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Thursday, 30 June 16
OIL PRODUCT TANKERS EARNINGS DECLINE AS STOCKBUILDING SLOWS DOWN - BIMCO
 BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.
The oil product tanker market has reached a net fleet growth of 4.3m DWT so far in 2016. That is well in line with BIMCO’s full estimate of 8.5m DWT for the full year 2016. The main drivers of the total growth continue to be the MRs and LR2s.
With a net fleet growth of 5.8 % in 2015, the oil product tankers are looking to continue the trend of elevated supply growth with 3.0 % growth so far in 2016 – for the full year BIMCO expects 6.0 %.
Chief Analyst Peter Sand comments: “The LR2s and MRs are the leading segments for fleet growth in the oil product tanker market – in percentage as well as DWT in 2014 and 2015. This trend continues into the first half of 2016. Based on the current and anticipated new orders, BIMCO expects the net fleet growth in 2016 to be around the same level as in 2015 and likely to come down in 2017.
The earnings have been in decline since the beginning of 2016 and are actually at the lowest since Q3 in 2014. The reason for the decline is a combination of fleet growth alongside the deceleration of oil product stock building that was seen at the end of 2015 and early 2016. This is diminishing demand growth. While oil product production has been running ahead of end consumption, oil product tanker demand has risen above trend”.
Earnings decreasing into Q2 2016
All four oil product tanker segments have experienced an overall decline in earnings in 2016, with the LR2 seeing a 54 % decline from USD 33,966 per day from 1 January 2016 to USD 15,703 per day on 24 June 2016.
Peter Sand adds: “Due to our expectations that the freight rates would decline, we recommended back in January to fix some capacity on longer timecharters for companies with a high exposure to the spot market. We still see this need. As the spot rates are declining it is important to manage your risk and exposure to the market, as earnings could drop even further”.
Despite the demand side growing more than anticipated, the inflow of new tonnage has affected the freight market fundamentals and led to the present earnings.
Demand and supply for global oil is set to even out in Q3.
The demand growth for global oil according to The International Energy Agency (IEA) is up by 1.4 million barrels per day (mb/d) year on year for Q1 2016, compared to the previous expected 1.2 mb/d. Furthermore, they expect the demand and supply for global oil to be in balance in Q3 2016.
Peter Sand comments: “This balance puts an overhanging risk onto the global oil stockbuilding, which we have seen being built up on a large scale since mid-2014. When the global oil supply no longer outstrips global oil demand and the refineries cannot take advantage of the low and volatile crude oil prices, they do not contribute to further stockbuilding.
The increase in global oil demand and eventual levelling out over supply of oil means we will stop building stocks. We may even begin to draw down on the swollen stocks. This in turn presents an outside risk to the oil product tanker market. However, we could also see the new stock levels become permanent and so the tanker demand will not be affected in this way. Only time will tell how the dynamics will play out”.
Source: BIMCO
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Monday, 11 July 16
THE MAIN SEA FREIGHT INDEX, BDI ROSE FURTHER ON 8 JULY DUE TO STRONG DEMAND FOR PANAMAX SHIPS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose this past week. The BDI was up 3.84 percent from las ...
Monday, 11 July 16
DRY BULK MARKET: UP TO 30 MILLION DWT OF OLDER BULKERS WILL NEED TO BE SCRAPPED BY END OF 2017 FOR MARKET TO FIND BALANCE
Tonnage oversupply in the dry bulk market is more than evident, as newbuildings have been hitting the water faster than owners can scrap their olde ...
Friday, 08 July 16
U.S. WEEKLY COAL OUTPUT UP 3% TO 14.1 MMST - EIA
COALspot.com – U.S, world’s second largest coal producers has produced approximately totalled an estimated 14.1 million short tons (mms ...
