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Saturday, 22 February 14
POTEN RAISES THE QUESTION OF ACCURACY IN CALCULATING TANKER FREIGHT RATES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
As the tanker market has grown in complexity over the course of the past few years, the question of whether the traditional methods of assessing rates is still valid. In a recent report, Poten & Partners noted that "the market landscape for crude oil and refined product trades has an inherent element of shifting sand, presenting an organization like the Baltic Exchange with certain challenges. The Baltic Exchange is a centuries-old institution that, among other services, oversees a collective of member shipbrokers who contribute daily freight rate assessments for the wet and dry bulk shipping markets. The freight rates that are collected by the Baltic Exchange are in turn used by both charterers and shipowners, as well as other market participants, as a reliable metric of freight pricing for internal and external financial calculations. Although the birth and death of trade lanes is a natural market evolution, such developments pose questions of relevancy to the Baltic Exchange’s data collection efforts. While the decision to discontinue a certain set of assessments due to perceived obsolescence is objectively simple, it could have broader implications for commercial market participants that have freight contracts dependent on these rates", Poten said.
According to the analyst, the Baltic Dirty Tanker Index. This index is currently comprised of 12 benchmark tanker routes, covering all trade routes and vessel sizes. The BDTI serves as an often cited reference of general health of the tanker market freight rate environment. The Baltic Exchange International Tanker Routes (BITR) are quoted on individual trades for specific cargo sizes for clean and dirty cargoes. For example, the tanker trade with the largest volume worldwide is often referred to as “TD3” or “Tanker Dirty” route number “3” – the voyage basis is from Ras Tanura, Saudi Arabia to Chiba, Japan for 265,000 metric tons of cargo".
In the report, Poten cited an announcement issued on February 5, 2014, which indicated that the Baltic Exchange was suspending their assessments of the routes “TC3_38” and “TD10D”, Aruba – New York for 38,000 metric tons of clean products and Aruba – New York for 50,000 metric tons of fuel oil, respectively. The removal of TD10D would leave the market without a Baltic Exchange instrument for quoting Panamax freight rates.
Poten noted that "in early 2012, Valero shut down their 235,000 bpd Aruba refinery, effectively rendering the voyage basis irrelevant. Historically, the Aruba refinery yielded significant volumes of fuel oil that were exported and often utilized as feedstock in Valero’s Paulsboro, N.J. refinery or for power generation on the US East Coast. The Aruba refinery eventually became structurally disadvantaged compared to US Gulf Coast refineries due to a higher operational cost base; it, like other Caribbean refineries, did not have access to cheap natural gas for power supply. Using reported spot market activity for Panamaxes loading in the Caribbean as a proxy for total market activity, trade volumes from the Caribbean to the US Atlantic Coast have become insignificant. Although still a relatively small market, fixture activity has increased for the Caribbean to US Gulf trade".
It added that "it stands to reason that the Baltic Exchange should continue to assess at least one dirty Panamax trade route. Contracts of Affreightment, or COAs, whereby shipowners and oil companies pre-arrange transportation volumes over a specified period of time, often incorporate some kind of discount to prevailing spot market rates. In exchange for a guaranteed volume of business from an oil company, a shipowner or pool will typically offer a discount to market rates. The Baltic Exchange rate assessments are often referenced in contract language accordingly. The same logic applies for time charters that involve profit sharing elements; shipowners and charterers agree how the profit share will be determined based on independent freight rate assessments.
In the case of TD10D, the Baltic Exchange might consider changing the voyage basis in order to prevent commerical disruption. Load ports for crude export in countries such as Venezuela, Colombia or Trinidad are viable options and the destination should, undoubtedly, be in the US Gulf. The question of what to do with the Aruba to New York (TC3) benchmark for clean products is more black and white. The sizeable increase in refined products exports from the US Gulf to the Caribbean and Latin American countries has displaced imports from the Caribbean. With strong refining economics in the US Gulf, it is difficult to see any reversal in this trend anytime soon", Poten concluded.
source: Nikos Roussanoglou, Hellenic Shipping News
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Tuesday, 04 March 14
AUSTRALIA'S NPC TO SHIP 11.85 MMT OF COAL IN MARCH
COALspot.com: In the week ended 3 March 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, total 3.15 m ...
