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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, 07 January 12
COAL MARKETS SEE FALLING SPOT PRICES
COALspot.com – World’s thermal coal spot prices have slipped this week..
globalCOAL index in Newcastle Port, benchmark for Asian mark ...
Friday, 06 January 12
COAL INDIA LINKED COAL PRICES WITH INTERNATIONAL COAL PRICES
COALspot.com - Consumers of indigenous coal in India to pay International prices in the future. Coal India has recently moved from UHV pricing mecha ...
Friday, 06 January 12
CLARIDEN GLOBAL BRINGS YOU INDONESIA MINING 2012
Capitalizing Business & Investment Opportunities in an Uncertain Market.Press Release - Clariden Global brings you Indonesia Mining 2012, the dedi ...
Friday, 06 January 12
THE PANAMAX MARKET EXPERIENCED A SLOW START TO 2012 - FEARNLEYS AS
Handy
As usual after a holiday owners and charterers both try to get a feel of the market. An Armada of Supras were talking to ballast towards USG, ...
Thursday, 05 January 12
DRY BULK MARKET TAKES A PLUNGE OF LOW ACTIVITY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As was widely expected the first days of the new year are characterized by significantly low chartering across the board of the dry bulk market, pus ...
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- TNB Fuel Sdn Bhd - Malaysia
- Kepco SPC Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Globalindo Alam Lestari - Indonesia
- Central Electricity Authority - India
- Orica Australia Pty. Ltd.
- Asmin Koalindo Tuhup - Indonesia
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Xindia Steels Limited - India
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Uttam Galva Steels Limited - India
- Energy Development Corp, Philippines
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Price Waterhouse Coopers - Russia
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- San Jose City I Power Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Australian Commodity Traders Exchange
- Chettinad Cement Corporation Ltd - India
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- Latin American Coal - Colombia
- Ministry of Finance - Indonesia
- Rio Tinto Coal - Australia
- Intertek Mineral Services - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Binh Thuan Hamico - Vietnam
- PTC India Limited - India
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Indo Tambangraya Megah - Indonesia
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Baramulti Group, Indonesia
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Siam City Cement PLC, Thailand
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- Kumho Petrochemical, South Korea
- Sojitz Corporation - Japan
- Makarim & Taira - Indonesia
- Marubeni Corporation - India
- Thai Mozambique Logistica
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- Power Finance Corporation Ltd., India
- White Energy Company Limited
- Mercator Lines Limited - India
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Alfred C Toepfer International GmbH - Germany
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Ceylon Electricity Board - Sri Lanka
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Straits Asia Resources Limited - Singapore
- The State Trading Corporation of India Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Coastal Gujarat Power Limited - India
- Kobexindo Tractors - Indoneisa
- Eastern Energy - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Planning Commission, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- The Treasury - Australian Government
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- CNBM International Corporation - China
- Sarangani Energy Corporation, Philippines
- Madhucon Powers Ltd - India
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Australian Coal Association
- Tata Chemicals Ltd - India
- Aboitiz Power Corporation - Philippines
- Ministry of Mines - Canada
- Essar Steel Hazira Ltd - India
- Agrawal Coal Company - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- Semirara Mining Corp, Philippines
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- New Zealand Coal & Carbon
- Tamil Nadu electricity Board
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Lanco Infratech Ltd - India
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Africa Commodities Group - South Africa
- Heidelberg Cement - Germany
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Therma Luzon, Inc, Philippines
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- Indonesian Coal Mining Association
- Directorate General of MIneral and Coal - Indonesia
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Iligan Light & Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- Sindya Power Generating Company Private Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Savvy Resources Ltd - HongKong
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Economic Council, Georgia
- Bahari Cakrawala Sebuku - Indonesia
- PNOC Exploration Corporation - Philippines
- Petron Corporation, Philippines
- Coalindo Energy - Indonesia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Holcim Trading Pte Ltd - Singapore
- Larsen & Toubro Limited - India
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