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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 market getting into a more relaxed mood. Saying that, this could probably be the worst time to relax, especially if you are involved with the Dry Bulk market, as the latter has been losing ground constantly for the past three weeks.
Despite the negative performance, we are witnessing asset values remaining at much higher levels than compared to those of August 2013, the same period the BDI had last visited the 1,000 level mark. At the same time the average TC is either worse than what it was back then, as in the case of Capes and Panamaxes or just a tad better, as in the case of the smaller size segments. But even in the case of Supras and Handies that experience a slightly better freight market, the second hand values are way higher than what they were 8 months ago.
Let’s take the example of a seven year old Panamax, which was sold at around USD 18 mil back in August. The market for the same vessel today would be somewhere around USD 26 mil, while the average TC for the segment stands at around USD 6,500/day, when back in August it was around USD 7,500/day. During the past month, the number of sales candidates has increased a lot.
If someone takes a closer look, they can see that, with the exception of Japanese owned vessels maybe, the majority of sales candidates are vessels that were bought at very low levels sometime between 2012 and 2013, which means that their owners are hoping to lock a good profit from selling back their vessels. A number of fifteen year old Handymax vessels that were bought between USD8mil and USD 9mil in either 2012 or 2013, are currently in the market for a price tag of around USD 13.5mil, which undoubtedly is a great return.
Psychology, as always, is still playing a very important role for both buyers and sellers, while it is currently very difficult for anyone to make predictions, as the markets nowadays are influenced by many factors, some of which are not even explicit in the way they are linked to the shipping market. Under such circumstances, and with the freight rates being in a free fall during the past weeks, some potential buyers are more hesitant to go ahead with a purchase. At the same time, others believe that the bad performance of rates is only periodic and try to take advantage of a possible break down in the psychology of Sellers, who might have started feeling less confident than before, both because of the bad market but also due to the decreased number of potential buyers around, most of them having already made an acquisition during the past year.
So if we try to summarize the first quarter of 2014, we can say that in terms of freight rates the performance in the Dry Bulk market has not met the high expectations created following the mini rally at the end of last year, but at the same time there are a lot of people who firmly believe that the market will make a come-back in 2014 and freight rates will bounce back up. Evident of this optimism is the firm numbers still being achieved in the second-hand market even for older vessels, like in the case of the ‘ASIAN EXCELSIOR’ (45kdwt-blt96 Taiwan), which was very recently sold in excess of USD 11 mil.
So let’s hope that going forward the performance of freight market will follow that of the second-hand market, so that our industry gets a break and starts operating under healthier fundamentals and sustainable growth.
Happy Easter to Everyone!
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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Sunday, 23 March 14
THE COAL FREIGHT RATES SEEN SLIGHTLY FIRMING UP THIS WEEK - REDDY
COALspot.com: The freight market firmed up this week. BDI was up 8.26 pct week on week and index was closed at 1599 points. The Cape index was u ...
Saturday, 22 March 14
SHIP OWNERS INVEST $15 BILLION FOR NEWBUILDINGS AND SECONDHAND VESSELS DURING FEBRUARY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Ship owners have kept on their aggressive stance in the investment scene both for newbuildings, as well as for secondhand vessels globally durin ...
Friday, 21 March 14
DRY BULK MARKET STAYS ON RECOVERY MODE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has reached new year heighs, as a result of renewed Capesize demand. The Baltic Dry Index (BDI) ended yesterday's sessio ...
Friday, 21 March 14
US COAL PRODUCTION UP 1.5%; WEST MISSISSIPPI COAL PRODUCTION DOWN 1.85% WEEK ON WEEK
COALspot.com – United States the world's second largest coal producer, produced approximately 19.0 million short tons (mmst) of coal i ...
Friday, 21 March 14
MERCURIA ANNOUNCES ACQUISITION OF J.P. MORGAN PHYSICAL COMMODITIES BUSINESS
COALspot.com: Mercuria Energy Group announced that it has reached a definitive agreement with J.P. Morgan Chase & Co. to acquire its physica ...
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- Intertek Mineral Services - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- Goldman Sachs - Singapore
- The University of Queensland
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Antam Resourcindo - Indonesia
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- Economic Council, Georgia
- Romanian Commodities Exchange
- Australian Coal Association
- Siam City Cement - Thailand
- VISA Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Indo Tambangraya Megah - Indonesia
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Eastern Energy - Thailand
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Xindia Steels Limited - India
- Sindya Power Generating Company Private Ltd
- Coal and Oil Company - UAE
- Indogreen Group - Indonesia
- Essar Steel Hazira Ltd - India
- Vedanta Resources Plc - India
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- Central Electricity Authority - India
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Gujarat Sidhee Cement - India
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Salva Resources Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Sical Logistics Limited - India
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Altura Mining Limited, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Eastern Coal Council - USA
- Gujarat Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- The Treasury - Australian Government
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Independent Power Producers Association of India
- Samtan Co., Ltd - South Korea
- Toyota Tsusho Corporation, Japan
- Energy Development Corp, Philippines
- Mjunction Services Limited - India
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- Bulk Trading Sa - Switzerland
- Indonesian Coal Mining Association
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- GN Power Mariveles Coal Plant, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Medco Energi Mining Internasional
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Indian Energy Exchange, India
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- Minerals Council of Australia
- McConnell Dowell - Australia
- PTC India Limited - India
- Singapore Mercantile Exchange
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- Renaissance Capital - South Africa
- TeaM Sual Corporation - Philippines
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- ICICI Bank Limited - India
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Ambuja Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Meenaskhi Energy Private Limited - India
- Agrawal Coal Company - India
- Bukit Asam (Persero) Tbk - Indonesia
- Tata Chemicals Ltd - India
- AsiaOL BioFuels Corp., Philippines
- LBH Netherlands Bv - Netherlands
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- OPG Power Generation Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Power Finance Corporation Ltd., India
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Deloitte Consulting - India
- Straits Asia Resources Limited - Singapore
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- San Jose City I Power Corp, Philippines
- India Bulls Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IHS Mccloskey Coal Group - USA
- Riau Bara Harum - Indonesia
- Indian Oil Corporation Limited
- Petron Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- South Luzon Thermal Energy Corporation
- Latin American Coal - Colombia
- Attock Cement Pakistan Limited
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- Global Green Power PLC Corporation, Philippines
- The State Trading Corporation of India Ltd
- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Planning Commission, India
- Timah Investasi Mineral - Indoneisa
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- Jorong Barutama Greston.PT - Indonesia
- Star Paper Mills Limited - India
- Heidelberg Cement - Germany
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- GVK Power & Infra Limited - India
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