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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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Saturday, 17 March 12
THE FREIGHT RATES FOR INDONESIA TO INDIA REMAINED FIRM - VISTAAR SINGAPORE
COALspot.com - The market continued to be firm and all segments were up except for Cape Index which was down by 2.46 pct closing at 1,466 points.
...
Saturday, 17 March 12
INDIAN GOVT FINALIZES DRAFT BILL FOR COAL REGULATOR - PTI
The coal sector would soon get a regulator as the government has finalised a draft bill for the purpose, Coal Minister Sriprakash Jaiswal said Wedne ...
Friday, 16 March 12
THE PACIFIC MARKET IS FIRMING UP - FEARNLEYS AS
Handy
A slightly positive trend was seen last week in the Atlantic. Skaw-Passero deliveries fixed around USD 3k to US Gulf, while US Gulf deliveres ...
Thursday, 15 March 12
RAINS AVERAGE SELLING PRICE OF COAL WENT UP BY 22 % IN 2011
COALspot.com - PT. Resource Alam Indonesia Tbk, an Indonesian CCoW (3rd Generation) holder reported Wednesday a 171 percent increase in net profits ...
Thursday, 15 March 12
RESOURCE ALAM FY11 PROFIT UP 171% - INSIDER STORIES
Insider Stories reported that, coal mining company PT Resource Alam Indonesia Tbk (KKGI) reported a 171.16% jump in net profit last year on the back ...
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- Indo Tambangraya Megah - Indonesia
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Coastal Gujarat Power Limited - India
- Agrawal Coal Company - India
- Indogreen Group - Indonesia
- Kepco SPC Power Corporation, Philippines
- Lanco Infratech Ltd - India
- IEA Clean Coal Centre - UK
- Eastern Coal Council - USA
- The State Trading Corporation of India Ltd
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Economic Council, Georgia
- Star Paper Mills Limited - India
- Anglo American - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- Iligan Light & Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Essar Steel Hazira Ltd - India
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- Wilmar Investment Holdings
- Coalindo Energy - Indonesia
- Aditya Birla Group - India
- Metalloyd Limited - United Kingdom
- Energy Development Corp, Philippines
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Billiton Holdings Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Thai Mozambique Logistica
- Simpson Spence & Young - Indonesia
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Aboitiz Power Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Energy Link Ltd, New Zealand
- Goldman Sachs - Singapore
- Power Finance Corporation Ltd., India
- GN Power Mariveles Coal Plant, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bangladesh Power Developement Board
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Mercator Lines Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Deloitte Consulting - India
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Mintek Dendrill Indonesia
- PTC India Limited - India
- Semirara Mining Corp, Philippines
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- Oldendorff Carriers - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Ministry of Mines - Canada
- Parry Sugars Refinery, India
- Australian Commodity Traders Exchange
- Banpu Public Company Limited - Thailand
- Ind-Barath Power Infra Limited - India
- Bayan Resources Tbk. - Indonesia
- Rio Tinto Coal - Australia
- Central Electricity Authority - India
- Indian Oil Corporation Limited
- Standard Chartered Bank - UAE
- Global Green Power PLC Corporation, Philippines
- Borneo Indobara - Indonesia
- Binh Thuan Hamico - Vietnam
- Medco Energi Mining Internasional
- Independent Power Producers Association of India
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Therma Luzon, Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Indonesian Coal Mining Association
- Cigading International Bulk Terminal - Indonesia
- Africa Commodities Group - South Africa
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- Uttam Galva Steels Limited - India
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- Marubeni Corporation - India
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Kumho Petrochemical, South Korea
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Bhatia International Limited - India
- Gujarat Electricity Regulatory Commission - India
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Kapuas Tunggal Persada - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Antam Resourcindo - Indonesia
- The University of Queensland
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- ICICI Bank Limited - India
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Sindya Power Generating Company Private Ltd
- McConnell Dowell - Australia
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Heidelberg Cement - Germany
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Minerals Council of Australia
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- New Zealand Coal & Carbon
- Bahari Cakrawala Sebuku - Indonesia
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Vijayanagar Sugar Pvt Ltd - India
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Posco Energy - South Korea
- Globalindo Alam Lestari - Indonesia
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- GVK Power & Infra Limited - India
- Meralco Power Generation, Philippines
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Trasteel International SA, Italy
- Pendopo Energi Batubara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Siam City Cement - Thailand
- Xindia Steels Limited - India
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- IHS Mccloskey Coal Group - USA
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Transport, Egypt
- Barasentosa Lestari - Indonesia
- Planning Commission, India
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- The Treasury - Australian Government
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
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