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Monday, 15 October 12
IT'S STRICTLY COME CHARTERING - CLARKSON RESEARCH SERVICES
 The charter market is a bit of a dance between ship owner and charterer: one leader, one follower; one step, two steps, turn... The dance is symbiotic and if both partners do well the outcome is a successful performance. Ideally, if both parties in a charter agreement do well the result is successful transportation, from which everyone benefits. However, if one partner starts stepping on the toes of the other there is always some pain.
Fascinatin’ Rhythm…
The rhythm of the shipping markets presents its dancers with choices. Do I charter short term or do I fix for longer periods? The answer in part depends on the different rates for the two choices. And, of course, it's also about timing. Our Graph of the Week shows, for a Panamax bulkcarrier, the trends for the two options. The solid line represents the one year time-charter rate and the dotted line the earnings that the vessel would have made for the same period on the spot market. This pas-de-deux is mostly led by the forward curve of spot earnings, with period rates following closely in step.
Come Join the Dance…
As earnings rise and fall, so the numbers on the dance floor change similarly. When rates rose to peaks in 2004-05, 2007 and 2010 so too did the number of fixtures. Conversely, low rates in 2001, 2006, 2009 and now in 2012 have seen fixtures decline.
Numbers were lowest in 2H 2001 when, with timecharter rates under $6,000/day, sometimes only one fixture a month was made. During the super-boom of 2007 almost 50 a month were recorded as rates soared to over $60,000/day. And most recently, in September with rates back down to under $3,000/day only 4 fixtures were concluded.
Reluctant Partners…
The turning points come when owners and charterers become reluctant partners. During 2002-04, 2006-08 and 2009-10 the forward spot curve was higher than for period rates. It was clearly in charterers’ interest to fix period rather than spot and indeed fixtures did increase. It was owners’ toes that were being stepped upon as they lost out on better spot rates.
For a short period in 2005 the roles were reversed and again, in 2008, the forward spot curve fell faster than period rates, giving owners an opportunity. However, in both periods charterers were less willing and the number of fixtures declined sharply. Now, with spot and period rates aligned it is less clear where the benefit lies; the number of fixtures is falling, but where will spot rates go?
Dancing in the Dark…
So, there you have it, owners and charterers can do the moves but they don’t always make the best of partners. Reading the spot market is the key and it appears that charterers have been getting the best of it, but both are really dancing in the dark. The benefits of the long term deal are never guaranteed when the casual excuse me can intercede.
Source: Clarkson Research Services / Hellenic Shipping News
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Thursday, 27 September 12
MINING RE-COMMENCES AT ORPHEUS' B2 EAST KALIMANTAN COAL PROJECT
- B2 project overburden removal completed and coal exposed
- Coal getting has commenced with target production of 30,000tpm
- Orpheus to re ...
Thursday, 27 September 12
HANDY: THE PACIFIC MARKET IS GETTING WEAKER WITH UPCOMING GOLDEN WEEK HOLIDAYS - FEARNLEYS AS
Handy
Yet another week with rates softening in all trades. Especially owners with ships open Continent struggle to find employment paying decent mo ...
Thursday, 27 September 12
DRY BULK MARKET LOSES STEAM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The rise of the BDI (Baltic Dry Index), the dry bulk industry’s benchmark during the course of the previous week, proved to be short-lived, as ...
Wednesday, 26 September 12
NEWBUILDING ORDERING ACTIVITY REMAINS SUBDUED ON GLOBAL MARKET UNCERTAINTY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Newbuilding ordering activity has been on the down side during the past few weeks, a trend also noticeable during the course of the past few days, a ...
Sunday, 23 September 12
AN ANOTHER UNSTABLE WEEK FOR INDONESIAN COAL SWAPS
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for November 2012 delivery lost 1.10 percent and 0.916 percent WOW and DOD respectively ...
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- Uttam Galva Steels Limited - India
- Thai Mozambique Logistica
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- ASAPP Information Group - India
- Parliament of New Zealand
- Siam City Cement PLC, Thailand
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- The University of Queensland
- Australian Commodity Traders Exchange
- Iligan Light & Power Inc, Philippines
- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Riau Bara Harum - Indonesia
- Antam Resourcindo - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Economic Council, Georgia
- Romanian Commodities Exchange
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Kobexindo Tractors - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Carbofer General Trading SA - India
- Medco Energi Mining Internasional
- Rashtriya Ispat Nigam Limited - India
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Planning Commission, India
- Kapuas Tunggal Persada - Indonesia
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- Bhoruka Overseas - Indonesia
- Aboitiz Power Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- Banpu Public Company Limited - Thailand
- Bukit Baiduri Energy - Indonesia
- MS Steel International - UAE
- Gujarat Mineral Development Corp Ltd - India
- Sree Jayajothi Cements Limited - India
- Mjunction Services Limited - India
- San Jose City I Power Corp, Philippines
- Essar Steel Hazira Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ambuja Cements Ltd - India
- India Bulls Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- Electricity Generating Authority of Thailand
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Kaltim Prima Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Indian Oil Corporation Limited
- Metalloyd Limited - United Kingdom
- Star Paper Mills Limited - India
- Global Business Power Corporation, Philippines
- Edison Trading Spa - Italy
- Videocon Industries ltd - India
- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Vedanta Resources Plc - India
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Aditya Birla Group - India
- Indonesian Coal Mining Association
- Coalindo Energy - Indonesia
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Goldman Sachs - Singapore
- Central Java Power - Indonesia
- Tamil Nadu electricity Board
- Wood Mackenzie - Singapore
- Parry Sugars Refinery, India
- Karbindo Abesyapradhi - Indoneisa
- Sical Logistics Limited - India
- LBH Netherlands Bv - Netherlands
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Energy Development Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining and Power Corporation, Philippines
- PTC India Limited - India
- Standard Chartered Bank - UAE
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Power Finance Corporation Ltd., India
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meenaskhi Energy Private Limited - India
- Eastern Energy - Thailand
- Gujarat Sidhee Cement - India
- Holcim Trading Pte Ltd - Singapore
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Alfred C Toepfer International GmbH - Germany
- PowerSource Philippines DevCo
- Timah Investasi Mineral - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- Latin American Coal - Colombia
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- GVK Power & Infra Limited - India
- Mintek Dendrill Indonesia
- Ministry of Finance - Indonesia
- Orica Mining Services - Indonesia
- Barasentosa Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Singapore Mercantile Exchange
- Rio Tinto Coal - Australia
- The State Trading Corporation of India Ltd
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Anglo American - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- IEA Clean Coal Centre - UK
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Bulk Trading Sa - Switzerland
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- AsiaOL BioFuels Corp., Philippines
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Bayan Resources Tbk. - Indonesia
- Posco Energy - South Korea
- Leighton Contractors Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Petron Corporation, Philippines
- Madhucon Powers Ltd - India
- Salva Resources Pvt Ltd - India
- Indian Energy Exchange, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- Bangladesh Power Developement Board
- Formosa Plastics Group - Taiwan
- Pendopo Energi Batubara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Minerals Council of Australia
- Kalimantan Lumbung Energi - Indonesia
- Grasim Industreis Ltd - India
- Marubeni Corporation - India
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