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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, 20 April 12
PANAMAXES LEAD DRY BULK MARKET TO HIGHER GROUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A rebound of demand for smaller dry bulk carriers has led the industry’s benchmark, the BDI (Baltic Dry Index) above the 1,000-point mark for ...
Friday, 20 April 12
BUMA HAS PRODUCED 2.6 MILLION TONS OF COAL IN MARCH 2012
COALspot.com - BUMA has removed 28.0 million bcm (+6.4% YoY) of overburden in March 2012 while coal production was at 2.6 million tons (+1.3% YoY).
...
Thursday, 19 April 12
FRESH COAL SALES FROM JATENERGYS JONGKANG MINES
COALspot.com - Energy company Jatenergy Ltd (ASX code JAT) announced today that it had signed a contract for an 11,000 tonne coal sale due for shipm ...
Thursday, 19 April 12
HANDY - 'POSITIVE TREND', PANAMAX - 'A FIRMER TENDENCY', CAPESIZE - 'AGAIN NEGATIVE'
Handy
The positive trend from last week continued, with more cargoes entering the market. Skaw/Passero del fixed tick above USD 4000 for US Gulf di ...
Thursday, 19 April 12
WILLIS MARINE MARKET REVIEW FORECASTS ANOTHER DIFFICULT YEAR - WILLIS GLOBAL MARINE / HELLENIC SHIPPING
After an inauspicious start, 2012 could well be "another difficult and uncertain year for the maritime industry faced with the aftermath of the ...
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- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Kideco Jaya Agung - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- TeaM Sual Corporation - Philippines
- Coal and Oil Company - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- The University of Queensland
- Pipit Mutiara Jaya. PT, Indonesia
- Posco Energy - South Korea
- VISA Power Limited - India
- Parliament of New Zealand
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- Sree Jayajothi Cements Limited - India
- Edison Trading Spa - Italy
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Minerals Council of Australia
- Kepco SPC Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Vedanta Resources Plc - India
- Gujarat Sidhee Cement - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Orica Australia Pty. Ltd.
- SMC Global Power, Philippines
- Planning Commission, India
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Bhatia International Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Cigading International Bulk Terminal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- Lanco Infratech Ltd - India
- Ind-Barath Power Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Kapuas Tunggal Persada - Indonesia
- Ambuja Cements Ltd - India
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Romanian Commodities Exchange
- New Zealand Coal & Carbon
- SMG Consultants - Indonesia
- India Bulls Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Sinarmas Energy and Mining - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Directorate General of MIneral and Coal - Indonesia
- Goldman Sachs - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- Eastern Energy - Thailand
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Malabar Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Georgia Ports Authority, United States
- ICICI Bank Limited - India
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Essar Steel Hazira Ltd - India
- Independent Power Producers Association of India
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Price Waterhouse Coopers - Russia
- Neyveli Lignite Corporation Ltd, - India
- Aditya Birla Group - India
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Chettinad Cement Corporation Ltd - India
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- Meralco Power Generation, Philippines
- Bharathi Cement Corporation - India
- Bhushan Steel Limited - India
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Globalindo Alam Lestari - Indonesia
- Interocean Group of Companies - India
- Aboitiz Power Corporation - Philippines
- Port Waratah Coal Services - Australia
- Indian Energy Exchange, India
- Banpu Public Company Limited - Thailand
- Indonesian Coal Mining Association
- Savvy Resources Ltd - HongKong
- Petron Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Star Paper Mills Limited - India
- Coastal Gujarat Power Limited - India
- Borneo Indobara - Indonesia
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- Therma Luzon, Inc, Philippines
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Tamil Nadu electricity Board
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Sarangani Energy Corporation, Philippines
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Global Coal Blending Company Limited - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Toyota Tsusho Corporation, Japan
- Makarim & Taira - Indonesia
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Energy Link Ltd, New Zealand
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Chamber of Mines of South Africa
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Directorate Of Revenue Intelligence - India
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- GMR Energy Limited - India
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Videocon Industries ltd - India
- Formosa Plastics Group - Taiwan
- Metalloyd Limited - United Kingdom
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Uttam Galva Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Coal Association
- Simpson Spence & Young - Indonesia
- Wilmar Investment Holdings
- Deloitte Consulting - India
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