Market Report

Former Reports:

Container update 8th June, 2006

We have noticed a slight slowdown in activity during the last three weeks and it appears the peak of activity seems to have been reached. Having said that, the charter rates are still very firm and there is no sign of foreseeable weakness yet. The charter rates for bigger ships remain at levels reported last whereas the charter rates for ships in the 1700-1000 TEU size are even slightly improving. We generally expect the market to remain firm for the next couple of months, however we would not be suprised if we would see a less active summer period this year unlike 2004 and 2005 as we believe that the majority of Charterers have already covered their needs for summer and early autumn positions and are furthermore postponing possible needs into autumn in anticipation of a weakening market.

As already mentioned above, ships in excess of 2000 TEU have encountered less demand over the last three weeks, however charter rates are still firm and are remaining at levels recently fixed. The 3681 TEU sisters Sargasso Sea and White Sea for instance have been extended by KLINE at USD 27,000 for 36 months which is more or less in line with last done for a sister vessel. In the segment around 2800 TEU it was interesting to see that three Mipo 2800 TEU Newbuildings with delivery next year went en bloc to Hamburg-Sued for a period of 4 years at a decent rate of around USD 21,400. With ships in excess of 2000 TEU remaining tight until the end of the year we cannot see any good reason why the market should deteriorate over the next couple of months.

Ships between 1300 and 1900 TEU did also face less demand compared to previous weeks, however rates did slightly increase in this segment due to the decreasing number of ships that are still open in the next couple of months. The going rate for a 12 mos period for sophisticated ships around 1100/1200 TEU at 14 tons homog. intake seems to be in region of USD 18,500 to 19,000 now (see Hansa Stavanger and San Felipe fixture), which is some USD 500-1000 higher than last done. Noteworthy is also the fixture of the slightly older lady Duburg that went to MISC for 12 months at a remarkable rate of USD 19,500.

In the size around 1000 TEU we have seen more demand than in recent weeks with rates improving particularly for modern ships like CV 1100 Types. CSAV was active by taking on two of those types as a relet for 12 mos at USD 13,500, which is some USD 500 above the last done for a sister ship. It was interesting to observe that the market for the smaller size improved although there are a lot of relet positions available.

FIXTURES

Gearless

Sargasso Sea '96	ext KLINE
44,690 dwt 3681 teu (2560 at 14ts) 300 reefers / 24,0kn on 120,0ts ext 36 mos feast/med trade	27,000

White Sea '96	ext KLINE
44,647 dwt 3681 teu (2560 at 14ts) 300 reefers / 24,0kn on 120,0ts ext 36 mos feast/med trade	27,000

Conti Harmony '97	ZISS
36,950 dwt 2877 teu (2172 at 14ts) 150 reefers / 22,5kn on 108,0ts 3 yrs ww trade	22,250

N/B Annina Schulte '07	Hamburg-Sued
39,200 dwt 2824 teu (2030 at 14ts) 586 reefers / 24,0kn on 95,0ts 4 yrs ww trade	21,400

N/B Valentina Schulte '07	Hamburg-Sued
39,200 dwt 2824 teu (2030 at 14ts) 586 reefers / 24,0kn on 95,0ts 4 yrs ww trade	21,400

N/B Sofia Schulte '07	Hamburg-Sued
39,200 dwt 2824 teu (2030 at 14ts) 586 reefers / 24,0kn on 95,0ts 4 yrs ww trade	21,400

Conti Esperance '96	KLINE
34,930 dwt 2758 teu (2070 at 14ts) 330 reefers / 22,0kn on 95,0ts 30 mos ww trade	22,500

Duburg '90	MISC
26,288 dwt 1743 teu (1315 at 14ts) 140 reefers / 18,7kn on 46,5ts 12 mos feast trade	19,500

OOCL Ability '97	OOCL
24,346 dwt 1560 teu (1210 at 14ts) 200 reefers / 19,5kn on 49,0ts ext 12 mos feast trade	17,000

