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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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Thursday, 05 April 12
COAL EXPORT TAX: MATTER OF CONCERN FOR INDIA - SUNIL K KUMBHAT
COALspot.com - Since the issuance of Indonesian Mining law in 2009, miners have increased their activities in exploring , ex ...
Thursday, 05 April 12
AKR COAL FIRST EXPORT SHIPMENT OF COAL SEABORNE
PT Anugrah Karya Raya (AKR Coal) subsidiary of PT AKR Corporindo Tbk., Indonesia’s leading integrated supply chain solutions provider and larg ...
Thursday, 05 April 12
DRY BULK MARKET STALLS AS TREND IS REVERSED - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has halted its month-long rally, with the BDI (Baltic Dry Index) retreating yesterday for a second consecutive session. Industry ...
Wednesday, 04 April 12
OIL MAY JUMP TO $150PB IF IRAN ATTACKED: EXPERT - KUNA / HELLENIC SHIPPING
Prices of oil will not drop below level of $100 per barrel and may jump to $150 pb in the coming two months, according to the prominent Kuwaiti expe ...
Wednesday, 04 April 12
CHURCHILL MINING TO ACCELERATE INTERNATIONAL ARBITRATION AGAINST INDONESIA
Churchill Mining plc (AIM: CHL), advises that notations on the Indonesian Supreme Court's register of cases shows the Supreme Court has rejected th ...
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- Anglo American - United Kingdom
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Coastal Gujarat Power Limited - India
- Xindia Steels Limited - India
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Thai Mozambique Logistica
- Kideco Jaya Agung - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Planning Commission, India
- Vijayanagar Sugar Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- PTC India Limited - India
- Formosa Plastics Group - Taiwan
- Global Coal Blending Company Limited - Australia
- Kobexindo Tractors - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Altura Mining Limited, Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Indonesian Coal Mining Association
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- Oldendorff Carriers - Singapore
- MS Steel International - UAE
- Salva Resources Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Orica Mining Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Commonwealth Bank - Australia
- ICICI Bank Limited - India
- Rio Tinto Coal - Australia
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- CIMB Investment Bank - Malaysia
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Ambuja Cements Ltd - India
- Posco Energy - South Korea
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- SMC Global Power, Philippines
- Economic Council, Georgia
- Sindya Power Generating Company Private Ltd
- Makarim & Taira - Indonesia
- LBH Netherlands Bv - Netherlands
- Aditya Birla Group - India
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Sojitz Corporation - Japan
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Holcim Trading Pte Ltd - Singapore
- Australian Coal Association
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- IHS Mccloskey Coal Group - USA
- The University of Queensland
- Gujarat Sidhee Cement - India
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bulk Trading Sa - Switzerland
- Videocon Industries ltd - India
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Therma Luzon, Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Antam Resourcindo - Indonesia
- Coal and Oil Company - UAE
- Goldman Sachs - Singapore
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Trasteel International SA, Italy
- Medco Energi Mining Internasional
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- Global Business Power Corporation, Philippines
- Interocean Group of Companies - India
- White Energy Company Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Uttam Galva Steels Limited - India
- Parliament of New Zealand
- PowerSource Philippines DevCo
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Ind-Barath Power Infra Limited - India
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- Leighton Contractors Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Carbofer General Trading SA - India
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Indika Energy - Indonesia
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Heidelberg Cement - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Attock Cement Pakistan Limited
- European Bulk Services B.V. - Netherlands
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Alfred C Toepfer International GmbH - Germany
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Energy Link Ltd, New Zealand
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- Siam City Cement PLC, Thailand
- PetroVietnam Power Coal Import and Supply Company
- Intertek Mineral Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- ASAPP Information Group - India
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- India Bulls Power Limited - India
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- Siam City Cement - Thailand
- VISA Power Limited - India
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- Thiess Contractors Indonesia
- Rashtriya Ispat Nigam Limited - India
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- Meralco Power Generation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Petron Corporation, Philippines
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- Mercator Lines Limited - India
- McConnell Dowell - Australia
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Generating Authority of Thailand
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