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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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- Ambuja Cements Ltd - India
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Chamber of Mines of South Africa
- White Energy Company Limited
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- Energy Development Corp, Philippines
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Marubeni Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Mintek Dendrill Indonesia
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- International Coal Ventures Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Miang Besar Coal Terminal - Indonesia
- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- GN Power Mariveles Coal Plant, Philippines
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Sarangani Energy Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Interocean Group of Companies - India
- Energy Link Ltd, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Indonesian Coal Mining Association
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- Thai Mozambique Logistica
- AsiaOL BioFuels Corp., Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- VISA Power Limited - India
- Binh Thuan Hamico - Vietnam
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Indo Tambangraya Megah - Indonesia
- Madhucon Powers Ltd - India
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Star Paper Mills Limited - India
- Billiton Holdings Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Orica Australia Pty. Ltd.
- Goldman Sachs - Singapore
- Leighton Contractors Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Central Java Power - Indonesia
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- Xindia Steels Limited - India
- Barasentosa Lestari - Indonesia
- Coastal Gujarat Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- Aboitiz Power Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Indogreen Group - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Australian Coal Association
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- South Luzon Thermal Energy Corporation
- Georgia Ports Authority, United States
- London Commodity Brokers - England
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- IHS Mccloskey Coal Group - USA
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- Rashtriya Ispat Nigam Limited - India
- Alfred C Toepfer International GmbH - Germany
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Thiess Contractors Indonesia
- Karaikal Port Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Maheswari Brothers Coal Limited - India
- Parliament of New Zealand
- Globalindo Alam Lestari - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- Tata Chemicals Ltd - India
- Ministry of Finance - Indonesia
- Toyota Tsusho Corporation, Japan
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Bhatia International Limited - India
- San Jose City I Power Corp, Philippines
- Bharathi Cement Corporation - India
- PTC India Limited - India
- Holcim Trading Pte Ltd - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- Rio Tinto Coal - Australia
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- The University of Queensland
- Romanian Commodities Exchange
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Deloitte Consulting - India
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Jaiprakash Power Ventures ltd
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Indika Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Trasteel International SA, Italy
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