3 - 10 November 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Last week begun pretty low and closed with negative mark: BCI index closed at 5,733, around 68 points were lost. The average 4 routes T/C lost $247, but trend and number of enquiries are worrying for the next week. The end of the week registered signs of downtrend for ore on Brazil/China routes, in Far East and also in Australia where round rates decrease quite quickly. The worst thing is that there are no signs for an improvement in cargo offer even though we are at the end of the year, traditionally a bullish period. Panamax (Atlantic and Pacific) After the activity of the previous week it was thought that the market would continue upwards but despite a multitude of fixtures being reported in both hemispheres the market tailed off. The Atlantic has remained steady despite having an abundance of early vessels still available. There is still long period enquiry but the levels on offer have not been of interest to most. A shortage of prompt tonnage continued to keep the Pacific market firm but charterers seemed to be backing away from the higher rates. The loss in the levels was also generated by a certain number fixtures failed. The back-haul is still able to command good rates as very few owners are showing willingness to come back to the Atlantic. Short-haul Indonesian cargoes and Australian round voyages are still able to obtain in excess of $40,000 per day depending on their delivery. The Indian Ocean is still firm with a steady stream of Indian iron ore and South Africa coal and we have also evidenced this week charterers are looking to this area again to take tonnage for short period. Handy (Far East/Pacific) The new week started with a similar slow activity, which was seen to progressively grow through the days. Charterers' fresh period interest ended up showing a couple of modern 52,000 tonners booked at $30,000/day for short period. Similar tonnage was booked in the low $30,000's for local trips/round voyages and a 53,000 tonner managed grabs similar money for a 4 months extension of her present period charter. Rates to Middle East are climbing up again, only the backhaul business is not showing yet firm enough signs of recovery. A good fixture was also concluded out of the unpredictable West Coast market. Handy (North Europe/Mediterranean) In spite just one fixture was reported concluded out of the Black Sea better money was agreed on same, available tonnage is lacking from the area and volume of requirements still to be covered enlarges. Charterers chasing owners either get no response or overcharged proposals. The opposite is experienced in Continent where some of the few available requirements are not even firm, tonnage fixes and fails on subjects several times before reaching a full booking and some owners started ballast out. Handy (USA/N.Atlantic/Lakes/S.America) The US Gulf market stabilized through the week with some improvement seen in concluded fixtures. Rates for trip to Med are now over the $30,000 level for modern larger Handymaxes while east bound biz is fixed below this mark, due to the afterwards better position. Activity from South America was still developed on confidential basis, market was described as firmer compared to US Gulf but there is some future inflation worry by ballasters ex continent. Handy (Indian Ocean/South Africa) Only one but very firm fixture was concluded ex-South Africa. The few deals reported concluded from EC India to China on the usual iron ore trade showed quite decent time charter rates agreed. Market remains problematic for owners of tonnage coming open within Persians Gulf/WC India range. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it