Subject: Xiamen MSA Issued Notice on Navigation Speed Limit and Navigation Restrictions under Heavy Weather for Vessels Sailing within Xiamen Sea Area

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Circular Ref No.:PNI1804 Date: 13 March 2018 Dear Sirs or Madam, Subject: Xiamen MSA Issued Notice on Navigation Speed Limit and Navigation Restrictions under Heavy Weather for Vessels Sailing within Xiamen Sea Area (This circular is prepared by Huatai Xiamen Office) Xiamen Marine Traffic Safety Regulation has come into force on 01 March, 2018, Article 8 of which stipulated that the maritime administration department shall take traffic control measures at specific sea areas during specific period in the event of heavy weather. And it was stipulated in Article 9 that vessels shall navigate at safe speed according to the prevailing circumstance and condition when sailing within Xiamen sea area. In line with the above stipulations, Xiamen MSA issued notice on Navigation speed limit and Navigation restrictions under heavy weather for vessels sailing within Xiamen sea area to interpret the detailed requirement. The notice has come into effect as of 01 March 2018. Key points of the notice I. Speed limit for vessels sailing within Xiamen sea area The vessels shall observe the maximum speed limit when sailing within Xiamen Sea area: 1. The maximum speed limit is 15 knots during the route segment from No.11 beacon to No.29 beacon of main channel of Xiamen port. 2. The maximum speed limit is 12 knots during the route segment from No.602 beacon to No.610 beacon of Haicang channel; the maximum speed limit is 10 knots for the route segment in the west of No. 610 beacon of Haicang channel.

3. The maximum speed limit is 12 knots during the route segment from No. 29 beacon to No. 41 beacon of Dongdu channel; The maximum speed limit is 10 knots for the route segment in the north of No. 41 beacon and Maluan channel. 4. The maximum speed limit is 12 knots for Liuwudian channel; 5. The maximum speed limit is 10 knots for Lujiang channel and Tongyi channel. The speed limit for skimming dish at Lujiang channel is 15 knots. 6. The maximum speed limit for high speed passenger craft passing through Jintong channel and Xiajin route is 25 knots. 7. The maximum speed limit at the sea areas near the channels mentioned in above clause 1 to 5 shall refer to the requirement of speed limit of the nearby channel. II. Navigation restrictions under heavy weather for vessels sailing within Xiamen sea area 1.In the event the visibility is less than 2 sea miles caused by fog, haze or rain, the vessels at sea shall take safety measures adapted to the conditions of restricted visibility for the sake of safety. 2.In the event the visibility at sea decreased to the following conditions, the relevant shipping enterprise, dock management unit shall suspend shipping service timely, the vessels shall suspend entering into to or departing from the port, the vessels underway shall take particular caution, drop anchor at nearby sea area if the prevailing circumstance permit, and comply with the organization and command of Xiamen VTS. a)in the event the visibility is less than 1000m, the cargo ship, construction ship, international cruising ship, cross-straits direct transportation passenger roller and passenger ship sailing between Xiamen and Jinmen, Xiamen and Zhiyu island, and that engaged in sea travel shall suspend shipping service timely. b)in the event the visibility is less than 700m, the passenger ship that engaged in ship route service between Xiamen to Zhangzhou merchants bureau economic and technological development zone, cruise center to Gulangyu island, Songyu to Gulangyu island, the first pier of Lujiang Road to Songyu(Gulangyu island), Dadeng island to Xiaodeng island, Dadeng to Zhilian River and other travel route service shall suspend shipping service timely.

