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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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Friday, 18 May 12
EXPORT TAX WILL ERODE PROFITS, INDONESIAN COAL EXEC COMPLAINS - THE JAKARTA GLOBE
The Jakarta Globe reported that, A 20 percent export duty the government has imposed on 14 mineral ore products will not only take a toll on mining ...
Friday, 18 May 12
KOREA EAST WEST POWER LOOKING FOR TOTAL 2.6 MILLION TONS OF 4600 NAR COAL AT FIXED PRICE FOR 5 YEARS
COALspot.com - Korea East West Power Co., Ltd is inviting bids to supply of 520,000 Metric Tons (per annum) of minimum 4,600 kcal/kg coal of N ...
Friday, 18 May 12
NICKEL ORE CARGOES ARE NOT SEEN IN MARKET ANYMORE DUE TO ON-GOING INDONESIAN BAN - FEARNLEYS AS
Handy
The market remained variable.
Fronthaul voyages both from Baltic and Black Sea paid over USD 18k/day. From USG to Cont tonnage would get ...
Thursday, 17 May 12
COAL MINERS OPPOSE EXPORT TAX, SUGGEST OUTPUT QUOTA - THE JAKARTA POST
The Jakarta Post reported that, coal miners have suggested that the government apply a production quota instead of implementing an export tax in ord ...
Thursday, 17 May 12
DRY BULK MARKET STILL LOOKING FOR NEW DIRECTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept on moving sideways during this week, with the mixed performance across all segments. Yesterday, the industry’s be ...
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Showing 4726 to 4730 news of total 6871 |
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- Price Waterhouse Coopers - Russia
- IEA Clean Coal Centre - UK
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Antam Resourcindo - Indonesia
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Riau Bara Harum - Indonesia
- The University of Queensland
- Bayan Resources Tbk. - Indonesia
- Australian Coal Association
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Global Coal Blending Company Limited - Australia
- Minerals Council of Australia
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement PLC, Thailand
- Sojitz Corporation - Japan
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Bhatia International Limited - India
- VISA Power Limited - India
- Bhushan Steel Limited - India
- Heidelberg Cement - Germany
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- New Zealand Coal & Carbon
- Orica Australia Pty. Ltd.
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Kideco Jaya Agung - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Edison Trading Spa - Italy
- Semirara Mining and Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- The State Trading Corporation of India Ltd
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- Madhucon Powers Ltd - India
- Global Green Power PLC Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- San Jose City I Power Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Savvy Resources Ltd - HongKong
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- Kaltim Prima Coal - Indonesia
- Bhoruka Overseas - Indonesia
- Therma Luzon, Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- Parliament of New Zealand
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Toyota Tsusho Corporation, Japan
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- OPG Power Generation Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Star Paper Mills Limited - India
- CNBM International Corporation - China
- Thai Mozambique Logistica
- PowerSource Philippines DevCo
- Salva Resources Pvt Ltd - India
- Tamil Nadu electricity Board
- Lanco Infratech Ltd - India
- Aditya Birla Group - India
- Iligan Light & Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Formosa Plastics Group - Taiwan
- International Coal Ventures Pvt Ltd - India
- Indika Energy - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Port Waratah Coal Services - Australia
- Gujarat Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Indonesian Coal Mining Association
- Miang Besar Coal Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Dalmia Cement Bharat India
- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- CIMB Investment Bank - Malaysia
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Planning Commission, India
- Oldendorff Carriers - Singapore
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Jindal Steel & Power Ltd - India
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- Xindia Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- London Commodity Brokers - England
- Videocon Industries ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Cement Manufacturers Association - India
- Indogreen Group - Indonesia
- Central Electricity Authority - India
- Ambuja Cements Ltd - India
- McConnell Dowell - Australia
- Makarim & Taira - Indonesia
- Uttam Galva Steels Limited - India
- Global Business Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Kumho Petrochemical, South Korea
- ASAPP Information Group - India
- Posco Energy - South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Chettinad Cement Corporation Ltd - India
- Singapore Mercantile Exchange
- Neyveli Lignite Corporation Ltd, - India
- Petron Corporation, Philippines
- Ministry of Finance - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Siam City Cement - Thailand
- Alfred C Toepfer International GmbH - Germany
- PetroVietnam Power Coal Import and Supply Company
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Directorate Of Revenue Intelligence - India
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Maheswari Brothers Coal Limited - India
- Commonwealth Bank - Australia
- Africa Commodities Group - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Australian Commodity Traders Exchange
- Anglo American - United Kingdom
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Romanian Commodities Exchange
- Marubeni Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Latin American Coal - Colombia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Straits Asia Resources Limited - Singapore
- Kobexindo Tractors - Indoneisa
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