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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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- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Cigading International Bulk Terminal - Indonesia
- Posco Energy - South Korea
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Mercuria Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- SN Aboitiz Power Inc, Philippines
- Eastern Coal Council - USA
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement PLC, Thailand
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Oldendorff Carriers - Singapore
- PowerSource Philippines DevCo
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Uttam Galva Steels Limited - India
- Ministry of Finance - Indonesia
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
- Directorate Of Revenue Intelligence - India
- Petron Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Heidelberg Cement - Germany
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- Chamber of Mines of South Africa
- Marubeni Corporation - India
- CNBM International Corporation - China
- Carbofer General Trading SA - India
- Power Finance Corporation Ltd., India
- Australian Coal Association
- Savvy Resources Ltd - HongKong
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Africa Commodities Group - South Africa
- Global Green Power PLC Corporation, Philippines
- The State Trading Corporation of India Ltd
- Ministry of Mines - Canada
- Jaiprakash Power Ventures ltd
- Anglo American - United Kingdom
- MS Steel International - UAE
- South Luzon Thermal Energy Corporation
- Medco Energi Mining Internasional
- Mjunction Services Limited - India
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Directorate General of MIneral and Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Central Java Power - Indonesia
- Commonwealth Bank - Australia
- Kaltim Prima Coal - Indonesia
- Agrawal Coal Company - India
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- Samtan Co., Ltd - South Korea
- Pendopo Energi Batubara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Meralco Power Generation, Philippines
- Meenaskhi Energy Private Limited - India
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Pipit Mutiara Jaya. PT, Indonesia
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- TNB Fuel Sdn Bhd - Malaysia
- PNOC Exploration Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- Parry Sugars Refinery, India
- Tamil Nadu electricity Board
- New Zealand Coal & Carbon
- Wilmar Investment Holdings
- Global Coal Blending Company Limited - Australia
- Makarim & Taira - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Orica Australia Pty. Ltd.
- Essar Steel Hazira Ltd - India
- Sical Logistics Limited - India
- Trasteel International SA, Italy
- Leighton Contractors Pty Ltd - Australia
- Mercator Lines Limited - India
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Siam City Cement - Thailand
- Kobexindo Tractors - Indoneisa
- GVK Power & Infra Limited - India
- Bukit Makmur.PT - Indonesia
- IEA Clean Coal Centre - UK
- Lanco Infratech Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Planning Commission, India
- ICICI Bank Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Aboitiz Power Corporation - Philippines
- Tata Chemicals Ltd - India
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Aditya Birla Group - India
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Indian Oil Corporation Limited
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Chettinad Cement Corporation Ltd - India
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- CIMB Investment Bank - Malaysia
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- AsiaOL BioFuels Corp., Philippines
- Bhoruka Overseas - Indonesia
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- International Coal Ventures Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Binh Thuan Hamico - Vietnam
- Alfred C Toepfer International GmbH - Germany
- Wood Mackenzie - Singapore
- Barasentosa Lestari - Indonesia
- Larsen & Toubro Limited - India
- Standard Chartered Bank - UAE
- Indian Energy Exchange, India
- Straits Asia Resources Limited - Singapore
- Deloitte Consulting - India
- Energy Link Ltd, New Zealand
- Bangladesh Power Developement Board
- Ambuja Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indika Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- The Treasury - Australian Government
- McConnell Dowell - Australia
- Krishnapatnam Port Company Ltd. - India
- Xindia Steels Limited - India
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Thiess Contractors Indonesia
- IHS Mccloskey Coal Group - USA
- Karbindo Abesyapradhi - Indoneisa
- European Bulk Services B.V. - Netherlands
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