Anticipated Delivery |   | 3rd Qtr 2009                                           |   | 1st Qtr 2010                                           |   | 2nd Qtr 2010                                             |   | 4th Qtr 2010                                                       |   | 3rd Qtr 2010                                          |   | 1st Qtr 2011                                           |
|                 |   |                                                   |   |                                                   |   |                                                     |   |                                                               |   |                                                  |   |                                                   |

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|                          |                           |   | Three Months Ended |   |                    | Three Months Ended  |   |         |                |                    |
|-------------------------------|--------------------------------|--------|--------------------|--------|-------------------------|--------------------------|--------|--------------|---------------------|-------------------------|
|                          |                           |   | June 30, 2009      |   |                    | June 30, 2008            |   |         | Increase (Decrease) |                    |
|                          |                           |   | In Thousands       |   | As a % of Total Revenue |                     |   | In Thousands |                | As a % of Total Revenue |   |   | In Thousands |   | Percentage |   |
| Voyage revenue                |                           | $      | 59,741             |   | 82.7                    |                     |   | $            | 128,696             |                    | 82.0 |   |   | $ | (68,955 | ) | (53.6 | ) |
| Time charter revenue          |                           |   | 12,168             |   | 16.8                    |                     |   |         | 25,258              |                    | 16.1 |   |   |   | (13,090 | ) | (51.8 | ) |
| Logistics revenue             |                           |   | 270                |   | 0.4                     |                     |   |         | 2,711               |                    | 1.7 |   |   |   | (2,441 | ) | (90.0 | ) |
| Other revenue                 |                           |   | 57                 |   | 0.1                     |                     |   |         | 282                 |                    | 0.2 |   |   |   | (225 | ) | (79.8 | ) |
|                          | Total revenue                  |   |               | 72,236 |                    | 100.0                    |   |         |                | 156,947                 |   | 100.0 |   |   |   | (84,711 | ) | (54.0 | ) |
|                          |                           |   |               |   |                    |                     |   |         |                |                    |   |   |   |   |   |   |   |   |   |
| Voyage expense                |                           |   | 27,314             |   | 37.8                    |                     |   |         | 41,931              |                    | 26.7 |   |   |   | (14,617 | ) | (34.9 | ) |
| Logistics                     |                           |   | 172                |   | 0.2                     |                     |   |         | 2,191               |                    | 1.4 |   |   |   | (2,019 | ) | (92.1 | ) |
| Vessel expense                |                           |   | 25,520             |   | 35.3                    |                     |   |         | 24,315              |                    | 15.5 |   |   |   | 1,205 |   | 5.0 |   |
| Depreciation and amortization |                           |   | 23,603             |   | 32.7                    |                     |   |         | 16,515              |                    | 10.5 |   |   |   | 7,088 |   | 42.9 |   |
| General and administrative    |                           |   | 8,349              |   | 11.6                    |                     |   |         | 15,296              |                    | 9.8 |   |   |   | (6,947 | ) | (45.4 | ) |
|                          | Total operating expenses       |   |               | 84,958 |                    | 117.6                    |   |         |                | 100,248                 |   | 63.9 |   |   |   | (15,290 | ) | (15.3 | ) |
| (Loss) income from operations |                           |   | (12,722            | )      | (17.6                   | )                        |   |         | 56,699              |                    | 36.1 |   |   |   | (69,421 | ) | (122.4 | ) |
| Other (expenses) and income   |                           |   |               |   |                    |                     |   |         |                |                    |   |   |   |   |   |   |   |   |
|                          | Interest expense               |   |               | (4,466 | )                       | (6.2                     | )      |         |                | (3,840                  | ) | (2.5 | ) |   |   | (626 | ) | 16.3 |   |
|                          | Loss on extinguishment of debt |   |               | -      |                    | -                        |   |         |                | -                       |   | - |   |   |   | - |   | - |   |
|                          | Other income (expense)         |   |               | 275    |                    | 0.4                      |   |         |                | (218                    | ) | (0.1 | ) |   |   | 493 |   |   |   |
| Net  (loss) income  |                           | $      | (16,913            | )      | (23.4                   | )                        |   | $            | 52,641              |                    | 33.5 |   |   | $ | (69,554 | ) | (132.1 | ) |
|                          |                           |   |               |   |                    |                     |   |         |                |                    |   |   |   |   |   |   |   |   |   |

|                                    |                 |   | Three Months Ended June 30, |   |   |    |   |                |   |
|-----------------------------------------|----------------------|--------|-----------------------------|--------|--------|---------|--------|---------------------|--------|
|                                    |                 |   | 2009                        |   | 2008   |    |   | Increase (Decrease) |   |
| Voyage Revenue (in thousands)           |                 | $      | 59,741                      |   | $      | 128,696 |   |                | $      | (68,955 | ) |   | (53.6 | )% |
| Number of vessels (1)                   |                 |   | 33                          |   |   | 30      |   |                |   | 3 |   |   | 10.0 | % |
| Freight voyage days (2)                 |                 |   | 2,982                       |   |   | 2,758   |   |                |   | 224 |   |   | 8.1 | % |
| Days on hire (3)                        |                 |   | 3,025                       |   |   | 2,825   |   |                |   | 200 |   |   | 7.1 | % |
| Revenue tons carried (thousands) (4)    |                 |   |                        |   |   |    |   |                |   |   |   |   |   |   |
|                                    | For all cargoes      |   |                        | 2,449  |   |    | 2,288  |                |   |   | 161 |   |   | 7.0 | % |
|                                    | Excluding aggregates |   |                        | 1,297  |   |    | 1,233  |                |   |   | 64 |   |   | 5.2 | % |
|                                    | Aggregates           |   |                        | 1,152  |   |    | 1,055  |                |   |   | 97 |   |   | 9.2 | % |
| Freight Rates                           |                 |   |                        |   |   |    |   |                |   |   |   |   |   |   |
|                                    | For all cargoes      |   | $                           | 24.40  |   | $       | 56.25  |                |   | $ | (31.85 | ) |   | (56.6 | )% |
|                                    | Excluding aggregates |   | $                           | 40.33  |   | $       | 91.79  |                |   | $ | (51.46 | ) |   | (56.1 | )% |
| Daily time charter equivalent rates (5) |                 | $      | 11,268                      |   | $      | 32,007  |   |                | $      | (20,739 | ) |   | (64.8 | )% |
|                                    |                 |   |                        |   |   |    |   |                |   |   |   |   |   |   |   |

| (1)   | Weighted average number of vessels in the fleet, not including vessels chartered out. |
|-----------------|---------------------------------------------------------------------------------------|

| (2)   | Number of days that our vessels were earning revenue, not including vessels chartered out. |
|-----------------|--------------------------------------------------------------------------------------------|

| (3)   | Number of days that our vessels were available for hire, not including vessels chartered out. |
|-----------------|-----------------------------------------------------------------------------------------------|

