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---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 12/11/2000 
03:38 PM ---------------------------
   
	Enron Capital & Trade Resources Corp. - Europe
	
	From:  Chris Connelly                           12/11/2000 02:28 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 49/2000




Highlight

The freight market for cape and panamax size vessels appear to be on the 
verge of a significant downward correction.  The news from Japan and the 
Asian economies as a whole is bleak with fear of more bankruptcies looming 
and low to flat growth projections. Furthermore, the US economy is showing 
strong signs that it has peaked.  As a result, ship owners are openly worried 
about demand for next year and are desperately seeking cargo contracts while 
rates are still attractive.  The cape time charter rate has lost more than $ 
3,000 over the last 3 weeks and Panamaxes have lost $ 1,500.  On the cape 
side, Bocimar is unable to prevent the index sliding even though they still 
control 60 ships ( on Friday index fell 33 pts, single biggest point drop 
ever recorded ) and other owners are fighting for the few spot cargoes still 
unfixed before the Christmas break. 

Of significance, we fixed on subs a four cargo contract with Bao Steel ( one 
of the biggest Chinese steel mills ) that runs into March 2002 from Brazil 
into China and also fixed a a four panamax contract with Adaro from Indonesia 
to Spain, which is on subs until or if Adaro sells the coal into Spain.
Market
	Short term	Medium term	Long Term
Handy Max	Down	Down	Down
Panamax	Down	Down	Down
Cape Size	Down	Down	Down


Deals Done
Physical Freight
ECS freight 
Fixed a RBCT to Redcar cape with Coeclerici for Jan loading
Third parties freight deals
Fixed on Subs with Bao Steel & Adaro
OTC 
FFA s
Numerous swaps on both the Cape and Panamax routes
      
EOL
Traded 27,000 tons of Panamax US Gulf/Japan with Louis Dreyfus and 75,000 
tons of RBCT/Rott with Cargill

Travels
All three of us should be in all week