25 August-1 September 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Another excellent week concluded with a lot of operators thinking the market is at its top. A certain slowdown is natural; we believe some spot deals can get a lower level, for example spot ore Brazil/China where there are a lot of units ballasting from Far East; generally speaking the market is still quite florid and shall regain for October positions. On the other hand panamaxes' constant growth is not helping those operators who were thinking to split cargoes. BCI closed at 5,187 (+213), 4 T/C average rose a $3,232 achieving $56,875. Panamax (Atlantic and Pacific) The short/long period still remain very strong particularly in Asia with rates for one year nudging $30,000 daily, two years at $25,000 daily and a three deal done at $23,000 daily. Spot fixing did gain some momentum in the middle of the week with rates almost reaching the same levels as short period. However does need a run of healthy spot fixing to justify the optimism. In the Atlantic, the cape cargo splitting helped underpin the market with talk that 3 cargoes were split with rates agreed topping at close to $35,000 daily. The market here does need some fresh spot activity next week to maintain the momentum. Quick round voyage rates were hovering around $30,000 daily range. Handy (Far East/Pacific) A slow but constant grow was seen during last week. In particular medium sized units (35,000 – 40,000 dwt) had more benefit. Fixture at very interesting levels were reported especially on intra Far East routes. A modern Supramax achieved $31,000 for a trip China vai Vietnam redely Japan. Handy (North Europe/Mediterranean) Seems the market started to move upwards, levels grew both on trip Cont – Far East and transatlantic routes. The levels are still very good from Black Sea to Middle East. One of the biggest players took an old 37,000 dwt for a trip Bsea – WC India at $27,500 daily. Handy (USA/N.Atlantic/Lakes/S.America) Gulf and NCSA seems to be the most active areas; period interest is still strong. Also in this area growth was particularly stronger for medium size. More trip to Far East were reported than previous week. Handy (Indian Ocean/South Africa) Last week started steady and towards the end also this area saw recover. Iron Ore trip India – China saw high $20,000 for modern Supramax. Period interest is growing, we assume they want to achieve better number than after the end of monsoon. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it