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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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Monday, 10 February 14
SUPRAMAX STILL AT AROUND US$ 5K + BB 50K DELIVERY KALIMANTAN FOR A TRIP TO INDIA - CAPT. REDDY
COALspot.com: The BDI was down by 1.71 pct and closed at 1091 points week ended 7 February 2014. The BDI seemed to reach the bottom as the cape inde ...
Saturday, 08 February 14
U.S PRODUCED 84.5 MMMST OF COAL IN JANUARY; 2.05% UP MONTH ON MONTH, EIA SAYS
COALspot.com – United States the world’s second largest coal producer, produced approximately 18.8 million short tons (mmst) of coal in ...
Friday, 07 February 14
DRY BULK MARKET ON ' REVERSE' MODE DUE TO CHINESE HOLIDAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has kept its uninspiring mood throughout yet another week, with the Baltic Dry Index (BDI) hovering slightly above the 1,000-poi ...
Thursday, 06 February 14
INDONESIA'S BAN ON THE EXPORT OF RAW MINERAL ORES COMES INTO FORCE - INCE & CO
COALspot.com: On 12 January 2014, the ban on the export of unprocessed mineral ores came into effect in Indonesia. This ban enforces the Mining Law ...
Thursday, 06 February 14
THE WORLD LARGEST COAL EXPORTER SHIPPED AROUND 35.90 MMT OF COAL IN DECEMBER 2013
COALspot.com: Indonesia, the world 4th largest coal producer and the Global largest multi grade coal exporter shipped around $2* billion worth ...
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- ASAPP Information Group - India
- Jorong Barutama Greston.PT - Indonesia
- Eastern Coal Council - USA
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Coal Association
- Malabar Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- Sree Jayajothi Cements Limited - India
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
- SN Aboitiz Power Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Samtan Co., Ltd - South Korea
- Indogreen Group - Indonesia
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- Iligan Light & Power Inc, Philippines
- Orica Australia Pty. Ltd.
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- Anglo American - United Kingdom
- Deloitte Consulting - India
- Kaltim Prima Coal - Indonesia
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wilmar Investment Holdings
- Commonwealth Bank - Australia
- San Jose City I Power Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Goldman Sachs - Singapore
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- South Luzon Thermal Energy Corporation
- Borneo Indobara - Indonesia
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Renaissance Capital - South Africa
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- Antam Resourcindo - Indonesia
- Coalindo Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Vizag Seaport Private Limited - India
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Indonesian Coal Mining Association
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Ambuja Cements Ltd - India
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Aboitiz Power Corporation - Philippines
- Bharathi Cement Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- Metalloyd Limited - United Kingdom
- Sojitz Corporation - Japan
- Sindya Power Generating Company Private Ltd
- Makarim & Taira - Indonesia
- Indian Energy Exchange, India
- Semirara Mining Corp, Philippines
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- Planning Commission, India
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Banpu Public Company Limited - Thailand
- VISA Power Limited - India
- Central Java Power - Indonesia
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Electricity Generating Authority of Thailand
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Savvy Resources Ltd - HongKong
- Mjunction Services Limited - India
- Cement Manufacturers Association - India
- Global Green Power PLC Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Kapuas Tunggal Persada - Indonesia
- Ministry of Finance - Indonesia
- Coal and Oil Company - UAE
- Indika Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Link Ltd, New Zealand
- Maheswari Brothers Coal Limited - India
- PetroVietnam Power Coal Import and Supply Company
- CNBM International Corporation - China
- Australian Commodity Traders Exchange
- Directorate Of Revenue Intelligence - India
- Kumho Petrochemical, South Korea
- Star Paper Mills Limited - India
- India Bulls Power Limited - India
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Trasteel International SA, Italy
- Asmin Koalindo Tuhup - Indonesia
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Videocon Industries ltd - India
- Sarangani Energy Corporation, Philippines
- Bhoruka Overseas - Indonesia
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- GVK Power & Infra Limited - India
- ICICI Bank Limited - India
- Standard Chartered Bank - UAE
- Oldendorff Carriers - Singapore
- Gujarat Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Binh Thuan Hamico - Vietnam
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- IEA Clean Coal Centre - UK
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Carbofer General Trading SA - India
- Aditya Birla Group - India
- Agrawal Coal Company - India
- GMR Energy Limited - India
- Straits Asia Resources Limited - Singapore
- Manunggal Multi Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Kideco Jaya Agung - Indonesia
- Rio Tinto Coal - Australia
- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- Jindal Steel & Power Ltd - India
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- CIMB Investment Bank - Malaysia
- Price Waterhouse Coopers - Russia
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- New Zealand Coal & Carbon
- Directorate General of MIneral and Coal - Indonesia
- Intertek Mineral Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Larsen & Toubro Limited - India
- Rashtriya Ispat Nigam Limited - India
- Kepco SPC Power Corporation, Philippines
- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Interocean Group of Companies - India
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Miang Besar Coal Terminal - Indonesia
- Thiess Contractors Indonesia
- Ministry of Transport, Egypt
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Semirara Mining and Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
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