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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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Thursday, 01 February 18
RISING US OIL EXPORTS, MARKET DISRUPTION, BRENT-WTI SPREAD - WOOD MACKENZIE
What will US tight oil growth do to crude markets? The build-up in volumes early this decade led to a supply glut that undermined prices in 2014.
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Wednesday, 31 January 18
SHIPPING MARKET INSIGHT - TIMOS PAPADIMITRIOU
Days before the celebrations of the Lunar New Year, the dry bulk market seems to be holding well, against negative predictions. Period numbers repo ...
Monday, 29 January 18
BALTIC INDEX GAINS ON STRONGER BIG VESSEL ACTIVITY
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose this past week and ending on a positive note week ov ...
Monday, 29 January 18
U.S.WEEKLY COAL OUTPUT UP 8.7% W/W - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 14.6 million short tons ...
Wednesday, 24 January 18
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Since the beginning of the New Year we have been witnessing the BDI correcting downwards, which nonetheless seems to have no effect at ...
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Showing 1821 to 1825 news of total 6871 |
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- Global Business Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Sinarmas Energy and Mining - Indonesia
- Eastern Energy - Thailand
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Attock Cement Pakistan Limited
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- Meralco Power Generation, Philippines
- Bayan Resources Tbk. - Indonesia
- Borneo Indobara - Indonesia
- Thiess Contractors Indonesia
- Malabar Cements Ltd - India
- Semirara Mining Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Indian Oil Corporation Limited
- Baramulti Group, Indonesia
- Therma Luzon, Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Tata Chemicals Ltd - India
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- Vedanta Resources Plc - India
- Star Paper Mills Limited - India
- Essar Steel Hazira Ltd - India
- Bhoruka Overseas - Indonesia
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Mintek Dendrill Indonesia
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Uttam Galva Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Interocean Group of Companies - India
- GN Power Mariveles Coal Plant, Philippines
- Grasim Industreis Ltd - India
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Australian Coal Association
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Central Electricity Authority - India
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Karbindo Abesyapradhi - Indoneisa
- Karaikal Port Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Bhushan Steel Limited - India
- TeaM Sual Corporation - Philippines
- Oldendorff Carriers - Singapore
- Price Waterhouse Coopers - Russia
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- Agrawal Coal Company - India
- The Treasury - Australian Government
- Ind-Barath Power Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- LBH Netherlands Bv - Netherlands
- Antam Resourcindo - Indonesia
- Bukit Baiduri Energy - Indonesia
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Cement Manufacturers Association - India
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- Trasteel International SA, Italy
- Banpu Public Company Limited - Thailand
- Kideco Jaya Agung - Indonesia
- Makarim & Taira - Indonesia
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- Neyveli Lignite Corporation Ltd, - India
- Global Coal Blending Company Limited - Australia
- Cigading International Bulk Terminal - Indonesia
- Indian Energy Exchange, India
- London Commodity Brokers - England
- Orica Mining Services - Indonesia
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Asmin Koalindo Tuhup - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PNOC Exploration Corporation - Philippines
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- Tamil Nadu electricity Board
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- SMG Consultants - Indonesia
- Ceylon Electricity Board - Sri Lanka
- CNBM International Corporation - China
- Chamber of Mines of South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Sindya Power Generating Company Private Ltd
- Bangladesh Power Developement Board
- Planning Commission, India
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Aditya Birla Group - India
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
- Mercuria Energy - Indonesia
- Commonwealth Bank - Australia
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Miang Besar Coal Terminal - Indonesia
- Indika Energy - Indonesia
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Sical Logistics Limited - India
- Pendopo Energi Batubara - Indonesia
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- PowerSource Philippines DevCo
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- Kumho Petrochemical, South Korea
- Petron Corporation, Philippines
- Meenaskhi Energy Private Limited - India
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