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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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Tuesday, 23 October 12
INDONESIA SETS DMO FOR NEXT YEAR
COALspot.com - The Indonesian government has declared the quantity of coal to be supplied to domestic market in 2013 recently under DMO regulation. ...
Sunday, 21 October 12
BUMA HAS PRODUCED 25.0 MILLION TONS OF COAL YEAR TO DATE
COALspot.com - PT Delta Dunia Makmur Tbk., has removed 33.2 million bcm* (+5.5% YoY) of Overburden in September 2012 totaled while coal produc ...
Saturday, 20 October 12
SUPRAMAX FREIGHT EXPECTED TO BE FLAT - VISTAAR
COALspot.com - The shipping market continued to be quite active with quite lot of cargoes fixed for in the cape and panamax sector.
The BDI was ...
Thursday, 18 October 12
INDO-INDIA, LARGE ECO SUPRA FIXED AT USD 11000 - FEARNLEYS AS
Handy
Atlantic market remains quiet due to lack of cargoes and more supply of ships. Rates from Cont to East Med were around USD 14k and Black Sea ...
Tuesday, 16 October 12
DRY BULK FREIGHT RATES COULD IMPROVE ON CHINESE STIMULUS AND WINTER CARGO DEMAND SAYS BIMCO - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
BIMCO has given out its forecast for the next six weeks, in terms of freight rates for dry bulk carriers. According to them, Capesize TC Average rat ...
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- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Petrochimia International Co. Ltd.- Taiwan
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Directorate Of Revenue Intelligence - India
- Jorong Barutama Greston.PT - Indonesia
- Posco Energy - South Korea
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GMR Energy Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Wilmar Investment Holdings
- Alfred C Toepfer International GmbH - Germany
- Coastal Gujarat Power Limited - India
- Mjunction Services Limited - India
- Manunggal Multi Energi - Indonesia
- Videocon Industries ltd - India
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Kartika Selabumi Mining - Indonesia
- Singapore Mercantile Exchange
- SN Aboitiz Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- Energy Development Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Standard Chartered Bank - UAE
- Chamber of Mines of South Africa
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- Australian Coal Association
- Jindal Steel & Power Ltd - India
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Dalmia Cement Bharat India
- AsiaOL BioFuels Corp., Philippines
- Neyveli Lignite Corporation Ltd, - India
- Independent Power Producers Association of India
- TNB Fuel Sdn Bhd - Malaysia
- Larsen & Toubro Limited - India
- Carbofer General Trading SA - India
- Kapuas Tunggal Persada - Indonesia
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Baramulti Group, Indonesia
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Deloitte Consulting - India
- Electricity Generating Authority of Thailand
- Wood Mackenzie - Singapore
- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- Thai Mozambique Logistica
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Sakthi Sugars Limited - India
- Samtan Co., Ltd - South Korea
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Trasteel International SA, Italy
- Borneo Indobara - Indonesia
- Straits Asia Resources Limited - Singapore
- Globalindo Alam Lestari - Indonesia
- Star Paper Mills Limited - India
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- Essar Steel Hazira Ltd - India
- Bhoruka Overseas - Indonesia
- Tata Chemicals Ltd - India
- TeaM Sual Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Romanian Commodities Exchange
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Heidelberg Cement - Germany
- Ministry of Transport, Egypt
- Coal and Oil Company - UAE
- Bukit Baiduri Energy - Indonesia
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Kalimantan Lumbung Energi - Indonesia
- VISA Power Limited - India
- London Commodity Brokers - England
- Central Java Power - Indonesia
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- Economic Council, Georgia
- GAC Shipping (India) Pvt Ltd
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ASAPP Information Group - India
- Bhatia International Limited - India
- Australian Commodity Traders Exchange
- Binh Thuan Hamico - Vietnam
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Aditya Birla Group - India
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Intertek Mineral Services - Indonesia
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- CNBM International Corporation - China
- Aboitiz Power Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- CIMB Investment Bank - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Cement Manufacturers Association - India
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Medco Energi Mining Internasional
- Karbindo Abesyapradhi - Indoneisa
- San Jose City I Power Corp, Philippines
- Meralco Power Generation, Philippines
- India Bulls Power Limited - India
- Attock Cement Pakistan Limited
- Kumho Petrochemical, South Korea
- Orica Mining Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Altura Mining Limited, Indonesia
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Parry Sugars Refinery, India
- Meenaskhi Energy Private Limited - India
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Interocean Group of Companies - India
- Commonwealth Bank - Australia
- PNOC Exploration Corporation - Philippines
- Ministry of Finance - Indonesia
- Global Coal Blending Company Limited - Australia
- SMG Consultants - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Bharathi Cement Corporation - India
- Siam City Cement - Thailand
- Latin American Coal - Colombia
- Pipit Mutiara Jaya. PT, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Gujarat Sidhee Cement - India
- Energy Link Ltd, New Zealand
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Billiton Holdings Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- IEA Clean Coal Centre - UK
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Africa Commodities Group - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Iligan Light & Power Inc, Philippines
- Marubeni Corporation - India
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Grasim Industreis Ltd - India
- Semirara Mining and Power Corporation, Philippines
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