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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
REBOUND IN OIL DEMAND COULD LIFT MARKET IN LATTER HALF OF 2024 - BIMCO
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SEABORNE COAL IMPORTS INTO INDIA INCREASED BY +9.9% Y-O-Y TO 146.6 MLN T - BANCHERO COSTA
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EXERCISE CAUTION WITH AMMONIA SWITCH - BALTIC EXCHANGE
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The recent surge in natural gas and coal prices has been so swift that the main benchmarks were roughly three times higher in 2022Q2 compared to a ...
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- Asmin Koalindo Tuhup - Indonesia
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- Economic Council, Georgia
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- AsiaOL BioFuels Corp., Philippines
- Star Paper Mills Limited - India
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- Indo Tambangraya Megah - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
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- Timah Investasi Mineral - Indoneisa
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- European Bulk Services B.V. - Netherlands
- Electricity Generating Authority of Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Madhucon Powers Ltd - India
- Marubeni Corporation - India
- SMG Consultants - Indonesia
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- Sakthi Sugars Limited - India
- Energy Development Corp, Philippines
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
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- Sojitz Corporation - Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Carbofer General Trading SA - India
- Alfred C Toepfer International GmbH - Germany
- Thai Mozambique Logistica
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- Sarangani Energy Corporation, Philippines
- Salva Resources Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
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- Bulk Trading Sa - Switzerland
- Interocean Group of Companies - India
- Kumho Petrochemical, South Korea
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- OPG Power Generation Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Petron Corporation, Philippines
- PowerSource Philippines DevCo
- Planning Commission, India
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- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
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- Price Waterhouse Coopers - Russia
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- International Coal Ventures Pvt Ltd - India
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- Oldendorff Carriers - Singapore
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- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Lanco Infratech Ltd - India
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Samtan Co., Ltd - South Korea
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- GAC Shipping (India) Pvt Ltd
- Kaltim Prima Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining and Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- Global Business Power Corporation, Philippines
- Coalindo Energy - Indonesia
- India Bulls Power Limited - India
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Petrochimia International Co. Ltd.- Taiwan
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
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- Heidelberg Cement - Germany
- Semirara Mining Corp, Philippines
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- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Holcim Trading Pte Ltd - Singapore
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- Wilmar Investment Holdings
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