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, 27 February 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The pessimism in the dry market persists with the Baltic Dry Index still trying to find a steady pace of growth and average time charter earnings fo ...
Sunday, 26 February 12
THE FREIGHT RATES FOR INDONESIA TO INDIA IS LIKELY TO BE FIRM FOR NEXT 2/3 WEEKS - VISTAAR
COALspot.com – “There was not much change in the BDI and other indices this week except for the Panamax which was down by 11.91 pc ...
Friday, 24 February 12
DRY BULK MARKET POSTS FIRST REBOUND IN A WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As was expected since mid-week, the dry bulk market's benchmark, the BDI (Baltic Dry Index) has managed to put a stop in a 6-day losing rally, endi ...
Thursday, 23 February 12
2.5 PANAMAX VESSELS PER AVAILABLE CARGO FOR MARCH DATES - FEARN BULK
Handy
Another depressing week for Supras in both basins. Lack of fresh business and over-supply of tonnage in the Atlantic pushed rates south. Cont ...
Wednesday, 22 February 12
RAW COMMODITY EXPORT BAN SPARKS SMELTER BUILDING BOOM IN INDONESIA ANTARA / THE JAKARTA GLOBE
Antara / The Jakarta Globe reported that, as the government gears up to ban all exports of unprocessed commodities, Indonesia will see 12 new ...
|
|
|
Showing 4836 to 4840 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Authority, New Zealand
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Bangladesh Power Developement Board
- Sindya Power Generating Company Private Ltd
- Billiton Holdings Pty Ltd - Australia
- London Commodity Brokers - England
- Aditya Birla Group - India
- Bahari Cakrawala Sebuku - Indonesia
- Anglo American - United Kingdom
- Goldman Sachs - Singapore
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- Aboitiz Power Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- SMC Global Power, Philippines
- Indian Energy Exchange, India
- Vedanta Resources Plc - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Toyota Tsusho Corporation, Japan
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Jindal Steel & Power Ltd - India
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- CNBM International Corporation - China
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- Antam Resourcindo - Indonesia
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- Energy Development Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Tamil Nadu electricity Board
- Indonesian Coal Mining Association
- Kepco SPC Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Parliament of New Zealand
- Jaiprakash Power Ventures ltd
- Bulk Trading Sa - Switzerland
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Port Waratah Coal Services - Australia
- TeaM Sual Corporation - Philippines
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Independent Power Producers Association of India
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Essar Steel Hazira Ltd - India
- Star Paper Mills Limited - India
- Makarim & Taira - Indonesia
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Ministry of Transport, Egypt
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- GMR Energy Limited - India
- Orica Australia Pty. Ltd.
- Intertek Mineral Services - Indonesia
- Global Business Power Corporation, Philippines
- Ministry of Mines - Canada
- Savvy Resources Ltd - HongKong
- Coalindo Energy - Indonesia
- ICICI Bank Limited - India
- Lanco Infratech Ltd - India
- Maheswari Brothers Coal Limited - India
- Marubeni Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- New Zealand Coal & Carbon
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Binh Thuan Hamico - Vietnam
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- Dalmia Cement Bharat India
- Medco Energi Mining Internasional
- Carbofer General Trading SA - India
- Kalimantan Lumbung Energi - Indonesia
- IHS Mccloskey Coal Group - USA
- Kohat Cement Company Ltd. - Pakistan
- PowerSource Philippines DevCo
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercuria Energy - Indonesia
- Petron Corporation, Philippines
- Metalloyd Limited - United Kingdom
- GVK Power & Infra Limited - India
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- Formosa Plastics Group - Taiwan
- Borneo Indobara - Indonesia
- Indika Energy - Indonesia
- Bhushan Steel Limited - India
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- Attock Cement Pakistan Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Romanian Commodities Exchange
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Mjunction Services Limited - India
- AsiaOL BioFuels Corp., Philippines
- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- The State Trading Corporation of India Ltd
- Siam City Cement PLC, Thailand
- SMG Consultants - Indonesia
- Central Java Power - Indonesia
- Wood Mackenzie - Singapore
- GAC Shipping (India) Pvt Ltd
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- Commonwealth Bank - Australia
- Madhucon Powers Ltd - India
- Indo Tambangraya Megah - Indonesia
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- IEA Clean Coal Centre - UK
- Heidelberg Cement - Germany
- Kartika Selabumi Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Gujarat Mineral Development Corp Ltd - India
- Meenaskhi Energy Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- Eastern Energy - Thailand
- Africa Commodities Group - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Straits Asia Resources Limited - Singapore
- Mercator Lines Limited - India
- Ambuja Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- White Energy Company Limited
- Electricity Generating Authority of Thailand
- Videocon Industries ltd - India
- Thai Mozambique Logistica
- The University of Queensland
- Sojitz Corporation - Japan
- Bharathi Cement Corporation - India
- South Luzon Thermal Energy Corporation
- Deloitte Consulting - India
- Cement Manufacturers Association - India
- Miang Besar Coal Terminal - Indonesia
- Wilmar Investment Holdings
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Riau Bara Harum - Indonesia
- Meralco Power Generation, Philippines
- Global Green Power PLC Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- VISA Power Limited - India
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- Grasim Industreis Ltd - India
- Australian Coal Association
|
| |
| |
|
