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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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Sunday, 02 March 14
THE FREIGHT MARKET WAS STEADY TO FIRM THIS PAST WEEK - CAPT. REDDY
COALspot.com: The freight market was steady to firm this past week. The BDI was up 7.06 pct and closed at 1258 points and the cape index was also fi ...
Friday, 28 February 14
PTBA TO INCREASE ITS COAL TERMINAL'S LOADING CAPACITY TO 25 MILLION TONS PER ANNUM BY JULY 2014
COALspot.com: PT. Bukit Asam (PTBA), the Indonesian government owned coal miner operates several coal mining units in Sumatera as well as in Kaliman ...
Friday, 28 February 14
U.S PRODUCED 1.9% LESS COAL WEEK ON WEEK
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Friday, 28 February 14
DRY BULK MARKET SLOWLY BUT STEADILY FINDS ITS FOOTING - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market, hit by the low seasonal demand which is a typical characteristic of the first quarter of each year, is beginning to emerge from ...
Thursday, 27 February 14
PANAMAX : MARKET CONTINUED TO DECLINE IN THE ATLANTIC
Handy
The Atlantic handy/supra market experienced a downward trend this week but not a dramatic one. TA rates are down around USD 800 w-o-w lead b ...
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Showing 3826 to 3830 news of total 6871 |
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- Therma Luzon, Inc, Philippines
- IEA Clean Coal Centre - UK
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Trasteel International SA, Italy
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Marubeni Corporation - India
- Barasentosa Lestari - Indonesia
- White Energy Company Limited
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Latin American Coal - Colombia
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bharathi Cement Corporation - India
- Medco Energi Mining Internasional
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Price Waterhouse Coopers - Russia
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Gujarat Sidhee Cement - India
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Antam Resourcindo - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Banpu Public Company Limited - Thailand
- Formosa Plastics Group - Taiwan
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Jorong Barutama Greston.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- Orica Australia Pty. Ltd.
- Siam City Cement PLC, Thailand
- Merrill Lynch Commodities Europe
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- The University of Queensland
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Agrawal Coal Company - India
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- PTC India Limited - India
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Kumho Petrochemical, South Korea
- Mercator Lines Limited - India
- Power Finance Corporation Ltd., India
- GVK Power & Infra Limited - India
- Coalindo Energy - Indonesia
- Lanco Infratech Ltd - India
- The State Trading Corporation of India Ltd
- Eastern Coal Council - USA
- Pendopo Energi Batubara - Indonesia
- Ceylon Electricity Board - Sri Lanka
- GAC Shipping (India) Pvt Ltd
- Dalmia Cement Bharat India
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- European Bulk Services B.V. - Netherlands
- London Commodity Brokers - England
- Coal and Oil Company - UAE
- Bukit Baiduri Energy - Indonesia
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- International Coal Ventures Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Heidelberg Cement - Germany
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Wood Mackenzie - Singapore
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- Bayan Resources Tbk. - Indonesia
- Altura Mining Limited, Indonesia
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Samtan Co., Ltd - South Korea
- Cement Manufacturers Association - India
- Grasim Industreis Ltd - India
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Siam City Cement - Thailand
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- Mercuria Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Eastern Energy - Thailand
- Indika Energy - Indonesia
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Vedanta Resources Plc - India
- Romanian Commodities Exchange
- Indian Energy Exchange, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Iligan Light & Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- CIMB Investment Bank - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- SMC Global Power, Philippines
- TeaM Sual Corporation - Philippines
- Planning Commission, India
- Timah Investasi Mineral - Indoneisa
- Posco Energy - South Korea
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Bhatia International Limited - India
- Toyota Tsusho Corporation, Japan
- Sinarmas Energy and Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Bhoruka Overseas - Indonesia
- Metalloyd Limited - United Kingdom
- Kepco SPC Power Corporation, Philippines
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- VISA Power Limited - India
- The Treasury - Australian Government
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- Sakthi Sugars Limited - India
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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