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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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Monday, 12 March 12
DRY BULK RATES WILL REMAIN LOW IN 2012 SAYS DANISH SHIP FINANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In its annual shipping survey Danish Ship Finance said that the current outlook for the Dry Bulk market seems unlikely to foster higher rates in any ...
Monday, 12 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The first days of March appear to be more encouraging for dry bulk operators, but the outlook is still gloomy for the rest of year with earnings for ...
Sunday, 11 March 12
FREIGHT RATES FOR INDONESIA TO INDIA WILL CONTINUE TO REMAIN FIRM- VISTAAR
COALspot.com - This week saw another upward trend with all indices up except for the Cape index.
The BDI was up by 6.87 pct closing at 824 points ...
Friday, 09 March 12
MINING IN INDONESIA: RESTRICTION ON FOREIGN INVESTMENT - SUNIL K KUMBHAT
COALspot.com - Recently Govt has passed regulation instructing foreign mining companies to reduce their ownership stake.
The regulation known as ...
Friday, 09 March 12
SHIP OWNERS LOOKING TO CHINA FOR REVIVAL, WHILE THEY KEEP SELLING OLD SHIPS FOR SCRAP - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With China’s economic policy plan for the future on every ship owner’s mind, at least those involved in the dry bulk industry, the lates ...
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Showing 4811 to 4815 news of total 6871 |
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- Australian Commodity Traders Exchange
- Dalmia Cement Bharat India
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- Commonwealth Bank - Australia
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Bahari Cakrawala Sebuku - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- VISA Power Limited - India
- PTC India Limited - India
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Energy Link Ltd, New Zealand
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Malabar Cements Ltd - India
- Kumho Petrochemical, South Korea
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- Cement Manufacturers Association - India
- Cigading International Bulk Terminal - Indonesia
- Mercuria Energy - Indonesia
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Singapore Mercantile Exchange
- Mintek Dendrill Indonesia
- LBH Netherlands Bv - Netherlands
- Manunggal Multi Energi - Indonesia
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Vedanta Resources Plc - India
- Straits Asia Resources Limited - Singapore
- Aditya Birla Group - India
- Chamber of Mines of South Africa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bulk Trading Sa - Switzerland
- Aboitiz Power Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- SMG Consultants - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Bhoruka Overseas - Indonesia
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Binh Thuan Hamico - Vietnam
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Altura Mining Limited, Indonesia
- Bukit Baiduri Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Ministry of Finance - Indonesia
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Sojitz Corporation - Japan
- CIMB Investment Bank - Malaysia
- Wood Mackenzie - Singapore
- Electricity Authority, New Zealand
- Vizag Seaport Private Limited - India
- Parry Sugars Refinery, India
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Oldendorff Carriers - Singapore
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- Sical Logistics Limited - India
- ASAPP Information Group - India
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- Grasim Industreis Ltd - India
- Baramulti Group, Indonesia
- Meralco Power Generation, Philippines
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Edison Trading Spa - Italy
- Central Java Power - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement PLC, Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Larsen & Toubro Limited - India
- CNBM International Corporation - China
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- MS Steel International - UAE
- Madhucon Powers Ltd - India
- Latin American Coal - Colombia
- New Zealand Coal & Carbon
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- Georgia Ports Authority, United States
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Sidhee Cement - India
- Goldman Sachs - Singapore
- Borneo Indobara - Indonesia
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Economic Council, Georgia
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- Coalindo Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- The Treasury - Australian Government
- Australian Coal Association
- Star Paper Mills Limited - India
- Metalloyd Limited - United Kingdom
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- Thiess Contractors Indonesia
- GVK Power & Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- Xindia Steels Limited - India
- Anglo American - United Kingdom
- Sarangani Energy Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Ceylon Electricity Board - Sri Lanka
- PNOC Exploration Corporation - Philippines
- Eastern Energy - Thailand
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Sinarmas Energy and Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- Orica Australia Pty. Ltd.
- ICICI Bank Limited - India
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Coastal Gujarat Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Posco Energy - South Korea
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