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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, 05 April 12
COAL EXPORT TAX: MATTER OF CONCERN FOR INDIA - SUNIL K KUMBHAT
COALspot.com - Since the issuance of Indonesian Mining law in 2009, miners have increased their activities in exploring , ex ...
Thursday, 05 April 12
AKR COAL FIRST EXPORT SHIPMENT OF COAL SEABORNE
PT Anugrah Karya Raya (AKR Coal) subsidiary of PT AKR Corporindo Tbk., Indonesia’s leading integrated supply chain solutions provider and larg ...
Thursday, 05 April 12
DRY BULK MARKET STALLS AS TREND IS REVERSED - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has halted its month-long rally, with the BDI (Baltic Dry Index) retreating yesterday for a second consecutive session. Industry ...
Wednesday, 04 April 12
OIL MAY JUMP TO $150PB IF IRAN ATTACKED: EXPERT - KUNA / HELLENIC SHIPPING
Prices of oil will not drop below level of $100 per barrel and may jump to $150 pb in the coming two months, according to the prominent Kuwaiti expe ...
Wednesday, 04 April 12
CHURCHILL MINING TO ACCELERATE INTERNATIONAL ARBITRATION AGAINST INDONESIA
Churchill Mining plc (AIM: CHL), advises that notations on the Indonesian Supreme Court's register of cases shows the Supreme Court has rejected th ...
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- Ceylon Electricity Board - Sri Lanka
- Karbindo Abesyapradhi - Indoneisa
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- IHS Mccloskey Coal Group - USA
- Economic Council, Georgia
- Therma Luzon, Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- VISA Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GVK Power & Infra Limited - India
- Planning Commission, India
- Interocean Group of Companies - India
- Posco Energy - South Korea
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Malabar Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kohat Cement Company Ltd. - Pakistan
- Indogreen Group - Indonesia
- Jindal Steel & Power Ltd - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Central Electricity Authority - India
- Mjunction Services Limited - India
- Rio Tinto Coal - Australia
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Chamber of Mines of South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- International Coal Ventures Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Bharathi Cement Corporation - India
- GAC Shipping (India) Pvt Ltd
- Videocon Industries ltd - India
- Parry Sugars Refinery, India
- Commonwealth Bank - Australia
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Latin American Coal - Colombia
- Petron Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Ambuja Cements Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- The University of Queensland
- Romanian Commodities Exchange
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Globalindo Alam Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- Salva Resources Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Development Corp, Philippines
- PTC India Limited - India
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bukit Baiduri Energy - Indonesia
- Ministry of Mines - Canada
- Riau Bara Harum - Indonesia
- Thai Mozambique Logistica
- Metalloyd Limited - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- Savvy Resources Ltd - HongKong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Meralco Power Generation, Philippines
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- Timah Investasi Mineral - Indoneisa
- OPG Power Generation Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Bhushan Steel Limited - India
- Larsen & Toubro Limited - India
- Directorate Of Revenue Intelligence - India
- ICICI Bank Limited - India
- Marubeni Corporation - India
- TeaM Sual Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Bukit Makmur.PT - Indonesia
- Samtan Co., Ltd - South Korea
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Electricity Authority, New Zealand
- Straits Asia Resources Limited - Singapore
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Krishnapatnam Port Company Ltd. - India
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- Central Java Power - Indonesia
- The State Trading Corporation of India Ltd
- Directorate General of MIneral and Coal - Indonesia
- Trasteel International SA, Italy
- Kumho Petrochemical, South Korea
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Sree Jayajothi Cements Limited - India
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Vedanta Resources Plc - India
- Sindya Power Generating Company Private Ltd
- Indian Oil Corporation Limited
- Deloitte Consulting - India
- Siam City Cement - Thailand
- New Zealand Coal & Carbon
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
- Cement Manufacturers Association - India
- Barasentosa Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- GMR Energy Limited - India
- Singapore Mercantile Exchange
- Ministry of Transport, Egypt
- Aditya Birla Group - India
- Chettinad Cement Corporation Ltd - India
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- AsiaOL BioFuels Corp., Philippines
- Global Business Power Corporation, Philippines
- London Commodity Brokers - England
- Port Waratah Coal Services - Australia
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Orica Mining Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Ministry of Finance - Indonesia
- European Bulk Services B.V. - Netherlands
- Oldendorff Carriers - Singapore
- Medco Energi Mining Internasional
- ASAPP Information Group - India
- Global Green Power PLC Corporation, Philippines
- Mercator Lines Limited - India
- CNBM International Corporation - China
- Global Coal Blending Company Limited - Australia
- Makarim & Taira - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Standard Chartered Bank - UAE
- Kepco SPC Power Corporation, Philippines
- Carbofer General Trading SA - India
- Power Finance Corporation Ltd., India
- Xindia Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- Bayan Resources Tbk. - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bangladesh Power Developement Board
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- South Luzon Thermal Energy Corporation
- Sojitz Corporation - Japan
- Binh Thuan Hamico - Vietnam
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Australian Commodity Traders Exchange
- Tata Chemicals Ltd - India
- Pendopo Energi Batubara - Indonesia
- Australian Coal Association
- Parliament of New Zealand
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