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Saturday, 03 November 12
DEMOLITION IS THE KEY FOR DRY BULK SHIPPING'S RECOVERY SAYS SHIPBROKER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 With the number of new building deliveries so far in 2012 already having surpassed the total of 2011, it's more than clear that the dry bulk sector needs more than record demolition activity in order to compensate for the additional tonnage. In other words, older vessels will have to exit the world's fleet in a faster rate, otherwise they will end up competing with their newer counterparts for the same cargoes. According to a recent report from shipbroker Intermodal, more than 1,000 dry bulk carriers have already been delivered since the start of 2012, with over 85 million tons of deadweight capacity and there's two more months until the end of 2012.
According to Intermodal's Theodore Ntalakos, "demolition remains the only alternative for vintage tonnage especially for the bigger vessels. More than 25m tons dwt of dry tonnage have seen the way to the scrapyards, making 2012 another record year in demolition. If we look at demolition versus new deliveries, almost 400 dry bulk carriers have been scrapped representing around 40% of new deliveries. In terms of deadweight, since the new ships are always bigger, demolition is about 30% of the new building deliveries. Although the numbers are more favorable compared to 2011, in 2012 we have seen economies slowing down or even contracting which no doubt has affected global seaborne trade" he said.
We added that "looking at the ratio (demolition/new deliveries) x100 in terms of dwt and in each sub-sector of the dry fleet we can explain and highlight some findings:
Vessels up to 20,000dwt – Demolition is almost 74% of the tonnage or 93% in terms of dwt indicating that this is a sector where the fleet has remained stable.
+ Handysize – the ratio is 55% hinting both the small orderbook as well as the overaged fleet.
+ Handymax/Supramax – the ratio is 22%, showing the limited scraping compared to the very large Supramax orderbook. This number is up from 11% in 2011, which shows that despite the high utilization of this segment, the fleet needs to grow at a slower pace.
+ Panamax – the ratio is 33%, up from 24% in 2011. The lousy rates sent more ships for demo this year, 6.3m tons went for demolition and 19m tons dwt were delivered.
+ Capesize – another poor year for Capesizes explains the fact that scrapings represent almost 40% of new deliveries" he mentioned.
Concluding his argument, Mr. Ntalakos noted that "it feels like demolition activity this year was more of a necessity, not only because the market has remained depressed, but mainly because the future of the older vessels does not look that bright. No doubt the pressure of the orderbook remains enormous and will continue to strangle the market and when world demand subsides, the demolition alone cannot bring the rates back up. As we reach towards the end of 2012, more vessels are coming and surely more demo activity is expected".
Meanwhile, in terms of dry bulk supply, BIMCO noted in a mid-October report that "while our projections for the fleet growth in percentage have remained somewhat steady most of the year, the flows in and out have been much stronger than foreseen at the start of the year. The hectic delivery pace has surpassed the astonishing level of 10 million DWT a month several times, whilst demolition activity has breached the 3 million DWT a month level numerous times too".
The report also examined what can be deduced from this? "Probably that many shipyards are suffering under an intense lack of cash-flow. Whereas the payment structure of the contracts previously were mostly equally distributed or front-heavy from signing to delivery, the contracts that have been made more recently are likely to be back-end loaded, releasing the biggest chunk of the money to the yards closer to the completion and delivery of the ship. This could be one of many explanations that may eventually cause widespread bankruptcies amongst smaller and privately-held yards in the main shipbuilding nations. The active fleet has grown by 8.8% since the turn of the year, as 964 new ships have now been delivered into a fleet that already stood at 8,901 dry bulk carriers at the start of the year. Fortunately, the pressure of 80 million DWT of brand new capacity being poured into the market has been eased to some extent by 375 over aged vessels being demolished.
Ship owners continuously apply the demolition tool generously in order to improve the bad market conditions by cutting down on the supply side. Demolition activity in India, Bangladesh and Pakistan in particular is strong, with lots of dry bulk tonnage sold for breaking. Following the drop in demolition prices from the top in April prices have now moved sideways at a new lower level that has stuck around for some months now. 25 million DWT has now been demolished during 2012 with more to come, assuming that ship owners continue to be tempted by the recycling price level" it concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 19 November 12
GOVT PREPARES TO FACE ANOTHER SUIT ON MINING LAW - THE JAKARTA POST
The government is gearing up to face a complaint on the 2009 Mining Law prepared by the same organization that previously brought down upstream oil ...
