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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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Tuesday, 10 January 12
THE 4TH DEEPWATER ASIA CONGRESS 2012 WILL KICK OFF ON MAY 23 - 25
Press release - Based on the past three years’ success, SZ & W Group is excited to announce the 4th Deepwater Asia Congress will be held o ...
Monday, 09 January 12
2012: WHAT WILL IT BRING FOR THE DRY BULK MARKET? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A further increase in dry bulk demand could be the remedy for most of the industry's oversupply issues, together of course with the high level of s ...
Sunday, 08 January 12
ICICI OUTLOOK ON INDIAN POWER, MINING,CEMENT, AND SHIPPING SECTORS PERFORMANCE IN 2012
Broking firm, ICICIdirect (India) has come out with report on sectors outlook for 2012. IRIS has collated key highlights for each sector from ...
Sunday, 08 January 12
SUPRAMAX DELIVERY SOUTH CHINA FOR TRIPS VIA INDONESIA WERE REPORTED AROUND $ 7000 PER DAY - VISTAAR
Wish You a Very Happy and Prosperous New year 2012.
COALspot.com - The last report by us was on 16th Dec 2011 and because of holidays this would ...
Sunday, 08 January 12
THARPAK CONSORTIUM FORMED TO DEVELOP MEGA ENERGY COMPLEX IN SINDH PROVINCE, PAKISTAN
Press Release: On January 5th, TharPak, LLC met with officials of the Embassy of Pakistan in Washington DC to introduce and announce the formation o ...
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- Agrawal Coal Company - India
- Indika Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Antam Resourcindo - Indonesia
- Electricity Authority, New Zealand
- Manunggal Multi Energi - Indonesia
- Dalmia Cement Bharat India
- Minerals Council of Australia
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- White Energy Company Limited
- Trasteel International SA, Italy
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Kapuas Tunggal Persada - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- Indonesian Coal Mining Association
- Maheswari Brothers Coal Limited - India
- Bhushan Steel Limited - India
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Madhucon Powers Ltd - India
- Renaissance Capital - South Africa
- Oldendorff Carriers - Singapore
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Orica Mining Services - Indonesia
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Independent Power Producers Association of India
- McConnell Dowell - Australia
- Carbofer General Trading SA - India
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Parry Sugars Refinery, India
- Wilmar Investment Holdings
- Central Java Power - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Sakthi Sugars Limited - India
- Chamber of Mines of South Africa
- Toyota Tsusho Corporation, Japan
- Romanian Commodities Exchange
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Kartika Selabumi Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- PTC India Limited - India
- CNBM International Corporation - China
- Globalindo Alam Lestari - Indonesia
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Generating Authority of Thailand
- Metalloyd Limited - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Kepco SPC Power Corporation, Philippines
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Bhoruka Overseas - Indonesia
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Central Electricity Authority - India
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- Bayan Resources Tbk. - Indonesia
- Kideco Jaya Agung - Indonesia
- AsiaOL BioFuels Corp., Philippines
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Jindal Steel & Power Ltd - India
- Attock Cement Pakistan Limited
- Kobexindo Tractors - Indoneisa
- Ambuja Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Economic Council, Georgia
- Parliament of New Zealand
- Leighton Contractors Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Iligan Light & Power Inc, Philippines
- Vizag Seaport Private Limited - India
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- PNOC Exploration Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Wood Mackenzie - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indogreen Group - Indonesia
- Posco Energy - South Korea
- Essar Steel Hazira Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Riau Bara Harum - Indonesia
- Global Coal Blending Company Limited - Australia
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Makarim & Taira - Indonesia
- Rio Tinto Coal - Australia
- Timah Investasi Mineral - Indoneisa
- Karbindo Abesyapradhi - Indoneisa
- Uttam Galva Steels Limited - India
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Larsen & Toubro Limited - India
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Barasentosa Lestari - Indonesia
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Mintek Dendrill Indonesia
- Anglo American - United Kingdom
- Lanco Infratech Ltd - India
- Sindya Power Generating Company Private Ltd
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Standard Chartered Bank - UAE
- SMC Global Power, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- TeaM Sual Corporation - Philippines
- New Zealand Coal & Carbon
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Simpson Spence & Young - Indonesia
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Jaiprakash Power Ventures ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Australian Commodity Traders Exchange
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- The Treasury - Australian Government
- IEA Clean Coal Centre - UK
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Coal and Oil Company - UAE
- PowerSource Philippines DevCo
- Baramulti Group, Indonesia
- Singapore Mercantile Exchange
- The University of Queensland
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- GN Power Mariveles Coal Plant, Philippines
- Indian Energy Exchange, India
- Siam City Cement - Thailand
- Meralco Power Generation, Philippines
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
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