8-14 January 2007 Weekly market report..Banchero Costa

Capesize (Atlantic and Pacific) We assisted to a whole week with increasing/healthy tone, with optimism among owners. Basically all basis climbed bringing at end of the week the average of the 4 t/c routes for modern 172.000 dwt up to $74.185, a progress of $2,376. The index himself took another 190 points. Period market was very active especially for short period from three to five months to three years with rates seen in the region of about $50,000 for three years basis index vessel (172.000 dwt modern). Atlantic market was still the strongest still driven by lack of prompt tonnage showing voyage rates for Brazil to China reaching the $39.00 level, admittedly from Guaiba where there is a draft limitation of 17.1 mtrs. Bunker price are still very low and this situations are making the owners happy. Panamax (Atlantic and Pacific) The market has not yet taken any direction as charterers continue to resist pressure to push rates up. Tonnage availability is still limited and inquiry is good, but some charts they are waiting to fix maybe expecting better times for them: Atlantic region was said to be still fairly active. In the Pacific, sources indicated that charterers are mounting some resistance to recent rate increases, especially as tonnage availability is easing. There seemed to be less demand for period business, but rates as reported today are still strong. Shorter periods of 3-5 months and 7-8 months fixed at $37,000 daily and 1 years trading took $32,500 daily. Handy (Far East/Pacific) Activity was dominated by period interest, with a fancy supramax fetching over $30,000 daily for one-year employment, similar types booked well over mid 20,000's for 2 years, and a large supramax agreeing 24,000 for 3 years. Spot activity remained more limited but concluded at improved rates. Handysizes keep getting quite good money for local time charter trips. Handy (North Europe/Mediterranean) More interest from the Black Sea area led to a supramax reported fixed at much better rates for a trip to Singapore-Japan range. Nice money was seen to have been agreed for transatlantic round voyages or short period employments based on Mediterranean delivery. Scrap charterers woke up the Continental spot from its endless sleep by booking three elder large Handies into the Mediterranean at good rates, a small handymax achieved high 20,000's for a trip from the UK into the Persian Gulf. Hopefully these areas are going back to some more stable activity which may cut down the owners' need to ballast their tonnage across the Atlantic waters for better business. Handy (USA/N.Atlantic/Lakes/S.America) The firm trend out of the US Gulf remained strong and got even strengthened by last week's rumor about a handymax fixing to the Persian Gulf at $44,000, now becoming a reported fixture, we understand the vessel will be carrying grains to Iraq. A supramax was booked well over usd 40,000 daily for a trip to Singapore/Japan, no fixtures were reported on the transatlantic trade but pretty good rates are still said to be available. South American activity kept more confidential as usual but reported fixture for large handy ex-Brazil to Red Sea shows the positive market for owners from the level agreed with the large Handy reported fixed via Brazil to Red Sea. Handy (Indian Ocean/South Africa) Even if some vessel open in spot position still got “caught” at lower money on the India/China iron ore trade, the volume of the demand increased again leading the last fixtures back to high levels, both for loading east and west coast India. Due to the small volume of enquiry charterers having requirements ex South Africa are quoting low ideas which they shall need to considerably revise in order to divert owners interest to this loading area. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it