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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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Tuesday, 12 June 12
ITACHA RESOURCES BUYS SARANA MARINE - INSIDER STORIES
Insider Stories reported that, coal mining company PT Itacha Resources, a joint venture between Anthoni Salim and Glenn Yusuf, announced that Itacha ...
Monday, 11 June 12
BAHANA FORECASTS THE COAL PRICES WILL FALL FURTHER
COALspot.com - Growing US coal supplies + low shipping costs = Asia as target.
According to Irwan Budiarto analyst at Bahana Securities, US ...
Monday, 11 June 12
ASIAN COAL TRADING COMMUNITY EMBRACES API 5 AND API 8
Press Release - The Asian coal trading community is embracing the API 5 and API 8 indexes for its swap contracts.
The API 5 index represents 5,50 ...
Sunday, 10 June 12
FREIGHT MARKET EXPECTED TO REMAIN WEAK FOR NEXT FEW WEEKS - VISTAAR
COALspot.com - The BDI continued to fall this week and down by 2.99 pct closing at 877 points.
The Cape index also was down by 5.78 pct closing a ...
Friday, 08 June 12
ESSAR ENERGY RECEIVES FINAL APPROVAL FOR INDONESIAN COAL BLOCK
COALspot.com - Essar Energy plc, the India-focused integrated energy company, today announced that it has received final ‘Pinjam Pakai’ ...
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- ASAPP Information Group - India
- Central Java Power - Indonesia
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Kobexindo Tractors - Indoneisa
- Iligan Light & Power Inc, Philippines
- Malabar Cements Ltd - India
- Indogreen Group - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- Bulk Trading Sa - Switzerland
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Timah Investasi Mineral - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- Port Waratah Coal Services - Australia
- Dalmia Cement Bharat India
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Georgia Ports Authority, United States
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Krishnapatnam Port Company Ltd. - India
- Samtan Co., Ltd - South Korea
- Bhoruka Overseas - Indonesia
- Thiess Contractors Indonesia
- India Bulls Power Limited - India
- Karaikal Port Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Anglo American - United Kingdom
- Power Finance Corporation Ltd., India
- Jorong Barutama Greston.PT - Indonesia
- Videocon Industries ltd - India
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Globalindo Alam Lestari - Indonesia
- Independent Power Producers Association of India
- Planning Commission, India
- PNOC Exploration Corporation - Philippines
- Global Business Power Corporation, Philippines
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Leighton Contractors Pty Ltd - Australia
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- Barasentosa Lestari - Indonesia
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Neyveli Lignite Corporation Ltd, - India
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CNBM International Corporation - China
- Indika Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- MS Steel International - UAE
- Oldendorff Carriers - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Goldman Sachs - Singapore
- The Treasury - Australian Government
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- VISA Power Limited - India
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- London Commodity Brokers - England
- Sojitz Corporation - Japan
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Bharathi Cement Corporation - India
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- Electricity Authority, New Zealand
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Gujarat Mineral Development Corp Ltd - India
- Parliament of New Zealand
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Formosa Plastics Group - Taiwan
- Chamber of Mines of South Africa
- The State Trading Corporation of India Ltd
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Agrawal Coal Company - India
- PTC India Limited - India
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Latin American Coal - Colombia
- Sarangani Energy Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Jindal Steel & Power Ltd - India
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- Tamil Nadu electricity Board
- Simpson Spence & Young - Indonesia
- GVK Power & Infra Limited - India
- Indian Oil Corporation Limited
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Therma Luzon, Inc, Philippines
- Posco Energy - South Korea
- SMC Global Power, Philippines
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- GN Power Mariveles Coal Plant, Philippines
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Ambuja Cements Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- Standard Chartered Bank - UAE
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Vedanta Resources Plc - India
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- Edison Trading Spa - Italy
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- TeaM Sual Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Singapore Mercantile Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Mjunction Services Limited - India
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Metalloyd Limited - United Kingdom
- Bhatia International Limited - India
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Gujarat Sidhee Cement - India
- Global Green Power PLC Corporation, Philippines
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bangladesh Power Developement Board
- The University of Queensland
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Toyota Tsusho Corporation, Japan
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- South Luzon Thermal Energy Corporation
- Cement Manufacturers Association - India
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Madhucon Powers Ltd - India
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
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