Table of Contents

----

| (4)   | Revenue tons is a measurement on which shipments are freighted.  Cargoes are rated as weight (based on metric tons) or measure (based on cubic meters); whichever produces the higher revenue will be considered the revenue ton. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Daily Time Charter Equivalent or "TCE" rates are defined as voyage revenue less voyage expenses during the period divided by the number of available freight voyage days during the period. Voyage expenses include: fuel, port call, commissions, stevedore and other cargo related and miscellaneous voyage expenses.  To conform to the 2009 presentation daily time charter equivalent rates for2008 were revised to exclude logistic expenses which were classified as voyage expense in 2008.  No deduction is made for vessel or general and administrative expenses. TCE includes the full amount of any probable losses on voyages at the time such losses can be estimated. TCE is an industry standard for measuring and analyzing fluctuations between financial periods and as a method of equating TCE revenue generated from a voyage charter to time charter revenue. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Three Months Ended |   |                           |          |   |         |                |
|-----------------------|--------|--------------------|--------|--------------------------------|---------------|--------|--------------|---------------------|
|                  |   | June 30, 2009      |   |                           | June 30, 2008 |   |         | Increase (Decrease) |   |
| Description           |   | In Thousands       |   | As a % of Total Voyage Revenue |          |   | In Thousands |                | As a % of Total Voyage Revenue |   |   | In Thousands |   | Percentage |   |
| Aggregates            |   | $                  | 7,427  |                           |          | 12.4   |         |                | $ | 15,485 |   |   | 12.0 |   |   | $ | (8,058 | ) |   | (52.0 | ) |
| Steel products        |   |               | 15,023 |                           |          | 25.1   |         |                |   | 35,235 |   |   | 27.4 |   |   |   | (20,212 | ) |   | (57.4 | ) |
| Agricultural products |   |               | 10,978 |                           |          | 18.4   |         |                |   | 21,121 |   |   | 16.4 |   |   |   | (10,143 | ) |   | (48.0 | ) |
| Metal concentrates    |   |               | 8,846  |                           |          | 14.8   |         |                |   | 23,224 |   |   | 18.0 |   |   |   | (14,378 | ) |   | (61.9 | ) |
| Project cargo         |   |               | 2,606  |                           |          | 4.4    |         |                |   | 6,561 |   |   | 5.1 |   |   |   | (3,955 | ) |   | (60.3 | ) |
| General cargo         |   |               | 2,360  |                           |          | 4.0    |         |                |   | 5,723 |   |   | 4.5 |   |   |   | (3,363 | ) |   | (58.8 | ) |
| Rolling stock         |   |               | 1,074  |                           |          | 1.8    |         |                |   | 4,472 |   |   | 3.5 |   |   |   | (3,398 | ) |   | (76.0 | ) |
| Other bulk cargo      |   |               | 7,210  |                           |          | 12.0   |         |                |   | 13,041 |   |   | 10.1 |   |   |   | (5,831 | ) |   | (44.7 | ) |
| Fertilizers           |   |               | 455    |                           |          | 0.8    |         |                |   | - |   |   | - |   |   |   | 455 |   |   | - |   |
| Fishmeal              |   |               | 2,385  |                           |          | 4.0    |         |                |   | - |   |   | - |   |   |   | 2,385 |   |   | - |   |
| Automotive products   |   |               | 963    |                           |          | 1.6    |         |                |   | 2,163 |   |   | 1.7 |   |   |   | (1,200 | ) |   | (55.5 | ) |
| Other                 |   |               | 414    |                           |          | 0.7    |         |                |   | 1,671 |   |   | 1.3 |   |   |   | (1,257 | ) |   | (75.2 | ) |
| Total voyage revenue  |   | $                  | 59,741 |                           |          | 100.0  |         |                | $ | 128,696 |   |   | 100.0 |   |   | $ | (68,955 | ) |   | (53.6 | ) |
|                  |   |               |   |                           |          |   |         |                |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                                    |   | Three Months Ended June 30, |   |   |   |   |                |   |
|-----------------------------------------|--------|-----------------------------|--------|--------|--------|--------|---------------------|--------|
|                                    |   | 2009                        |   | 2008   |   |   | Increase (Decrease) |   |
| Time Charter Revenue (in thousands)     |   | $                           | 12,168 |   | $      | 25,258 |                |   | $ | (13,090 | ) |   | (51.8 | )% |
| Number of vessels (1)                   |   |                        | 13     |   |   | 9      |                |   |   | 4 |   |   | 44.4 | % |
| Time Charter days (2)                   |   |                        | 1,140  |   |   | 777    |                |   |   | 363 |   |   | 46.7 | % |
| Daily charter hire rates (3)            |   | $                           | 10,674 |   | $      | 32,506 |                |   | $ | (21,832 | ) |   | (67.2 | )% |
| Daily time charter equivalent rates (4) |   | $                           | 9,642  |   | $      | 30,563 |                |   | $ | (20,921 | ) |   | (68.5 | )% |

| (1)   | Weighted average number of vessels chartered out. |
|-----------------|---------------------------------------------------|

| (2)   | Number of days the vessels earned charter hire. |
|-----------------|-------------------------------------------------|

| (3)   | Weighted average charter hire rates. |
|-----------------|--------------------------------------|

| (4)   | Daily Time Charter Equivalent or "TCE" rates for vessels that are time chartered out are defined as time charter revenue during the period reduced principally by commissions divided by the number of available time charter days during the period.  Commission for vessels that are time chartered out for the three months ended June 30, 2009 and June 30, 2008 were $0.5 million and $1.5million, respectively. For the three months ended June 30, 2009, time charter voyages include primarily fuel cost as well as other miscellaneous voyage cost for a total of $0.7 million. The fuel cost is related to fuel price differentials caused by volatility in the fuel market and the cost for ballasting vessels to time charter delivery ports. No deduction is made for vessel or general and administrative expenses.  TCE is an industry standard for measuring and analyzing fluctuations between financialperiods and as a method of equating TCE revenue generated from a voyage charter to time charter revenue. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

