Freight weekly report

print
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 12/11/2000
03:38 PM ---------------------------

Enron Capital & Trade Resources Corp. - Europe

From: Chris Connelly 12/11/2000 02:28 AM

To: George McClellan/HOU/ECT@ECT, Stuart Staley/LON/ECT@ECT, Jeffrey A
Shankman/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Kevin
McGowan/Corp/Enron@ENRON, Tom Mcquade/HOU/ECT@ECT
cc: Peter Bradley/LON/ECT@ECT, Jez Peters/LON/ECT@ECT, Candace
Parker/LON/ECT@ECT, Kenny Nicoll/LON/ECT@ECT, Dimitri Taylor/LON/ECT@ECT,
Andy James/EU/Enron@Enron, Cornelia Luptowitsch/LON/ECT@ECT
Subject: Freight weekly report

Enron Shipping Services Weekly report 49/2000

Highlight

The freight market for cape and panamax size vessels appear to be on the
verge of a significant downward correction. The news from Japan and the
Asian economies as a whole is bleak with fear of more bankruptcies looming
and low to flat growth projections. Furthermore, the US economy is showing
strong signs that it has peaked. As a result, ship owners are openly worried
about demand for next year and are desperately seeking cargo contracts while
rates are still attractive. The cape time charter rate has lost more than $
3,000 over the last 3 weeks and Panamaxes have lost $ 1,500. On the cape
side, Bocimar is unable to prevent the index sliding even though they still
control 60 ships ( on Friday index fell 33 pts, single biggest point drop
ever recorded ) and other owners are fighting for the few spot cargoes still
unfixed before the Christmas break.

Of significance, we fixed on subs a four cargo contract with Bao Steel ( one
of the biggest Chinese steel mills ) that runs into March 2002 from Brazil
into China and also fixed a a four panamax contract with Adaro from Indonesia
to Spain, which is on subs until or if Adaro sells the coal into Spain.
Market
Short term Medium term Long Term
Handy Max Down Down Down
Panamax Down Down Down
Cape Size Down Down Down

Deals Done
Physical Freight
ECS freight
Fixed a RBCT to Redcar cape with Coeclerici for Jan loading
Third parties freight deals
Fixed on Subs with Bao Steel & Adaro
OTC
FFA s
Numerous swaps on both the Cape and Panamax routes

EOL
Traded 27,000 tons of Panamax US Gulf/Japan with Louis Dreyfus and 75,000
tons of RBCT/Rott with Cargill

Travels
All three of us should be in all week