Thursday, 07 July 16
PANAMAX : THE TENDENCY FROM LAST WEEK CONTINUES WITH A CONSIDERABLY STRONGER SENTIMENT ALL ACROSS THE BLOCK - FEARNLEYS
Capesize
Rates have been holding at steady levels over the last weeks but towards end of this period they are becoming under more pressure as gen ...
Thursday, 07 July 16
CONSOLIDATION TO RULE OVER SHIPPING, AS EXECUTIVES SEEK INVESTMENT OPPORTUNITIES IN CHINA, INDIA AND EUROPE SAYS NORTON ROSE SURVEY
The transport sector is looking to Asia Pacific as the key market for investment over the next five years, according to the seventh The way ahead T ...
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- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Malabar Cements Ltd - India
- Medco Energi Mining Internasional
- Therma Luzon, Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Parliament of New Zealand
- PTC India Limited - India
- Makarim & Taira - Indonesia
- The State Trading Corporation of India Ltd
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- Kepco SPC Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Bharathi Cement Corporation - India
- Merrill Lynch Commodities Europe
- Eastern Coal Council - USA
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Standard Chartered Bank - UAE
- Planning Commission, India
- Coal and Oil Company - UAE
- Manunggal Multi Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Central Electricity Authority - India
- Jorong Barutama Greston.PT - Indonesia
- Larsen & Toubro Limited - India
- Ambuja Cements Ltd - India
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Renaissance Capital - South Africa
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Commonwealth Bank - Australia
- Ministry of Mines - Canada
- IHS Mccloskey Coal Group - USA
- Kohat Cement Company Ltd. - Pakistan
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Madhucon Powers Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Grasim Industreis Ltd - India
- SN Aboitiz Power Inc, Philippines
- Trasteel International SA, Italy
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Cement Manufacturers Association - India
- AsiaOL BioFuels Corp., Philippines
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Directorate Of Revenue Intelligence - India
- Georgia Ports Authority, United States
- Central Java Power - Indonesia
- Wood Mackenzie - Singapore
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Sinarmas Energy and Mining - Indonesia
- The University of Queensland
- Meralco Power Generation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- London Commodity Brokers - England
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Jaiprakash Power Ventures ltd
- Chettinad Cement Corporation Ltd - India
- OPG Power Generation Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- SMC Global Power, Philippines
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Thiess Contractors Indonesia
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Leighton Contractors Pty Ltd - Australia
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- Indo Tambangraya Megah - Indonesia
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Mercator Lines Limited - India
- Port Waratah Coal Services - Australia
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Antam Resourcindo - Indonesia
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhoruka Overseas - Indonesia
- Meenaskhi Energy Private Limited - India
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Marubeni Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- GN Power Mariveles Coal Plant, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- SMG Consultants - Indonesia
- Goldman Sachs - Singapore
- Interocean Group of Companies - India
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- Rio Tinto Coal - Australia
- Lanco Infratech Ltd - India
- Sindya Power Generating Company Private Ltd
- Binh Thuan Hamico - Vietnam
- Alfred C Toepfer International GmbH - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Vedanta Resources Plc - India
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Vijayanagar Sugar Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Mintek Dendrill Indonesia
- New Zealand Coal & Carbon
- PetroVietnam Power Coal Import and Supply Company
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Samtan Co., Ltd - South Korea
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- Wilmar Investment Holdings
- Xindia Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Singapore Mercantile Exchange
- Romanian Commodities Exchange
- Chamber of Mines of South Africa
- Sical Logistics Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement - Thailand
- Kapuas Tunggal Persada - Indonesia
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Coalindo Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Mjunction Services Limited - India
- McConnell Dowell - Australia
- Sakthi Sugars Limited - India
- Anglo American - United Kingdom
- Australian Coal Association
- VISA Power Limited - India
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kumho Petrochemical, South Korea
- Bhatia International Limited - India
- Aditya Birla Group - India
- Global Coal Blending Company Limited - Australia
- White Energy Company Limited
- Oldendorff Carriers - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Africa Commodities Group - South Africa
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
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