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Tuesday, 15 February 11
TONNAGE OVERSUPPLY TO CHOKE FREIGHT RATES IN THE COMING MONTHS SAYS BIMCO - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 In a new report assessing the dry bulk market, BIMCO’s analysis suggests that freight rates for Capesize vessels are likely to remain depressed in the coming months, with supply-side pressure being the dominant factor in the fundamental supply-demand equation.
According to BIMCO’s shipping analyst, Peter Sand, “for the smaller ships, modest increases in earnings might be seen in the second and third quarters, boosted by demand for Australian, US and South American grains. At the end of the day such low freight rates spell out disaster for ship owners – in particular the ones trading in the spot markets or on long-term charters on a floating rate linked to the BDI. And when rates are low, even more vessels play the spot markets as they don’t want to enter into long-term deals on such low levels. Brokers are reporting that some owners are refusing charters at current rates in a move to improve the situation” he said.
During most of 2010, Capesize rates have defied gravity on the back of strong demand for particularly coal and also for iron ore. Average time charter rates of $33,298 per day in 2010 were a positive surprise to what was expected to be a hardship year. The strong demand positively affected the market and significantly reduced the downside effects stemming from the heavy inflow of new tonnage into the market. In 2010 the Capesize fleet grew by 202 vessels of 38 million DWT (+22.4%) and the forecast for 2011 is an equally challenging supply side growth said the report.
Still, demand proved to be pretty robust for the most part during 2010. According to Clarksons demand for major and minor bulk grew by 10% last year, with iron ore leading the forray, as advanced economies returned to the market to supplement the stand-still growth from China. Strong coal demand also proved to be a new market parameter and 2011 is also set to provide very solid demand growth figures. Iron ore and coal are basically the only two commodities that are shipped on Capesize vessels. A large amount of vessels continue to be chartered to haul iron ore to China, but the firm volumes are not enough to fully stem the ongoing decline in Capesize rates.
“As an extreme example of too many ships and trades being increasingly front-haul biased from the Atlantic into the Pacific came as the C11 back-haul route slipped into negative territory. On 13 January, the Baltic Exchange Capesize Route C11 from China/Japan to Europe was estimated at minus USD 229 per day. Since then the rates have worsened even further. At those rates, far below break-even OPEX-levels, owners are literally paying charterers to carry their goods in order to reposition the vessel at the lowest possible expense.
Meanwhile, the smaller segments are kept afloat on the back of the multiple commodities transported in those vessels alongside strong demand for grain shipments from the US Gulf. This is helping to ease some of the negative sentiment in the market deriving from the weather-related problems in Australia, Colombia, South Africa, and Indonesia” said BIMCO.
As has already been mentioned, one way for the industry to ease the way to a recovery in freight rates is by demolition of large amounts of old tonnage. So far in 2011, as much as 1.5 million DWT of an average age of 32 years has been reported ready for breaking. In the course of 2010 just 5.7 million DWT was demolished, as the freight rate level did not encourage demolition of tonnage.
Despite low freight rates and high scrap prices, BIMCO expect that 2011 will only see 12 million DWT sold for scrap. Currently, 24 million DWT is 30 years of age or older.
As the World’s number one demolition location, Bangladesh, remains closed for business, India, China and Pakistan offer prices close to $500 per ldt. These price levels have not been around since the tight demolition markets in mid-2008 before the financial crisis.
The active fleet has grown by 1.1% so far in 2011, caused by deliveries of 7.6 million DWT in the form of 85 new built vessels offset by considerable 1.5 million DWT being demolished.
BIMCO forecasts inflow of new dry bulk tonnage in 2011 to reach 83 million DWT, offset by demolition of 12 million DWT. This will make the fleet grow by 13.3% in 2011.
Already in January deliveries in the Capesize segment amounted to 22 ships comprising 4.1 million new DWT.
Last year Vale converted 9 single-hulled VLCC’s into very large ore carriers. In total, 13 million DWT of converted tankers has entered the dry bulk fleet during the past two years. Only a significant amount of converted DWT is expected to enter the fleet in 2011.
Source: Nikos Roussanoglou, Hellenic Shipping
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Thursday, 17 February 11
UNCERTAINTY AND VOLATILITY - FEARNBULK
Handy
Recovering market as evidenced by the solid USD 16k/day achieved by a handymax from Continent to east Med with scrap. More short period requ ...
Tuesday, 15 February 11
INDONESIAN COAL FOR HARYANA THERMAL PLANTS - PUNJAB NEWS LINE
To tide over the recurring coal shortage at thermal plants Haryana Power Generation Corporation Limited (HPGCL) has gone for Malaysian coal for its ...
