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Saturday, 03 November 12
DEMOLITION IS THE KEY FOR DRY BULK SHIPPING'S RECOVERY SAYS SHIPBROKER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
 With the number of new building deliveries so far in 2012 already having surpassed the total of 2011, it's more than clear that the dry bulk sector needs more than record demolition activity in order to compensate for the additional tonnage. In other words, older vessels will have to exit the world's fleet in a faster rate, otherwise they will end up competing with their newer counterparts for the same cargoes. According to a recent report from shipbroker Intermodal, more than 1,000 dry bulk carriers have already been delivered since the start of 2012, with over 85 million tons of deadweight capacity and there's two more months until the end of 2012.
According to Intermodal's Theodore Ntalakos, "demolition remains the only alternative for vintage tonnage especially for the bigger vessels. More than 25m tons dwt of dry tonnage have seen the way to the scrapyards, making 2012 another record year in demolition. If we look at demolition versus new deliveries, almost 400 dry bulk carriers have been scrapped representing around 40% of new deliveries. In terms of deadweight, since the new ships are always bigger, demolition is about 30% of the new building deliveries. Although the numbers are more favorable compared to 2011, in 2012 we have seen economies slowing down or even contracting which no doubt has affected global seaborne trade" he said.
We added that "looking at the ratio (demolition/new deliveries) x100 in terms of dwt and in each sub-sector of the dry fleet we can explain and highlight some findings:
Vessels up to 20,000dwt – Demolition is almost 74% of the tonnage or 93% in terms of dwt indicating that this is a sector where the fleet has remained stable.
+ Handysize – the ratio is 55% hinting both the small orderbook as well as the overaged fleet.
+ Handymax/Supramax – the ratio is 22%, showing the limited scraping compared to the very large Supramax orderbook. This number is up from 11% in 2011, which shows that despite the high utilization of this segment, the fleet needs to grow at a slower pace.
+ Panamax – the ratio is 33%, up from 24% in 2011. The lousy rates sent more ships for demo this year, 6.3m tons went for demolition and 19m tons dwt were delivered.
+ Capesize – another poor year for Capesizes explains the fact that scrapings represent almost 40% of new deliveries" he mentioned.
Concluding his argument, Mr. Ntalakos noted that "it feels like demolition activity this year was more of a necessity, not only because the market has remained depressed, but mainly because the future of the older vessels does not look that bright. No doubt the pressure of the orderbook remains enormous and will continue to strangle the market and when world demand subsides, the demolition alone cannot bring the rates back up. As we reach towards the end of 2012, more vessels are coming and surely more demo activity is expected".
Meanwhile, in terms of dry bulk supply, BIMCO noted in a mid-October report that "while our projections for the fleet growth in percentage have remained somewhat steady most of the year, the flows in and out have been much stronger than foreseen at the start of the year. The hectic delivery pace has surpassed the astonishing level of 10 million DWT a month several times, whilst demolition activity has breached the 3 million DWT a month level numerous times too".
The report also examined what can be deduced from this? "Probably that many shipyards are suffering under an intense lack of cash-flow. Whereas the payment structure of the contracts previously were mostly equally distributed or front-heavy from signing to delivery, the contracts that have been made more recently are likely to be back-end loaded, releasing the biggest chunk of the money to the yards closer to the completion and delivery of the ship. This could be one of many explanations that may eventually cause widespread bankruptcies amongst smaller and privately-held yards in the main shipbuilding nations. The active fleet has grown by 8.8% since the turn of the year, as 964 new ships have now been delivered into a fleet that already stood at 8,901 dry bulk carriers at the start of the year. Fortunately, the pressure of 80 million DWT of brand new capacity being poured into the market has been eased to some extent by 375 over aged vessels being demolished.
