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Wednesday, 18 July 12
SHIP PRICES HAVE FALLEN RAPIDLY THIS YEAR, FAVORING INVESTORS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 The price for a 5 year old Capesize dry bulk carrier of 172,000 dwt has fallen to about $33,4mil from $42.9 at the end of June 2011, while at end of June 2008 was more than $153 million. This comes to show how much ship prices have fallen in the past few years, which favors new investors in the business. On the other hand, it has caused major headaches among existing ship owners, especially those who invested at the end of the growth cycle, i.e. during the 2007-2008 period. They are now facing huge problems, as they have to provide added collaterals on bank who financed the purchase of those vessels. It's also one of the reasons that banks are reluctant to lend again to the shipping industry, which has been deemed as a risky one, as a result of these past "extravagance" of prices. This has caused some banks to become ship owners these days.
In its latest biannual report, Piraeus-based Golden Destiny noted that second hand vessel prices have plunged during the first half of 2012, mainly in the large sized segments, i.e. the Capesize and the Panamax one. In the panamax market, data from the Baltic Exchange shows that a 5 year old vessel of 52,000 dwt is now worth about $22 million, from $27.5 million at the end of June of 2011, while at the end of June of 2008, the cost for the same ship was more than $75 million.
The report also noted that "in the newbuilding market, similar sharp declines in prices offered by major yards are viewed with investors being more conservative in the placement of new contracts as the instability of the freight market and the challenge of oversupply with upcoming deliveries are creating uncertainty for strong newbuilding investments. A capesize unit of 186,300 dwt reported on order in February this year at Shanghai Waigaoqiao of China for a price in the region of $49,8mil, while at the end of May 2008, a capesize unit of 176,000 dwt had been reported on order at Chinese yard, Zhoushan Jinhawaian for a price about $88,5million" it noted.
This is one of the main reasons why ship owners have invested a fair amount of money in second hand vessel purchases during the first six months of the year, with a total of $6.1 billion for 555 vessels, despite the fall in freight rates. According to the report, second quarter buys were up 24% since the first quarter, while in total the first half of 2012 showed a decline of 9% compared to the same period of 2011, which is a remarkable feat, when considering the global economy uncertainty, the oversupply of tonnage in dry bulk and most other shipping markets and the lack of financing especially in Western Europe.
According to Golden Destiny, dry bulk carriers and tankers accounted for 33% and 26% of the total investment, while containers and liners follow with a 14% and 11% share respectively of the total S&P activity. The bulk carrier, gas tanker and container segments have shown a sharp revival in the volume of vessels reported to have changed hands from the previous quarter with a 31%, 44% and 39% increase respectively. The total amount of money invested for secondhand units this year is lower than the first half of 2011, 43% down, when 610 vessels had been reported to have changed hands at more than $10.7bn, with 103 sale and purchase transactions at an undisclosed sale price. The bulk carrier segment has shown a 31% increase with a total 105 vessels reported to have changed hands during April-June 2012 from 80 vessels in the first three months of the year, while a total of 185 vessels reported sold during the first half of the year at a total invested capital of more than $2.5bn, 11 sale and purchase transactions reported at an undisclosed contract price. “Amid the severe freight market status with capesizes struggling to cover their operating expenses and BDI crawling to remain above 1,000 points, investors haven’t lost their buying appetite by slowing their secondhand purchases only 6% down from the first half of 2011, when 196 bulk carriers changed hands at a total invested capital of more than $3.4billlion. The bulk carrier segment is the segment that posed the least downfall among other vessel categories in the purchase of secondhand units compared with the first half of 2011.
Sources: Nikos Roussanoglou, Hellenic Shipping
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Friday, 06 September 24
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- Bukit Baiduri Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rio Tinto Coal - Australia
- Holcim Trading Pte Ltd - Singapore
- Indo Tambangraya Megah - Indonesia
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Aboitiz Power Corporation - Philippines
- Altura Mining Limited, Indonesia
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Standard Chartered Bank - UAE
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Kepco SPC Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- Star Paper Mills Limited - India
- Krishnapatnam Port Company Ltd. - India
- Edison Trading Spa - Italy
- Bhatia International Limited - India
- Riau Bara Harum - Indonesia
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Siam City Cement PLC, Thailand
- Semirara Mining Corp, Philippines
- Global Business Power Corporation, Philippines
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Oil Corporation Limited
- Mjunction Services Limited - India
- Singapore Mercantile Exchange
- PowerSource Philippines DevCo
- PTC India Limited - India
- Wilmar Investment Holdings
- Interocean Group of Companies - India
- Pendopo Energi Batubara - Indonesia
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Eastern Energy - Thailand
- Kobexindo Tractors - Indoneisa
- Central Java Power - Indonesia
- Electricity Authority, New Zealand
- Bangladesh Power Developement Board
- The University of Queensland
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Binh Thuan Hamico - Vietnam
- Central Electricity Authority - India
- Tamil Nadu electricity Board
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Orica Australia Pty. Ltd.
- Intertek Mineral Services - Indonesia
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Mines - Canada
- Straits Asia Resources Limited - Singapore
- Gujarat Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Therma Luzon, Inc, Philippines
- Georgia Ports Authority, United States
- Kideco Jaya Agung - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Romanian Commodities Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Salva Resources Pvt Ltd - India
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Globalindo Alam Lestari - Indonesia
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- ICICI Bank Limited - India
- Savvy Resources Ltd - HongKong
- Asmin Koalindo Tuhup - Indonesia
- Timah Investasi Mineral - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- MS Steel International - UAE
- The State Trading Corporation of India Ltd
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Energy Development Corp, Philippines
- TeaM Sual Corporation - Philippines
- Australian Commodity Traders Exchange
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Vizag Seaport Private Limited - India
- Bharathi Cement Corporation - India
- Vedanta Resources Plc - India
- Aditya Birla Group - India
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- McConnell Dowell - Australia
- Deloitte Consulting - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- India Bulls Power Limited - India
- Borneo Indobara - Indonesia
- Minerals Council of Australia
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- Bukit Makmur.PT - Indonesia
- Sakthi Sugars Limited - India
- OPG Power Generation Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Meralco Power Generation, Philippines
- Coalindo Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- GVK Power & Infra Limited - India
- Chamber of Mines of South Africa
- Indogreen Group - Indonesia
- Mintek Dendrill Indonesia
- Mercator Lines Limited - India
- Cement Manufacturers Association - India
- Sindya Power Generating Company Private Ltd
- Metalloyd Limited - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Gujarat Sidhee Cement - India
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Power Finance Corporation Ltd., India
- Agrawal Coal Company - India
- Ministry of Finance - Indonesia
- Siam City Cement - Thailand
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Attock Cement Pakistan Limited
- Dalmia Cement Bharat India
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Makarim & Taira - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- SMC Global Power, Philippines
- Planning Commission, India
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Renaissance Capital - South Africa
- Alfred C Toepfer International GmbH - Germany
- Heidelberg Cement - Germany
- Sree Jayajothi Cements Limited - India
- LBH Netherlands Bv - Netherlands
- White Energy Company Limited
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CNBM International Corporation - China
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Kartika Selabumi Mining - Indonesia
- Videocon Industries ltd - India
- Bhoruka Overseas - Indonesia
- Australian Coal Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Latin American Coal - Colombia
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Essar Steel Hazira Ltd - India
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