22 - 29 September 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Downward trend persisted: BCI lost 383 points reaching 5,120, minus 7%. The average 4 T/C went down at $55.234, $5,000 less than the previous week. In particular ore from Brazil to China registered a big decrement losing circa $4: week started at around $33.75 and closed at thick over $30.00. Also ore from Australia lost about $1. The Atlantic basin registered a similar trend: round Atlantic started at $58,500 and closed at around $53,000 and also ore from Brazil to Rotterdam decreased. The activity next week is expected to be quiet due to holidays in China, Korea and Japan. Panamax (Atlantic and Pacific) While there was little business reported done from the Atlantic basin sources reported firmer numbers and heightened activity in the east. A NoPac round was reported done at a better $35,000 daily. An Australia round voyage fixed at $30,000 daily for modern tonnage. There was also good interest in period business, with a modern LME said fixed at $35,250 daily for 6-8 months, also long period businesses are again in good activity with some vessel reported fixed at $31,500 for 14/16 months or $32,000 for 11/13 months while $26,500 are paid for 2 years time-charter on a modern tonnage. However, next week is likely to be considerably quieter with the Chinese away on Golden Week holiday as of October 1st. Germany will also be closed Monday for Reunification Day. Koreans are also closed for 2 days. Handy (Far East/Pacific) Market registered a slow but constant decrease. Rates in this area remained in line with previous week especially for bigger size. Decreased on Mediterranean/Continent routes and increased the trip to West Africa. Period is firm at higher rates: a 45,000 dwt was fixed at $26,750 for 11 – 13 months. Handy (North Europe/Mediterranean) Continent registered good business in line with previous week. Black Sea showed little decrements in rates. Generally speaking more interest was registered for smaller/medium units. Handy (USA/N.Atlantic/Lakes/S.America) Atlantic basin is still very active. Good levels were reported for modern 45,000 dwt units; still good levels were paid also for South America/Continent trip. A little decrease was registered in Pacific basin with few fixtures reported and many operators that preferred not to disclose their fixtures. Handy (Indian Ocean/South Africa) This area showed larger decrease, iron ore trip to China was valued at the end of the week around $20,000 daily also for modern Supramax. South Africa/Continent trip were fixed at lower rates. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it