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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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Friday, 01 July 16
BREXIT SET TO HURT SHIPPING IN THE LONG-TERM AS IT WILL TAKE ITS TOLL IN THE GLOBAL ECONOMY'S GROWTH - HELLENIC SHIPPING
Setting aside the short-term negative impact of the Brexit, in terms of stock market and currency volatility, it’s more than evident that the ...
Friday, 01 July 16
U.S'S COAL EXPORTS HAVE DECLINED FOR TWELVE QUARTERS IN A ROW - EIA
COALspot.com – U.S, world’s one of the largest coal producers has produced approximately totalled an estimated 13.7 million short t ...
Thursday, 30 June 16
CAPE - THIS WEEK'S FREIGHT AND ACTIVITY LEVEL HAVE KEPT STABLE - FEARNLEYS
Cape
This week’s freight and activity level have kept stable. It is support at the present levels and despite a volatile market the freight ...
Thursday, 30 June 16
OIL PRODUCT TANKERS EARNINGS DECLINE AS STOCKBUILDING SLOWS DOWN - BIMCO
BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is stil ...
Wednesday, 29 June 16
THE DRY BULK INDICES, OPPOSITE TO MOST GLOBAL MARKET INDICES, ROSE END OF LAST WEEK
Last week closed off with a massive shockwave for markets across the world following the British referendum, the result of which will mark the begi ...
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- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Latin American Coal - Colombia
- Goldman Sachs - Singapore
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Medco Energi Mining Internasional
- Vedanta Resources Plc - India
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- Interocean Group of Companies - India
- Price Waterhouse Coopers - Russia
- Indonesian Coal Mining Association
- Oldendorff Carriers - Singapore
- Pendopo Energi Batubara - Indonesia
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
- Africa Commodities Group - South Africa
- Banpu Public Company Limited - Thailand
- Therma Luzon, Inc, Philippines
- Bangladesh Power Developement Board
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- The State Trading Corporation of India Ltd
- Cement Manufacturers Association - India
- Videocon Industries ltd - India
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- ASAPP Information Group - India
- Sree Jayajothi Cements Limited - India
- Global Coal Blending Company Limited - Australia
- South Luzon Thermal Energy Corporation
- Ceylon Electricity Board - Sri Lanka
- Ministry of Finance - Indonesia
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Thiess Contractors Indonesia
- TeaM Sual Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- Grasim Industreis Ltd - India
- Petron Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Directorate General of MIneral and Coal - Indonesia
- PTC India Limited - India
- Renaissance Capital - South Africa
- Commonwealth Bank - Australia
- CNBM International Corporation - China
- European Bulk Services B.V. - Netherlands
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement PLC, Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- Lanco Infratech Ltd - India
- Port Waratah Coal Services - Australia
- Jindal Steel & Power Ltd - India
- Planning Commission, India
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- SN Aboitiz Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Miang Besar Coal Terminal - Indonesia
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- Sical Logistics Limited - India
- White Energy Company Limited
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Baramulti Group, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Georgia Ports Authority, United States
- The Treasury - Australian Government
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Coal Association
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Minerals Council of Australia
- Sarangani Energy Corporation, Philippines
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Global Green Power PLC Corporation, Philippines
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- PowerSource Philippines DevCo
- Edison Trading Spa - Italy
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- Karaikal Port Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- Bhushan Steel Limited - India
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Barasentosa Lestari - Indonesia
- Marubeni Corporation - India
- London Commodity Brokers - England
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bharathi Cement Corporation - India
- Eastern Energy - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Star Paper Mills Limited - India
- Central Electricity Authority - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Larsen & Toubro Limited - India
- Xindia Steels Limited - India
- Malabar Cements Ltd - India
- Attock Cement Pakistan Limited
- Power Finance Corporation Ltd., India
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- McConnell Dowell - Australia
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Rio Tinto Coal - Australia
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- New Zealand Coal & Carbon
- Kaltim Prima Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- PNOC Exploration Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- MS Steel International - UAE
- Parliament of New Zealand
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Global Business Power Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Straits Asia Resources Limited - Singapore
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- International Coal Ventures Pvt Ltd - India
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Energy Development Corp, Philippines
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- Aditya Birla Group - India
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Vijayanagar Sugar Pvt Ltd - India
- Heidelberg Cement - Germany
- Parry Sugars Refinery, India
- Vizag Seaport Private Limited - India
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