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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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- Energy Link Ltd, New Zealand
- Ministry of Transport, Egypt
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- OPG Power Generation Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Indogreen Group - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Independent Power Producers Association of India
- Bhushan Steel Limited - India
- Sindya Power Generating Company Private Ltd
- White Energy Company Limited
- Jindal Steel & Power Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- ICICI Bank Limited - India
- Formosa Plastics Group - Taiwan
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining and Power Corporation, Philippines
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Parliament of New Zealand
- Price Waterhouse Coopers - Russia
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Heidelberg Cement - Germany
- Madhucon Powers Ltd - India
- Intertek Mineral Services - Indonesia
- SMG Consultants - Indonesia
- The Treasury - Australian Government
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Africa Commodities Group - South Africa
- Jaiprakash Power Ventures ltd
- Dalmia Cement Bharat India
- PTC India Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Petron Corporation, Philippines
- Interocean Group of Companies - India
- Karaikal Port Pvt Ltd - India
- Eastern Energy - Thailand
- Sojitz Corporation - Japan
- Holcim Trading Pte Ltd - Singapore
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Bangladesh Power Developement Board
- Romanian Commodities Exchange
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
- London Commodity Brokers - England
- European Bulk Services B.V. - Netherlands
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement - Thailand
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Trasteel International SA, Italy
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Carbofer General Trading SA - India
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Anglo American - United Kingdom
- Tata Chemicals Ltd - India
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Simpson Spence & Young - Indonesia
- Australian Coal Association
- VISA Power Limited - India
- Medco Energi Mining Internasional
- India Bulls Power Limited - India
- Kideco Jaya Agung - Indonesia
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Metalloyd Limited - United Kingdom
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Singapore Mercantile Exchange
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- Coastal Gujarat Power Limited - India
- Mercator Lines Limited - India
- PNOC Exploration Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Wilmar Investment Holdings
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- MS Steel International - UAE
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Mines - Canada
- Posco Energy - South Korea
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Aditya Birla Group - India
- Sree Jayajothi Cements Limited - India
- Thiess Contractors Indonesia
- SMC Global Power, Philippines
- Vedanta Resources Plc - India
- Sinarmas Energy and Mining - Indonesia
- SN Aboitiz Power Inc, Philippines
- Videocon Industries ltd - India
- Minerals Council of Australia
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- South Luzon Thermal Energy Corporation
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Latin American Coal - Colombia
- LBH Netherlands Bv - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- International Coal Ventures Pvt Ltd - India
- Ambuja Cements Ltd - India
- Kobexindo Tractors - Indoneisa
- Electricity Generating Authority of Thailand
- Port Waratah Coal Services - Australia
- Ceylon Electricity Board - Sri Lanka
- Pipit Mutiara Jaya. PT, Indonesia
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- Binh Thuan Hamico - Vietnam
- Chamber of Mines of South Africa
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- The University of Queensland
- Agrawal Coal Company - India
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coalindo Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Cigading International Bulk Terminal - Indonesia
- Commonwealth Bank - Australia
- Star Paper Mills Limited - India
- Therma Luzon, Inc, Philippines
- Standard Chartered Bank - UAE
- Sakthi Sugars Limited - India
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Planning Commission, India
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
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