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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, 26 October 16
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
If the finale of a thriller movie finds the leading actor successfully surviving after all the sacrifices he has made, the audience presumes this t ...
Tuesday, 25 October 16
INDONESIAN COAL PRICES MARCH HIGHER CONTINUES
COALspot.com: A rally in thermal coal prices over the past few months, after years of decline, is still continuing and it is expected to rally at l ...
Tuesday, 25 October 16
THINGS ARE SLOWLY STARTING TO IMPROVE AS CORRECTIONS ARE MADE - ALLIED
It seems as though left, right and centre, all we see nowadays is the word “restructuring”.
There is restructuring amongst bankers ...
Monday, 24 October 16
KOMIPO INVITES BIDS FOR 0.78 MILLION TONS OF BITUMINOUS COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a new tender for 780,000 Metric Tons of Bituminous Coal for its B ...
Monday, 24 October 16
U.S WEEKLY COAL PRODUCTION DECLINED 3.2% TO 16 MMST WEEK OVER WEEK
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16 million short tons ...
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- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Interocean Group of Companies - India
- Tamil Nadu electricity Board
- ASAPP Information Group - India
- CNBM International Corporation - China
- Gujarat Sidhee Cement - India
- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Maheswari Brothers Coal Limited - India
- Bharathi Cement Corporation - India
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Timah Investasi Mineral - Indoneisa
- Wood Mackenzie - Singapore
- New Zealand Coal & Carbon
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- IHS Mccloskey Coal Group - USA
- Price Waterhouse Coopers - Russia
- Power Finance Corporation Ltd., India
- Rio Tinto Coal - Australia
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- LBH Netherlands Bv - Netherlands
- Energy Link Ltd, New Zealand
- GAC Shipping (India) Pvt Ltd
- Krishnapatnam Port Company Ltd. - India
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Globalindo Alam Lestari - Indonesia
- Singapore Mercantile Exchange
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Orica Australia Pty. Ltd.
- TeaM Sual Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Videocon Industries ltd - India
- Sical Logistics Limited - India
- Dalmia Cement Bharat India
- Sindya Power Generating Company Private Ltd
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- Iligan Light & Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Metalloyd Limited - United Kingdom
- Bhushan Steel Limited - India
- Marubeni Corporation - India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- San Jose City I Power Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Gujarat Mineral Development Corp Ltd - India
- Pendopo Energi Batubara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- European Bulk Services B.V. - Netherlands
- Australian Coal Association
- Eastern Energy - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Borneo Indobara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Economic Council, Georgia
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Chamber of Mines of South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- PowerSource Philippines DevCo
- Ceylon Electricity Board - Sri Lanka
- Central Electricity Authority - India
- Parliament of New Zealand
- Australian Commodity Traders Exchange
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Kepco SPC Power Corporation, Philippines
- Xindia Steels Limited - India
- Makarim & Taira - Indonesia
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Bhatia International Limited - India
- Meenaskhi Energy Private Limited - India
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- Thai Mozambique Logistica
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Kapuas Tunggal Persada - Indonesia
- SMC Global Power, Philippines
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- CIMB Investment Bank - Malaysia
- Oldendorff Carriers - Singapore
- Bulk Trading Sa - Switzerland
- Neyveli Lignite Corporation Ltd, - India
- Therma Luzon, Inc, Philippines
- Lanco Infratech Ltd - India
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- Toyota Tsusho Corporation, Japan
- Petrochimia International Co. Ltd.- Taiwan
- White Energy Company Limited
- Romanian Commodities Exchange
- Goldman Sachs - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Barasentosa Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Indogreen Group - Indonesia
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GVK Power & Infra Limited - India
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- SMG Consultants - Indonesia
- PNOC Exploration Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Leighton Contractors Pty Ltd - Australia
- Madhucon Powers Ltd - India
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Kalimantan Lumbung Energi - Indonesia
- The University of Queensland
- Semirara Mining Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Coalindo Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Anglo American - United Kingdom
- Grasim Industreis Ltd - India
- ICICI Bank Limited - India
- Kideco Jaya Agung - Indonesia
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
- Eastern Coal Council - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Straits Asia Resources Limited - Singapore
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- South Luzon Thermal Energy Corporation
- The State Trading Corporation of India Ltd
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- Heidelberg Cement - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- Jaiprakash Power Ventures ltd
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Malabar Cements Ltd - India
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
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