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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, 08 March 12
INDONESIA'S COAL SECTOR CAN BENEFIT FROM CLEARER REGULATIONS - FITCH RATINGS
Fitch Ratings says Indonesia's coal mining sector should continue to see strong growth prospects but can benefit from clearer and more predictable ...
Thursday, 08 March 12
DRY BULK MARKET ON THE RISE; CHINAS COAL IMPORTS COULD INCREASE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept on rising back to healthier levels yesterday, with the BDI (Baltic Dry Index) the industry’s benchmark, marking its 8 ...
Wednesday, 07 March 12
INDONESIA COAL BENCHMARK PRICE GAINS FOR SECOND MONTH
COALspot.com - Indonesia raised the monthly coal reference price for sales in March by 1.15 percent, the second increase since February.
The Mini ...
Wednesday, 07 March 12
INDONESIA TO LIMIT FOREIGN OWNERSHIP IN MINES TO 49 PERCENT WITHIN 10 YEARS OF PRODUCTION
COALspot.com - Foreign holders of mining licenses in Indonesia have to divert 51% of their stakes to Indonesian government or domestic entitie ...
Wednesday, 07 March 12
ASSESS ASIAS POTENTIAL, DEVELOPMENTS AND APPETITE FOR SHALE AT SHALE GAS SUMMIT
Press Release - Assess Asia’s Potential, Developments and Appetite for Shale at Shale Gas Summit on 23-24 Apr, 2012 in Beijing
China is rep ...
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Showing 4816 to 4820 news of total 6871 |
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- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Global Green Power PLC Corporation, Philippines
- Deloitte Consulting - India
- Power Finance Corporation Ltd., India
- Holcim Trading Pte Ltd - Singapore
- Price Waterhouse Coopers - Russia
- Simpson Spence & Young - Indonesia
- Kaltim Prima Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Pipit Mutiara Jaya. PT, Indonesia
- Parliament of New Zealand
- Barasentosa Lestari - Indonesia
- Bhatia International Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kideco Jaya Agung - Indonesia
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- PTC India Limited - India
- Tamil Nadu electricity Board
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Bhoruka Overseas - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Independent Power Producers Association of India
- Posco Energy - South Korea
- Trasteel International SA, Italy
- Maheswari Brothers Coal Limited - India
- GMR Energy Limited - India
- Aboitiz Power Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- European Bulk Services B.V. - Netherlands
- CIMB Investment Bank - Malaysia
- Ambuja Cements Ltd - India
- Central Electricity Authority - India
- ASAPP Information Group - India
- Jorong Barutama Greston.PT - Indonesia
- Bukit Makmur.PT - Indonesia
- Lanco Infratech Ltd - India
- Energy Link Ltd, New Zealand
- Antam Resourcindo - Indonesia
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Planning Commission, India
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Australian Coal Association
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Bangladesh Power Developement Board
- Oldendorff Carriers - Singapore
- Therma Luzon, Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Cement Manufacturers Association - India
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- Coastal Gujarat Power Limited - India
- Mercator Lines Limited - India
- Electricity Authority, New Zealand
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- MS Steel International - UAE
- Sinarmas Energy and Mining - Indonesia
- Larsen & Toubro Limited - India
- Globalindo Alam Lestari - Indonesia
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Kapuas Tunggal Persada - Indonesia
- Indogreen Group - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Semirara Mining and Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Minerals Council of Australia
- Bayan Resources Tbk. - Indonesia
- LBH Netherlands Bv - Netherlands
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Mineral Development Corp Ltd - India
- Rio Tinto Coal - Australia
- The University of Queensland
- Wood Mackenzie - Singapore
- Makarim & Taira - Indonesia
- Toyota Tsusho Corporation, Japan
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Tata Chemicals Ltd - India
- Grasim Industreis Ltd - India
- GVK Power & Infra Limited - India
- Ministry of Finance - Indonesia
- Georgia Ports Authority, United States
- Sarangani Energy Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- London Commodity Brokers - England
- IHS Mccloskey Coal Group - USA
- Sree Jayajothi Cements Limited - India
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- Baramulti Group, Indonesia
- Kartika Selabumi Mining - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Renaissance Capital - South Africa
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- Global Business Power Corporation, Philippines
- Interocean Group of Companies - India
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Sojitz Corporation - Japan
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Eastern Coal Council - USA
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Xindia Steels Limited - India
- Africa Commodities Group - South Africa
- Bharathi Cement Corporation - India
- Central Java Power - Indonesia
- Directorate Of Revenue Intelligence - India
- Goldman Sachs - Singapore
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- Samtan Co., Ltd - South Korea
- VISA Power Limited - India
- Thiess Contractors Indonesia
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- South Luzon Thermal Energy Corporation
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Sakthi Sugars Limited - India
- Jaiprakash Power Ventures ltd
- Thai Mozambique Logistica
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Binh Thuan Hamico - Vietnam
- Singapore Mercantile Exchange
- Uttam Galva Steels Limited - India
- Indian Energy Exchange, India
- Indika Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- GN Power Mariveles Coal Plant, Philippines
- Romanian Commodities Exchange
- New Zealand Coal & Carbon
- Australian Commodity Traders Exchange
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