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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, 07 January 12
COAL MARKETS SEE FALLING SPOT PRICES
COALspot.com – World’s thermal coal spot prices have slipped this week..
globalCOAL index in Newcastle Port, benchmark for Asian mark ...
Friday, 06 January 12
COAL INDIA LINKED COAL PRICES WITH INTERNATIONAL COAL PRICES
COALspot.com - Consumers of indigenous coal in India to pay International prices in the future. Coal India has recently moved from UHV pricing mecha ...
Friday, 06 January 12
CLARIDEN GLOBAL BRINGS YOU INDONESIA MINING 2012
Capitalizing Business & Investment Opportunities in an Uncertain Market.Press Release - Clariden Global brings you Indonesia Mining 2012, the dedi ...
Friday, 06 January 12
THE PANAMAX MARKET EXPERIENCED A SLOW START TO 2012 - FEARNLEYS AS
Handy
As usual after a holiday owners and charterers both try to get a feel of the market. An Armada of Supras were talking to ballast towards USG, ...
Thursday, 05 January 12
DRY BULK MARKET TAKES A PLUNGE OF LOW ACTIVITY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As was widely expected the first days of the new year are characterized by significantly low chartering across the board of the dry bulk market, pus ...
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- GN Power Mariveles Coal Plant, Philippines
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Altura Mining Limited, Indonesia
- Global Business Power Corporation, Philippines
- Wilmar Investment Holdings
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- OPG Power Generation Pvt Ltd - India
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Madhucon Powers Ltd - India
- Iligan Light & Power Inc, Philippines
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- Aditya Birla Group - India
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- IEA Clean Coal Centre - UK
- Thiess Contractors Indonesia
- Chettinad Cement Corporation Ltd - India
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Bhushan Steel Limited - India
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Merrill Lynch Commodities Europe
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- Ambuja Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Jaiprakash Power Ventures ltd
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Coalindo Energy - Indonesia
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Malabar Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Kideco Jaya Agung - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Grasim Industreis Ltd - India
- The Treasury - Australian Government
- Sinarmas Energy and Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Planning Commission, India
- Mercator Lines Limited - India
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Parliament of New Zealand
- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Deloitte Consulting - India
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- Chamber of Mines of South Africa
- Electricity Generating Authority of Thailand
- SN Aboitiz Power Inc, Philippines
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- Global Coal Blending Company Limited - Australia
- Sindya Power Generating Company Private Ltd
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- The State Trading Corporation of India Ltd
- Coal and Oil Company - UAE
- Ceylon Electricity Board - Sri Lanka
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- LBH Netherlands Bv - Netherlands
- Alfred C Toepfer International GmbH - Germany
- Intertek Mineral Services - Indonesia
- Indo Tambangraya Megah - Indonesia
- Toyota Tsusho Corporation, Japan
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- PTC India Limited - India
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Makarim & Taira - Indonesia
- Bukit Makmur.PT - Indonesia
- Gujarat Sidhee Cement - India
- Bukit Baiduri Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- ICICI Bank Limited - India
- Orica Australia Pty. Ltd.
- Energy Development Corp, Philippines
- Cement Manufacturers Association - India
- AsiaOL BioFuels Corp., Philippines
- Bulk Trading Sa - Switzerland
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- CNBM International Corporation - China
- Kepco SPC Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Mjunction Services Limited - India
- The University of Queensland
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- IHS Mccloskey Coal Group - USA
- GAC Shipping (India) Pvt Ltd
- Larsen & Toubro Limited - India
- VISA Power Limited - India
- Banpu Public Company Limited - Thailand
- Star Paper Mills Limited - India
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Leighton Contractors Pty Ltd - Australia
- Renaissance Capital - South Africa
- Asmin Koalindo Tuhup - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Latin American Coal - Colombia
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Formosa Plastics Group - Taiwan
- Port Waratah Coal Services - Australia
- Independent Power Producers Association of India
- Australian Coal Association
- Maharashtra Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Agrawal Coal Company - India
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- Romanian Commodities Exchange
- Georgia Ports Authority, United States
- Samtan Co., Ltd - South Korea
- Sree Jayajothi Cements Limited - India
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Meenaskhi Energy Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Power Finance Corporation Ltd., India
- Energy Link Ltd, New Zealand
- India Bulls Power Limited - India
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Bangladesh Power Developement Board
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