Monday, 19 November 12
IHS MCCLOSKEY ASIA PACIFIC COAL OUTLOOK CONFERENCE 2012
With the current global oversupply of thermal coal showing no signs of abating and spot prices falling to a two-year low, concerns are growing that ...
Sunday, 18 November 12
INDONESIAN SUB BITUMINOUS COAL SWAPS FOR JANUARY 2013 DELIVERY GAINS 1.29 PERCENT WOW
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for January 2013 delivery gains 1.29 percent WoW and 0.25 percent DoD on Friday, 16 Novembe ...
Saturday, 17 November 12
THE SUPRAMAX FREIGHT RATES FROM INDONESIA TO INDIA ARE EXPECTED TO BE UP NEXT WEEK - VISTAAR
COALspot.com - This week market sentiments ended positive with all the segments ending higher except for handy size which was almost at same levels ...
Saturday, 17 November 12
RECORD DEMOLITION ACTIVITY SEEKS TO CURB TONNAGE OVERSUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
This year will prove to be another record-breaker in terms of scrapping of older vessels across all shipping segments, as the equally feverish pace ...
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- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- Antam Resourcindo - Indonesia
- Orica Mining Services - Indonesia
- Central Java Power - Indonesia
- Global Business Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- Ind-Barath Power Infra Limited - India
- Commonwealth Bank - Australia
- Bhushan Steel Limited - India
- Pendopo Energi Batubara - Indonesia
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- LBH Netherlands Bv - Netherlands
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- IEA Clean Coal Centre - UK
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- India Bulls Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Port Waratah Coal Services - Australia
- Kobexindo Tractors - Indoneisa
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Economic Council, Georgia
- San Jose City I Power Corp, Philippines
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- The Treasury - Australian Government
- Parliament of New Zealand
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- VISA Power Limited - India
- McConnell Dowell - Australia
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Dalmia Cement Bharat India
- Aditya Birla Group - India
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Global Coal Blending Company Limited - Australia
- Savvy Resources Ltd - HongKong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- New Zealand Coal & Carbon
- Timah Investasi Mineral - Indoneisa
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Australian Coal Association
- Independent Power Producers Association of India
- SMC Global Power, Philippines
- Chettinad Cement Corporation Ltd - India
- Oldendorff Carriers - Singapore
- Attock Cement Pakistan Limited
- OPG Power Generation Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- PowerSource Philippines DevCo
- Petron Corporation, Philippines
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Star Paper Mills Limited - India
- ICICI Bank Limited - India
- GAC Shipping (India) Pvt Ltd
- Wilmar Investment Holdings
- Kideco Jaya Agung - Indonesia
- Bayan Resources Tbk. - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- CNBM International Corporation - China
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Intertek Mineral Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Latin American Coal - Colombia
- PTC India Limited - India
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Borneo Indobara - Indonesia
- Formosa Plastics Group - Taiwan
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Videocon Industries ltd - India
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- Kepco SPC Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Altura Mining Limited, Indonesia
- Central Electricity Authority - India
- Karaikal Port Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Larsen & Toubro Limited - India
- Aboitiz Power Corporation - Philippines
- Carbofer General Trading SA - India
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Indika Energy - Indonesia
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- Thai Mozambique Logistica
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kohat Cement Company Ltd. - Pakistan
- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- Bharathi Cement Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- Planning Commission, India
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Goldman Sachs - Singapore
- Edison Trading Spa - Italy
- Orica Australia Pty. Ltd.
- Indonesian Coal Mining Association
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- Standard Chartered Bank - UAE
- Siam City Cement - Thailand
- Anglo American - United Kingdom
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- Maheswari Brothers Coal Limited - India
- Xindia Steels Limited - India
- Uttam Galva Steels Limited - India
- Jindal Steel & Power Ltd - India
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Georgia Ports Authority, United States
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Bhoruka Overseas - Indonesia
- Essar Steel Hazira Ltd - India
- Coal and Oil Company - UAE
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
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