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.
|
|
Tuesday, 21 February 12
THREAT ISSUED ON MINERAL FIRMS AS GOVT PLANS EXPORT BAN - THE JAKARTA POST
The Jakarta Post, one of the leading english news papaer in Indonesia reported that, the government has given mineral producers three months to subm ...
Monday, 20 February 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU
The dry market experienced one more disappointing week with tonnage oversupply and limited cargo demand that pushes earnings for shipping players to ...
Monday, 20 February 12
JATENERGY SECURES FIRST 8000-TONNE COAL SALES CONTRACT FOR JONGKANG MINES
8000-tonne contract with Singaporean buyer signed for March delivery
50% down payment due in five working days
Production continues at both Jongka ...
Monday, 20 February 12
DIAN SWASTATIKA ACQUIRES ANDALAN LESTARI - INSIDER STORIES
Insider Stories reported that, PT Dian Swastatika Sentosa Tbk (DSSA), controlled by Fuganto Widjaja, son of Indra Widjaja, reported a 99.83% takeove ...
Monday, 20 February 12
COAL BOOM AND ENVIRONMENTAL CONCERN - SUNIL K KUMBHAT
COALspot.com - The dawn of the 21st century has seen a shift in the world's commercial balance of power, with the dominance of the US, Europe and J ...
|
|
|
Showing 4841 to 4845 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Minerals Council of Australia
- Formosa Plastics Group - Taiwan
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Karaikal Port Pvt Ltd - India
- Indian Energy Exchange, India
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Malabar Cements Ltd - India
- Tata Chemicals Ltd - India
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Eastern Coal Council - USA
- Energy Development Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Kobexindo Tractors - Indoneisa
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- Wood Mackenzie - Singapore
- Aboitiz Power Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Meenaskhi Energy Private Limited - India
- Bhushan Steel Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Indian Oil Corporation Limited
- Cigading International Bulk Terminal - Indonesia
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Mines - Canada
- Australian Coal Association
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- LBH Netherlands Bv - Netherlands
- Bhoruka Overseas - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- VISA Power Limited - India
- European Bulk Services B.V. - Netherlands
- Meralco Power Generation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Madhucon Powers Ltd - India
- Siam City Cement - Thailand
- PowerSource Philippines DevCo
- White Energy Company Limited
- Sojitz Corporation - Japan
- Bharathi Cement Corporation - India
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Kepco SPC Power Corporation, Philippines
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Singapore Mercantile Exchange
- Wilmar Investment Holdings
- Deloitte Consulting - India
- Eastern Energy - Thailand
- Baramulti Group, Indonesia
- Thiess Contractors Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Energy Link Ltd, New Zealand
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Price Waterhouse Coopers - Russia
- GMR Energy Limited - India
- Mjunction Services Limited - India
- Dalmia Cement Bharat India
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- Merrill Lynch Commodities Europe
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Marubeni Corporation - India
- Mercator Lines Limited - India
- Ind-Barath Power Infra Limited - India
- Vedanta Resources Plc - India
- Sical Logistics Limited - India
- Jindal Steel & Power Ltd - India
- Uttam Galva Steels Limited - India
- Manunggal Multi Energi - Indonesia
- SMG Consultants - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Commonwealth Bank - Australia
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- IHS Mccloskey Coal Group - USA
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Romanian Commodities Exchange
- Parliament of New Zealand
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Ambuja Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pendopo Energi Batubara - Indonesia
- MS Steel International - UAE
- PTC India Limited - India
- Lanco Infratech Ltd - India
- Essar Steel Hazira Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Maharashtra Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- ASAPP Information Group - India
- The University of Queensland
- Edison Trading Spa - Italy
- Kapuas Tunggal Persada - Indonesia
- Petron Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Rio Tinto Coal - Australia
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
- Standard Chartered Bank - UAE
- Attock Cement Pakistan Limited
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Port Waratah Coal Services - Australia
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- Kaltim Prima Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- The State Trading Corporation of India Ltd
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Independent Power Producers Association of India
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Iligan Light & Power Inc, Philippines
- Indogreen Group - Indonesia
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Ministry of Finance - Indonesia
- McConnell Dowell - Australia
- Mintek Dendrill Indonesia
- Bukit Baiduri Energy - Indonesia
- Orica Mining Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bayan Resources Tbk. - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Central Electricity Authority - India
- Makarim & Taira - Indonesia
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Intertek Mineral Services - Indonesia
- Australian Commodity Traders Exchange
|
| |
| |
|
