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Friday, 29 June 12
DRY BULK SHIP OWNERS DOING THEIR MATHS BEFORE PLACING NEWBUILDING ORDERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 With oversupply having plagued the dry bulk shipping fleet since the end of 2011, it’s become ever so evident that placing a newbuilding order is a hard decision nowadays for most ship owners, despite the fact that newbuilding prices are close to their lowest price levels in two decades. Despite this incentive, ship owners have to consider additional factors, such as financing, market conditions and of course freight rates. If they are low, then it’s hard to consider a newbuilding order, since the return on investment will most likely be low, making it more difficult to secure and ultimately paying off a bank loan to finance the newbuilding investment.
In a recent report, Intermodal, aknowledging the fact that timing is crucial in a strongly cyclical and capital intensive market, such as international shipping, examined the case of Kamsarmax dry bulk carriers. In his report, Intermodal’s Panos Tsilingiris, said that for the purpose of the exercise, Intemodal assumed that contracting takes place today and delivery is scheduled after about two years. Furthermore, “the vessel is operated is operated by the buyer for 10 full years (including her second SS/DD) and is sold thereafter. The residual sale price is the resale price of the vessel depreciated over 10 years at 5% p.a. We accept newbuilding prices of $ 26.5 million basis 30/70 payment terms plus $ 500k pre-delivery expenses. With regards to financing, we suppose 60% loan with a fixed interest rate of 5% and 25% balloon, and arrangement/commitment costs of approximately 1.5% of the loan facility. The remaining 40% is financed via equity at 12% p.a. The Opex costs begin with xs $ 6,000/day and are subject to a 2.5% annual appreciation, while we also factor in indicative dry-docking costs. Assuming 365 OPEX days and 350 TC days, the resulting break-even TC rate for the 10-year period is $ 15,959/day” said Tsilingiris.
He added that “at first sight, the above figure may not enthuse speculators when compared to the current freight market in which Kamsarmax bulkers struggle to achieve double-digit yearly TC rates. However, the seasoned shipowner will recognize that this figure is well below the 20-year average, the 10-year average, and the 10-year average after excluding the 2007-2008 bubble years.
Further to the attractive break-even point, the driving force for newbuildings is the high price of bunkers; the ‘eco-type’ designs with their promised (yet generally unproven so far) increased energy efficiency appear tempting to both owners and charterers. Owners might prefer newbuildings over second-hand tonnage since they do not expect a radical peak-up in the dry bulk freight markets during 2012-2013. Moreover, the long operating life of a newbuilding provides some encouragement, if not statistical certainty, that the market will peak up at least once during the vessel’s operating life. There is hope that due to the significantly slower recent contracting of bulker newbuildings and assuming no collapse in demand, the market will return to healthy levels within 2015. Of course, massive orders, something not expected in the short-term given the current market, the tight financing and the global economic uncertainty, would negate any benefit from the lower break-even point of such investments” he said.
As a result, the report from Intermodal concludes that “while the exact figures depend upon the idiosyncrasies of the specific project and ship-owner as well as market conditions (LIBOR, actual TC rates, residual value, etc.), we have shown how the low entrance point for newbuildings renders attractive the break-even rate of such investments. In conclusion, as low shipbuilding prices gradually concur with the maturing of eco-type designs, newbuilding investments appear increasingly attractive” it said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Sunday, 01 July 12
DSP OF SGX ASIACLEAR OTC COAL SWAP'S THIS WEEKS MOVEMENTS SLIGHTLY POSITIVE
COALspot.com - SGX AsiaClear OTC Coal Swaps have recovered slightly this week and Q4 deliveries are also showing positive direction.
SGX’s ...
Saturday, 30 June 12
THE FREIGHT RATES ARE EXPECTED TO BE STEADY TO FIRM NEXT WEEK - VISTAAR SINGAPORE
COALspot.com – The BDI was up by 2.66 pct (up by 26 points) closing at 1,004 points crossing the 1000 point barrier this week.
