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Wednesday, 07 January 15
FUEL EFFICIENT SHIPS MAKE LESS SENSE IN LOWER BUNKER PRICE MARKET, BUT FUEL COSTS ARE BOUND TO RISE AGAIN
 The shipping industry entered 2015 on mixed emotions, as a relatively buoyant tanker market is met by a rather lackluster dry bulk market. Still, all ship owners will undoubtedly be happy about the fact that the most important cost driving factor, bunker prices, are way down since the same period of last year. In fact, bunker prices are down by more than 30% since last year, as already, by the end of November of 2014, the cost of Heavy Fuel Oil (HFO) in Fujairah had declined to $460 per metric ton from an average of $609/mt over the first six months of 2014. That’s already a reduction of 24% and more has come since then, on the back of constantly declining crude prices.
Given the fact that bunker prices is the biggest factor in a ship’s operating costs, that kind of reduction is rather significant and one which can offset any loss in terms of freight rates. Thus, ship owners can take advantage of this low cost environment and increase their earnings, through the subsequent fall of OPEX. On the other hand, other factor like the new fuel efficient vessels, or slow steaming are coming into play.
According to a recent report from Poten & Partners, “due to the high oil prices over the last couple of years and the anticipation of continuing high prices in the future, owners have made operational adjustments by utilizing slow steaming on the ballast leg of a voyage, while shipyards and engine manufacturers have worked hard to improve the fuel efficiency of new ships. Using a VLCC as the basis for such analysis as the longer voyages benefit relatively more from fuel efficiency, we use a 2007 built VLCC ordered when HFO prices were around $160/MT and a modern 2013 built VLCC. Vessels can vary significantly in their fuel consumption, both through design and over time, dependent on the condition of the hull paint, etc. The modern vessel in our example saves 7 tons/day in laden condition compared to the older design and 4 tons/day while in ballast. For the comparison we will use the typical VLCC round trip voyage from Ras Tanura to Chiba using the current fuel price ($460/MT) and the average price during the first 6 months of 2014 ($609/MT). On the round trip, the fuel efficient vessel saves $116,200 in fuel with current prices and $151,500 in the higher price environment compared to the 2007 built vessel. This represents savings of $2,179/day in time charter equivalent (TCE) at current bunker prices and $2,839 at 2014H1 bunker prices”.
Poten added that “in order to improve TCE, owners have made operational adjustments by slow steaming during the ballast leg of the voyages, and during the laden leg where it was permitted in the charter party. This helps the owners by improving the economics on individual voyages as the fuel cost savings more than offset the longer steaming time when the market is low. An added benefit is that slow steaming reduces the efficiency or the fleet as more vessels are needed to move the same volume of cargo. Earlier in the year, when the rates were lower, slow steaming made more sense as the additional revenue that could be earned during the additional 3.9 ballasting days was lower than the fuel savings. At current market rates and lower bunker prices, this situation has shifted. At least for the vessel and voyage combination in our example, increasing the ballast speed could prove to be beneficial. The situation could be different for other vessels and voyages, but it makes the case for owners to run the numbers. The benefits of fuel efficient designs might have been reduced for now but the investment is for 20+ years and fuel prices are likely to increase again in the future”, the analyst concluded.
Source: Nikos Roussanoglou, Hellenic Shipping News
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Wednesday, 21 January 15
PANAMAX MARKET MOVED SIDEWAYS OVERALL LAST WEEK - INTERMODAL
COALspot.com: The positive sentiment in which the week prior ended carried on through-out last week as well, the end of which marked the first posi ...
Wednesday, 21 January 15
SHIFT IN INTERNATIONAL COAL TRADE TO THE PACIFIC BASIN WILL CONTINUE - IMF
COALspot.com: The shift in international coal trade to the Pacific Basin will continue, IMF said in its latest Medium-Term Coal Market Report.
...
Wednesday, 21 January 15
MARKET INSIGHT - VASSILIS LOGOTHETIS, INTERMODAL
The World Bank has lowered its forecast for global growth in 2015 to 3% down from its previous level of 3.4% amid rising concerns over the economic ...
Wednesday, 21 January 15
THERMAL COAL PRICE OUTLOOK DEPENDENT ON INDIAN IMPORT DEMAND - MATTHEW BOYLE, CRU
COALspot.com: Supply and demand side developments in India will be an important determinant of future market dynamics and prices for thermal coal a ...
Wednesday, 21 January 15
PORT OF NEWCASTLE COAL EXPORTS JUMP 16.19% ON MONTH TO 15.80 MIL MT IN DECEMBER' 14
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port, has shipped $1.136 billi ...
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- Chettinad Cement Corporation Ltd - India
- Anglo American - United Kingdom
- Essar Steel Hazira Ltd - India
- Coalindo Energy - Indonesia
- Global Business Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- Krishnapatnam Port Company Ltd. - India
- Maharashtra Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- Alfred C Toepfer International GmbH - Germany
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Parliament of New Zealand
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Intertek Mineral Services - Indonesia
- The University of Queensland
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- Electricity Generating Authority of Thailand
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Petron Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Medco Energi Mining Internasional
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining and Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Mjunction Services Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- Kaltim Prima Coal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Port Waratah Coal Services - Australia
- Simpson Spence & Young - Indonesia
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Siam City Cement PLC, Thailand
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- SN Aboitiz Power Inc, Philippines
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Siam City Cement - Thailand
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- International Coal Ventures Pvt Ltd - India
- Mercator Lines Limited - India
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Vizag Seaport Private Limited - India
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Grasim Industreis Ltd - India
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- White Energy Company Limited
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Mintek Dendrill Indonesia
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- Planning Commission, India
- Kepco SPC Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Central Java Power - Indonesia
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Antam Resourcindo - Indonesia
- Mercuria Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Bhoruka Overseas - Indonesia
- Gujarat Sidhee Cement - India
- Georgia Ports Authority, United States
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- CIMB Investment Bank - Malaysia
- SMG Consultants - Indonesia
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- Economic Council, Georgia
- McConnell Dowell - Australia
- Salva Resources Pvt Ltd - India
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Lanco Infratech Ltd - India
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Power Finance Corporation Ltd., India
- Binh Thuan Hamico - Vietnam
- Bangladesh Power Developement Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- IHS Mccloskey Coal Group - USA
- Wilmar Investment Holdings
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kartika Selabumi Mining - Indonesia
- Africa Commodities Group - South Africa
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Marubeni Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- Tata Chemicals Ltd - India
- Coastal Gujarat Power Limited - India
- Eastern Energy - Thailand
- Australian Commodity Traders Exchange
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