Re: Freight weekly report

Thanks for the reports. Always very interesting. Could you also start to
include pricing and changes from prior period in your grid below. Thanks.
Happy Holidays.
Jeff

Enron Capital & Trade Resources Corp. - Europe

From: Chris Connelly 12/18/2000 01:56 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 51/2000

Highlight

The cape market continues on its downward momentum with this time bunkers (
Fuel Oil ) helping the slide as they have lost approx. $30 in the last couple
weeks and make the costs of running the ships significantly less. Panamaxes
have on the other hand, started a slow upward trend. Most bundits think that
this latest rise might be the 'dead cat bounce'. The Japanese buyers and the
US exporters of grain had stopped shipping grains over the last few weeks
while arguing over 'starlink' which is basically genetically modified crops
while all the panamaxes were getting stuck in the US gulf awaiting the news
of resumed shipping. When the US and Japan settled their dispute last week,
Shipments of grain to Japan immediately resumed, and the panamax market
quickly reversed trend and starting going up.

With the Christmas season quickly approaching, we expect the market to slow
down dramatically with owners and charterers wanting to fix their remaining
positions quickly. This is the last report in 2000. Have a good holiday
and see you next year !!!

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

Deals Done
Physical Freight
ECS freight
Fixed a Cape on TC to cover our short against the Ausi/Constanza deal for Dec
loading
Third parties freight deals
We fixed clean the Bao Steel contract
OTC
FFA s
Numerous swaps on both the Cape and Panamax routes

EOL
Traded with two new counterparties: Billiton & Duke energy for a total of
385,000 tons
Travels
All three of us should be in all week