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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, most ship owners are finding themselves caught “between a rock and hard place”. But is it really this the case? Some shipbrokers believe that the current market environment has also one important side effect, the fall of asset prices, which means that dry bulk ships are getting cheaper by the day. As such, cash-rich ship owners could easily take advantage of knock down prices, especially as more and more distressed sales could emerge in the coming weeks.
According to the latest report from shipbroker Allied Shipbroking, “while dry bulk owners start to feel that they have managed to get out of one bad patch, everyone starts to point at yet another up ahead. It seems to be a perfect storm unfolding and one that many will claim was more than expected. Yet amidst poor sentiment in the freight market is were real opportunity is born. The market will eventually recovery and those who manage to take the right pickings during the bottom are often herald as the pioneers and holders of true foresight of what lays ahead. However it is never as clear as that. Taking on any investment decision, as things stand now, seems to be bor-derline crazy. Earnings are hovering at around OPEX levels, often with owners search-ing into their own pockets in order to cover the cost of voyages they have fixed”, said Mr. George Lazaridis, Head of Market Research & Asset Valuations.
He added that “amidst all this pessimism is where you will also find sufficient discounts in the prices of secondhand assets which will provide the ample promise for reward that would com-pensate the current risk. One such size segment that shows to have a good ratio of risk against potential reward is that of the Hadysize vessels and particularly modern vessels on the larger end of the size spectrum (ie.35-38,000dwt). Prices for these assets have never been lower and compared to placing a new contracting on one of the “hungry for orders” shipyards, the discount is more than enough. At a price of US$ 13.5m for a 5 year old unit you get a discount of close to 40% which is equal to close to 8% deprecia-tion in value per year. But one may ask, why is this any different to the larger Supras and Panamaxes which offer similar if not better discounts on modern units?”.
“Handysize vessels seem to hold one more ace up the sleeve. Last month we witnessed yet another drop in size of the fleet in terms of number of vessels. The fleet now stands now stands at 2,437 which is only 3 more vessels then what there was on the 1st of January 2015. This becomes all the more noteworthy when you consider that this has happened during a period in the year were new building deliveries are more intense (everyone wants to benefit from having their vessel written as built in the new year), while also worth noting is the limited orderbook compared to the strong number of vessels in the fleet which are currently over 25 years of age”, said Lazaridis.
Earlier in the week, ship owner Pacific Basin, which is focused in the smaller ship classes, said that “in the Handysize and Handymax segments, where “market spot rates averaged US$5,070 and US$6,110 per day net respectively in the first quarter of 2015, representing a 45% reduction in average rates compared to the same period last year. Newbuilding deliveries deferred from 2014 into January and February coincided with the lunar new year holidays seasonal demand slowdown in China and seasonal export disruptions in key trade areas. Together, these pulled the Baltic Dry Index (BDI) to its lowest since indices began in 1985. However, spot market rates for Handysize and Handymax vessels have gradually improved since lunar new year, albeit from a very low base”, concluded Pacific Basin”.
Lazaridis concluded his analysis by noting that “all this put together allows for better prospects and in essence lower risk while providing comparatively similar asset play returns (in percentage terms) with that of the larger sizes. To close off, it is always worth noting that there is a bright side to every market slump as there is also a dark side to every market boom. Both need caution and proper estimating of the kind of risk/reward one engages with”.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 25 March 15
MARKET INSIGHT: TANKER CHARTERING - KATERINA RESTIS
The 1st of January 2015, as broadly reported, denoted the beginning date of new and progressive emission regulations for vessels operating within t ...
Wednesday, 25 March 15
AUSTRALIA SET TO ONCE AGAIN BE THE WORLD'S LARGEST COAL EXPORTER - COAL, MINERALS COUNCIL OF AUSTRALIA
Greg Evans, Executive Director - Coal, Minerals Council of Australia
Media Release: The latest Resources and Energy Quarterly published by the ...
Wednesday, 25 March 15
AUSTRALIA UPSTREAM ENERGY FIRMS FACE RISING OIL PRICE EXPOSURE - FITCH
Fitch Ratings says the Australian oil and gas companies involved in exploration and production face higher exposure to oil price-linked revenues, w ...
Wednesday, 25 March 15
2014 : UK COAL IMPORTS DECLINED 17%; GERMANY COAL IMPORTS UP 6%
Hard Coal Market 2014: Despite The Energy Turnaround, Hard Coal Imports To Germany Rise By More Than 6%, Although Hard Coal-Fired Power Generation ...
Tuesday, 24 March 15
A WEAK WEEK FOR FOB INDONESIA COAL SWAP
COALspot.com: Indonesian coal swaps for delivery Q2' 2015 drop month on month and week over week.
The Q2 swap fell US$ 2.48 (5.12%) month ...
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- Sarangani Energy Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Bharathi Cement Corporation - India
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- Coal and Oil Company - UAE
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Grasim Industreis Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Marubeni Corporation - India
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Parry Sugars Refinery, India
- Bayan Resources Tbk. - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Indika Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- The Treasury - Australian Government
- Merrill Lynch Commodities Europe
- Orica Australia Pty. Ltd.
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Eastern Energy - Thailand
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Star Paper Mills Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Sree Jayajothi Cements Limited - India
- Global Business Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Energy Development Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
- Heidelberg Cement - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The State Trading Corporation of India Ltd
- ICICI Bank Limited - India
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- Makarim & Taira - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Malabar Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- Central Electricity Authority - India
- Global Green Power PLC Corporation, Philippines
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- CNBM International Corporation - China
- McConnell Dowell - Australia
- Xindia Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Manunggal Multi Energi - Indonesia
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Orica Mining Services - Indonesia
- Tamil Nadu electricity Board
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Ministry of Transport, Egypt
- Binh Thuan Hamico - Vietnam
- Uttam Galva Steels Limited - India
- Posco Energy - South Korea
- Jaiprakash Power Ventures ltd
- Edison Trading Spa - Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- VISA Power Limited - India
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Madhucon Powers Ltd - India
- Minerals Council of Australia
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Goldman Sachs - Singapore
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- Banpu Public Company Limited - Thailand
- Energy Link Ltd, New Zealand
- Attock Cement Pakistan Limited
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Meralco Power Generation, Philippines
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- SN Aboitiz Power Inc, Philippines
- Bhushan Steel Limited - India
- Meenaskhi Energy Private Limited - India
- Petron Corporation, Philippines
- Antam Resourcindo - Indonesia
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- Videocon Industries ltd - India
- Wood Mackenzie - Singapore
- Metalloyd Limited - United Kingdom
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- Oldendorff Carriers - Singapore
- The University of Queensland
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- CIMB Investment Bank - Malaysia
- Rashtriya Ispat Nigam Limited - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Kepco SPC Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Bhoruka Overseas - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- TNB Fuel Sdn Bhd - Malaysia
- Savvy Resources Ltd - HongKong
- Independent Power Producers Association of India
- Salva Resources Pvt Ltd - India
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- Sical Logistics Limited - India
- Australian Coal Association
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Port Waratah Coal Services - Australia
- LBH Netherlands Bv - Netherlands
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- Aditya Birla Group - India
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Medco Energi Mining Internasional
- India Bulls Power Limited - India
- Ministry of Finance - Indonesia
- Gujarat Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Africa Commodities Group - South Africa
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