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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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Sunday, 22 January 12
FREIGHT MARKET DROPPED TO THE LOWEST LEVEL SINCE 2008
COALspot.com - "The markets continued to soften almost reaching 2008 levels breaking the 1,000 point mark", said Capt. Reddy of Vistaar Sh ...
Saturday, 21 January 12
ASIAS PREMIER COMPREHENSIVE OPEN CUT MINING CONFERENCE SCHEDULED FOR FEBRUARY 2012
As the only such conference in the region for miners and service providers, IBC Asia’s Open Cut Mine Planning & Operational Excellence con ...
Saturday, 21 January 12
COAL MARKETS CELEBRATES A DECADE OF BRINGING BUYERS & SELLERS TOGETHER
In 2012, IBC Asia’s premier Coal Markets conference series – Asia’s only globally focused coal import, export and supply chain eve ...
Saturday, 21 January 12
SAMIN TAN COMPLETES BUMI PLC TAKEOVER - INSIDER STORIES
Insider Stories reported that, Indonesian coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN), that is controlled by stellar businessm ...
Thursday, 19 January 12
SOUTHGOBI RESOURCES SELLS MORE THAN FOUR MILLION TONNES OF COAL IN 2011, 58% MORE THAN 2010
COALspot.com - SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) has successfully complets year 2011 on guidance in terms of coal sales and production.
...
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- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Global Coal Blending Company Limited - Australia
- Posco Energy - South Korea
- Cement Manufacturers Association - India
- Standard Chartered Bank - UAE
- Rashtriya Ispat Nigam Limited - India
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Xindia Steels Limited - India
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- Cigading International Bulk Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMC Global Power, Philippines
- Chamber of Mines of South Africa
- Australian Coal Association
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Vedanta Resources Plc - India
- Directorate Of Revenue Intelligence - India
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Energy Development Corp, Philippines
- Thiess Contractors Indonesia
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Bhatia International Limited - India
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Coalindo Energy - Indonesia
- India Bulls Power Limited - India
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Electricity Authority, New Zealand
- VISA Power Limited - India
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- Bangladesh Power Developement Board
- Renaissance Capital - South Africa
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- CNBM International Corporation - China
- New Zealand Coal & Carbon
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- Agrawal Coal Company - India
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- PNOC Exploration Corporation - Philippines
- Tamil Nadu electricity Board
- Malabar Cements Ltd - India
- Rio Tinto Coal - Australia
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- Energy Link Ltd, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- Kaltim Prima Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- GVK Power & Infra Limited - India
- Riau Bara Harum - Indonesia
- Planning Commission, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- Kobexindo Tractors - Indoneisa
- Mercator Lines Limited - India
- Kideco Jaya Agung - Indonesia
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- Indian Energy Exchange, India
- Ministry of Transport, Egypt
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Asmin Koalindo Tuhup - Indonesia
- CIMB Investment Bank - Malaysia
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- Eastern Coal Council - USA
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Straits Asia Resources Limited - Singapore
- Ceylon Electricity Board - Sri Lanka
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- Romanian Commodities Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Indika Energy - Indonesia
- Sakthi Sugars Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Eastern Energy - Thailand
- Sojitz Corporation - Japan
- Sarangani Energy Corporation, Philippines
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- Intertek Mineral Services - Indonesia
- Salva Resources Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- AsiaOL BioFuels Corp., Philippines
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement - Thailand
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Carbofer General Trading SA - India
- Formosa Plastics Group - Taiwan
- Coal and Oil Company - UAE
- Bhushan Steel Limited - India
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- Semirara Mining and Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Manunggal Multi Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Savvy Resources Ltd - HongKong
- Goldman Sachs - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Videocon Industries ltd - India
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- TeaM Sual Corporation - Philippines
- Jindal Steel & Power Ltd - India
- The University of Queensland
- IHS Mccloskey Coal Group - USA
- Chettinad Cement Corporation Ltd - India
- Pendopo Energi Batubara - Indonesia
- Parliament of New Zealand
- Indonesian Coal Mining Association
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