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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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Monday, 28 May 12
COAL EXPORTS ARE JUMPING HIGHER, BUT PRICES ARE FALLING LOWER
COALspot.com: Indonesia, the world largest coal exporter, shipped 31.86* million tons of coal in April 2012, compared to 30.64* million tons i ...
Sunday, 27 May 12
THE FREIGHT MARKET FROM INDONESIA TO INDIA WAS WEAK - VISTAAR
COALspot.com - The BDI continued to fall for the fourth straight week and the BDI fell by 9.38 pct this week closing at 1,034 points.
The Cape Si ...
Sunday, 27 May 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS HEADING TO SOUTH DIRECTION
COALspot.com - Indonesian sub-bituminous coal swaps and CFR South China coal contracts for July deliveries have dropped this week by 5.43 percent an ...
Saturday, 26 May 12
DRY BULK SHIP OWNERS LOOKING TO CUT BACK ON TONNAGE SUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The oversupply of dry bulk carriers has been the most prominent problem in the market today, pushing down rates and ‘strangling’ profita ...
Thursday, 24 May 12
DRY BULK MARKET RETREATS ON LACK OF CHINA DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market retreated yesterday on the back of lower Chinese demand for commodities such as coal and iron ore, typically hauled by dry bulk ...
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Showing 4716 to 4720 news of total 6871 |
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- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- Minerals Council of Australia
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Rio Tinto Coal - Australia
- Anglo American - United Kingdom
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Port Waratah Coal Services - Australia
- Metalloyd Limited - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- Indika Energy - Indonesia
- Electricity Generating Authority of Thailand
- Bhatia International Limited - India
- Karbindo Abesyapradhi - Indoneisa
- SMC Global Power, Philippines
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- Grasim Industreis Ltd - India
- Samtan Co., Ltd - South Korea
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Bhushan Steel Limited - India
- Global Business Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- Mercator Lines Limited - India
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- Australian Coal Association
- Bahari Cakrawala Sebuku - Indonesia
- MS Steel International - UAE
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Bukit Makmur.PT - Indonesia
- PTC India Limited - India
- Medco Energi Mining Internasional
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- VISA Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Petron Corporation, Philippines
- Edison Trading Spa - Italy
- Krishnapatnam Port Company Ltd. - India
- Antam Resourcindo - Indonesia
- Siam City Cement PLC, Thailand
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Banpu Public Company Limited - Thailand
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- International Coal Ventures Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Finance - Indonesia
- ICICI Bank Limited - India
- Aboitiz Power Corporation - Philippines
- Marubeni Corporation - India
- Chettinad Cement Corporation Ltd - India
- Makarim & Taira - Indonesia
- Power Finance Corporation Ltd., India
- Bukit Asam (Persero) Tbk - Indonesia
- Commonwealth Bank - Australia
- Energy Development Corp, Philippines
- Goldman Sachs - Singapore
- Formosa Plastics Group - Taiwan
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Jindal Steel & Power Ltd - India
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Tata Chemicals Ltd - India
- Aditya Birla Group - India
- Therma Luzon, Inc, Philippines
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Indian Oil Corporation Limited
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Mintek Dendrill Indonesia
- OPG Power Generation Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Merrill Lynch Commodities Europe
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- IEA Clean Coal Centre - UK
- Kalimantan Lumbung Energi - Indonesia
- Chamber of Mines of South Africa
- Ind-Barath Power Infra Limited - India
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Siam City Cement - Thailand
- Holcim Trading Pte Ltd - Singapore
- Thai Mozambique Logistica
- Interocean Group of Companies - India
- Bharathi Cement Corporation - India
- CNBM International Corporation - China
- Planning Commission, India
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Kumho Petrochemical, South Korea
- IHS Mccloskey Coal Group - USA
- Indian Energy Exchange, India
- Bukit Baiduri Energy - Indonesia
- Electricity Authority, New Zealand
- Central Electricity Authority - India
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Pendopo Energi Batubara - Indonesia
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- London Commodity Brokers - England
- Indonesian Coal Mining Association
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Sical Logistics Limited - India
- Simpson Spence & Young - Indonesia
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- ASAPP Information Group - India
- Intertek Mineral Services - Indonesia
- Attock Cement Pakistan Limited
- Star Paper Mills Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- TeaM Sual Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Tamil Nadu electricity Board
- Coal and Oil Company - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Parliament of New Zealand
- Energy Link Ltd, New Zealand
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- PowerSource Philippines DevCo
- Uttam Galva Steels Limited - India
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Romanian Commodities Exchange
- Sarangani Energy Corporation, Philippines
- New Zealand Coal & Carbon
- Bulk Trading Sa - Switzerland
- Cement Manufacturers Association - India
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- Maheswari Brothers Coal Limited - India
- Bayan Resources Tbk. - Indonesia
- Eastern Energy - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Oldendorff Carriers - Singapore
- Ministry of Mines - Canada
- Ceylon Electricity Board - Sri Lanka
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- Orica Australia Pty. Ltd.
- Bhoruka Overseas - Indonesia
- Jaiprakash Power Ventures ltd
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Global Coal Blending Company Limited - Australia
- Barasentosa Lestari - Indonesia
- Latin American Coal - Colombia
- SN Aboitiz Power Inc, Philippines
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
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