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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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Thursday, 20 February 14
SUPRAMAX: IN ASIA IS IMPROVING SIGNIFICANTLY AND TURNED FROM APS TO DOP MARKET
Handy
The activity is back in the market after Chinese holidays. Supramax in Asia is improving significantly and turned from APS to DOP market. We ...
Wednesday, 19 February 14
NEWCASTLE PORT SHIPPED 30% MORE COAL WEEK ON WEEK
COALspot.com: In the week ended 17 February 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled ...
Tuesday, 18 February 14
PERUVIAN HIGH COMMISSIONER FOR MINING AFFAIRS WILL BE KEY NOTE SPEAKER AT THE COLOMBIAN COAL CONFERENCE 2014
Press Release: The High Commissioner for Mining Affairs in the Presidency of the Peruvian Council of Ministers, General (R) Daniel Urresti Elera, ha ...
Monday, 17 February 14
US COAL PRODUCTION IN 2013 FELL TO ITS LOWEST LEVEL IN 20 YEARS
COALspot.com: U.S coal production for 2013 totaled an estimated 996 million short tons (MMst), 21 MMst (2%) lower than in 2012. It is the first time ...
Monday, 17 February 14
Q1 2015 COAL SWAPS CLOSED $ 2.21 HIGHER THAN Q2 2014 SWAPS
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 delivery lost 3.16 percent month on month and closed at US$ 76.12 per mt as o ...
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- ICICI Bank Limited - India
- Orica Australia Pty. Ltd.
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Interocean Group of Companies - India
- Global Coal Blending Company Limited - Australia
- Jorong Barutama Greston.PT - Indonesia
- Intertek Mineral Services - Indonesia
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Carbofer General Trading SA - India
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Deloitte Consulting - India
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- Goldman Sachs - Singapore
- Mercuria Energy - Indonesia
- Thiess Contractors Indonesia
- Parliament of New Zealand
- Mercator Lines Limited - India
- Anglo American - United Kingdom
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Georgia Ports Authority, United States
- Tata Chemicals Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Electricity Authority, New Zealand
- Marubeni Corporation - India
- Orica Mining Services - Indonesia
- SMG Consultants - Indonesia
- Indo Tambangraya Megah - Indonesia
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parry Sugars Refinery, India
- Agrawal Coal Company - India
- Sinarmas Energy and Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- White Energy Company Limited
- Indika Energy - Indonesia
- Economic Council, Georgia
- Straits Asia Resources Limited - Singapore
- International Coal Ventures Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- Asmin Koalindo Tuhup - Indonesia
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Romanian Commodities Exchange
- IHS Mccloskey Coal Group - USA
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Jindal Steel & Power Ltd - India
- GAC Shipping (India) Pvt Ltd
- Bukit Makmur.PT - Indonesia
- IEA Clean Coal Centre - UK
- Simpson Spence & Young - Indonesia
- Latin American Coal - Colombia
- Manunggal Multi Energi - Indonesia
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Videocon Industries ltd - India
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Samtan Co., Ltd - South Korea
- Independent Power Producers Association of India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- Malabar Cements Ltd - India
- Karaikal Port Pvt Ltd - India
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- Aditya Birla Group - India
- Sakthi Sugars Limited - India
- TeaM Sual Corporation - Philippines
- Attock Cement Pakistan Limited
- Central Electricity Authority - India
- India Bulls Power Limited - India
- Indonesian Coal Mining Association
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Timah Investasi Mineral - Indoneisa
- Australian Commodity Traders Exchange
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- Vijayanagar Sugar Pvt Ltd - India
- SMC Global Power, Philippines
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- McConnell Dowell - Australia
- Miang Besar Coal Terminal - Indonesia
- Eastern Coal Council - USA
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Lanco Infratech Ltd - India
- Kepco SPC Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Edison Trading Spa - Italy
- The State Trading Corporation of India Ltd
- Ambuja Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Electricity Generating Authority of Thailand
- Gujarat Sidhee Cement - India
- Planning Commission, India
- Australian Coal Association
- Gujarat Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Central Java Power - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Wilmar Investment Holdings
- Sindya Power Generating Company Private Ltd
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Sical Logistics Limited - India
- Barasentosa Lestari - Indonesia
- South Luzon Thermal Energy Corporation
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- The University of Queensland
- CIMB Investment Bank - Malaysia
- Makarim & Taira - Indonesia
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- Oldendorff Carriers - Singapore
- Jaiprakash Power Ventures ltd
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PTC India Limited - India
- Trasteel International SA, Italy
- Gujarat Mineral Development Corp Ltd - India
- GVK Power & Infra Limited - India
- GMR Energy Limited - India
- Singapore Mercantile Exchange
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- Ministry of Mines - Canada
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
- Standard Chartered Bank - UAE
- Vizag Seaport Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bulk Trading Sa - Switzerland
- Bhushan Steel Limited - India
- Coastal Gujarat Power Limited - India
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
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