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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, 06 February 14
PANAMAX: FAR EAST IS ALMOST ABSENT AND ATLANTIC ON SLOW STEAM
Handy
Due to ongoing Chinese New Year the market is still quiet. Slowly we can see some fresh coal cargos entering the market with second half Feb/ ...
Wednesday, 05 February 14
DRY BULK MARKET HAS LOST FURTHER GROUND THIS PAST WEEK - INTERMODAL
COALspot.com: The Dry Bulk market has lost further ground this past week as activity ex-Far East disappeared into the Chinese holidays and owners id ...
Wednesday, 05 February 14
MARKET INSIGHT - TASOS PAPADOPOULOS
KNOWLEDGE TO ELEVATE
COALspot.com: Let's take a break from market prospects, numbers, order book etc. and shed some light on the conclusions of ...
Tuesday, 04 February 14
NEWCASTLE PORT'S WEEKLY COAL EXPORTS HIT NEW HIGH OF 3.53 MMT
COALspot.com: In the week ended 3 February 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled ...
Monday, 03 February 14
SUB-BIT INDONESIA COAL SWAP GAINED WEEK ON WEEK
COALspot.com – Swaps prices gained for thermal coal loading from Indonesia, the world’s largest exporter of the fuel, according SGX.
...
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- Semirara Mining Corp, Philippines
- Australian Coal Association
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Gujarat Mineral Development Corp Ltd - India
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bharathi Cement Corporation - India
- Rio Tinto Coal - Australia
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Therma Luzon, Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Romanian Commodities Exchange
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- McConnell Dowell - Australia
- Ind-Barath Power Infra Limited - India
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Jaiprakash Power Ventures ltd
- Maheswari Brothers Coal Limited - India
- Sindya Power Generating Company Private Ltd
- Meenaskhi Energy Private Limited - India
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Aboitiz Power Corporation - Philippines
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Latin American Coal - Colombia
- ASAPP Information Group - India
- Indonesian Coal Mining Association
- Indika Energy - Indonesia
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Grasim Industreis Ltd - India
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Toyota Tsusho Corporation, Japan
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- Standard Chartered Bank - UAE
- PetroVietnam Power Coal Import and Supply Company
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Sree Jayajothi Cements Limited - India
- Ministry of Transport, Egypt
- Meralco Power Generation, Philippines
- New Zealand Coal & Carbon
- PowerSource Philippines DevCo
- Ministry of Finance - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- London Commodity Brokers - England
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Star Paper Mills Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Posco Energy - South Korea
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Ceylon Electricity Board - Sri Lanka
- Bank of Tokyo Mitsubishi UFJ Ltd
- Borneo Indobara - Indonesia
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Mjunction Services Limited - India
- PTC India Limited - India
- Central Java Power - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Price Waterhouse Coopers - Russia
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Essar Steel Hazira Ltd - India
- Energy Link Ltd, New Zealand
- Antam Resourcindo - Indonesia
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- The Treasury - Australian Government
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Thiess Contractors Indonesia
- Africa Commodities Group - South Africa
- Riau Bara Harum - Indonesia
- OPG Power Generation Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- Semirara Mining and Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Renaissance Capital - South Africa
- Oldendorff Carriers - Singapore
- Economic Council, Georgia
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Orica Mining Services - Indonesia
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Port Waratah Coal Services - Australia
- IEA Clean Coal Centre - UK
- GVK Power & Infra Limited - India
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Sical Logistics Limited - India
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Eastern Energy - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Karbindo Abesyapradhi - Indoneisa
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Bhatia International Limited - India
- Metalloyd Limited - United Kingdom
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- Sarangani Energy Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Mercator Lines Limited - India
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Banpu Public Company Limited - Thailand
- LBH Netherlands Bv - Netherlands
- Barasentosa Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- Bukit Baiduri Energy - Indonesia
- Singapore Mercantile Exchange
- Kohat Cement Company Ltd. - Pakistan
- SN Aboitiz Power Inc, Philippines
- Ministry of Mines - Canada
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- Baramulti Group, Indonesia
- Interocean Group of Companies - India
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Commonwealth Bank - Australia
- Kepco SPC Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- San Jose City I Power Corp, Philippines
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Central Electricity Authority - India
- PNOC Exploration Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Pipit Mutiara Jaya. PT, Indonesia
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Indian Energy Exchange, India
- Binh Thuan Hamico - Vietnam
- Attock Cement Pakistan Limited
- Cement Manufacturers Association - India
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Mercuria Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Aditya Birla Group - India
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- Deloitte Consulting - India
- Indian Oil Corporation Limited
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