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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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Thursday, 26 April 12
PANAMAXES AGAIN EARN MORE THAN CAPESIZES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The latest surge of demand for Panamaxes has led the dry bulk market to new higher ground on Monday, with the Baltic Dry Index (BDI) reaching 1,090 ...
Wednesday, 25 April 12
CHINA IMPORTS 9.76 MMT AND INDIA IMPORTS 7.03 MMT OF INDONESIAN COAL LAST MONTH
COALspot.com: Indonesia, the world largest coal exporter, shipped 30.64* million tons of coal in March 2012, compared to 27.12* million tons i ...
Monday, 23 April 12
ALTURA ENTERS INTO AGREEMENT TO ACQUIRE 2 COAL PROJECTS IN SOUTH KALIMANTAN
COALspot.com - Altura Mining Limited (ASX: AJM) has announced that it has entered into an agreement to acquire a further two (2) Mining Permits (IUP ...
Sunday, 22 April 12
THE FREIGHT MARKET EXPECTED TO REMAIN FIRM NEXT WEEK - VISTAAR
COALspot.com - The BDI has broken the psychological barrier of 1000 points and closed at 1067 points.
The cape index was slightly down by 2.48 pc ...
Saturday, 21 April 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS DROP 2.61 PERCENT THIS WEEK
COALspot.com - Indonesian sub-bituminous coal swaps fell for a fifth day, according to DSP of SGX AsiaClear OTC Coal Swaps.
CFR South China Coal ...
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- Sinarmas Energy and Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Uttam Galva Steels Limited - India
- Rio Tinto Coal - Australia
- MS Steel International - UAE
- Jaiprakash Power Ventures ltd
- Dalmia Cement Bharat India
- Indika Energy - Indonesia
- Africa Commodities Group - South Africa
- Sree Jayajothi Cements Limited - India
- Planning Commission, India
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Siam City Cement - Thailand
- The University of Queensland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sakthi Sugars Limited - India
- Thai Mozambique Logistica
- Minerals Council of Australia
- Wilmar Investment Holdings
- Indogreen Group - Indonesia
- White Energy Company Limited
- Bharathi Cement Corporation - India
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Semirara Mining Corp, Philippines
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Jindal Steel & Power Ltd - India
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Coalindo Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Ambuja Cements Ltd - India
- Madhucon Powers Ltd - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Coal and Oil Company - UAE
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- TNB Fuel Sdn Bhd - Malaysia
- Thiess Contractors Indonesia
- Alfred C Toepfer International GmbH - Germany
- Xindia Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Trasteel International SA, Italy
- SN Aboitiz Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- IEA Clean Coal Centre - UK
- Lanco Infratech Ltd - India
- LBH Netherlands Bv - Netherlands
- Standard Chartered Bank - UAE
- Formosa Plastics Group - Taiwan
- Malabar Cements Ltd - India
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Makarim & Taira - Indonesia
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Port Waratah Coal Services - Australia
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- CIMB Investment Bank - Malaysia
- Kepco SPC Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- Intertek Mineral Services - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Bhoruka Overseas - Indonesia
- Savvy Resources Ltd - HongKong
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- Globalindo Alam Lestari - Indonesia
- Ind-Barath Power Infra Limited - India
- ASAPP Information Group - India
- London Commodity Brokers - England
- Kaltim Prima Coal - Indonesia
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Maheswari Brothers Coal Limited - India
- Asmin Koalindo Tuhup - Indonesia
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- Parliament of New Zealand
- TeaM Sual Corporation - Philippines
- OPG Power Generation Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Mercuria Energy - Indonesia
- Metalloyd Limited - United Kingdom
- VISA Power Limited - India
- Eastern Energy - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Baramulti Group, Indonesia
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- Therma Luzon, Inc, Philippines
- Anglo American - United Kingdom
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Vedanta Resources Plc - India
- Energy Development Corp, Philippines
- Electricity Authority, New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- Iligan Light & Power Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Kobexindo Tractors - Indoneisa
- PowerSource Philippines DevCo
- Heidelberg Cement - Germany
- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Borneo Indobara - Indonesia
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Marubeni Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Eastern Coal Council - USA
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Edison Trading Spa - Italy
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- Coastal Gujarat Power Limited - India
- GVK Power & Infra Limited - India
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- Semirara Mining and Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- Grasim Industreis Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petron Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Business Power Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- Economic Council, Georgia
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Siam City Cement PLC, Thailand
- Banpu Public Company Limited - Thailand
- New Zealand Coal & Carbon
- Billiton Holdings Pty Ltd - Australia
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