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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, 22 May 12
NEW ONE-YEAR TIME CHARTERS FOR TWO VESSELS OF EXCEL MARITIME CARRIERS LTD.
Excel Maritime Carriers Ltd. (NYSE: EXM), an owner and operator of dry bulk carriers and an international provider of worldwide seaborne transportat ...
Tuesday, 22 May 12
DRY BULK MARKET STEADY, AWAITING FURTHER RISE IN DEMAND WHICH IS DOUBTFUL - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Traditionally, the second and third quarters of the year are the strongest for the dry bulk market, but this year, things seem to be quite subdued, ...
Sunday, 20 May 12
SPOT FREIGHT RATE DIPS FURTHER - VISTAAR
COALspot.com - The BDI was marginally up by 3 points (0.26 pct) closing at 1,141 points.
The cape index was up by 1.17 pct closing at 1,633 point ...
Saturday, 19 May 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS DROP US$ 2.88 PMT W-O-W
COALspot.com - Indonesian sub-bituminous coal swaps and CFR South China coal contracts for June deliveries have drops this week by 3.86 percent and& ...
Saturday, 19 May 12
INDONESIAN EXPORT TAX GIVES COAL MINERS A CHEAP RIDE: ANALYSTS - THE JAKARTA GLOBE
The Jakarta Globe reported that, Indonesia’s policy to exclude coal from an export tax that has been applied to 14 other mineral commodities h ...
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- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Jorong Barutama Greston.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- Iligan Light & Power Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bhoruka Overseas - Indonesia
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- Power Finance Corporation Ltd., India
- Borneo Indobara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Electricity Authority, New Zealand
- International Coal Ventures Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Thiess Contractors Indonesia
- Miang Besar Coal Terminal - Indonesia
- Edison Trading Spa - Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- The University of Queensland
- Timah Investasi Mineral - Indoneisa
- Meenaskhi Energy Private Limited - India
- Semirara Mining and Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Rashtriya Ispat Nigam Limited - India
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- South Luzon Thermal Energy Corporation
- Kepco SPC Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Makarim & Taira - Indonesia
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- Mjunction Services Limited - India
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Coal and Oil Company - UAE
- Kobexindo Tractors - Indoneisa
- Central Java Power - Indonesia
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- ICICI Bank Limited - India
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- Deloitte Consulting - India
- Bharathi Cement Corporation - India
- Cement Manufacturers Association - India
- Formosa Plastics Group - Taiwan
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Indian Oil Corporation Limited
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Krishnapatnam Port Company Ltd. - India
- Xindia Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Tata Chemicals Ltd - India
- Banpu Public Company Limited - Thailand
- Chettinad Cement Corporation Ltd - India
- Riau Bara Harum - Indonesia
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- Rio Tinto Coal - Australia
- Ministry of Mines - Canada
- Kapuas Tunggal Persada - Indonesia
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- London Commodity Brokers - England
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Petron Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- PTC India Limited - India
- Vedanta Resources Plc - India
- Port Waratah Coal Services - Australia
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- VISA Power Limited - India
- Bhatia International Limited - India
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- Metalloyd Limited - United Kingdom
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Romanian Commodities Exchange
- Central Electricity Authority - India
- Renaissance Capital - South Africa
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- Baramulti Group, Indonesia
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Sinarmas Energy and Mining - Indonesia
- Altura Mining Limited, Indonesia
- Star Paper Mills Limited - India
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- AsiaOL BioFuels Corp., Philippines
- The State Trading Corporation of India Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Kideco Jaya Agung - Indonesia
- Dalmia Cement Bharat India
- Anglo American - United Kingdom
- Therma Luzon, Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Australian Coal Association
- Standard Chartered Bank - UAE
- Siam City Cement PLC, Thailand
- Ministry of Finance - Indonesia
- Georgia Ports Authority, United States
- GAC Shipping (India) Pvt Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Bukit Makmur.PT - Indonesia
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- OPG Power Generation Pvt Ltd - India
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