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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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Thursday, 09 January 14
THE SHIPPING MARKET IN 2013 AND LOOKING FORWARD GLOBAL ECONOMY: STEADY AS SHE GOES UPWARDS - BIMCO
Over the past year, developed economies have gained traction while developing and emerging economies have suffered from slower growth. Despite key e ...
Wednesday, 08 January 14
DRY BULK MARKET PROSPECTS LOOKING BRIGHTER DESPITE SLOW START TO THE NEW YEAR - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Despite the fact that the dry bulk market's benchmark, the BDI has been on a fall since the start of 2014, ending yesterday's session down to 1,87 ...
Wednesday, 08 January 14
AUSTRALIAN NEWCASTLE PORT'S WEEKLY COAL EXPORTS FALL
COALspot.com: In the week ended January 6, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled 3.27 m ...
Wednesday, 08 January 14
THE DRY BULK MARKET HAS LOST SOME OF ITS STEAM THESE PAST COUPLE OF DAYS: INTERMODAL
Chartering (Wet: Softer- / Dry: Softer- )
The Dry Bulk market has lost some of its steam these past couple of days although hires, espe ...
Wednesday, 08 January 14
SHIPPING: THE ABSOLUTE BOTTOM OF THE CYCLE WAS REACHED AND PASSED - GEORGE LAZARIDIS
COALspot.com: To many in the industry 2013 has been the turning point in the market where the absolute bottom of the cycle was reached and passed.
...
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Cigading International Bulk Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- Port Waratah Coal Services - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Simpson Spence & Young - Indonesia
- Anglo American - United Kingdom
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Economic Council, Georgia
- White Energy Company Limited
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- PowerSource Philippines DevCo
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Videocon Industries ltd - India
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Metalloyd Limited - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- Planning Commission, India
- Australian Coal Association
- The Treasury - Australian Government
- Petron Corporation, Philippines
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- Jindal Steel & Power Ltd - India
- IHS Mccloskey Coal Group - USA
- Bhatia International Limited - India
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Salva Resources Pvt Ltd - India
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- Binh Thuan Hamico - Vietnam
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Thiess Contractors Indonesia
- Ambuja Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- AsiaOL BioFuels Corp., Philippines
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Kideco Jaya Agung - Indonesia
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- SN Aboitiz Power Inc, Philippines
- Madhucon Powers Ltd - India
- Georgia Ports Authority, United States
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Coastal Gujarat Power Limited - India
- Commonwealth Bank - Australia
- Tamil Nadu electricity Board
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- Attock Cement Pakistan Limited
- Jorong Barutama Greston.PT - Indonesia
- Parry Sugars Refinery, India
- ICICI Bank Limited - India
- Standard Chartered Bank - UAE
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- OPG Power Generation Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Chettinad Cement Corporation Ltd - India
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Sarangani Energy Corporation, Philippines
- Coalindo Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Africa Commodities Group - South Africa
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- Coal and Oil Company - UAE
- Agrawal Coal Company - India
- Romanian Commodities Exchange
- Rio Tinto Coal - Australia
- Energy Development Corp, Philippines
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- Central Electricity Authority - India
- The University of Queensland
- Globalindo Alam Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Barasentosa Lestari - Indonesia
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Directorate Of Revenue Intelligence - India
- Bukit Baiduri Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Semirara Mining Corp, Philippines
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Gujarat Sidhee Cement - India
- Tata Chemicals Ltd - India
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Timah Investasi Mineral - Indoneisa
- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- Merrill Lynch Commodities Europe
- Wood Mackenzie - Singapore
- Mercator Lines Limited - India
- Aditya Birla Group - India
- CNBM International Corporation - China
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Xindia Steels Limited - India
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- Iligan Light & Power Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Vizag Seaport Private Limited - India
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- Aboitiz Power Corporation - Philippines
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Marubeni Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Meenaskhi Energy Private Limited - India
- ASAPP Information Group - India
- Gujarat Mineral Development Corp Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Transport, Egypt
- Wilmar Investment Holdings
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