Ship owners continuously apply the demolition tool generously in order to improve the bad market conditions by cutting down on the supply side. Demolition activity in India, Bangladesh and Pakistan in particular is strong, with lots of dry bulk tonnage sold for breaking. Following the drop in demolition prices from the top in April prices have now moved sideways at a new lower level that has stuck around for some months now. 25 million DWT has now been demolished during 2012 with more to come, assuming that ship owners continue to be tempted by the recycling price level" it concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Monday, 19 November 12
GOVT PREPARES TO FACE ANOTHER SUIT ON MINING LAW - THE JAKARTA POST
The government is gearing up to face a complaint on the 2009 Mining Law prepared by the same organization that previously brought down upstream oil ...
Monday, 19 November 12
IHS MCCLOSKEY ASIA PACIFIC COAL OUTLOOK CONFERENCE 2012
With the current global oversupply of thermal coal showing no signs of abating and spot prices falling to a two-year low, concerns are growing that ...
Sunday, 18 November 12
INDONESIAN SUB BITUMINOUS COAL SWAPS FOR JANUARY 2013 DELIVERY GAINS 1.29 PERCENT WOW
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for January 2013 delivery gains 1.29 percent WoW and 0.25 percent DoD on Friday, 16 Novembe ...
Saturday, 17 November 12
THE SUPRAMAX FREIGHT RATES FROM INDONESIA TO INDIA ARE EXPECTED TO BE UP NEXT WEEK - VISTAAR
COALspot.com - This week market sentiments ended positive with all the segments ending higher except for handy size which was almost at same levels ...
Saturday, 17 November 12
RECORD DEMOLITION ACTIVITY SEEKS TO CURB TONNAGE OVERSUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
This year will prove to be another record-breaker in terms of scrapping of older vessels across all shipping segments, as the equally feverish pace ...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Siam City Cement - Thailand
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Sojitz Corporation - Japan
- Central Java Power - Indonesia
- Borneo Indobara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
- Bhatia International Limited - India
- Rio Tinto Coal - Australia
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Indika Energy - Indonesia
- Planning Commission, India
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Indian Energy Exchange, India
- Cement Manufacturers Association - India
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Banpu Public Company Limited - Thailand
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- Eastern Coal Council - USA
- SN Aboitiz Power Inc, Philippines
- Pendopo Energi Batubara - Indonesia
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Edison Trading Spa - Italy
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Karaikal Port Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- OPG Power Generation Pvt Ltd - India
- Latin American Coal - Colombia
- Toyota Tsusho Corporation, Japan
- Bahari Cakrawala Sebuku - Indonesia
- India Bulls Power Limited - India
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Eastern Energy - Thailand
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Vizag Seaport Private Limited - India
- SMC Global Power, Philippines
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- Kepco SPC Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- PowerSource Philippines DevCo
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Economic Council, Georgia
- Mercuria Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Ministry of Transport, Egypt
- CIMB Investment Bank - Malaysia
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Baramulti Group, Indonesia
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Goldman Sachs - Singapore
- Indonesian Coal Mining Association
- Global Coal Blending Company Limited - Australia
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- The University of Queensland
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- SMG Consultants - Indonesia
- Interocean Group of Companies - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Grasim Industreis Ltd - India
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Mintek Dendrill Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Sakthi Sugars Limited - India
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Manunggal Multi Energi - Indonesia
- Central Electricity Authority - India
- Lanco Infratech Ltd - India
- Metalloyd Limited - United Kingdom
- The Treasury - Australian Government
- Straits Asia Resources Limited - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- Bharathi Cement Corporation - India
- Coalindo Energy - Indonesia
- Africa Commodities Group - South Africa
- International Coal Ventures Pvt Ltd - India
- Xindia Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Trasteel International SA, Italy
- Kalimantan Lumbung Energi - Indonesia
- MS Steel International - UAE
- Directorate General of MIneral and Coal - Indonesia
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Ministry of Finance - Indonesia
- New Zealand Coal & Carbon
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
- Georgia Ports Authority, United States
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Therma Luzon, Inc, Philippines
- Posco Energy - South Korea
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Leighton Contractors Pty Ltd - Australia
- Agrawal Coal Company - India
- Parliament of New Zealand
- Barasentosa Lestari - Indonesia
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- Marubeni Corporation - India
- Global Green Power PLC Corporation, Philippines
- GMR Energy Limited - India
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
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