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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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Sunday, 22 January 12
FREIGHT MARKET DROPPED TO THE LOWEST LEVEL SINCE 2008
COALspot.com - "The markets continued to soften almost reaching 2008 levels breaking the 1,000 point mark", said Capt. Reddy of Vistaar Sh ...
Saturday, 21 January 12
ASIAS PREMIER COMPREHENSIVE OPEN CUT MINING CONFERENCE SCHEDULED FOR FEBRUARY 2012
As the only such conference in the region for miners and service providers, IBC Asia’s Open Cut Mine Planning & Operational Excellence con ...
Saturday, 21 January 12
COAL MARKETS CELEBRATES A DECADE OF BRINGING BUYERS & SELLERS TOGETHER
In 2012, IBC Asia’s premier Coal Markets conference series – Asia’s only globally focused coal import, export and supply chain eve ...
Saturday, 21 January 12
SAMIN TAN COMPLETES BUMI PLC TAKEOVER - INSIDER STORIES
Insider Stories reported that, Indonesian coking coal miner PT Borneo Lumbung Energi & Metal Tbk (BORN), that is controlled by stellar businessm ...
Thursday, 19 January 12
SOUTHGOBI RESOURCES SELLS MORE THAN FOUR MILLION TONNES OF COAL IN 2011, 58% MORE THAN 2010
COALspot.com - SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) has successfully complets year 2011 on guidance in terms of coal sales and production.
...
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- Mintek Dendrill Indonesia
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Goldman Sachs - Singapore
- SN Aboitiz Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Antam Resourcindo - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Sojitz Corporation - Japan
- Heidelberg Cement - Germany
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- Oldendorff Carriers - Singapore
- Edison Trading Spa - Italy
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- Indogreen Group - Indonesia
- Carbofer General Trading SA - India
- Siam City Cement - Thailand
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Central Java Power - Indonesia
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Makarim & Taira - Indonesia
- Wilmar Investment Holdings
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- Kaltim Prima Coal - Indonesia
- Medco Energi Mining Internasional
- IHS Mccloskey Coal Group - USA
- Uttam Galva Steels Limited - India
- Aditya Birla Group - India
- Mercator Lines Limited - India
- Parry Sugars Refinery, India
- Ministry of Finance - Indonesia
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Kideco Jaya Agung - Indonesia
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- PowerSource Philippines DevCo
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Central Electricity Authority - India
- Semirara Mining Corp, Philippines
- Star Paper Mills Limited - India
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Riau Bara Harum - Indonesia
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Orica Mining Services - Indonesia
- Toyota Tsusho Corporation, Japan
- Madhucon Powers Ltd - India
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Australian Coal Association
- Africa Commodities Group - South Africa
- The State Trading Corporation of India Ltd
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Attock Cement Pakistan Limited
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Sakthi Sugars Limited - India
- Tamil Nadu electricity Board
- Electricity Authority, New Zealand
- Larsen & Toubro Limited - India
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Marubeni Corporation - India
- Bukit Baiduri Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bulk Trading Sa - Switzerland
- Maheswari Brothers Coal Limited - India
- Ind-Barath Power Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Mercuria Energy - Indonesia
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- Iligan Light & Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Ambuja Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Ceylon Electricity Board - Sri Lanka
- Thiess Contractors Indonesia
- Minerals Council of Australia
- Bangladesh Power Developement Board
- Eastern Energy - Thailand
- Altura Mining Limited, Indonesia
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- McConnell Dowell - Australia
- Metalloyd Limited - United Kingdom
- The University of Queensland
- Directorate Of Revenue Intelligence - India
- Tata Chemicals Ltd - India
- South Luzon Thermal Energy Corporation
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- White Energy Company Limited
- Kumho Petrochemical, South Korea
- Bhoruka Overseas - Indonesia
- GVK Power & Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- Vizag Seaport Private Limited - India
- Borneo Indobara - Indonesia
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Singapore Mercantile Exchange
- Sinarmas Energy and Mining - Indonesia
- Intertek Mineral Services - Indonesia
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- VISA Power Limited - India
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Deloitte Consulting - India
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Indian Energy Exchange, India
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- London Commodity Brokers - England
- Cement Manufacturers Association - India
- Semirara Mining and Power Corporation, Philippines
- Bhatia International Limited - India
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Merrill Lynch Commodities Europe
- Bhushan Steel Limited - India
- Orica Australia Pty. Ltd.
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- Therma Luzon, Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Economic Council, Georgia
- CNBM International Corporation - China
- Bank of Tokyo Mitsubishi UFJ Ltd
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