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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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Friday, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
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- Intertek Mineral Services - Indonesia
- Grasim Industreis Ltd - India
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- New Zealand Coal & Carbon
- Bulk Trading Sa - Switzerland
- Bukit Makmur.PT - Indonesia
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- The University of Queensland
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Dalmia Cement Bharat India
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- ICICI Bank Limited - India
- Bhoruka Overseas - Indonesia
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- Central Electricity Authority - India
- Tata Chemicals Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bharathi Cement Corporation - India
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- GMR Energy Limited - India
- Planning Commission, India
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Pendopo Energi Batubara - Indonesia
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Makarim & Taira - Indonesia
- Africa Commodities Group - South Africa
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Australian Commodity Traders Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Indika Energy - Indonesia
- PowerSource Philippines DevCo
- Kobexindo Tractors - Indoneisa
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Global Coal Blending Company Limited - Australia
- Ceylon Electricity Board - Sri Lanka
- Minerals Council of Australia
- Krishnapatnam Port Company Ltd. - India
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Romanian Commodities Exchange
- Power Finance Corporation Ltd., India
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Larsen & Toubro Limited - India
- Energy Development Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Kaltim Prima Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Heidelberg Cement - Germany
- Vedanta Resources Plc - India
- Coalindo Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Ministry of Mines - Canada
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- GAC Shipping (India) Pvt Ltd
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- Thai Mozambique Logistica
- Billiton Holdings Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Rio Tinto Coal - Australia
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- South Luzon Thermal Energy Corporation
- Mintek Dendrill Indonesia
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Star Paper Mills Limited - India
- Thiess Contractors Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Latin American Coal - Colombia
- Kideco Jaya Agung - Indonesia
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Uttam Galva Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Banpu Public Company Limited - Thailand
- The State Trading Corporation of India Ltd
- Carbofer General Trading SA - India
- Madhucon Powers Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- PTC India Limited - India
- Altura Mining Limited, Indonesia
- White Energy Company Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Savvy Resources Ltd - HongKong
- Bhushan Steel Limited - India
- Trasteel International SA, Italy
- Ministry of Finance - Indonesia
- Directorate Of Revenue Intelligence - India
- CNBM International Corporation - China
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Gujarat Mineral Development Corp Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Attock Cement Pakistan Limited
- Riau Bara Harum - Indonesia
- Independent Power Producers Association of India
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Cement Manufacturers Association - India
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- Borneo Indobara - Indonesia
- India Bulls Power Limited - India
- Coastal Gujarat Power Limited - India
- CIMB Investment Bank - Malaysia
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Alfred C Toepfer International GmbH - Germany
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- Samtan Co., Ltd - South Korea
- Deloitte Consulting - India
- Baramulti Group, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Australian Coal Association
- Edison Trading Spa - Italy
- Semirara Mining Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Parliament of New Zealand
- Electricity Generating Authority of Thailand
- Lanco Infratech Ltd - India
- GVK Power & Infra Limited - India
- Parry Sugars Refinery, India
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