We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Wednesday, 24 April 19
SHIPPING MARKET INSIGHT - IS THIS A BANKERS' MARKET? - INTERMODAL
 Over the last 10 years, many of the traditional and top lending banks have made the decision to either downsize their portfolios or even exit shipping. According to Petrofin, Top 40 shipping banks’ lending has fallen since 2008 by 25%, whilst at the same time the world fleet has grown by 28%. On top of this, out of the banks that have decided to stay in the game, not all of them have the strength, the budget and the competitive terms to do so. As a result, the availability of financing for small-medium size companies has become a scarce, hence a luxury good. In other words, even when there is available financing for these companies, its cost is really prohibitive.
Apart from the banks’ endogenous and structural issues, their shipping departments also need to decide where to allocate their budget. In an era of growing LNG demand, numerous large shipping firms invest in the very capital intensive LNG carriers. Most of the large banks are there to support their very good clients. However, this means that a big percentage of their budget (and resources in general) end up to the LNG carriers’ financing, i.e. not much budget left for the remaining sectors/shipping projects. So, when these banks are left with a limited budget to spend, they become very selective and of course their pricing goes up as the list of the waiting finance projects is significant.
But what about the alternative ways of financing for the small and medium size companies? Asian leasing has indeed filled part of the gap that was created with the traditional banks’ exit, however, again this is available for owners with larger fleets and bigger ticket sizes. Public markets have been quiet regarding shipping in general; bond markets again require significant size. Therefore, the small companies are left with the option of the so called alternative financing. Private equity and hedge funds do have the funds to invest, but this only happens when they get the return of capital that they require; given that this most of the times is a double digit figure, then the capital cost for the small/medium ship owners increases dramatically.
There are quite a few new European banks that have joined ship financing – whose pricing sits in between the one of the traditional banks and that of leasing – however, their current budget is nowhere near to filling the gap that was left after the departure of the big banks.
Therefore, small-medium size shipping companies struggle to find competitive finance terms. Someone may argue that this had always been the case, however, in today’s ship finance market it is evident that the financing of small-medium size shipping companies is not the banks’ first priority, which should not be the case given the performance of such companies during recent years. Indeed, many small-medium size companies have proved their top quality and professionalism by not only surviving the crisis but also by getting back into expansion mode. There are many ship-owning companies falling into this category. Indicatively, only in Greek shipping there are more than 150 companies that own 3-15 bulk carriers, of more than 28,000 dwt and younger than 17 years old. A big percentage of these companies are long standing and solid companies; however, face the above finance issues.
This is the clientele that will provide the bank with projects of good credit quality and at the right pricing and therefore should be the one attracting the attention of ship financiers if they wish to make their business efficient and dynamic again.
By George Laios
Deputy CEO, Intermodal Group
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
The Information contained within the website of COALspot.com is intended for informational purposes only and is not intended as professional counsel and should not be used as such.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Sunday, 28 April 19
SUPRAMAX: A 54,000DWT VESSEL OPEN GRESIK FIXED VIA AUSTRALIA, REDELIVERY CHINA, IN THE MID $12,000S - BALTIC BRIEFING
Capesize
Following the holidays, activity increased in both the Pacific and Atlantic Basins. The 5TC average rallied, closing at $8,596, up $1, ...
Wednesday, 24 April 19
PANAMAX: IN THE EAST, THE MARKET MOVED SIDE-WAYS, WITH FEWER COAL CARGOES FROM INDONESIA PUTTING PRESSURE ON RATES - INTERMODAL
Sentiment in the Dry Bulk market slowly but steadily kept improving last week as Capesize rates remained in recovery mode and Panamax earnings also ...
Monday, 22 April 19
COAL INDIA TO ASK POWER PLANTS TO CUT COAL IMPORTS - DNA
Co to encourage import substitution with domestic supplies at power plants
Surge in coal imports has now forced Coal India Ltd (CIL) ...
Thursday, 18 April 19
BIMCO SEES HARD TIMES AHEAD FOR CAPESIZES
China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Ca ...
Wednesday, 17 April 19
ONCE AGAIN WE FACED WITH THE SITUATION OF THE DRY BALTIC INDEX BEING BELOW 1,000 POINTS - INTERMODAL
Once again we are faced with the situation of the Dry Baltic Index being below 1,000 points. In a market where the feeling of insecurity is almost ...
|
|
|
Showing 1411 to 1415 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Directorate General of MIneral and Coal - Indonesia
- Riau Bara Harum - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Jindal Steel & Power Ltd - India
- Aboitiz Power Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Jorong Barutama Greston.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- MS Steel International - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Global Green Power PLC Corporation, Philippines
- Heidelberg Cement - Germany
- Ceylon Electricity Board - Sri Lanka
- Therma Luzon, Inc, Philippines
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- Central Electricity Authority - India
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- OPG Power Generation Pvt Ltd - India
- ICICI Bank Limited - India
- Malabar Cements Ltd - India
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- IEA Clean Coal Centre - UK
- New Zealand Coal & Carbon
- Mintek Dendrill Indonesia
- Deloitte Consulting - India
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Orica Australia Pty. Ltd.
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- The State Trading Corporation of India Ltd
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- PTC India Limited - India
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Madhucon Powers Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Wilmar Investment Holdings
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Meenaskhi Energy Private Limited - India
- ASAPP Information Group - India
- The University of Queensland
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- Miang Besar Coal Terminal - Indonesia
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Merrill Lynch Commodities Europe
- Agrawal Coal Company - India
- Port Waratah Coal Services - Australia
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- Maheswari Brothers Coal Limited - India
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Sidhee Cement - India
- Carbofer General Trading SA - India
- TeaM Sual Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Mercator Lines Limited - India
- Indika Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Directorate Of Revenue Intelligence - India
- Iligan Light & Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Baramulti Group, Indonesia
- Holcim Trading Pte Ltd - Singapore
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Latin American Coal - Colombia
- Ministry of Transport, Egypt
- Attock Cement Pakistan Limited
- Parliament of New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Central Java Power - Indonesia
- Kapuas Tunggal Persada - Indonesia
- San Jose City I Power Corp, Philippines
- Siam City Cement - Thailand
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- Bhatia International Limited - India
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
- Xindia Steels Limited - India
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vizag Seaport Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Romanian Commodities Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Sakthi Sugars Limited - India
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Ambuja Cements Ltd - India
- Energy Link Ltd, New Zealand
- Goldman Sachs - Singapore
- Sinarmas Energy and Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Power Finance Corporation Ltd., India
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- Thiess Contractors Indonesia
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Coalindo Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Gujarat Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Australian Coal Association
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- Salva Resources Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Intertek Mineral Services - Indonesia
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Kideco Jaya Agung - Indonesia
- Coal and Oil Company - UAE
- Bukit Baiduri Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Ministry of Mines - Canada
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- Bhushan Steel Limited - India
- Indo Tambangraya Megah - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Barasentosa Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
|
| |
| |
|
