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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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Friday, 09 November 12
SHIP OWNERS TURN TO SECOND HAND VESSELS, WHICH COME AT ATTRACTIVE PRICES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The attractiveness of modern second hand vessels, which are often priced aggressively can't be ignored by cash-rich ship owners, who are taking adv ...
Thursday, 08 November 12
LARGE ECO SUPRA : INDO - INDIA NOW FIXED AT USD 11K FOR DELIVERY SINGAPORE - FEARNLEYS
Handy
The Atlantic market continues to remain weak with rates further softening on FH. Rates from USG to Feast were around USD 14k and Black Sea to ...
Thursday, 08 November 12
DRY BULK MARKET RETREATS AGAIN ON HIGHER SHIP SUPPLY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
In further evidence of a latest round of dry bulk shipping misery, the industry's benchmark fell for the 11th straight session yesterday, as the in ...
Thursday, 08 November 12
JOIN CHINA STEAM COAL SUPPLY - DEMAND FORUM
Join China Steam Coal Supply-Demand Forum & Visit Shenhua Yudean Zhuhai Port Coal Terminal
Press Release - Organized by CBI BIZ and suppo ...
Wednesday, 07 November 12
NEWBUILDING ORDERING ACTIVITY ON A STEADY PACE PRIOR TO THE END OF THE YEAR - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Newbuilding orders, which to many involved in the shipping industry, are the main reason of today's low freight rates and subsequent financial prob ...
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- Aditya Birla Group - India
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- PNOC Exploration Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- International Coal Ventures Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Indian Energy Exchange, India
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ambuja Cements Ltd - India
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Riau Bara Harum - Indonesia
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Antam Resourcindo - Indonesia
- Bharathi Cement Corporation - India
- Jindal Steel & Power Ltd - India
- Renaissance Capital - South Africa
- The State Trading Corporation of India Ltd
- Meralco Power Generation, Philippines
- Mjunction Services Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Savvy Resources Ltd - HongKong
- SMC Global Power, Philippines
- Price Waterhouse Coopers - Russia
- Semirara Mining Corp, Philippines
- Africa Commodities Group - South Africa
- Orica Australia Pty. Ltd.
- Indo Tambangraya Megah - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- Oldendorff Carriers - Singapore
- Gujarat Mineral Development Corp Ltd - India
- PowerSource Philippines DevCo
- Aboitiz Power Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- Anglo American - United Kingdom
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Interocean Group of Companies - India
- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Manunggal Multi Energi - Indonesia
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- Larsen & Toubro Limited - India
- Metalloyd Limited - United Kingdom
- Rashtriya Ispat Nigam Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Australian Coal Association
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- Bhatia International Limited - India
- Meenaskhi Energy Private Limited - India
- Heidelberg Cement - Germany
- Economic Council, Georgia
- Kalimantan Lumbung Energi - Indonesia
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- Medco Energi Mining Internasional
- ICICI Bank Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Orica Mining Services - Indonesia
- Eastern Energy - Thailand
- Globalindo Alam Lestari - Indonesia
- Uttam Galva Steels Limited - India
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Therma Luzon, Inc, Philippines
- Independent Power Producers Association of India
- Indogreen Group - Indonesia
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
- Makarim & Taira - Indonesia
- Sojitz Corporation - Japan
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Star Paper Mills Limited - India
- Electricity Authority, New Zealand
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Deloitte Consulting - India
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhoruka Overseas - Indonesia
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Latin American Coal - Colombia
- IHS Mccloskey Coal Group - USA
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Sakthi Sugars Limited - India
- Energy Development Corp, Philippines
- Coal and Oil Company - UAE
- Alfred C Toepfer International GmbH - Germany
- Banpu Public Company Limited - Thailand
- Mintek Dendrill Indonesia
- Indonesian Coal Mining Association
- Leighton Contractors Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Bukit Baiduri Energy - Indonesia
- Petron Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Thiess Contractors Indonesia
- Commonwealth Bank - Australia
- Essar Steel Hazira Ltd - India
- Malabar Cements Ltd - India
- Ministry of Mines - Canada
- The Treasury - Australian Government
- Ministry of Transport, Egypt
- AsiaOL BioFuels Corp., Philippines
- Electricity Generating Authority of Thailand
- Bangladesh Power Developement Board
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- Power Finance Corporation Ltd., India
- Holcim Trading Pte Ltd - Singapore
- Intertek Mineral Services - Indonesia
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- Trasteel International SA, Italy
- Neyveli Lignite Corporation Ltd, - India
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- Cement Manufacturers Association - India
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Minerals Council of Australia
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Sical Logistics Limited - India
- Kumho Petrochemical, South Korea
- GVK Power & Infra Limited - India
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Finance - Indonesia
- Formosa Plastics Group - Taiwan
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Bukit Makmur.PT - Indonesia
- MS Steel International - UAE
- Romanian Commodities Exchange
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Agrawal Coal Company - India
- Miang Besar Coal Terminal - Indonesia
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Wilmar Investment Holdings
- Indian Oil Corporation Limited
- New Zealand Coal & Carbon
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
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