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Saturday, 21 December 19
SHIPPING'S SUPPLY AND DEMAND TRENDING OFF BALANCE - BIMCO
 One of the most worrying trends that has developed recently – which will affect shipping demand in the years to come – is the falling trade-to-GDP ratio.
The falling ratio can be explained by slowing globalistation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.
The trade war is the clearest example of these extra barriers to trade, and although a phase 1 deal was reached in December, the most difficult issues have yet to be addressed, and BIMCO therefore expects the trade war to continue to plague shipping between the US and China in 2020. Unfortunately, they are not the only countries engaging in tariff wars. The EU also faces additional tariffs from the US and we see trade tensions between Japan and South Korea.
The effects of the worsening of the fundamental shipping market balances this year will be felt in 2020, as the balance is not reset to zero when the calendar year changes. BIMCO continues to warn that the worsening balance between the supply of ships and the demand will be detrimental to shipowners’ ability to pass on the additional costs associated with compliance of the new IMO 2020 Sulphur Cap. It will depend on the freight rates to which extent the additional costs are covered, which in turn depend on the market conditions; the better the market, the easier it is to pass costs on.
Dry Bulk shipping
The biggest concern for Capesize shipping in 2020 is the trend in China, where iron ore imports may fall for the third year in a row. The structural change in China’s steel production, towards using scrap steel in favour of imported iron ore, means that Chinese demand for iron ore can no longer be counted on to increase demand for Capesize ships, with imports having peaked in 2017.
For the dry bulk shipping industry there is more bad news from China. Its soya bean imports have become an important part of the trade war and how it is viewed, but even aside from the trade war, the outlook for soya bean trades into China are weak. Its demand will be considerably lower due to the largest ever culling of pigs which consume most of China’s soya bean imports. It will take years for the Chinese pig population to return to the same size as before the cull, and even then, lowering the soya content in pig’s feed will have lasting consequences on these trades.
The high fleet growth in 2019 (4.1%) will play out into 2020 when the fleet is also expected to grow by more than demand. The cumulative impact of these growth rates mean that the gap between demand for shipping and the supply of ships will continue to grow, putting pressure on freight rates throughout the year.
Tanker Shipping
Crude oil tankers have certainly been in the headlines in 2019 due to geopolitical developments and as freight rates reached record levels as a result, but going into 2020, the fundamentals remain unchanged. This means that after the seasonal boost fades away in the first quarter, the high freight rates in the VLCC-market are likely to disappear, as the market fundamentals have in fact worsened in 2019, with an eight year high fleet growth of 6.3%.
Fleet growth has also been high in the oil product tanker market, with many owners aiming to benefit from the IMO 2020 Sulphur Cap and the boost that BIMCO expects it will bring to the oil product tanker shipping industry. The boost are on the back of the new trades for the transport of compliant bunker fuels from the refineries to the bunkering ports.
While this boost will improve tanker earnings in the first 3-6 months of 2020, once the short term boost will fade away, the challenge facing the market is that the new ships will still be around , and will instead be fighting for cargoes in an already over-supplied market.
One of the major developments expected in 2020 is for the US to become a net exporter of crude oil on an annual basis. The increasing proportion of global crude oil exports coming from the US is good news for the tanker industry as this involves longer sailing distances to the Far East, where the major importers are, compared to exports from the Middle East.
Source: Peter Sand, Chief Shipping Analyst, BIMCO
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Wednesday, 26 February 20
SHIPPING MARKET INSIGHT - INTERMODAL
Coming from one of its busiest periods historically, with a list of scrubber and BWMS retrofits on a waiting list, the ship repair sector is witnes ...
Wednesday, 26 February 20
AS ALL OF THE GLOBAL COAL GIANTS EXIT SOUTH AFRICA, ESKOM TO DEPEND ON TWO MINERS FOR 70% OF ITS SUPPLY - BUSINESS INSIDER
While some of its politicians continue to imagine that coal has a future in South Africa, two key developments from the real world show that securi ...
Tuesday, 25 February 20
DELTA DUNIA MAKMUR REGISTERED A NET PROFIT OF US$20 MILLION FOR FY 2019
PT Delta Dunia Makmur, one of the largest coal mining company in Indonesia, has recorded an US$882 million revenue for FY 2019, 1% lower compared t ...
Tuesday, 25 February 20
SHIPPING UPDATE - ALLIED
The positive feeling and optimism for a fresh rally during the first few months of 2020 that prevailed in the tanker markets during the final quart ...
Monday, 24 February 20
COULD SOME VLSFO FUELS BE BANNED? - GIBSON
The run up to the implementation of the new IMO rules on marine fuels from1st January 2020 had owners and charterers analysing the vari ...
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Showing 1106 to 1110 news of total 6871 |
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- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- London Commodity Brokers - England
- Toyota Tsusho Corporation, Japan
- Heidelberg Cement - Germany
- Georgia Ports Authority, United States
- Kartika Selabumi Mining - Indonesia
- Indonesian Coal Mining Association
- Jindal Steel & Power Ltd - India
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Xindia Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Larsen & Toubro Limited - India
- Coal and Oil Company - UAE
- Karbindo Abesyapradhi - Indoneisa
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- Mintek Dendrill Indonesia
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- Ministry of Finance - Indonesia
- Chettinad Cement Corporation Ltd - India
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- Thai Mozambique Logistica
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- Antam Resourcindo - Indonesia
- Power Finance Corporation Ltd., India
- CIMB Investment Bank - Malaysia
- Siam City Cement PLC, Thailand
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- Siam City Cement - Thailand
- Rashtriya Ispat Nigam Limited - India
- Dalmia Cement Bharat India
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- Oldendorff Carriers - Singapore
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Economic Council, Georgia
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- Orica Australia Pty. Ltd.
- Eastern Energy - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Standard Chartered Bank - UAE
- Minerals Council of Australia
- Sindya Power Generating Company Private Ltd
- Sarangani Energy Corporation, Philippines
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Meralco Power Generation, Philippines
- PTC India Limited - India
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- SMC Global Power, Philippines
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Energy Development Corp, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- Indian Oil Corporation Limited
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Timah Investasi Mineral - Indoneisa
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- Chamber of Mines of South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Singapore Mercantile Exchange
- Ceylon Electricity Board - Sri Lanka
- Medco Energi Mining Internasional
- Wood Mackenzie - Singapore
- Central Electricity Authority - India
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- White Energy Company Limited
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Africa Commodities Group - South Africa
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Grasim Industreis Ltd - India
- Kepco SPC Power Corporation, Philippines
- Agrawal Coal Company - India
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- Australian Coal Association
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- CNBM International Corporation - China
- Commonwealth Bank - Australia
- The University of Queensland
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Aditya Birla Group - India
- Marubeni Corporation - India
- Bayan Resources Tbk. - Indonesia
- IHS Mccloskey Coal Group - USA
- Barasentosa Lestari - Indonesia
- Iligan Light & Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- Energy Link Ltd, New Zealand
- San Jose City I Power Corp, Philippines
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thiess Contractors Indonesia
- Sojitz Corporation - Japan
- Anglo American - United Kingdom
- Indo Tambangraya Megah - Indonesia
- The State Trading Corporation of India Ltd
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Parliament of New Zealand
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Formosa Plastics Group - Taiwan
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Maheswari Brothers Coal Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Renaissance Capital - South Africa
- Star Paper Mills Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Banpu Public Company Limited - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- Electricity Generating Authority of Thailand
- Simpson Spence & Young - Indonesia
- SN Aboitiz Power Inc, Philippines
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Goldman Sachs - Singapore
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