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Wednesday, 07 January 15
FUEL EFFICIENT SHIPS MAKE LESS SENSE IN LOWER BUNKER PRICE MARKET, BUT FUEL COSTS ARE BOUND TO RISE AGAIN
 The shipping industry entered 2015 on mixed emotions, as a relatively buoyant tanker market is met by a rather lackluster dry bulk market. Still, all ship owners will undoubtedly be happy about the fact that the most important cost driving factor, bunker prices, are way down since the same period of last year. In fact, bunker prices are down by more than 30% since last year, as already, by the end of November of 2014, the cost of Heavy Fuel Oil (HFO) in Fujairah had declined to $460 per metric ton from an average of $609/mt over the first six months of 2014. That’s already a reduction of 24% and more has come since then, on the back of constantly declining crude prices.
Given the fact that bunker prices is the biggest factor in a ship’s operating costs, that kind of reduction is rather significant and one which can offset any loss in terms of freight rates. Thus, ship owners can take advantage of this low cost environment and increase their earnings, through the subsequent fall of OPEX. On the other hand, other factor like the new fuel efficient vessels, or slow steaming are coming into play.
According to a recent report from Poten & Partners, “due to the high oil prices over the last couple of years and the anticipation of continuing high prices in the future, owners have made operational adjustments by utilizing slow steaming on the ballast leg of a voyage, while shipyards and engine manufacturers have worked hard to improve the fuel efficiency of new ships. Using a VLCC as the basis for such analysis as the longer voyages benefit relatively more from fuel efficiency, we use a 2007 built VLCC ordered when HFO prices were around $160/MT and a modern 2013 built VLCC. Vessels can vary significantly in their fuel consumption, both through design and over time, dependent on the condition of the hull paint, etc. The modern vessel in our example saves 7 tons/day in laden condition compared to the older design and 4 tons/day while in ballast. For the comparison we will use the typical VLCC round trip voyage from Ras Tanura to Chiba using the current fuel price ($460/MT) and the average price during the first 6 months of 2014 ($609/MT). On the round trip, the fuel efficient vessel saves $116,200 in fuel with current prices and $151,500 in the higher price environment compared to the 2007 built vessel. This represents savings of $2,179/day in time charter equivalent (TCE) at current bunker prices and $2,839 at 2014H1 bunker prices”.
Poten added that “in order to improve TCE, owners have made operational adjustments by slow steaming during the ballast leg of the voyages, and during the laden leg where it was permitted in the charter party. This helps the owners by improving the economics on individual voyages as the fuel cost savings more than offset the longer steaming time when the market is low. An added benefit is that slow steaming reduces the efficiency or the fleet as more vessels are needed to move the same volume of cargo. Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings. At current market rates and lower bunker prices, this situation has shifted. At least for the vessel and voyage combination in our example, increasing the ballast speed could prove to be beneficial. The situation could be different for other vessels and voyages, but it makes the case for owners to run the numbers. The benefits of fuel efficient designs might have been reduced for now but the investment is for 20+ years and fuel prices are likely to increase again in the future”, the analyst concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 02 February 15
INDONESIA'S ADARO ENERGY PRODUCED 56.21 MILLION TONNES OF COAL IN 2014; UP 8% Y-O-Y
COALspot.com: PT. Adaro Energy, Indonesia’s largest coal producer, has increased coal production by 8% to 56.21 million tonnes (Mt) from both ...
Monday, 02 February 15
API 8 CFR SOUTH CHINA COAL SWAP PICKS UP W-O-W
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery declined US$ 0.81 (-1.36%) per MT month over month and gained US$ 0.18&nb ...
Monday, 02 February 15
SOUTH KOREA'S KOMIPO INVITES BIDS FOR 280K MT OF SUB-BITUMINOUS COAL
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) issued an new tender to buy total 280,000 MT of Sub-bituminous coal coa ...
Sunday, 01 February 15
INDONESIA-TO-INDIA COAL FREIGHT RATES REMAIN WEAK NEXT WEEK
COALspot.com: The BDI continued its fall reached lowest levels since 1986 this week.
The BDI declined 15.55 pct to 608 points on Friday 30, Ja ...
Friday, 30 January 15
CONTANGO AND TANKERS - SKULD
KNOWLEDGE TO ELEVATE
Like an invitation to a dance, the word contango may have some people flustered, but for tanker owners this market phenome ...
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- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- PTC India Limited - India
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Price Waterhouse Coopers - Russia
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Global Green Power PLC Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Bangladesh Power Developement Board
- Romanian Commodities Exchange
- Chamber of Mines of South Africa
- Kideco Jaya Agung - Indonesia
- Latin American Coal - Colombia
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Mintek Dendrill Indonesia
- ICICI Bank Limited - India
- Kumho Petrochemical, South Korea
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- Wilmar Investment Holdings
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Global Business Power Corporation, Philippines
- Standard Chartered Bank - UAE
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Sojitz Corporation - Japan
- Xindia Steels Limited - India
- Independent Power Producers Association of India
- Mjunction Services Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Coal and Oil Company - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Cement Manufacturers Association - India
- Planning Commission, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Indika Energy - Indonesia
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Makarim & Taira - Indonesia
- Electricity Authority, New Zealand
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- VISA Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- White Energy Company Limited
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Lanco Infratech Ltd - India
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Essar Steel Hazira Ltd - India
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Renaissance Capital - South Africa
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Siam City Cement PLC, Thailand
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- SN Aboitiz Power Inc, Philippines
- Ambuja Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- LBH Netherlands Bv - Netherlands
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Meenaskhi Energy Private Limited - India
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Wood Mackenzie - Singapore
- Binh Thuan Hamico - Vietnam
- Siam City Cement - Thailand
- International Coal Ventures Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Orica Mining Services - Indonesia
- Sakthi Sugars Limited - India
- Baramulti Group, Indonesia
- Barasentosa Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Meralco Power Generation, Philippines
- ASAPP Information Group - India
- Eastern Energy - Thailand
- Kapuas Tunggal Persada - Indonesia
- Therma Luzon, Inc, Philippines
- Mercator Lines Limited - India
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Ceylon Electricity Board - Sri Lanka
- Metalloyd Limited - United Kingdom
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- Madhucon Powers Ltd - India
- Bhatia International Limited - India
- Jaiprakash Power Ventures ltd
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Mercuria Energy - Indonesia
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- Economic Council, Georgia
- Tata Chemicals Ltd - India
- Kartika Selabumi Mining - Indonesia
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Attock Cement Pakistan Limited
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- TeaM Sual Corporation - Philippines
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Timah Investasi Mineral - Indoneisa
- Toyota Tsusho Corporation, Japan
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Banpu Public Company Limited - Thailand
- Iligan Light & Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Trasteel International SA, Italy
- Sarangani Energy Corporation, Philippines
- Singapore Mercantile Exchange
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Edison Trading Spa - Italy
- Rio Tinto Coal - Australia
- MS Steel International - UAE
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