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Monday, 11 May 15
DRY BULK CARRIER ORDERS CRASH TO A TWENTY YEAR LOW - CLARKSONS
 In the last four months dry bulk orders have fallen to 0.4m dwt per month, the lowest level since the 1990s. This is a massive 98% reduction from the 23m dwt peak in orders in December 2007, and probably the sharpest decline in recent decades. Not really a surprise in a market where Capesize bulkers are struggling to earn $4,000/day, but a timely relief to investors with ships on the order book.
Investment Fever
This investment collapse marks the end of a remarkable phase of bulk carrier history. During the last decade, 724m dwt of new bulkers have been ordered, around 70m dwt/year. Just to put that in perspective, during the previous decade ordering averaged about 20m dwt/year.
The 5 years from 1996 to 2001 were disappointing to investors, who ordered only 1.2m dwt/month. At the time this was seen as normal, and included a spike in 1999, when investors snapped up Panamax bulkers for $19-$22m. These were probably the most profitable bulkers ordered in the industry’s post-war history. Upon delivery they sailed straight into the bulk shipping boom. Proof that “crazy investors” are not always crazy.
Softly, Softly
The next phase from 2002 to November 2006 was quite restrained, considering the rise in freight rates. Ordering edged up, averaging 2.8m dwt/month. As earnings eased in 2006, many assumed the boom was over, but they were wrong and what happened next was unprecedented. As earnings escalated owners threw caution to the wind, and the big bulker cash machine drew investors from outside shipping. In December 2007, ordering peaked at 23m dwt, and in 2007 to 2014, investment averaged 6.8m dwt/month (81m dwt/year), an astonishing number for a period mostly in global recession.
Carry On Investing
Despite the onset of the global downturn in 2008, two more bulker investment spikes followed in 2010 and 2013. With surplus bulker capacity, and China’s growth engine easing off, it’s hard to explain this investment on strictly economic grounds. Easier, perhaps, to understand the change in expectations. The memory of spectacular bulker earnings had been fresh in the minds of some investors, but a decade later and that dream is fading.
The collapse in bulkcarrier investment is a particular problem for shipyards. Many builders in China and Japan surfed the wave of bulkcarrier investment and bulkers still account for around half of tonnage on order globally. In today’s sluggish world economy, that is going to be a difficult gap to fill. The fact that bulker prices are around 5% down this year, and ordering has virtually stopped tells its own story.
Big Bulker Investment Boom
So there you have it. The spectacular run of dry bulk investment which kicked off in early 2003 has finally ended. Then China’s imports were growing at 27% a year, a big difference from the 3% growth in 2014. This is disappointing, but as serious shipping investors know, in good markets and bad, there’s still an awful lot of cargo that has to be moved around the world – it’s just a matter of who moves it.
Source: Clarksons | Hellenic Shipping News
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Sunday, 07 April 19
IMO 2020: READY OR NOT? - WOOD MACKENZIE
New Year’s Day 2020 is firmly marked in the calendar as the refining and shipping industries prepare for change.
The International Marit ...
Saturday, 06 April 19
AUSTRALIA COAL POSTS BIGGEST WEEKLY DROP IN A DECADE AMID WEAK DEMAND - REUTERS
Australian thermal coal prices this week registered their biggest weekly fall since the financial market turmoil of a decade ago as demand plunged ...
Saturday, 06 April 19
SUPRAMAX: IT WAS A POOR WEEK OVERALL FOR THE BALTIC SUPRAMAX INDEX, WHICH LOST GROUND - BALTIC BRIEFING
Capesize
The Capesize market over the past week looked to have found a floor on Tuesday with the BCI 5TC at $3460 before firming into the rest ...
Thursday, 04 April 19
OVERSUPPLY STILL MAJOR CHALLENGE WARNS ICS
Speaking in Istanbul, Simon Bennett, Deputy Secretary General of the International Chamber of Shipping (ICS) warned that avoiding overcapacity and ...
Thursday, 04 April 19
GLENCORE, TOHOKU ELECTRIC SET COAL CONTRACT PRICE AT $94.75/T - SOURCE, REUTERS REPORTED
Global miner Glencore and Japan’s Tohoku Electric Power agreed on a price of $94.75 per tonne for supplies of thermal coal from Australia for ...
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Showing 1411 to 1415 news of total 6846 |
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- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- Kumho Petrochemical, South Korea
- Sakthi Sugars Limited - India
- Parry Sugars Refinery, India
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Kobexindo Tractors - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Malabar Cements Ltd - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Thai Mozambique Logistica
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Toyota Tsusho Corporation, Japan
- Wood Mackenzie - Singapore
- Eastern Energy - Thailand
- Petron Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Minerals Council of Australia
- OPG Power Generation Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Maheswari Brothers Coal Limited - India
- VISA Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Indian Oil Corporation Limited
- Sical Logistics Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- Mercator Lines Limited - India
- Wilmar Investment Holdings
- Singapore Mercantile Exchange
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- CIMB Investment Bank - Malaysia
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- Kaltim Prima Coal - Indonesia
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Kartika Selabumi Mining - Indonesia
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- Mjunction Services Limited - India
- Lanco Infratech Ltd - India
- Manunggal Multi Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- Xindia Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Ambuja Cements Ltd - India
- Attock Cement Pakistan Limited
- MS Steel International - UAE
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- Energy Development Corp, Philippines
- Baramulti Group, Indonesia
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Bukit Baiduri Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- Holcim Trading Pte Ltd - Singapore
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Heidelberg Cement - Germany
- AsiaOL BioFuels Corp., Philippines
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- European Bulk Services B.V. - Netherlands
- Africa Commodities Group - South Africa
- IHS Mccloskey Coal Group - USA
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Marubeni Corporation - India
- Bayan Resources Tbk. - Indonesia
- Sree Jayajothi Cements Limited - India
- Deloitte Consulting - India
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Finance - Indonesia
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Edison Trading Spa - Italy
- ASAPP Information Group - India
- Chettinad Cement Corporation Ltd - India
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Cement Manufacturers Association - India
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- SMG Consultants - Indonesia
- GVK Power & Infra Limited - India
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Australian Commodity Traders Exchange
- Antam Resourcindo - Indonesia
- Latin American Coal - Colombia
- Bhoruka Overseas - Indonesia
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Indogreen Group - Indonesia
- White Energy Company Limited
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Central Java Power - Indonesia
- Bhushan Steel Limited - India
- Semirara Mining and Power Corporation, Philippines
- Commonwealth Bank - Australia
- Leighton Contractors Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- Semirara Mining Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Ind-Barath Power Infra Limited - India
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- GMR Energy Limited - India
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Coal and Oil Company - UAE
- Orica Australia Pty. Ltd.
- Mercuria Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- Parliament of New Zealand
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- PNOC Exploration Corporation - Philippines
- PTC India Limited - India
- Interocean Group of Companies - India
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Bharathi Cement Corporation - India
- San Jose City I Power Corp, Philippines
- Barasentosa Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
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