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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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Wednesday, 12 February 14
2013 WAS THE YEAR OF PRIVATE EQUITY FUNDING - TIMOS PAPADIMITRIOU
COALspot.com: People say that money makes the world go round. Well, can it be that it’s the other way around? Is it possible that money needs ...
Tuesday, 11 February 14
INDONESIAN COAL SWAP SHOWS STRONG GROWTH IN 2014 SECOND HALF
COALspot.com – Swaps prices slide for thermal coal loading from Indonesia, the world’s largest exporter of the fuel, according SGX.
T ...
Tuesday, 11 February 14
AUSTRALIA'S NEWCASTLE COAL EXPORTS SLIDE AROUND 15% WEEK ON WEEK
COALspot.com: In the week ended 10 February 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled ...
Tuesday, 11 February 14
SHIP OWNERS INVEST IN 447 NEWBUILDINGS AND SECOND HAND VESSELS DURING JANUARY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Despite a rough start to the year for the dry bulk freight market and lackluster performance from most other shipping sub-segments, ship owners have ...
Monday, 10 February 14
Q1 2015, API 8 CFR SOUTH CHINA COAL SWAP CLOSED AROUND $ 2 HIGHER THAN Q2 14 PRICE
COALspot.com: API 8 CFR South China Coal swaps for average Q2 14 delivery lost 2.61 percent month on month and closed at US$ 77.28 per mt as on Frid ...
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- Medco Energi Mining Internasional
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Oldendorff Carriers - Singapore
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- Metalloyd Limited - United Kingdom
- Makarim & Taira - Indonesia
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Independent Power Producers Association of India
- Xindia Steels Limited - India
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- Straits Asia Resources Limited - Singapore
- The State Trading Corporation of India Ltd
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Chettinad Cement Corporation Ltd - India
- Bangladesh Power Developement Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement PLC, Thailand
- GVK Power & Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Price Waterhouse Coopers - Russia
- Karaikal Port Pvt Ltd - India
- Wilmar Investment Holdings
- Semirara Mining Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- Carbofer General Trading SA - India
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- Timah Investasi Mineral - Indoneisa
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- LBH Netherlands Bv - Netherlands
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Videocon Industries ltd - India
- Bhoruka Overseas - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Krishnapatnam Port Company Ltd. - India
- Dalmia Cement Bharat India
- Miang Besar Coal Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- TeaM Sual Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Merrill Lynch Commodities Europe
- Kepco SPC Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Siam City Cement - Thailand
- Tamil Nadu electricity Board
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kaltim Prima Coal - Indonesia
- The University of Queensland
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Intertek Mineral Services - Indonesia
- Tata Chemicals Ltd - India
- Planning Commission, India
- GN Power Mariveles Coal Plant, Philippines
- London Commodity Brokers - England
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Energy Link Ltd, New Zealand
- Pendopo Energi Batubara - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Heidelberg Cement - Germany
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Coalindo Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- PetroVietnam Power Coal Import and Supply Company
- Eastern Coal Council - USA
- Therma Luzon, Inc, Philippines
- Sojitz Corporation - Japan
- Aboitiz Power Corporation - Philippines
- Larsen & Toubro Limited - India
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Simpson Spence & Young - Indonesia
- Banpu Public Company Limited - Thailand
- Bhatia International Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bharathi Cement Corporation - India
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- Indika Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Manunggal Multi Energi - Indonesia
- San Jose City I Power Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Orica Mining Services - Indonesia
- Deloitte Consulting - India
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- GMR Energy Limited - India
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Agrawal Coal Company - India
- Coastal Gujarat Power Limited - India
- Petron Corporation, Philippines
- Uttam Galva Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indonesian Coal Mining Association
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Latin American Coal - Colombia
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Ambuja Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Singapore Mercantile Exchange
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
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