Knightsbridge Tankers Limited entered into
new time charter agreements for its two very large crude carriers, TI Ningbo and TI Qingdao. The
two VLCCs, which are currently time chartered to Tankers International LLC, will commence their new time charter employment directly after the current charters expire in the first half of 2007. The TI Ningbo has been chartered for a period of four years and the TI Qingdao for a period of five years. The charter income for each VLCC will consist of a fixed base rate of $37,750 per day plus a market related element being 50 percent of the difference between a spot market related rate index and the base rate. (The VLCCs current charters are at a base rate of $30,000). The new charterer is Frontline Ltd.