8. VESSELS, NET

Vessels, net, consist of the carrying value of 20 vessels including drydocking costs.

All figures in USD '000	Vessels		Drydocking		Total
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
Carrying Value December 31, 2012		933,424		31,431		964,855
Accumulated depreciation December 31, 2012		397,641		15,822		413,463
Impairment Loss on Vessel 2012		12,030		-		12,030
Depreciation expense 2012		62,795		6,424		69,219

Impairment Loss on Vessels

The Company recorded impairment loss on vessels of $12.0 million, $nil and $nil for the years ended December 31, 2012, 2011 and 2010, respectively. The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of each of its vessels may not be recoverable. During the fourth quarter of 2012, the Company identified one vessel where we believed that future undiscounted cash flow was less than the carrying value and therefore not fully recoverable. The impairment loss recorded is equal to the difference between the asset's carrying value and estimated fair value.