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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, 11 July 16
DRY BULK MARKET: UP TO 30 MILLION DWT OF OLDER BULKERS WILL NEED TO BE SCRAPPED BY END OF 2017 FOR MARKET TO FIND BALANCE
Tonnage oversupply in the dry bulk market is more than evident, as newbuildings have been hitting the water faster than owners can scrap their olde ...
Friday, 08 July 16
U.S. WEEKLY COAL OUTPUT UP 3% TO 14.1 MMST - EIA
COALspot.com – U.S, world’s second largest coal producers has produced approximately totalled an estimated 14.1 million short tons (mms ...
Thursday, 07 July 16
PANAMAX : THE TENDENCY FROM LAST WEEK CONTINUES WITH A CONSIDERABLY STRONGER SENTIMENT ALL ACROSS THE BLOCK - FEARNLEYS
Capesize
Rates have been holding at steady levels over the last weeks but towards end of this period they are becoming under more pressure as gen ...
Thursday, 07 July 16
CONSOLIDATION TO RULE OVER SHIPPING, AS EXECUTIVES SEEK INVESTMENT OPPORTUNITIES IN CHINA, INDIA AND EUROPE SAYS NORTON ROSE SURVEY
The transport sector is looking to Asia Pacific as the key market for investment over the next five years, according to the seventh The way ahead T ...
Wednesday, 06 July 16
KOMIPO INVITES BIDS FOR 780000 MT 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 ...
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- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- OPG Power Generation Pvt Ltd - India
- Sakthi Sugars Limited - India
- Bharathi Cement Corporation - India
- New Zealand Coal & Carbon
- Singapore Mercantile Exchange
- ICICI Bank Limited - India
- Mercuria Energy - Indonesia
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Kaltim Prima Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Posco Energy - South Korea
- Star Paper Mills Limited - India
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Sree Jayajothi Cements Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- TNB Fuel Sdn Bhd - Malaysia
- Wilmar Investment Holdings
- Karaikal Port Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- The University of Queensland
- Meralco Power Generation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Kobexindo Tractors - Indoneisa
- Parry Sugars Refinery, India
- Xindia Steels Limited - India
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- SMC Global Power, Philippines
- Heidelberg Cement - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Madhucon Powers Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- GN Power Mariveles Coal Plant, Philippines
- International Coal Ventures Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Global Business Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- MS Steel International - UAE
- Cement Manufacturers Association - India
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Finance - Indonesia
- Sarangani Energy Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Planning Commission, India
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Semirara Mining Corp, Philippines
- Australian Coal Association
- Vedanta Resources Plc - India
- Baramulti Group, Indonesia
- Petron Corporation, Philippines
- Mercator Lines Limited - India
- Oldendorff Carriers - Singapore
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Goldman Sachs - Singapore
- Vizag Seaport Private Limited - India
- Minerals Council of Australia
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- London Commodity Brokers - England
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Gujarat Mineral Development Corp Ltd - India
- The State Trading Corporation of India Ltd
- GVK Power & Infra Limited - India
- Tata Chemicals Ltd - India
- Carbofer General Trading SA - India
- Bhushan Steel Limited - India
- Altura Mining Limited, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- Power Finance Corporation Ltd., India
- Manunggal Multi Energi - Indonesia
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- Dalmia Cement Bharat India
- Gujarat Sidhee Cement - India
- Port Waratah Coal Services - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- South Luzon Thermal Energy Corporation
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Edison Trading Spa - Italy
- Kepco SPC Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Maheswari Brothers Coal Limited - India
- Kumho Petrochemical, South Korea
- Indonesian Coal Mining Association
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Uttam Galva Steels Limited - India
- Indian Energy Exchange, India
- Barasentosa Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- GMR Energy Limited - India
- Parliament of New Zealand
- Price Waterhouse Coopers - Russia
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Deloitte Consulting - India
- PTC India Limited - India
- Ambuja Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- Coastal Gujarat Power Limited - India
- Kartika Selabumi Mining - Indonesia
- McConnell Dowell - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- Essar Steel Hazira Ltd - India
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Independent Power Producers Association of India
- Videocon Industries ltd - India
- Electricity Authority, New Zealand
- Lanco Infratech Ltd - India
- Indian Oil Corporation Limited
- Romanian Commodities Exchange
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- CNBM International Corporation - China
- Malabar Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- Africa Commodities Group - South Africa
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Medco Energi Mining Internasional
- IEA Clean Coal Centre - UK
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Bukit Asam (Persero) Tbk - Indonesia
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