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Monday, 15 December 14
WILL TANKERS BENEFIT FROM REEMERGENCE OF FLOATING STORAGE PLAYS? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The tanker market has been seeing high freight rates for some time now, riding on the back of low oil prices, which are boosting demand from developing nations, looking to replenish their stockpiles. However, another factor could also emerge, with the return of floating storage plays. According to the latest report from shipbroker Charles R. Weber, “following strong crude price losses during late 2008 and early 2009, the $45 emergence of a steep contango in crude futures markets supported a surge in demand for tankers to service floating storage contracts. By 2010, as the $30 wheels of the global economy improved on a return to strong growth in $15 emerging economies, the contango curve became steep enough to support $0 floating storage sufficiently to consume through much of 1H10 upwards of 10% of the global VLCC fleet. This lead to stronger earnings for the class with knock on effects for smaller tanker counterparts as overall availability levels declined”.
According to the shipbroker, “when crude prices started observing losses early during 2H14, the reemergence $60 of a contangoed futures curve reignited consideration of floating storage, but $45 little has materialized as the S/bbl storage costs consistently forward crude spreads. With the global demand/supply imbalance having extended through $30 2H14, the unwillingness by OPEC (or more specifically: a prominent contingent of OPEC’s membership) to react through supply cuts, recent downward $15 revisions by key oil forecasting agencies to demand projections implies that a wider imbalance will materialize during 2015. In its latest report, the IEA notes $0 the imbalance with a corresponding rise in implied steep building up of global crude inventories of relative earnings strength (if below present peak levels). How the crude $80 market develops thereafter will likely dictate the course that tanker earnings take through the remainder of 2015. $60 For its part, support from floating storage remains off the table due to the $40 prohibitively high cost to procure tonnage for such a purpose”.
C.R. Weber noted that “at present assessments, a 6 month floating storage contract off Singapore would equate to $20 a cost ~$5.84/bbl while the spread between Brent’s front month and July contracts stands at $3.72/bbl Further into 2015, however, continued crude price losses which could be inferred by the |EA’s projected widening of the global demand/supply $40 imbalance could lead to crude supply cuts to support prices. Though such a $30 scenario represents a threat to crude tanker demand, a simultaneous correcting of freight markets and steepening of contango curves could create the requisite $20 economics to support floating storage. This would likely place a floor on prospective freight downside while bridging the market to a subsequent $10 rebalancing of crude markets, thus limiting an impact on crude tanker earnings”, the shipbroker concluded.
Meanwhile, in the crude tanker markets this week, in the VLCC segment “rates firmed this week as charterers worked through much of the remainder of the Middle East market’s December program while owners became more bullish in a late reaction to narrower supply/demand fundamentals. Stronger demand in the Middle East market – where the December program has already yielded the most cargoes since the April program and is poised to conclude with the most since the February market – has coincided with a recent demand acceleration in the West Africa market. As both of these areas draw from Middle East positions, the region’s supply/demand positioning is at its narrowest level since 2008 with just 5 surplus positions through end? December dates. With 118 Middle East December cargoes covered to date and the program expected to conclude with 121, the 8 units which remain on position lists to cover the remaining stems appear set to observe premiums to present assessments. How aggressively charterers progress into the January program during the upcoming week will thus likely dictate the direction that rates will take for early January cargoes. Given shortened working weeks during the final two weeks of the year, charterers could reach forward on dates (as the market already is observing) during the upcoming week to cover requirements ahead of the holidays. Against the tight supply/demand profile, this would imply an extending of the present rate rally. Further forward, as the market moves past the first half of the January program and forward fixing windows normalize, the reappearance of units presently on trades to points in the east on Middle East position lists should see rates start to correct”, C.R. Weber concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Friday, 28 November 14
NEW BIMCO CLAUSE AIMS TO REDUCE SUPPLIERS' RELIANCE ON SHIP ARREST FOR CHARTERERS' UNPAID BUNKERS
KNOWLEDGE TO ELEVATE
Ship owners can, on occasion, find themselves in the invidious position of suffering unexpected loss of hire due to a tim ...
Friday, 28 November 14
JSW ENERGY AND GRM RESOURCES JOIN GLOBALCOAL
COALspot.com: globalCOAL® announced yesterday that two new Market Members have joined its online coal trading platform. According globaCOAL&rsq ...
