We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 02 February 11
HUGE TONNAGE OVERSUPPLY LOOMING FOR DRY BULK MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 With the dry bulk market taking another dive yesterday, to just over 1,000 points (1,084), losing more than 2% on the day, it’s more than obvious that at least until the Chinese market reopens in a couple of weeks (when the Lunar Year Holidays end), things won’t be much different. Yesterday, it was the Supramax’s sector turn to post the most losses, with the relative Baltic Exchange’s Index, the BSI losing 2.46%.
But maybe the most fearful factor coming into play for the dry bulk market is the so talked about tonnage oversupply. According to a recent report from N.Cotzias Shipping Group, the current dry bulk fleet numbers 23,600 ships 614.3mil tons carrying capacity measured in dwt. “There are 3693 ships that are awaiting to be constructed and delivered up until 2014. These new ships will increase the tonnage in terms of carrying capacity by 29% adding 255mil tons of extra dwt. In 2011 we expect 16% or 139mil tons to be delivered and that includes all 2010 slippages. 2012 we expect another 10% or 87mil tons to fall in the active fleet while in 2013 and 2014 only 30mil tons will be added” Cotzias said.
Meanwhile, in the tanker sector, the current fleet is consisted of 12,250 ships of 516.6mil tons dwt. There are 1200 ships that are on order while their total capacity is estimated to be more than 113 mil tons and that is 18% of the current active fleet’s capacity. These new orders are expected to be delivered as follows: 8% or 53mil tons in 2011 included 2010 slippages, 6% in 2012 or 38mil tons, and the remaining 22mil tons or 4% in 2013-2014.
“In the Container market we have 4900 ships active of 159mil tons Gross Tonnage or 14.1mil TEU and we have 590 ships on order of a total of 42.2mil GT, or another 3.85mil TEU of extra carrying capacity. That is a potential 21% increase in the Container carrying ability that is set to happen until 2014. The overall increase will occur 8% or 16.2mil tons GT in 2011 included the 2010 slippages, another 8% in 2012 or an extra 17mil tons gross, 4% increase in 2013 or 7mil tons GT and only 1% in 2014 or 1.7mil tons.
It seems that all sectors are not going to suffer that dramatically from overcapacity. However it is prudent to note that a great deal of capacity increase happened in 2010 already. We had a total of more than 3000 ships reported as delivered during the past year. That is a phenomenally large number. Of these 1200 were Bulkers and General Cargo ships of 76mil tons extra dwt. 650 Tankers including Products and Chemical tankers ships of a total of 42mil tons of dwt were also launched during 2010. In addition 260 container ships of 14.8mil tons GT or 1.4mil TEU were added in 2010. We can make an accurate estimate that the Bulker and Gen. Cargo fleet grew by 14% in 2010 while the tanker fleet grew by 9% and the Container fleet by a mere less 8%” mentioned the shipbroker.
Of course, demand will also play a major role when it comes to sustaining such a large fleet of vessels. As per the World Economic outlook update that was published by the IMF just a week ago, the two-speed recovery continues. In advanced economies, activity has moderated less than expected, but growth remains subdued, unemployment is still high, and renewed stresses in the euro area periphery are contributing to downside risks. In many emerging economies, activity remains buoyant, inflation pressures are emerging, and there are now some signs of overheating, driven in part by strong capital inflows.
Most developing countries, particularly in sub-Saharan Africa, are also growing strongly. Global output is projected to expand by 4½ percent in 2011 an upward revision of about ¼ percentage point relative to the October 2010 World Economic Outlook (WEO). This reflects stronger-than-expected activity in the second half of 2010 as well as new policy initiatives in the United States that will boost activity this year. But downside risks to the recovery remain elevated. The most urgent requirements for robust recovery are comprehensive and rapid actions to overcome sovereign and financial troubles in the euro area and policies to redress fiscal imbalances and to repair and reform financial systems in advanced economies more generally. These need to be complemented with policies that keep overheating pressures in check and facilitate external rebalancing in key emerging economies.
“It is impossible to make any forecasts, We see that world events political or simply acts of god, alter the map or trade and tilt the economic scales that dictate world cargo movements. Suez canal blockage may disrupt shipping lines, no-one knows if such a possibility may occur however if that happens then the CGH will once more see a great deal of traffic through it with price of oil rising to the sky and possibly boosting freight rates to crazy figures. However we should stress that due to high costs imposed by the Suez Canal Authorities and the evergrowing Piracy threats in the GOA area are seriously bringing down canal traffic and as such the effects of a canal closure might prove to be a lot less detrimental on worldwide shipping than initially thought” concluded Cotzias.
