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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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Thursday, 22 December 11
DRY BULK MARKET KEEPS LOSING TRACTION AHEAD OF HOLIDAY SEASON - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept retreating in the middle of the week, as charterers seem to be looking towards the holiday season and the start of the new ye ...
Tuesday, 20 December 11
THE COAL IMPORT INTO CHINA WAS QUIETER AS COAL STOCKS WERE AT HIGH LEVELS - BRS
The BDI ended the week at 1888 points (-1.8%), the BCI corrected to 3572 (-3.4%), the BPI was up at 1,775 (+3.6%), the BSI dropped to 1193 (-3.0%) a ...
Tuesday, 20 December 11
INDIA IMPORTS 66.41 PERCENT MORE COAL FROM INDONESIA LAST MONTH - SOURCES
COALspot.com: Indonesia, the world largest coal exporter, shipped 33.476* mln mt of coal in November, which is slightly higher than its Octobe ...
Monday, 19 December 11
KOPEX COMMITS ADDITIONAL ONE MILLION DOLLAR FOR PT TRANSCOAL MINERGY
COALspot.com - Mining contractor Kopex has agreed to extend a further US$1 million to finance the remainder of the expanded drill program at PT Tran ...
Monday, 19 December 11
PLN WILL NO LONGER BUY COAL FROM TRADERS
COALspot.com - Indonesia's state electricity company PT Perusahaan Listrik Negara will no longer allow traders to become their suppliers, said, its ...
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- Ind-Barath Power Infra Limited - India
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Manunggal Multi Energi - Indonesia
- Iligan Light & Power Inc, Philippines
- Eastern Coal Council - USA
- The Treasury - Australian Government
- PetroVietnam Power Coal Import and Supply Company
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhushan Steel Limited - India
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Miang Besar Coal Terminal - Indonesia
- Independent Power Producers Association of India
- Minerals Council of Australia
- Electricity Authority, New Zealand
- Samtan Co., Ltd - South Korea
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Interocean Group of Companies - India
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- Economic Council, Georgia
- The University of Queensland
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Posco Energy - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- TeaM Sual Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Antam Resourcindo - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- Carbofer General Trading SA - India
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Orica Mining Services - Indonesia
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Savvy Resources Ltd - HongKong
- Holcim Trading Pte Ltd - Singapore
- Electricity Generating Authority of Thailand
- Borneo Indobara - Indonesia
- Aditya Birla Group - India
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Australian Coal Association
- Mjunction Services Limited - India
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Parry Sugars Refinery, India
- Siam City Cement - Thailand
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- Indogreen Group - Indonesia
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- Coalindo Energy - Indonesia
- Latin American Coal - Colombia
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Gujarat Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- Central Electricity Authority - India
- Orica Australia Pty. Ltd.
- Wood Mackenzie - Singapore
- Heidelberg Cement - Germany
- Aboitiz Power Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Port Waratah Coal Services - Australia
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Grasim Industreis Ltd - India
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- Merrill Lynch Commodities Europe
- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Cement Manufacturers Association - India
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Kohat Cement Company Ltd. - Pakistan
- South Luzon Thermal Energy Corporation
- Parliament of New Zealand
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- Medco Energi Mining Internasional
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- White Energy Company Limited
- Sindya Power Generating Company Private Ltd
- Edison Trading Spa - Italy
- Deloitte Consulting - India
- Intertek Mineral Services - Indonesia
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- The State Trading Corporation of India Ltd
- Xindia Steels Limited - India
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- GMR Energy Limited - India
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Jindal Steel & Power Ltd - India
- ASAPP Information Group - India
- McConnell Dowell - Australia
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- Globalindo Alam Lestari - Indonesia
- Malabar Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Trasteel International SA, Italy
- Indo Tambangraya Megah - Indonesia
- Dalmia Cement Bharat India
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Bayan Resources Tbk. - Indonesia
- Straits Asia Resources Limited - Singapore
- PTC India Limited - India
- CIMB Investment Bank - Malaysia
- Metalloyd Limited - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- Standard Chartered Bank - UAE
- Sinarmas Energy and Mining - Indonesia
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Kumho Petrochemical, South Korea
- Romanian Commodities Exchange
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Mercuria Energy - Indonesia
- Africa Commodities Group - South Africa
- Thiess Contractors Indonesia
- VISA Power Limited - India
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Renaissance Capital - South Africa
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Singapore Mercantile Exchange
- Uttam Galva Steels Limited - India
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