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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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Tuesday, 21 February 12
THREAT ISSUED ON MINERAL FIRMS AS GOVT PLANS EXPORT BAN - THE JAKARTA POST
The Jakarta Post, one of the leading english news papaer in Indonesia reported that, the government has given mineral producers three months to subm ...
Monday, 20 February 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU
The dry market experienced one more disappointing week with tonnage oversupply and limited cargo demand that pushes earnings for shipping players to ...
Monday, 20 February 12
JATENERGY SECURES FIRST 8000-TONNE COAL SALES CONTRACT FOR JONGKANG MINES
8000-tonne contract with Singaporean buyer signed for March delivery
50% down payment due in five working days
Production continues at both Jongka ...
Monday, 20 February 12
DIAN SWASTATIKA ACQUIRES ANDALAN LESTARI - INSIDER STORIES
Insider Stories reported that, PT Dian Swastatika Sentosa Tbk (DSSA), controlled by Fuganto Widjaja, son of Indra Widjaja, reported a 99.83% takeove ...
Monday, 20 February 12
COAL BOOM AND ENVIRONMENTAL CONCERN - SUNIL K KUMBHAT
COALspot.com - The dawn of the 21st century has seen a shift in the world's commercial balance of power, with the dominance of the US, Europe and J ...
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- Ambuja Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Business Power Corporation, Philippines
- Sojitz Corporation - Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Edison Trading Spa - Italy
- Borneo Indobara - Indonesia
- CNBM International Corporation - China
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- Neyveli Lignite Corporation Ltd, - India
- ASAPP Information Group - India
- Binh Thuan Hamico - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- CIMB Investment Bank - Malaysia
- Power Finance Corporation Ltd., India
- Renaissance Capital - South Africa
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Price Waterhouse Coopers - Russia
- Interocean Group of Companies - India
- Gujarat Sidhee Cement - India
- SMG Consultants - Indonesia
- Indonesian Coal Mining Association
- South Luzon Thermal Energy Corporation
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- Economic Council, Georgia
- Bharathi Cement Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Trasteel International SA, Italy
- PowerSource Philippines DevCo
- Kohat Cement Company Ltd. - Pakistan
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Authority, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- Larsen & Toubro Limited - India
- Energy Development Corp, Philippines
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Jaiprakash Power Ventures ltd
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- ICICI Bank Limited - India
- Attock Cement Pakistan Limited
- Bhushan Steel Limited - India
- VISA Power Limited - India
- Sakthi Sugars Limited - India
- IEA Clean Coal Centre - UK
- Africa Commodities Group - South Africa
- Kepco SPC Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Indogreen Group - Indonesia
- Savvy Resources Ltd - HongKong
- Thiess Contractors Indonesia
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Baramulti Group, Indonesia
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- McConnell Dowell - Australia
- Agrawal Coal Company - India
- The University of Queensland
- Jindal Steel & Power Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Indian Oil Corporation Limited
- Ministry of Finance - Indonesia
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Thai Mozambique Logistica
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- Madhucon Powers Ltd - India
- Sree Jayajothi Cements Limited - India
- Krishnapatnam Port Company Ltd. - India
- Leighton Contractors Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Port Waratah Coal Services - Australia
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- The State Trading Corporation of India Ltd
- Parry Sugars Refinery, India
- India Bulls Power Limited - India
- Siam City Cement - Thailand
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Central Java Power - Indonesia
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- Ministry of Mines - Canada
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Ministry of Transport, Egypt
- San Jose City I Power Corp, Philippines
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Petrochimia International Co. Ltd.- Taiwan
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- Mjunction Services Limited - India
- Lanco Infratech Ltd - India
- Maheswari Brothers Coal Limited - India
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- Essar Steel Hazira Ltd - India
- Indian Energy Exchange, India
- Siam City Cement PLC, Thailand
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- The Treasury - Australian Government
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- Aboitiz Power Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Australian Coal Association
- SMC Global Power, Philippines
- Marubeni Corporation - India
- Dalmia Cement Bharat India
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PNOC Exploration Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- New Zealand Coal & Carbon
- Anglo American - United Kingdom
- Minerals Council of Australia
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