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Wednesday, 18 July 12
SHIP PRICES HAVE FALLEN RAPIDLY THIS YEAR, FAVORING INVESTORS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
 The price for a 5 year old Capesize dry bulk carrier of 172,000 dwt has fallen to about $33,4mil from $42.9 at the end of June 2011, while at end of June 2008 was more than $153 million. This comes to show how much ship prices have fallen in the past few years, which favors new investors in the business. On the other hand, it has caused major headaches among existing ship owners, especially those who invested at the end of the growth cycle, i.e. during the 2007-2008 period. They are now facing huge problems, as they have to provide added collaterals on bank who financed the purchase of those vessels. It's also one of the reasons that banks are reluctant to lend again to the shipping industry, which has been deemed as a risky one, as a result of these past "extravagance" of prices. This has caused some banks to become ship owners these days.
In its latest biannual report, Piraeus-based Golden Destiny noted that second hand vessel prices have plunged during the first half of 2012, mainly in the large sized segments, i.e. the Capesize and the Panamax one. In the panamax market, data from the Baltic Exchange shows that a 5 year old vessel of 52,000 dwt is now worth about $22 million, from $27.5 million at the end of June of 2011, while at the end of June of 2008, the cost for the same ship was more than $75 million.
The report also noted that "in the newbuilding market, similar sharp declines in prices offered by major yards are viewed with investors being more conservative in the placement of new contracts as the instability of the freight market and the challenge of oversupply with upcoming deliveries are creating uncertainty for strong newbuilding investments. A capesize unit of 186,300 dwt reported on order in February this year at Shanghai Waigaoqiao of China for a price in the region of $49,8mil, while at the end of May 2008, a capesize unit of 176,000 dwt had been reported on order at Chinese yard, Zhoushan Jinhawaian for a price about $88,5million" it noted.
This is one of the main reasons why ship owners have invested a fair amount of money in second hand vessel purchases during the first six months of the year, with a total of $6.1 billion for 555 vessels, despite the fall in freight rates. According to the report, second quarter buys were up 24% since the first quarter, while in total the first half of 2012 showed a decline of 9% compared to the same period of 2011, which is a remarkable feat, when considering the global economy uncertainty, the oversupply of tonnage in dry bulk and most other shipping markets and the lack of financing especially in Western Europe.
According to Golden Destiny, dry bulk carriers and tankers accounted for 33% and 26% of the total investment, while containers and liners follow with a 14% and 11% share respectively of the total S&P activity. The bulk carrier, gas tanker and container segments have shown a sharp revival in the volume of vessels reported to have changed hands from the previous quarter with a 31%, 44% and 39% increase respectively. The total amount of money invested for secondhand units this year is lower than the first half of 2011, 43% down, when 610 vessels had been reported to have changed hands at more than $10.7bn, with 103 sale and purchase transactions at an undisclosed sale price. The bulk carrier segment has shown a 31% increase with a total 105 vessels reported to have changed hands during April-June 2012 from 80 vessels in the first three months of the year, while a total of 185 vessels reported sold during the first half of the year at a total invested capital of more than $2.5bn, 11 sale and purchase transactions reported at an undisclosed contract price. “Amid the severe freight market status with capesizes struggling to cover their operating expenses and BDI crawling to remain above 1,000 points, investors haven’t lost their buying appetite by slowing their secondhand purchases only 6% down from the first half of 2011, when 196 bulk carriers changed hands at a total invested capital of more than $3.4billlion. The bulk carrier segment is the segment that posed the least downfall among other vessel categories in the purchase of secondhand units compared with the first half of 2011.
Sources: Nikos Roussanoglou, Hellenic Shipping
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Saturday, 14 July 12
FREIGHT MARKET SEEMS TO BE QUITE VOLATILE - VISTAAR
COALspot.com - The market seems to be quite volatile with the trend changing almost every week. This week all the segments were down except for Pana ...
Friday, 13 July 12
TRANSCOAL MINERGY HAS RECEIVED PMA STATUS IN INDONESIA
COALspot.com - PT Transcoal Minergy (“TCM”) has received official foreign owned company status from the Capital Investment Coordinating ...
