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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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Friday, 03 August 12
INDIA - LIGHTS OUT! - SALVA
The Indian power sector hit global headlines this week for all the wrong reasons. Firstly, on Monday, over 350 million people lost power across nort ...
Thursday, 02 August 12
OIL & GAS COMPANIES TO MEET IN MYANMAR FOR UPDATES ON NEW ROUND OF BIDDING AND INVESTMENT POTENTIAL IN UPSTREAM OIL, GAS, AND POWER GENERATION
Press Release - 2nd MOGP Summit (Myanmar Oil, Gas & Power) will convene in Yangon from 3 – 6 September 2012, to unveil new round of biddin ...
Thursday, 02 August 12
DRY BULK MARKET RATES CONTINUE SLUMP AMID SLOWER DEMAND NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept on its downward path Wednesday, as the BDI (Baltic Dry Index) kept retreating to new lows. The index was down by 2.12 perce ...
Monday, 30 July 12
DRY BULK MARKET TO REMAIN UNDER PRESSURE FOR THE REST OF 2012 - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In an interview with Hellenic Shipping News Worldwide, Mr. Yannis Pachoulis, President of the Hellenic Shipbrokers' Association, remains cautiously ...
Sunday, 29 July 12
FREIGHT MARKET MOMENTUM CONTINUES TO WEAK
COALspot.com - The freight market continued to soft this week with all the segments dropped and the BDI fell below 1,000 points and closed at 933 po ...
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- Sindya Power Generating Company Private Ltd
- The Treasury - Australian Government
- Kumho Petrochemical, South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Merrill Lynch Commodities Europe
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- London Commodity Brokers - England
- Sojitz Corporation - Japan
- Pendopo Energi Batubara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Anglo American - United Kingdom
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- Dalmia Cement Bharat India
- Indian Oil Corporation Limited
- Gujarat Sidhee Cement - India
- Medco Energi Mining Internasional
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- Toyota Tsusho Corporation, Japan
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- Borneo Indobara - Indonesia
- Port Waratah Coal Services - Australia
- Alfred C Toepfer International GmbH - Germany
- OPG Power Generation Pvt Ltd - India
- Deloitte Consulting - India
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CNBM International Corporation - China
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Thiess Contractors Indonesia
- Parliament of New Zealand
- Ceylon Electricity Board - Sri Lanka
- Coal and Oil Company - UAE
- Oldendorff Carriers - Singapore
- McConnell Dowell - Australia
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Antam Resourcindo - Indonesia
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Altura Mining Limited, Indonesia
- VISA Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- White Energy Company Limited
- Aditya Birla Group - India
- Kideco Jaya Agung - Indonesia
- Singapore Mercantile Exchange
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Australian Coal Association
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Planning Commission, India
- Larsen & Toubro Limited - India
- Interocean Group of Companies - India
- GMR Energy Limited - India
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- Semirara Mining Corp, Philippines
- Tata Chemicals Ltd - India
- Indonesian Coal Mining Association
- Lanco Infratech Ltd - India
- Bhatia International Limited - India
- Cigading International Bulk Terminal - Indonesia
- Independent Power Producers Association of India
- Kapuas Tunggal Persada - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Heidelberg Cement - Germany
- Rashtriya Ispat Nigam Limited - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- San Jose City I Power Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Chamber of Mines of South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- Xindia Steels Limited - India
- Energy Link Ltd, New Zealand
- Indogreen Group - Indonesia
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- Africa Commodities Group - South Africa
- Bhoruka Overseas - Indonesia
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- Standard Chartered Bank - UAE
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Wood Mackenzie - Singapore
- Indian Energy Exchange, India
- Global Business Power Corporation, Philippines
- Economic Council, Georgia
- Thai Mozambique Logistica
- Star Paper Mills Limited - India
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Romanian Commodities Exchange
- Latin American Coal - Colombia
- Kaltim Prima Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Malabar Cements Ltd - India
- Makarim & Taira - Indonesia
- Riau Bara Harum - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- Australian Commodity Traders Exchange
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Wilmar Investment Holdings
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
- The University of Queensland
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Mercator Lines Limited - India
- PowerSource Philippines DevCo
- Essar Steel Hazira Ltd - India
- GVK Power & Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Therma Luzon, Inc, Philippines
- Banpu Public Company Limited - Thailand
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Cement Manufacturers Association - India
- Carbofer General Trading SA - India
- European Bulk Services B.V. - Netherlands
- Electricity Generating Authority of Thailand
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