The c ...
Friday, 29 June 12
INDONESIAN PRODUCERS ARE PLANNING TO CUT PRODUCTION IF COAL PRICES FALL FURTHER
COALspot.com: Indonesia, the world largest multi grade coal exporter, shipped 31.54* million tons of coal in May 2012, compared to 31.86* mill ...
Thursday, 28 June 12
DRY BULK MARKET HIGHER ON CAPESIZE OPTIMISM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched a bit higher yesterday, as the BDI (Baltic Dry Index) ended up by 0.71% to 988 points. Most ship types were up, with the ...
Wednesday, 27 June 12
DIRECTORATE GENERAL OF MINERAL AND COAL OF INDONESIA INTRODUCES ON-LINE SYSTEM FOR MINING PRODUCTS EXPORT APPROVAL
COALspot.com - Directorate General of Mineral and Coal of Indonesia has released "Clear and Clean" certificate for another 33 coal miners ...
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- LBH Netherlands Bv - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- Antam Resourcindo - Indonesia
- Planning Commission, India
- Coastal Gujarat Power Limited - India
- Australian Coal Association
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Georgia Ports Authority, United States
- Price Waterhouse Coopers - Russia
- Orica Australia Pty. Ltd.
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- Globalindo Alam Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Barasentosa Lestari - Indonesia
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Link Ltd, New Zealand
- White Energy Company Limited
- Dalmia Cement Bharat India
- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- GN Power Mariveles Coal Plant, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Edison Trading Spa - Italy
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Xindia Steels Limited - India
- Port Waratah Coal Services - Australia
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Sarangani Energy Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Carbofer General Trading SA - India
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Indian Oil Corporation Limited
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Gujarat Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- Neyveli Lignite Corporation Ltd, - India
- CIMB Investment Bank - Malaysia
- Mjunction Services Limited - India
- International Coal Ventures Pvt Ltd - India
- Electricity Authority, New Zealand
- Wilmar Investment Holdings
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kalimantan Lumbung Energi - Indonesia
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Central Java Power - Indonesia
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Agrawal Coal Company - India
- Kideco Jaya Agung - Indonesia
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Thiess Contractors Indonesia
- Coalindo Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Anglo American - United Kingdom
- Bulk Trading Sa - Switzerland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- India Bulls Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Larsen & Toubro Limited - India
- Grasim Industreis Ltd - India
- Madhucon Powers Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Trasteel International SA, Italy
- Kapuas Tunggal Persada - Indonesia
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- PTC India Limited - India
- Indogreen Group - Indonesia
- Karaikal Port Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- PowerSource Philippines DevCo
- Global Green Power PLC Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Singapore Mercantile Exchange
- Mercator Lines Limited - India
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Coal and Oil Company - UAE
- Economic Council, Georgia
- Bhatia International Limited - India
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- Parliament of New Zealand
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- Global Business Power Corporation, Philippines
- Energy Development Corp, Philippines
- Bhushan Steel Limited - India
- Bhoruka Overseas - Indonesia
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Intertek Mineral Services - Indonesia
- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Siam City Cement - Thailand
- Orica Mining Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Vedanta Resources Plc - India
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- Borneo Indobara - Indonesia
- Samtan Co., Ltd - South Korea
- Indonesian Coal Mining Association
- Heidelberg Cement - Germany
- Baramulti Group, Indonesia
- Renaissance Capital - South Africa
- Kumho Petrochemical, South Korea
- Vizag Seaport Private Limited - India
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- McConnell Dowell - Australia
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- MS Steel International - UAE
- Directorate Of Revenue Intelligence - India
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- The Treasury - Australian Government
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SMG Consultants - Indonesia
- Indika Energy - Indonesia
- Bangladesh Power Developement Board
- CNBM International Corporation - China
- Holcim Trading Pte Ltd - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Central Electricity Authority - India
- Merrill Lynch Commodities Europe
- Global Coal Blending Company Limited - Australia
- Eastern Energy - Thailand
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