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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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Thursday, 26 January 12
ABM INVESTAMA SEALS US$100 MIO CONTRACT - INSIDER STORIES
Insider Stories reported that, PT Reswara Minergi Hartama, a subsidary of PT ABM Investama Tbk (ABMM), has sealed a 2 million tons of coal export co ...
Thursday, 26 January 12
DRY BULK MARKETS DOWNFALL KNOWS NO LIMITS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market’s demise seems to have no visible end, as China’s Lunar Year Holidays continue this week, thus leaving demand with n ...
Wednesday, 25 January 12
CLEAN AND CLEAR MINING PERMITS TO BE COMPLETED END OF 2012 - BISNIS.COM
Bisnis.com reported that, the government plans to announce 700 mining permits with "clean and clear" status without overlapping on other p ...
Tuesday, 24 January 12
ANOTHER SEVERE DROP IN THE CAPESIZE - BRS
The lunar year celebrations and the high number of new building deliveries (more than 35 Capes so far in January as owners push 2011 deliveries into ...
Tuesday, 24 January 12
BUKIT ASAM FY11 NET PROFIT SURGES 50% - INSIDER STORIES
Insider Stories reported that, the state-controlled PT Bukit Asam Tbk (PTBA) estimated to book Rp3 trillion (approximately US$ 335,570,469) net prof ...
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- Coastal Gujarat Power Limited - India
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Tata Chemicals Ltd - India
- Baramulti Group, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Chamber of Mines of South Africa
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Power Finance Corporation Ltd., India
- Asmin Koalindo Tuhup - Indonesia
- Orica Mining Services - Indonesia
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- Agrawal Coal Company - India
- Lanco Infratech Ltd - India
- PowerSource Philippines DevCo
- Bhoruka Overseas - Indonesia
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Makarim & Taira - Indonesia
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- Rio Tinto Coal - Australia
- Heidelberg Cement - Germany
- Georgia Ports Authority, United States
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Aditya Birla Group - India
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Mercuria Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Romanian Commodities Exchange
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- Bahari Cakrawala Sebuku - Indonesia
- Coal and Oil Company - UAE
- Gujarat Sidhee Cement - India
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- The Treasury - Australian Government
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Australian Commodity Traders Exchange
- Indo Tambangraya Megah - Indonesia
- Ministry of Finance - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- Tamil Nadu electricity Board
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- Electricity Generating Authority of Thailand
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- Petron Corporation, Philippines
- Videocon Industries ltd - India
- Independent Power Producers Association of India
- Thai Mozambique Logistica
- Kobexindo Tractors - Indoneisa
- Posco Energy - South Korea
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- Sojitz Corporation - Japan
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Merrill Lynch Commodities Europe
- GN Power Mariveles Coal Plant, Philippines
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Goldman Sachs - Singapore
- Jaiprakash Power Ventures ltd
- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Global Green Power PLC Corporation, Philippines
- Samtan Co., Ltd - South Korea
- OPG Power Generation Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Medco Energi Mining Internasional
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Coal Council - USA
- Minerals Council of Australia
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Therma Luzon, Inc, Philippines
- Riau Bara Harum - Indonesia
- India Bulls Power Limited - India
- Indika Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kartika Selabumi Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- Mintek Dendrill Indonesia
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- Dalmia Cement Bharat India
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- Indian Energy Exchange, India
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Carbofer General Trading SA - India
- Mjunction Services Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining Corp, Philippines
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Anglo American - United Kingdom
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- LBH Netherlands Bv - Netherlands
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Central Electricity Authority - India
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Bukit Baiduri Energy - Indonesia
- Energy Link Ltd, New Zealand
- Indonesian Coal Mining Association
- Sical Logistics Limited - India
- Bhatia International Limited - India
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- Ministry of Mines - Canada
- Sakthi Sugars Limited - India
- Oldendorff Carriers - Singapore
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- London Commodity Brokers - England
- Altura Mining Limited, Indonesia
- Kumho Petrochemical, South Korea
- Thiess Contractors Indonesia
- Wilmar Investment Holdings
- Parliament of New Zealand
- Australian Coal Association
- The State Trading Corporation of India Ltd
- Directorate General of MIneral and Coal - Indonesia
- Indogreen Group - Indonesia
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Ind-Barath Power Infra Limited - India
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Marubeni Corporation - India
- Toyota Tsusho Corporation, Japan
- Port Waratah Coal Services - Australia
- GVK Power & Infra Limited - India
- Planning Commission, India
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Bharathi Cement Corporation - India
- Standard Chartered Bank - UAE
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