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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, 06 July 16
MARKET INSIGHT - VASSILIS VASSILIOU
After a fairly silent first half of the year in the ship repair sector, we have finally a harmonized workload in the shipyards around the world. Ma ...
Tuesday, 05 July 16
DRY BULK SHIPPING'S RECOVERY NOT SEEN UNTIL 2018 - SGX
SGX freight derivative volumes totaled 36,542 contracts in June (-28% m/m; +52% y/y), while open interest averaged 121,189 contracts during the mon ...
Tuesday, 05 July 16
SPOT COAL INDEXES FOR INDONESIAN COAL CONTINUE TO HOLD FIRM - CS COAL INDEX
COALspot.com: Average 5000 GAR coal index of Indonesian origin was up by 0.83 percent week over week to averaging $39.98 per ton this past week, sh ...
Monday, 04 July 16
INDONESIA COAL PRICE REFERENCE CLIMBED 2.30% IN JULY
COALspot.com: The Indonesia Coal Benchmark Price increased in July 2016.
The Director General of Mineral and Coal of Indonesia, the r ...
Monday, 04 July 16
BDI ROSE ON STRONGER DEMAND ACROSS ALL VESSEL SEGMENTS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose this past week. The BDI was up 11.16 percent from la ...
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- Straits Asia Resources Limited - Singapore
- Ministry of Transport, Egypt
- Sojitz Corporation - Japan
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- Independent Power Producers Association of India
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- Merrill Lynch Commodities Europe
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- Parry Sugars Refinery, India
- Madhucon Powers Ltd - India
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- Trasteel International SA, Italy
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- Essar Steel Hazira Ltd - India
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- Africa Commodities Group - South Africa
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- Kohat Cement Company Ltd. - Pakistan
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- Videocon Industries ltd - India
- Directorate General of MIneral and Coal - Indonesia
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- Planning Commission, India
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- Deloitte Consulting - India
- Semirara Mining Corp, Philippines
- IEA Clean Coal Centre - UK
- Bulk Trading Sa - Switzerland
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- Aditya Birla Group - India
- Alfred C Toepfer International GmbH - Germany
- Coal and Oil Company - UAE
- The Treasury - Australian Government
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- TeaM Sual Corporation - Philippines
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- Bukit Makmur.PT - Indonesia
- Indian Oil Corporation Limited
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- Indo Tambangraya Megah - Indonesia
- Tamil Nadu electricity Board
- TNB Fuel Sdn Bhd - Malaysia
- Singapore Mercantile Exchange
- Chettinad Cement Corporation Ltd - India
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Karaikal Port Pvt Ltd - India
- Wood Mackenzie - Singapore
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- Minerals Council of Australia
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- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- Goldman Sachs - Singapore
- Price Waterhouse Coopers - Russia
- Vijayanagar Sugar Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- Grasim Industreis Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kepco SPC Power Corporation, Philippines
- Orica Mining Services - Indonesia
- New Zealand Coal & Carbon
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- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Larsen & Toubro Limited - India
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- Electricity Authority, New Zealand
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- Rashtriya Ispat Nigam Limited - India
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
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- Global Business Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bharathi Cement Corporation - India
- Barasentosa Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- Salva Resources Pvt Ltd - India
- Mintek Dendrill Indonesia
- Maheswari Brothers Coal Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
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- GMR Energy Limited - India
- Binh Thuan Hamico - Vietnam
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- Samtan Co., Ltd - South Korea
- Semirara Mining and Power Corporation, Philippines
- Ministry of Mines - Canada
- Carbofer General Trading SA - India
- Miang Besar Coal Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- Oldendorff Carriers - Singapore
- Savvy Resources Ltd - HongKong
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Borneo Indobara - Indonesia
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- Bangladesh Power Developement Board
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Georgia Ports Authority, United States
- Holcim Trading Pte Ltd - Singapore
- Economic Council, Georgia
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- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- Indian Energy Exchange, India
- Bukit Baiduri Energy - Indonesia
- MS Steel International - UAE
- Directorate Of Revenue Intelligence - India
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Thiess Contractors Indonesia
- SMG Consultants - Indonesia
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- Formosa Plastics Group - Taiwan
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Energy Link Ltd, New Zealand
- Power Finance Corporation Ltd., India
- Meralco Power Generation, Philippines
- The University of Queensland
- Coalindo Energy - Indonesia
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Parliament of New Zealand
- GAC Shipping (India) Pvt Ltd
- Romanian Commodities Exchange
- Metalloyd Limited - United Kingdom
- Banpu Public Company Limited - Thailand
- London Commodity Brokers - England
- Rio Tinto Coal - Australia
- Sree Jayajothi Cements Limited - India
- Cement Manufacturers Association - India
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Leighton Contractors Pty Ltd - Australia
- CNBM International Corporation - China
- Attock Cement Pakistan Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Indonesian Coal Mining Association
- White Energy Company Limited
- SMC Global Power, Philippines
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Port Waratah Coal Services - Australia
- Neyveli Lignite Corporation Ltd, - India
- Commonwealth Bank - Australia
- Posco Energy - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petrochimia International Co. Ltd.- Taiwan
- Karbindo Abesyapradhi - Indoneisa
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