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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, 08 June 12
MINISTER DENIES COAL EXPORT TAX PLAN, ENDORSES RESTRICTIONS - THE JAKARTA POST
The Jakarta post, one of the leading english news paper in Indonesia reported that, Energy and Mineral Resources Minister Jero Wacik has denied that ...
Friday, 08 June 12
NO IMMEDIATE IMPACT ON ADARO'S RATING FROM BEP TRANSACTION - FITCH RATINGS
Fitch Ratings has said that PT Adaro Indonesia's (Adaro, 'BB+'/ Stable) ratings are not immediately affected by its parent PT Adaro Energy Tbk's ...
Thursday, 07 June 12
DRY BULK MARKET FALLS FOR 10 STRAIGHT SESSION ON OVERSUPPLY PROBLEMS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A resurgence of oversupply, coupled with national holidays in various parts of the world has contributed to yet another fall of the dry bulk market ...
Thursday, 07 June 12
COAL EXPORT TAX NOT RATIONAL: MINISTER - THE JAKARTA POST
Trade Minister Gita Wirjawan has criticized as irrational the idea to restrict coal exports by imposing an export tax, According to The Jakarta post ...
Thursday, 07 June 12
BY 2022 PLN IS EXPECTED TO BURN AROUND 125 MILLION TONS OF COAL
COALspot.com - Indonesia's state owned electricity company's (PLN) coal consumption is expected to reach 125.7 million tons by 2012.
Nur Pamudj ...
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- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- Coastal Gujarat Power Limited - India
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Java Power - Indonesia
- Parliament of New Zealand
- Binh Thuan Hamico - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Marubeni Corporation - India
- Gujarat Sidhee Cement - India
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- The University of Queensland
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Ministry of Mines - Canada
- SMC Global Power, Philippines
- Eastern Energy - Thailand
- Economic Council, Georgia
- Latin American Coal - Colombia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Aditya Birla Group - India
- Formosa Plastics Group - Taiwan
- Sarangani Energy Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- London Commodity Brokers - England
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Bhoruka Overseas - Indonesia
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- Offshore Bulk Terminal Pte Ltd, Singapore
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- Ambuja Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- Directorate Of Revenue Intelligence - India
- McConnell Dowell - Australia
- Wilmar Investment Holdings
- Asmin Koalindo Tuhup - Indonesia
- Minerals Council of Australia
- Videocon Industries ltd - India
- Sakthi Sugars Limited - India
- Siam City Cement PLC, Thailand
- Power Finance Corporation Ltd., India
- Manunggal Multi Energi - Indonesia
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Posco Energy - South Korea
- ASAPP Information Group - India
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- Medco Energi Mining Internasional
- Chettinad Cement Corporation Ltd - India
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Bangladesh Power Developement Board
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Africa Commodities Group - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- Orica Mining Services - Indonesia
- Anglo American - United Kingdom
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Uttam Galva Steels Limited - India
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- India Bulls Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- ICICI Bank Limited - India
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Oldendorff Carriers - Singapore
- Holcim Trading Pte Ltd - Singapore
- AsiaOL BioFuels Corp., Philippines
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- Alfred C Toepfer International GmbH - Germany
- Planning Commission, India
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Borneo Indobara - Indonesia
- Australian Coal Association
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Savvy Resources Ltd - HongKong
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Mintek Dendrill Indonesia
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Bhushan Steel Limited - India
- Sree Jayajothi Cements Limited - India
- Energy Link Ltd, New Zealand
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Agrawal Coal Company - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PTC India Limited - India
- Eastern Coal Council - USA
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Standard Chartered Bank - UAE
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- GN Power Mariveles Coal Plant, Philippines
- Petron Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- SMG Consultants - Indonesia
- The State Trading Corporation of India Ltd
- Kepco SPC Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- LBH Netherlands Bv - Netherlands
- Attock Cement Pakistan Limited
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- GAC Shipping (India) Pvt Ltd
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
- Therma Luzon, Inc, Philippines
- CIMB Investment Bank - Malaysia
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- Mercuria Energy - Indonesia
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Authority, New Zealand
- SN Aboitiz Power Inc, Philippines
- Baramulti Group, Indonesia
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