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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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Monday, 29 August 16
THE FREIGHT MARKET WAS STEADY AND FIRM THIS PAST WEEK; BCI ROSE 18.74%
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose and ending in a positive note this past week except ...
Friday, 26 August 16
WEEKLY US COAL OUTPUT UP 0.7% W/W TO 16 MMST: EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16 million short tons ...
Thursday, 25 August 16
SUPRAMAXES ARE BEING FIXED IN REGION OF $9000
Supramax
Due to Chinese coal imports which continues to source much of the tonnage in SE Asia combined with a good flow of mineral exports ex Aus ...
Wednesday, 24 August 16
MARKET INSIGHT
Brazil and the world bid farewell on Sunday to the first Olympic Games in South America in the midst of a finale meant to be both one last bash and ...
Wednesday, 24 August 16
DRY BULK VESSELS FACE CONTINUED DISTRESS - CLEAR ASSET
Dry bulk vessels have faced extreme distress in recent years. With a combination of factors including newer vessels being ordered with up to 5-year ...
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Showing 2306 to 2310 news of total 6871 |
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- Australian Coal Association
- Vedanta Resources Plc - India
- Pendopo Energi Batubara - Indonesia
- Savvy Resources Ltd - HongKong
- Indian Energy Exchange, India
- Manunggal Multi Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Bukit Baiduri Energy - Indonesia
- Wilmar Investment Holdings
- Port Waratah Coal Services - Australia
- The Treasury - Australian Government
- LBH Netherlands Bv - Netherlands
- Africa Commodities Group - South Africa
- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Formosa Plastics Group - Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Eastern Energy - Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Cement Manufacturers Association - India
- PetroVietnam Power Coal Import and Supply Company
- Intertek Mineral Services - Indonesia
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Carbofer General Trading SA - India
- SMC Global Power, Philippines
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Bayan Resources Tbk. - Indonesia
- Planning Commission, India
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement - Thailand
- The State Trading Corporation of India Ltd
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Madhucon Powers Ltd - India
- Edison Trading Spa - Italy
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mjunction Services Limited - India
- Marubeni Corporation - India
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- SN Aboitiz Power Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Latin American Coal - Colombia
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Thai Mozambique Logistica
- AsiaOL BioFuels Corp., Philippines
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Sojitz Corporation - Japan
- Thiess Contractors Indonesia
- Binh Thuan Hamico - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Anglo American - United Kingdom
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Global Coal Blending Company Limited - Australia
- Uttam Galva Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Heidelberg Cement - Germany
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Aboitiz Power Corporation - Philippines
- Global Business Power Corporation, Philippines
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Therma Luzon, Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Sarangani Energy Corporation, Philippines
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- MS Steel International - UAE
- Xindia Steels Limited - India
- Coalindo Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- VISA Power Limited - India
- India Bulls Power Limited - India
- Mercator Lines Limited - India
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- Meralco Power Generation, Philippines
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- Jindal Steel & Power Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Central Electricity Authority - India
- GN Power Mariveles Coal Plant, Philippines
- Agrawal Coal Company - India
- Chamber of Mines of South Africa
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Kumho Petrochemical, South Korea
- Ambuja Cements Ltd - India
- Petron Corporation, Philippines
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Medco Energi Mining Internasional
- CIMB Investment Bank - Malaysia
- International Coal Ventures Pvt Ltd - India
- Grasim Industreis Ltd - India
- Goldman Sachs - Singapore
- Bhoruka Overseas - Indonesia
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Interocean Group of Companies - India
- ASAPP Information Group - India
- Krishnapatnam Port Company Ltd. - India
- Sree Jayajothi Cements Limited - India
- San Jose City I Power Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Parry Sugars Refinery, India
- Cigading International Bulk Terminal - Indonesia
- Ministry of Transport, Egypt
- London Commodity Brokers - England
- Central Java Power - Indonesia
- Sical Logistics Limited - India
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- Iligan Light & Power Inc, Philippines
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