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Thursday, 27 February 14
SHIPPING LOANS WORTH $5 BILLION HAVE CHANGED HANDS OVER THE PAST YEAR, AS FUNDS INVEST IN SHIPPING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Funds investing in shipping has been the "talk of the town" over the past couple of years, as institutional investors, private equity and hedge funds have all emerged as newcomers to the shipping financing segment, often assuming the role of traditional shipping banks, which have exited the market, or cut their exposure. According to the latest weekly report from shipbroker Intermodal, the vast majority of those funds have been consumed in buying up shipping loans. "About $5 billion in shipping loans have changed hands in the past year and demand is driving loan prices to levels almost in line with book values", said the shipbroker.
According to an analysis by Intermodal's SnP broker George Dermatis, these funds "do not hesitate taking over entire fleets and even align themselves with several managers in an insatiable escapade to take over debts and even ships/assets on their balance sheets. Funds tolerate systemic risk much more than traditional banks that are massively exiting or reducing their exposure in the sector. So one could argue that one player is filling up the void the other creates. Therein lays the paradox" he noted.
Dermatis said that "the characteristics of traditional banks are undoubtedly much more to the liking of traditional shipowners; no exit strategy other than full debt repayment, name lending based on interpersonal relationships, which in some cases dates back decades, experience over several shipping cycles and the list goes on. The industry perceives this as an overall alignment of interests. Private Equity funds stand more or less at the other side of the road on all of these points and that creates nervousness to most being afraid of how fast these investors can climb the learning curve or lose their interest in the process".
According to the broker, "the truth is that shipping largely remains in the hands of its professionals, who live and breathe the essence of this sector and who -to a large extent- have assigned a negative connotation to the publicity that funds along with capital markets and OTC offerings gather. So, despite the fact that financing from these sources has in many times arrived when no other source of funding was available, the truth is that our industry still views them with skepticism. My personal feeling is that people spend too much time “loving or hating” a way of financing whose significance has been grossly overestimated - at least for the time being", Dermatis mentioned.
He went on to add that "despite the fact that numbers -especially last year's- are indeed impressive, it seems that equity funds do not contribute more than $6-7bn on average per year, which seems like a drop in the ocean when compared to conventional debt financing by banks which continues to provide around $250bn annually according to Marine Money. During the peak times of 2008, these figures stood close to $500bn (!!!) and this should therefore be sufficient to hush down fears that private equity alone could lead to a bubble or that it could even distort market reality... The main worry linked to overcapacity remains and the finance gap on newbuilding orders persists if not broadens. The latest available data speaks of figures of over $125bn... Whilst the presence of “new” money is duly noted, we all need to realize that the industry must be able to carry its own weight. If that means changing our processes, transparency levels, corporate responsibility standards, etc. in order to bridge this gap and attract a greater share of their attention, then maybe this is a change we should embrace", Dermatis concluded.
Meanwhile, in the dry bulk market this past week, things continued to improve on the back of rates for the smaller size segments holding on to their levels and those for Capes correcting upwards, said Intermodal, while the spill-overs of the improved sentiment have yet to affect the Panamax market. Nevertheless, the BDI ended yesterday on yet another higher note, ending the session at 1,222 points.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 16 April 14
Q1 2014 : TERMS OF FREIGHT RATES THE PERFORMANCE IN THE DRY BULK MARKET HAS NOT MET THE HIGH EXPECTATIONS - INTERMODAL
This year the dates for the celebration of Easter will coincide for the Orthodox and the Catholic, so we are already seeing most people in the m ...
Tuesday, 15 April 14
NEWCASTLE SHIPPED MORE COAL WEEK ON WEEK
COALspot.com: In the week ended 07:00 hours 14 April 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensl ...
Monday, 14 April 14
SUB-BIT FOB INDO COAL SWAP FOR Q1' 15 DELIVERY CLOSED AT US$ 60.12 PER MT
COALspot.com: Indonesian coal swaps for average Q4’ 2014 gain on month and on week according to AsiaClear OTC coal swap's reports rele ...
Monday, 14 April 14
INDONESIA'S Q1 COAL PRODUCTION LITTLE CHANGED EVEN WITH PRICE DROP - INVESTOR DAILY
Indonesia’s coal production by volume in the first quarter remained little changed from the same period last year despite the decline in t ...
Monday, 14 April 14
API 8 CFR SOUTH CHINA COAL SWAPS GAIN FOR THE MONTH & WEEK
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries gained 4.61 percent month on month and closed at US$ 76.18 per mt as ...
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- Georgia Ports Authority, United States
- Wilmar Investment Holdings
- International Coal Ventures Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Videocon Industries ltd - India
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Bhoruka Overseas - Indonesia
- European Bulk Services B.V. - Netherlands
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- IHS Mccloskey Coal Group - USA
- GAC Shipping (India) Pvt Ltd
- Edison Trading Spa - Italy
- Larsen & Toubro Limited - India
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Independent Power Producers Association of India
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- Oldendorff Carriers - Singapore
- Tata Chemicals Ltd - India
- Aboitiz Power Corporation - Philippines
- Sical Logistics Limited - India
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- Baramulti Group, Indonesia
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Vedanta Resources Plc - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- GVK Power & Infra Limited - India
- Wood Mackenzie - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement PLC, Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Agrawal Coal Company - India
- Global Green Power PLC Corporation, Philippines
- Meralco Power Generation, Philippines
- Global Business Power Corporation, Philippines
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- Bhushan Steel Limited - India
- McConnell Dowell - Australia
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- CIMB Investment Bank - Malaysia
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- Vizag Seaport Private Limited - India
- Lanco Infratech Ltd - India
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Coalindo Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Coal and Oil Company - UAE
- Indogreen Group - Indonesia
- Bukit Makmur.PT - Indonesia
- LBH Netherlands Bv - Netherlands
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Mercator Lines Limited - India
- Kaltim Prima Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Grasim Industreis Ltd - India
- Savvy Resources Ltd - HongKong
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Siam City Cement - Thailand
- VISA Power Limited - India
- Minerals Council of Australia
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- Mjunction Services Limited - India
- Australian Coal Association
- Indika Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- SMC Global Power, Philippines
- Semirara Mining Corp, Philippines
- Eastern Energy - Thailand
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Sarangani Energy Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- TNB Fuel Sdn Bhd - Malaysia
- CNBM International Corporation - China
- Maheswari Brothers Coal Limited - India
- Banpu Public Company Limited - Thailand
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- PNOC Exploration Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- Metalloyd Limited - United Kingdom
- Africa Commodities Group - South Africa
- Meenaskhi Energy Private Limited - India
- Jaiprakash Power Ventures ltd
- Uttam Galva Steels Limited - India
- Trasteel International SA, Italy
- Aditya Birla Group - India
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- Planning Commission, India
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- Dalmia Cement Bharat India
- Chettinad Cement Corporation Ltd - India
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Globalindo Alam Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- The University of Queensland
- Eastern Coal Council - USA
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Tamil Nadu electricity Board
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Rio Tinto Coal - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- IEA Clean Coal Centre - UK
- Attock Cement Pakistan Limited
- Singapore Mercantile Exchange
- Latin American Coal - Colombia
- Riau Bara Harum - Indonesia
- Heidelberg Cement - Germany
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- Posco Energy - South Korea
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Parry Sugars Refinery, India
- Borneo Indobara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- ICICI Bank Limited - India
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