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Saturday, 22 February 14
POTEN RAISES THE QUESTION OF ACCURACY IN CALCULATING TANKER FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
As the tanker market has grown in complexity over the course of the past few years, the question of whether the traditional methods of assessing rates is still valid. In a recent report, Poten & Partners noted that "the market landscape for crude oil and refined product trades has an inherent element of shifting sand, presenting an organization like the Baltic Exchange with certain challenges. The Baltic Exchange is a centuries-old institution that, among other services, oversees a collective of member shipbrokers who contribute daily freight rate assessments for the wet and dry bulk shipping markets. The freight rates that are collected by the Baltic Exchange are in turn used by both charterers and shipowners, as well as other market participants, as a reliable metric of freight pricing for internal and external financial calculations. Although the birth and death of trade lanes is a natural market evolution, such developments pose questions of relevancy to the Baltic Exchange’s data collection efforts. While the decision to discontinue a certain set of assessments due to perceived obsolescence is objectively simple, it could have broader implications for commercial market participants that have freight contracts dependent on these rates", Poten said.
According to the analyst, the Baltic Dirty Tanker Index. This index is currently comprised of 12 benchmark tanker routes, covering all trade routes and vessel sizes. The BDTI serves as an often cited reference of general health of the tanker market freight rate environment. The Baltic Exchange International Tanker Routes (BITR) are quoted on individual trades for specific cargo sizes for clean and dirty cargoes. For example, the tanker trade with the largest volume worldwide is often referred to as “TD3” or “Tanker Dirty” route number “3” – the voyage basis is from Ras Tanura, Saudi Arabia to Chiba, Japan for 265,000 metric tons of cargo".
In the report, Poten cited an announcement issued on February 5, 2014, which indicated that the Baltic Exchange was suspending their assessments of the routes “TC3_38” and “TD10D”, Aruba – New York for 38,000 metric tons of clean products and Aruba – New York for 50,000 metric tons of fuel oil, respectively. The removal of TD10D would leave the market without a Baltic Exchange instrument for quoting Panamax freight rates.
Poten noted that "in early 2012, Valero shut down their 235,000 bpd Aruba refinery, effectively rendering the voyage basis irrelevant. Historically, the Aruba refinery yielded significant volumes of fuel oil that were exported and often utilized as feedstock in Valero’s Paulsboro, N.J. refinery or for power generation on the US East Coast. The Aruba refinery eventually became structurally disadvantaged compared to US Gulf Coast refineries due to a higher operational cost base; it, like other Caribbean refineries, did not have access to cheap natural gas for power supply. Using reported spot market activity for Panamaxes loading in the Caribbean as a proxy for total market activity, trade volumes from the Caribbean to the US Atlantic Coast have become insignificant. Although still a relatively small market, fixture activity has increased for the Caribbean to US Gulf trade".
It added that "it stands to reason that the Baltic Exchange should continue to assess at least one dirty Panamax trade route. Contracts of Affreightment, or COAs, whereby shipowners and oil companies pre-arrange transportation volumes over a specified period of time, often incorporate some kind of discount to prevailing spot market rates. In exchange for a guaranteed volume of business from an oil company, a shipowner or pool will typically offer a discount to market rates. The Baltic Exchange rate assessments are often referenced in contract language accordingly. The same logic applies for time charters that involve profit sharing elements; shipowners and charterers agree how the profit share will be determined based on independent freight rate assessments.
In the case of TD10D, the Baltic Exchange might consider changing the voyage basis in order to prevent commerical disruption. Load ports for crude export in countries such as Venezuela, Colombia or Trinidad are viable options and the destination should, undoubtedly, be in the US Gulf. The question of what to do with the Aruba to New York (TC3) benchmark for clean products is more black and white. The sizeable increase in refined products exports from the US Gulf to the Caribbean and Latin American countries has displaced imports from the Caribbean. With strong refining economics in the US Gulf, it is difficult to see any reversal in this trend anytime soon", Poten concluded.
source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 25 February 14
SGX'S MONTHLY VOLUMES DRASTICALLY INCREASED AND REACHED A RECORD OF 810K TONNES YEAR-ON-YEAR
COALspot.com: SGX Thermal Coal derivatives started the new year with record volumes in January on the back of higher volatility, says SGX.
