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