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Tuesday, 14 March 17
ORDERBOOK-TO-FEET RATIO DECREASING; THE FREIGHT MARKET IMPROVING
 It seems as though the renewed optimism that has arisen from the recent upward trends being noted in the freight market, the dry bulk market has been set alight, said Allied Shipping in its latest weekly report.
According to George Lazaridis Head of Market Research & Asset Valuations of Allied, there has been a growing bullish vibe being felt for several months now in this sector, generated by the successive decreases being seen in the orderbook-to-fleet ratio during the course of the past year and all indicators in the freight market pointing to an improved balance. He further noted that the order book to fleet ratio for the dry bulk segment as a whole has now dropped to 7.72%, the lowest figure we have seen in over two decades now. This plays an important role in dissipating concerns over the glut in tonnage supply that we have seen in the market, though this is only half the picture. During the course of 2016, many viewed the excessively low earnings being a directly caused by the excessive number of new buildings being delivered. Having witnessed both the drop in the order book and at the same time a considerable improvement in freight rates, one can easily make the presumption that the supply-demand balance in the market is improving and at a fairly good pace. During the course of 2017, freight rates have held at levels well above what we were seeing back in 2016 and even 2015, while the recent rally that boosted the Baltic Dry Index to above 1,000 points before the start of the grain season in the Atlantic, has only re-enforced the bullish views that have been held by many in this regard.
George Lazaridis further said, it is no surprise therefore that we have seen buyers quickly flocking back into the secondhand market with fears that they will “lose” the opportunities that are still present in the market. Despite the fact that prices have on average risen by around 50% since the low levels of March 2016, asset prices can still be considered to be fairly competitive compared to what we have seen historically since the late 90’s. As such and with earnings now providing the promise of better returns and positive cash flows for new purchases, you can see that there is excess possibility for further price gains to be noted over the coming months. What’s more is that during the time period where we faced some of the biggest difficulties in the freight market, newbuilding prices continued to hold at abnormally high levels compared to equivalent periods in the past. As such secondhand asset prices are at an even higher the normal discount against what it costs to construct a similar vessel. This leaves the conclusion that if earnings continue to stay at “good” levels it will be hard to see similarly low price levels in the future for similarly aged vessels.
All these conclusions are based on the assumption that we have reached a balance in the market and that demand will continue to grow at least at its current momentum, allowing for a continual improvement in the freight market, said George Lazaridis.
This is a fairly big if however, especially if you take a closer look at the volatility being noted in the commodity markets and the general uncertainty being played out in many of those economies that play a vital role in seaborne trade. Further shocks could derail this balance and bring another round of “pains”. Although this does need to be of concern, it seems that even if these negative scenarios play out their consequences to the market would be more minor and short-term then what similar events have caused in the recent past. As such one can’t blame those optimists out there and given the relatively lower risks that are in view, there are fair grounds to claim that opportunities are now much better than most that we have come by in the past 5 years.
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Friday, 06 April 18
TOP MINER BHP QUITS WORLD COAL ASSOCIATION OVER CLIMATE CLASH - BLOOMBERG
BHP Billiton Ltd. has severed ties with the World Coal Association over a clash of views on how to combat climate change, with the mining giant say ...
Thursday, 05 April 18
INDONESIA TO POSTPONE NEW COAL, PALM OIL SHIPPING RULES TO 2020 - REUTERS
Indonesia will delay until 2020 trade rules requiring exporters of coal and crude palm oil to use only Indonesian-flagged vessels, government offic ...
Tuesday, 03 April 18
MARKET ANALYSIS - GEORGE LAZARIDIS
In the midst of a relatively quiet week for markets, with disruptions being caused by the Christian holidays, it seems as though we find ourselves ...
Monday, 02 April 18
THE FREIGHT RATES ARE EXPECTED TO BE FLAT TO SOFT, SAYS VISTAAR
The freight market softening to continue. Thursday, March 29, 2018, the Baltic Dry Index decreased by 42 points, reaching 1080 points.
T ...
Monday, 02 April 18
THIESS TO DELIVER $150M SENAKIN CONTRACT EXTENSION
Thiess has secured a $150 million contract extension to provide mine services at Arutmin’s Senakin coal mine in South Kalimantan, Indonesia.
...
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- Thai Mozambique Logistica
- GAC Shipping (India) Pvt Ltd
- Neyveli Lignite Corporation Ltd, - India
- Bhoruka Overseas - Indonesia
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Kepco SPC Power Corporation, Philippines
- VISA Power Limited - India
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- Renaissance Capital - South Africa
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Salva Resources Pvt Ltd - India
- Mercator Lines Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bhushan Steel Limited - India
- Banpu Public Company Limited - Thailand
- Madhucon Powers Ltd - India
- SN Aboitiz Power Inc, Philippines
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Goldman Sachs - Singapore
- Borneo Indobara - Indonesia
- Singapore Mercantile Exchange
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Electricity Generating Authority of Thailand
- Coal and Oil Company - UAE
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Parry Sugars Refinery, India
- Economic Council, Georgia
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- India Bulls Power Limited - India
- Indika Energy - Indonesia
- Merrill Lynch Commodities Europe
- Gujarat Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- GMR Energy Limited - India
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- Eastern Energy - Thailand
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Attock Cement Pakistan Limited
- White Energy Company Limited
- Uttam Galva Steels Limited - India
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Straits Asia Resources Limited - Singapore
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Globalindo Alam Lestari - Indonesia
- Bhatia International Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Africa Commodities Group - South Africa
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Eastern Coal Council - USA
- Petron Corporation, Philippines
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Coastal Gujarat Power Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Transport, Egypt
- Offshore Bulk Terminal Pte Ltd, Singapore
- Georgia Ports Authority, United States
- SMG Consultants - Indonesia
- Commonwealth Bank - Australia
- Energy Link Ltd, New Zealand
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Kumho Petrochemical, South Korea
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- Meenaskhi Energy Private Limited - India
- Price Waterhouse Coopers - Russia
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- Intertek Mineral Services - Indonesia
- Australian Commodity Traders Exchange
- IHS Mccloskey Coal Group - USA
- IEA Clean Coal Centre - UK
- The State Trading Corporation of India Ltd
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- PTC India Limited - India
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GVK Power & Infra Limited - India
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- TNB Fuel Sdn Bhd - Malaysia
- Ind-Barath Power Infra Limited - India
- Bukit Baiduri Energy - Indonesia
- Bharathi Cement Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Interocean Group of Companies - India
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- London Commodity Brokers - England
- Bulk Trading Sa - Switzerland
- Carbofer General Trading SA - India
- Aditya Birla Group - India
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Gujarat Sidhee Cement - India
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- Cement Manufacturers Association - India
- Directorate General of MIneral and Coal - Indonesia
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Chamber of Mines of South Africa
- Energy Development Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Bayan Resources Tbk. - Indonesia
- Tata Chemicals Ltd - India
- Siam City Cement - Thailand
- Bukit Makmur.PT - Indonesia
- Sojitz Corporation - Japan
- Bangladesh Power Developement Board
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Semirara Mining and Power Corporation, Philippines
- Indian Energy Exchange, India
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Lanco Infratech Ltd - India
- CIMB Investment Bank - Malaysia
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Indonesian Coal Mining Association
- Riau Bara Harum - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Medco Energi Mining Internasional
- Vijayanagar Sugar Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Indian Oil Corporation Limited
- Billiton Holdings Pty Ltd - Australia
- Agrawal Coal Company - India
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- SMC Global Power, Philippines
- Essar Steel Hazira Ltd - India
- Trasteel International SA, Italy
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Electricity Authority - India
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
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