We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 05 March 12
SOME RESOURCE TITANS NOT THRILLED WITH INDONESIAN EXPORT BAN - THE JAKARTA GLOBE
The Jakarta Globe reported that, local representatives of major business associations in East Kalimantan have protested a government regulation that ...
Monday, 05 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
An air of optimism poured in the market this week for dry bulk shippers with the Baltic Dry Index recording daily gains during the end of February b ...
Sunday, 04 March 12
SE ASIA WAS FIRM FOR TRIPS TO INDIA AND CHINA - VISTAAR
COALspot.com - This week saw another upward trend with all indices up and generally market was firm.
The BDI was up by 7.38 pct closing at 771 po ...
Friday, 02 March 12
DJMBP HAS ANNOUNCED SECOND BATCH OF CLEAR N CLEAN CERTIFIED MINERS
COALspot.com - The Directorate general of mineral & coal of Indonesia has announced second batch of companies who have passed IUP Clear and Clea ...
Thursday, 01 March 12
BUKIT ASAM TARGETS EUROPEAN INVESTORS
COALspot.com - PT. Bukit Asam (persero) Tbk, Indonesian state owned coal miner is planning to conduct road show in Europe next week to target at Eur ...
|
|
|
Showing 4826 to 4830 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- TNB Fuel Sdn Bhd - Malaysia
- Vedanta Resources Plc - India
- Merrill Lynch Commodities Europe
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Goldman Sachs - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Bangladesh Power Developement Board
- Siam City Cement PLC, Thailand
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- MS Steel International - UAE
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Global Business Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Latin American Coal - Colombia
- Barasentosa Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Indian Energy Exchange, India
- The University of Queensland
- Marubeni Corporation - India
- SMC Global Power, Philippines
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Economic Council, Georgia
- Minerals Council of Australia
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Africa Commodities Group - South Africa
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Australian Coal Association
- IHS Mccloskey Coal Group - USA
- Sical Logistics Limited - India
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Sakthi Sugars Limited - India
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Iligan Light & Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- PetroVietnam Power Coal Import and Supply Company
- Bukit Makmur.PT - Indonesia
- Deloitte Consulting - India
- Aboitiz Power Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- Antam Resourcindo - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Globalindo Alam Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Coalindo Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Thiess Contractors Indonesia
- ASAPP Information Group - India
- Lanco Infratech Ltd - India
- Gujarat Sidhee Cement - India
- Sarangani Energy Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Interocean Group of Companies - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Baramulti Group, Indonesia
- Miang Besar Coal Terminal - Indonesia
- New Zealand Coal & Carbon
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Karaikal Port Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- European Bulk Services B.V. - Netherlands
- Orica Australia Pty. Ltd.
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- LBH Netherlands Bv - Netherlands
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Tata Chemicals Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Singapore Mercantile Exchange
- Aditya Birla Group - India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Global Coal Blending Company Limited - Australia
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- Bhushan Steel Limited - India
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meralco Power Generation, Philippines
- Posco Energy - South Korea
- Rio Tinto Coal - Australia
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Neyveli Lignite Corporation Ltd, - India
- Australian Commodity Traders Exchange
- Essar Steel Hazira Ltd - India
- Banpu Public Company Limited - Thailand
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Savvy Resources Ltd - HongKong
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Mjunction Services Limited - India
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- GMR Energy Limited - India
- Holcim Trading Pte Ltd - Singapore
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Kartika Selabumi Mining - Indonesia
|
| |
| |
|
