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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, 29 March 12
DRY BULK EDGED FURTHER UP, ON HEALTHY DEMAND FOR MOST SHIP TYPES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With capesize vessels finally reappearing in demand, the dry bulk market had an easier task of rising yesterday, as the BDI (Baltic Dry Index) reach ...
Thursday, 29 March 12
ADARO FY11 NET INCOME JUMPS 124% - INSIDER STORIES
Insider Stories reported that, PT Adaro Energy Tbk (ADRO) today announced a 124% jump in net income to US$552 million last year or US$0.017 a share. ...
Wednesday, 28 March 12
CUESTA HAS RECEIVED APPLICATIONS AND FIRM BIDS IN EXCESS OF $9 MILLION FOR THE COMPANYS IPO
COALspot.com - The Directors of Cuesta Coal Limited (ASX:CQC) have announced that today it has received applications and firm bids in excess of $9 m ...
Wednesday, 28 March 12
ORPHEUS ENERGY TO COMMENCE JORC DRILLING AT ADK PROJECT
COALspot.com - Indonesian coal explorer and producer, Orpheus Energy (ASX:OEG), have today announced that the company is about to commence a drillin ...
Tuesday, 27 March 12
DRY BULK MARKET KEEP RISING FOLLOWING THE SAME TREND OF LAST WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept its upward momentum this week, on the same reasons of those last week. That is, the smaller ship types are still on the ris ...
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Showing 4786 to 4790 news of total 6871 |
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- Videocon Industries ltd - India
- Central Java Power - Indonesia
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Singapore Mercantile Exchange
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- McConnell Dowell - Australia
- Sarangani Energy Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Africa Commodities Group - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Thiess Contractors Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- GAC Shipping (India) Pvt Ltd
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Kapuas Tunggal Persada - Indonesia
- Kideco Jaya Agung - Indonesia
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- Cement Manufacturers Association - India
- Tata Chemicals Ltd - India
- Independent Power Producers Association of India
- Tamil Nadu electricity Board
- Price Waterhouse Coopers - Russia
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- CNBM International Corporation - China
- Kobexindo Tractors - Indoneisa
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Billiton Holdings Pty Ltd - Australia
- Neyveli Lignite Corporation Ltd, - India
- Orica Mining Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- ICICI Bank Limited - India
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- CIMB Investment Bank - Malaysia
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Commonwealth Bank - Australia
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Baiduri Energy - Indonesia
- Grasim Industreis Ltd - India
- Dalmia Cement Bharat India
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Vizag Seaport Private Limited - India
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- The University of Queensland
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- Gujarat Sidhee Cement - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Australian Commodity Traders Exchange
- Indo Tambangraya Megah - Indonesia
- Posco Energy - South Korea
- Global Green Power PLC Corporation, Philippines
- Medco Energi Mining Internasional
- Bukit Makmur.PT - Indonesia
- Siam City Cement PLC, Thailand
- ASAPP Information Group - India
- Interocean Group of Companies - India
- Global Business Power Corporation, Philippines
- Petron Corporation, Philippines
- Central Electricity Authority - India
- Attock Cement Pakistan Limited
- Eastern Energy - Thailand
- Cigading International Bulk Terminal - Indonesia
- Siam City Cement - Thailand
- Deloitte Consulting - India
- Australian Coal Association
- Petrochimia International Co. Ltd.- Taiwan
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Star Paper Mills Limited - India
- Lanco Infratech Ltd - India
- Formosa Plastics Group - Taiwan
- Samtan Co., Ltd - South Korea
- Sojitz Corporation - Japan
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- PowerSource Philippines DevCo
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Power Finance Corporation Ltd., India
- New Zealand Coal & Carbon
- Baramulti Group, Indonesia
- IEA Clean Coal Centre - UK
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Krishnapatnam Port Company Ltd. - India
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- Coal and Oil Company - UAE
- Romanian Commodities Exchange
- Bhoruka Overseas - Indonesia
- Oldendorff Carriers - Singapore
- Meenaskhi Energy Private Limited - India
- Ministry of Mines - Canada
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- Wood Mackenzie - Singapore
- Globalindo Alam Lestari - Indonesia
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- Indogreen Group - Indonesia
- Chamber of Mines of South Africa
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Latin American Coal - Colombia
- Economic Council, Georgia
- Energy Development Corp, Philippines
- Planning Commission, India
- Bahari Cakrawala Sebuku - Indonesia
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Merrill Lynch Commodities Europe
- Jindal Steel & Power Ltd - India
- Ambuja Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Standard Chartered Bank - UAE
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
- Larsen & Toubro Limited - India
- Edison Trading Spa - Italy
- Madhucon Powers Ltd - India
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Mintek Dendrill Indonesia
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