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Friday, 29 June 12
DRY BULK SHIP OWNERS DOING THEIR MATHS BEFORE PLACING NEWBUILDING ORDERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 With oversupply having plagued the dry bulk shipping fleet since the end of 2011, it’s become ever so evident that placing a newbuilding order is a hard decision nowadays for most ship owners, despite the fact that newbuilding prices are close to their lowest price levels in two decades. Despite this incentive, ship owners have to consider additional factors, such as financing, market conditions and of course freight rates. If they are low, then it’s hard to consider a newbuilding order, since the return on investment will most likely be low, making it more difficult to secure and ultimately paying off a bank loan to finance the newbuilding investment.
In a recent report, Intermodal, aknowledging the fact that timing is crucial in a strongly cyclical and capital intensive market, such as international shipping, examined the case of Kamsarmax dry bulk carriers. In his report, Intermodal’s Panos Tsilingiris, said that for the purpose of the exercise, Intemodal assumed that contracting takes place today and delivery is scheduled after about two years. Furthermore, “the vessel is operated is operated by the buyer for 10 full years (including her second SS/DD) and is sold thereafter. The residual sale price is the resale price of the vessel depreciated over 10 years at 5% p.a. We accept newbuilding prices of $ 26.5 million basis 30/70 payment terms plus $ 500k pre-delivery expenses. With regards to financing, we suppose 60% loan with a fixed interest rate of 5% and 25% balloon, and arrangement/commitment costs of approximately 1.5% of the loan facility. The remaining 40% is financed via equity at 12% p.a. The Opex costs begin with xs $ 6,000/day and are subject to a 2.5% annual appreciation, while we also factor in indicative dry-docking costs. Assuming 365 OPEX days and 350 TC days, the resulting break-even TC rate for the 10-year period is $ 15,959/day” said Tsilingiris.
He added that “at first sight, the above figure may not enthuse speculators when compared to the current freight market in which Kamsarmax bulkers struggle to achieve double-digit yearly TC rates. However, the seasoned shipowner will recognize that this figure is well below the 20-year average, the 10-year average, and the 10-year average after excluding the 2007-2008 bubble years.
Further to the attractive break-even point, the driving force for newbuildings is the high price of bunkers; the ‘eco-type’ designs with their promised (yet generally unproven so far) increased energy efficiency appear tempting to both owners and charterers. Owners might prefer newbuildings over second-hand tonnage since they do not expect a radical peak-up in the dry bulk freight markets during 2012-2013. Moreover, the long operating life of a newbuilding provides some encouragement, if not statistical certainty, that the market will peak up at least once during the vessel’s operating life. There is hope that due to the significantly slower recent contracting of bulker newbuildings and assuming no collapse in demand, the market will return to healthy levels within 2015. Of course, massive orders, something not expected in the short-term given the current market, the tight financing and the global economic uncertainty, would negate any benefit from the lower break-even point of such investments” he said.
As a result, the report from Intermodal concludes that “while the exact figures depend upon the idiosyncrasies of the specific project and ship-owner as well as market conditions (LIBOR, actual TC rates, residual value, etc.), we have shown how the low entrance point for newbuildings renders attractive the break-even rate of such investments. In conclusion, as low shipbuilding prices gradually concur with the maturing of eco-type designs, newbuilding investments appear increasingly attractive” it said.
Source: Nikos Roussanoglou, Hellenic Shipping
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Sunday, 01 July 12
DSP OF SGX ASIACLEAR OTC COAL SWAP'S THIS WEEKS MOVEMENTS SLIGHTLY POSITIVE
COALspot.com - SGX AsiaClear OTC Coal Swaps have recovered slightly this week and Q4 deliveries are also showing positive direction.
SGX’s ...
Saturday, 30 June 12
THE FREIGHT RATES ARE EXPECTED TO BE STEADY TO FIRM NEXT WEEK - VISTAAR SINGAPORE
COALspot.com – The BDI was up by 2.66 pct (up by 26 points) closing at 1,004 points crossing the 1000 point barrier this week.
