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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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Wednesday, 21 June 17
MARKET INSIGHT - SHIPPING
Looking back at March and April shipping reports when the dry bulk indexes were starting to move up, a number of shipping analysts were stating tha ...
Tuesday, 20 June 17
WORLD ECONOMY SHOWS A MORE OPTIMISTIC TREND
During the past weeks, we have seen many organizations and think tanks show a more optimistic face with regards to the world economy. The World Ban ...
Monday, 19 June 17
PANAMAX RATES HELP BALTIC INDEX TO A POSITIVE MOVE
COALspot.com: The Freight market rose very marginally this past week compared to the previous week, as BDI and Panamax indexes show a positive tren ...
Friday, 16 June 17
WEEKLY U.S. COAL PRODUCTION RISES; UP 24.1% Y/Y
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.5 million short tonn ...
Thursday, 15 June 17
SUPRAMAX NICKEL ORE FROM PHILIPPINES TO S. CHINA PAYING AROUND MID $10000 - FEARNLEYS
Supramax
Market looked more promising from both sides of the basins. Within Atlantic USG returned with tick better rates seen as tonnage kept tig ...
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Showing 2021 to 2025 news of total 6871 |
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- Petrochimia International Co. Ltd.- Taiwan
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Krishnapatnam Port Company Ltd. - India
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Ministry of Transport, Egypt
- Directorate General of MIneral and Coal - Indonesia
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Larsen & Toubro Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- The Treasury - Australian Government
- Ind-Barath Power Infra Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- CNBM International Corporation - China
- Economic Council, Georgia
- Maharashtra Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Bulk Trading Sa - Switzerland
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Kideco Jaya Agung - Indonesia
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sical Logistics Limited - India
- Essar Steel Hazira Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Intertek Mineral Services - Indonesia
- Australian Coal Association
- Orica Australia Pty. Ltd.
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- Independent Power Producers Association of India
- Goldman Sachs - Singapore
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- Leighton Contractors Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Singapore Mercantile Exchange
- Heidelberg Cement - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Wood Mackenzie - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- GVK Power & Infra Limited - India
- Parliament of New Zealand
- Holcim Trading Pte Ltd - Singapore
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- Wilmar Investment Holdings
- GAC Shipping (India) Pvt Ltd
- PNOC Exploration Corporation - Philippines
- Energy Link Ltd, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Coastal Gujarat Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- Karaikal Port Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- PetroVietnam Power Coal Import and Supply Company
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- Barasentosa Lestari - Indonesia
- London Commodity Brokers - England
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- Agrawal Coal Company - India
- Bhatia International Limited - India
- Kartika Selabumi Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- Kaltim Prima Coal - Indonesia
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Therma Luzon, Inc, Philippines
- Gujarat Sidhee Cement - India
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- San Jose City I Power Corp, Philippines
- LBH Netherlands Bv - Netherlands
- European Bulk Services B.V. - Netherlands
- Central Java Power - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- Cement Manufacturers Association - India
- New Zealand Coal & Carbon
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Grasim Industreis Ltd - India
- VISA Power Limited - India
- Interocean Group of Companies - India
- Banpu Public Company Limited - Thailand
- Renaissance Capital - South Africa
- CIMB Investment Bank - Malaysia
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Mercuria Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Indonesian Coal Mining Association
- Coal and Oil Company - UAE
- Star Paper Mills Limited - India
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Coalindo Energy - Indonesia
- SMC Global Power, Philippines
- SN Aboitiz Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- IHS Mccloskey Coal Group - USA
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Kepco SPC Power Corporation, Philippines
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Electricity Generating Authority of Thailand
- Siam City Cement - Thailand
- Romanian Commodities Exchange
- Mercator Lines Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Chamber of Mines of South Africa
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Makarim & Taira - Indonesia
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Gujarat Mineral Development Corp Ltd - India
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