28 July – 04 August 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Period interest for Capes showed no rest: most of the reported fixtures are about short, medium and long period. Almost 80 percent of the Capesize activity is about period, heavily affecting rates. A particular example can be World Link that chartered in 8/10 Capes in one week. One 169,000 reached $39,000 daily for five years, latest fixtures for this duration were around $30/32,000 daily. 3 years period achieved around $47,500 daily and one year is about $59/60,000. Atlantic basin is still hot especially Brasil/China that achieved $36,000 discharge Beiulun +Baoshan which means a TCE rate close to $80,000 daily. Also in Far East the period had the largest part of activity, but the Australia round achieved $53/54,000 daily. Panamax (Atlantic and Pacific) The Panamax market still remains very active and seems not influenced at all by the expected summer period. Period business is still dominating the market, with much of the business speculative, as a number of the ships were put back into the market for re-let. Rates stayed firm despite the decline in activity at the end of the week. A trip out was done at $30,000 daily, while a trans-Atlantic round earned $27,000 daily. A balance of period of about 4 months took $27,000 daily plus a ballast bonus, with 4-6 months and 5-7 months seeing rates of $27,000 and $27,500 daily respectively. In the Pacific, period business continued to attract most of the interest and rates outstripped those for physical fixtures. In period business, short periods and longer terms up to 14 months were reported done at $27,000 daily, though most periods of 4-6 months earned between $25,000 daily to $26,500 daily. Handy (Far East/Pacific) While the Baltic handy indexes kept rising on a daily basis in all areas, period fixing interest exploded all around the seas with a larger report of concluded deals in the Far East waters. One-year timecharter daily rates kept heavily climbing along the week, ending up with a new-building Supramax reported fixed well over $25,000 daily. Similarly levels have been easily achieved by smaller Handymaxes on shorter duration and the trend allowed some operators to quickly re-let to others their fixed tonnage at higher money. Handy (North Europe/Mediterranean) A smaller volume of activity did not prevent rates to climb around these areas where Handymaxes are getting closer to achieve short period rates similar to Pacific side open tonnage. Rates for single voyages from the Continent to any directions have enlarged both for smaller and larger handies. Even if concluded activity out of the Black Sea remains in the shade an uglier over aged Supramax it is rumored to have achieved close to $25,000 for a trip from the Black Sea to Middle East. Handy (USA/N.Atlantic/Lakes/S.America) These chartering waters got burning as well, especially out of the US Gulf where a lot of definite period interest is alive. Agreed rates are only 10/15 pct lower than what can be achieved in Pacific waters. Less spot activity on the Transatlantic was conclude while Supramaxes fixing to the Far East appear to have made the $25,000 daily hire a fixed tariff. Handy (Indian Ocean/South Africa) Most of the India/China iron ore involved charterers appear to refuse realize the latest market trend and keep showing to owners low money evaluation. South Africa is active and lacking tonnage open close enough to its loading area while charts try grab Indian Ocean available tonnage for short or medium period, in a purpose of trying money savings compared to rates commanded by Atlantic and Pacific positions. Rates charts are there to pay are anyhow far better than what the iron ore charts are showing to owners. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it