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---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 11/28/2000 
09:10 AM ---------------------------
   
	Enron Capital & Trade Resources Corp. - Europe
	
	From:  Chris Connelly                           11/27/2000 01:49 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 46/2000




Highlight

The panamax market has fallen about $1,000 over the last two weeks on basis 
of time charter rates.  For next year, owners have turned on average quite 
bearish and several are calling us directly to offer us their vessels at 
discounted numbers.  Interestingly, cape vessel owners have been watching the 
falling panamax market with trepidation.  Currently, the spread between the 
two sectors is about $13,000.  Over the last three days, time charter rates 
for cape size vessel for 12 months starting in January 2001 have dropped by 
approximately $1200 and brokers attribute the rapid decline to the 
unsustainable spread between the two vessel types.

Of significant interest this week, Bocimar called us to price put options for 
them.  They told us that they wanted some protection for next year but could 
not buy puts or sell swaps in the market place for fear of creating a panic 
selling mode from owners.  We offered them some prices which they told us 
were too expensive but we are still in discussion.  Our problem is that we do 
not want to diminish our short position for next year so in offering put 
options to Bocimar, we also want to keep selling the underlying - and that 
might be challenging as the market is very illiquid and there are not too 
many bids for next year at good selling numbers.

We are currently continuing to build a short position on panamaxes and are 
offering rates to AK Steel from Brazil to US gulf for their iron ore 
contracts and also offering Sidmar ( the Belgian steel mill ) some rates from 
Brazil into Gent.  We might join forces with Coeclerici on several of these 
tenders to mitigate the risk and also to share market information.

last but not least, we are studying the idea of taking a cape new building 
delivery 2003/2004 on time charter for 8 years with ability to extend for 
three additional years and the ability to buy the vessel after year three in 
Japanese yen.  The time charter rate is very attractive when compared to the 
average time charter rate of this size vessel over the last 5 and 10 years.  
Will keep you posted.

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


Deals Done
Physical Freight
ECS freight 
Sold three capes from Queensland to Romania ( Subject counterparty credit )

Third parties freight deals
Sold 3 capes to BHP from Brazil to Indonesia ( Will know if we won the tender 
tomorrow )

OTC 
FFA s
Numerous swaps on both the Cape and Panamax routes
      
EOL
Traded 54,000 tons of Panamax US Gulf/Japan with Louis Dreyfus

Travels
All three of us should be in all week