Kuo Wei '97	Dongnama
18,595 dwt 1471 teu (1100 at 14ts) 100 reefers / 18,0kn on 37,0ts 12 mos feast trade	18,000

Frisia Wuemme '06	US Lines
13,760 dwt 1118 teu (700 at 14ts) 220 reefers / 19,5kn on 36,0ts 12 mos feat trade	12,750

Geared

Thekla Schulte '01	Maersk Line
34,677 dwt 2556 teu (1850 at 14ts) 600 reefers / 22,0kn on 87,0ts opt 12 mos ww trade	private

Marivia '01	SCI
30,375 dwt 2082 teu (1640 at 14ts) 432 reefers / 21,5kn on 74,0ts 36 mos india / usec trade	22,000

Jan S '96	CMA CGM
26,337 dwt 1906 teu (1400 at 14ts) 200 reefers / 20,0kn on 58,0ts 50 mos ww trade	17,350

Santa Monica I '91	Hamburg-Sued
30,007 dwt 1742 teu (1542 at 14ts) 100 reefers / 19,5kn on 47,5ts 12 mos ww trade	19,000

Irenes Logos '95	ZISS
23,970 dwt 1625 teu (1250 at 14ts) 206 reefers / 20,0kn on 53,0ts 24 mos cont/caribs trade	17,500

Conti Asia '93	ext GSL
23,596 dwt 1599 teu (1150 at 14ts) 120 reefers / 18,0kn on 45,0ts ext 12 mos feast/wafrica trade	17,500

Hansa Stavanger '97	Maersk Line
20,630 dwt 1550 teu (1029 at 14ts) 198 reefers / 20,0kn on 49,0ts 12 mos feast trade	18,500

San Felipe '96	ext KLINE
20,219 dwt 1512 teu (1189 at 14ts) 150 reefers / 20,0kn on 51,0ts ext 12 mos usec/ecsa trade	18,750

San Isidro '93	ext Yang Ming Line
20,326 dwt 1512 teu (1193 at 14ts) 150 reefers / 19,6kn on 47,0ts ext 2-4 mos feast trade	21,650

Mamitsa '85	MSC
25,088 dwt 1442 teu (1154 at 14ts) 80 reefers / 18,0kn on 46,0ts 36 mos ww trade	13350

Teval '94	Hamburg-Sued
20,185 dwt 1388 teu (1012 at 14ts) 200 reefers / 18,6kn on 46,0ts 4-5 mos cont/caribs trade	15,850

CEC Star '93	Maersk Line
12,814 dwt 1139 teu (709 at 14ts) 232 reefers / 18,4kn on 42,0ts ext 10-20 days feast trade	14,350

Rahana '97	ext CP Ships
16,700 dwt 1122 teu (817 at 14ts) 120 reefers / 18,5kn on 41,0ts ext 15 mos usg/ncsa trade	14,350

Titan '96	CP Ships
14,580 dwt 1122 teu (748 at 14ts) 150 reefers / 19,5kn on 44,0ts 15 mos atlantic trade	13,600

N/B Surinam River '06	US Lines
13,760 dwt 1118 teu (700 at 14ts) 220 reefers / 19,5kn on 37,0ts 12 mos feast trade	12,750

Tampa Bay '06	CSAV
13,760 dwt 1100 teu (700 at 14ts) 220 reefers / 19,4kn on 37,0ts 12 mos pg/safrica trade (relet)	13,500

Vega Fynen '06	CSAV
13,760 dwt 1092 teu (700 at 14ts) 220 reefers / 19,6kn on 41,0ts 12 mos pg/safrica trade (relet)	13,500

Merkur Bridge '93	WHL
12,575 dwt 1012 teu (636 at 14ts) 90 reefers / 17,5kn on 29,0ts 12 mos feast trade	11,850

Herm Kiepe '97	ZISS
13,110 dwt 969 teu (700 at 14ts) 270 reefers / 18,5kn on 42,0ts 3 mos caribs trade	13,300

This report reflects information given in good faith to the best of our knowledge, but without guarantee.