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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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Wednesday, 28 January 15
CAPES CONTINUED THEIR UPWARD MOVEMENT LAST WEEK - INTERMODAL
COALspot.com: The Dry Bulk market displayed a mirror performance of that of the week prior, with the Capesize market correcting further upwards and ...
Tuesday, 27 January 15
Q1 FOB INDONESIA COAL SWAP CLOSED AT $ 47.87 FOR WEEK ENDING JAN. 23
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 gain week over week and declined month on month.
The Q1 swap has decline US$ 0.9 ...
Tuesday, 27 January 15
Q2 FOB NEWCASTLE COAL SWAP UP 4.5% W-O-W
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery declined US$ 0.28 per MT (-0.54%) month over month and increased US$ 1.23 ( ...
Monday, 26 January 15
OVERSUPPLY, AMPLE STOCKPILES, AND LACKLUSTER UNDERLYING STEEL DEMAND KEPT COKING COAL PRICES LOW IN 2014
COALspot.com: Coking coal prices (FOB & CFR) fell 15% and 18% respectively during the year, amidst persistent oversupply, ample inventory and s ...
Monday, 26 January 15
FOB RICHARDS BAY Q2 COAL SWAP CLOSED LOWER THAN Q1 CLOSING
COALspot.com: API 4 FOB Richards Bay Coal swap for delivery Q1' 2015 declined month over month and day on day.
The Q1 swap has fell ...
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- Kohat Cement Company Ltd. - Pakistan
- Banpu Public Company Limited - Thailand
- Borneo Indobara - Indonesia
- Salva Resources Pvt Ltd - India
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- Marubeni Corporation - India
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Baramulti Group, Indonesia
- Energy Development Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Sindya Power Generating Company Private Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Star Paper Mills Limited - India
- SMG Consultants - Indonesia
- White Energy Company Limited
- Aditya Birla Group - India
- Oldendorff Carriers - Singapore
- Heidelberg Cement - Germany
- Standard Chartered Bank - UAE
- Planning Commission, India
- Australian Coal Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Antam Resourcindo - Indonesia
- MS Steel International - UAE
- Chamber of Mines of South Africa
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Malabar Cements Ltd - India
- Meralco Power Generation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Wood Mackenzie - Singapore
- Eastern Energy - Thailand
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- VISA Power Limited - India
- Videocon Industries ltd - India
- Kalimantan Lumbung Energi - Indonesia
- PTC India Limited - India
- Global Business Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Global Coal Blending Company Limited - Australia
- Edison Trading Spa - Italy
- Xindia Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Ministry of Finance - Indonesia
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- Bhoruka Overseas - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Interocean Group of Companies - India
- Commonwealth Bank - Australia
- Kepco SPC Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Posco Energy - South Korea
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Bayan Resources Tbk. - Indonesia
- Kobexindo Tractors - Indoneisa
- Simpson Spence & Young - Indonesia
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- Intertek Mineral Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Global Green Power PLC Corporation, Philippines
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Sinarmas Energy and Mining - Indonesia
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- Orica Australia Pty. Ltd.
- Uttam Galva Steels Limited - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Jaiprakash Power Ventures ltd
- Sojitz Corporation - Japan
- Formosa Plastics Group - Taiwan
- Therma Luzon, Inc, Philippines
- Bulk Trading Sa - Switzerland
- Bukit Makmur.PT - Indonesia
- Petron Corporation, Philippines
- Agrawal Coal Company - India
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- Bharathi Cement Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Minerals Council of Australia
- Jorong Barutama Greston.PT - Indonesia
- Ambuja Cements Ltd - India
- GVK Power & Infra Limited - India
- Indian Energy Exchange, India
- Ceylon Electricity Board - Sri Lanka
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- Kumho Petrochemical, South Korea
- Altura Mining Limited, Indonesia
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
- Australian Commodity Traders Exchange
- Neyveli Lignite Corporation Ltd, - India
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- GMR Energy Limited - India
- Thai Mozambique Logistica
- Globalindo Alam Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Mercuria Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Indonesian Coal Mining Association
- India Bulls Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Maheswari Brothers Coal Limited - India
- Gujarat Sidhee Cement - India
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- Maharashtra Electricity Regulatory Commission - India
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- IEA Clean Coal Centre - UK
- Sree Jayajothi Cements Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Sical Logistics Limited - India
- Ind-Barath Power Infra Limited - India
- Georgia Ports Authority, United States
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- PowerSource Philippines DevCo
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- The Treasury - Australian Government
- Makarim & Taira - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Bukit Baiduri Energy - Indonesia
- Siam City Cement - Thailand
- London Commodity Brokers - England
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- LBH Netherlands Bv - Netherlands
- The University of Queensland
- Thiess Contractors Indonesia
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Karaikal Port Pvt Ltd - India
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
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