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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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Tuesday, 07 January 20
CLEANER AIR IN 2020: 0.5% SULPHUR CAP FOR SHIPS ENTERS INTO FORCE WORLDWIDE - EUROPEAN COMMISSION
From 1 January 2020, the maximum sulphur content of marine fuels is reduced to 0.5% (down from 3.5%) globally – reducing air pollution and pr ...
Tuesday, 07 January 20
BHP EYES INDIA FOR COAL GROWTH AS CHINA DEMAND FLATLINES - SYDNEY MORNING HERALD
Australia’s largest miner, BHP, believes the long-term trajectory of the emerging economy of India and the acceleration of its steelmaking ou ...
Sunday, 05 January 20
BUNKER QUALITY CLAIMS IN 2020 - ISSUES TO CONSIDER - CLYDE&CO
KNOWLEDGE TO ELEVATE
In recent years the shipping industry has faced a significant number of bunker quality claims, most notably ari ...
Saturday, 04 January 20
SUPRAMAX: A 53,000DWT VESSEL FIXING DELIVERY INDONESIA TRIP TO CHINA AT $4,000 AND A 58,000DWT SHIP FIXING DELIVERY EAST KALIMANTAN TRIP TO THAILAND AT $5,500 - BALTIC BRIEFING
Capesize
The New Year started with an erosion on pre-Christmas rates as the higher low sulphur fuel costs due to IMO 2020 affected levels. From ...
Thursday, 02 January 20
DMO 2020 PRICE SET FOR ELECTRICITY SECTOR - IAN WOLLFF
On the 26th December 2019, the Minister of Energy and Mineral Resources (ESDM) issued the decree No. 261.K/30.MEM/2019 about the States needs for c ...
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Showing 1211 to 1215 news of total 6871 |
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- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Wilmar Investment Holdings
- CIMB Investment Bank - Malaysia
- Intertek Mineral Services - Indonesia
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Ambuja Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Minerals Council of Australia
- Semirara Mining Corp, Philippines
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- Ministry of Transport, Egypt
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- London Commodity Brokers - England
- Planning Commission, India
- Electricity Generating Authority of Thailand
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- Miang Besar Coal Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tata Chemicals Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indika Energy - Indonesia
- Dalmia Cement Bharat India
- Larsen & Toubro Limited - India
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Baramulti Group, Indonesia
- Salva Resources Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Renaissance Capital - South Africa
- Aboitiz Power Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Globalindo Alam Lestari - Indonesia
- Central Java Power - Indonesia
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- Mercuria Energy - Indonesia
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- Savvy Resources Ltd - HongKong
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Mercator Lines Limited - India
- Sakthi Sugars Limited - India
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Heidelberg Cement - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Merrill Lynch Commodities Europe
- Lanco Infratech Ltd - India
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- OPG Power Generation Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Energy Development Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Finance - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Parliament of New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Romanian Commodities Exchange
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Altura Mining Limited, Indonesia
- White Energy Company Limited
- Global Green Power PLC Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Maheswari Brothers Coal Limited - India
- Star Paper Mills Limited - India
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- VISA Power Limited - India
- Independent Power Producers Association of India
- Sarangani Energy Corporation, Philippines
- Mjunction Services Limited - India
- Simpson Spence & Young - Indonesia
- Bukit Baiduri Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Australian Commodity Traders Exchange
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Orica Australia Pty. Ltd.
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Singapore Mercantile Exchange
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petron Corporation, Philippines
- Siam City Cement - Thailand
- The University of Queensland
- Vizag Seaport Private Limited - India
- Grasim Industreis Ltd - India
- Meralco Power Generation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Sical Logistics Limited - India
- ASAPP Information Group - India
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- SMC Global Power, Philippines
- Energy Link Ltd, New Zealand
- Edison Trading Spa - Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Wood Mackenzie - Singapore
- Oldendorff Carriers - Singapore
- Global Coal Blending Company Limited - Australia
- Billiton Holdings Pty Ltd - Australia
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Karaikal Port Pvt Ltd - India
- Bharathi Cement Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- Attock Cement Pakistan Limited
- Jorong Barutama Greston.PT - Indonesia
- Georgia Ports Authority, United States
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Latin American Coal - Colombia
- PowerSource Philippines DevCo
- Jaiprakash Power Ventures ltd
- Directorate General of MIneral and Coal - Indonesia
- Xindia Steels Limited - India
- Rio Tinto Coal - Australia
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- SN Aboitiz Power Inc, Philippines
- Thiess Contractors Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bhatia International Limited - India
- Ministry of Mines - Canada
- McConnell Dowell - Australia
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- Malabar Cements Ltd - India
- Indian Energy Exchange, India
- Coastal Gujarat Power Limited - India
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
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