These statements are based on certain assumptions made by OSG management based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Forward-looking statements are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of OSG, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Factors, risks and uncertainties that could cause the actual results to differ from the expectations reflected in these forward-looking statements are described in OSG's annual report on Form 10-K for 2011 and in other reports OSG files with the Securities and Exchange Commission.

For this conference call, we have prepared and posted on OSG's website supporting slides that supplement our prepared remarks. The supporting presentation can be viewed and downloaded from the Investor Relations Webcasts and Presentations section on

With that out of the way, I'd like to turn the call over to our Chief Executive Officer and President, Morten Arntzen. Morten?

Morten Arntzen

Thanks, Jim. Good morning, everyone, and thank you for joining us on our second quarter call. With me in New York are Myles Itkin, our CFO; Lois Zabrocky, Chief Commercial Officer for all International Flag businesses; Janice Smith, our Chief Risk Officer; Jim Edelson, General Counsel; Jerry Miller, our Controller; and John Collins, Head of Investor Relations. Joining us from Newcastle is Captain Ian Blackley, Head of our International Flag Shipping Operations; and from Tampa, Captain Bob Johnston, led the U.S. Flag Unit.

Please turn to Page 3 of presentation. When we spoke last May -- back in May, activity in our international flag markets was relatively healthy, especially in the larger crude classes and for MRs. Not long thereafter, demand's fell off in these segments as seasonal and technical factors reversed. Spot rates fell throughout May and then spent June at levels well below when the quarter opened, and that levels in some trade lanes close to operating cost breakeven levels.

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