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Wednesday, 25 September 13
IS IT TIME AGAIN TO SUPERSIZE AGAIN? - GEORGE LAZARIDIS
 After an early arrival of the seasonal rally in the Capesize market, things look to be on the upbeat for these dry bulk giants. With the Index reaching just over 4,000 points and the average of the 4 TC routes only a breadth away from US$ 40,000/day, it looks as though the worst is now behind us and all market players take an opportunity for a breather and to reorganize their strategy. This climb in the freight market is no small feat. The last time we saw the freight market climb to these levels was back in 2010 in the respective September rally then. This was at a time when the Capesize and VLOC fleet stood at around 1,096 vessels compared to the current fleet of 1,437 (that’s give or take 500 deliveries minus scrapping and a more than 30% increase in carrying capacity). In comparison we now stand head to head with a considerably smaller orderbook schedule (14% orderbook to fleet ratio compared to the 50% seen in 2010) and are still seeing a strong rise in demand from commodities such as iron ore and coal albeit.
As promising as the above may sound, this may end up being nothing more than just a September rally. Rates will drop back down from their current highs and although it doesn’t look likely that they will reach the lows of 2012 any time soon, it also looks unlikely that we will soon see a rapid boom in the market that would drive a major “bull rush” and that may well be why we haven’t really seen that many investors in a hurry to secure units in the secondhand market nor slots in the newbuilding market.
On the Other hand, looking at both the prices in the secondhand market and newbuilding market, you do tend tο wonder why we haven’t seen more activity? I mean it’s not like Capes had been excessively priced compared to Panamaxes, with the latter having witnessed a remarkable rise in interest and activity over the past nine months. Granted that all prices have now gone up since their previous rock bottom levels of December 2012, however there is still reason to take interest in this size segment. Resale, 5 year old and 10 year old units are trading at price levels which are at competitive levels when compared to their newbuilding counterparts. Yes, they may not be new eco-designs, but the discount is still noteworthy (11%, 30% and 56% cheaper than a newbuilding for resale, 5 year old and 10 year old respectively) and when compared to their current going period charter levels, it makes sense to take on this minimal risk as the pay-off seems to be significant.
The current price gap that has occurred has been partly due to the sharp rise in newbuilding prices over the past nine months which was at a faster pace than the secondhand market could accommodate. What’s more is that although we are not at the absolute bottom anymore, we are still at low secondhand price levels which were last seen in the early 2000’s. As an example, a five year old Capesize would be changing hands for US$ 35.0m in the secondhand market in October 2003 while during the same period a newbuilding would cost around US$ 42.5m (meaning that the then discount of a 5 year old vessel was only 22%).
So there you have it. The fundamentals seem to be there for Capes this week and while it has been the Panamaxes that have attracted most of the interest over these past couple of months, it seems to be the Capesize market that is promising higher gains thanks to the current market arbitrage. That is all well and good if you can find a noteworthy vessel for sale in this market, because as it seems, as much as there may be a limited number of buyers for Capes, so too is there a shortage of good quality candidates circulating the market. As such, one wonders how much longer these low price levels may last?
Compiled by:
Intermodal Research & Valuations | research@intermodal.gr
Analysts:
Mr. George Lazaridis | g.lazaridis@intermodal.gr
Ms. Eva Tzima | e.tzima@intermodal.gr
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no re-producing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
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Thursday, 26 September 13
INTERCARGO PUBLISHES BENCHMARKING BULK CARRIERS 2012-13 REPORT
The International Association of Dry Cargo Shipowners (Intercargo) has today launched Benchmarking Bulk Carriers 2012-13, the latest edition of our ...
Thursday, 26 September 13
DRY BULK MARKET KEEPS ON RALLYING ON THE BACK OF HIGH CAPESIZE DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept its momentum over the course of the past week, on the back of increased demand for Capesizes and an improvement of mark ...
Wednesday, 25 September 13
RBCT'S COAL EXPORT DECLINES IN AUGUST
COALspot.com - Richards Bay Coal Terminal (RBCT) is the single largest coal export terminal in South African as well as in the world has shipped 16. ...
Wednesday, 25 September 13
CAPES TOUCHING RATES NO ONE BELIEVED COULD BE ACHIEVED IN 2013 - INTERMODAL
Chartering (Wet: Stable- / Dry: Firm+ )
The Dry Bulk market is the gift that keeps on giving these days. With rates for Capes touching numbers ...
Monday, 23 September 13
AUSTRALIA'S NEWCASTLE PORT SHIPPED 3 PERCENT LESS COAL WEEK ON WEEK
COALspot.com: Power plant and semi-soft coking coal shipments from Australia's Newcastle port fell 3 per cent week on week to 2.92 million mt for t ...
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Showing 4101 to 4105 news of total 6871 |
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- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chettinad Cement Corporation Ltd - India
- Global Coal Blending Company Limited - Australia
- Jaiprakash Power Ventures ltd
- VISA Power Limited - India
- Grasim Industreis Ltd - India
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Globalindo Alam Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Global Business Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Xindia Steels Limited - India
- Gujarat Sidhee Cement - India
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Kideco Jaya Agung - Indonesia
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- The University of Queensland
- Indonesian Coal Mining Association
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Alfred C Toepfer International GmbH - Germany
- Ministry of Transport, Egypt
- Ind-Barath Power Infra Limited - India
- GMR Energy Limited - India
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Thai Mozambique Logistica
- MS Steel International - UAE
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- PTC India Limited - India
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Kaltim Prima Coal - Indonesia
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Sree Jayajothi Cements Limited - India
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Chamber of Mines of South Africa
- Latin American Coal - Colombia
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Karaikal Port Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- India Bulls Power Limited - India
- TeaM Sual Corporation - Philippines
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- Timah Investasi Mineral - Indoneisa
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- GAC Shipping (India) Pvt Ltd
- Jindal Steel & Power Ltd - India
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- Baramulti Group, Indonesia
- Independent Power Producers Association of India
- OPG Power Generation Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Singapore Mercantile Exchange
- Banpu Public Company Limited - Thailand
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- Holcim Trading Pte Ltd - Singapore
- Electricity Authority, New Zealand
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Indogreen Group - Indonesia
- SMG Consultants - Indonesia
- Commonwealth Bank - Australia
- Intertek Mineral Services - Indonesia
- Malabar Cements Ltd - India
- Rio Tinto Coal - Australia
- Vijayanagar Sugar Pvt Ltd - India
- PowerSource Philippines DevCo
- Neyveli Lignite Corporation Ltd, - India
- Wood Mackenzie - Singapore
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- Coastal Gujarat Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Orica Mining Services - Indonesia
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Binh Thuan Hamico - Vietnam
- Riau Bara Harum - Indonesia
- Vizag Seaport Private Limited - India
- Siam City Cement PLC, Thailand
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- ASAPP Information Group - India
- CIMB Investment Bank - Malaysia
- IHS Mccloskey Coal Group - USA
- Sindya Power Generating Company Private Ltd
- New Zealand Coal & Carbon
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Energy Development Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Indian Oil Corporation Limited
- Gujarat Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Kumho Petrochemical, South Korea
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Australian Coal Association
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- SN Aboitiz Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Deloitte Consulting - India
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Lanco Infratech Ltd - India
- Posco Energy - South Korea
- Simpson Spence & Young - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- SMC Global Power, Philippines
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Antam Resourcindo - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Toyota Tsusho Corporation, Japan
- White Energy Company Limited
- Billiton Holdings Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Eastern Energy - Thailand
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
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