|                  |   | Three Months Ended |   |                     | Three Months Ended |                                             |   |                |         |   |                     |
|-----------------------|--------|--------------------|--------|--------------------------|--------------------|--------------------------------------------------|--------|---------------------|--------------|--------|--------------------------|
|                  |   | June 30, 2009      |   |                     | June 30, 2008      |                                             |   | Increase (Decrease) |         |
|                  |   | In Thousands       |   | As a % of Voyage Expense |               | As a % of Voyage & Time Charter Revenue |   |                | In Thousands |   | As a % of Voyage Expense |   | As a % of Voyage & Time Charter Revenue |   |   | In Thousands |   | As a % of 2008 Expense |   | As a % of Voyage & Time Charter Revenue |   |
| Fuel expense          |   | $                  | 12,494 |                     | 45.7               |                                             | 17.4   |                |         | $      | 19,560                   |   | 46.6 |   | 12.7 |   |   | $ | (7,066 | ) | (36.1 | ) | 4.7 |   |
| Commission expense    |   |               | 3,655  |                     | 13.4               |                                             | 5.1    |                |         |   | 7,821                    |   | 18.7 |   | 5.1 |   |   |   | (4,166 | ) | (53.3 | ) | - |   |
| Port call expense     |   |               | 6,390  |                     | 23.4               |                                             | 8.9    |                |         |   | 6,714                    |   | 16.0 |   | 4.4 |   |   |   | (324 | ) | (4.8 | ) | 4.5 |   |
| Stevedore and other   |   |               |   |                     |               |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cargo-related expense |   |               | 2,029  |                     | 7.4                |                                             | 2.8    |                |         |   | 4,915                    |   | 11.7 |   | 3.2 |   |   |   | (2,886 | ) | (58.7 | ) | (0.4 | ) |
| Miscellaneous voyage  |   |               |   |                     |               |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expense               |   |               | 2,746  |                     | 10.1               |                                             | 3.8    |                |         |   | 2,921                    |   | 7.0 |   | 1.9 |   |   |   | (175 | ) | (6.0 | ) | 1.9 |   |
| Voyage expense        |   | $                  | 27,314 |                     | 100.0              |                                             | 38.0   |                |         | $      | 41,931                   |   | 100.0 |   | 27.3 |   |   | $ | (14,617 | ) | (34.9 | ) | 10.7 |   |
|                  |   |               |   |                     |               |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                        |   | Three Months Ended |   |                     | Three Months Ended |   |         |                |                     |
|-----------------------------|--------|--------------------|--------|--------------------------|--------------------|--------|--------------|---------------------|--------------------------|
|                        |   | June 30, 2009      |   |                     | June 30, 2008      |   |         | Increase (Decrease) |                     |
|                        |   | In Thousands       |   | As a % of Vessel Expense |               |   | In Thousands |                | As a % of Vessel Expense |   |   | In Thousands |   | Percentage |   |
| Owned vessel expense        |   | $                  | 22,529 |                     |               | 88.3   |         |                | $                        | 21,227 |   |   | 87.3 |   |   | $ | 1,302 |   |   | 6.1 |   |
| Chartered-in vessel expense |   |               | 995    |                     |               | 3.9    |         |                |                     | 1,479 |   |   | 6.1 |   |   |   | (484 | ) |   | (32.7 | ) |
| Controlled vessel expense   |   |               | 1,620  |                     |               | 6.3    |         |                |                     | 1,609 |   |   | 6.6 |   |   |   | 11 |   |   | 0.7 |   |
| Space charter expense       |   |               | 376    |                     |               | 1.5    |         |                |                     | - |   |   | - |   |   |   | 376 |   |   | - |   |
| Vessel expense              |   | $                  | 25,520 |                     |               | 100.0  |         |                | $                        | 24,315 |   |   | 100.0 |   |   | $ | 1,205 |   |   | 5.0 |   |
|                        |   |               |   |                     |               |   |         |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                          |                           |   | Six Months Ended |    |                    | Six Months Ended |   |         |                |                    |   |   |
|-------------------------------|--------------------------------|--------|------------------|---------|-------------------------|------------------|--------|--------------|---------------------|-------------------------|--------|--------|
|                          |                           |   | June 30, 2009    |    |                    | June 30, 2008    |   |         | Increase (Decrease) |                    |
|                          |                           |   | In Thousands     |    | As a % of Total Revenue |             |   | In Thousands |                | As a % of Total Revenue |   |   | In Thousands |   | Percentage |   |
| Voyage revenue                |                           | $      | 124,254          |    | 86.6                    |             |   | $            | 226,856             |                    | 78.6   |   |   | $ | (102,602 | ) | (45.2 | ) |
| Time charter revenue          |                           |   | 18,339           |    | 12.8                    |             |   |         | 57,984              |                    | 20.1   |   |   |   | (39,645 | ) | (68.4 | ) |
| Logistics revenue             |                           |   | 536              |    | 0.4                     |             |   |         | 3,243               |                    | 1.1    |   |   |   | (2,707 | ) | (83.5 | ) |
| Other revenue                 |                           |   | 265              |    | 0.2                     |             |   |         | 440                 |                    | 0.2    |   |   |   | (175 | ) | (39.8 | ) |
|                          | Total revenue                  |   |             | 143,394 |                    | 100.0            |   |         |                | 288,523                 |   | 100.0  |   |   |   | (145,129 | ) | (50.3 | ) |
|                          |                           |   |             |    |                    |             |   |         |                |                    |   |   |   |   |   |   |   |   |   |
| Voyage expense                |                           |   | 56,313           |    | 39.3                    |             |   |         | 73,849              |                    | 25.6   |   |   |   | (17,536 | ) | (23.7 | ) |
| Logistics                     |                           |   | 421              |    | 0.3                     |             |   |         | 2,691               |                    | 0.9    |   |   |   | (2,270 | ) | (84.4 | ) |
| Vessel expense                |                           |   | 53,499           |    | 37.3                    |             |   |         | 47,749              |                    | 16.5   |   |   |   | 5,750 |   | 12.0 |   |
| Depreciation and amortization |                           |   | 46,322           |    | 32.3                    |             |   |         | 30,008              |                    | 10.4   |   |   |   | 16,314 |   | 54.4 |   |
| General and administrative    |                           |   | 17,035           |    | 11.9                    |             |   |         | 27,063              |                    | 9.4    |   |   |   | (10,028 | ) | (37.1 | ) |
|                          | Total operating expenses       |   |             | 173,590 |                    | 121.1            |   |         |                | 181,360                 |   | 62.8   |   |   |   | (7,770 | ) | (4.3 | ) |
| (Loss) income from operations |                           |   | (30,196          | )       | (21.1                   | )                |   |         | 107,163             |                    | 37.2   |   |   |   | (137,359 | ) | (128.2 | ) |
| Other (expenses) and income   |                           |   |             |    |                    |             |   |         |                |                    |   |   |   |   |   |   |   |   |
|                          | Interest expense               |   |             | (7,977  | )                       | (5.6             | )      |         |                | (7,277                  | )      | (2.5   | ) |   |   | (700 | ) | 9.6 |   |
|                          | Loss on extinguishment of debt |   |             | -       |                    | -                |   |         |                | (2,318                  | )      | (0.8   | ) |   |   | 2,318 |   | (100.0 | ) |
|                          | Other income (expense)         |   |             | (28     | )                       | -                |   |         |                | 451                     |   | 0.2    |   |   |   | (479 | ) | (106.2 | ) |
| Net  (loss) income  |                           | $      | (38,201          | )       | (26.7                   | )                |   | $            | 98,019              |                    | 34.1   |   |   | $ | (136,220 | ) | (139.0 | ) |
|                          |                           |   |             |    |                    |             |   |         |                |                    |   |   |   |   |   |   |   |   |   |

