We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 19 December 14
U.S WEEKLY COAL PRODUCTION REACHED APPROXIMATELY 19.8 MMST; UP 1.0% WOW
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.8 million short tons (mmst) of coal ...
Friday, 19 December 14
HANDY: SOFTER TONE; PANAMAX: QUIET WEEK; CAPESIZE; PAINFUL WEEK
Handy
A softer tone for rates and volumes for the Supras, perhaps less apparent in the Pacific the last week before the season holidays and good ...
Thursday, 18 December 14
INDONESIA TO REVISE UP COAL OUTPUT TARGET TO 460 MILLION TONS IN 2015
COALspot.com: Indonesian government has revised up its next year coal output forecast to 460 million tons from its previous forecast of 421 million ...
Wednesday, 17 December 14
CAPES RATES SLIPPED BELOW $5,600/DAY, FELL 84% YOY
COALspot.com: In the very rare occurrence when the BCI stands below the BDI, words to describe market sentiment are probably poor, said Intermodal ...
Wednesday, 17 December 14
MARKET INSIGHT - INTERMODAL SHANGHAI, SNP TEAM
As the end of the fourth quarter is approaching, we are all witness to the second hand market prices softening day by day. Any new deal surfacing t ...
|
|
|
Showing 3301 to 3305 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- GMR Energy Limited - India
- PTC India Limited - India
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Sidhee Cement - India
- Bayan Resources Tbk. - Indonesia
- Banpu Public Company Limited - Thailand
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- VISA Power Limited - India
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Australian Coal Association
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Maheswari Brothers Coal Limited - India
- Kideco Jaya Agung - Indonesia
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Borneo Indobara - Indonesia
- Oldendorff Carriers - Singapore
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- Ministry of Mines - Canada
- Thai Mozambique Logistica
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Planning Commission, India
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Power Finance Corporation Ltd., India
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- Eastern Coal Council - USA
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Merrill Lynch Commodities Europe
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Toyota Tsusho Corporation, Japan
- Xindia Steels Limited - India
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- Central Java Power - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Bhushan Steel Limited - India
- Eastern Energy - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Singapore Mercantile Exchange
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Australian Commodity Traders Exchange
- Simpson Spence & Young - Indonesia
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Intertek Mineral Services - Indonesia
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- IHS Mccloskey Coal Group - USA
- Kepco SPC Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- Georgia Ports Authority, United States
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Binh Thuan Hamico - Vietnam
- Sical Logistics Limited - India
- Holcim Trading Pte Ltd - Singapore
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Posco Energy - South Korea
- Electricity Authority, New Zealand
- SN Aboitiz Power Inc, Philippines
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Directorate General of MIneral and Coal - Indonesia
- TeaM Sual Corporation - Philippines
- SMC Global Power, Philippines
- Bhoruka Overseas - Indonesia
- Barasentosa Lestari - Indonesia
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Cigading International Bulk Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- IEA Clean Coal Centre - UK
- Videocon Industries ltd - India
- The University of Queensland
- Cement Manufacturers Association - India
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Global Business Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Medco Energi Mining Internasional
- White Energy Company Limited
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Parliament of New Zealand
- Madhucon Powers Ltd - India
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- ICICI Bank Limited - India
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- The State Trading Corporation of India Ltd
- South Luzon Thermal Energy Corporation
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- PNOC Exploration Corporation - Philippines
- PowerSource Philippines DevCo
- Deloitte Consulting - India
- Karbindo Abesyapradhi - Indoneisa
- Coal and Oil Company - UAE
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Marubeni Corporation - India
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mjunction Services Limited - India
|
| |
| |
|
