We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 09 January 12
2012: WHAT WILL IT BRING FOR THE DRY BULK MARKET? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 A further increase in dry bulk demand could be the remedy for most of the industry's oversupply issues, together of course with the high level of scrapping activity, as observed during the course of 2011. According to the latest BIMCO report on 2012, a large part of this increase in demand could come from India and its coal needs. The report said that "the year 2011 had barely started before a series of unforeseen events took place across the globe. Most of them affected dry bulk shipping negatively and the large Capesize vessels were particularly under pressure. Amongst the events were the flooding in Australia and South Africa, the triple disaster in Japan and the “Arab Spring” that also affected the supply of oil into Europe.
Half a year down the road, during which many Capesize vessels had earned less than any other dry bulk vessel size, the unexpected happened again. Strong demand for iron ore and coal from China and the recovering Japan, sourced from Brazil and Australia, ignited freight rates for Capesize vessels. A tight tonnage situation in the Atlantic basin combined with increased congestion in loading and discharging ports pushed average rates above USD 30,000 per day.
A far cry from the peaks of the super cycle, but surely an indication of the peak levels we have in sight for the near- to mid-term future as the supply side remains a considerable burden for the industry. The demand side is set to be relatively stable in 2012 although it’s likely to grow somewhat slower than in 2011 – at least in volume terms. Overall iron ore demand is likely to slow. Still, a lower world market price as compared to the domestic costs of mining it within China holds the key to provide positive demand shocks for this valuable steel ingredient. Growing demand for thermal coal from large Asian consumers is said to be a steady demand driver" said BIMCO.
In a separate research report on the outlook of the dry bulk industry, DVB Bank said that the current dry bulk fleet now stands at 8,877 vessels (585.1mio dwt). The average age of the fleet is about 12 years and 59.1% of the fleet is less than 10 years of age. In addition, the average age of vessels less than 10 years old is merely 2.8 years – a very young fleet. Similarly, the orderbook stands at 2,371 vessels (196.3mio dwt) which equates to 33.6% of the current fleet. In dwt terms, large Capes constitute the largest portion of the current fleet while Panamax size vessels have the largest Orderbook. ULBC size range is expanding substantially. So far, three of the 34 Vale ULBCs of 400K+ dwt have delivered.DVB Bank said in its analysis that if the remaining 31 vessels actually deliver, this will have a huge negative impact on all large Cape asset values as well as T/C rates and impact earnings of other Sub-Sectors as well.
Looking at deliveries, a total of 366 vessels of 28.3 million dwt are still headed towards delivery, according to figures up to November of 2011. These vessels represent 14.4% of the orderbook. Given that for the most part these weren't expected to be delivered within 2011, the researcher said that they will be rolled over to 2012. So, it draws the conclusion that "even Even with 40% delays due to slippage, postponement and cancellation, we are poised to cross the 100mio dwt mark this year. In 2012, some 1,431 vessels (121.6mio dwt) are scheduled for delivery, which is about 62% of the current orderbook" said DVB Bank.
In total the dry bulk cargo demand is forecast to rise to approximatly 3.7 billion tons this year. But, as DVB states, the level of the orderbook is too much for it to be absorbed without problems and downward pressure both on ship values and freight rates. "Although scrapping picked up in 2011 to 21.4mio dwt (334 vessels) as of November, this figure is merely 3.5% of the existing fleet" said DVB Bank. It concluded that the vessels which were ordered at the peak of the market back in 2007-2008 should add to distressed asset sales, as their owners won't be able to repay them without huge losses. In essence, the researcher said that the current slowdown will see many ship owners out of the market and bankrupt, due to cash flow problems, as at the moment, they don't have the necessary cash reserves to survive the downturn, like they did back in 2008.
BIMCO's advice towards dry bulk ship owners they should expect the unexpected, as has been the lesson learned. "Maybe even India will begin to influence the market as a significant importer. This would fulfil the prophecy and release a vast potential that has been simmering for a very long time and provide a much-needed second major demand driver. Supplementing China as the dominant factor in the market would create a more sustainable freight market going forward. However, this will not happen in just one year; moreover it appears destined to remain a long and dusty road for several years to come. An optimist would surely name India as the best thing that could happen to the dry bulk shipping industry. In the meantime volatile iron ore exports and strong demand for thermal coal is likely to characterise India’s contribution to the dry bulk markets" concluded the organization.
