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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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Monday, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
Friday, 14 June 24
NEXTDECADE, SAUDI ARAMCO SIGN 20-YEAR LNG SUPPLY DEAL - REUTERS
U.S. liquefied natural gas (LNG) provider NextDecade has signed a non-binding agreement with Saudi Aramco 2222.SE to supply 1.2 million tonnes per ...
Friday, 14 June 24
NEWBUILDING PRICES CLIMB 3% TO HIGHEST LEVEL IN 16 YEARS - NIELS RASMUSSEN
“Since the start of the year, newbuilding prices have risen 3% to their highest level since 2008. Compared to their most recent low in late 2 ...
Friday, 14 June 24
INDIA TARGETS HIGHER DOMESTIC COAL PRODUCTION, REDUCED IMPORTS: GOVT - REUTERS
India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The cou ...
Thursday, 13 June 24
US LNG TO ASIA FOR POWER GENERATION EXPECTED TO CUT EMISSIONS VERSUS COAL - RYSTAD ENERGY
The value-chain emissions of liquified natural gas (LNG) are lower on average than for coal-fired power generation, even when the fuel is shipp ...
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- GVK Power & Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Interocean Group of Companies - India
- PTC India Limited - India
- Latin American Coal - Colombia
- IHS Mccloskey Coal Group - USA
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Planning Commission, India
- Lanco Infratech Ltd - India
- Posco Energy - South Korea
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kohat Cement Company Ltd. - Pakistan
- Pendopo Energi Batubara - Indonesia
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- Bharathi Cement Corporation - India
- Cement Manufacturers Association - India
- LBH Netherlands Bv - Netherlands
- Jindal Steel & Power Ltd - India
- Toyota Tsusho Corporation, Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Jaiprakash Power Ventures ltd
- Bhatia International Limited - India
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Commonwealth Bank - Australia
- Bulk Trading Sa - Switzerland
- Sree Jayajothi Cements Limited - India
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Antam Resourcindo - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ministry of Finance - Indonesia
- Kartika Selabumi Mining - Indonesia
- Sical Logistics Limited - India
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- IEA Clean Coal Centre - UK
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Borneo Indobara - Indonesia
- Parry Sugars Refinery, India
- Medco Energi Mining Internasional
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Indonesian Coal Mining Association
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- Kobexindo Tractors - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Altura Mining Limited, Indonesia
- Vedanta Resources Plc - India
- Kumho Petrochemical, South Korea
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- Aditya Birla Group - India
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Intertek Mineral Services - Indonesia
- Barasentosa Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- Tata Chemicals Ltd - India
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Price Waterhouse Coopers - Russia
- Independent Power Producers Association of India
- Wilmar Investment Holdings
- Baramulti Group, Indonesia
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- The University of Queensland
- Ministry of Mines - Canada
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Therma Luzon, Inc, Philippines
- Dalmia Cement Bharat India
- Africa Commodities Group - South Africa
- Standard Chartered Bank - UAE
- Vizag Seaport Private Limited - India
- ASAPP Information Group - India
- Central Electricity Authority - India
- Krishnapatnam Port Company Ltd. - India
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Mercuria Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Simpson Spence & Young - Indonesia
- New Zealand Coal & Carbon
- Petron Corporation, Philippines
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- Agrawal Coal Company - India
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Deloitte Consulting - India
- Trasteel International SA, Italy
- PowerSource Philippines DevCo
- Romanian Commodities Exchange
- Coalindo Energy - Indonesia
- Global Business Power Corporation, Philippines
- Parliament of New Zealand
- Timah Investasi Mineral - Indoneisa
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Tamil Nadu electricity Board
- Semirara Mining and Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- Bhushan Steel Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Mjunction Services Limited - India
- MS Steel International - UAE
- Gujarat Sidhee Cement - India
- Economic Council, Georgia
- Global Coal Blending Company Limited - Australia
- Holcim Trading Pte Ltd - Singapore
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement PLC, Thailand
- GAC Shipping (India) Pvt Ltd
- Sakthi Sugars Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- AsiaOL BioFuels Corp., Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Minerals Council of Australia
- Central Java Power - Indonesia
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- Directorate Of Revenue Intelligence - India
- Maheswari Brothers Coal Limited - India
- Indogreen Group - Indonesia
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