Freight weekly report

Jennifer B. please print, Jen F. please get this on the fundy's page....Jeff
----- Forwarded by Jeffrey A Shankman/HOU/ECT on 02/12/2001 07:50 AM -----

Chris Connelly
02/11/2001 02:44 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,
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
Subject: Freight weekly report

Enron Shipping Services Weekly report 06/2001

Highlight

Cape market is bouncing back after having fallen for the best part of two
months. The bounce is expected to be gentle and not long lasting. Owners
are raising their rates for March cargoes as there appears to be a few more
cargoes around mostly attributed to the fact that Japanese steel mills expect
coal and Iron Ore prices for this year to increase and are therefore
maximising their current contracts. Furthermore, Bunkers have risen sharply
over the last 10 days to over $130 in Rotterdam which was not expected by the
market. Of interest, Bocimar is redelivering ships it had taken on short
period last year back to the head owner earlier than their contract allows
for which has a few owners thinking about suing Bocimar for damages.

The panamax atlantic market has been falling hard over the last week with
little grain movement from the US gulf and fresh Japanese concerns of GM
crops imports from the US. However, the Plate season is expected to start in
March and market anticipates a return to healthy rates then. The pacific is
also falling from incredibly strong rates seen three weeks ago before the
Chinese new year.

On the long term time charter with Mitsui, Mitsui has officially lifted their
board of approval subjects and we are working through the internal
documentation/proper sign off at this stage.

We have offered some competitive freight rates to the US steel group to
import steel slabs from Turkey to US in the hope of providing the freight for
this business when it happens. Pierre is meeting with the pulp and paper
guys while in Houston at the end of Feb and also going through NYC to meet up
with the Enron metals shipping guy to discuss joint efforts in shipping to
maximise synergy's and cost savings. Furthermore, we are currently
discussing with the US weather group the possibility of offering protection
to ship owners for days lost at seas due to severe weather.

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

Cape ( Since last report 2 weeks ago )
Average time charter rate: $ 17,063 ( -1514 )
Spot RBCT/Rotterdam: $ 8.25 ( -.54)
Spot Tubaro/China: $9.95 (-1.10)
Spot Bolivar/Rotterdam: $ 6.30 ( -.41)

Panamax

Average time charter rate: $ 11,500 ( -807 )
Spot US Gulf/Japan: $21.60 ( - 0.57 )

Deals Done
Physical Freight
ECS freight
Fixed RBCT/Rotterdam with CC at $8.35
Third parties freight deals
In discusions with several charterers for cargo contracts
OTC
FFA s
Numerous swaps on both the Cape and Panamax routes.
EOL
Traded 150,000 tons with EDF

Travels
All three of us should be in

Chris