Question-and-Answer Session
Operator
Thank you. (Operator Instructions). And your first question comes from the line of Jon Chappell with JP Morgan. Please proceed.
Jon Chappell - JP Morgan
Thank you. Good afternoon, guys. Eirik, first question for you has to do with the VLCC fleet. The days didn't add up to [492] days per ship in the third quarter. Yet, there is no mention of any scheduled offhire in the quarter. Was there some unexpected offhire for VLCC in the third quarter, or was that just waiting time associated with the weaker market?
Eirik Ubøe
No, there were, let's see, for the Q3, there was a little bit offhire on schedule, not much though, just for some minor repairs. And I'm just scanning through here now. One was actually a few days, it was related to a missing of a slot, as we were delayed. So, I think the total offhire for the VLCCs was about nine days. Is that right? Yeah.
Jon Chappell - JP Morgan
Yes.
Eirik Ubøe
Nothing, I mean, some minor repairs and some delays.
Jon Chappell - JP Morgan
Okay.
Ole Jacob Diesen
Can I add something there, Jon, because, you said something, it was waiting for cargo. Waiting for cargo is not our cost that belongs to the charter. We have the ships on time charters and we are not suffering offhire as a result of waiting for cargo.
Jon Chappell - JP Morgan
Okay. My other question had to do with on the cost side. Obviously, we've seen a lot of inflation in costs, you have an agreement with OSG. How much longer are your costs fixed with OSG and what are you seeing in the form of insurance cost increases this year and going forward?
Eirik Ubøe
Do you want to take that, Ole Jacob?
Ole Jacob Diesen
If you take the insurance cost, I will talk about the management contract.
Eirik Ubøe
The insurance cost we had for 2007 will end up about $2.5 million and the expectations for 2008 is an increase about 7%, or 6%, 7%, 8%.
Ole Jacob Diesen
With regard to the management contract, the contract we have with OSG is for the period of the charters, first of all. Then secondly, we can terminate employment with three months notice. OSG on their hand cannot terminate the agreement until earliest in October 2008 with effect from January 2009. So, that's an option they have. We have not discussed anything more with OSG, but I think that OSG as a charter, we'll have a strong interest in maintaining the management contract.
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