Tuesday, 04 March 14
HIGHER PRICES AND STEADY FREIGHT RATES LEAD SHIP OWNERS TO TEMPORARILY HALT SECOND HAND VESSEL PURCHASES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
As the dry bulk market has kept on improving, but at a very slow rate, ship owners have elected to take a step back from the flurry of the S&P m ...
Monday, 03 March 14
SUB-BIT INDONESIA COAL SWAP (FOB) FOR AVERAGE Q115 CLOSED AT $60.28, $ 1.70 HIGHER THAN 2Q14
COALspot.com – Indonesia, the world’s largest exporter of the thermal coal's swaps for delivery April - June 2014 slightly corrected do ...
Monday, 03 March 14
API 8 CFR SOUTH CHINA SWAPS: Q4' 2014 DELIVERY CLOSED US$ 1.40 HIGHER COMPARED TO Q2' 2014 DELIVERY
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 deliveries lost 1.90 percent month on month and closed at US$ 76.27 per mt as on Fr ...
Monday, 03 March 14
COSTS LIABILITY PASSING DOWN A CHARTERPARTY CHAIN - SKULD
KNOWLEDGE TO ELEVATE
Provided that charterparties are on back to back terms, and the claim is successful, liability for costs incurred shoul ...
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- MS Steel International - UAE
- Bhushan Steel Limited - India
- Alfred C Toepfer International GmbH - Germany
- Orica Mining Services - Indonesia
- Indian Energy Exchange, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Economic Council, Georgia
- Ind-Barath Power Infra Limited - India
- Aditya Birla Group - India
- Toyota Tsusho Corporation, Japan
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Interocean Group of Companies - India
- GN Power Mariveles Coal Plant, Philippines
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Kalimantan Lumbung Energi - Indonesia
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- ASAPP Information Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- Price Waterhouse Coopers - Russia
- Mercator Lines Limited - India
- Sarangani Energy Corporation, Philippines
- Ambuja Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Development Corp, Philippines
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Tata Chemicals Ltd - India
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- India Bulls Power Limited - India
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Africa Commodities Group - South Africa
- Cigading International Bulk Terminal - Indonesia
- Altura Mining Limited, Indonesia
- The University of Queensland
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Videocon Industries ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Malabar Cements Ltd - India
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- Posco Energy - South Korea
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Mjunction Services Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- McConnell Dowell - Australia
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Semirara Mining and Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- Essar Steel Hazira Ltd - India
- Intertek Mineral Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Sinarmas Energy and Mining - Indonesia
- GMR Energy Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Rio Tinto Coal - Australia
- Central Electricity Authority - India
- Grasim Industreis Ltd - India
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Georgia Ports Authority, United States
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Bharathi Cement Corporation - India
- Electricity Authority, New Zealand
- PetroVietnam Power Coal Import and Supply Company
- Meenaskhi Energy Private Limited - India
- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- South Luzon Thermal Energy Corporation
- Gujarat Sidhee Cement - India
- VISA Power Limited - India
- Energy Link Ltd, New Zealand
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Deloitte Consulting - India
- Chettinad Cement Corporation Ltd - India
- Siam City Cement PLC, Thailand
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- Indika Energy - Indonesia
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Iligan Light & Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Jaiprakash Power Ventures ltd
- CIMB Investment Bank - Malaysia
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- SN Aboitiz Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- Madhucon Powers Ltd - India
- Bulk Trading Sa - Switzerland
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- Tamil Nadu electricity Board
- Asmin Koalindo Tuhup - Indonesia
- SMG Consultants - Indonesia
- OPG Power Generation Pvt Ltd - India
- Commonwealth Bank - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- New Zealand Coal & Carbon
- Indogreen Group - Indonesia
- Eastern Energy - Thailand
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Sree Jayajothi Cements Limited - India
- Globalindo Alam Lestari - Indonesia
- Makarim & Taira - Indonesia
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- Barasentosa Lestari - Indonesia
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Parliament of New Zealand
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Metalloyd Limited - United Kingdom
- Larsen & Toubro Limited - India
- Coastal Gujarat Power Limited - India
- Global Business Power Corporation, Philippines
- Heidelberg Cement - Germany
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Xindia Steels Limited - India
- Maheswari Brothers Coal Limited - India
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