26 May – 02 June 2006 weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Despite the Bank Holiday in London on Monday the 29th, the market gained strength since Wednesday to close the week 180 points up, but 237 points over the last 3 days of the week. Also the 4 T/c index gained $2,184 to close the week at over $30,000. But there have been a wakeup also on the short period t/c with some capes chartered at over $33/34,000 with delivery Far East. Iron ore ex Brazil for China rallied up to over $23 with numerous fixtures reported and there has also been significant activity in the Far East especially from BHP Billiton and Rio Tinto who fixed numerous loadings of ore ex West Australia for China. Panamax (Atlantic and Pacific) The Atlantic market still remains rather static compared with Pacific. Rates via EC South America to the East are still hovering around the $20,000 level. For good types and trans-Atlantic round voyage is currently around $18,000. Cargoes and tonnage at present are very much equilibrated for the prompt positions but also still a sense of fragility remains for the forward position. The Pacific still registers a considerable pressure for prompt tonnage mainly in South East Asia /Indonesia which contributed to maintain high levels. All the sector received a big push up: Pacific rounds are now fixed at level very close to $20.000. Short Indonesia trips or similar are now paid at levels over $20.000 and trip back to Atlantic are now evaluated around $17/18.000. Short period market jumped from $17/17.500 to above $19.000. Handy (Far East/Pacific) The volume of the enquiry was softer with an on-going feeling about rates being under pressure and general feelings about this area starting go into some downward trend. Very few fixtures were reported concluded but rates didn't reduce from previous done. Period interest was quiet all around. Handy (North Europe/Mediterranean) The Continental market started showing little improvement but limited to positional situations or specific vessel's types while other owners still struggle to book an employment. Black sea and Mediterranean areas are keeping leveled for Atlantic bound employments while rates started show a little increase to Middle East destinations, with Far East bound business still booked at lower money. Charterers are pushing to book tonnage out of Black Sea and Eastern Mediterranean for short period employments to achieve average savings. Handysizes are proportionally getting paid much better all along the area. Handy (US/N. Atlantic/Lakes/S. America) Both short period and Far East bound trip fixtures from the US Gulf showed improved rates agreed. Reported activity back to Europe was poor with coal charts trying to move their cargoes from the area into South America in combination with owners keen to position on this coast to take advantage of a warming up market, confirmed by rates agreed with tonnage taken on delivery in West Africa to load there. Handy (Indian Ocean/South Africa) Iron ore chartering activity remained very limited with lower rates agreed but South African market brought a reasonable balance to this market area with a couple of quite standard handysizes achieving interesting money for business back to Europe. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it