Thursday, 27 November 14
MINING SERVICES TAX SPIKED BY 233% - BISNIS INDONESIA
COALspot.com: The Energy and Mineral Resources Department of Indonesia said the tax contribution from mining services sector in the 3rd Q 2014 ...
Thursday, 27 November 14
PANAMAX : EXPECTATION'S FOR A STRONG END OF YEAR RUSH, DISAPPEAR DAY BY DAY - FEARNLEYS
Handy
“We have experienced a firming market the last couple of weeks. More activity from cargo owners in the Atlantic and less available to ...
Wednesday, 26 November 14
OVERSUPPLY OF TONNAGE PUSHED PANAMAX SEGMENT DOWN FOR ANOTHER WEEK
COALspot.com: The Dry Bulk market managed to reverse its course from the week prior and with the sole exception of the Panamax segment, we witnesse ...
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- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- Cement Manufacturers Association - India
- Kaltim Prima Coal - Indonesia
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Georgia Ports Authority, United States
- Kartika Selabumi Mining - Indonesia
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- PNOC Exploration Corporation - Philippines
- Latin American Coal - Colombia
- Edison Trading Spa - Italy
- Kumho Petrochemical, South Korea
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Kohat Cement Company Ltd. - Pakistan
- Interocean Group of Companies - India
- Binh Thuan Hamico - Vietnam
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Dalmia Cement Bharat India
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Electricity Generating Authority of Thailand
- Timah Investasi Mineral - Indoneisa
- Global Coal Blending Company Limited - Australia
- Manunggal Multi Energi - Indonesia
- SMG Consultants - Indonesia
- Intertek Mineral Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Toyota Tsusho Corporation, Japan
- Global Business Power Corporation, Philippines
- Commonwealth Bank - Australia
- Gujarat Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- PowerSource Philippines DevCo
- IEA Clean Coal Centre - UK
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Heidelberg Cement - Germany
- IHS Mccloskey Coal Group - USA
- Trasteel International SA, Italy
- Kepco SPC Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Larsen & Toubro Limited - India
- Thai Mozambique Logistica
- Parliament of New Zealand
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- New Zealand Coal & Carbon
- Planning Commission, India
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- Merrill Lynch Commodities Europe
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Baramulti Group, Indonesia
- The University of Queensland
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Maharashtra Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Neyveli Lignite Corporation Ltd, - India
- Central Java Power - Indonesia
- Meenaskhi Energy Private Limited - India
- Singapore Mercantile Exchange
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Riau Bara Harum - Indonesia
- CIMB Investment Bank - Malaysia
- Energy Development Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining Corp, Philippines
- Essar Steel Hazira Ltd - India
- ICICI Bank Limited - India
- Aditya Birla Group - India
- Port Waratah Coal Services - Australia
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- LBH Netherlands Bv - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- CNBM International Corporation - China
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Makarim & Taira - Indonesia
- Mintek Dendrill Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Sarangani Energy Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- ASAPP Information Group - India
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Pendopo Energi Batubara - Indonesia
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Gujarat Sidhee Cement - India
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Siam City Cement - Thailand
- Agrawal Coal Company - India
- Miang Besar Coal Terminal - Indonesia
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Mercator Lines Limited - India
- Maheswari Brothers Coal Limited - India
- Wood Mackenzie - Singapore
- Australian Commodity Traders Exchange
- Indonesian Coal Mining Association
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Indogreen Group - Indonesia
- Sree Jayajothi Cements Limited - India
- Ambuja Cements Ltd - India
- Standard Chartered Bank - UAE
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Altura Mining Limited, Indonesia
- OPG Power Generation Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- London Commodity Brokers - England
- Siam City Cement PLC, Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Banpu Public Company Limited - Thailand
- White Energy Company Limited
- Australian Coal Association
- Bangladesh Power Developement Board
- SMC Global Power, Philippines
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- TNB Fuel Sdn Bhd - Malaysia
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- Tamil Nadu electricity Board
- Power Finance Corporation Ltd., India
- Directorate Of Revenue Intelligence - India
- Coastal Gujarat Power Limited - India
- Renaissance Capital - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- International Coal Ventures Pvt Ltd - India
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