Note 3. Vessels

a. Vessel and Vessel Improvements

At June 30, 2011, the Company's operating fleet consisted of 41 dry bulk vessels. In January, February and May 2011, the Company took delivery of the Thrush, Nighthawk, and Oriole, respectively.

In May 2011, the Company decided to sell the Heron, a 2001-built Supramax, and reached an agreement to sell the vessel for $22,572,000, after brokerage commissions payable to a third party. The Heron was not available for delivery before early at the third quarter. On July 26, 2011 the Company sold the vessel and expects to realize a net loss of approximately $406,000 during the third quarter of 2011.

Vessel and vessel improvements:



Vessels and Vessel Improvements, at December 31, 2010	$	1,509,798,249
Purchase of Vessel Improvements		607,094
Delivery of Newbuild Vessels		139,154,512
Depreciation Expense		(32,980,277	)
Vessels and Vessel Improvements, at June 30, 2011	$	1,616,579,578

b. Advances for Vessel Construction

The Company took delivery of the Thrush, Nighthawk, and Oriole in January, February and May 2011, respectively. In 2010 the Company took delivery of twelve newly constructed vessels, the last two Japanese-built vessels, the Golden Eagle and Imperial Eagle, in January and February 2010, respectively, and ten Chinese-built vessels the Thrasher, Crane and Egret, in January 2010, Avocet in February 2010, the Gannet Bulker, Grebe Bulker and Ibis Bulker in April, May and June, respectively, the Jay and Kingfisher in July and the Martin in August. In 2009 the Company took delivery of four newly constructed vessels. Two vessels from the Japanese shipyard, the Crested Eagle and Stellar Eagle, delivered in January and March 2009, respectively and two vessels from the Chinese shipyard, Bittern and Canary, delivered in October and December 2009, respectively. In 2008 the Company took delivery of three vessels, the Wren and Woodstar were delivered by the Chinese shipyard in June and October 2008, respectively, and the Crowned Eagle, the first of the Company's five Japanese built vessels, was delivered in November 2008.

As of June 30, 2011, the Company had 5 Supramax vessels under construction at the shipyard in China. The total contract cost of the construction project in China is approximately $182,950,000, of which the Company has advanced $109,950,000 in payments towards the construction of these vessels. These vessels are expected to be delivered during the second half of 2011. The Company will incur additional costs relating to the construction of these vessels, including capitalized interest, insurance, legal, and technical supervision costs.

Advances for Vessel Construction:



Advances for Vessel Construction, at December 31, 2010	$	191,477,225
Progress Payments		92,209,670
Capitalized Interest		2,171,114
Legal and Technical Supervision Costs		6,367,106
Delivery of Newbuild Vessels		(139,154,512	)
Advances for Vessel Construction, at June 30, 2011	$	153,070,603