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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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Monday, 28 May 12
COAL EXPORTS ARE JUMPING HIGHER, BUT PRICES ARE FALLING LOWER
COALspot.com: Indonesia, the world largest coal exporter, shipped 31.86* million tons of coal in April 2012, compared to 30.64* million tons i ...
Sunday, 27 May 12
THE FREIGHT MARKET FROM INDONESIA TO INDIA WAS WEAK - VISTAAR
COALspot.com - The BDI continued to fall for the fourth straight week and the BDI fell by 9.38 pct this week closing at 1,034 points.
The Cape Si ...
Sunday, 27 May 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS HEADING TO SOUTH DIRECTION
COALspot.com - Indonesian sub-bituminous coal swaps and CFR South China coal contracts for July deliveries have dropped this week by 5.43 percent an ...
Saturday, 26 May 12
DRY BULK SHIP OWNERS LOOKING TO CUT BACK ON TONNAGE SUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The oversupply of dry bulk carriers has been the most prominent problem in the market today, pushing down rates and ‘strangling’ profita ...
Thursday, 24 May 12
DRY BULK MARKET RETREATS ON LACK OF CHINA DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market retreated yesterday on the back of lower Chinese demand for commodities such as coal and iron ore, typically hauled by dry bulk ...
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Showing 4716 to 4720 news of total 6871 |
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- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Minerals Council of Australia
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Videocon Industries ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Orica Mining Services - Indonesia
- Thiess Contractors Indonesia
- Mintek Dendrill Indonesia
- SN Aboitiz Power Inc, Philippines
- Electricity Generating Authority of Thailand
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Pendopo Energi Batubara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Madhucon Powers Ltd - India
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Global Coal Blending Company Limited - Australia
- Jorong Barutama Greston.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Simpson Spence & Young - Indonesia
- New Zealand Coal & Carbon
- London Commodity Brokers - England
- Meenaskhi Energy Private Limited - India
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Deloitte Consulting - India
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Sical Logistics Limited - India
- MS Steel International - UAE
- Indogreen Group - Indonesia
- White Energy Company Limited
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Goldman Sachs - Singapore
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Aditya Birla Group - India
- CIMB Investment Bank - Malaysia
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Indian Oil Corporation Limited
- PNOC Exploration Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Petron Corporation, Philippines
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Indika Energy - Indonesia
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Coastal Gujarat Power Limited - India
- Heidelberg Cement - Germany
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- Sindya Power Generating Company Private Ltd
- Kobexindo Tractors - Indoneisa
- Energy Link Ltd, New Zealand
- Orica Australia Pty. Ltd.
- CNBM International Corporation - China
- Mercator Lines Limited - India
- ICICI Bank Limited - India
- Attock Cement Pakistan Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Australian Coal Association
- PowerSource Philippines DevCo
- India Bulls Power Limited - India
- ASAPP Information Group - India
- Marubeni Corporation - India
- McConnell Dowell - Australia
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
- Intertek Mineral Services - Indonesia
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Mercuria Energy - Indonesia
- Riau Bara Harum - Indonesia
- Larsen & Toubro Limited - India
- Holcim Trading Pte Ltd - Singapore
- Global Business Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Uttam Galva Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- GAC Shipping (India) Pvt Ltd
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Agrawal Coal Company - India
- Directorate Of Revenue Intelligence - India
- Kohat Cement Company Ltd. - Pakistan
- Samtan Co., Ltd - South Korea
- Maharashtra Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Leighton Contractors Pty Ltd - Australia
- PTC India Limited - India
- Mjunction Services Limited - India
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Iligan Light & Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- The State Trading Corporation of India Ltd
- Neyveli Lignite Corporation Ltd, - India
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Power Finance Corporation Ltd., India
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- Malabar Cements Ltd - India
- Posco Energy - South Korea
- Toyota Tsusho Corporation, Japan
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- Georgia Ports Authority, United States
- Chamber of Mines of South Africa
- Metalloyd Limited - United Kingdom
- Indian Energy Exchange, India
- Renaissance Capital - South Africa
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- Semirara Mining Corp, Philippines
- Trasteel International SA, Italy
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- The University of Queensland
- Siam City Cement PLC, Thailand
- San Jose City I Power Corp, Philippines
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