Agencies Respond to Freight Ship Spilling Oil

Monday, November 02, 2009

The Coast Guard and O'Brien's Response Management are responding to oil which is leaking from the motor vessel Pac Alkaid, which is anchored 10 miles southeast of Southwest Pass near Venice, La.
The Pac Alkaid reported the discharge to the Coast Guard at approximately 2 a.m. Oct. 30, when it was anchored five miles southeast of Southwest Pass. Winds and currents pushed the oil to the northwest on Oct. 30, which caused a sheen to wash up against the rocks of the Southwest Pass jetty. The Coast Guard ordered the vessel to move further offshore at approximately 11 a.m. Oct. 30 in order to lessen the impact of the oil on the shoreline.

The initial discharge of an estimated 12,000 gallons of bunker oil was caused by a hole in the Pac Alkaid's hull.  The hole is approximately five centimeters in diameter, and lies five feet below the waterline. The hole penetrated the vessel's starboard fuel tank, which has a capacity of nearly 120,000 gallons of bunker oil. The cause of the hole is currently unknown.

O'Brien's Response Management hired the response vessel Louisiana Responder, a 220-ft vessel which is owned by the Marine Spill Recovery Corporation, to clean up the spill. The La. Responder has been on scene since Oct. 30, but oil recovery has been prevented by three-to-five foot waves and a lack of concentrated oil. The Coast Guard has conducted four helicopter flights with observers who have photographed and assessed the spill since Oct. 30. O'Brien's Response Management hired commercial divers, who inspected the hole in the vessel's hull this morning. The divers are currently awaiting parts which they will use to attempt to plug the hole. These parts are expected to arrive later this evening.

The Coast Guard and O'Brien's Response Management have formed a Unified Command which is responding to this incident and will continue to monitor and assess the vessel's condition, the temporary repairs, and the clean-up.

10. Safe Bulkers New Time Charter
Safe Bulkers, Inc. (NYSE: SB), announced that it has entered into a new period time charter for the Andreas K, a 92,000 dwt Post-Panamax class vessel, with a delivery date in November 2009, for a minimum duration of 12 months and a maximum duration of 14 months, at a gross daily rate of $20,500 less 3.75% total commissions.

Our subsidiary Maxdodeka Shipping Corporation took delivery of the newbuild Andreas K on September 8, 2009 and the vessel has since been operated in the spot market. Following this delivery, our operational fleet expanded to 14 drybulk vessels, comprised of five Panamax, three Kamsarmax and six Post-Panamax vessels, all built post-2003.

Polys Hajioannou, CEO and Chairman of the Board of Directors of the Company, said: "We have concluded a new period time charter which secures additional contracted revenues to our company and reinforces the stability of our cash flows. This charter is accretive to earnings and demonstrates our ability to develop direct business with the industry's charterers."


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