Source: Nikos Roussanoglou, Hellenic Shipping
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 10 March 14
THE FREIGHT MARKET WAS QUITE FIRM THIS PAST WEEK
COALspot.com: The freight market was quite firm this past week with BDI sharply increased by 22.65 pct week on week and closed at 1543 points, while ...
Saturday, 08 March 14
LETTERS OF INDEMNITY - SKULD
KNOWLEDGE TO ELEVATE
In today's trading market, owners are frequently requested to accept a letter of indemnity (LOI) in exchange for complying ...
Friday, 07 March 14
DRY BULK MARKET TO BENEFIT FROM CHINA'S GDP GROWTH TARGET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
With the dry bulk market freight rates finally making waves, China's aim of 7.5% GDP growth for 2014 mean once again positive news for the shipping ...
Friday, 07 March 14
RBCT, WORLD'S LARGEST COAL EXPORTING TERMINAL SHIPPED 1.78% LESS COAL MONTH ON MONTH
COALspot.com: South Africa's Richards Bay Coal Terminal (RBCT) the single largest export coal terminal in the world, shipped 4.487 million tons of ...
Friday, 07 March 14
INDONESIA SHIPPED 7% LESS COAL IN JANUARY 2014 COMPARED TO ITS DECEMBER EXPORTS
COALspot.com: Indonesia, the world 4th largest coal producer and the Global largest multi grade coal exporter shipped around $1.8* billion ...
|
|
|
Showing 3811 to 3815 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Edison Trading Spa - Italy
- Chamber of Mines of South Africa
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Madhucon Powers Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Krishnapatnam Port Company Ltd. - India
- Global Green Power PLC Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Global Business Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Parliament of New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- Deloitte Consulting - India
- European Bulk Services B.V. - Netherlands
- Bhoruka Overseas - Indonesia
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Electricity Authority, New Zealand
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- Kalimantan Lumbung Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Agrawal Coal Company - India
- SN Aboitiz Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jindal Steel & Power Ltd - India
- Savvy Resources Ltd - HongKong
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- Eastern Coal Council - USA
- Neyveli Lignite Corporation Ltd, - India
- Barasentosa Lestari - Indonesia
- GMR Energy Limited - India
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- Sakthi Sugars Limited - India
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Borneo Indobara - Indonesia
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Toyota Tsusho Corporation, Japan
- Baramulti Group, Indonesia
- Videocon Industries ltd - India
- CIMB Investment Bank - Malaysia
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Heidelberg Cement - Germany
- Kaltim Prima Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- OPG Power Generation Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Commonwealth Bank - Australia
- PTC India Limited - India
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Thiess Contractors Indonesia
- Kapuas Tunggal Persada - Indonesia
- Interocean Group of Companies - India
- VISA Power Limited - India
- MS Steel International - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- Grasim Industreis Ltd - India
- Binh Thuan Hamico - Vietnam
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- Oldendorff Carriers - Singapore
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Star Paper Mills Limited - India
- Uttam Galva Steels Limited - India
- Pendopo Energi Batubara - Indonesia
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Holcim Trading Pte Ltd - Singapore
- Central Java Power - Indonesia
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Meralco Power Generation, Philippines
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Orica Australia Pty. Ltd.
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Tamil Nadu electricity Board
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Orica Mining Services - Indonesia
- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Trasteel International SA, Italy
- Ceylon Electricity Board - Sri Lanka
- India Bulls Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Riau Bara Harum - Indonesia
- The University of Queensland
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Central Electricity Authority - India
- Dalmia Cement Bharat India
- Pipit Mutiara Jaya. PT, Indonesia
- SMG Consultants - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- White Energy Company Limited
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Vedanta Resources Plc - India
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- Larsen & Toubro Limited - India
- Indo Tambangraya Megah - Indonesia
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Gujarat Electricity Regulatory Commission - India
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- Jaiprakash Power Ventures ltd
- Gujarat Sidhee Cement - India
- Posco Energy - South Korea
- Simpson Spence & Young - Indonesia
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Semirara Mining Corp, Philippines
- Bhushan Steel Limited - India
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Leighton Contractors Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- Sinarmas Energy and Mining - Indonesia
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- International Coal Ventures Pvt Ltd - India
- New Zealand Coal & Carbon
- Australian Coal Association
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
|
| |
| |
|
