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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, 29 March 12
DRY BULK EDGED FURTHER UP, ON HEALTHY DEMAND FOR MOST SHIP TYPES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With capesize vessels finally reappearing in demand, the dry bulk market had an easier task of rising yesterday, as the BDI (Baltic Dry Index) reach ...
Thursday, 29 March 12
ADARO FY11 NET INCOME JUMPS 124% - INSIDER STORIES
Insider Stories reported that, PT Adaro Energy Tbk (ADRO) today announced a 124% jump in net income to US$552 million last year or US$0.017 a share. ...
Wednesday, 28 March 12
CUESTA HAS RECEIVED APPLICATIONS AND FIRM BIDS IN EXCESS OF $9 MILLION FOR THE COMPANYS IPO
COALspot.com - The Directors of Cuesta Coal Limited (ASX:CQC) have announced that today it has received applications and firm bids in excess of $9 m ...
Wednesday, 28 March 12
ORPHEUS ENERGY TO COMMENCE JORC DRILLING AT ADK PROJECT
COALspot.com - Indonesian coal explorer and producer, Orpheus Energy (ASX:OEG), have today announced that the company is about to commence a drillin ...
Tuesday, 27 March 12
DRY BULK MARKET KEEP RISING FOLLOWING THE SAME TREND OF LAST WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept its upward momentum this week, on the same reasons of those last week. That is, the smaller ship types are still on the ris ...
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Showing 4786 to 4790 news of total 6871 |
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- Miang Besar Coal Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Minerals Council of Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Posco Energy - South Korea
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Bhatia International Limited - India
- Attock Cement Pakistan Limited
- Star Paper Mills Limited - India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Sarangani Energy Corporation, Philippines
- Central Electricity Authority - India
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- PowerSource Philippines DevCo
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Indika Energy - Indonesia
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- International Coal Ventures Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- Vedanta Resources Plc - India
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- Parliament of New Zealand
- Cement Manufacturers Association - India
- Australian Coal Association
- Kaltim Prima Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Uttam Galva Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Siam City Cement PLC, Thailand
- Samtan Co., Ltd - South Korea
- Marubeni Corporation - India
- TeaM Sual Corporation - Philippines
- Mercuria Energy - Indonesia
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- Lanco Infratech Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- Xindia Steels Limited - India
- Bhoruka Overseas - Indonesia
- Petron Corporation, Philippines
- Videocon Industries ltd - India
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- SMG Consultants - Indonesia
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Georgia Ports Authority, United States
- Commonwealth Bank - Australia
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Sical Logistics Limited - India
- Renaissance Capital - South Africa
- Jindal Steel & Power Ltd - India
- Kumho Petrochemical, South Korea
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Sinarmas Energy and Mining - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Heidelberg Cement - Germany
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- Oldendorff Carriers - Singapore
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Neyveli Lignite Corporation Ltd, - India
- Thiess Contractors Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- The Treasury - Australian Government
- Energy Link Ltd, New Zealand
- Power Finance Corporation Ltd., India
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Romanian Commodities Exchange
- LBH Netherlands Bv - Netherlands
- GMR Energy Limited - India
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Aditya Birla Group - India
- Ind-Barath Power Infra Limited - India
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Ministry of Finance - Indonesia
- Maheswari Brothers Coal Limited - India
- Globalindo Alam Lestari - Indonesia
- Coalindo Energy - Indonesia
- ASAPP Information Group - India
- The State Trading Corporation of India Ltd
- Sindya Power Generating Company Private Ltd
- GN Power Mariveles Coal Plant, Philippines
- Ceylon Electricity Board - Sri Lanka
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Parry Sugars Refinery, India
- Carbofer General Trading SA - India
- Dalmia Cement Bharat India
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- Cigading International Bulk Terminal - Indonesia
- White Energy Company Limited
- VISA Power Limited - India
- PTC India Limited - India
- Makarim & Taira - Indonesia
- Directorate Of Revenue Intelligence - India
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Edison Trading Spa - Italy
- Bukit Baiduri Energy - Indonesia
- Indian Oil Corporation Limited
- Borneo Indobara - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Mjunction Services Limited - India
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Coal Council - USA
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- GVK Power & Infra Limited - India
- OPG Power Generation Pvt Ltd - India
- Agrawal Coal Company - India
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Asmin Koalindo Tuhup - Indonesia
- SN Aboitiz Power Inc, Philippines
- McConnell Dowell - Australia
- Bayan Resources Tbk. - Indonesia
- Mintek Dendrill Indonesia
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Savvy Resources Ltd - HongKong
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- MS Steel International - UAE
- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- Interocean Group of Companies - India
- Malabar Cements Ltd - India
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- Baramulti Group, Indonesia
- Straits Asia Resources Limited - Singapore
- Sakthi Sugars Limited - India
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