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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, 07 January 15
2015 IS RIDDLED WITH CHALLENGES FOR THE SHIPPING SECTOR, MOST NOTABLY THE DRY BULK MARKET - HELLENIC SHIPPING NEWS
As the new year has now set foot for real, many are still looking to detect what’s in store for the various shipping markets, with the first ...
Tuesday, 06 January 15
SHIPPING MUST ADOPT CAN-DO ATTITUDE IN 2015 - MOORE STEPHENS
Shipping needs to adopt a can-do attitude in order to successfully meet the challenges which are likely to come its way in 2015.
Shipping part ...
Tuesday, 06 January 15
Q4' 15 FOB INDONESIA COAL SWAP CLOSED 1.81% HIGHER COMPARED TO Q1' 15 CLOSING
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month and week over week.
The Q1 swap has lost US$ 0.74 (-1.51%) m ...
Tuesday, 06 January 15
FOB RICHARDS BAY COAL SWAPS LOST W-O-W AND M-O-M, SGX DATA SHOWS
COALspot.com: API 4 FOB Richards Bay Coal for delivery Q1' 2015 lost month on month and week over week.
The Q1 swap has lost US$ 3.52 (-5. ...
Monday, 05 January 15
CFR SOUTH CHINA COAL SWAPS GAINED WEEK OVER WEEK, SGX DATA SHOWS
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery has decreased by US$ 2.50 (-4.02%) month over month and gained US$ 0.20 ( ...
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- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Georgia Ports Authority, United States
- Madhucon Powers Ltd - India
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Standard Chartered Bank - UAE
- Global Coal Blending Company Limited - Australia
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Energy Link Ltd, New Zealand
- Parliament of New Zealand
- Baramulti Group, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Borneo Indobara - Indonesia
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Salva Resources Pvt Ltd - India
- Agrawal Coal Company - India
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Orica Mining Services - Indonesia
- SMC Global Power, Philippines
- Sinarmas Energy and Mining - Indonesia
- Central Java Power - Indonesia
- Deloitte Consulting - India
- Thai Mozambique Logistica
- Coal and Oil Company - UAE
- Meralco Power Generation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Sical Logistics Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- Electricity Authority, New Zealand
- Australian Commodity Traders Exchange
- Commonwealth Bank - Australia
- Merrill Lynch Commodities Europe
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- The Treasury - Australian Government
- Tata Chemicals Ltd - India
- Indogreen Group - Indonesia
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Power Finance Corporation Ltd., India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- GMR Energy Limited - India
- Central Electricity Authority - India
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- ASAPP Information Group - India
- MS Steel International - UAE
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- Straits Asia Resources Limited - Singapore
- Globalindo Alam Lestari - Indonesia
- Edison Trading Spa - Italy
- Wood Mackenzie - Singapore
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Chettinad Cement Corporation Ltd - India
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Samtan Co., Ltd - South Korea
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Banpu Public Company Limited - Thailand
- Renaissance Capital - South Africa
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- Thiess Contractors Indonesia
- London Commodity Brokers - England
- Kaltim Prima Coal - Indonesia
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- CNBM International Corporation - China
- VISA Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Ministry of Finance - Indonesia
- Bulk Trading Sa - Switzerland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Sidhee Cement - India
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Indian Energy Exchange, India
- Economic Council, Georgia
- The University of Queensland
- Therma Luzon, Inc, Philippines
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Medco Energi Mining Internasional
- Sindya Power Generating Company Private Ltd
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- Kideco Jaya Agung - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Independent Power Producers Association of India
- Manunggal Multi Energi - Indonesia
- Oldendorff Carriers - Singapore
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Ministry of Mines - Canada
- Timah Investasi Mineral - Indoneisa
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Bayan Resources Tbk. - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bhoruka Overseas - Indonesia
- Alfred C Toepfer International GmbH - Germany
- San Jose City I Power Corp, Philippines
- Mercator Lines Limited - India
- Wilmar Investment Holdings
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Australian Coal Association
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Semirara Mining and Power Corporation, Philippines
- Mjunction Services Limited - India
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- White Energy Company Limited
- Minerals Council of Australia
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Bharathi Cement Corporation - India
- New Zealand Coal & Carbon
- Semirara Mining Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
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