We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 26 April 12
BUKIT ASAMS 1Q OPERATING PROFIT MARGIN HAS INCREASED BY 6% TO RP. 1 TRILLION
COALspot.com - PT. Bukit Asam (Persero), the Indonesia’s state owned coal miner's 1Q, 2012 revenue has increased by 31% to Rp. 3.02 trillion ...
Thursday, 26 April 12
TAIPOWER TO BUY 1.15 MILLION TONS OF 5000 GAR COAL
COALspot.com - Taiwan Power Company intends to procure 1.125million tons of sub-bituminous coal for Taipower thermal power plant through open tender ...
Thursday, 26 April 12
TAIPOWER TO BUY 375,000 MT OF 4800 GAR COAL
COALspot.com - Taiwan Power Company intends to procure 375,000 metric tons of low sulfur sub-bituminous coal for Taipower thermal power plant ...
Thursday, 26 April 12
ADK SHIPPED 28,000 TONNES OF COAL THIS MONTH
COALspot.com - Orpheus Energy (ASX:OEG) has announced that four coal barges carrying a total of approximately 28,000 tonnes of ADK (Alam Duta K ...
Thursday, 26 April 12
DRY BULK CARRIERS RENTER FLEET AFTER IDLING, ON MARKETS RECOVERY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market seems to be back on track, not only solidifying the gains of the past couple of weeks, but also racing to new heights, recuperra ...
|
|
|
Showing 4751 to 4755 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Gujarat Sidhee Cement - India
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Bhushan Steel Limited - India
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Toyota Tsusho Corporation, Japan
- Jaiprakash Power Ventures ltd
- Mercator Lines Limited - India
- GAC Shipping (India) Pvt Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Economic Council, Georgia
- Indian Oil Corporation Limited
- Bharathi Cement Corporation - India
- Planning Commission, India
- Africa Commodities Group - South Africa
- Grasim Industreis Ltd - India
- Sical Logistics Limited - India
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Parliament of New Zealand
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Thiess Contractors Indonesia
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Siam City Cement - Thailand
- Rio Tinto Coal - Australia
- OPG Power Generation Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- MS Steel International - UAE
- Romanian Commodities Exchange
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- LBH Netherlands Bv - Netherlands
- The Treasury - Australian Government
- Ministry of Transport, Egypt
- Orica Mining Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- McConnell Dowell - Australia
- Asmin Koalindo Tuhup - Indonesia
- Salva Resources Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
- Sinarmas Energy and Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Sree Jayajothi Cements Limited - India
- Parry Sugars Refinery, India
- Jorong Barutama Greston.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Trasteel International SA, Italy
- Star Paper Mills Limited - India
- Meralco Power Generation, Philippines
- Manunggal Multi Energi - Indonesia
- Standard Chartered Bank - UAE
- PTC India Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Savvy Resources Ltd - HongKong
- Kohat Cement Company Ltd. - Pakistan
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- Ministry of Mines - Canada
- Central Java Power - Indonesia
- Wilmar Investment Holdings
- Videocon Industries ltd - India
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- The University of Queensland
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Australian Coal Association
- Jindal Steel & Power Ltd - India
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Chamber of Mines of South Africa
- Sojitz Corporation - Japan
- Leighton Contractors Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Heidelberg Cement - Germany
- Orica Australia Pty. Ltd.
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Coal and Oil Company - UAE
- Sindya Power Generating Company Private Ltd
- Riau Bara Harum - Indonesia
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Eastern Energy - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Semirara Mining Corp, Philippines
- GVK Power & Infra Limited - India
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- San Jose City I Power Corp, Philippines
- Straits Asia Resources Limited - Singapore
- PNOC Exploration Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Ambuja Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- SMC Global Power, Philippines
- Bulk Trading Sa - Switzerland
- Maharashtra Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- New Zealand Coal & Carbon
- Vedanta Resources Plc - India
- Uttam Galva Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Indika Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Coastal Gujarat Power Limited - India
- Kobexindo Tractors - Indoneisa
- The State Trading Corporation of India Ltd
- Kapuas Tunggal Persada - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Global Coal Blending Company Limited - Australia
- Energy Development Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Anglo American - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Indian Energy Exchange, India
- Simpson Spence & Young - Indonesia
- Aditya Birla Group - India
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Bukit Makmur.PT - Indonesia
- Baramulti Group, Indonesia
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
|
| |
| |
|