c)in the event the visibility at Lujiang channel is less than 350m, the passenger ship sailing between Lujiang Road to Gulangyu ferry shall suspend shipping service timely. 3.In the event the navigation environment is well and the visibility at sea is no less than 700m, the cross-straits direct transportation roller may submit written report to maritime administration organization under condition that effective safety measures has been taken, and upon consultation between maritime and port department, may enter into the port for berth or depart from the port if safe sailing condition was conformed. 4.The vessels shall navigate, operate strictly in accordance with the classification of vessels sustainability in winds and seas described in certificate of competency for ship. 5.In the event the wind force is more than 6, the vessels shall be forbidden to berth or depart, and passenger ship shall be forbidden to load or unload passengers. 6.The passenger ship engaged in ship route within Xiamen sea area (excluding cross-strait direct transportation ship, passenger ships engaged in Xiamen to Jinmen route, international cruising ship) shall suspend shipping service and take shelter measures timely in the event the wind force in the route is more than 6. And all ships shall suspend shipping service and take shelter measures timely in the event the wind force of Xiamen sea area is more than 8. 7.During the period that affected by tropical cyclone, the shipping enterprise and vessels shall take shelter to avoid attack of typhoon in accordance with command of local preventing typhoon command organization and relevant typhoon preventing plan. 8.The heavy weather in this announcement means the weather with poor visibility, gale, tropical cyclone etc., which will affect sailing, berthing and operating safety. Xiamen sea area means the areas within the connecting lines among Dadeng island, Xiaodeng island, Jinmen, Xiaojinmen, Dadan, Qingyu and other island which is under administration of Xiamen MSA and covered by Xiamen VTS. Legal liability in the event of violation In the event of violation of above rules, the maritime administration department shall order the vessel to correct, and impose penalty on Owners or vessel s operator in amount of RMB5,000 to RMB10,000; impose penalty to Master in amount of RMB2,000 to RMB10,000, and in case of gross violation, detain certificate of

competency for seafarers for 6 months. Recommendations Given the above, we have made free translation of the notice regarding the interpretation which is attached to this circular for your easy reference. We suggest Owners to pay attention to the requirement of traffic control under heavy weather and speed limit, and comply with the Xiamen Marine traffic Safety Regulation when sailing within Xiamen sea area. Meantime, Owners are also recommended to double check with ship agent on special requirement before ship s calling in order to avoid violation of the regulation or any penalty. Any queries, please feel free to contact our Xiamen office at: Email: pni.xm@huatai-serv.com Ms. Tracy Zheng Mobile: +86 186 5000 0798 Ms. Lina Gao Mobile: +86 159 6021 5136 Mr. Huang Dongyao Mobile: +86 152 5920 0803 Duty phone: +86 150 6077 2037 Best regards Yu Limin President

FREE TRANSLATION Announcement of Xiamen MSA Ref No.: 1 Announcement regarding navigation speed limit for vessels sailing within Xiamen sea area issued by Xiamen MSA of People s republic of China Xiamen Marine Traffic Safety Regulation shall come into force on Mar 1, 2018. To enhance the management of marine traffic safety of Xiamen sea area, to maintain the maritime traffic order and secure the personal and property safety, according to the stipulation of Article 9 of Xiamen Marine Traffic Safety Regulation, the requirement of navigation speed limit for vessels sailing within Xiamen sea area is announced as follows: I. The vessels shall navigate at safe speed according to the prevailing circumstance and condition when sailing within Xiamen sea area. The navigation speed limit announced in this notice shall not exonerate the vessel or Master s responsibility to navigate at safe speed. II. The vessels shall observe the maximum speed limit when sailing within Xiamen Sea area: 2. The maximum speed limit is 15 knots during the route segment from No.11 beacon to No.29 beacon of main channel of Xiamen port. 3. The maximum speed limit is 12 knots during the route segment from No.602 beacon to No.610 beacon of Haicang channel; the maximum speed limit is 10 knots for the route segment in the west of No. 610 beacon of Haicang channel. 4. The maximum speed limit is 12 knots during the route segment from No. 29 beacon to No. 41 beacon of Dongdu channel; The maximum speed limit is 10 knots for the route segment in the north of No. 41 beacon and Maluan channel. 5. The maximum speed limit is 12 knots for Liuwudian channel; 6. The maximum speed limit is 10 knots for Lujiang channel and Tongyi channel. The speed limit for skimming dish at Lujiang channel is 15 knots.