Thursday, 12 July 12
LACK OF CAPESIZE DEMAND DRAGS DRY BULK MARKET LOWER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A lack of demand for the larger Capesize dry bulk carriers had as a result the fall of the industry’s benchmark, the BDI (Baltic Dry Index), w ...
Thursday, 12 July 12
RIO TINTO'S SENIOR MANAGEMENT CHANGES
COALspot.com - Rio Tinto is making changes to its senior management team as chief financial officer (CFO) Guy Elliott has decided to retire at the e ...
Thursday, 12 July 12
SOUTHGOBI RESOURCES ANNOUNCES NOTICE OF INVESTMENT DISPUTE FILED AGAINST MONGOLIAN GOVERNMENT
Press Release - SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi”) announced today that SGQ Coal Investment Pte. Ltd., a wholly ...
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- Bulk Trading Sa - Switzerland
- Cigading International Bulk Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Commonwealth Bank - Australia
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Makarim & Taira - Indonesia
- Parry Sugars Refinery, India
- India Bulls Power Limited - India
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Vijayanagar Sugar Pvt Ltd - India
- Petron Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- Asmin Koalindo Tuhup - Indonesia
- OPG Power Generation Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Coalindo Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Xindia Steels Limited - India
- Kobexindo Tractors - Indoneisa
- Malabar Cements Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Banpu Public Company Limited - Thailand
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- CNBM International Corporation - China
- Neyveli Lignite Corporation Ltd, - India
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- PetroVietnam Power Coal Import and Supply Company
- Sinarmas Energy and Mining - Indonesia
- Orica Mining Services - Indonesia
- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Planning Commission, India
- Parliament of New Zealand
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Videocon Industries ltd - India
- MS Steel International - UAE
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- SMG Consultants - Indonesia
- Intertek Mineral Services - Indonesia
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- London Commodity Brokers - England
- Trasteel International SA, Italy
- Rashtriya Ispat Nigam Limited - India
- Salva Resources Pvt Ltd - India
- Wood Mackenzie - Singapore
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- New Zealand Coal & Carbon
- San Jose City I Power Corp, Philippines
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- Indogreen Group - Indonesia
- Ministry of Transport, Egypt
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Central Electricity Authority - India
- Bukit Asam (Persero) Tbk - Indonesia
- Eastern Energy - Thailand
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Kumho Petrochemical, South Korea
- The University of Queensland
- VISA Power Limited - India
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Borneo Indobara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- Energy Link Ltd, New Zealand
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Manunggal Multi Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- South Luzon Thermal Energy Corporation
- Mercuria Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Jindal Steel & Power Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The Treasury - Australian Government
- Savvy Resources Ltd - HongKong
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- McConnell Dowell - Australia
- Singapore Mercantile Exchange
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- SMC Global Power, Philippines
- International Coal Ventures Pvt Ltd - India
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- Karbindo Abesyapradhi - Indoneisa
- Coastal Gujarat Power Limited - India
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Samtan Co., Ltd - South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Independent Power Producers Association of India
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Merrill Lynch Commodities Europe
- Bhatia International Limited - India
- Ministry of Finance - Indonesia
- Mercator Lines Limited - India
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- ASAPP Information Group - India
- Tata Chemicals Ltd - India
- Simpson Spence & Young - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Latin American Coal - Colombia
- PTC India Limited - India
- Interocean Group of Companies - India
- Posco Energy - South Korea
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Antam Resourcindo - Indonesia
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- GMR Energy Limited - India
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Goldman Sachs - Singapore
- Kohat Cement Company Ltd. - Pakistan
- The State Trading Corporation of India Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Development Corp, Philippines
- Romanian Commodities Exchange
- Kideco Jaya Agung - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Deloitte Consulting - India
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Medco Energi Mining Internasional
- Electricity Generating Authority of Thailand
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Globalindo Alam Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- Kalimantan Lumbung Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Pendopo Energi Batubara - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kartika Selabumi Mining - Indonesia
- Sical Logistics Limited - India
- Mjunction Services Limited - India
- Attock Cement Pakistan Limited
- Australian Coal Association
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Meralco Power Generation, Philippines
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