The c ...
Friday, 29 June 12
INDONESIAN PRODUCERS ARE PLANNING TO CUT PRODUCTION IF COAL PRICES FALL FURTHER
COALspot.com: Indonesia, the world largest multi grade coal exporter, shipped 31.54* million tons of coal in May 2012, compared to 31.86* mill ...
Thursday, 28 June 12
DRY BULK MARKET HIGHER ON CAPESIZE OPTIMISM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market inched a bit higher yesterday, as the BDI (Baltic Dry Index) ended up by 0.71% to 988 points. Most ship types were up, with the ...
Wednesday, 27 June 12
DIRECTORATE GENERAL OF MINERAL AND COAL OF INDONESIA INTRODUCES ON-LINE SYSTEM FOR MINING PRODUCTS EXPORT APPROVAL
COALspot.com - Directorate General of Mineral and Coal of Indonesia has released "Clear and Clean" certificate for another 33 coal miners ...
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- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
- Commonwealth Bank - Australia
- ASAPP Information Group - India
- Ceylon Electricity Board - Sri Lanka
- Billiton Holdings Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- Vedanta Resources Plc - India
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Star Paper Mills Limited - India
- Simpson Spence & Young - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- Kartika Selabumi Mining - Indonesia
- Grasim Industreis Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Indogreen Group - Indonesia
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Oldendorff Carriers - Singapore
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Iligan Light & Power Inc, Philippines
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- New Zealand Coal & Carbon
- Thiess Contractors Indonesia
- Larsen & Toubro Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
- Sarangani Energy Corporation, Philippines
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Directorate General of MIneral and Coal - Indonesia
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Economic Council, Georgia
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- Karbindo Abesyapradhi - Indoneisa
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Siam City Cement PLC, Thailand
- Globalindo Alam Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Agrawal Coal Company - India
- The University of Queensland
- Banpu Public Company Limited - Thailand
- The State Trading Corporation of India Ltd
- Global Business Power Corporation, Philippines
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Eastern Coal Council - USA
- Attock Cement Pakistan Limited
- Bahari Cakrawala Sebuku - Indonesia
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Madhucon Powers Ltd - India
- CNBM International Corporation - China
- GVK Power & Infra Limited - India
- India Bulls Power Limited - India
- Australian Coal Association
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- IHS Mccloskey Coal Group - USA
- South Luzon Thermal Energy Corporation
- Riau Bara Harum - Indonesia
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- McConnell Dowell - Australia
- Chamber of Mines of South Africa
- Mjunction Services Limited - India
- Meralco Power Generation, Philippines
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- ICICI Bank Limited - India
- Aboitiz Power Corporation - Philippines
- Australian Commodity Traders Exchange
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Petron Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Makarim & Taira - Indonesia
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Central Electricity Authority - India
- Coal and Oil Company - UAE
- Medco Energi Mining Internasional
- Indian Energy Exchange, India
- Metalloyd Limited - United Kingdom
- Salva Resources Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Kobexindo Tractors - Indoneisa
- Wilmar Investment Holdings
- Bhushan Steel Limited - India
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- Holcim Trading Pte Ltd - Singapore
- Savvy Resources Ltd - HongKong
- Maharashtra Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Independent Power Producers Association of India
- Lanco Infratech Ltd - India
- Parry Sugars Refinery, India
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Goldman Sachs - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Bukit Baiduri Energy - Indonesia
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Central Java Power - Indonesia
- Jindal Steel & Power Ltd - India
- Mercator Lines Limited - India
- Deloitte Consulting - India
- Thai Mozambique Logistica
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhatia International Limited - India
- Coalindo Energy - Indonesia
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Kumho Petrochemical, South Korea
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Orica Australia Pty. Ltd.
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- GAC Shipping (India) Pvt Ltd
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Rio Tinto Coal - Australia
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- Latin American Coal - Colombia
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Xindia Steels Limited - India
- Pendopo Energi Batubara - Indonesia
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