5 – 11 March 2007 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) Last week we have seen a weak end on Capesize market, which ended with 90 points lost but with a recovery starting from last Friday that may be showing a change of tendency again. In any case the week was quiet with few emotions except a good number of fixtures done for short or medium period of which the m/v Cape Harrier, 177.000 dwt built 2005, which fixed $76,000 for 4/6 months t/c by TMT to Korea Line. In Atlantic we have seen the front-haul business fixing at about $99,000 daily, while the trans-Atlantic round at close to $90,000. Pacific remains more or less unchanged with the round at about $72,000 and the backhaul at just below $60,000's. There is still congestion in Australian coal ports. Panamax (Atlantic and Pacific) Market showed a week very active especially for short ad medium period, but also showed strong increases on a daily basis in all areas. In the East congestion of Australian ports plus plenty of short periods on offer, in the Atlantic increasing grain activities brought at increasing levels with very good peaks (rumours mid week of $50,000 being paid for a trip out) in both basins. Handy (Far East/Pacific) Period chartering kept the leadership in this area where everybody show interest in booking Handymaxes and Supramaxes for 12 months employment or longer. The year commitment is agreed well inside the low $30,000 daily while an Lme n/b fetched $26,500 for three years. The large volumes of period enquiry still available will likely lead to show bigger numbers reported fixed in the near future. The spot market is a little easier on rates especially for local/round voyages which result in paying $1,500/2,000 daily less compared to backhaul biz. More spot enquiries in the 25/30,000 size combine with less tonnage available have pushed up handy-size rates on a daily basis. Handy (North Europe/Mediterranean) The spot-chartering enquiry remains small all around Continental, Mediterranean and Black Sea waters, making these areas a good playground for period relet speculation deals. The other side of the Atlantic is firm enough to avoid affect that much period rates for tonnage coming available this side, for which owners are basically discounting the “ballast across” expenses. It is much more interesting to see that a vessel booked for a couple of yeas deal at the beginning of the week, is seeing only 2/3 days later other charterers willing to book her at $1,500/2,000 more. Handy (USA/N.Atlantic/Lakes/S.America) A further firming up of the Us Gulf waters was followed at the end of the week by large rumors about rates considerably increasing as well for South American business. It was too late in the week to manage collect supporting fixtures but likely they shall be coming out next week. Tonnage keeps lacking both for Handymax and Handysizes, the transatlantic rate via US Gulf for a Handymax is now in the $30,000 daily mark, while $35,000 is the latest rate paid to Far East. Handysizes show to be involved with a lot of transatlantic jobs with rates averaging the $20,000 mark. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it