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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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Saturday, 08 September 12
RIO TINTO COMPLETES ACQUISITION OF BHP BILLITON'S INTERESTS IN RICHARDS BAY MINERALS
Rio Tinto has doubled its holding in Richards Bay Minerals (RBM) following the completion of its acquisition of BHP Billiton’s entire inte ...
Friday, 07 September 12
HBA GAINS $ 1.56 PER MT IN SEPTEMBER
COALspot.com - The Indonesian government’s declared coal reference price has gained US$ 1.56 per MT M-o-M. This is the first gain ...
Thursday, 06 September 12
SOME ANCHORED PANAMAX VESSELS WAITING FOR CARGOS TO COME
Handy
According to Fearnleys weekly report, in the smaller segments Fearnleys sees little to no changes since last week. There are still entering s ...
Thursday, 06 September 12
DRY BULK CARRIERS STILL IN HIGH DEMAND AMONG SHIP OWNERS, BUT NEWBUILDING ACTIVITY SLIDES IN AUGUST - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The slide of the dry bulk market this year hasn't abated ship owners' appetite for dry bulk carriers, as evidenced by the steady interest expresse ...
Tuesday, 04 September 12
SHIP OWNERS' COMPETITION LEADS TO TANKER FIXTURES BELOW OPERATING COSTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Ship owners operating in the VLCC tanker markets are increasingly finding it difficult to obtain even breakeven rates for their vessels, as competit ...
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Showing 4586 to 4590 news of total 6871 |
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- Electricity Generating Authority of Thailand
- Mercator Lines Limited - India
- Grasim Industreis Ltd - India
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- Sindya Power Generating Company Private Ltd
- Aditya Birla Group - India
- Videocon Industries ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- CNBM International Corporation - China
- Sinarmas Energy and Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Bukit Makmur.PT - Indonesia
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Power Finance Corporation Ltd., India
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- Indonesian Coal Mining Association
- Savvy Resources Ltd - HongKong
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Singapore Mercantile Exchange
- Heidelberg Cement - Germany
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Mercuria Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Australian Coal Association
- Anglo American - United Kingdom
- The State Trading Corporation of India Ltd
- Chettinad Cement Corporation Ltd - India
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Meralco Power Generation, Philippines
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Star Paper Mills Limited - India
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- The Treasury - Australian Government
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bharathi Cement Corporation - India
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- ICICI Bank Limited - India
- Semirara Mining Corp, Philippines
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- Dalmia Cement Bharat India
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- GMR Energy Limited - India
- Bangladesh Power Developement Board
- GVK Power & Infra Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Wood Mackenzie - Singapore
- Bhatia International Limited - India
- Goldman Sachs - Singapore
- Latin American Coal - Colombia
- Kumho Petrochemical, South Korea
- Intertek Mineral Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Kobexindo Tractors - Indoneisa
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Parliament of New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Mjunction Services Limited - India
- Tata Chemicals Ltd - India
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- SN Aboitiz Power Inc, Philippines
- Agrawal Coal Company - India
- Xindia Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- Energy Link Ltd, New Zealand
- Sakthi Sugars Limited - India
- Directorate Of Revenue Intelligence - India
- Altura Mining Limited, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Economic Council, Georgia
- Toyota Tsusho Corporation, Japan
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Trasteel International SA, Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- Cigading International Bulk Terminal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Coal and Oil Company - UAE
- Riau Bara Harum - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vedanta Resources Plc - India
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Minerals Council of Australia
- Uttam Galva Steels Limited - India
- Eastern Coal Council - USA
- Bulk Trading Sa - Switzerland
- Thai Mozambique Logistica
- PTC India Limited - India
- Thiess Contractors Indonesia
- Global Business Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Madhucon Powers Ltd - India
- Tamil Nadu electricity Board
- Indian Energy Exchange, India
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- ASAPP Information Group - India
- Holcim Trading Pte Ltd - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Independent Power Producers Association of India
- Petrochimia International Co. Ltd.- Taiwan
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- Price Waterhouse Coopers - Russia
- Australian Commodity Traders Exchange
- Barasentosa Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- Globalindo Alam Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Bhoruka Overseas - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Carbofer General Trading SA - India
- Iligan Light & Power Inc, Philippines
- Africa Commodities Group - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Cement Manufacturers Association - India
- SMG Consultants - Indonesia
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Central Electricity Authority - India
- Miang Besar Coal Terminal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
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