Accord ...
Monday, 24 February 14
DRY BULK MARKET TO IMPROVE OVER THE COURSE OF 2014, BUT OVERSUPPLY STILL AN ISSUE SAYS BIMCO'S CHIEF SHIPPING ANALYST
As a gruelling first quarter edges closer to the end, dry bulk ship owners are looking at an improved second quarter demand, which, coupled with slo ...
Monday, 24 February 14
INDONESIAN SUB-BITUMINOUS COAL SWAP FOR DELIVERY APRIL - JUNE 2014 SLIDES TO $ 58.60 PMT
COALspot.com – Indonesia, the world’s the largest exporter of the thermal coal's swaps for delivery April - June 2014 slide week ended ...
Monday, 24 February 14
Q1 2015 DELIVERY COAL SWAP CLOSED AT 2.62% HIGHER THAN Q2 2014 CLOSING SWAPS
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 2.68 percent month on month and closed at US$ 76.20 per mt as on Fr ...
Saturday, 22 February 14
SHIPPING POISED TO RALLY AFTER SEVERAL WEEKS OF DROP
COALspot.com: The freight market was steady to firm with the dry bulk index up by 6.24 pct closing at 1,175 points week on week and the cape index w ...
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Showing 3836 to 3840 news of total 6871 |
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- Australian Coal Association
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Uttam Galva Steels Limited - India
- Mercuria Energy - Indonesia
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Baramulti Group, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Star Paper Mills Limited - India
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Formosa Plastics Group - Taiwan
- Central Electricity Authority - India
- Trasteel International SA, Italy
- VISA Power Limited - India
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Ministry of Mines - Canada
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- Barasentosa Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Bukit Makmur.PT - Indonesia
- Dalmia Cement Bharat India
- Ceylon Electricity Board - Sri Lanka
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- IHS Mccloskey Coal Group - USA
- Energy Development Corp, Philippines
- Latin American Coal - Colombia
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- GVK Power & Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Grasim Industreis Ltd - India
- PowerSource Philippines DevCo
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Bhatia International Limited - India
- Kepco SPC Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Indogreen Group - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Kideco Jaya Agung - Indonesia
- SMG Consultants - Indonesia
- Eastern Energy - Thailand
- Ind-Barath Power Infra Limited - India
- Indian Energy Exchange, India
- Ministry of Finance - Indonesia
- Semirara Mining Corp, Philippines
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Directorate General of MIneral and Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Sindya Power Generating Company Private Ltd
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kaltim Prima Coal - Indonesia
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- European Bulk Services B.V. - Netherlands
- TeaM Sual Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Carbofer General Trading SA - India
- Economic Council, Georgia
- Antam Resourcindo - Indonesia
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Energy Link Ltd, New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Heidelberg Cement - Germany
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Port Waratah Coal Services - Australia
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Makarim & Taira - Indonesia
- Minerals Council of Australia
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Madhucon Powers Ltd - India
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- The University of Queensland
- Karbindo Abesyapradhi - Indoneisa
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Maheswari Brothers Coal Limited - India
- Meenaskhi Energy Private Limited - India
- Price Waterhouse Coopers - Russia
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- Kartika Selabumi Mining - Indonesia
- Xindia Steels Limited - India
- Globalindo Alam Lestari - Indonesia
- Edison Trading Spa - Italy
- Bhoruka Overseas - Indonesia
- Simpson Spence & Young - Indonesia
- San Jose City I Power Corp, Philippines
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Leighton Contractors Pty Ltd - Australia
- Africa Commodities Group - South Africa
- GAC Shipping (India) Pvt Ltd
- Gujarat Sidhee Cement - India
- Malabar Cements Ltd - India
- Samtan Co., Ltd - South Korea
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- Sical Logistics Limited - India
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- Ministry of Transport, Egypt
- Mintek Dendrill Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ICICI Bank Limited - India
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Indonesian Coal Mining Association
- Sarangani Energy Corporation, Philippines
- Commonwealth Bank - Australia
- Manunggal Multi Energi - Indonesia
- Savvy Resources Ltd - HongKong
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Sree Jayajothi Cements Limited - India
- Coal and Oil Company - UAE
- GN Power Mariveles Coal Plant, Philippines
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