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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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Wednesday, 14 December 11
MINER TOBA BARA SEJAHTRA PLANS IPO IN 1ST HALF OF 2012 - THE JAKARTA GLOBE
The Jakarta Globe reported that, Coal miner Toba Bara Sejahtra is aiming high next year, hoping to capitalize on renewed bullish sentiment in the lo ...
Wednesday, 14 December 11
TIMAH PLANS TO BOOST ITS COAL PRODUCTION TO TWO MILLION TONS PER ANNUM - SOURCES
COALspot.com - Timah plans to boost its coal production to two million tons per annum. The company also expects to acquire coal concession with mini ...
Wednesday, 14 December 11
BORNEO RESOURCE INVESTMENTS LTD. FINALIZES ACQUISITION OF INTEGRA PRIMA
COALspot.com - Borneo Resource Investments Ltd., announced that it has finalized the acquisition of an additional 1,300 hectare coal mining concessi ...
Tuesday, 13 December 11
BERAU COAL SCOUTS US$1.61 BIO SALES - INSIDER STORIES
Insider Stories reported that, coal mining company PT Berau Coal Energy Tbk (BRAU), that is 85% owned by London-listed company Bumi Plc, estimates a ...
Tuesday, 13 December 11
CAPESIZES AND PANAMAXES LEAD DRY BULK MARKET HIGHER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched closer to the 2,000 mark on Monday, with Panamaxes rebounding firmly and leading the gains. As a result, the industry&rsq ...
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- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Binh Thuan Hamico - Vietnam
- Coastal Gujarat Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- New Zealand Coal & Carbon
- Sarangani Energy Corporation, Philippines
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Kideco Jaya Agung - Indonesia
- SMG Consultants - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Finance - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Gujarat Sidhee Cement - India
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Videocon Industries ltd - India
- Manunggal Multi Energi - Indonesia
- Orica Australia Pty. Ltd.
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Mercator Lines Limited - India
- Coalindo Energy - Indonesia
- Sojitz Corporation - Japan
- Directorate Of Revenue Intelligence - India
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wood Mackenzie - Singapore
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Banpu Public Company Limited - Thailand
- Oldendorff Carriers - Singapore
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- ICICI Bank Limited - India
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Renaissance Capital - South Africa
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- GMR Energy Limited - India
- Bharathi Cement Corporation - India
- Ministry of Mines - Canada
- Aboitiz Power Corporation - Philippines
- SMC Global Power, Philippines
- Trasteel International SA, Italy
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Coal Council - USA
- Commonwealth Bank - Australia
- Bukit Makmur.PT - Indonesia
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Savvy Resources Ltd - HongKong
- Vijayanagar Sugar Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Edison Trading Spa - Italy
- Krishnapatnam Port Company Ltd. - India
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Metalloyd Limited - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- Posco Energy - South Korea
- Thai Mozambique Logistica
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- Kumho Petrochemical, South Korea
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Singapore Mercantile Exchange
- Cement Manufacturers Association - India
- Mintek Dendrill Indonesia
- Kapuas Tunggal Persada - Indonesia
- Parliament of New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Bangladesh Power Developement Board
- Bhushan Steel Limited - India
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Formosa Plastics Group - Taiwan
- Central Electricity Authority - India
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Sindya Power Generating Company Private Ltd
- Jindal Steel & Power Ltd - India
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- Anglo American - United Kingdom
- Eastern Energy - Thailand
- Star Paper Mills Limited - India
- SN Aboitiz Power Inc, Philippines
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Minerals Council of Australia
- Global Coal Blending Company Limited - Australia
- The State Trading Corporation of India Ltd
- Energy Link Ltd, New Zealand
- Ind-Barath Power Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- IEA Clean Coal Centre - UK
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- Bhoruka Overseas - Indonesia
- Parry Sugars Refinery, India
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Makarim & Taira - Indonesia
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- Chamber of Mines of South Africa
- ASAPP Information Group - India
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- Bulk Trading Sa - Switzerland
- Pendopo Energi Batubara - Indonesia
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Vedanta Resources Plc - India
- Intertek Mineral Services - Indonesia
- Marubeni Corporation - India
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