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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, 06 June 12
INDONESIAN GOVERNMENT'S DECLARED COAL PRICES CONTINUING ITS DECLINE
COALspot.com - Indonesian HBA fell to lowest level since January 2011 in June 2012. The monthly coal reference price for coal sales this month ...
Monday, 04 June 12
MITRABAHTERA SUBSIDIARY SECURES CONTRACT FROM BERAU COAL - INSIDER STORIES
Insider Stories reported that, PT Mitra Alam Segara Sejati, a subsidiary that is 60% owned by PT Mitrabahtera Segara Sejati Tbk (MBSS), has secur ...
Sunday, 03 June 12
TTI ESTABLISHES COAL TRADING & MARKETING OFFICE
COALspot.com - TTI has officially established its coal trading, marketing-office in Jakarta, Indonesia. PT. Gunung Tinggi Coal is the TTI’s fi ...
Sunday, 03 June 12
FREIGHT MARKET CONTINUING ITS DECLINE
COALspot.com - The BDI continued to fall for the fifth straight week and the BDI fell by 2.57 pct this week closing at 904 points.
The Cape Size ...
Friday, 01 June 12
TNPL HAS SECURED 300K MT OF 6000 GAD COAL AT US$ 81 CNF TUTICORIN
COALspot.com - An India based coal trader Adani has offered the lowest price of US$ 81.00 per metric ton for calorific value of 6000 GAD and 15 perc ...
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- Sojitz Corporation - Japan
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Tamil Nadu electricity Board
- Mjunction Services Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- Coastal Gujarat Power Limited - India
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Aboitiz Power Corporation - Philippines
- Indika Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- GVK Power & Infra Limited - India
- Carbofer General Trading SA - India
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- GN Power Mariveles Coal Plant, Philippines
- Chettinad Cement Corporation Ltd - India
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Power Finance Corporation Ltd., India
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Commodity Traders Exchange
- Madhucon Powers Ltd - India
- Aditya Birla Group - India
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Altura Mining Limited, Indonesia
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- New Zealand Coal & Carbon
- Merrill Lynch Commodities Europe
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- Gujarat Sidhee Cement - India
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- Sree Jayajothi Cements Limited - India
- Pendopo Energi Batubara - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- The University of Queensland
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Ministry of Transport, Egypt
- Bhatia International Limited - India
- Siam City Cement - Thailand
- Cement Manufacturers Association - India
- Iligan Light & Power Inc, Philippines
- Vedanta Resources Plc - India
- Georgia Ports Authority, United States
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Australian Coal Association
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Alfred C Toepfer International GmbH - Germany
- Minerals Council of Australia
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- Latin American Coal - Colombia
- Wood Mackenzie - Singapore
- Kaltim Prima Coal - Indonesia
- Electricity Authority, New Zealand
- SMG Consultants - Indonesia
- Borneo Indobara - Indonesia
- Manunggal Multi Energi - Indonesia
- Oldendorff Carriers - Singapore
- Antam Resourcindo - Indonesia
- Timah Investasi Mineral - Indoneisa
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Kepco SPC Power Corporation, Philippines
- CNBM International Corporation - China
- Planning Commission, India
- Posco Energy - South Korea
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Heidelberg Cement - Germany
- London Commodity Brokers - England
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Metalloyd Limited - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- ASAPP Information Group - India
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Parliament of New Zealand
- Directorate Of Revenue Intelligence - India
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- Semirara Mining Corp, Philippines
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- India Bulls Power Limited - India
- PTC India Limited - India
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Bharathi Cement Corporation - India
- The State Trading Corporation of India Ltd
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Ceylon Electricity Board - Sri Lanka
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- Independent Power Producers Association of India
- Medco Energi Mining Internasional
- Central Electricity Authority - India
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- PetroVietnam Power Coal Import and Supply Company
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Global Coal Blending Company Limited - Australia
- Karaikal Port Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bukit Makmur.PT - Indonesia
- Tata Chemicals Ltd - India
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- Dalmia Cement Bharat India
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- McConnell Dowell - Australia
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
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