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Friday, 29 June 12
DRY BULK SHIP OWNERS DOING THEIR MATHS BEFORE PLACING NEWBUILDING ORDERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 With oversupply having plagued the dry bulk shipping fleet since the end of 2011, it’s become ever so evident that placing a newbuilding order is a hard decision nowadays for most ship owners, despite the fact that newbuilding prices are close to their lowest price levels in two decades. Despite this incentive, ship owners have to consider additional factors, such as financing, market conditions and of course freight rates. If they are low, then it’s hard to consider a newbuilding order, since the return on investment will most likely be low, making it more difficult to secure and ultimately paying off a bank loan to finance the newbuilding investment.
In a recent report, Intermodal, aknowledging the fact that timing is crucial in a strongly cyclical and capital intensive market, such as international shipping, examined the case of Kamsarmax dry bulk carriers. In his report, Intermodal’s Panos Tsilingiris, said that for the purpose of the exercise, Intemodal assumed that contracting takes place today and delivery is scheduled after about two years. Furthermore, “the vessel is operated is operated by the buyer for 10 full years (including her second SS/DD) and is sold thereafter. The residual sale price is the resale price of the vessel depreciated over 10 years at 5% p.a. We accept newbuilding prices of $ 26.5 million basis 30/70 payment terms plus $ 500k pre-delivery expenses. With regards to financing, we suppose 60% loan with a fixed interest rate of 5% and 25% balloon, and arrangement/commitment costs of approximately 1.5% of the loan facility. The remaining 40% is financed via equity at 12% p.a. The Opex costs begin with xs $ 6,000/day and are subject to a 2.5% annual appreciation, while we also factor in indicative dry-docking costs. Assuming 365 OPEX days and 350 TC days, the resulting break-even TC rate for the 10-year period is $ 15,959/day” said Tsilingiris.
He added that “at first sight, the above figure may not enthuse speculators when compared to the current freight market in which Kamsarmax bulkers struggle to achieve double-digit yearly TC rates. However, the seasoned shipowner will recognize that this figure is well below the 20-year average, the 10-year average, and the 10-year average after excluding the 2007-2008 bubble years.
Further to the attractive break-even point, the driving force for newbuildings is the high price of bunkers; the ‘eco-type’ designs with their promised (yet generally unproven so far) increased energy efficiency appear tempting to both owners and charterers. Owners might prefer newbuildings over second-hand tonnage since they do not expect a radical peak-up in the dry bulk freight markets during 2012-2013. Moreover, the long operating life of a newbuilding provides some encouragement, if not statistical certainty, that the market will peak up at least once during the vessel’s operating life. There is hope that due to the significantly slower recent contracting of bulker newbuildings and assuming no collapse in demand, the market will return to healthy levels within 2015. Of course, massive orders, something not expected in the short-term given the current market, the tight financing and the global economic uncertainty, would negate any benefit from the lower break-even point of such investments” he said.
As a result, the report from Intermodal concludes that “while the exact figures depend upon the idiosyncrasies of the specific project and ship-owner as well as market conditions (LIBOR, actual TC rates, residual value, etc.), we have shown how the low entrance point for newbuildings renders attractive the break-even rate of such investments. In conclusion, as low shipbuilding prices gradually concur with the maturing of eco-type designs, newbuilding investments appear increasingly attractive” it said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Wednesday, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
...
Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- SMG Consultants - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sakthi Sugars Limited - India
- Sical Logistics Limited - India
- Coal and Oil Company - UAE
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Ministry of Finance - Indonesia
- Indian Oil Corporation Limited
- Petrochimia International Co. Ltd.- Taiwan
- Madhucon Powers Ltd - India
- Gujarat Sidhee Cement - India
- Ceylon Electricity Board - Sri Lanka
- Indonesian Coal Mining Association
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Power Finance Corporation Ltd., India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- ASAPP Information Group - India
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Kobexindo Tractors - Indoneisa
- Romanian Commodities Exchange
- Jindal Steel & Power Ltd - India
- Videocon Industries ltd - India
- Therma Luzon, Inc, Philippines
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Star Paper Mills Limited - India
- Siam City Cement - Thailand
- Bayan Resources Tbk. - Indonesia
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Cigading International Bulk Terminal - Indonesia
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Global Business Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- Indogreen Group - Indonesia
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Trasteel International SA, Italy
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
- Kideco Jaya Agung - Indonesia
- Altura Mining Limited, Indonesia
- IHS Mccloskey Coal Group - USA
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Bharathi Cement Corporation - India
- OPG Power Generation Pvt Ltd - India
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Siam City Cement PLC, Thailand
- Tamil Nadu electricity Board
- Larsen & Toubro Limited - India
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Oldendorff Carriers - Singapore
- Port Waratah Coal Services - Australia
- Global Green Power PLC Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- IEA Clean Coal Centre - UK
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Attock Cement Pakistan Limited
- Wilmar Investment Holdings
- The University of Queensland
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- VISA Power Limited - India
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Toyota Tsusho Corporation, Japan
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- Planning Commission, India
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Lanco Infratech Ltd - India
- Chamber of Mines of South Africa
- Savvy Resources Ltd - HongKong
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- MS Steel International - UAE
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Banpu Public Company Limited - Thailand
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- McConnell Dowell - Australia
- Bukit Makmur.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bukit Baiduri Energy - Indonesia
- Meralco Power Generation, Philippines
- Iligan Light & Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Africa Commodities Group - South Africa
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- International Coal Ventures Pvt Ltd - India
- GMR Energy Limited - India
- Bhatia International Limited - India
- Semirara Mining and Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Australian Coal Association
- Cement Manufacturers Association - India
- Ambuja Cements Ltd - India
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- Ministry of Mines - Canada
- Jorong Barutama Greston.PT - Indonesia
- Xindia Steels Limited - India
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Parliament of New Zealand
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