Sunday, 13 February 11
COAL MARKETS 2011 TO HIGHLIGHT INDONESIAN COAL AND NEW SOURCES OF COAL SUPPLY
“Over 300 senior decision-makers from coal mining, power and trading companies expected to congregate in Singapore”
Press Release - K ...
Sunday, 13 February 11
YEAR OF RABBIT PUSHING FREIGHT MARKET UP
COALspot.com – “The market finally moved up with firmness in all sectors with some positive signs of markets recovering”, said Cap ...
Friday, 11 February 11
DRY BULK MARKET HEATING UP ON FRESH CARGO DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market is on a high this week, with owners of smaller vessels turning their attention towards the spot market, in order to take advanta ...
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- Binh Thuan Hamico - Vietnam
- Ambuja Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Tamil Nadu electricity Board
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- Globalindo Alam Lestari - Indonesia
- Manunggal Multi Energi - Indonesia
- Cement Manufacturers Association - India
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- Minerals Council of Australia
- GAC Shipping (India) Pvt Ltd
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- Toyota Tsusho Corporation, Japan
- MS Steel International - UAE
- Goldman Sachs - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
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- Banpu Public Company Limited - Thailand
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- PNOC Exploration Corporation - Philippines
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- The University of Queensland
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- Timah Investasi Mineral - Indoneisa
- India Bulls Power Limited - India
- Africa Commodities Group - South Africa
- Bayan Resources Tbk. - Indonesia
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- Indian Oil Corporation Limited
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- Indian Energy Exchange, India
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- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
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- Kideco Jaya Agung - Indonesia
- Alfred C Toepfer International GmbH - Germany
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- Deloitte Consulting - India
- Siam City Cement - Thailand
- Bukit Baiduri Energy - Indonesia
- PowerSource Philippines DevCo
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Sidhee Cement - India
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Electricity Generating Authority of Thailand
- Maheswari Brothers Coal Limited - India
- Antam Resourcindo - Indonesia
- Simpson Spence & Young - Indonesia
- Global Coal Blending Company Limited - Australia
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Romanian Commodities Exchange
- Port Waratah Coal Services - Australia
- Dalmia Cement Bharat India
- Kobexindo Tractors - Indoneisa
- Wilmar Investment Holdings
- Electricity Authority, New Zealand
- Makarim & Taira - Indonesia
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Indogreen Group - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Attock Cement Pakistan Limited
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Aditya Birla Group - India
- Jindal Steel & Power Ltd - India
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Ceylon Electricity Board - Sri Lanka
- Petron Corporation, Philippines
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Trasteel International SA, Italy
- Indo Tambangraya Megah - Indonesia
- Price Waterhouse Coopers - Russia
- Posco Energy - South Korea
- ICICI Bank Limited - India
- Orica Mining Services - Indonesia
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- Ind-Barath Power Infra Limited - India
- VISA Power Limited - India
- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- Georgia Ports Authority, United States
- Kaltim Prima Coal - Indonesia
- Madhucon Powers Ltd - India
- Sarangani Energy Corporation, Philippines
- White Energy Company Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- Intertek Mineral Services - Indonesia
- Bangladesh Power Developement Board
- London Commodity Brokers - England
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Economic Council, Georgia
- Mercator Lines Limited - India
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- Riau Bara Harum - Indonesia
- Thiess Contractors Indonesia
- Bhatia International Limited - India
- Baramulti Group, Indonesia
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- Ministry of Finance - Indonesia
- Bhoruka Overseas - Indonesia
- Kohat Cement Company Ltd. - Pakistan
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- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Jorong Barutama Greston.PT - Indonesia
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Heidelberg Cement - Germany
- Iligan Light & Power Inc, Philippines
- Barasentosa Lestari - Indonesia
- Ministry of Transport, Egypt
- Star Paper Mills Limited - India
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Energy - Thailand
- Rio Tinto Coal - Australia
- Parry Sugars Refinery, India
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Anglo American - United Kingdom
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Indonesian Coal Mining Association
- Semirara Mining and Power Corporation, Philippines
- SMC Global Power, Philippines
- Semirara Mining Corp, Philippines
- Vedanta Resources Plc - India
- TNB Fuel Sdn Bhd - Malaysia
- Australian Coal Association
- Thai Mozambique Logistica
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Jaiprakash Power Ventures ltd
- Rashtriya Ispat Nigam Limited - India
- Larsen & Toubro Limited - India
- CIMB Investment Bank - Malaysia
- Samtan Co., Ltd - South Korea
- Sakthi Sugars Limited - India
- Parliament of New Zealand
- GMR Energy Limited - India
- Uttam Galva Steels Limited - India
- Malabar Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Australian Commodity Traders Exchange
- Wood Mackenzie - Singapore
- Gujarat Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
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