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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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Saturday, 21 July 12
THE FREIGHT RATES ARE EXPECTED TO BE FLAT TO SOFT NEXT WEEK - VISTAAR
COALspot.com - The freight market was soft this week as all the segments were down.
The BDI was down by 6.58 pct closing at 1,037 points and the ...
Saturday, 21 July 12
INDONESIAN COMPANIES ABM INVESTAMA AND AVRA ASIA WORK OUT LONG-TERM CONTRACT - THE JAKARTA GLOBE
The Jakarta Globe, one of the leading English news papaer in Indonesia reported that, ABM Investama, a company with diversified interests in coal mi ...
Friday, 20 July 12
INDONESIA-INDIA SUPRAS BEING FIXED AT $ 10K
Handy
After a stable last week, the Handysize market has experienced softening rates in the Atlantic. Ships are ballasting from India into the Atla ...
Friday, 20 July 12
HANDYSIZES PROVE RATHER ATTRACTIVE AMONG OTHER SHIPS, IN TERMS OF FUTURE RETURNS ON INVESTMENT - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The Handysize segment of the dry bulk market appears to offer the best incentive among other ship types, for a ship owners to invest in, says Interm ...
Wednesday, 18 July 12
TAIWAN POWER COMPANY TO IMPORT 0.588 MILLION TONS OF LOW ASH AND EXTRA LOW SULFUR SUB-BITUMINOUS COAL
COALspot.com - Taiwan Power Company intends to procure 588,000 MT tons of extra low sulfur sub-bituminous coal for Taipower thermal power plant thro ...
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Showing 4651 to 4655 news of total 6871 |
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- Coalindo Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- MS Steel International - UAE
- Attock Cement Pakistan Limited
- Thai Mozambique Logistica
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Africa Commodities Group - South Africa
- Larsen & Toubro Limited - India
- White Energy Company Limited
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- Iligan Light & Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Bharathi Cement Corporation - India
- Vizag Seaport Private Limited - India
- Cigading International Bulk Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- Oldendorff Carriers - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Cement Manufacturers Association - India
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Coal and Oil Company - UAE
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Singapore Mercantile Exchange
- TNB Fuel Sdn Bhd - Malaysia
- The University of Queensland
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- Posco Energy - South Korea
- Malabar Cements Ltd - India
- Mercator Lines Limited - India
- Timah Investasi Mineral - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
- Tata Chemicals Ltd - India
- Antam Resourcindo - Indonesia
- Mintek Dendrill Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Planning Commission, India
- Central Java Power - Indonesia
- Central Electricity Authority - India
- Orica Australia Pty. Ltd.
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Riau Bara Harum - Indonesia
- Bhoruka Overseas - Indonesia
- Jaiprakash Power Ventures ltd
- Heidelberg Cement - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- Borneo Indobara - Indonesia
- Energy Development Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Ind-Barath Power Infra Limited - India
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Dalmia Cement Bharat India
- Gujarat Mineral Development Corp Ltd - India
- Binh Thuan Hamico - Vietnam
- Power Finance Corporation Ltd., India
- Kepco SPC Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- Port Waratah Coal Services - Australia
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Bhatia International Limited - India
- GVK Power & Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- CNBM International Corporation - China
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- SMC Global Power, Philippines
- Sinarmas Energy and Mining - Indonesia
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Energy Link Ltd, New Zealand
- South Luzon Thermal Energy Corporation
- Videocon Industries ltd - India
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Australian Coal Association
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- The Treasury - Australian Government
- Madhucon Powers Ltd - India
- Savvy Resources Ltd - HongKong
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Parliament of New Zealand
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Edison Trading Spa - Italy
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Sical Logistics Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Authority, New Zealand
- Ceylon Electricity Board - Sri Lanka
- ICICI Bank Limited - India
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Kartika Selabumi Mining - Indonesia
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- Directorate Of Revenue Intelligence - India
- Pipit Mutiara Jaya. PT, Indonesia
- VISA Power Limited - India
- Vedanta Resources Plc - India
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- New Zealand Coal & Carbon
- Siam City Cement PLC, Thailand
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Maharashtra Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- Deloitte Consulting - India
- Rio Tinto Coal - Australia
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Bhushan Steel Limited - India
- Carbofer General Trading SA - India
- Kobexindo Tractors - Indoneisa
- Orica Mining Services - Indonesia
- Altura Mining Limited, Indonesia
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Trasteel International SA, Italy
- Thiess Contractors Indonesia
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