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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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Wednesday, 18 April 12
INDONESIA TO INTRODUCE EXPORT DUTY ON MINERAL ORES BY 6 MAY 2012
The Indonesian government is scheduled to issue regulation on export duty for minerals before May 6, 2012.
According to Bisnis Indonesia, as quot ...
Sunday, 15 April 12
THE SPOT FIXTURE RATES FOR SUPRAMAX IN SE ASIA SAW SOME SOFTENING OF CHARTER RATES - VISTAAR
COALspot.com - The market seem to be holding and except for Supramax and handy size index all other index was up with BDI up by 4.74 pct closing at ...
Friday, 13 April 12
MINERS OPPOSE GOVTS EXPORT TAX PLAN - THE JAKARTA POST
The Jakarta Post reported that, Indonesian mining companies have strongly protested the government’s plan to impose a 25 percent export tax on ...
Friday, 13 April 12
S&P CAUTIONS AGAINST NEW INDONESIAN MINING REGULATIONS - THE JAKARTA GLOBE
The Jakarta Globe reported that, Investors may have expressed concerns about looming new mining regulations, but ratings agency Standard & Poor& ...
Thursday, 12 April 12
FIRST QUARTER OF 2012 SAW AN ADDITIONAL 24.2 MILLION DWT OF DRY BULK CARRIERS ENTERING THE FLEET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The inflow of newbuilt dry bulk vessels was larger than expected in the first quarter of 2012. As much as 24.2 million DWT were added to the fleet. ...
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- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- London Commodity Brokers - England
- Madhucon Powers Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- VISA Power Limited - India
- Planning Commission, India
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Makarim & Taira - Indonesia
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Bulk Trading Sa - Switzerland
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Tata Chemicals Ltd - India
- Australian Coal Association
- GMR Energy Limited - India
- The Treasury - Australian Government
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- Minerals Council of Australia
- Siam City Cement - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- Borneo Indobara - Indonesia
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Sakthi Sugars Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- SN Aboitiz Power Inc, Philippines
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- Eastern Coal Council - USA
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Sical Logistics Limited - India
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- PetroVietnam Power Coal Import and Supply Company
- PNOC Exploration Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- McConnell Dowell - Australia
- PTC India Limited - India
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- Gujarat Sidhee Cement - India
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- MS Steel International - UAE
- Semirara Mining and Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- The University of Queensland
- Cement Manufacturers Association - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Chamber of Mines of South Africa
- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- Wilmar Investment Holdings
- Directorate Of Revenue Intelligence - India
- Directorate General of MIneral and Coal - Indonesia
- Videocon Industries ltd - India
- Indian Energy Exchange, India
- Coalindo Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Binh Thuan Hamico - Vietnam
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Vizag Seaport Private Limited - India
- Karaikal Port Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Parliament of New Zealand
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Attock Cement Pakistan Limited
- Straits Asia Resources Limited - Singapore
- International Coal Ventures Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Bhushan Steel Limited - India
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- Price Waterhouse Coopers - Russia
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Electricity Generating Authority of Thailand
- Baramulti Group, Indonesia
- Port Waratah Coal Services - Australia
- Merrill Lynch Commodities Europe
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Therma Luzon, Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- PowerSource Philippines DevCo
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Toyota Tsusho Corporation, Japan
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Essar Steel Hazira Ltd - India
- Star Paper Mills Limited - India
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- Coal and Oil Company - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Banpu Public Company Limited - Thailand
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Indonesian Coal Mining Association
- Simpson Spence & Young - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- ICICI Bank Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- Meralco Power Generation, Philippines
- Eastern Energy - Thailand
- Wood Mackenzie - Singapore
- Global Coal Blending Company Limited - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Formosa Plastics Group - Taiwan
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
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