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.
|
|
Monday, 23 July 12
NTPC INVITES BIDS FOR 2.6 MILLION TONS OF LOW MOISTURE IMPORTED COAL
COALspot.com - India’s largest electricity generator, NTPC Limited, incorporated in 1975 as a public sector company wholly owned by Government ...
Sunday, 22 July 12
NEW CHAIRMAN FOR AUSTRALIAN COAL ASSOCIATION
The Australian Coal Association (ACA) announced that Mr Ross Willims has been appointed as its new independent Chairman effective November 5 2012. M ...
Sunday, 22 July 12
CENTRAL KALIMANTAN COAL RAILWAY NETWORK WILL BE BUILT BY 2015 - THE BORNEO POST
The borneo post reported that, a declaration to build a coal railway network is signed today (12/07/2012) in front of the Indonesian Vice President ...
Sunday, 22 July 12
COAL PRICES IN MIXED TRENDS; STOCKS REMAIN HIGH AT BOTH ENDS
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for September 2012 delivery fell 0.99 percent on last Friday closing (d-o-d) and 1.19 percent com ...
Sunday, 22 July 12
TATA POWER SIGNS A LONG TERM COAL SUPPLY AGREEMENT WITH PT ANTANG GUNUNG MERATUS, INDONESIA
COALspot.com - Tata Power, India’s largest integrated power utility, last Friday announced that it has signed a long term coal suppl ...
|
|
|
Showing 4646 to 4650 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Makarim & Taira - Indonesia
- Gujarat Sidhee Cement - India
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Mercator Lines Limited - India
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- South Luzon Thermal Energy Corporation
- Larsen & Toubro Limited - India
- Chamber of Mines of South Africa
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- PowerSource Philippines DevCo
- Electricity Generating Authority of Thailand
- Sojitz Corporation - Japan
- Bahari Cakrawala Sebuku - Indonesia
- Parliament of New Zealand
- CIMB Investment Bank - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tamil Nadu electricity Board
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- Agrawal Coal Company - India
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Offshore Bulk Terminal Pte Ltd, Singapore
- Georgia Ports Authority, United States
- Latin American Coal - Colombia
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- PNOC Exploration Corporation - Philippines
- Economic Council, Georgia
- LBH Netherlands Bv - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- Sakthi Sugars Limited - India
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Romanian Commodities Exchange
- Merrill Lynch Commodities Europe
- Banpu Public Company Limited - Thailand
- Therma Luzon, Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- TNB Fuel Sdn Bhd - Malaysia
- Parry Sugars Refinery, India
- Mintek Dendrill Indonesia
- Ind-Barath Power Infra Limited - India
- Bangladesh Power Developement Board
- Standard Chartered Bank - UAE
- Gujarat Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Pendopo Energi Batubara - Indonesia
- ICICI Bank Limited - India
- Jindal Steel & Power Ltd - India
- Meenaskhi Energy Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Semirara Mining Corp, Philippines
- Anglo American - United Kingdom
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Star Paper Mills Limited - India
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Renaissance Capital - South Africa
- Planning Commission, India
- MS Steel International - UAE
- Maheswari Brothers Coal Limited - India
- GVK Power & Infra Limited - India
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- Metalloyd Limited - United Kingdom
- CNBM International Corporation - China
- Aboitiz Power Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Transport, Egypt
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Baramulti Group, Indonesia
- OPG Power Generation Pvt Ltd - India
- Wilmar Investment Holdings
- Australian Coal Association
- PTC India Limited - India
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Ambuja Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Globalindo Alam Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thiess Contractors Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Marubeni Corporation - India
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Central Electricity Authority - India
- Savvy Resources Ltd - HongKong
- Directorate Of Revenue Intelligence - India
- Edison Trading Spa - Italy
- Indian Oil Corporation Limited
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Orica Mining Services - Indonesia
- Goldman Sachs - Singapore
- Kobexindo Tractors - Indoneisa
- Posco Energy - South Korea
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
- Indonesian Coal Mining Association
- IHS Mccloskey Coal Group - USA
- Leighton Contractors Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- European Bulk Services B.V. - Netherlands
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Orica Australia Pty. Ltd.
- New Zealand Coal & Carbon
- Semirara Mining and Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- McConnell Dowell - Australia
- Dalmia Cement Bharat India
- Indogreen Group - Indonesia
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- PetroVietnam Power Coal Import and Supply Company
|
| |
| |
|
