30 June – 07 July 2006 weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) As expected Capes market on Monday started declining; the negative trend lasted the whole week apart from the period that confirmed good activity and rates above the average. Atlantic spot rates for Brazil/China cargoes were down a lot and T/C for fronthaul was down from $52/53,000 daily to $45,000. Pacific basin showed signs of slowdown: the round went down at low $30,000 and Richards Bay/Rotterdam for modern 172,000 dwt were around $19,000. BCI declined to 2,521 points and the average of the 4 main T/C routes from $37,097 arrived at $34,576. Panamax (Atlantic and Pacific) ATLANTIC After the good activity all across the board last week, we saw a softer tone this week. We are slowly seeing the rates in the Atlantic declining although the occasional well-placed vessel is still able to benefit. There are a number of open vessels now in ballast, which had reached $25,000 daily has now been fixed at $23,000. It is evident that the Atlantic desperately requires an injection of fresh business, especially from South America to swallow up the accumulating tonnage. PACIFIC Even though there was still a substantial amount of business available during the week freight rates began to slide. Whereas Charterers previously had to take vessels for short period to cover their requirements, this week they were able to wait and fix for a single trip only. The No Pac round voyage rate fell back to $24,000 whilst a trip to the Atlantic was again under $22,000. Handy (Far East/Pacific) A large chartering demand with very firm rates achievable keeps distinguishing this side of the market. More concluded single trip employments were reported fixed with rates ranging between the mid to high 20,000's for staying in the area and the backhaul trips stabilized on the mid 20,000's mark. A lot more short period chartering was agreed still a same levels paid for single trips, while It has been significantly positive to see a new building supramax reported fixed at rate near to $20,000 for 2 years trading. Handy (North Europe/Mediterranean) Compared to Atlantic Americas and Pacific waters the chartering demand is smaller but same has not prevented rates to grow, the on-going flow of requirements from US Gulf and East Coast South America keeps attracting ballasters so charterers in need to load out of European waters must participate to the rate competition if they wish to secure their loaders. Some period interest remained alive with handymaxes achieving rates in the upper teens for short duration. A very much firm fixture was concluded from the Black Sea to Middle East. Handy (US/N. Atlantic/Lakes/S. America) Chartering interest oriented to smaller sizes lead to a number of larger handies getting booked at very firm rates both for west and east direction. A firm South American market lead to charterers fixing a 32000 tonners basis delivery West Coast Central America to load in the river plate a cargo to Northern Europe, and the agreed rate wasn't still that bad for owners. Activity out of the US Gulf remained quite steamy but period interest partially cools down. Handy (Indian Ocean/South Africa) The few reported fixtures are probably a little older as this week showed a lot of quietness all around the area. The monsoon has affected more heavily the shipping operations and Indian authorities announced that the port of Goa shall be closed a couple of months for repairs. Presently available requirements are decreased and charterers are playing a hard down trend game but owners so far have resisted from fixing at cheaper money. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it