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Friday, 06 April 12
DRY BULK MARKET SWIFT TO HALT FALL ON RENEWED DEMAND FOR CAPESIZES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 The dry bulk managed to put a stop to the recent falls, which came as a result of a lacklustre demand for smaller vessel sizes. Although this trend has remained the same, the return of Chinese charterers from their three-day holidays marked a stronger demand for Capesizes yesterday, which in turn was enough to offset the lack of interest for smaller vessels and lead the market to higher ground. The Baltic Dry Index (BDI) was up by 0..22% to 928 points yesterday, with Capesizes gaining 2.17% on the day and reaching 1,507 points. By contrast, the demise of the Supramax market was again evident, with the relative index losing 1.66%, while Panamaxes were also down by 0.67%.
Detailing the oversupply issues which have caused the dry bulk market to retreat to such low levels since the start of the year, Intermodal’s Theodore Ntalakos said that “the freight market and other circumstances were quite convenient for many shipowners who while acting independently and rationally consulting their own self-interest, ordered new buildings even when it was clear that in the long-term the excessive tonnage would eventually suffocate the freight market. It is a real-life example of game theory that shows why two or more individuals might not cooperate, even if it is in their best interest to do so” said Mr. Ntalakos.
He went on to give an example to make his case. “Say we have one shipowner ( Shipowner A) and all the rest shipowners (Shipowner B). Each of their strategy is either to expand by ordering the new fuel efficient vessels or not to order and buy a vessel from the second hand market. We have four possible scenarios:
I. If Shipowner A orders and no one else does then he will get the benefit of new designs, and earn say $10, B stays behind and earns $1
II. If both A and B order then they lose the advantage and they earn very little - $2,
III. If no one orders then they earn moderately from their existing fleet - $5 each, and
IV. If shipowner A does not order but 'B' orders then 'A' will earn very little because the charterers will prefer B's ECO ships – A earns $1, B earns $10.
Here, regardless of what the other decides, each shipowner gets a higher pay-off by ordering new vessels:
I. If B does not order, the payoffs for A are $5 or $10 so he will always chose $10 i.e to order.
II. If B orders, the payoffs for A are $1 or $2 so he will always chose $2 i.e to order
The game is symmetric so Shipower B would always act the same way which means that both shipowers would order new vessels. Since both rational owners decide to order new vessels each receives a lower reward than if both were not to order!! So, rational decision-making results being worse off than if each chose not to order and accept to earn less. As the two shipowners can’t see what the others are doing and cannot play a cooperative game, they will decide to maximize their pay-off and always proceed with orders” said Mr. Ntalakos in a rather interesting undertaking.
He concluded his analysis by stating “we need however to point out that the new ECO ships especially with the current restrain on finance, will only be a small part of the total fleet and orderbook and it will take years to play a substantial part and drive the older vessels out of the market, so we expect owners who order such vessels with today's new builiding and bunker prices to have the competitive advantage for the years to come.
So, there you have it, Shipping is a non-cooperative game. Then why do pools exist? Even in pools if each member's interest to put the next (and succeeding) vessel he acquires into the pool and the demand is limited then the quality of the common is damaged for everybody. So like everything else in life one needs to find the proper equilibrium between cooperating and looking after one's self-interest” he said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Thursday, 05 July 12
BUMI ACHIEVES HIGHER SELLING PRICE IN FIRST QUARTER
COALspot.com - PT Bumi Resources Tbk (BUMI), Indonesia's largest coal producer and exporter, has successfully maintained a higher sales margin, des ...
Tuesday, 03 July 12
DRY BULK MARKET INCHED FORWARD AT THE START OF THE WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched forward at the beginning of the new week, prior to the US holidays regarding the celebration of the 4th of July, which is ...
Monday, 02 July 12
ORPHEUS STRENGTHENS REVENUE STREAM WITH NEW ROYALTY AGREEMENT AT THE B2 COAL PROJECT
Orpheus Energy (ASX:OEG) is pleased to advise that it has executed a life of mine Royalty Agreement with Indonesian mining contractor PT Debbia Mini ...
Monday, 02 July 12
DRY BULK DEMAND TO RISE TO 3.6 BILLION TONNES IN 2012, BUT NEW BUILDING DELIVERIES ARE
In its latest analysis on the dry bulk market fundamentals, DVB Bank said that dry bulk cargo demand is forecast to rise to approximately 3.6 billio ...
Sunday, 01 July 12
AUSTRALIAS CARBON TAX - SUNIL K KUMBHAT
COALspot.com - Climate Change
Climate change and global warming have now become buzzwords the world over. The disastrous consequences for global ...
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- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pendopo Energi Batubara - Indonesia
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kumho Petrochemical, South Korea
- Australian Commodity Traders Exchange
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- PowerSource Philippines DevCo
- Tata Chemicals Ltd - India
- Kaltim Prima Coal - Indonesia
- Energy Development Corp, Philippines
- Coalindo Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Makarim & Taira - Indonesia
- White Energy Company Limited
- Bukit Makmur.PT - Indonesia
- Borneo Indobara - Indonesia
- Oldendorff Carriers - Singapore
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Vizag Seaport Private Limited - India
- Bulk Trading Sa - Switzerland
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
- Straits Asia Resources Limited - Singapore
- Antam Resourcindo - Indonesia
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Tamil Nadu electricity Board
- Dalmia Cement Bharat India
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- PTC India Limited - India
- Eastern Coal Council - USA
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- Cement Manufacturers Association - India
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- Bukit Baiduri Energy - Indonesia
- Chamber of Mines of South Africa
- Manunggal Multi Energi - Indonesia
- Agrawal Coal Company - India
- Rio Tinto Coal - Australia
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Independent Power Producers Association of India
- Altura Mining Limited, Indonesia
- Mjunction Services Limited - India
- Economic Council, Georgia
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- MS Steel International - UAE
- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Siam City Cement - Thailand
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Simpson Spence & Young - Indonesia
- Madhucon Powers Ltd - India
- Coal and Oil Company - UAE
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Latin American Coal - Colombia
- Sinarmas Energy and Mining - Indonesia
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- VISA Power Limited - India
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Indonesian Coal Mining Association
- Samtan Co., Ltd - South Korea
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- Petron Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meralco Power Generation, Philippines
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Kapuas Tunggal Persada - Indonesia
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- ASAPP Information Group - India
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Romanian Commodities Exchange
- Neyveli Lignite Corporation Ltd, - India
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Baramulti Group, Indonesia
- Goldman Sachs - Singapore
- Aboitiz Power Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- CIMB Investment Bank - Malaysia
- Medco Energi Mining Internasional
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- International Coal Ventures Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Port Waratah Coal Services - Australia
- Bayan Resources Tbk. - Indonesia
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Intertek Mineral Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Wood Mackenzie - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Meenaskhi Energy Private Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- LBH Netherlands Bv - Netherlands
- Therma Luzon, Inc, Philippines
- Sakthi Sugars Limited - India
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Carbofer General Trading SA - India
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- Singapore Mercantile Exchange
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
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