Freight weekly report

J.B. please print. J.F. are you on the distribution, and is this linked to
the fundy page?
----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/26/2001 09:46 AM -----

Andy James@ENRON
02/23/2001 10:27 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@EC
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, Dorte
Kjaergaard/LON/ECT@ECT, Fiona Ryan/LON/ECT@ECT, Jennifer Burns/HOU/ECT@ECT,
Jeff Andrews/NA/Enron@Enron, Carrie Southard/LON/ECT@ECT
Subject: Freight weekly report

Enron Shipping Services Weekly report 08/2001

Highlight
Despite sharp movement in spot rates for both sectors week in general has
been relatively quiet. Capes saw majority of strength in Pacific with Intra
Pacific rates rising around $1800 since last week. Late surge in Japanese
buying ahead of the close of their financial year is main reason attributed
to this rise. Atlantic Capesize been pretty flat to marginally better, no
exciting news. Outlook for coming week is that Far East strength will be
maintained although pace definitely slowing. No change sentiment in Pacific.

Panamax has seen opposite effect, grain stems finally rolling from S America
which has been the major driver of the Atlantic market, for March loaders.
market was under impression that Pacific likely to come under downward
pressure but once the demand has been strong enough epecially for modern
tonnage and outlook for coming week is that reates are likely to maintain
firmness. Atlantic expected continue run for next week.

Short term we have established small long for nearby Capes, but maintain
overall perspective to sell forward curve on appreciable rallies. Panamax
very similar approach.

Panamax we fixed timecharter tonnage to cover 14 / 26 Mch Dreyfus Ist
nomination USG / Far East grain cargo. Have also taken option to extend
period of vessel for short Trans-Pacific voyage if market maintains strength
longer than we think.

Capes nothing

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

Cape
Average time charter rate: $ 18,315 ( +$1005 )
Spot RBCT/Rotterdam: $ 8.678 ( +$0.156)
Spot Tubaro/China: $10.285 (+$0.16)
Spot Bolivar/Rotterdam: $ 6.625 ( +$0.122)

Panamax

Average time charter rate: $ 11,654 ( + 544 )
Spot US Gulf/Japan: $21.994 ( + $0.513 )

Deals Done
Physical Freight
ECS freight

Third party freight deals
As above Panamax
OTC FFA s
Quieter week few swaps on both the Cape and Panamax routes.
EOL
Traded 150,000 tons BCI 4 with Bocimar
Travels
Pierre in Houston all week.

Andy