Table of Contents

----

|                                    |                 |   | Six Months Ended June 30, |   |   |    |   |                |   |
|-----------------------------------------|----------------------|--------|---------------------------|--------|--------|---------|--------|---------------------|--------|
|                                    |                 |   | 2009                      |   | 2008   |    |   | Increase (Decrease) |   |
| Voyage Revenue (in thousands)           |                 | $      | 124,254                   |   | $      | 226,856 |   |                | $      | (102,602 | ) |   | (45.2 | )% |
| Number of vessels (1)                   |                 |   | 34                        |   |   | 28      |   |                |   | 6 |   |   | 21.4 | % |
| Freight voyage days (2)                 |                 |   | 6,098                     |   |   | 5,133   |   |                |   | 965 |   |   | 18.8 | % |
| Days on hire (3)                        |                 |   | 6,223                     |   |   | 5,301   |   |                |   | 922 |   |   | 17.4 | % |
| Revenue tons carried (thousands) (4)    |                 |   |                      |   |   |    |   |                |   |   |   |   |   |   |
|                                    | For all cargoes      |   |                      | 4,596  |   |    | 4,332  |                |   |   | 264 |   |   | 6.1 | % |
|                                    | Excluding aggregates |   |                      | 2,449  |   |    | 2,227  |                |   |   | 222 |   |   | 10.0 | % |
|                                    | Aggregates           |   |                      | 2,147  |   |    | 2,105  |                |   |   | 42 |   |   | 2.0 | % |
| Freight Rates                           |                 |   |                      |   |   |    |   |                |   |   |   |   |   |   |
|                                    | For all cargoes      |   | $                         | 27.03  |   | $       | 52.37  |                |   | $ | (25.34 | ) |   | (48.4 | )% |
|                                    | Excluding aggregates |   | $                         | 42.42  |   | $       | 89.35  |                |   | $ | (46.93 | ) |   | (52.5 | )% |
| Daily time charter equivalent rates (5) |                 | $      | 11,480                    |   | $      | 30,390  |   |                | $      | (18,910 | ) |   | (62.2 | )% |
|                                    |                 |   |                      |   |   |    |   |                |   |   |   |   |   |   |   |

| (1)   | Weighted average number of vessels in the fleet, not including vessels chartered out. |
|-----------------|---------------------------------------------------------------------------------------|

| (2)   | Number of days that our vessels were earning revenue, not including vessels chartered out. |
|-----------------|--------------------------------------------------------------------------------------------|

| (3)   | Number of days that our vessels were available for hire, not including vessels chartered out. |
|-----------------|-----------------------------------------------------------------------------------------------|

| (4)   | Revenue tons is a measurement on which shipments are freighted.  Cargoes are rated as weight (based on metric tons) or measure (based on cubic meters); whichever produces the higher revenue will be considered the revenue ton. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Daily Time Charter Equivalent or "TCE" rates are defined as voyage revenue less voyage expenses during the period divided by the number of available freight voyage days during the period.  Voyage expenses include: fuel, port call, commissions, stevedore and other cargo related and miscellaneous voyage expenses.  To conform to the 2009 presentation daily time charter equivalent rates for 2008 were revised toexclude logistic expenses which were classified as voyage expense in 2008.  No deduction is made for vessel or general and administrative expenses. TCE includes the full amount of any probable losses on voyages at the time such losses can be estimated. TCE is an industry standard for measuring and analyzing fluctuations between financial periods and as a method of equating TCE revenue generated from a voyage charter to time charter revenue. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

|                  |   | Six Months Ended |    |                           |          |   |         |                |
|-----------------------|--------|------------------|---------|--------------------------------|---------------|--------|--------------|---------------------|
|                  |   | June 30, 2009    |    |                           | June 30, 2008 |   |         | Increase (Decrease) |   |
| Description           |   | In Thousands     |    | As a % of Total Voyage Revenue |          |   | In Thousands |                | As a % of Total Voyage Revenue |   |   | In Thousands |   | Percentage |   |
| Aggregates            |   | $                | 20,329  |                           |          | 16.4   |         |                | $ | 27,859 |   |   | 12.3 |   |   | $ | (7,530 | ) |   | (27.0 | ) |
| Steel products        |   |             | 26,881  |                           |          | 21.6   |         |                |   | 63,170 |   |   | 27.8 |   |   |   | (36,289 | ) |   | (57.4 | ) |
| Agricultural products |   |             | 22,788  |                           |          | 18.3   |         |                |   | 35,053 |   |   | 15.5 |   |   |   | (12,265 | ) |   | (35.0 | ) |
| Metal concentrates    |   |             | 18,991  |                           |          | 15.3   |         |                |   | 43,598 |   |   | 19.2 |   |   |   | (24,607 | ) |   | (56.4 | ) |
| Project cargo         |   |             | 6,903   |                           |          | 5.6    |         |                |   | 11,593 |   |   | 5.1 |   |   |   | (4,690 | ) |   | (40.5 | ) |
| General cargo         |   |             | 6,592   |                           |          | 5.3    |         |                |   | 7,519 |   |   | 3.3 |   |   |   | (927 | ) |   | (12.3 | ) |
| Rolling stock         |   |             | 4,476   |                           |          | 3.6    |         |                |   | 8,053 |   |   | 3.6 |   |   |   | (3,577 | ) |   | (44.4 | ) |
| Other bulk cargo      |   |             | 9,181   |                           |          | 7.4    |         |                |   | 22,504 |   |   | 9.9 |   |   |   | (13,323 | ) |   | (59.2 | ) |
| Fertilizers           |   |             | 2,171   |                           |          | 1.8    |         |                |   | - |   |   | - |   |   |   | 2,171 |   |   | - |   |
| Fishmeal              |   |             | 2,385   |                           |          | 1.9    |         |                |   | - |   |   | - |   |   |   | 2,385 |   |   | - |   |
| Automotive products   |   |             | 2,422   |                           |          | 1.9    |         |                |   | 4,484 |   |   | 2.0 |   |   |   | (2,062 | ) |   | (46.0 | ) |
| Other                 |   |             | 1,135   |                           |          | 0.9    |         |                |   | 3,023 |   |   | 1.3 |   |   |   | (1,888 | ) |   | (62.5 | ) |
| Total voyage revenue  |   | $                | 124,254 |                           |          | 100.0  |         |                | $ | 226,856 |   |   | 100.0 |   |   | $ | (102,602 | ) |   | (45.2 | ) |
|                  |   |             |    |                           |          |   |         |                |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                    |   | Six Months Ended June 30, |   |   |   |   |                |   |
|-----------------------------------------|--------|---------------------------|--------|--------|--------|--------|---------------------|--------|
|                                    |   | 2009                      |   | 2008   |   |   | Increase (Decrease) |   |
| Time Charter Revenue (in thousands)     |   | $                         | 18,339 |   | $      | 57,984 |                |   | $ | (39,645 | ) |   | (68.4 | )% |
| Number of vessels (1)                   |   |                      | 11     |   |   | 10     |                |   |   | 1 |   |   | 10.0 | % |
| Time Charter days (2)                   |   |                      | 2,027  |   |   | 1,807  |                |   |   | 220 |   |   | 12.2 | % |
| Daily charter hire rates (3)            |   | $                         | 9,047  |   | $      | 32,088 |                |   | $ | (23,041 | ) |   | (71.8 | )% |
| Daily time charter equivalent rates (4) |   | $                         | 8,028  |   | $      | 30,437 |                |   | $ | (22,409 | ) |   | (73.6 | )% |

| (1)   | Weighted average number of vessels chartered out. |
|-----------------|---------------------------------------------------|

| (2)   | Number of days vessels earned charter hire. |
|-----------------|---------------------------------------------|

| (3)   | Weighted average charter hire rates. |
|-----------------|--------------------------------------|