Source: Nikos Roussanoglou, Hellenic Shipping
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 28 January 11
MPM SEEKS 40K TONS OF INDONESIAN COAL
An Indian paper producer Mysore Paper Mills Ltd., based in Bangalore is looking for 40,000 metric tons of non-coking coal of Indonesian o ...
Friday, 28 January 11
TRADING PERMIT DELAYS THREATEN EXPORTS - THE JAKARTA GLOBE
The Jakarta Globe reported that, an ongoing wrangle over licenses for mining traders could hurt investment, a coal mining association chief said on ...
Friday, 28 January 11
DRY BULK MARKET CLOSING IN TOWARDS CRISIS LEVELS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The trials and tribulations of the dry bulk market seem to have no end during the first month of 2011, as the industry’s benchmark, the Baltic ...
Wednesday, 26 January 11
ADANI TO SET-UP RAIL, PORT AND POWER PROJECTS IN INDONESIA - MONEYCONTROL
Moneycontrol reported that, Adani Enterprises, the flagship company of India’s infrastructure conglomerate the Adani Group, today announced th ...
Wednesday, 26 January 11
DRY BULK MARKET TAKES YET ANOTHER NOSEDIVE, CAPESIZES LOOK RATHER UNATTRACTIVE AT THE MOMENT - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The downturn of the dry bulk market sees no boundariers, disproving even those who thought that at least for the capesize market, the worst had pass ...
|
|
|
Showing 5406 to 5410 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bank of Tokyo Mitsubishi UFJ Ltd
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Thai Mozambique Logistica
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- New Zealand Coal & Carbon
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Antam Resourcindo - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Anglo American - United Kingdom
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- Carbofer General Trading SA - India
- Coal and Oil Company - UAE
- Africa Commodities Group - South Africa
- ICICI Bank Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement PLC, Thailand
- Gujarat Electricity Regulatory Commission - India
- Sindya Power Generating Company Private Ltd
- Ministry of Transport, Egypt
- Petron Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Kaltim Prima Coal - Indonesia
- Minerals Council of Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Energy Development Corp, Philippines
- TeaM Sual Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CNBM International Corporation - China
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Edison Trading Spa - Italy
- Barasentosa Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Indika Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Deloitte Consulting - India
- Xindia Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Sakthi Sugars Limited - India
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- ASAPP Information Group - India
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Savvy Resources Ltd - HongKong
- Interocean Group of Companies - India
- Cigading International Bulk Terminal - Indonesia
- Bhatia International Limited - India
- Orica Australia Pty. Ltd.
- Leighton Contractors Pty Ltd - Australia
- Bharathi Cement Corporation - India
- Kepco SPC Power Corporation, Philippines
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Semirara Mining Corp, Philippines
- White Energy Company Limited
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Kobexindo Tractors - Indoneisa
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- Ind-Barath Power Infra Limited - India
- Jindal Steel & Power Ltd - India
- Lanco Infratech Ltd - India
- Straits Asia Resources Limited - Singapore
- McConnell Dowell - Australia
- Economic Council, Georgia
- Goldman Sachs - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Wilmar Investment Holdings
- Vijayanagar Sugar Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- CIMB Investment Bank - Malaysia
- IHS Mccloskey Coal Group - USA
- Kapuas Tunggal Persada - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Australian Coal Association
- Parry Sugars Refinery, India
- Central Electricity Authority - India
- Bhushan Steel Limited - India
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Kalimantan Lumbung Energi - Indonesia
- Malabar Cements Ltd - India
- Heidelberg Cement - Germany
- Central Java Power - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PTC India Limited - India
- Sojitz Corporation - Japan
- Vedanta Resources Plc - India
- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Intertek Mineral Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- Standard Chartered Bank - UAE
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Bulk Trading Sa - Switzerland
- Agrawal Coal Company - India
- Ministry of Finance - Indonesia
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Energy Link Ltd, New Zealand
- Metalloyd Limited - United Kingdom
- Siam City Cement - Thailand
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- VISA Power Limited - India
- Baramulti Group, Indonesia
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- Parliament of New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Uttam Galva Steels Limited - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Posco Energy - South Korea
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Georgia Ports Authority, United States
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- PowerSource Philippines DevCo
- Simpson Spence & Young - Indonesia
- Formosa Plastics Group - Taiwan
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
|
| |
| |
|
