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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, 27 December 11
MINERS MAKE CASE FOR RESUMING CONTRACT NEGOTIATIONS - THE JAKARTA POST
The Jakarta Post reported that, problems with the renegotiation of mining contracts in the country are far from over, as agreements on several cruci ...
Tuesday, 27 December 11
COAL SHIPMENT OF TIANJIN PORT REACHED 6.72 MLN TONNES IN NOVEMBER - STEEL HOME / HELLENIC SHIPPING
Tianjin port shipped 6.72 million tonnes of coal in November, decreasing 600,000 tonnes versus 7.32 million tonnes in October, while up 21.09% or 1. ...
Tuesday, 27 December 11
NEW CLAUSE PUBLISHED FOR SLOW STEAMING - BIMCO
Many owners and operators faced with high bunker prices are considering implementing slow steaming regimes to save fuel and to assist with capacity ...
Monday, 26 December 11
NEW EXPORT TAX PLAN GREETED WITH PRAISE AND CRITICISM - THE JAKARTA POST
The Jakarta Post, one of the Indonesia's leading english news paper reported that, both praise and criticism showered the government’s plan t ...
Sunday, 25 December 11
THERMAL COAL PRICES GAINED UP TO 4.32 PERCENT
COALspot.com - globalCOAL index gained 4.32 percent to US$106.36 per ton in RBCT, benchmark for South Asia and West Europe markets, for the week end ...
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Showing 4911 to 4915 news of total 6871 |
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- Tamil Nadu electricity Board
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Borneo Indobara - Indonesia
- Jindal Steel & Power Ltd - India
- Mjunction Services Limited - India
- Romanian Commodities Exchange
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Dalmia Cement Bharat India
- Toyota Tsusho Corporation, Japan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- PTC India Limited - India
- Ind-Barath Power Infra Limited - India
- London Commodity Brokers - England
- Samtan Co., Ltd - South Korea
- Medco Energi Mining Internasional
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Wood Mackenzie - Singapore
- Global Coal Blending Company Limited - Australia
- Coalindo Energy - Indonesia
- White Energy Company Limited
- Intertek Mineral Services - Indonesia
- Salva Resources Pvt Ltd - India
- Baramulti Group, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Sindya Power Generating Company Private Ltd
- India Bulls Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Bhushan Steel Limited - India
- Metalloyd Limited - United Kingdom
- Australian Coal Association
- Goldman Sachs - Singapore
- Interocean Group of Companies - India
- Kideco Jaya Agung - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Agrawal Coal Company - India
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- Essar Steel Hazira Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Indonesian Coal Mining Association
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- SMG Consultants - Indonesia
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- Wilmar Investment Holdings
- Gujarat Mineral Development Corp Ltd - India
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- ICICI Bank Limited - India
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Cement Manufacturers Association - India
- Renaissance Capital - South Africa
- Central Java Power - Indonesia
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- Heidelberg Cement - Germany
- Banpu Public Company Limited - Thailand
- Krishnapatnam Port Company Ltd. - India
- Eastern Energy - Thailand
- Power Finance Corporation Ltd., India
- Cigading International Bulk Terminal - Indonesia
- Orica Mining Services - Indonesia
- The University of Queensland
- Maheswari Brothers Coal Limited - India
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ASAPP Information Group - India
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- Port Waratah Coal Services - Australia
- Mintek Dendrill Indonesia
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- Bukit Baiduri Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Indo Tambangraya Megah - Indonesia
- Antam Resourcindo - Indonesia
- Planning Commission, India
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- Ceylon Electricity Board - Sri Lanka
- Videocon Industries ltd - India
- Kobexindo Tractors - Indoneisa
- Iligan Light & Power Inc, Philippines
- Madhucon Powers Ltd - India
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The State Trading Corporation of India Ltd
- PetroVietnam Power Coal Import and Supply Company
- Indika Energy - Indonesia
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- PNOC Exploration Corporation - Philippines
- Malabar Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thai Mozambique Logistica
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Central Electricity Authority - India
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- SMC Global Power, Philippines
- Thiess Contractors Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Globalindo Alam Lestari - Indonesia
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- Indogreen Group - Indonesia
- Georgia Ports Authority, United States
- TeaM Sual Corporation - Philippines
- MS Steel International - UAE
- Singapore Mercantile Exchange
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- GAC Shipping (India) Pvt Ltd
- Indian Oil Corporation Limited
- Sojitz Corporation - Japan
- Semirara Mining Corp, Philippines
- McConnell Dowell - Australia
- Chamber of Mines of South Africa
- Orica Australia Pty. Ltd.
- Economic Council, Georgia
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kepco SPC Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Parliament of New Zealand
- Billiton Holdings Pty Ltd - Australia
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