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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, 20 April 12
PANAMAXES LEAD DRY BULK MARKET TO HIGHER GROUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A rebound of demand for smaller dry bulk carriers has led the industry’s benchmark, the BDI (Baltic Dry Index) above the 1,000-point mark for ...
Friday, 20 April 12
BUMA HAS PRODUCED 2.6 MILLION TONS OF COAL IN MARCH 2012
COALspot.com - BUMA has removed 28.0 million bcm (+6.4% YoY) of overburden in March 2012 while coal production was at 2.6 million tons (+1.3% YoY).
...
Thursday, 19 April 12
FRESH COAL SALES FROM JATENERGYS JONGKANG MINES
COALspot.com - Energy company Jatenergy Ltd (ASX code JAT) announced today that it had signed a contract for an 11,000 tonne coal sale due for shipm ...
Thursday, 19 April 12
HANDY - 'POSITIVE TREND', PANAMAX - 'A FIRMER TENDENCY', CAPESIZE - 'AGAIN NEGATIVE'
Handy
The positive trend from last week continued, with more cargoes entering the market. Skaw/Passero del fixed tick above USD 4000 for US Gulf di ...
Thursday, 19 April 12
WILLIS MARINE MARKET REVIEW FORECASTS ANOTHER DIFFICULT YEAR - WILLIS GLOBAL MARINE / HELLENIC SHIPPING
After an inauspicious start, 2012 could well be "another difficult and uncertain year for the maritime industry faced with the aftermath of the ...
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- Indian Energy Exchange, India
- Thai Mozambique Logistica
- PNOC Exploration Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Agrawal Coal Company - India
- Bhoruka Overseas - Indonesia
- Interocean Group of Companies - India
- Riau Bara Harum - Indonesia
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- Coalindo Energy - Indonesia
- TeaM Sual Corporation - Philippines
- ICICI Bank Limited - India
- Rio Tinto Coal - Australia
- Vizag Seaport Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- New Zealand Coal & Carbon
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- White Energy Company Limited
- Maharashtra Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Minerals Council of Australia
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Baiduri Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Indian Oil Corporation Limited
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Electricity Authority, New Zealand
- Australian Coal Association
- Indonesian Coal Mining Association
- Baramulti Group, Indonesia
- Savvy Resources Ltd - HongKong
- Marubeni Corporation - India
- Ministry of Transport, Egypt
- Planning Commission, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- PetroVietnam Power Coal Import and Supply Company
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Sree Jayajothi Cements Limited - India
- VISA Power Limited - India
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Bharathi Cement Corporation - India
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Indogreen Group - Indonesia
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Semirara Mining Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Bayan Resources Tbk. - Indonesia
- Binh Thuan Hamico - Vietnam
- Dalmia Cement Bharat India
- Parliament of New Zealand
- Intertek Mineral Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Orica Mining Services - Indonesia
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Goldman Sachs - Singapore
- PTC India Limited - India
- Energy Development Corp, Philippines
- Siam City Cement PLC, Thailand
- Africa Commodities Group - South Africa
- Aditya Birla Group - India
- Indika Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Independent Power Producers Association of India
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- Banpu Public Company Limited - Thailand
- Standard Chartered Bank - UAE
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Mintek Dendrill Indonesia
- Ambuja Cements Ltd - India
- Bhatia International Limited - India
- Kobexindo Tractors - Indoneisa
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- The University of Queensland
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- Essar Steel Hazira Ltd - India
- Sakthi Sugars Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- McConnell Dowell - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Renaissance Capital - South Africa
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Attock Cement Pakistan Limited
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Simpson Spence & Young - Indonesia
- Chettinad Cement Corporation Ltd - India
- Manunggal Multi Energi - Indonesia
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- The Treasury - Australian Government
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Rashtriya Ispat Nigam Limited - India
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Alfred C Toepfer International GmbH - Germany
- Vedanta Resources Plc - India
- San Jose City I Power Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Ministry of Finance - Indonesia
- Bangladesh Power Developement Board
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Jindal Steel & Power Ltd - India
- Georgia Ports Authority, United States
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Sical Logistics Limited - India
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