21 - 28 April 2006 weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Another week with declining market due to the ’Golden Week' over the next week with operators and owners in China, Japan and South Korea being on holidays, we don't expect there will be much activity over all. There has been a long list of tonnage fixed and market failed to drop substantially, especially in Atlantic where the rates remained stable or little declining. BCI closed at 3,040 last Friday equivalent to minus 217 points and with the average of the 4 t/c routes instead falling of almost $3.000 over the week. Round voyage rates in Atlantic ranged from the mid/high $20.000 daily range while voyage rates from Brazil to the East were fixed in the very low $20's level. Period business T/C included one 172.000 dwt the “Mona Century” fixing for 10 years at $23.000 and then relet at $24.000 for 5 years. It is not expected big amount of fixtures this week which should be postponed till beg/mid of next week when all the Far Eastern operators will be back at work. Panamax (Atlantic and Pacific) Market was influenced by the forthcoming holidays in Pacific (Golden Week in Japan and China) and May Day holidays in almost the rest of the World with rates decreasing almost in both basins. In the Atlantic, charterers succeeded in pushing rates down again, with a modern vessel doing a trans-Atlantic round done at $14,500 daily. In the Pacific, NoPac rounds saw rates around $16,300 daily, while trips back to the UK earned $16,500 daily. Handy (Far East/Pacific) Even more activity was seen in the area with a lot of fresh demand still going on and less tonnage left available for fixing. Owners tend to refuse more and more single voyage fixtures compelling charterers to book tonnage for short period to perform their shipments. Agreed rates are close to what is paid for a single trip which transpires charterers optimism in a persisting firm market after next week's major holidays in China and Japan. Handy (North Europe/Mediterranean) The Black Sea remains a poor market for owners having to agree low rates for Middle East bound employments. Rates to Americas remain steady while activity from northern Europe is still lacking, some scrap requirements are not sufficient to awake this side of the market. Handy (US/N. Atlantic/Lakes/S. America) There have been some ups and downs on the South American market and no final trend is still available also due to lack of reported fixtures. Us Gulf is slowly consolidating into a little firmer atmosphere. Reported fixtures show levels very similar or touch higher to concluded last week. Handy (Indian Ocean/South Africa) The India to China iron ore trade keeps enjoying a very steamy market with owners still achieving very firm rates. Chartereres involved with Atlantic discharge business try to keep on the watch hoping to catch next week some unfixed prompt vessel which could get stuck due to the holidays in Far East. The South African market remained bullish enough. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it