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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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Tuesday, 27 February 18
SHELL SEES POTENTIAL LNG SUPPLY SHORTAGE AS GLOBAL DEMAND SURGES
Media Release: The global liquefied natural gas (LNG) market has continued to defy expectations of many market observers, with demand growing by 29 ...
Saturday, 24 February 18
CHINA BECOMES WORLD'S SECOND LARGEST LNG IMPORTER, BEHIND JAPAN - EIA
China surpassed South Korea to become the world’s second-largest importer of liquefied natural gas (LNG) in 2017, according to data from IHS ...
Friday, 23 February 18
ESTIMATED U.S. WEEKLY COAL PRODUCTION UP 2.8 PER CENT W/E 17 FEB' 18 - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.6 million short tons ...
Thursday, 22 February 18
WHY THE COMMODITY RALLY WILL GET BACK ON TRACK - SIMON FLOWERS
Implications for the US dollar and producers
Are we in the early stages of a sustained rise in commodity prices? And what does it mean for the ...
Thursday, 22 February 18
PANAMAX: IT HAS BEEN A SLOW AND UNEVENTFUL WEEK - FEARNLEYS
Supramax
Slight improvement from Atlantic with more hope for upcoming weeks. More grain cargoes from Black Sea made fhaul rates better again $17- ...
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Showing 1796 to 1800 news of total 6871 |
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- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- Wilmar Investment Holdings
- Simpson Spence & Young - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- TeaM Sual Corporation - Philippines
- Interocean Group of Companies - India
- Bhatia International Limited - India
- New Zealand Coal & Carbon
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Binh Thuan Hamico - Vietnam
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- OPG Power Generation Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- Sical Logistics Limited - India
- Australian Commodity Traders Exchange
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- Indian Energy Exchange, India
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- Lanco Infratech Ltd - India
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Energy Link Ltd, New Zealand
- CIMB Investment Bank - Malaysia
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Neyveli Lignite Corporation Ltd, - India
- Coal and Oil Company - UAE
- Central Java Power - Indonesia
- Goldman Sachs - Singapore
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- Billiton Holdings Pty Ltd - Australia
- Larsen & Toubro Limited - India
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- CNBM International Corporation - China
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Indonesian Coal Mining Association
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
- Petron Corporation, Philippines
- GMR Energy Limited - India
- Bhoruka Overseas - Indonesia
- Semirara Mining Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Bayan Resources Tbk. - Indonesia
- Parry Sugars Refinery, India
- Karaikal Port Pvt Ltd - India
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Global Business Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Indian Oil Corporation Limited
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Jindal Steel & Power Ltd - India
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sojitz Corporation - Japan
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Kumho Petrochemical, South Korea
- Standard Chartered Bank - UAE
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Kohat Cement Company Ltd. - Pakistan
- PNOC Exploration Corporation - Philippines
- Dalmia Cement Bharat India
- Timah Investasi Mineral - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Ceylon Electricity Board - Sri Lanka
- Altura Mining Limited, Indonesia
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- IEA Clean Coal Centre - UK
- Iligan Light & Power Inc, Philippines
- Central Electricity Authority - India
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Trasteel International SA, Italy
- Planning Commission, India
- Global Green Power PLC Corporation, Philippines
- Indika Energy - Indonesia
- Latin American Coal - Colombia
- Carbofer General Trading SA - India
- Chettinad Cement Corporation Ltd - India
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Coalindo Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- Xindia Steels Limited - India
- Bharathi Cement Corporation - India
- Sindya Power Generating Company Private Ltd
- ASAPP Information Group - India
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Bulk Trading Sa - Switzerland
- Kideco Jaya Agung - Indonesia
- Bangladesh Power Developement Board
- Mintek Dendrill Indonesia
- PTC India Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Petrochimia International Co. Ltd.- Taiwan
- Thiess Contractors Indonesia
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Intertek Mineral Services - Indonesia
- Uttam Galva Steels Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- Meenaskhi Energy Private Limited - India
- Africa Commodities Group - South Africa
- Maheswari Brothers Coal Limited - India
- Commonwealth Bank - Australia
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- MS Steel International - UAE
- Savvy Resources Ltd - HongKong
- Electricity Authority, New Zealand
- Chamber of Mines of South Africa
- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Riau Bara Harum - Indonesia
- LBH Netherlands Bv - Netherlands
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- London Commodity Brokers - England
- Aditya Birla Group - India
- Kartika Selabumi Mining - Indonesia
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Georgia Ports Authority, United States
- Posco Energy - South Korea
- ICICI Bank Limited - India
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- SMG Consultants - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Sakthi Sugars Limited - India
- Heidelberg Cement - Germany
- Star Paper Mills Limited - India
- Kepco SPC Power Corporation, Philippines
- Economic Council, Georgia
- Mercator Lines Limited - India
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Australia Pty. Ltd.
- Australian Coal Association
- Bukit Makmur.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Eastern Coal Council - USA
- Ministry of Finance - Indonesia
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