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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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Monday, 19 January 15
FOB RICHARDS BAY COAL SWAP FOR Q4 DELIVERY CLOSED 4% LOWER THAN Q1 DELIVERY PRICE
COALspot.com: API 4 FOB Richards Bay Coal swap for delivery Q1' 2015 declined month over month and week over week.
The Q1 swap has f ...
Sunday, 18 January 15
INDONESIA TO INDIA SUPRAMAX FREIGHT RATES ARE EXPECTED TO REMAIN WEAK NEXT WEEK
COALspot.com: The BDI was up 4.51 pct week on week on Friday 16, January 2015. The BDI closed at 741 points on this Friday after gaining arou ...
Friday, 16 January 15
U.S. WEEKLY COAL PRODUCTION UP 7.3% W-O-W
COALspot.com – United States the world's one of the largest coal producers, produced approximately 18.9 million short tons (mmst) of coal ...
Thursday, 15 January 15
PANAMAX : MARKET CONTINUE ON LOW PACE - FEARNLEYS
Handy
On a general basis we can say that rates are softening in both hemispheres. Although for some specific trades we can see premiums being ach ...
Thursday, 15 January 15
LOW CASH COSTS, GOOD LIQUIDITY HELP ASIAN OIL COMPANIES IN PRICE ROUT - FITCH
Fitch Ratings says that rated oil and gas production companies in Asia can comfortably operate under low oil prices for some time given their gener ...
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- Kalimantan Lumbung Energi - Indonesia
- Parliament of New Zealand
- Sical Logistics Limited - India
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- London Commodity Brokers - England
- Independent Power Producers Association of India
- Jorong Barutama Greston.PT - Indonesia
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Timah Investasi Mineral - Indoneisa
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Energy Development Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Bharathi Cement Corporation - India
- European Bulk Services B.V. - Netherlands
- Metalloyd Limited - United Kingdom
- Indonesian Coal Mining Association
- Indika Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Economic Council, Georgia
- White Energy Company Limited
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Singapore Mercantile Exchange
- Kapuas Tunggal Persada - Indonesia
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Indian Energy Exchange, India
- SMC Global Power, Philippines
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- The University of Queensland
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- Ambuja Cements Ltd - India
- Kaltim Prima Coal - Indonesia
- SMG Consultants - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- Rashtriya Ispat Nigam Limited - India
- MS Steel International - UAE
- Oldendorff Carriers - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Georgia Ports Authority, United States
- GAC Shipping (India) Pvt Ltd
- Gujarat Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- Port Waratah Coal Services - Australia
- LBH Netherlands Bv - Netherlands
- Riau Bara Harum - Indonesia
- Larsen & Toubro Limited - India
- Gujarat Sidhee Cement - India
- Kideco Jaya Agung - Indonesia
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Romanian Commodities Exchange
- Standard Chartered Bank - UAE
- Indian Oil Corporation Limited
- Price Waterhouse Coopers - Russia
- Bhatia International Limited - India
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Xindia Steels Limited - India
- McConnell Dowell - Australia
- CIMB Investment Bank - Malaysia
- Sakthi Sugars Limited - India
- Meenaskhi Energy Private Limited - India
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- Africa Commodities Group - South Africa
- Indogreen Group - Indonesia
- Eastern Energy - Thailand
- Posco Energy - South Korea
- Anglo American - United Kingdom
- ASAPP Information Group - India
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Ministry of Finance - Indonesia
- TeaM Sual Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Agrawal Coal Company - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- Australian Coal Association
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- VISA Power Limited - India
- Petron Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Orica Mining Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Ceylon Electricity Board - Sri Lanka
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Global Green Power PLC Corporation, Philippines
- GMR Energy Limited - India
- Coalindo Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Binh Thuan Hamico - Vietnam
- India Bulls Power Limited - India
- Simpson Spence & Young - Indonesia
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
- Antam Resourcindo - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Attock Cement Pakistan Limited
- Bhoruka Overseas - Indonesia
- Bukit Baiduri Energy - Indonesia
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Asmin Koalindo Tuhup - Indonesia
- Wood Mackenzie - Singapore
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Gujarat Mineral Development Corp Ltd - India
- Mintek Dendrill Indonesia
- Bulk Trading Sa - Switzerland
- Vedanta Resources Plc - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Marubeni Corporation - India
- Tamil Nadu electricity Board
- Kobexindo Tractors - Indoneisa
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Aditya Birla Group - India
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- Electricity Authority, New Zealand
- Cement Manufacturers Association - India
- Bukit Asam (Persero) Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Bukit Makmur.PT - Indonesia
- Orica Australia Pty. Ltd.
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- South Luzon Thermal Energy Corporation
- Bank of Tokyo Mitsubishi UFJ Ltd
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Uttam Galva Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
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