6 - 13 October 2006 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) The trend was positive for the whole week and with strong improvements: BCI index signed a plus 617 and $8,149 on the average 4 T/C routes. Even though the week started slowly we saw strong increases towards the end, especially in Far East where rates for round passed $70,000 levels. Backhaul also maintained an average $53,500 but with some fixtures for a fast trip via Indonesia at $55,000. The Atlantic basin was less affected by these improvements with few cargoes and increasing tonnage available: Brazil/Rotterdam ore was steady at $16.50 and round remained under the $52,500 mark, but with a lot of prompt positions fixed for less money. Also Brazil/China ore was stable at around $31/31.5 and t/c a trip higher than $74,000. A rally in period interest was noted towards the end of the week but no particularly long; very interesting rates for one year, 4/6 and 5/7 months. Panamax (Atlantic and Pacific) Many ship in ballast keep the Atlantic market with rates dropping for spot business. A 76,000 tonner reportedly fixed for a Brazil/Spain run with the ship spot Hamburg at $22,500 daily. Despite some of these ballasters have now been fixed, the spot market needs a good numbers of fresh inquiries to start again. The rates for trips East hovered around $27,000 daily. A significantly long list of business for November expected a better market especially fm US Gulf which is now almost died. The Pacific market did look under some pressure at the start of the week with more ships appearing and the round voyage cargoes limited. Owners had been reluctant to take cargoes back to what had appeared a sharply falling Atlantic market. The result is the owners are reluctant fixing to the Atlantic asking therefore a premium with rates still firm holding around the mid to high $30,000 daily range. Handy (Far East/Pacific) Activity appeared to be a little quieter but while less single trips where booked, charterers remained active with period fixing. The major interest is around the 4/6 months duration for which modern Handymaxes reached the $30,000 mark while Supramaxes are booked in the higher $20,000's for one year and $24.500 was rumored to have been agreed for 2 years. Single trips to Europe and Indian Ocean are easily fixing well over $30,000. Handy (North Europe/Mediterranean) The majority of the business was concluded with Black Sea/East Mediterranean loading business, with Indian Ocean destination dominating and rates agreed in the high $20,000's region. Continent was described to start showing a larger interest for Mediterranean bound cargoes. Handy (USA/N.Atlantic/Lakes/S.America) Charterers involved with European bound business keep paying sky-high time-charter rates to grab tonnage in the US Gulf. Prompt available vessels are lacking and rates may heat up further. South American activity keep going under the table but the tonnage available there is even less and charts have no other choice than to wash out the West African available units. Handy (Indian Ocean/South Africa) Iron ore fixing from India to China kept this market active. Agreed rates keep slowly climbing, but still remain a little far from what owners could achieve from pacific waters. Korean charterers didn't manage take advantage of this by fixing a modern Supramax at 24,500 for 2 years. South African activity was mostly oriented towards handies. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it