7. The maximum speed limit for high speed passenger craft passing through Jintong channel and Xiajin route is 25 knots. 8. The maximum speed limit at the sea areas near the channels mentioned in above clause 1 to 5 shall refer to the requirement of speed limit of the nearby channel. III. The official business ship shall observe the above mentioned speed limit except for performing urgent task. IV. The speed mentioned in this announcement means the navigation speed over the ground. V. This announcement shall come into effect from Mar 1, 2018. Xiamen Maritime safety administration Feb 6, 2018 Announcement of Xiamen MSA Ref No.: 2 Announcement regarding navigation restrictions under heavy weather for vessels sailing within Xiamen sea area issued by Xiamen MSA of People s republic of China Xiamen Marine Traffic Safety Regulation shall come into force on Mar 1, 2018. To enhance the management of marine traffic safety of Xiamen sea area, to maintain the maritime traffic order and secure the personal and property safety, according to the stipulation of Article 8 of Xiamen Marine Traffic Safety Regulation, the requirement of navigation restrictions under heavy weather for vessels sailing within Xiamen sea area is announced as follows: I. In the event the visibility was less than 2 sea miles caused by fog, haze or rain, the vessels at sea shall take safety measures adapted to the conditions of restricted visibility for the sake of safety. II. In the event the visibility at sea decreased to the following conditions, the relevant shipping enterprise, dock management unit shall suspend shipping service timely, the vessels shall suspend entering into to or departing from the port, the vessels underway

shall take particular caution, drop anchor at nearby sea area if the prevailing circumstance permit, and comply with the organization and command of Xiamen VTS. 1. In the event the visibility is less than 1000m, the cargo ship, construction ship, international cruising ship, cross-straits direct transportation passenger roller and passenger ship sailing between Xiamen and Jinmen, Xiamen and Zhiyu island, and that engaged in sea travel shall suspend shipping service timely. 2. In the event the visibility is less than 700m, the passenger ship that engaged in ship route service between Xiamen to Zhangzhou merchants bureau economic and technological development zone, cruise center to Gulangyu island, Songyu to Gulangyu island, the first pier of Lujiang Road to Songyu(Gulangyu island), Dadeng island to Xiaodeng island, Dadeng to Zhilian River and other travel route service shall suspend shipping service timely. 3. In the event the visibility at Lujiang channel is less than 350m, the passenger ship sailing between Lujiang Road to Gulangyu ferry shall suspend shipping service timely. III. In the event the navigation environment is well and the visibility at sea is no less than 700m, the cross-straits direct transportation roller may submit written report to maritime administration organization under condition that effective safety measures has been taken, and upon consultation between maritime and port department, may enter into the port for berth or depart from the port if safe sailing condition was conformed. IV. The vessels shall navigate, operate strictly in accordance with the classification of vessels sustainability in winds and seas described in certificate of competency for ship. V. In the event the wind force is more than 6, the vessels shall be forbidden to berth or depart, and passenger ship shall be forbidden to load or unload passengers. VI. The passenger ship engaged in ship route within Xiamen sea area (excluding cross-strait direct transportation ship, passenger ships engaged in Xiamen to Jinmen route, international cruising ship) shall suspend shipping service and take shelter measures timely in the event the wind force in the route is more than 6. And all ships shall suspend shipping service and take shelter measures timely in the event the wind force of Xiamen sea area is more than 8. VII. During the period that affected by tropical cyclone, the shipping enterprise and

vessels shall take shelter to avoid attack of typhoon in accordance with command of local preventing typhoon command organization and relevant typhoon preventing plan. VIII. The heavy weather in this announcement means the weather with poor visibility, gale, tropical cyclone etc., which will affect sailing, berthing and operating safety. Xiamen sea area means the areas within the connecting lines among Dadeng island, Xiaodeng island, Jinmen, Xiaojinmen, Dadan, Qingyu and other island which is under administration of Xiamen MSA and covered by Xiamen VTS. IX. This announcement shall come into effect from Mar 1, 2018. Xiamen Maritime safety administration Feb 6, 2018