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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 $2,839 at 2014H1 bunker prices”.
Poten added that “in order to improve TCE, owners have made operational adjustments by slow steaming during the ballast leg of the voyages, and during the laden leg where it was permitted in the charter party. This helps the owners by improving the economics on individual voyages as the fuel cost savings more than offset the longer steaming time when the market is low. An added benefit is that slow steaming reduces the efficiency or the fleet as more vessels are needed to move the same volume of cargo. Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings. At current market rates and lower bunker prices, this situation has shifted. At least for the vessel and voyage combination in our example, increasing the ballast speed could prove to be beneficial. The situation could be different for other vessels and voyages, but it makes the case for owners to run the numbers. The benefits of fuel efficient designs might have been reduced for now but the investment is for 20+ years and fuel prices are likely to increase again in the future”, the analyst concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 16 December 14
THIS PRICE IS A STEAL - EVA TZIMA
COALspot.com: Despite concerns that the slowdown of the Chinese economy would affect imports of iron ore, it seems that this has not been the case ...
Tuesday, 16 December 14
FOB RICHARDS BAY COAL SWAP FOR Q2' 15 DELIVERY CLOSED AT US$ 65.60 PMT
COALspot.com: API 4 FOB Richards Bay Coal for delivery Q1' 2015 lost month on month.
The Q1 swap has lost US$ 0.18 (-0.27%) month on month ...
Tuesday, 16 December 14
SUB-BIT FOB INDONESIA COAL SWAP CONTINUES ITS FALL
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month, week over week and day on day.
The Q1 swap has lost US$ 1.7 ...
Monday, 15 December 14
WILL TANKERS BENEFIT FROM REEMERGENCE OF FLOATING STORAGE PLAYS? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The tanker market has been seeing high freight rates for some time now, riding on the back of low oil prices, which are boosting demand from develo ...
Monday, 15 December 14
INDONESIAN COAL PRICE REFERENCE CRASHES THROUGH $65
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price once again in December. HBA for t ...
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- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- GMR Energy Limited - India
- Minerals Council of Australia
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Rashtriya Ispat Nigam Limited - India
- Bharathi Cement Corporation - India
- Orica Mining Services - Indonesia
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Larsen & Toubro Limited - India
- Holcim Trading Pte Ltd - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karbindo Abesyapradhi - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- GAC Shipping (India) Pvt Ltd
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
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- Miang Besar Coal Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- Mercuria Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Sical Logistics Limited - India
- Coastal Gujarat Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Power Finance Corporation Ltd., India
- Ministry of Transport, Egypt
- Commonwealth Bank - Australia
- Singapore Mercantile Exchange
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- Bayan Resources Tbk. - Indonesia
- Thiess Contractors Indonesia
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Thai Mozambique Logistica
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Therma Luzon, Inc, Philippines
- Mercator Lines Limited - India
- Mintek Dendrill Indonesia
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- The Treasury - Australian Government
- Aditya Birla Group - India
- Agrawal Coal Company - India
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- OPG Power Generation Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- VISA Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Indian Energy Exchange, India
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Ind-Barath Power Infra Limited - India
- Samtan Co., Ltd - South Korea
- Essar Steel Hazira Ltd - India
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Metalloyd Limited - United Kingdom
- Carbofer General Trading SA - India
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Cement Manufacturers Association - India
- Global Business Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- IHS Mccloskey Coal Group - USA
- Alfred C Toepfer International GmbH - Germany
- Globalindo Alam Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Barasentosa Lestari - Indonesia
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- Gujarat Sidhee Cement - India
- New Zealand Coal & Carbon
- SMG Consultants - Indonesia
- Ministry of Mines - Canada
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- India Bulls Power Limited - India
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- Riau Bara Harum - Indonesia
- Anglo American - United Kingdom
- Australian Commodity Traders Exchange
- Bukit Baiduri Energy - Indonesia
- Malabar Cements Ltd - India
- Semirara Mining Corp, Philippines
- Eastern Coal Council - USA
- AsiaOL BioFuels Corp., Philippines
- Kapuas Tunggal Persada - Indonesia
- Africa Commodities Group - South Africa
- Eastern Energy - Thailand
- Standard Chartered Bank - UAE
- Bulk Trading Sa - Switzerland
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- Gujarat Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Indian Oil Corporation Limited
- ASAPP Information Group - India
- Trasteel International SA, Italy
- CNBM International Corporation - China
- Ambuja Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Antam Resourcindo - Indonesia
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- PTC India Limited - India
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Planning Commission, India
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- Indonesian Coal Mining Association
- White Energy Company Limited
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- Sree Jayajothi Cements Limited - India
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Formosa Plastics Group - Taiwan
- ICICI Bank Limited - India
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- Romanian Commodities Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Orica Australia Pty. Ltd.
- Jindal Steel & Power Ltd - India
- Indika Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Global Green Power PLC Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Coal and Oil Company - UAE
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