Table of Contents

----

| (4)   |  Daily Time Charter Equivalent or "TCE" rates for vessels that are time chartered out are defined as time charter revenue during the period reduced principally by commissions divided by the number of available time charter days during the period.  Commission for vessels that are time chartered out for the six months ended June 30, 2009 and June 30, 2008 were $0.8 million and $3.0million, respectively. For the six months ended June 30, 2009, time charter voyages include primarily fuel cost as well as other miscellaneous voyage costs for a total of $1.3 million. The fuel cost is related to fuel price differentials caused by volatility in the fuel market and the cost for ballasting vessels to time charter delivery ports.  No deduction is made for vessel or general and administrative expenses.  TCE is an industry standard for measuring and analyzing fluctuations betweenfinancial periods and as a method of equating TCE revenue generated from a voyage charter to time charter revenue. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Table of Contents

----

|                  |   | Six Months Ended |   |                     | Six Months Ended |                                             |   |                |         |   |                     |
|-----------------------|--------|------------------|--------|--------------------------|------------------|--------------------------------------------------|--------|---------------------|--------------|--------|--------------------------|
|                  |   | June 30, 2009    |   |                     | June 30, 2008    |                                             |   | Increase (Decrease) |         |
|                  |   | In Thousands     |   | As a % of Voyage Expense |             | As a % of Voyage & Time Charter Revenue |   |                | In Thousands |   | As a % of Voyage Expense |   | As a % of Voyage & Time Charter Revenue |   |   | In Thousands |   | As a % of 2008 Expense |   | As a % of Revenue |   |
| Fuel expense          |   | $                | 26,619 |                     | 47.3             |                                             | 18.7   |                |         | $      | 34,363                   |   | 46.5 |   | 12.1 |   |   | $ | (7,744 | ) | (22.5 | ) | 6.6 |   |
| Commission expense    |   |             | 6,954  |                     | 12.2             |                                             | 4.9    |                |         |   | 14,817                   |   | 20.1 |   | 5.2 |   |   |   | (7,863 | ) | (53.1 | ) | (0.3 | ) |
| Port call expense     |   |             | 12,197 |                     | 21.7             |                                             | 8.6    |                |         |   | 12,027                   |   | 16.3 |   | 4.2 |   |   |   | 170 |   | 1.4 |   | 4.4 |   |
| Stevedore and other   |   |             |   |                     |             |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| cargo-related expense |   |             | 5,099  |                     | 9.1              |                                             | 3.6    |                |         |   | 8,539                    |   | 11.6 |   | 3.0 |   |   |   | (3,440 | ) | (40.3 | ) | 0.6 |   |
| Miscellaneous voyage  |   |             |   |                     |             |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| expense               |   |             | 5,444  |                     | 9.7              |                                             | 3.8    |                |         |   | 4,103                    |   | 5.5 |   | 1.4 |   |   |   | 1,341 |   | 32.7 |   | 2.4 |   |
| Voyage expense        |   | $                | 56,313 |                     | 100.0            |                                             | 39.6   |                |         | $      | 73,849                   |   | 100.0 |   | 25.9 |   |   | $ | (17,536 | ) | (23.7 | ) | 13.7 |   |
|                  |   |             |   |                     |             |                                             |   |                |         |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |

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|                        |   | Six Months Ended |   |                     | Six Months Ended |   |         |                |                     |
|-----------------------------|--------|------------------|--------|--------------------------|------------------|--------|--------------|---------------------|--------------------------|
|                        |   | June 30, 2009    |   |                     | June 30, 2008    |   |         | Increase (Decrease) |                     |
|                        |   | In Thousands     |   | As a % of Vessel Expense |             |   | In Thousands |                | As a % of Vessel Expense |   |   | In Thousands |   | Percentage |   |
| Owned vessel expense        |   | $                | 47,481 |                     |             | 88.8   |         |                | $                        | 38,040 |   |   | 79.7 |   |   | $ | 9,441 |   |   | 24.8 |   |
| Chartered-in vessel expense |   |             | 1,960  |                     |             | 3.7    |         |                |                     | 6,607 |   |   | 13.8 |   |   |   | (4,647 | ) |   | (70.3 | ) |
| Controlled vessel expense   |   |             | 3,236  |                     |             | 6.0    |         |                |                     | 3,102 |   |   | 6.5 |   |   |   | 134 |   |   | 4.3 |   |
| Space charter expense       |   |             | 822    |                     |             | 1.5    |         |                |                     | - |   |   | - |   |   |   | 822 |   |   | - |   |
| Vessel expense              |   | $                | 53,499 |                     |             | 100.0  |         |                | $                        | 47,749 |   |   | 100.0 |   |   | $ | 5,750 |   |   | 12.0 |   |
|                        |   |             |   |                     |             |   |         |                |                     |   |   |   |   |   |   |   |   |   |   |   |   |

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|                                      |   | Total  |    | Less than 1 year |   | 1-3 years |   | 3-5 years |    | More than 5 years |   |
|-------------------------------------------|--------|--------|---------|------------------|--------|-----------|--------|-----------|---------|-------------------|--------|
| Debt Obligations (1)                      |   | $      | 336,664 |             | $      | 37,292    |   | $         | 204,015 |              | $      | 34,526 |   | $ | 60,831 |   |
| Estimated variable interest payments (2 ) |   |   | 47,451  |             |   | 15,863    |   |      | 21,551  |              |   | 7,801 |   |   | 2,236 |   |
| Operating Lease obligations (3)           |   |   | 27,144  |             |   | 7,224     |   |      | 11,409  |              |   | 8,511 |   |   | - |   |
| Other Purchase obligations (4) (5)        |   |   | 89,200  |             |   | 58,700    |   |      | 30,500  |              |   |   |   |   |   |   |
| Total contractual cash obligations        |   | $      | 500,459 |             | $      | 119,079   |   | $         | 267,475 |              | $      | 50,838 |   | $ | 63,067 |   |
|                                      |   |   |    |             |   |      |   |      |    |              |   |   |   |   |   |   |

