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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 $2,839 at 2014H1 bunker prices”.
Poten added that “in order to improve TCE, owners have made operational adjustments by slow steaming during the ballast leg of the voyages, and during the laden leg where it was permitted in the charter party. This helps the owners by improving the economics on individual voyages as the fuel cost savings more than offset the longer steaming time when the market is low. An added benefit is that slow steaming reduces the efficiency or the fleet as more vessels are needed to move the same volume of cargo. Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings. At current market rates and lower bunker prices, this situation has shifted. At least for the vessel and voyage combination in our example, increasing the ballast speed could prove to be beneficial. The situation could be different for other vessels and voyages, but it makes the case for owners to run the numbers. The benefits of fuel efficient designs might have been reduced for now but the investment is for 20+ years and fuel prices are likely to increase again in the future”, the analyst concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 26 January 15
API 8 CFR SOUTH CHINA COAL SWAP CONTINUE TO SLIDE M-O-M; ROSE W-O-W
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery declined US$ 0.79 (-1.33%) per MT month over month and gained US$ 2.10&nb ...
Sunday, 25 January 15
PANAMAX FREIGHT RATES STILL FALLING
COALspot.com: The BDI was slightly down this week to 720 points. The BDI lost 2.83 pct week on week.
The cape index continued its upward trend ...
Friday, 23 January 15
U.S. WEEKLY COAL PRODUCTION FOR WEEK ENDING JAN. 17 UP 2.5%
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.4 million short tons (mmst) of coal ...
Thursday, 22 January 15
PANAMAX: A SOFTER TONE AND OVERALL A SLUGGISH MARKET - FEARNLEYS
Handy
The handy and supra market has experienced yet another week with slow activity and softening rates in both hemispheres, broker Fearnleys AS ...
Thursday, 22 January 15
BUMI RESOURCES POSTS NET INCOME OF $13.3 MILLION 9M-2014
COALspot.com: Bumi Resources, Indonesia’s largest coal miner, reported today that, the company has recorded a net income of $13.3 million for ...
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- Makarim & Taira - Indonesia
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Indian Oil Corporation Limited
- Binh Thuan Hamico - Vietnam
- Sical Logistics Limited - India
- Jaiprakash Power Ventures ltd
- Bhatia International Limited - India
- Posco Energy - South Korea
- Petron Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Port Waratah Coal Services - Australia
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Pendopo Energi Batubara - Indonesia
- Eastern Energy - Thailand
- GVK Power & Infra Limited - India
- Ambuja Cements Ltd - India
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Altura Mining Limited, Indonesia
- Eastern Coal Council - USA
- Jorong Barutama Greston.PT - Indonesia
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Thai Mozambique Logistica
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Larsen & Toubro Limited - India
- Bayan Resources Tbk. - Indonesia
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- Orica Mining Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- The Treasury - Australian Government
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- Electricity Generating Authority of Thailand
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- Madhucon Powers Ltd - India
- CNBM International Corporation - China
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- The University of Queensland
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Indian Energy Exchange, India
- Gujarat Mineral Development Corp Ltd - India
- Simpson Spence & Young - Indonesia
- Mintek Dendrill Indonesia
- PNOC Exploration Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Riau Bara Harum - Indonesia
- Planning Commission, India
- Mercuria Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Goldman Sachs - Singapore
- Georgia Ports Authority, United States
- IHS Mccloskey Coal Group - USA
- Mercator Lines Limited - India
- India Bulls Power Limited - India
- Manunggal Multi Energi - Indonesia
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Grasim Industreis Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Cement Manufacturers Association - India
- Ministry of Mines - Canada
- Oldendorff Carriers - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Anglo American - United Kingdom
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- McConnell Dowell - Australia
- Independent Power Producers Association of India
- Bulk Trading Sa - Switzerland
- Kapuas Tunggal Persada - Indonesia
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Lanco Infratech Ltd - India
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Tamil Nadu electricity Board
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Directorate Of Revenue Intelligence - India
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- PowerSource Philippines DevCo
- Essar Steel Hazira Ltd - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Indonesian Coal Mining Association
- Trasteel International SA, Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Indika Energy - Indonesia
- Power Finance Corporation Ltd., India
- Billiton Holdings Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- Uttam Galva Steels Limited - India
- Kumho Petrochemical, South Korea
- Global Green Power PLC Corporation, Philippines
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- VISA Power Limited - India
- PTC India Limited - India
- Renaissance Capital - South Africa
- Banpu Public Company Limited - Thailand
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- Central Java Power - Indonesia
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- Xindia Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Wood Mackenzie - Singapore
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Maheswari Brothers Coal Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Parry Sugars Refinery, India
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Price Waterhouse Coopers - Russia
- LBH Netherlands Bv - Netherlands
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