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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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Thursday, 12 July 12
SOUTHGOBI RESOURCES ANNOUNCES NOTICE OF INVESTMENT DISPUTE FILED AGAINST MONGOLIAN GOVERNMENT
Press Release - SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi”) announced today that SGQ Coal Investment Pte. Ltd., a wholly ...
Wednesday, 11 July 12
HBA DROPPED SHARPLY IN JULY
COALspot.com - Indonesian HBA fell to lowest level since September 2010 in July 2012. The monthly coal reference price for coal sales this mon ...
Wednesday, 11 July 12
SUB-BIT FOB INDONESIA COAL SWAP LOST $ 1.26 PER TON
COALspot.com - Sub-Bit FOB Indonesia Coal decline for a second day yesterday, according to SGX AsiaClear OTC Coal Swaps. The prices for shipments to ...
Tuesday, 10 July 12
DRY BULK MARKET RECORDS MODEST GAINS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched a bit higher on Monday, with the Baltic Dry Index (BDI) ending the session up by 5 points to 1,162. Most markets were hig ...
Saturday, 07 July 12
INDONESIA-JAPAN RELATIONS TURN SOUR - THE JAKARTA POST
The Jakarta Post, the one of the leading Indonesian English new papers reported that, Bilateral relations between Indonesia and Japan have recently ...
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- Chamber of Mines of South Africa
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- Dalmia Cement Bharat India
- San Jose City I Power Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Australian Coal Association
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Global Coal Blending Company Limited - Australia
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- GVK Power & Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sakthi Sugars Limited - India
- ICICI Bank Limited - India
- Kumho Petrochemical, South Korea
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- Energy Link Ltd, New Zealand
- Indogreen Group - Indonesia
- Marubeni Corporation - India
- Interocean Group of Companies - India
- Electricity Generating Authority of Thailand
- Krishnapatnam Port Company Ltd. - India
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- SMG Consultants - Indonesia
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Timah Investasi Mineral - Indoneisa
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- IEA Clean Coal Centre - UK
- Bulk Trading Sa - Switzerland
- VISA Power Limited - India
- Ministry of Finance - Indonesia
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Formosa Plastics Group - Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sindya Power Generating Company Private Ltd
- Bangladesh Power Developement Board
- Chettinad Cement Corporation Ltd - India
- Agrawal Coal Company - India
- Posco Energy - South Korea
- GMR Energy Limited - India
- Cigading International Bulk Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Orica Mining Services - Indonesia
- Energy Development Corp, Philippines
- The Treasury - Australian Government
- Deloitte Consulting - India
- Antam Resourcindo - Indonesia
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- Tamil Nadu electricity Board
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Ministry of Transport, Egypt
- Kideco Jaya Agung - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Sree Jayajothi Cements Limited - India
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Barasentosa Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Wilmar Investment Holdings
- White Energy Company Limited
- Samtan Co., Ltd - South Korea
- Directorate Of Revenue Intelligence - India
- Jindal Steel & Power Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Mineral Development Corp Ltd - India
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Lanco Infratech Ltd - India
- OPG Power Generation Pvt Ltd - India
- Indonesian Coal Mining Association
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Coastal Gujarat Power Limited - India
- The University of Queensland
- The State Trading Corporation of India Ltd
- Indian Oil Corporation Limited
- Ceylon Electricity Board - Sri Lanka
- PowerSource Philippines DevCo
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- PTC India Limited - India
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- Billiton Holdings Pty Ltd - Australia
- Ind-Barath Power Infra Limited - India
- Meenaskhi Energy Private Limited - India
- PNOC Exploration Corporation - Philippines
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Parliament of New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Mjunction Services Limited - India
- European Bulk Services B.V. - Netherlands
- Siam City Cement - Thailand
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Economic Council, Georgia
- Sinarmas Energy and Mining - Indonesia
- Bhatia International Limited - India
- India Bulls Power Limited - India
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Coal and Oil Company - UAE
- Borneo Indobara - Indonesia
- Global Business Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Rashtriya Ispat Nigam Limited - India
- Malabar Cements Ltd - India
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- CIMB Investment Bank - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- LBH Netherlands Bv - Netherlands
- Trasteel International SA, Italy
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- Aboitiz Power Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Eastern Energy - Thailand
- Baramulti Group, Indonesia
- Makarim & Taira - Indonesia
- Planning Commission, India
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Thai Mozambique Logistica
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- Mercator Lines Limited - India
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Directorate General of MIneral and Coal - Indonesia
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
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