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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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Saturday, 17 March 12
THE FREIGHT RATES FOR INDONESIA TO INDIA REMAINED FIRM - VISTAAR SINGAPORE
COALspot.com - The market continued to be firm and all segments were up except for Cape Index which was down by 2.46 pct closing at 1,466 points.
...
Saturday, 17 March 12
INDIAN GOVT FINALIZES DRAFT BILL FOR COAL REGULATOR - PTI
The coal sector would soon get a regulator as the government has finalised a draft bill for the purpose, Coal Minister Sriprakash Jaiswal said Wedne ...
Friday, 16 March 12
THE PACIFIC MARKET IS FIRMING UP - FEARNLEYS AS
Handy
A slightly positive trend was seen last week in the Atlantic. Skaw-Passero deliveries fixed around USD 3k to US Gulf, while US Gulf deliveres ...
Thursday, 15 March 12
RAINS AVERAGE SELLING PRICE OF COAL WENT UP BY 22 % IN 2011
COALspot.com - PT. Resource Alam Indonesia Tbk, an Indonesian CCoW (3rd Generation) holder reported Wednesday a 171 percent increase in net profits ...
Thursday, 15 March 12
RESOURCE ALAM FY11 PROFIT UP 171% - INSIDER STORIES
Insider Stories reported that, coal mining company PT Resource Alam Indonesia Tbk (KKGI) reported a 171.16% jump in net profit last year on the back ...
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- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Central Java Power - Indonesia
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- McConnell Dowell - Australia
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- Oldendorff Carriers - Singapore
- Energy Development Corp, Philippines
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- LBH Netherlands Bv - Netherlands
- Mercuria Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Standard Chartered Bank - UAE
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Economic Council, Georgia
- Singapore Mercantile Exchange
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Savvy Resources Ltd - HongKong
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Kideco Jaya Agung - Indonesia
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Parliament of New Zealand
- PTC India Limited - India
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Pendopo Energi Batubara - Indonesia
- Energy Link Ltd, New Zealand
- Kumho Petrochemical, South Korea
- Electricity Authority, New Zealand
- ICICI Bank Limited - India
- Bharathi Cement Corporation - India
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Bhoruka Overseas - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Samtan Co., Ltd - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Tamil Nadu electricity Board
- VISA Power Limited - India
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- Barasentosa Lestari - Indonesia
- Romanian Commodities Exchange
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Billiton Holdings Pty Ltd - Australia
- Ind-Barath Power Infra Limited - India
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- White Energy Company Limited
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Ambuja Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Bhatia International Limited - India
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Petron Corporation, Philippines
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- Global Green Power PLC Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- MS Steel International - UAE
- Timah Investasi Mineral - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- The University of Queensland
- New Zealand Coal & Carbon
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- PowerSource Philippines DevCo
- Mercator Lines Limited - India
- Edison Trading Spa - Italy
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- Africa Commodities Group - South Africa
- Lanco Infratech Ltd - India
- Malabar Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Jorong Barutama Greston.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Mintek Dendrill Indonesia
- Dalmia Cement Bharat India
- Jindal Steel & Power Ltd - India
- Minerals Council of Australia
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- Bhushan Steel Limited - India
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Borneo Indobara - Indonesia
- Eastern Energy - Thailand
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- Aboitiz Power Corporation - Philippines
- Georgia Ports Authority, United States
- Commonwealth Bank - Australia
- Ministry of Finance - Indonesia
- Heidelberg Cement - Germany
- PNOC Exploration Corporation - Philippines
- Alfred C Toepfer International GmbH - Germany
- Indogreen Group - Indonesia
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
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