Message-ID: <16217895.1075857531838.JavaMail.evans@thyme> Date: Mon, 2 Oct 2000 05:08:00 -0700 (PDT) From: jeffrey.shankman@enron.com To: jennifer.burns@enron.com Subject: Freight weekly report Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Jeffrey A Shankman X-To: Jennifer Burns X-cc: X-bcc: X-Folder: \Jeffrey_Shankman_Jun2001\Notes Folders\All documents X-Origin: Shankman-J X-FileName: jshankm.nsf print this ---------------------- Forwarded by Jeffrey A Shankman/HOU/ECT on 10/02/2000 12:09 PM --------------------------- Enron Capital & Trade Resources Corp. - Europe From: Chris Connelly 09/30/2000 10:56 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 38/2000 Highlight Sold four capes to Preag for next year from Colombia to Rotterdam at $7.30 and simultaneously bought four capes from Coeclerici at $ 7 to close out position at a $150,000 profit. Fixed a Bocimar vessel for our October commitment to Electrabel from Puerto Bolivar to Hunterston at $8.10 and also fixed another Coeclerici vessel from Colombia to Rotterdam to cover our short to Preag in November. Still have a late November short against Cargill from Richards Bay to Rotterdam to cover within the next couple weeks. On the ABC front, met with Elcano ( largest Spanish shipping company ) to discuss a possible partnership to acquire ABC but quickly realised that they do not have the stomach for such a big deal. However, did discover that they are quite active on the LNG side and are about to close on a LNG vessel purchase within the next couple weeks. We are definitely going to stay in contact to potentially develop some alliances on the LNG side. Late in the week heard that Bocimar had met with ABC not to purchase them but to discuss a pooling agreement. From good sources were told that ABC had no interest in Bocimar's offer and therefore we are planning on meeting ABC to continue to express our interest in acquiring their fleet and more importantly to continue to frustrate Bocimars'attempt to control the cape fleet. We have completed our 'Enron Shipping' powerpoint presentation for EOL and we expect to have a shipping section within the EOL platform by mid next month in time for Coaltrans. This new platform will allow our customers to log into EOL and go directly to our shipping web page to be able to trade with us. Currently, customers have to access the international coal web page to access our shipping products which does not make sense to our customers Also Pierre met in Paris with Usinor ( 3rd largest steel mill in the world ) to discuss some potential freight deals and also express our interest to sell them Synfuel next year to which they seemed quite interested. Will revert to them with prices shortly. Market Short term Medium term Long Term Handy Max Down Flat Flat Panamax Down Down Down Cape Size Flat Flat Flat Panamax : Market fell all week long but not to a great extent due to some worry about delays in US grain shipping activity Capes : After a furious rally last week the market was flat this week as owners and charters had fixed all their October requirements and were starting to discuss November business with neither side wanting to commit Crude markets remaining still over $30 a barrel even with the US trying its hardest to make it deep into the mid twenties, has also continued to make owners unwilling to discount next years freight rates Deals Done Physical Freight ECS freight Fixed 2+1 geared panamaxes from Indo to Hong Kong for November to January 2001 at $6.35. Third parties freight deals As mentioned above fixed with Preag, Bocimar and Coeclerici on Capes OTC FFA s Bought 75,000 tons from SK Shipping from Colombia to Rotterdam at $ 8.15 for October settlement EOL Traded with Bocimar twice and with Klaveness once this week. Life to date total EOL trades are approaching 300,000 tons. Legal late this week has finally authorised us to trade with NCSC on EOL so we expect to add another counterparty shortly. Furthermore, we are planning a meeting with Calypso fund management and credit to come to a solution to allow the fund to trade with EOL Deal Flow Given the coal desk rates for Rustock, Mission, Spanish ports, Pier 9 to rotterdam and also have sold to the coal desk a cape from Australia to Rotterdam for Feb/March 01 loading Miscellaneous Our new operations person is joining us this Monday ( Dorte ) and she joins us from Norden. Norden is a large Danish shipping company where she had been working for the last 4 years Travels None.