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Friday, 06 April 12
DRY BULK MARKET SWIFT TO HALT FALL ON RENEWED DEMAND FOR CAPESIZES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 The dry bulk managed to put a stop to the recent falls, which came as a result of a lacklustre demand for smaller vessel sizes. Although this trend has remained the same, the return of Chinese charterers from their three-day holidays marked a stronger demand for Capesizes yesterday, which in turn was enough to offset the lack of interest for smaller vessels and lead the market to higher ground. The Baltic Dry Index (BDI) was up by 0..22% to 928 points yesterday, with Capesizes gaining 2.17% on the day and reaching 1,507 points. By contrast, the demise of the Supramax market was again evident, with the relative index losing 1.66%, while Panamaxes were also down by 0.67%.
Detailing the oversupply issues which have caused the dry bulk market to retreat to such low levels since the start of the year, Intermodal’s Theodore Ntalakos said that “the freight market and other circumstances were quite convenient for many shipowners who while acting independently and rationally consulting their own self-interest, ordered new buildings even when it was clear that in the long-term the excessive tonnage would eventually suffocate the freight market. It is a real-life example of game theory that shows why two or more individuals might not cooperate, even if it is in their best interest to do so” said Mr. Ntalakos.
He went on to give an example to make his case. “Say we have one shipowner ( Shipowner A) and all the rest shipowners (Shipowner B). Each of their strategy is either to expand by ordering the new fuel efficient vessels or not to order and buy a vessel from the second hand market. We have four possible scenarios:
I. If Shipowner A orders and no one else does then he will get the benefit of new designs, and earn say $10, B stays behind and earns $1
II. If both A and B order then they lose the advantage and they earn very little - $2,
III. If no one orders then they earn moderately from their existing fleet - $5 each, and
IV. If shipowner A does not order but 'B' orders then 'A' will earn very little because the charterers will prefer B's ECO ships – A earns $1, B earns $10.
Here, regardless of what the other decides, each shipowner gets a higher pay-off by ordering new vessels:
I. If B does not order, the payoffs for A are $5 or $10 so he will always chose $10 i.e to order.
II. If B orders, the payoffs for A are $1 or $2 so he will always chose $2 i.e to order
The game is symmetric so Shipower B would always act the same way which means that both shipowers would order new vessels. Since both rational owners decide to order new vessels each receives a lower reward than if both were not to order!! So, rational decision-making results being worse off than if each chose not to order and accept to earn less. As the two shipowners can’t see what the others are doing and cannot play a cooperative game, they will decide to maximize their pay-off and always proceed with orders” said Mr. Ntalakos in a rather interesting undertaking.
He concluded his analysis by stating “we need however to point out that the new ECO ships especially with the current restrain on finance, will only be a small part of the total fleet and orderbook and it will take years to play a substantial part and drive the older vessels out of the market, so we expect owners who order such vessels with today's new builiding and bunker prices to have the competitive advantage for the years to come.
So, there you have it, Shipping is a non-cooperative game. Then why do pools exist? Even in pools if each member's interest to put the next (and succeeding) vessel he acquires into the pool and the demand is limited then the quality of the common is damaged for everybody. So like everything else in life one needs to find the proper equilibrium between cooperating and looking after one's self-interest” he said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Monday, 20 August 12
CHINESE COAL SWAPS RISE, INDONESIAN COAL CONTRACTS SOFT
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for October 2012 delivery lost -2.05 percent W-o-W on Friday (17 August 2012) closing but gained ...
Saturday, 18 August 12
BULK FREIGHT MARKETS CONTINUED THEIR DECLINE IN LINE WITH WEAK DEMAND - VISTAAR
COALspot.com - This week also the indices fell on all segments with BDI touching lowest in almost 3 years.
The BDI closed at 714 points down by 7 ...
Thursday, 16 August 12
PUBLIC PRIVATE PARTNERSHIPS CONFERENCE 2012
Press Release - Asia’s Premier Public Private Partnerships Conference 2012 will showcase commercial opportunities for investors and developers ...
Wednesday, 15 August 12
UT GENERATED RP 3.09 TRILLION NET INCOME
COALspot.com - As of June 2012 Indonesia’s heavy equipment market grew 14%, from 8,448 units to 9,618 units (based on UT’s internal mark ...
Tuesday, 14 August 12
SAKARI ENTERED INTO JV IN CAMBODIA TO EXPLORE COAL OPPORTUNITIES
COALspot.com - Sakari joints hands with The Royal Group of Companies in Cambodia to explore and develop coal opportunities throughout the country.
...
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- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Indian Oil Corporation Limited
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Binh Thuan Hamico - Vietnam
- Australian Coal Association
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- Videocon Industries ltd - India
- Aditya Birla Group - India
- Kobexindo Tractors - Indoneisa
- Singapore Mercantile Exchange
- Xindia Steels Limited - India
- Siam City Cement PLC, Thailand
- Straits Asia Resources Limited - Singapore
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Oldendorff Carriers - Singapore
- Essar Steel Hazira Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Ambuja Cements Ltd - India
- Formosa Plastics Group - Taiwan
- Lanco Infratech Ltd - India
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Kepco SPC Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- London Commodity Brokers - England
- Ind-Barath Power Infra Limited - India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining and Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Marubeni Corporation - India
- Deloitte Consulting - India
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Pipit Mutiara Jaya. PT, Indonesia
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- IEA Clean Coal Centre - UK
- Karbindo Abesyapradhi - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Tamil Nadu electricity Board
- Miang Besar Coal Terminal - Indonesia
- Agrawal Coal Company - India
- The State Trading Corporation of India Ltd
- Vizag Seaport Private Limited - India
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Merrill Lynch Commodities Europe
- Maheswari Brothers Coal Limited - India
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Leighton Contractors Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- India Bulls Power Limited - India
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kaltim Prima Coal - Indonesia
- Thai Mozambique Logistica
- Bank of Tokyo Mitsubishi UFJ Ltd
- Banpu Public Company Limited - Thailand
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Standard Chartered Bank - UAE
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Jaiprakash Power Ventures ltd
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Riau Bara Harum - Indonesia
- Sarangani Energy Corporation, Philippines
- The Treasury - Australian Government
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- Latin American Coal - Colombia
- GMR Energy Limited - India
- Commonwealth Bank - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Baiduri Energy - Indonesia
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- Mercator Lines Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Global Business Power Corporation, Philippines
- Parliament of New Zealand
- GAC Shipping (India) Pvt Ltd
- Posco Energy - South Korea
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
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