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---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/23/2000 
08:17 AM ---------------------------
   
	Enron Capital & Trade Resources Corp. - Europe
	
	From:  Chris Connelly                           10/22/2000 07:02 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 
Subject: Freight weekly report


Enron Shipping Services Weekly report 41/2000




Highlight
The freight market keeps inching upwards, with a consensus that the freight 
market will have some upward momentum until early next year, when it is 
expected that the steel makers will significantly reduce their raw material 
imports and reduce their freight requirements.  We are still trying to 
conclude our two structured deals with Coeclerici, but have run into problems 
as counterpart is not keen on agreeing our credit terms.  We are meeting with 
Coeclerici during Coaltrans to try and sort out a compromise and will also 
try to get our credit department to be more flexible with our terms as we 
need to adapt our terms to the shipping industry or face the possibility that 
no one will want to transact on our strict terms.  

This week the liquids group launched their tanker route on EOL and asked Andy 
( our EOL freight trader ) to manage it full time.  Within the first two 
days, 400,000 tons had been traded.

We have tendered for a contract covering two years to ship iron ore from 
Basil to Saudi Arabia starting in Jan next year for the account of Hadeed.  
If we were to win the contract, it would fit very well with our short 
position out of Richards Bay as it would allow us to fix a vessel on time 
charter from Europe to Brasil, then go to Saudi arabia to discharge and then 
continue onto Richards bay to load coal.  The net result of having the hadeed 
contract would be to save 15 days ballast sailing which in terms of dollars 
would equate to $250.000 saving per trip 


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


Deals Done
Physical Freight
ECS freight 
Fixed a panamax for early November loading from Puerto bolivar to Immingham


Third parties freight deals
Fixed a cape for late november loading out of RBCT to Rotterdam at $11.17 for 
Preag.


OTC 
FFA s
Bought a Us gulf/Japan contract for November from Conagra and a 4 TC contract 
from Andre for Q4 & Q1 01.  Our view is that the panamax market will rise in 
the short term and we are therefore going long with the intention of selling 
our lenght in a couple weeks and then build a significant panamax short 
position for next year when we expect a massive correction.
      
EOL
Traded 75,000 tons with Bocimar

Travels
Pierre, andy and myself are in Madrid until Wednseday meeting with several 
key customers