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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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Saturday, 04 February 12
SUPRAMAX DELIVERY SOUTH CHINA FOR TRIPS VIA INDONESIA WERE REPORTED AROUND $ 6,000 PER DAY - VISTAAR
COALspot.com - The markets continued to soften which dropped by almost 11 pct and BDI closing at 647 points.
The drop in BDI was mainly due to dr ...
Thursday, 02 February 12
NO RELIEF YET FOR DRY BULK SHIP OWNERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Although at the start of 2012 nobody can claim that the global seaborne trade has suddenly come to a halt, quite the contrary, it seems that the dry ...
Wednesday, 01 February 12
KRISHNAPATNAM PORT - GOING DEEP TO SOAR HIGH
COALspot.com - Krishnapatnam Port now rightfully claims as the deepest draft port in India, as it has started accepting vessels with maximum permiss ...
Wednesday, 01 February 12
IN JAMBI, MOST MINING COMPANIES LACK 'CLEAR-AND-CLEAN' PERMITS - JP
More than three-quarters of the 386 mining companies in Jambi lack “clear-and-clean” certifications from the government, according to an ...
Wednesday, 01 February 12
2% OF IBPS TOTAL CONCESSION AREA CONTAINS TOTAL COAL RESOURCE OF 56.1 MILLION TON
COALspot.com - PT. Britmindo, a mine consulting firm, has finalized PT. Insani Bara Perkasa (IBP) first JORC (Joint Ore Reserves Committee) res ...
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- Mercuria Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- Star Paper Mills Limited - India
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Marubeni Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Standard Chartered Bank - UAE
- Oldendorff Carriers - Singapore
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Rio Tinto Coal - Australia
- Chettinad Cement Corporation Ltd - India
- Timah Investasi Mineral - Indoneisa
- Mintek Dendrill Indonesia
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Chamber of Mines of South Africa
- CNBM International Corporation - China
- Central Java Power - Indonesia
- Jindal Steel & Power Ltd - India
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- McConnell Dowell - Australia
- Bukit Baiduri Energy - Indonesia
- Aditya Birla Group - India
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Siam City Cement PLC, Thailand
- Kalimantan Lumbung Energi - Indonesia
- SMC Global Power, Philippines
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Parliament of New Zealand
- Leighton Contractors Pty Ltd - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Aboitiz Power Corporation - Philippines
- New Zealand Coal & Carbon
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Indonesian Coal Mining Association
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Coal Council - USA
- Intertek Mineral Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Carbofer General Trading SA - India
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Bhoruka Overseas - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Metalloyd Limited - United Kingdom
- Cement Manufacturers Association - India
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PowerSource Philippines DevCo
- Mjunction Services Limited - India
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Singapore Mercantile Exchange
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Central Electricity Authority - India
- Energy Development Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- Kepco SPC Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Siam City Cement - Thailand
- Sakthi Sugars Limited - India
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Eastern Energy - Thailand
- Vizag Seaport Private Limited - India
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Baramulti Group, Indonesia
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Ministry of Transport, Egypt
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Bhatia International Limited - India
- London Commodity Brokers - England
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Mercator Lines Limited - India
- Indogreen Group - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Australian Commodity Traders Exchange
- Indian Oil Corporation Limited
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Kumho Petrochemical, South Korea
- White Energy Company Limited
- Samtan Co., Ltd - South Korea
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Posco Energy - South Korea
- Holcim Trading Pte Ltd - Singapore
- Bulk Trading Sa - Switzerland
- Lanco Infratech Ltd - India
- VISA Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- GMR Energy Limited - India
- Iligan Light & Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- The University of Queensland
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- Bayan Resources Tbk. - Indonesia
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Xindia Steels Limited - India
- Africa Commodities Group - South Africa
- Globalindo Alam Lestari - Indonesia
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- ICICI Bank Limited - India
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- Dalmia Cement Bharat India
- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Straits Asia Resources Limited - Singapore
- Formosa Plastics Group - Taiwan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- Agrawal Coal Company - India
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Gujarat Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Planning Commission, India
- Global Business Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Indian Energy Exchange, India
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