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|   | (1) | As of June 30, 2009, we had $336.7 million of indebtedness outstanding under loans to our subsidiaries that we guarantee, $28.7 million under the credit facility with Credit Suisse, $35.9 million under the credit facility with DVB Group Merchant Bank (Asia) Ltd., $19.3 million under the credit facility with AIG Commercial Equipment Finance, $76.0 million under the term loan with Bank ofAmerica,  $75.0 million under the $85.0 million revolving credit facility with Bank of America, $4.5 million under the credit facility with Commerzbank AG, $8.1 million under the credit facility with Berenberg Bank and $89.2 million under the $150.0 million credit facility with The Royal Bank of Scotland for the new vessel building program. The above schedule does not reflect future advances of $60.8 million under the $150.0 million credit facility with The Royal Bank of Scotland for the new vesselbuilding program.  The schedule above reflects in the “Less than 1 year” column $45.6 million of prepaid principal installments made in connection with loan modifications that were completed in March 2009. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts for all periods represent our estimated future interest payments on our debt facilities based upon amounts outstanding at June 30, 2009 and an annual interest rate of 5%, which approximates the average interest rate on all outstanding debt at June 30, 2009. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Operating lease obligations includes obligations under two seven-year bareboat charters for the Seminole Princess and the Laguna Belle and office leases. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Approximately $60.8 million of the purchase obligation for the new vessels will be funded under the $150.0 million credit facility with The Royal Bank of Scotland for the newbuilding program. Under the loan modification construction advances made during the covenant waiver period  are  subject to adjustment if the amount scheduled for advance by the lenders, exceeds 75% of the value of the vessel,as determined by a valuation of similar size and type ship and due to be delivered at the same time as  the  ship in construction. The covenant waiver period concludes at January 1, 2010.  We had outstanding purchase obligations at June 30, 2009 to build and purchase six new vessels as follows (in thousands): |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Owning Subsidiary         |   | Hull Number           |   | Total  |   | Less than 1 year |   | 1-3 years |   |
|---------------------------|--------|-----------------------|--------|--------|--------|------------------|--------|-----------|--------|
| Argyle Maritime Corp.     |   | NYHS200720 - Rockaway |   | $      | 7,500  |             | $      | 7,500     |   | $ | - |   |
| Caton Maritime Corp.      |   | NYHS200721 - Dakota   |   |   | 7,800  |             |   | 7,800     |   |   | - |   |
| Dorchester Maritime Corp. |   | NYHS200722            |   |   | 14,800 |             |   | 14,800    |   |   | - |   |
| Longwoods Maritime Corp.  |   | NYHS200723            |   |   | 21,800 |             |   | 14,000    |   |   | 7,800 |   |
| McHenry Maritime Corp.    |   | NYHS200724            |   |   | 14,800 |             |   | 7,000     |   |   | 7,800 |   |
| Sunswyck Maritime Corp.   |   | NYHS200725            |   |   | 21,800 |             |   | 7,000     |   |   | 14,800 |   |
|                      |   | Total                 |   | $      | 88,500 |             | $      | 58,100    |   | $ | 30,400 |   |
|                      |   |                  |   |   |   |             |   |      |   |   |   |   |

|   | (5)   | In connection with the newbuilding program, we entered into a contract for the supervision and inspection of vessels under construction.  As of June 30, 2009, commitments under the contract were $0.7 million, with $0.6 million due within one year and $0.1 million due between one and three years. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | eliminated bonuses, |
|--------------------|---------------------|

| ·   | froze 2008 salary levels, |
|--------------------|--------------------------------|

| ·   | instituted a cost cutting program, |
|--------------------|------------------------------------|

| ·   | prepaid debt installments that would have been due in 2009, |
|--------------------|-------------------------------------------------------------|

| ·   | obtained waivers to collateral coverage and other financial covenants through January 1, 2010, |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | provided additional vessels as collateral on certain loans, |
|--------------------|-------------------------------------------------------------|

| ·   | scaled back our accelerated steel renewal and reinforcement program during drydocking, |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | reduced capital expenditures and |
|--------------------|----------------------------------|

| ·   | suspended the purchase of second-hand bulk carriers. |
|--------------------|------------------------------------------------------|

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| ·   | We made scheduled debt repayments totaling $7.5 million; |
|--------------------|----------------------------------------------------------|

| ·   | We prepaid principal payments in the amount of  $53.1 million, consisting of $3.0 million to Credit Suisse, $19.6 million to DVB, $19.0 million to Bank of America, $7.9 million to AIG, $2.0 million to Commerzbank and $1.6 million to Berenberg Bank; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We borrowed an additional $14.2 million during the quarter under our $150.0 million credit facility with The Royal Bank of Scotland to fund the construction payments due on the building of six new multipurpose vessels with retractable tweendecks.  At June 30, 2009 we had $60.8 million remaining available under the creditfacility, and we had total borrowings under the facility of $89.2 million; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We paid $3.4 million of deferred financing and leasing costs associated with obtaining loan covenant waivers. |
|--------------------|---------------------------------------------------------------------------------------------------------------|

|                                            |   | Six Months Ended June 30, |   |
|-------------------------------------------------|--------|--------------------------------|--------|
|                                            |   | 2009                           |   |   | 2008 |   |
|                                            |   | (in millions)                  |   |
|                                            |   |                           |   |   |   |   |
| Vessels purchased                               |   | $                              | -      |   |   | $ | 213.6 |   |
| Vessels improvements and other equipment        |   |                           | 14.3   |   |   |   | 19.4 |   |
| Construction in progress                        |   |                           | 18.9   |   |   |   | 38.4 |   |
| Other fixed asset additions                     |   |                           | 0.9    |   |   |   | 3.9 |   |
|                                            |   |                           | 34.1   |   |   |   | 275.3 |   |
| Less: Vessel deposits paid in prior year        |   |                           | -      |   |   |   | (14.8 | ) |
| Total Vessel acquisitions / capital improvement |   | $                              | 34.1   |   |   | $ | 260.5 |   |
|                                            |   |                           |   |   |   |   |   |   |

