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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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Wednesday, 18 April 12
INDONESIA TO INTRODUCE EXPORT DUTY ON MINERAL ORES BY 6 MAY 2012
The Indonesian government is scheduled to issue regulation on export duty for minerals before May 6, 2012.
According to Bisnis Indonesia, as quot ...
Sunday, 15 April 12
THE SPOT FIXTURE RATES FOR SUPRAMAX IN SE ASIA SAW SOME SOFTENING OF CHARTER RATES - VISTAAR
COALspot.com - The market seem to be holding and except for Supramax and handy size index all other index was up with BDI up by 4.74 pct closing at ...
Friday, 13 April 12
MINERS OPPOSE GOVTS EXPORT TAX PLAN - THE JAKARTA POST
The Jakarta Post reported that, Indonesian mining companies have strongly protested the government’s plan to impose a 25 percent export tax on ...
Friday, 13 April 12
S&P CAUTIONS AGAINST NEW INDONESIAN MINING REGULATIONS - THE JAKARTA GLOBE
The Jakarta Globe reported that, Investors may have expressed concerns about looming new mining regulations, but ratings agency Standard & Poor& ...
Thursday, 12 April 12
FIRST QUARTER OF 2012 SAW AN ADDITIONAL 24.2 MILLION DWT OF DRY BULK CARRIERS ENTERING THE FLEET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The inflow of newbuilt dry bulk vessels was larger than expected in the first quarter of 2012. As much as 24.2 million DWT were added to the fleet. ...
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- Maharashtra Electricity Regulatory Commission - India
- Indo Tambangraya Megah - Indonesia
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- Karbindo Abesyapradhi - Indoneisa
- Standard Chartered Bank - UAE
- AsiaOL BioFuels Corp., Philippines
- Thai Mozambique Logistica
- Central Electricity Authority - India
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- MS Steel International - UAE
- Ministry of Finance - Indonesia
- Sojitz Corporation - Japan
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Petron Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Global Business Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Merrill Lynch Commodities Europe
- New Zealand Coal & Carbon
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- Interocean Group of Companies - India
- Alfred C Toepfer International GmbH - Germany
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Posco Energy - South Korea
- Vedanta Resources Plc - India
- Leighton Contractors Pty Ltd - Australia
- Kepco SPC Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Indian Oil Corporation Limited
- Orica Australia Pty. Ltd.
- Bulk Trading Sa - Switzerland
- Ministry of Mines - Canada
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- Grasim Industreis Ltd - India
- Chettinad Cement Corporation Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Sinarmas Energy and Mining - Indonesia
- Renaissance Capital - South Africa
- IEA Clean Coal Centre - UK
- Wood Mackenzie - Singapore
- Directorate Of Revenue Intelligence - India
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- GMR Energy Limited - India
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Chamber of Mines of South Africa
- Neyveli Lignite Corporation Ltd, - India
- Binh Thuan Hamico - Vietnam
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- Siam City Cement PLC, Thailand
- Pendopo Energi Batubara - Indonesia
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Antam Resourcindo - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Central Java Power - Indonesia
- Karaikal Port Pvt Ltd - India
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Bayan Resources Tbk. - Indonesia
- Aboitiz Power Corporation - Philippines
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Videocon Industries ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Economic Council, Georgia
- Energy Link Ltd, New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Planning Commission, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Barasentosa Lestari - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bhoruka Overseas - Indonesia
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Bukit Baiduri Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The State Trading Corporation of India Ltd
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Therma Luzon, Inc, Philippines
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- India Bulls Power Limited - India
- Gujarat Sidhee Cement - India
- Parliament of New Zealand
- Coastal Gujarat Power Limited - India
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- Bharathi Cement Corporation - India
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Bhushan Steel Limited - India
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Port Waratah Coal Services - Australia
- Mercator Lines Limited - India
- Goldman Sachs - Singapore
- Kaltim Prima Coal - Indonesia
- Bhatia International Limited - India
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- TeaM Sual Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Mjunction Services Limited - India
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Intertek Mineral Services - Indonesia
- SMG Consultants - Indonesia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- Riau Bara Harum - Indonesia
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- Coal and Oil Company - UAE
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- Coalindo Energy - Indonesia
- Semirara Mining Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Deloitte Consulting - India
- VISA Power Limited - India
- Simpson Spence & Young - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Star Paper Mills Limited - India
- Price Waterhouse Coopers - Russia
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Africa Commodities Group - South Africa
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