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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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Wednesday, 27 June 12
DIRECTORATE GENERAL OF MINERAL AND COAL OF INDONESIA INTRODUCES ON-LINE SYSTEM FOR MINING PRODUCTS EXPORT APPROVAL
COALspot.com - Directorate General of Mineral and Coal of Indonesia has released "Clear and Clean" certificate for another 33 coal miners ...
Monday, 25 June 12
RIO TINTO MAKES FIRST COAL SHIPMENT FROM MOZAMBIQUE
Rio Tinto has started exporting premium hard coking coal from its Benga Mine in the Moatize Basin in Mozambique. The first shipment of 34,000 tonnes ...
Sunday, 24 June 12
SUPRAMAX FREIGHT MARKET FIRMED UP FROM INDONESIA TO INDIA - VISTAAR
COALspot.com - This week all the segments gained and marked was firm in the Supramax and Handy size sector, where as the Cape and Panamax inde ...
Saturday, 23 June 12
COAL PRICES APPETITE FOR ROLLER-COASTER RIDES
COALspot.com - SGX AsiaClear OTC Coal Swaps have suffered something of a roller-coaster ride in terms of prices during this week. SGX’s Indone ...
Friday, 22 June 12
PRESENT SPOT WEAKNESS IS TEMPORARY, SEASONAL AND RISE AS WINTER APPROACHES - BUMI
COALspot.com - PT Bumi Resources Tbk, the world’s one of the largest coal producer and Indonesia’s largest multi grade coal miner has no ...
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- Videocon Industries ltd - India
- Petron Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Malabar Cements Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Jindal Steel & Power Ltd - India
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- Minerals Council of Australia
- Parliament of New Zealand
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Heidelberg Cement - Germany
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Bulk Trading Sa - Switzerland
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Eastern Coal Council - USA
- Billiton Holdings Pty Ltd - Australia
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Attock Cement Pakistan Limited
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- Wood Mackenzie - Singapore
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Leighton Contractors Pty Ltd - Australia
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- Mintek Dendrill Indonesia
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- New Zealand Coal & Carbon
- Carbofer General Trading SA - India
- Straits Asia Resources Limited - Singapore
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Makarim & Taira - Indonesia
- PTC India Limited - India
- Anglo American - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- White Energy Company Limited
- Ceylon Electricity Board - Sri Lanka
- GMR Energy Limited - India
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- VISA Power Limited - India
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- TNB Fuel Sdn Bhd - Malaysia
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- Marubeni Corporation - India
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Mercuria Energy - Indonesia
- Eastern Energy - Thailand
- Borneo Indobara - Indonesia
- Grasim Industreis Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Chamber of Mines of South Africa
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- Maheswari Brothers Coal Limited - India
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Bangladesh Power Developement Board
- ASAPP Information Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Rashtriya Ispat Nigam Limited - India
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Ministry of Mines - Canada
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Sidhee Cement - India
- India Bulls Power Limited - India
- The Treasury - Australian Government
- Madhucon Powers Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- CIMB Investment Bank - Malaysia
- Altura Mining Limited, Indonesia
- Indika Energy - Indonesia
- MS Steel International - UAE
- Economic Council, Georgia
- Central Electricity Authority - India
- Port Waratah Coal Services - Australia
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Goldman Sachs - Singapore
- Indian Energy Exchange, India
- Global Business Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Xindia Steels Limited - India
- Meenaskhi Energy Private Limited - India
- Deloitte Consulting - India
- Vijayanagar Sugar Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining Corp, Philippines
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Ministry of Finance - Indonesia
- Chettinad Cement Corporation Ltd - India
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- Vizag Seaport Private Limited - India
- Meralco Power Generation, Philippines
- Renaissance Capital - South Africa
- Kumho Petrochemical, South Korea
- PowerSource Philippines DevCo
- Star Paper Mills Limited - India
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Kideco Jaya Agung - Indonesia
- Larsen & Toubro Limited - India
- Agrawal Coal Company - India
- Iligan Light & Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- AsiaOL BioFuels Corp., Philippines
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