21 - 28 July 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Another positive week for Capesize who saw increasing rates in most of the market sectors: Atlantic basin closed the week very close to Usd 50,000 for round voyage, the front-haul $63,600. Round Pacific is still a little less than the Atlantic one at $45,500, the back-haul reached $31,000. The average 4 T/C routes closed at $47,501 an $2,014 increment since last Friday. The period is still under pressure: in Atlantic M/v Aquajoy 171.015/03 was fixed at $59.000 for a 4/6 months period with delivery Cont 1/10 September; for longer period a 170,000/01 was fixed at $32,750 for 5 years basis prompt delivery Cont to BHP Billiton. Panamax (Atlantic and Pacific) The Atlantic Panamax remain still very active most of the case with positional fixture done with at quite disparate rates. Trips out for modern tonnage are taking rates as high as $27,750 daily, while a trans-Atlantic round voyage took $23,750 daily. There is still lot of interest in period fixtures, with LME's is being fixed for short period business at $26,500 daily. The Pacific basin was a "bit of a mixed bag" today but now an increased interest on short period is bringing now the value at around $25/25.500 level. Handy (Far East/Pacific) Additional enquiry for cargoes into Atlantic waters is further firming up the rates. On top of the clinker and cement cargoes to US Gulf and West Africa, Chinese ports are loading vessels with coal to Turkey and steels to European countries. Period chartering activity remains quite alive and the daily market growth allows period relet speculations. Handy (North Europe/Mediterranean) Reports of concluded fixtures from the Continent are still lacking, but Handymax activity from Mediterranean and Black Sea has grown up with the majority of business bound to Middle East. Agreed rates have shown further improvement and chartering activity is described being quite positive for owners also for handysizes. Handy (USA/N.Atlantic/Lakes/S.America) South American market showed a larger line up of available tonnage in prompt positions with not enough chartering demand which allowed charterers to save some money with their latest concluded fixtures. US Gulf is quite hot with good numbers paid both for transatlantic and Far East bound interest. Charterers keep chasing tonnage in the area for short period fixing but struggle to reach an agreement on the money with owners. Handy (Indian Ocean/South Africa) Charterers are trying save money by seeking tonnage for short period delivering in this area but no fresh fixtures were concluded yet. South African market is enjoying a firmer trend and some vessels are rumored to have been fixed with delivery Indian Ocean via South Africa to Far East. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it