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Tuesday, 25 October 16
THINGS ARE SLOWLY STARTING TO IMPROVE AS CORRECTIONS ARE MADE - ALLIED
 It seems as though left, right and centre, all we see nowadays is the word “restructuring”.
There is restructuring amongst bankers and financiers of shipping. There is restructuring amongst commodity traders. There is restructuring amongst shipbuilders. There is restructuring amongst ship owners. There is even restructuring of the fleet, said George Lazaridis
In his weekly report.
According to George Lazaridis, Head of Market Research & Asset Valuations of Allied Ship broking, It has certainly been the case that there were many issues in the market that needed to be “corrected” and as earnings dipped across all market sectors the urgency of these corrections increased. The reality is that earnings across all parts of the shipping industry have been under strain for over 5 year now, but as things got more difficult there was little that was being done to purge the issues, while in some cases the over exuberance held by many in the industry led them to take further steps which would inevitably cause further issues down the line.
The broker further said, taking the case of the shipbuilding industry for one and looking at what the IMF recently pointed out while discussing the restructuring burden that S. Korea would have to face now, it is clear that in part it was commercial decisions being made on the part of shipbuilders that led them to such high corporate debt problems and problematic cash flows.
Had it not been for the excessive push for ever bigger operations and more shipbuilding contracts and we would not be facing such a massive glut in supply today. In retrospect the approach that Japanese shipbuilders took to restructure, consolidate and optimize shipbuilding operations proved to be the right decision, while trying to take this approach today is a lot harder than it would have been had it been done 2-4 years earlier. This is not only an isolated case present only in S. Korea alone. Similar points can be made about the Chinese shipbuilding industry, as well as other parts of the shipping industry.
The Allied broker further noted, for one there are numerous voices out there that throw blame on the ship financing sector and granted that in part it was both the ease by which financing continued to be provide to a select few in the market and the direction it took, but equally to blame were those who took up the option without safeguarding their interests and calculating the increased risk they put themselves into.
According to the Greece-based shipbroker, In terms of direction this financing took, the issue was as to how much of this was being pushed over towards new buildings on the grounds that new designs were more competitive and newer units were less risky options for the financier. This would inevitably mean that we were always overshooting what demand would dictate we needed to have. Let’s not forget that most who placed these new “ECO” ships were doing so while saying that these new ships would push the older designs out of the market and make them obsolete.
The Allied said that the restructuring which is now being undertaken may well have been overdue, but nevertheless it has not come too late.
The Allied concluded that things are slowly starting to improve as corrections are made. Shipbuilding capacity has decreased and will likely continue to decrease over the coming months. The orderbook has also dropped rapidly, while ship supply has been kept fairly well balanced in most sectors and segments. There has been a considerable amount of debt from ship owners that has been restructured and refinanced while it has also encompassed a more realistic approach to the risks at hand. All these might not sound as much today as they tend to be the consequence of the poor decisions made in the past, but one needs to keep in mind that they must also be seen as the kick-off that will inevitably lead us onwards on to the next boom.
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Wednesday, 22 March 23
MARKET INSIGHT - INTERMODAL
The crude tanker market continues to gather momentum as we head towards the end of 1Q2023, against a backdrop of strong U.S. exports paired with a ...
Wednesday, 22 March 23
WILL LOWER GAS PRICES SPARK SWITCHING IN EUROPE AND ASIA?
Record high prices devastated demand for gas and LNG across Asia and Europe last year. But with prices falling, companies are starting to re-evalua ...
Monday, 20 March 23
NTPC MULLS 5.4 MILLION TONNES COAL IMPORT IN FIRST HALF OF 2023-24: PTI
State-run power giant NTPC is planning to import around 5.4 million tonnes of coal to meet the supply shortage during the first half 2023-24 fiscal ...
Monday, 20 March 23
S. AFRICA’S EXXARO RESOURCES SAYS COAL PRICES COOLING OFF - REUTERS
South Africa’s Exxaro Resources on Thursday posted a 28% jump in 2022 profit after seeing average coal prices surge more than 150%, but warne ...
Saturday, 18 March 23
RUSSIAN LNG EXPORTS TO EUROPE REMAIN HIGH - VESSELS VALUE
Russian LNG exports to Europe remained at very high levels in February at 3.6 million CBM, following a 13 month high in January of 4.1 million CBM. ...
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- London Commodity Brokers - England
- Australian Coal Association
- Chettinad Cement Corporation Ltd - India
- Minerals Council of Australia
- White Energy Company Limited
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- Sical Logistics Limited - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Mercuria Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Deloitte Consulting - India
- Vizag Seaport Private Limited - India
- Anglo American - United Kingdom
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- ASAPP Information Group - India
- Aditya Birla Group - India
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- OPG Power Generation Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- CNBM International Corporation - China
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
- Tata Chemicals Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Global Business Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- VISA Power Limited - India
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Intertek Mineral Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Attock Cement Pakistan Limited
- Marubeni Corporation - India
- Thiess Contractors Indonesia
- Grasim Industreis Ltd - India
- Rio Tinto Coal - Australia
- Electricity Generating Authority of Thailand
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- McConnell Dowell - Australia
- Jaiprakash Power Ventures ltd
- Bayan Resources Tbk. - Indonesia
- Parry Sugars Refinery, India
- Oldendorff Carriers - Singapore
- Indian Oil Corporation Limited
- Tamil Nadu electricity Board
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- South Luzon Thermal Energy Corporation
- European Bulk Services B.V. - Netherlands
- Mintek Dendrill Indonesia
- Billiton Holdings Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- MS Steel International - UAE
- Directorate Of Revenue Intelligence - India
- Mercator Lines Limited - India
- GAC Shipping (India) Pvt Ltd
- Trasteel International SA, Italy
- Africa Commodities Group - South Africa
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Aboitiz Power Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Sindya Power Generating Company Private Ltd
- Energy Development Corp, Philippines
- San Jose City I Power Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- Larsen & Toubro Limited - India
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Romanian Commodities Exchange
- Georgia Ports Authority, United States
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Star Paper Mills Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- Eastern Energy - Thailand
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Jindal Steel & Power Ltd - India
- Australian Commodity Traders Exchange
- India Bulls Power Limited - India
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Kumho Petrochemical, South Korea
- Global Coal Blending Company Limited - Australia
- PowerSource Philippines DevCo
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Energy Exchange, India
- Bukit Asam (Persero) Tbk - Indonesia
- Chamber of Mines of South Africa
- Bukit Baiduri Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Coalindo Energy - Indonesia
- Petron Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Sree Jayajothi Cements Limited - India
- Heidelberg Cement - Germany
- Orica Australia Pty. Ltd.
- Bhoruka Overseas - Indonesia
- Lanco Infratech Ltd - India
- Simpson Spence & Young - Indonesia
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- Ambuja Cements Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Edison Trading Spa - Italy
- Parliament of New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sakthi Sugars Limited - India
- Savvy Resources Ltd - HongKong
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Malabar Cements Ltd - India
- Therma Luzon, Inc, Philippines
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- IEA Clean Coal Centre - UK
- Sinarmas Energy and Mining - Indonesia
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Videocon Industries ltd - India
- Eastern Coal Council - USA
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Meralco Power Generation, Philippines
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
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