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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, 12 November 12
THE ESTABLISHMENT OF NORTH KALIMANTAN AS A NEW PROVINCE WILL NOT AFFECT THE LOCAL MINING COMPANIES
The government of Indonesia has ensured that the establishment of North Kalimantan as a new province will not affect the local mining companies ...
Monday, 12 November 12
DRILLING COMPLETED AT THE MOORLANDS DEPOSIT, WEST BOWEN PROJECT
Press Release - Cuesta Coal Limited (ASX: CQC) (“Cuesta”) is pleased to announce it has completed its exploration activities at the Moor ...
Monday, 12 November 12
BARGE-LOAD OF 5K TONNES OF COAL FROM THE ADK JOINT VENTURE SHIPPED LAST WEEK
COALspot.com - Orpheus Energy (ASX:OEG) has announced that, it has successfully shipped a 5,000 tonne of ADK thermal coal to an Indonesian trading g ...
Sunday, 11 November 12
AN OPTIMISTIC WEEK FOR INDONESIAN SUB-BIT COAL
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for January 2013 delivery gains 2.08 percent WoW and 1.28 percent DoD on Friday, 9 November ...
Sunday, 11 November 12
THE IRON ORE AND COAL PRICES MOVEMENTS REMAINS LOW - VISTAAR
COALspot.com The market remained soft with all the sectors soft.
The BDI and was down by 4.67 pct closing at 940 points, on Friday 9 Novemb ...
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- Energy Link Ltd, New Zealand
- South Luzon Thermal Energy Corporation
- Economic Council, Georgia
- Jaiprakash Power Ventures ltd
- Ambuja Cements Ltd - India
- Edison Trading Spa - Italy
- San Jose City I Power Corp, Philippines
- ASAPP Information Group - India
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Attock Cement Pakistan Limited
- Marubeni Corporation - India
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- European Bulk Services B.V. - Netherlands
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Latin American Coal - Colombia
- Kohat Cement Company Ltd. - Pakistan
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- Standard Chartered Bank - UAE
- LBH Netherlands Bv - Netherlands
- Australian Commodity Traders Exchange
- Vedanta Resources Plc - India
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- Kumho Petrochemical, South Korea
- Aditya Birla Group - India
- Jorong Barutama Greston.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Indogreen Group - Indonesia
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Baramulti Group, Indonesia
- Indian Energy Exchange, India
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- Africa Commodities Group - South Africa
- Wood Mackenzie - Singapore
- GMR Energy Limited - India
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- AsiaOL BioFuels Corp., Philippines
- Billiton Holdings Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- PTC India Limited - India
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indika Energy - Indonesia
- Energy Development Corp, Philippines
- Sojitz Corporation - Japan
- Bukit Makmur.PT - Indonesia
- Global Coal Blending Company Limited - Australia
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Commonwealth Bank - Australia
- Planning Commission, India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Carbofer General Trading SA - India
- Savvy Resources Ltd - HongKong
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- Madhucon Powers Ltd - India
- Coalindo Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Ind-Barath Power Infra Limited - India
- Salva Resources Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Anglo American - United Kingdom
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- McConnell Dowell - Australia
- Meenaskhi Energy Private Limited - India
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Mjunction Services Limited - India
- Chettinad Cement Corporation Ltd - India
- Metalloyd Limited - United Kingdom
- Iligan Light & Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- Renaissance Capital - South Africa
- Bulk Trading Sa - Switzerland
- Sree Jayajothi Cements Limited - India
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Coal and Oil Company - UAE
- PetroVietnam Power Coal Import and Supply Company
- Bhoruka Overseas - Indonesia
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Power Finance Corporation Ltd., India
- Aboitiz Power Corporation - Philippines
- Global Business Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- VISA Power Limited - India
- Xindia Steels Limited - India
- Medco Energi Mining Internasional
- Bahari Cakrawala Sebuku - Indonesia
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Larsen & Toubro Limited - India
- Central Electricity Authority - India
- Australian Coal Association
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
- Indonesian Coal Mining Association
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Georgia Ports Authority, United States
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- The University of Queensland
- Oldendorff Carriers - Singapore
- Parry Sugars Refinery, India
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Romanian Commodities Exchange
- Kalimantan Lumbung Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Pendopo Energi Batubara - Indonesia
- Therma Luzon, Inc, Philippines
- Indo Tambangraya Megah - Indonesia
- Tamil Nadu electricity Board
- Bukit Baiduri Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- Bayan Resources Tbk. - Indonesia
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Global Green Power PLC Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- OPG Power Generation Pvt Ltd - India
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