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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, 18 May 12
EXPORT TAX WILL ERODE PROFITS, INDONESIAN COAL EXEC COMPLAINS - THE JAKARTA GLOBE
The Jakarta Globe reported that, A 20 percent export duty the government has imposed on 14 mineral ore products will not only take a toll on mining ...
Friday, 18 May 12
KOREA EAST WEST POWER LOOKING FOR TOTAL 2.6 MILLION TONS OF 4600 NAR COAL AT FIXED PRICE FOR 5 YEARS
COALspot.com - Korea East West Power Co., Ltd is inviting bids to supply of 520,000 Metric Tons (per annum) of minimum 4,600 kcal/kg coal of N ...
Friday, 18 May 12
NICKEL ORE CARGOES ARE NOT SEEN IN MARKET ANYMORE DUE TO ON-GOING INDONESIAN BAN - FEARNLEYS AS
Handy
The market remained variable.
Fronthaul voyages both from Baltic and Black Sea paid over USD 18k/day. From USG to Cont tonnage would get ...
Thursday, 17 May 12
COAL MINERS OPPOSE EXPORT TAX, SUGGEST OUTPUT QUOTA - THE JAKARTA POST
The Jakarta Post reported that, coal miners have suggested that the government apply a production quota instead of implementing an export tax in ord ...
Thursday, 17 May 12
DRY BULK MARKET STILL LOOKING FOR NEW DIRECTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept on moving sideways during this week, with the mixed performance across all segments. Yesterday, the industry’s be ...
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Showing 4726 to 4730 news of total 6871 |
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- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Energy Development Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Wilmar Investment Holdings
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- The University of Queensland
- Thai Mozambique Logistica
- Georgia Ports Authority, United States
- Price Waterhouse Coopers - Russia
- CIMB Investment Bank - Malaysia
- Larsen & Toubro Limited - India
- Central Java Power - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- Straits Asia Resources Limited - Singapore
- Gujarat Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Mercator Lines Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Marubeni Corporation - India
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- Minerals Council of Australia
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- Chamber of Mines of South Africa
- Jaiprakash Power Ventures ltd
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Jorong Barutama Greston.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Ministry of Mines - Canada
- Formosa Plastics Group - Taiwan
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- Samtan Co., Ltd - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sakthi Sugars Limited - India
- San Jose City I Power Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Simpson Spence & Young - Indonesia
- SMG Consultants - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Deloitte Consulting - India
- Coastal Gujarat Power Limited - India
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Kobexindo Tractors - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Essar Steel Hazira Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- GMR Energy Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- PNOC Exploration Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Attock Cement Pakistan Limited
- Pipit Mutiara Jaya. PT, Indonesia
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Maheswari Brothers Coal Limited - India
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- VISA Power Limited - India
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Sojitz Corporation - Japan
- Indian Energy Exchange, India
- PTC India Limited - India
- Sree Jayajothi Cements Limited - India
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- White Energy Company Limited
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Energy Link Ltd, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Karaikal Port Pvt Ltd - India
- Ministry of Finance - Indonesia
- Interocean Group of Companies - India
- Iligan Light & Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- Madhucon Powers Ltd - India
- International Coal Ventures Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Sical Logistics Limited - India
- Sinarmas Energy and Mining - Indonesia
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Altura Mining Limited, Indonesia
- Aboitiz Power Corporation - Philippines
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Parry Sugars Refinery, India
- Parliament of New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Ceylon Electricity Board - Sri Lanka
- Independent Power Producers Association of India
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Australian Coal Association
- MS Steel International - UAE
- Eastern Coal Council - USA
- Carbofer General Trading SA - India
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Electricity Authority, New Zealand
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Anglo American - United Kingdom
- IHS Mccloskey Coal Group - USA
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- McConnell Dowell - Australia
- Global Coal Blending Company Limited - Australia
- Ind-Barath Power Infra Limited - India
- Romanian Commodities Exchange
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- India Bulls Power Limited - India
- Global Business Power Corporation, Philippines
- Siam City Cement - Thailand
- Planning Commission, India
- Siam City Cement PLC, Thailand
- Miang Besar Coal Terminal - Indonesia
- Tata Chemicals Ltd - India
- Singapore Mercantile Exchange
- Merrill Lynch Commodities Europe
- Bangladesh Power Developement Board
- Orica Mining Services - Indonesia
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