| ·   | In connection with our construction program to build six newly designed multipurpose vessels with retractable tweendecks, we made payments to the ship building yard and incurred capitalized costs totaling $18.9 million.  These ships were designed by a TBS team drawn from all phases of our operation specifically to optimize our efficientcargo transportation in our trade lanes, support the requirements of our loyal customer base and enhance the growth of our business.  One vessel is scheduled for delivery in 2009, four vessels in 2010, and the remaining vessel is scheduled for delivery in 2011.  The project is being funded from our $150.0 million credit facility with The Royal Bank of Scotland and operating cash flow.   In connectionwith the March amendment to The Royal Bank of Scotland Credit Facility, were required to deposit $20.0 million with The Royal Bank of Scotland after the signing of the loan modification to be used to pay our portion of the 2009 installment payments that are not funded by The Royal Bank of Scotland new building credit facility.  The restricted cash balance decreases as payments are made to the shipyard in 2009.  During the second quarter of 2009 payments of approximately $4.8 million were made tothe shipyard from the $20.0 million of restricted cash. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We spent $14.3 million for vessel improvements and vessel equipment.  Vessel improvements and other equipment include steel renewal and replacement, major overhauls, new equipment, and takeover costs, including the cost of first drydocking after acquisition. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | In June, we received $95.6 million in net proceeds from the issuance of Class A common shares in a secondary public offering; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | In March, we amended and restated our existing Bank of America Credit Facility.  In connection with the amendment, we increased the term loan facility to $142.5 million and the revolving credit facility to $125.0 million.  We borrowed $142.5 million under the term loan credit facility to repay the existing creditfacility and pay closing costs and fees.  After the repayment of principal, interest and fees, the remaining amount of $18.9 million was used for general corporate purposes.  At June 30, 2008, we had no borrowings outstanding under the revolving credit facility; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We borrowed an additional $15.0 million during this quarter under our $150.0 million credit facility with The Royal Bank of Scotland to fund the construction payments due on the building of six new multipurpose vessels with retractable tweendecks; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In February, we borrowed the remaining $20.0 million available under the Credit Suisse credit facility.  The proceeds of this loan together with available working capital were used to purchase the vessel, Oneida Princess; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We borrowed $35.0 million from AIG Commercial Equipment Finance, Inc. to replenish operating funds used to purchase the Mohave Maiden , Zuni Princess and HopiPrincess; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In January, we borrowed $75.0 million, under a syndicated credited facility with DVB Group Merchant Bank (Asia) Ltd.  The funds were used to replenish funds used to exercise a purchase option for seven tweendeck vessels chartered-in under a sale-leaseback arrangement, to fund additional vessel acquisitions and for generalcorporate purposes; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In June, we borrowed $12.5 million from Commerzbank AG.  The proceeds of this loan together with working capital were used to purchase the vessel, Caribe Maiden; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Also in June, we borrowed $13.0 million from Berenberg Bank.  The proceeds of this loan together with working capital were used to purchase the vessel, Ottawa Princess. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We acquired eight vessels that were delivered during the first six months of 2008 for a total purchase price of $213.6 million, including $14.8 million in deposits paid in 2007.  In connection with these vessels and others that were acquired, we incurred takeover costs of $6.4 million.  We used cash from borrowingsand operations to fund the acquisitions; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In connection with our construction program to build six newly designed multipurpose vessels with retractable tweendecks we made payments to the ship building yard and incurred capitalized costs totaling $38.4 million; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We spent $19.4 million for vessel improvements and vessel equipment.  Vessel improvements and other equipment include steel renewal and replacement, major overhauls, new equipment, and takeover costs, including the cost of first drydocking after acquisition; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We made deposits totaling $7.9 million for the Fox Maiden (formerly the Desert Explorer), and the Tupi Maiden (formerlythe Ken Blossom), which are scheduled to be delivered within the next thirty days. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 3.Quantitative and Qualitative Disclosure About Market Risk

Item 4.Controls and Procedures

Table of Contents

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Item 1.Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Submission of Matters to a Vote of Security Holders

| MATTER                                                                                                                                                                                                                                                                                                                         |   | FOR        |   |   | AGAINST |   |   | ABSTAIN |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|---------|--------|--------|---------|--------|
| Election of  James W. Bayley                                                                                                                                                                                                                                                                                         |   | 21,444,986 |   |   | 119,665 |   |   | 70,476  |   |
| Election of  John P. Cahill                                                                                                                                                                                                                                                                                          |   | 21,463,848 |   |   | 99,999  |   |   | 71,280  |   |
| Re-election of Randy E. Day                                                                                                                                                                                                                                                                                                    |   | 21,474,612 |   |   | 90,101  |   |   | 70,414  |   |
| Re-election of  William P. Harrington                                                                                                                                                                                                                                                                                |   | 21,466,745 |   |   | 97,102  |   |   | 71,280  |   |
| Re-election of Gregg L. McNelis                                                                                                                                                                                                                                                                                                |   | 21,448,956 |   |   | 115,595 |   |   | 70,576  |   |
| Re-election of Joseph E. Royce                                                                                                                                                                                                                                                                                                 |   | 21,449,737 |   |   | 114,915 |   |   | 70,475  |   |
| Re-election of Peter S. Shaerf                                                                                                                                                                                                                                                                                                 |   | 21,447,041 |   |   | 116,844 |   |   | 71,242  |   |
| Election of  Alexander Smigelski                                                                                                                                                                                                                                                                                     |   | 21,470,685 |   |   | 93,743  |   |   | 70,699  |   |
| Reappointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accounting firm until the next Annual General Meeting of Shareholders and authorization of the Board of Directors, acting through the Audit Committee, to determine the independent registered public accounting firm's fees. |   | 21,423,521 |   |   | 147,490 |   |   | 64,116  |   |

