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Saturday, 28 March 15
THE DRY BULK FLEET AT BREAKING POINT - CLARKSONS
 The severe oversupply in the bulkcarrier fleet has contributed to the current trough in the dry bulk market, putting considerable financial pressure on owners, many of whom are subject to earnings close to operating costs. This has triggered a surge in bulkcarrier demolition since the beginning of 2015. If the current rate of scrapping were to continue, there would be a clear impact on dry bulk fleet growth.
A Surge In Scrapping
Bulker demolition has surged in recent months, due to an oversupplied fleet, cooling global dry bulk trade growth and low vessel earnings. A total of 78 vessels (of a combined 5.9m dwt) were reported scrapped in the first two months of 2015, equivalent to 35% of total bulkcarrier demolition in 2014. Capesize scrapping totalled 3.3m dwt, accounting for 56% of all bulker demolition in the two month period, already equivalent to around 80% of scrapping in the sector last year. The average age at which bulker vessels were scrapped has thus fallen to below 25 years for the first time this century.
How Does It Compare?
The annual record level of bulker demolition was 33.4m dwt in 2012, coinciding with a 30% y-o-y drop in average earnings. While earnings were weak, some market indicators were considerably better than they are today. Seaborne dry bulk trade grew 7% (with 3% projected for this year) and the Baltic Dry Index averaged over 900, far above the record low of 509 reached in February 2015. In the first two months of 2015 overall bulker earnings averaged $6,545/day: around $2,000/day less than the annual average for 2012. It is therefore perhaps no surprise that demolition is surging.
The Uneven Distribution
There are several potential impacts of growth in demolition. The Chinese bulkcarrier fleet shrank in 2014, partly due to the government scrapping subsidy. The subsidy is currently set to end this year and with many of the vessels scrapped in the year to date being Chinese-owned, this could shrink the Chinese fleet further. Also, the faster pace of Handysize demolition in Q1 2015 has led the Handymax sector to consolidate its position as the largest in the dry bulk fleet in terms of vessel numbers.
An Interesting Scenario
One very important impact of the surge is the potential stemming of fleet growth. Total bulker scrapping is currently projected to increase by around 30% y-o-y, to reach 21.2m dwt in 2015. However, at the current pace of scrapping, demolition in Q1 2015 could approach a record level, and in the full year, over 35m dwt of bulkers would be scrapped, more than doubling last year’s total. This could slow growth in the bulkcarrier fleet to around 2.5% y-o-y, which would represent the slowest rate in more than a decade. In this scenario Capesize fleet growth would be limited to around 2-3%.
So demolition is surging, and could approach record levels, altering the make-up of the bulker fleet, in terms of age, the distribution across sectors and owner nationality. And whether records are broken or not this year, the increase in demolition will have a clear impact on the rate of fleet expansion.
Source: Clarksons | Hellenic Shipping News
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Friday, 10 April 15
US COAL PRODUCTION FELL 4.7% W-O-W : EIA
COALspot.com – United States the second largest coal producer in the world has produced approximately totaled an estimated 17.4 million short ...
Friday, 10 April 15
DRY BULK MARKET'S DOWNFALL ALSO OFFER INVESTMENT BARGAINS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Dry bulk market rates have fallen to historical lows over the past few weeks, with no clear path of recovery, at least in the near term. As such, m ...
Thursday, 09 April 15
CAPESIZE: RATES ARE STILL DISAPPOINTING - FEARNLEYS
Handy
The handy market had a stronger sentiment before the Easter holidays, but have as the bigger panamaxes seen a softening tendency this week. ...
Wednesday, 08 April 15
DRY BULK MARKET SEEMS UNABLE TO CATCH A BREAK - INTERMODAL
COALspot.com: The Dry Bulk market seems unable to catch a break these days.
According to Intermodal, following the market stabilization that p ...
Wednesday, 08 April 15
CHINA BURNS HALF OF THE WORLD'S COAL - CHRISTOPHER T. WHITTY
Intermodal Weekly Market Update
China is the world's largest consumer of coal, using more coal each year than the United States, the Europ ...
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- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
- Mjunction Services Limited - India
- Gujarat Sidhee Cement - India
- Aditya Birla Group - India
- Coastal Gujarat Power Limited - India
- SMG Consultants - Indonesia
- London Commodity Brokers - England
- VISA Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Krishnapatnam Port Company Ltd. - India
- The Treasury - Australian Government
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- Latin American Coal - Colombia
- Timah Investasi Mineral - Indoneisa
- Parry Sugars Refinery, India
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Planning Commission, India
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Independent Power Producers Association of India
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Malabar Cements Ltd - India
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- McConnell Dowell - Australia
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Minerals Council of Australia
- GN Power Mariveles Coal Plant, Philippines
- Bangladesh Power Developement Board
- SMC Global Power, Philippines
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- ASAPP Information Group - India
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- PowerSource Philippines DevCo
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Parliament of New Zealand
- OPG Power Generation Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Videocon Industries ltd - India
- Commonwealth Bank - Australia
- Ceylon Electricity Board - Sri Lanka
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Georgia Ports Authority, United States
- Holcim Trading Pte Ltd - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Marubeni Corporation - India
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Power Finance Corporation Ltd., India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Orica Australia Pty. Ltd.
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- PTC India Limited - India
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Coal Blending Company Limited - Australia
- Merrill Lynch Commodities Europe
- Bukit Baiduri Energy - Indonesia
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Star Paper Mills Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Australian Commodity Traders Exchange
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- LBH Netherlands Bv - Netherlands
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Sical Logistics Limited - India
- Manunggal Multi Energi - Indonesia
- Indonesian Coal Mining Association
- Formosa Plastics Group - Taiwan
- Tamil Nadu electricity Board
- Essar Steel Hazira Ltd - India
- Bulk Trading Sa - Switzerland
- The University of Queensland
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Medco Energi Mining Internasional
- Coal and Oil Company - UAE
- The State Trading Corporation of India Ltd
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- San Jose City I Power Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- Ambuja Cements Ltd - India
- Central Electricity Authority - India
- Kartika Selabumi Mining - Indonesia
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Ministry of Mines - Canada
- Uttam Galva Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Mercator Lines Limited - India
- White Energy Company Limited
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
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