14 - 21 April 2006 weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) After the Easter holidays in the Western hemisphere people were hoping for the market to recover, but the opposite took place: 2,562 points less since the last day before the holidays. What's more there will be the Greek Easter at the weekend and on Monday and the Golden Week in China, Korea and Japan which will start on Friday: we think therefore that a real recovery will not happen until at least the 9/10 of May. Scarce activity remained in both the Atlantic and the Pacific where the indices have declined, whilst coal ex Richards Bay has remained essentially unchanged around $12.70/12.80. Panamax (Atlantic and Pacific) European and Greek holidays contributed to soften the Atlantic market. Rates via East Coast South America to the Far East which began the week around the $20,000 level dropped lower each day were later concluded in the high $17,000's. Trans-Atlantic round voyages have dropped down into the low $16,000s. In the Pacific, continuing port delays have impacted tonnage supply to the spot market however the week has seen a fairly steady drop off in rates as tonnage sought to cover early load positions. NoPac rounds fell to $16,500. Trips back featured the 1996 'Rainkiss' 69,000 dwt fixing from North China to the Med at $16,000 daily. Handy (Far East/Pacific) A lot of activity goes on in the area with rates holding at similar high levels seen for business concluded just before the Easter holidays. Charterers still need pay big money to attract owners into Atlantic bound fixtures and the various outbound cement contract involved charts are struggling to limit their losses. Period interest from charterers is still very much alive with fancier handymaxes now achieving over $20,000 daily for 4/6 months employment. Handy (North Europe/Mediterranean) There is still very few fixable business for owners with tonnage available in the Continent and activity out of the Black Sea remains slow as well. Even if owners tend since some time to avoid position tonnage into these areas, there is still a good volume of boats available so charterers started manage achieve lower rates also for business into the US Gulf. Handy (US/N. Atlantic/Lakes/S. America) The US Gulf remained on last week's levels even if very few concluded fixtures were reported. A nice handymax is rumored having fixed $18,000 for a trip to Far East, and at the end of the week there is an optimistic view about some forthcoming market recovery. South America hasn't been especially active and suffered some interference by the cutting in of tonnage ballasting from the other side of the Atlantic. Handy (Indian Ocean/South Africa) The forthcoming monsoons haven't still affected the Indian iron ore trade, even if only one fixture has been reported the trade remained very firm from owners who are enjoying a nice cat-and-mouse play with charterers. Operators involved with contractual performance of bauxite from India to Atlantic destinations are just driven mad to perform due to owners asking rate premiums over the India/Far East rates. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it