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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, 14 December 16
20/20 VISION! - JOHN N. COTZIAS
2020; A year that could be changing shipping. In early November, the International Maritime Organization (IMO) announced that it would set a 0.5% s ...
Tuesday, 13 December 16
THE FREIGHT MARKET MAY WELL BE SHOWING SIGNS OF HEADING FOR ITS DOWNWARD CORRECTIVE PHASE - ALLIED
2016 has been a tough market for dry bulkers and through these difficult earnings, we have seen some of the lowest prices being noted historically ...
Tuesday, 13 December 16
COAL DEMAND GROWTH TO STALL AS APPETITE WANES, ACCORDING TO IEA
Growth in global coal demand will stall over the next five years as the appetite for the fuel wanes and other energy sources gain ground, according ...
Monday, 12 December 16
U.S. WEEKLY COAL PRODUCTION TOTALS 16.3 MMST, UP 7.4% - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.3 million short ton ...
Monday, 12 December 16
INDONESIA TO INDIA FREIGHT RATES ARE EXPECTED TO BE SOFT THIS WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities decline this past week and ending on a negative note week ...
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- Indo Tambangraya Megah - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Star Paper Mills Limited - India
- Indika Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- Grasim Industreis Ltd - India
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Kalimantan Lumbung Energi - Indonesia
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- ASAPP Information Group - India
- Ministry of Finance - Indonesia
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- Bukit Makmur.PT - Indonesia
- Tamil Nadu electricity Board
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Gujarat Sidhee Cement - India
- European Bulk Services B.V. - Netherlands
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- IHS Mccloskey Coal Group - USA
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- Billiton Holdings Pty Ltd - Australia
- GN Power Mariveles Coal Plant, Philippines
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Tata Chemicals Ltd - India
- PNOC Exploration Corporation - Philippines
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- Vizag Seaport Private Limited - India
- The Treasury - Australian Government
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Bangladesh Power Developement Board
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Indian Energy Exchange, India
- Georgia Ports Authority, United States
- Jindal Steel & Power Ltd - India
- Chettinad Cement Corporation Ltd - India
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Goldman Sachs - Singapore
- Eastern Energy - Thailand
- Directorate Of Revenue Intelligence - India
- Port Waratah Coal Services - Australia
- Deloitte Consulting - India
- Straits Asia Resources Limited - Singapore
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- MS Steel International - UAE
- Maheswari Brothers Coal Limited - India
- Kartika Selabumi Mining - Indonesia
- Altura Mining Limited, Indonesia
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Salva Resources Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Kepco SPC Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Medco Energi Mining Internasional
- South Luzon Thermal Energy Corporation
- Antam Resourcindo - Indonesia
- Commonwealth Bank - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Thai Mozambique Logistica
- Independent Power Producers Association of India
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Commodity Traders Exchange
- Eastern Coal Council - USA
- Parliament of New Zealand
- Therma Luzon, Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Posco Energy - South Korea
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Standard Chartered Bank - UAE
- White Energy Company Limited
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Kobexindo Tractors - Indoneisa
- TeaM Sual Corporation - Philippines
- Vedanta Resources Plc - India
- Romanian Commodities Exchange
- Global Green Power PLC Corporation, Philippines
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- Marubeni Corporation - India
- Renaissance Capital - South Africa
- Bhoruka Overseas - Indonesia
- Larsen & Toubro Limited - India
- Parry Sugars Refinery, India
- Ministry of Mines - Canada
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Jorong Barutama Greston.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Mercuria Energy - Indonesia
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Baramulti Group, Indonesia
- Metalloyd Limited - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- New Zealand Coal & Carbon
- Coalindo Energy - Indonesia
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Coastal Gujarat Power Limited - India
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- Savvy Resources Ltd - HongKong
- Coal and Oil Company - UAE
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- Mintek Dendrill Indonesia
- Sree Jayajothi Cements Limited - India
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- CIMB Investment Bank - Malaysia
- Kapuas Tunggal Persada - Indonesia
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- Pendopo Energi Batubara - Indonesia
- Africa Commodities Group - South Africa
- Cigading International Bulk Terminal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- Siam City Cement - Thailand
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
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