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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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Wednesday, 07 March 12
3RD MOZAMBIQUE COAL CONFERENCE
3rd Mozambique Coal Conference
2-4 July 2012 | Joaquim Chissano International Conference Centre , Maputo, Mozambique
http://www.immevents.com/mo ...
Wednesday, 07 March 12
DRY BULK MARKET KEEPS UP TIMID REBOUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its rising momentum yesterday, rising for the eighth straight session, on the back of renewed demand for smaller bulk c ...
Wednesday, 07 March 12
BUKIT ASAM EYES 39% RISE IN COAL SALES - INSIDER STORIES
Insider Stories reported that, PT Bukit Asam Tbk is scouting a 39% increase in coal sales volume to 18.66 million tons this year from last year with ...
Wednesday, 07 March 12
PETROSEA SEALS US$188 MIO CONTRACT - INSIDER STORIES
Insider Stories reported that, coal mining contractor PT Petrosea Tbk has secured a US$188 million additional contract from its affiliated firm PT S ...
Monday, 05 March 12
SOUTHGOBI ANNOUNCES AGREEMENT TO SELL ITS THERMAL COAL TSAGAAN TOLGOI DEPOSIT FOR US$ 30 MILLION
SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) announced today an agreement to sell its thermal coal property, the Tsagaan Tolgoi Deposit to Modun Re ...
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- The University of Queensland
- Cement Manufacturers Association - India
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- Mercuria Energy - Indonesia
- Energy Link Ltd, New Zealand
- Global Green Power PLC Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Parliament of New Zealand
- Bhushan Steel Limited - India
- Electricity Authority, New Zealand
- ICICI Bank Limited - India
- Central Java Power - Indonesia
- Eastern Energy - Thailand
- Savvy Resources Ltd - HongKong
- VISA Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Sidhee Cement - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parry Sugars Refinery, India
- Rio Tinto Coal - Australia
- Georgia Ports Authority, United States
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Asmin Koalindo Tuhup - Indonesia
- PTC India Limited - India
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Pendopo Energi Batubara - Indonesia
- Tata Chemicals Ltd - India
- Kartika Selabumi Mining - Indonesia
- Xindia Steels Limited - India
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Semirara Mining and Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- The State Trading Corporation of India Ltd
- Jorong Barutama Greston.PT - Indonesia
- Minerals Council of Australia
- Ambuja Cements Ltd - India
- Indian Oil Corporation Limited
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- London Commodity Brokers - England
- White Energy Company Limited
- Thai Mozambique Logistica
- Intertek Mineral Services - Indonesia
- Bangladesh Power Developement Board
- GAC Shipping (India) Pvt Ltd
- PowerSource Philippines DevCo
- Indogreen Group - Indonesia
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
- SMG Consultants - Indonesia
- Trasteel International SA, Italy
- International Coal Ventures Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Africa Commodities Group - South Africa
- Deloitte Consulting - India
- Karbindo Abesyapradhi - Indoneisa
- Australian Coal Association
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Wood Mackenzie - Singapore
- Ind-Barath Power Infra Limited - India
- Indika Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- Oldendorff Carriers - Singapore
- Anglo American - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Metalloyd Limited - United Kingdom
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Power Finance Corporation Ltd., India
- Kepco SPC Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- Dalmia Cement Bharat India
- MS Steel International - UAE
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Borneo Indobara - Indonesia
- Aboitiz Power Corporation - Philippines
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- Sical Logistics Limited - India
- Ministry of Mines - Canada
- CNBM International Corporation - China
- Thiess Contractors Indonesia
- Bayan Resources Tbk. - Indonesia
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- Interocean Group of Companies - India
- Binh Thuan Hamico - Vietnam
- Energy Development Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Mercator Lines Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Videocon Industries ltd - India
- Baramulti Group, Indonesia
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Indonesian Coal Mining Association
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Bukit Baiduri Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Neyveli Lignite Corporation Ltd, - India
- Madhucon Powers Ltd - India
- Standard Chartered Bank - UAE
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Semirara Mining Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Meralco Power Generation, Philippines
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- GMR Energy Limited - India
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Latin American Coal - Colombia
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- Uttam Galva Steels Limited - India
- SMC Global Power, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Goldman Sachs - Singapore
- Posco Energy - South Korea
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Global Coal Blending Company Limited - Australia
- Tamil Nadu electricity Board
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Jindal Steel & Power Ltd - India
- ASAPP Information Group - India
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- GVK Power & Infra Limited - India
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
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