We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 07 August 12
2ND ANNUAL FLOATING TERMINALS
Press Release - After a ground breaking and successful launch in 2011, the 2nd Annual Floating Terminals conferenceis back to address innovation, co ...
Tuesday, 07 August 12
KRISHNAPATNAM PORT HAS DISCHARGED 122,247 MTS OF COAL IN JUST 24 HRS
COALspot.com - Keeping with the tradition of the new records that are set at the Olympic Games 2012, Krishnapatnam Port has also achieved in setting ...
Tuesday, 07 August 12
THE JAKARTA POST EDITORIAL: REVISITING THE MINING LAW
The Jakarta post, one of the leading English news paper in Indonesia writes in its editorial today, what the domestic and foreign investors had drea ...
Tuesday, 07 August 12
BARAMULTI SET TO LIST ON BOURSE IN Q4 - JP
The Jakarta Post reported that, coal miner PT Baramulti Sukses Sarana is preparing to make its shares available to the public in the fourth quarter ...
Tuesday, 07 August 12
REALM RESOURCES COMPLETES STUDY ON ITS KATINGAN RIA COAL PROJECT
COALspot.com - Realm Resources Ltd. has announced that it has completed the Project Study for the Katingan Ria Project in Central Kalimantan, Indone ...
|
|
|
Showing 4626 to 4630 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- Carbofer General Trading SA - India
- Videocon Industries ltd - India
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Price Waterhouse Coopers - Russia
- Kepco SPC Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Latin American Coal - Colombia
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- SMG Consultants - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Sakthi Sugars Limited - India
- Parliament of New Zealand
- Interocean Group of Companies - India
- Kartika Selabumi Mining - Indonesia
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- PNOC Exploration Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- San Jose City I Power Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Bhushan Steel Limited - India
- Mercuria Energy - Indonesia
- Thai Mozambique Logistica
- GAC Shipping (India) Pvt Ltd
- Power Finance Corporation Ltd., India
- Larsen & Toubro Limited - India
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Coastal Gujarat Power Limited - India
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- Meenaskhi Energy Private Limited - India
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- Ambuja Cements Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Merrill Lynch Commodities Europe
- Minerals Council of Australia
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Altura Mining Limited, Indonesia
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Orica Mining Services - Indonesia
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- McConnell Dowell - Australia
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Indian Oil Corporation Limited
- Semirara Mining Corp, Philippines
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Bulk Trading Sa - Switzerland
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- Maharashtra Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Posco Energy - South Korea
- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- Sojitz Corporation - Japan
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Meralco Power Generation, Philippines
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Heidelberg Cement - Germany
- South Luzon Thermal Energy Corporation
- Wilmar Investment Holdings
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- London Commodity Brokers - England
- PTC India Limited - India
- Karaikal Port Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indogreen Group - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Manunggal Multi Energi - Indonesia
- Petron Corporation, Philippines
- IEA Clean Coal Centre - UK
- Indo Tambangraya Megah - Indonesia
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- GVK Power & Infra Limited - India
- Renaissance Capital - South Africa
- Samtan Co., Ltd - South Korea
- Formosa Plastics Group - Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Electricity Generating Authority of Thailand
- Straits Asia Resources Limited - Singapore
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Bayan Resources Tbk. - Indonesia
- Kaltim Prima Coal - Indonesia
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- TeaM Sual Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- SMC Global Power, Philippines
- Dalmia Cement Bharat India
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- Siam City Cement - Thailand
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- Commonwealth Bank - Australia
- Parry Sugars Refinery, India
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Marubeni Corporation - India
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Globalindo Alam Lestari - Indonesia
- Baramulti Group, Indonesia
- Economic Council, Georgia
- Aditya Birla Group - India
- Electricity Authority, New Zealand
- Coalindo Energy - Indonesia
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- Mercator Lines Limited - India
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Independent Power Producers Association of India
|
| |
| |
|
