Freight weekly report

do we have a folder for this?
---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/16/2000
11:08 AM ---------------------------

Enron Capital & Trade Resources Corp. - Europe

From: Chris Connelly 10/15/2000 04:56 PM

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
Subject: Freight weekly report

Enron Shipping Services Weekly report 40/2000

Highlight
Relatively quiet week with Panamax rates drifting until Friday when rates
seemed to stabilise. In the cape market, rates continue to increase across
the board with a rush of new cargoes being quoted in the market ( EDF trading
leading the pack ). Glencore and Anglo came into the market this week
looking for 1 year freight rates into the UK for the BE tender with more
mines expected to look for rates next week. We had another visit from
Bocimar this week as they wanted to meet the guys from MG to discuss hedging
some of their freight exposure with aluminium which has a 75% correlation
with the cape freight market. Furthermore, they wanted to start trading coal
in ARA and tanker freight which should be going live next week on EOL .

On the ABC front, we are hearing that they are in negotiations with Zodiac,
another cape owner, but do not know the time frame of any potential deal. We
had this week a call from Coeclerici asking us if we were interested in
joining forces in buying ABC so this makes a total of 4 companies having
approached us asking to team up and as a result, we plan on exploring the
potential of creating a consortium of buyers for ABC.

Market
Short term Medium term Long Term
Handy Max Down Flat Flat
Panamax Down Down Down
Cape Size Up Up Flat

Bunkers: With events in the middle east and continued low stocks of Gasoline
in the US, the Fuel Oil/Bunker market is rocketing upwards with an increase
of $30 per ton in Rotterdam in 10 days. Over the long term these crude
prices should derail the world economy and the freigth market but in the
short term this will continue to sustain the freight market

Deals Done
Physical Freight
ECS freight
Fixed a panamax for early November loading from Drummond to LBT at $9.80

Third parties freight deals
Sold 4 capes to Intercore from Puerto Bolivar to Ijmuiden + Amsterdam from
April to October 2001.

OTC
FFA s
Bought 150,000 tons Bolivar/Rotterdam at $8.15 for Q4 2000 from Bocimar and
bought a panamax for Q4 2000 and Q1 2001 from Andre

EOL
Launching a new route on EOL next week: US Gulf to Japan on Panamax

Travels
Pierre is back from Asia and Andy and myself are all in the office