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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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Tuesday, 20 January 15
INDIA TO SURPASS THE UNITED STATES AND BECOME THE SECOND-LARGEST COAL CONSUMER IN THE WORLD BY 2019 - IMF
COALspot.com: In 2013, coal added more primary energy than any other fuel and was the fastest-growing fossil fuel, enhancing its position as the se ...
Tuesday, 20 January 15
INDONESIAN COAL OUTPUT SEEN RISING, DESPITE FALL IN ITS PRICE
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 declined month on month and week over week, but Indonesian Coal Output Seen Rising. T ...
Tuesday, 20 January 15
NEWCASTLE COAL SWAP FOR Q1' 2015 DELIVERY DECLINED 2.83% M-O-M
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery declined US$ 1.45 per MT (-2.83%) month over month and US$ 0.50 (-0.99%) we ...
Monday, 19 January 15
HBA FALL TO FRESH LOWS; COAL OVERSUPPLY WILL CONTINUE TO PUSH PRICE DOWN
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down Indonesian coal bench mark price this month to US$ 63.84. T ...
Monday, 19 January 15
CFR SOUTH CHINA COAL SWAPS REMAIN WEAK
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery declined US$ 3.37 (-5.63%) per MT month over month and US$ 0.74 (-1.29%) ...
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- CIMB Investment Bank - Malaysia
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- Energy Development Corp, Philippines
- Anglo American - United Kingdom
- Central Electricity Authority - India
- Deloitte Consulting - India
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- Indika Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Romanian Commodities Exchange
- Formosa Plastics Group - Taiwan
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercuria Energy - Indonesia
- Vedanta Resources Plc - India
- Kohat Cement Company Ltd. - Pakistan
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Star Paper Mills Limited - India
- White Energy Company Limited
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Iligan Light & Power Inc, Philippines
- Mercator Lines Limited - India
- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Planning Commission, India
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Parliament of New Zealand
- Leighton Contractors Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Carbofer General Trading SA - India
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Electricity Generating Authority of Thailand
- Essar Steel Hazira Ltd - India
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Malabar Cements Ltd - India
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Indonesian Coal Mining Association
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Grasim Industreis Ltd - India
- Edison Trading Spa - Italy
- Karbindo Abesyapradhi - Indoneisa
- VISA Power Limited - India
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Latin American Coal - Colombia
- Thai Mozambique Logistica
- Kobexindo Tractors - Indoneisa
- Orica Australia Pty. Ltd.
- Indo Tambangraya Megah - Indonesia
- Electricity Authority, New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Coastal Gujarat Power Limited - India
- New Zealand Coal & Carbon
- ASAPP Information Group - India
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- Cement Manufacturers Association - India
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- TNB Fuel Sdn Bhd - Malaysia
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- Tamil Nadu electricity Board
- Timah Investasi Mineral - Indoneisa
- Global Coal Blending Company Limited - Australia
- Minerals Council of Australia
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Semirara Mining and Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Aditya Birla Group - India
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- Indian Oil Corporation Limited
- McConnell Dowell - Australia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Cigading International Bulk Terminal - Indonesia
- Kumho Petrochemical, South Korea
- Madhucon Powers Ltd - India
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- GVK Power & Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Ceylon Electricity Board - Sri Lanka
- Lanco Infratech Ltd - India
- SMG Consultants - Indonesia
- Sical Logistics Limited - India
- MS Steel International - UAE
- Bharathi Cement Corporation - India
- Meralco Power Generation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- The State Trading Corporation of India Ltd
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- Kartika Selabumi Mining - Indonesia
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Eastern Energy - Thailand
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Dalmia Cement Bharat India
- The University of Queensland
- Vizag Seaport Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Bhushan Steel Limited - India
- Port Waratah Coal Services - Australia
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- PTC India Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Posco Energy - South Korea
- Manunggal Multi Energi - Indonesia
- Central Java Power - Indonesia
- Interocean Group of Companies - India
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Medco Energi Mining Internasional
- Bukit Baiduri Energy - Indonesia
- Commonwealth Bank - Australia
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
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