can you get on this distribution and file weekly.  Thanks. 
----- Forwarded by Jeffrey A Shankman/HOU/ECT on 01/29/2001 10:38 AM -----

	Chris Connelly
	01/28/2001 10:21 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, Dorte 
Kjaergaard/LON/ECT@ECT, Fiona Ryan/LON/ECT@ECT
		 Subject: Freight weekly report


Enron Shipping Services Weekly report 04/2001




Highlight

Cape market continues to fall but probably too fast and too early by most 
players  Asia will be back from holiday Monday and market is expecting rates 
to stabilise by end of next week.  We are currently evaluating taking another 
cape on short period or fixing a COA with a distressed owner for our Q2 
cargoes out of RBCT or Colombia or both.  The average earnings for a cape has 
fallen from a high of $25,000 in November to $18,500 today.  Pierre is in 
Japan next week and should get a good feel as to what the Japanese steel 
mills are up to and what kind of opportunities are out there for us to 
concentrate on.   

Panamaxes as anticipated are very difficult to read with close to zero Far 
East biz. Atlantic very short term has slight imbalance of tonnage but backed 
by very good USDA corn sales yesterday, the grain will start to role by end 
Feb. Paper rates have remained stagnant again lacking real physical input, 
nearbys marginally easier forwards flat neglected. Strategy will either be to 
bear spread where nearby premiums are good or bide our time and buy Q2 dips 
or calls.

The story out of Bocimar this week is that they view this year as being 
definitely weaker than last year and that they feel it should average around 
$15,000 to $17,000 for the year ( which is still a good market for shipping ) 
and at those levels, they are happy to sit back and watch.   Furthermore, 
last week CMB ( parent company of Bocimar ) released their earnings for cal 
00.  Their Dry bulk division made 60 million Euro and their tanker division 
made 60 million as well.  These are very good numbers for their dry bulk 
division taking into account the incredible rise in bunkers last year ( cost 
of fuelling the ships ) and the fact that their ships were often at anchor 
and not generating revenues.

On the funny side of things, Coeclerici is having their yearly audit by 
Arthur Anderson and AA has discovered that although Coeclerici makes money 
trading FFA's, they lack proper daily position reports and models to value 
options.  As a result, I got a call from Koert ( head shipping at Coaclerici 
) asking for our assistance as AA had mentioned to them that they should talk 
to us about our systems and procedures.  Being that Coeclerici is our biggest 
counterpart, we jumped on the opportunity to assist and Andy James is being 
sent to genoa Tuesday for a one day tutorial about risk controls and 
procedures while trying at the same time to better understand how Coeclerici 
values deals, which needless to say should help us in the future when 
negotiating with them.  


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

Cape

Average time charter rate: $ 18,577 ( -1223 )
Spot RBCT/Rotterdam: $ 8.69 ( -.31)
Spot Tubaro/China: $10.63 (-.37)
Spot Bolivar/Rotterdam: $ 6.80 ( -.20)

Panamax

Average time charter rate: $ 12,037 ( + 72 )
Spot US Gulf/Japan: $22.31 ( + 0.24 )


Deals Done
Physical Freight
ECS freight 
None

Third parties freight deals
In discussions on several currently
OTC 
FFA s
Numerous swaps on both the Cape and Panamax routes.
EOL
Traded 150,000 tons with EDF, Bocimar, and new Panamax party Nyfex traded. ( 
He's small shipping Inv fund who has lodged LC via RBS. 

Travels
Pierre is out all week and I am out Thursday and Friday and Andy will be out 
Tuesday


Chris