Item 5. Other Information

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Item 6.  Exhibits

|                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |     | Incorporated by Reference |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------------------------|
| Exhibit     Description | Filed Herewith                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Form   | File No. | Exhibit                   | Filing Date |
|                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |     |                      |   |   |
| 3.1                                              | Amended and Restated Memorandum of Association of TBS International Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 10-Q     | 000-51368                 | 3.1 | 8/07/2008 |
| 3.2                                              | Amended and Restated Bye-Laws of TBS International Limited                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 10-Q     | 000-51368                 | 3.2 | 8/07/2008 |
| 10.1                                             | Guarantee Facility Agreement, dated March 29, 2007, among Argyle Maritime Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry Maritime Corp., Sunswyck Maritime Corp. and The Royal Bank of Scotland plc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | X      |     |                      |   |   |
| 10.2                                             | Loan Agreement, dated January 16, 2008, by and among Bedford Maritime Corp, Brighton Maritime Corp, Hari Maritime Corp, Prospect Navigation Corp, Hancock Navigation Corp, Columbus Maritime Corp and Whitehall Marine Transport Corp. as Borrowers, TBS International Limited as Guarantor, the banks and financial institutions named thereto as Lenders,DVB Group Merchant Bank (Asia) Ltd. as Facility Agent and Security Trustee,  The Governor and Company of the Bank of Ireland as Payment Agent, DVB Bank AG, The Governor and Company of the Bank of Ireland and Natixis as Swap Banks and Mount Washington LLC as Arranger                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | X      |     |                      |   |   |
| 10.3                                             | Amended and Restated Credit Agreement dated as of March 26, 2008, by and among Albemarle Maritime Corp, Arden Maritime Corp, Avon Maritime Corp, Birnam Maritime Corp, Bristol Maritime Corp, Chester Shipping Corp, Darby Navigation Corp, Dover Maritime Corp, Elrod Shipping Corp, Exeter Shipping Corp, Frankfort Maritime Corp, Glenwood MaritimeCorp, Hansen Shipping Corp, Henley Maritime Corp, Hudson Maritime Corp, Montrose Maritime Corp, Oldcastle Shipping Corp, Rector Shipping Corp, Remsen Navigation Corp, Sheffield Maritime Corp, Sherman Maritime Corp, Sterling Shipping Corp, Stratford Shipping Corp, Vernon Maritime Corp, Windsor Maritime Corp, and the other persons named thereto as Borrowers, TBS International Limited as a Guarantor, TBS Shipping Services Inc. as Administrative Borrower, Bank of America, N.A. as Administrative Agent, Swing LineLender and L/C Issuer, the other lenders named thereto, Citibank, N.A. and DVB Group Merchant Bank (Asia) Ltd. as co-Syndication Agents, TD Banknorth, N.A. as Documentation Agent, and Banc of America Securities LLC as Sole Lead Arranger and Sole Book Manager                                                                                                      | X      |     |                      |   |   |
| 10.4                                             | Amendment Number 1 and Waiver to Credit Agreement dated March 27, 2009, by and among Albemarle Maritime Corp., Arden Maritime Corp., Avon Maritime Corp., Birnham Maritime Corp., Bristol Maritime Corp., Chester Shipping Corp., Cumberland Navigation Corp., Darby Navigation Corp., Dover Maritime Corp., Elrod Shipping Corp., Exeter Shipping Corp.,Frankfort Maritime Corp., Glenwood Maritime Corp., Hansen Shipping Corp., Hartley Navigation Corp., Henley Maritime Corp., Hudson Maritime Corp., Jessup Maritime Corp., Montrose Maritime Corp., Oldcastle Shipping Corp., Quentin Navigation Corp., Rector Shipping Corp., Remsen Navigation Corp., Sheffield Maritime Corp., Sherman Maritime Corp., Sterling Shipping Corp., Stratford Shipping Corp., Vedado Maritime Corp., Vernon Maritime Corp. and Windsor Maritime Corp., TBS International Limited, TBS Shipping ServicesInc. Bank of America, N.A., Citibank, N.A., DVB Group Merchant Bank (Asia) Ltd., TD Bank, N.A., Keybank, N.A., Capital One Leverage Finance Corp., Guaranty Bank, Merrill Lynch Commercial Finance Corp., Webster Bank National Association, Comerica Bank and Tristate Capital Bank (Confidential treatment has been requested for portions of this agreement.)  | X      |     |                      |   |   |
| 10.5                                             | First Amendment to Loan Agreement dated March 27, 2009, by and among Amoros Maritime Corp., Lancaster Maritime Corp. and Chatham Maritime Corp., TBS International Limited, Sherwood Shipping Corp., and AIG Commercial Equipment Finance, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | X      |     |                      |   |   |
| 10.6                                             | Supplemental Letter to the Loan Agreement dated March 10, 2009, by and among Grainger Maritime Corp., TBS International Limited and Joh. Berenberg, Gossler & Co. KG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | X      |     |                      |   |   |
| 10.7                                             | Supplemental Agreement relating to the Term Loan Facility dated March 27, 2009, each among Argyle Maritime Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry Maritime Corp., Sunswyck Maritime Corp., TBS International Limited and The Royal Bank of Scotland plc., Citibank N.A., Landesbank Hessen-ThuringenGirozentrale, Norddeutsche Landesbank Girozentrale, Alliance & Leicester Commercial Finance plc, and Bank of America, N.A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | X      |     |                      |   |   |
| 10.8                                             | Supplemental Agreement relating to the Guarantee Facility Agreement dated March 27, 2009, each among Argyle Maritime Corp., Caton Maritime Corp., Dorchester Maritime Corp., Longwoods Maritime Corp., McHenry Maritime Corp., Sunswyck Maritime Corp., TBS International Limited and The Royal Bank of Scotland plc                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | X      |     |                      |   |   |
| 10.9                                        | First Amendatory Agreement dated March 23, 2009, by and among Bedford Maritime Corp., Brighton Maritime Corp., Hari Maritime Corp., Prospect Navigation Corp., Hancock Navigation Corp., Columbus Maritime Corp. and Whitehall Marine Transport Corp., TBS International Limited, DVB Group Merchant Bank (Asia) Ltd., The Governor and Company of theBank of Ireland, DVB Bank SE, Natixis                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 8-K      | 000-51368                 | 10.2 | 4/02/2009 |
| 10.10                                            | Supplemental Letter to Loan Agreement dated March 24, 2009, by and among Claremont Shipping Corp., Yorkshire Shipping Corp., TBS International Ltd. and Credit Suisse                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 8-K      | 000-51368                 | 10.4 | 4/02/2009   |
| 10.11                                            | Supplemental Letter to the Loan Agreement dated March 2, 2009, by and among Dyker Maritime Corp., TBS International Limited and Commerzbank AG                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 8-K      | 000-51368                 | 10.6 | 4/02/2009 |
| 10.12                                       | First Amendatory Agreement dated March 26, 2009, amending and supplementing the Bareboat Charter by and among Adirondack Shipping LLC, TBS International Limited and Fairfax Shipping Corp. dated as of January 24, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 8-K      | 000-51368                 | 10.9 | 4/02/2009 |
| 10.13                                            | First Amendatory Agreement dated March 26, 2009, amending and supplementing the Bareboat Charter by and among Rushmore Shipping LLC, TBS International Limited and Beckman Shipping Corp. dated as of January 24, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 8-K      | 000-51368                 | 10.10 | 4/02/2009 |
| 31.1                                             | Certification of the Chief Executive Officer pursuant to Rule 13a-15(a) and 15d-15(a) of the Securities and Exchange Act, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | X      |     |                      |   |   |
| 31.2                                             | Certification of the Chief Financial and Accounting Officer pursuant to Rule 13a-15(a) and 15d-15(a) of the Securities and Exchange Act, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | X      |     |                      |   |   |
| 31.3                                             | Certification of the Chief Accounting Officer pursuant to Rule 13a-15(a) and 15d-15(a) of the Securities and Exchange Act, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | X      |     |                      |   |   |
| 32                                               | Certification of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | X      |     |                      |   |   |

| (a) | Pursuant to SEC Release No. 33-8212, this certification will be treated as "accompanying" this Quarterly Report on Form 10-Q and not "filed" as part of such report for purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject the liability of Section 18 of the Securities Exchange Act, as amended, and this certification will not be deemed to be incorporated by reference into any filing underthe Securities Act of 1933, as amended, or the Securities Exchange Act, as amended, except to the extent that the registrant specifically incorporates it by reference. |
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Table of Contents

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Signatures

|   |      |  TBS INTERNATIONAL LIMITED                                                                                                                                                                                                                                                                                                                  |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |  (Registrant)                                                                                                                                                                                                                                                                                                                               |
|   |      |                                                                                                                                                                                                                                                                                                                                        |
|   |  By: |  /s/ Joseph E. Royce                                                                             |
|   |      |  Joseph E. Royce President and Chief Executive Officer                                                                                                                                                                                                                                                                                 |
|   |      |                                                                                                                                                                                                                                                                                                                                             |
|   |  By: |  /s/ Ferdinand V. Lepere                                                                                                            |
|   |      |  Ferdinand V. Lepere Executive Vice President, Chief Financial Officer                                                                                                                                                                                                                                                            |
|   |      |                                                                                                                                                                                                                                                                                                                                             |
|   |  By: |  /s/ Frank Pittella                                                     |
|   |      |  Frank Pittella Chief Accounting Officer                                                                                                                                                                                                                                                                                               |