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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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- Rashtriya Ispat Nigam Limited - India
- Global Green Power PLC Corporation, Philippines
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- Edison Trading Spa - Italy
- Star Paper Mills Limited - India
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- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
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- PTC India Limited - India
- Aboitiz Power Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Madhucon Powers Ltd - India
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- ICICI Bank Limited - India
- GMR Energy Limited - India
- Price Waterhouse Coopers - Russia
- The Treasury - Australian Government
- Ministry of Finance - Indonesia
- Economic Council, Georgia
- Coalindo Energy - Indonesia
- Port Waratah Coal Services - Australia
- Samtan Co., Ltd - South Korea
- Marubeni Corporation - India
- Sojitz Corporation - Japan
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- Meralco Power Generation, Philippines
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- Anglo American - United Kingdom
- Planning Commission, India
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- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
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- Bank of Tokyo Mitsubishi UFJ Ltd
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- LBH Netherlands Bv - Netherlands
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- Kumho Petrochemical, South Korea
- Makarim & Taira - Indonesia
- VISA Power Limited - India
- Latin American Coal - Colombia
- Wood Mackenzie - Singapore
- Straits Asia Resources Limited - Singapore
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- European Bulk Services B.V. - Netherlands
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- Orica Mining Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Bhoruka Overseas - Indonesia
- CIMB Investment Bank - Malaysia
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Eastern Energy - Thailand
- Semirara Mining and Power Corporation, Philippines
- Deloitte Consulting - India
- IHS Mccloskey Coal Group - USA
- Alfred C Toepfer International GmbH - Germany
- Bhatia International Limited - India
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- Bangladesh Power Developement Board
- Banpu Public Company Limited - Thailand
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
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- Mjunction Services Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Coal Association
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Merrill Lynch Commodities Europe
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Indian Energy Exchange, India
- SN Aboitiz Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
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- Maheswari Brothers Coal Limited - India
- Central Electricity Authority - India
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Malabar Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Xindia Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Krishnapatnam Port Company Ltd. - India
- Kartika Selabumi Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kaltim Prima Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Australian Commodity Traders Exchange
- San Jose City I Power Corp, Philippines
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bulk Trading Sa - Switzerland
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Altura Mining Limited, Indonesia
- Thiess Contractors Indonesia
- Ministry of Mines - Canada
- IEA Clean Coal Centre - UK
- Power Finance Corporation Ltd., India
- Uttam Galva Steels Limited - India
- Rio Tinto Coal - Australia
- The University of Queensland
- Carbofer General Trading SA - India
- PetroVietnam Power Coal Import and Supply Company
- Billiton Holdings Pty Ltd - Australia
- SMG Consultants - Indonesia
- Cement Manufacturers Association - India
- Gujarat Sidhee Cement - India
- Medco Energi Mining Internasional
- Parliament of New Zealand
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- Sindya Power Generating Company Private Ltd
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Minerals Council of Australia
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- AsiaOL BioFuels Corp., Philippines
- Indo Tambangraya Megah - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Siam City Cement - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
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- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
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