August 18 - 25, 2006 Weekly market report.. Banchero Costa

Capesize (Atlantic and Pacific) Last two weeks saw rates booming especially on period. Last week BCI started decreasing, loosing 258 points in the first 3 days and than recover 124 points in the next 2. Tc-trip from Atlantic to Far East saw $71,000 at the beginning of the week and than raised close to $80,000, but the index on Friday closed at 75,545. The 4 T/C index closed with no relevant variation at around $53,643 but with a general softening on ore spot rates. Being next Monday holiday in London we believe that a possible recovery might be seen at the beginning of September. Panamax (Atlantic and Pacific) Business for the Panamax market picked up on the last day of the week, with rates said to be firming in the Atlantic and holding in the Pacific. For the Atlantic, a Continent round voyage fixed at $29,750 daily, while Continent/Far East business was done at $28,000 daily plus a ballast bonus. A trans-Atlantic round trip earned 27,500 daily for an LME. Period business of 1 year took a rate just above $28,000 daily. From the Pacific, NoPac round business fixed at $28,000 daily, while short periods were heard done at stronger levels of 3-5 months and 4-6 months at between $28,500 daily to $29,500 daily. Handy (Far East/Pacific) Last week saw a slowdown in the market after the constant increments of the previous weeks, especially for period. Charters' interest is now focused on shorter period or spot. Average fixtures however are still at high levels and trip with redelivery EC India – Spore Japan range modern Supramax achieved rates above $30,000 daily. Handy (North Europe/Mediterranean) Continent remained steady with a small decrease in volume. Mediterranean and Black Sea reached $29/30,000 for Handymax. Handy (USA/N.Atlantic/Lakes/S.America) Rates kept on rising. Modern Supramax are now around $30,000 for Transatlantic and $34,000 for a trip with redelivery Spore – Japan range were seen. Handy (Indian Ocean/South Africa) Steady market in Indian Ocean both for spot rates and for period. A small increment in volume was seen in South Africa trip to Continent. Banchero Costa and Co Spa Mail: research@bancosta.it Web: www.bancosta.it