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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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- Parry Sugars Refinery, India
- Malabar Cements Ltd - India
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Sakthi Sugars Limited - India
- Aboitiz Power Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Orica Australia Pty. Ltd.
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kideco Jaya Agung - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- Siam City Cement PLC, Thailand
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Deloitte Consulting - India
- Bayan Resources Tbk. - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GVK Power & Infra Limited - India
- Mercator Lines Limited - India
- Jindal Steel & Power Ltd - India
- Kobexindo Tractors - Indoneisa
- Madhucon Powers Ltd - India
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Coal and Oil Company - UAE
- Rio Tinto Coal - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Meralco Power Generation, Philippines
- Antam Resourcindo - Indonesia
- Central Electricity Authority - India
- Kepco SPC Power Corporation, Philippines
- New Zealand Coal & Carbon
- Globalindo Alam Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Electricity Authority, New Zealand
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- Therma Luzon, Inc, Philippines
- Ministry of Finance - Indonesia
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Agrawal Coal Company - India
- PowerSource Philippines DevCo
- Directorate General of MIneral and Coal - Indonesia
- Xindia Steels Limited - India
- Essar Steel Hazira Ltd - India
- Salva Resources Pvt Ltd - India
- Tamil Nadu electricity Board
- Kalimantan Lumbung Energi - Indonesia
- Bhatia International Limited - India
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Parliament of New Zealand
- Orica Mining Services - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vedanta Resources Plc - India
- Central Java Power - Indonesia
- Jaiprakash Power Ventures ltd
- Thai Mozambique Logistica
- Global Coal Blending Company Limited - Australia
- London Commodity Brokers - England
- PetroVietnam Power Coal Import and Supply Company
- Wilmar Investment Holdings
- Holcim Trading Pte Ltd - Singapore
- Timah Investasi Mineral - Indoneisa
- Posco Energy - South Korea
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- The Treasury - Australian Government
- Altura Mining Limited, Indonesia
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- Grasim Industreis Ltd - India
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Bhushan Steel Limited - India
- Kumho Petrochemical, South Korea
- IEA Clean Coal Centre - UK
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Metalloyd Limited - United Kingdom
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Bukit Makmur.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
- Australian Commodity Traders Exchange
- Global Business Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Dalmia Cement Bharat India
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- Gujarat Sidhee Cement - India
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indonesian Coal Mining Association
- Siam City Cement - Thailand
- Thiess Contractors Indonesia
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- The University of Queensland
- International Coal Ventures Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Meenaskhi Energy Private Limited - India
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- GAC Shipping (India) Pvt Ltd
- Maheswari Brothers Coal Limited - India
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- Commonwealth Bank - Australia
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- LBH Netherlands Bv - Netherlands
- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Economic Council, Georgia
- Asmin Koalindo Tuhup - Indonesia
- Standard Chartered Bank - UAE
- GMR Energy Limited - India
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Carbofer General Trading SA - India
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Aditya Birla Group - India
- Intertek Mineral Services - Indonesia
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