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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, 05 July 12
BUMI ACHIEVES HIGHER SELLING PRICE IN FIRST QUARTER
COALspot.com - PT Bumi Resources Tbk (BUMI), Indonesia's largest coal producer and exporter, has successfully maintained a higher sales margin, des ...
Tuesday, 03 July 12
DRY BULK MARKET INCHED FORWARD AT THE START OF THE WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched forward at the beginning of the new week, prior to the US holidays regarding the celebration of the 4th of July, which is ...
Monday, 02 July 12
ORPHEUS STRENGTHENS REVENUE STREAM WITH NEW ROYALTY AGREEMENT AT THE B2 COAL PROJECT
Orpheus Energy (ASX:OEG) is pleased to advise that it has executed a life of mine Royalty Agreement with Indonesian mining contractor PT Debbia Mini ...
Monday, 02 July 12
DRY BULK DEMAND TO RISE TO 3.6 BILLION TONNES IN 2012, BUT NEW BUILDING DELIVERIES ARE
In its latest analysis on the dry bulk market fundamentals, DVB Bank said that dry bulk cargo demand is forecast to rise to approximately 3.6 billio ...
Sunday, 01 July 12
AUSTRALIAS CARBON TAX - SUNIL K KUMBHAT
COALspot.com - Climate Change
Climate change and global warming have now become buzzwords the world over. The disastrous consequences for global ...
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- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Bharathi Cement Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Sinarmas Energy and Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- Posco Energy - South Korea
- Directorate Of Revenue Intelligence - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Krishnapatnam Port Company Ltd. - India
- Parry Sugars Refinery, India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Mercator Lines Limited - India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement - Thailand
- Aboitiz Power Corporation - Philippines
- Central Electricity Authority - India
- Orica Australia Pty. Ltd.
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- San Jose City I Power Corp, Philippines
- Parliament of New Zealand
- Semirara Mining and Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- Minerals Council of Australia
- Gujarat Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Georgia Ports Authority, United States
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Samtan Co., Ltd - South Korea
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Jindal Steel & Power Ltd - India
- Central Java Power - Indonesia
- Sical Logistics Limited - India
- Coastal Gujarat Power Limited - India
- Ambuja Cements Ltd - India
- Indogreen Group - Indonesia
- Economic Council, Georgia
- Port Waratah Coal Services - Australia
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- The State Trading Corporation of India Ltd
- Australian Coal Association
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Petron Corporation, Philippines
- Africa Commodities Group - South Africa
- Bayan Resources Tbk. - Indonesia
- Vizag Seaport Private Limited - India
- Altura Mining Limited, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Sarangani Energy Corporation, Philippines
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- PTC India Limited - India
- Salva Resources Pvt Ltd - India
- Borneo Indobara - Indonesia
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- Deloitte Consulting - India
- Ceylon Electricity Board - Sri Lanka
- GAC Shipping (India) Pvt Ltd
- Toyota Tsusho Corporation, Japan
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining Corp, Philippines
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Savvy Resources Ltd - HongKong
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Baramulti Group, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Bhatia International Limited - India
- Commonwealth Bank - Australia
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Directorate General of MIneral and Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- Agrawal Coal Company - India
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- IHS Mccloskey Coal Group - USA
- The Treasury - Australian Government
- Uttam Galva Steels Limited - India
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Thiess Contractors Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- European Bulk Services B.V. - Netherlands
- Meralco Power Generation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- White Energy Company Limited
- India Bulls Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- Makarim & Taira - Indonesia
- Maheswari Brothers Coal Limited - India
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- Thai Mozambique Logistica
- Wilmar Investment Holdings
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
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