8.	VESSELS, NET

Vessels, net, consist of the carrying value of 20 vessels including drydocking costs. During 2011 and 2010, we did not impair any of our vessels' carrying value, as we believe the future undiscounted cash flows expected to be earned by such vessels over their operating lives would exceed the vessels' carrying amounts.

All figures in USD ‘000	Vessels		Drydocking		Total
Carrying Value December 31, 2010		971,018		17,245		988,263
Accumulated depreciation December 31, 2010		275,744		19,782		295,526
Depreciation expense 2010		53,181		9,364		62,545
Carrying Value December 31, 2011		1,005,147		17,646		1,022,793
Accumulated depreciation December 31, 2011		334,846		9,398		344,244
Depreciation expense 2011		59,102		5,524		64,626

During 2011, our fleet has increased by three vessels, including two newbuilding vessels that we entered into agreements with Samsung Heavy Industries Co., Ltd. in April 2010.

Newbuilding Deliveries.

In April 2010, the Company entered into agreements with Samsung Heavy Industries Co. Ltd. to acquire two Suezmax newbuildings and the first vessel, the Nordic Breeze was delivered to the Company in August 2011 and the NordicZenith was delivered to the Company in November 2011. The Company took ownership of the vessels upon delivery from the shipyard at which time the title was transferred from the seller. The agreed total prices at delivery were $64.7 million and $64.7 million, respectively with 55% of the purchase prices paid when we signed the contracts and the balance paid on delivery. The table below shows total capitalized costs related to the two newbuildings delivered in 2011:

All figures in USD ‘000	2011		2010
Newbuilding – Nordic Breeze
Instalment		64,750		35,700
Capitalized interest		417		191
Capitalized cost *)		2,091		183
Total Newbuilding – Nordic Breeze as of December 31,		67,258		36,074

All figures in USD ‘000	2011		2010
Newbuilding – Nordic Zenith
Instalment		64,750		35,700
Capitalized interest		501		191
Capitalized cost *)		2,035		160
Total Newbuilding – Nordic Breeze as of December 31,		67,286		36,051
Total as of December 31,		134,544		72,125

*)	Capitalized cost consists of direct expenses incurred upon acquisition, such as supervision expenses incurred during the construction period, commission paid and legal fees.