Freight market report & expectations.Aug 26th.by Densay A.S.

Freight market report & expectations.Aug 26th.by Densay A.S.

Baltic handymax index: 7546 points by July 5, 2002 Baltic handymax index: 7662 points by August 22, 2002 Rise of 1-month period: 116 points - %1.53 It can be observed that all our predictions mentioned in our previous reports turned out to be true. Freight market for Handy/Handymax type ships shows again a rising tendency, particularly for cargoes ex-Black sea and Continent. Especially the modern 40.000mt and over deadweight ship supply in Continent and Black sea markets is facing serious problems. For the reason that the producers and traders are not willing to fix at the anticipated freight levels, currently there is an ongoing wait-and-see policy between owners and charterers, especially in the Black Sea market. We expect the freight prices to show an upward trend as of September. We recommend the producers effecting sales from September onwards not to wait too long before concluding their bookings of cargoes with reliable ship owners from the current freight price levels. According to our sources: A trader is in the market for his billet cargo of 35/40.000mt Dammam at a rate of around $19/mt. A foreign trader is in the market for his cargo of 45.000mt Nemrut/Taiwan at a rate of about $19/mt. A foreign trader is in the market for a cargo of 25.000mt Nemrut/Vietnam. The freight idea is around $22/mt. A producer is willing to book at $18/mt or his cargo of 40.000mt Marmara/Taiwan however the best price available is $20/mt. Indicative freight rates for ships of 45.000mts and above deadweight ex Black Sea with destination Far East are around $11.750. Freight market for scrap shipments for Continent/ Turkish ports: Forecasts stated in our previous reports have turned out to be true for this region as well. As from today, the Continent market is the strongest region in the freight market. As we mentioned that this market should be closely monitored, the strength of the market is not only due to the high amount of scrap cargoes but also to the cargoes of other materials being in the same market. Continent / USA gulf freight are around $8/8.500 Continent / Mediterranean scrap offers around $8.500 Continent / Far East freightoffers around $11.000 Latest booking reports: A producer paid a freight rate of $12.50/mt for a Europe/Nemrut cargo with 52 stowage. A producer failed to find a ship for its cargo of England/Marmara and decided to use its own ship at a freight rate of $8/mt A producer chartered at a freight rate of $11.50/mt for its Rotterdam/Hereke cargo with 50 stowage.