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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, 07 March 12
3RD MOZAMBIQUE COAL CONFERENCE
3rd Mozambique Coal Conference
2-4 July 2012 | Joaquim Chissano International Conference Centre , Maputo, Mozambique
http://www.immevents.com/mo ...
Wednesday, 07 March 12
DRY BULK MARKET KEEPS UP TIMID REBOUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its rising momentum yesterday, rising for the eighth straight session, on the back of renewed demand for smaller bulk c ...
Wednesday, 07 March 12
BUKIT ASAM EYES 39% RISE IN COAL SALES - INSIDER STORIES
Insider Stories reported that, PT Bukit Asam Tbk is scouting a 39% increase in coal sales volume to 18.66 million tons this year from last year with ...
Wednesday, 07 March 12
PETROSEA SEALS US$188 MIO CONTRACT - INSIDER STORIES
Insider Stories reported that, coal mining contractor PT Petrosea Tbk has secured a US$188 million additional contract from its affiliated firm PT S ...
Monday, 05 March 12
SOUTHGOBI ANNOUNCES AGREEMENT TO SELL ITS THERMAL COAL TSAGAAN TOLGOI DEPOSIT FOR US$ 30 MILLION
SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) announced today an agreement to sell its thermal coal property, the Tsagaan Tolgoi Deposit to Modun Re ...
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- Grasim Industreis Ltd - India
- Maheswari Brothers Coal Limited - India
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
- Coal and Oil Company - UAE
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Price Waterhouse Coopers - Russia
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- SMG Consultants - Indonesia
- TeaM Sual Corporation - Philippines
- Tata Chemicals Ltd - India
- The State Trading Corporation of India Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petrochimia International Co. Ltd.- Taiwan
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Ind-Barath Power Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Baramulti Group, Indonesia
- Intertek Mineral Services - Indonesia
- Oldendorff Carriers - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Bangladesh Power Developement Board
- Bahari Cakrawala Sebuku - Indonesia
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Mintek Dendrill Indonesia
- Kartika Selabumi Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Leighton Contractors Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Thiess Contractors Indonesia
- Antam Resourcindo - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Kohat Cement Company Ltd. - Pakistan
- European Bulk Services B.V. - Netherlands
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Heidelberg Cement - Germany
- Gujarat Sidhee Cement - India
- Kobexindo Tractors - Indoneisa
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- The University of Queensland
- Singapore Mercantile Exchange
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Romanian Commodities Exchange
- Mercuria Energy - Indonesia
- Parliament of New Zealand
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- PNOC Exploration Corporation - Philippines
- Ambuja Cements Ltd - India
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- Bukit Baiduri Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Savvy Resources Ltd - HongKong
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Makarim & Taira - Indonesia
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- PetroVietnam Power Coal Import and Supply Company
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Semirara Mining and Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- The Treasury - Australian Government
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Attock Cement Pakistan Limited
- Samtan Co., Ltd - South Korea
- Bharathi Cement Corporation - India
- Simpson Spence & Young - Indonesia
- Petron Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- CNBM International Corporation - China
- Kaltim Prima Coal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cigading International Bulk Terminal - Indonesia
- Larsen & Toubro Limited - India
- MS Steel International - UAE
- Trasteel International SA, Italy
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Standard Chartered Bank - UAE
- Banpu Public Company Limited - Thailand
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Minerals Council of Australia
- Cement Manufacturers Association - India
- Electricity Authority, New Zealand
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Madhucon Powers Ltd - India
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Coalindo Energy - Indonesia
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Barasentosa Lestari - Indonesia
- Australian Coal Association
- Commonwealth Bank - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- OPG Power Generation Pvt Ltd - India
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Videocon Industries ltd - India
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Planning Commission, India
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- Independent Power Producers Association of India
- Pendopo Energi Batubara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- New Zealand Coal & Carbon
- London Commodity Brokers - England
- GVK Power & Infra Limited - India
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Siam City Cement - Thailand
- GMR Energy Limited - India
- Central Electricity Authority - India
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
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