15 - 22 September 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Market trend changed on Tuesday: BCI index decreased 178 points since previous Friday, the average 4 T/C routes decreased from $62,977 to $60,188. While Far East held for a few days, the Atlantic basin was the market that suffered more with few cargoes and many units ballasting. Also coal from Richards Bay decreased about half a dollar on the index, but some T/C fixtures were registered at an equivalent below $18. There are still many units for prompt delivery in Atlantic affecting rates for ore in Brazil to China that decreased to $33 and we believe the decrement will also last next week. Panamax (Atlantic and Pacific) Little bit more weakness the Panamax market this week; in fact rates are under pressure in both basins. In the Atlantic, east coast South America remaining with few fresh cargoes while the US Gulf area no fresh at all. Trans-Atlantic business now fixed at $28,000 daily plus a ballast bonus for an older lady and continent rounds worth at $28,500 daily. Pacific basin seemed better than Atlantic and the rates confirm this gap between the areas. The NoPac rounds were done at lower $33,250 daily, although other business held at last done levels. The Baltic Panamax generally is loosing points since couple of days. Handy (Far East/Pacific) The beginning of the week was characterized by few fixtures and market stagnation. It seemed there was more activity for 30/40,000-sized units. Even though a little less healthy fixtures are still at good levels especially for Black Sea. Handy (North Europe/Mediterranean) Compared to latest weeks Black Sea and Mediterranean seemed to be less active, meantime a good number of fixtures from Continent were registered both for Far East and transatlantic trips, but at a little less than previous week. Handy (USA/N.Atlantic/Lakes/S.America) At the beginning of the week Handy and Supramax were still at very high levels: for a 44,000 dwt were paid $40,000 for a to trip WC America and a Supramax achieved $38,000 for Far East trip. The last two days showed a little decrement also in this area. Still very attractive rates were seen from East Coast South America to Continent. Handy (Indian Ocean/South Africa) Enquiry for iron ore tonnages to China are still lacking, rates little decreased compared to recent fixtures. West Africa trips are still very attractive. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it