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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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- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Makarim & Taira - Indonesia
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
- Binh Thuan Hamico - Vietnam
- Aboitiz Power Corporation - Philippines
- Medco Energi Mining Internasional
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ceylon Electricity Board - Sri Lanka
- Leighton Contractors Pty Ltd - Australia
- ASAPP Information Group - India
- Altura Mining Limited, Indonesia
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- VISA Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Kalimantan Lumbung Energi - Indonesia
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Bhatia International Limited - India
- Siam City Cement PLC, Thailand
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Africa Commodities Group - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Anglo American - United Kingdom
- Therma Luzon, Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Carbofer General Trading SA - India
- Videocon Industries ltd - India
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Ambuja Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Deloitte Consulting - India
- Eastern Energy - Thailand
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Simpson Spence & Young - Indonesia
- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- MS Steel International - UAE
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- Thai Mozambique Logistica
- PNOC Exploration Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- PowerSource Philippines DevCo
- India Bulls Power Limited - India
- Coal and Oil Company - UAE
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Ministry of Transport, Egypt
- The State Trading Corporation of India Ltd
- Kartika Selabumi Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Holcim Trading Pte Ltd - Singapore
- Indika Energy - Indonesia
- Australian Commodity Traders Exchange
- Mintek Dendrill Indonesia
- Interocean Group of Companies - India
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- PTC India Limited - India
- Parliament of New Zealand
- Eastern Coal Council - USA
- Riau Bara Harum - Indonesia
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Chettinad Cement Corporation Ltd - India
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Port Waratah Coal Services - Australia
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Semirara Mining and Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Dalmia Cement Bharat India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- Global Business Power Corporation, Philippines
- SMG Consultants - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Intertek Mineral Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Billiton Holdings Pty Ltd - Australia
- GVK Power & Infra Limited - India
- Mercator Lines Limited - India
- Jindal Steel & Power Ltd - India
- Romanian Commodities Exchange
- Posco Energy - South Korea
- Australian Coal Association
- Antam Resourcindo - Indonesia
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- IEA Clean Coal Centre - UK
- Iligan Light & Power Inc, Philippines
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Latin American Coal - Colombia
- Parry Sugars Refinery, India
- GN Power Mariveles Coal Plant, Philippines
- Indonesian Coal Mining Association
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Rio Tinto Coal - Australia
- Xindia Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Bayan Resources Tbk. - Indonesia
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