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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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Thursday, 01 January 15
FOB RICHARDS BAY COAL SWAPS CLOSED AT $63.47 PMT ON 26 DEC, SGX DATA SHOWS
COALspot.com: API 4 FOB Richards Bay Coal for delivery Q1' 2015 lost month on month and week over week.
The Q1 swap has lost US$ 3.37 (-4. ...
Wednesday, 31 December 14
COASTAL ENERGEN (C&O) COMMENCES 1ST UNIT OF 1200 MW POWER PLANT IN INDIA
COALspot.com: Coastal Energen, part of the Coal & Oil Group, announced last week the commissioning and commencement of power production at the ...
Wednesday, 31 December 14
SUB-BIT INDONESIA COAL Q2' 15 DELIVERY SWAP CLOSED 1.03% LOWER COMPARED TO AVERAGE Q1' 15 DELIVERY PRICE - SGX
COALspot.com: Indonesian coal swaps for delivery Q1' 2015 lost month on month and gained week over week.
The Q1 swap has lost US$ 1.35 (-2 ...
Tuesday, 30 December 14
SHIP PRICES KEEP ON FALLING, SALES COME EARLY FOR SHIP OWNERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Ship prices keep on falling on the back of low freight rates. According to the latest report from shipbroker Allied Shipbroking, January sales seem ...
Tuesday, 30 December 14
INDIA INC TO BENEFIT AS IMPORTED COAL PRICES SET TO FALL - RAHUL PRITHIANI
The Hindu: India‘s coal import volumes are set to rise by over 30 per cent over the next two years to 214 million tonnes in 2015-16, as domes ...
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- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Ministry of Mines - Canada
- Bahari Cakrawala Sebuku - Indonesia
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Straits Asia Resources Limited - Singapore
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- IEA Clean Coal Centre - UK
- Trasteel International SA, Italy
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- White Energy Company Limited
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- Global Green Power PLC Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Meenaskhi Energy Private Limited - India
- Global Business Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Pendopo Energi Batubara - Indonesia
- LBH Netherlands Bv - Netherlands
- Parry Sugars Refinery, India
- VISA Power Limited - India
- Deloitte Consulting - India
- Attock Cement Pakistan Limited
- GVK Power & Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Bhoruka Overseas - Indonesia
- India Bulls Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- Mintek Dendrill Indonesia
- Kideco Jaya Agung - Indonesia
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Tata Chemicals Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Metalloyd Limited - United Kingdom
- International Coal Ventures Pvt Ltd - India
- Bhushan Steel Limited - India
- Australian Coal Association
- PTC India Limited - India
- Renaissance Capital - South Africa
- Baramulti Group, Indonesia
- South Luzon Thermal Energy Corporation
- Altura Mining Limited, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Siam City Cement - Thailand
- MS Steel International - UAE
- The Treasury - Australian Government
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- TeaM Sual Corporation - Philippines
- New Zealand Coal & Carbon
- Directorate General of MIneral and Coal - Indonesia
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Orica Mining Services - Indonesia
- Oldendorff Carriers - Singapore
- Indonesian Coal Mining Association
- Coal and Oil Company - UAE
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Ministry of Finance - Indonesia
- Posco Energy - South Korea
- Bharathi Cement Corporation - India
- Meralco Power Generation, Philippines
- Manunggal Multi Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Marubeni Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ceylon Electricity Board - Sri Lanka
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Australian Commodity Traders Exchange
- Kohat Cement Company Ltd. - Pakistan
- Riau Bara Harum - Indonesia
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Independent Power Producers Association of India
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- Energy Link Ltd, New Zealand
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- Coalindo Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- The State Trading Corporation of India Ltd
- Siam City Cement PLC, Thailand
- Chamber of Mines of South Africa
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Georgia Ports Authority, United States
- Banpu Public Company Limited - Thailand
- Makarim & Taira - Indonesia
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Agrawal Coal Company - India
- San Jose City I Power Corp, Philippines
- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Petron Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- PNOC Exploration Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Sakthi Sugars Limited - India
- Port Waratah Coal Services - Australia
- Thai Mozambique Logistica
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Energy Development Corp, Philippines
- Malabar Cements Ltd - India
- Interocean Group of Companies - India
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- CIMB Investment Bank - Malaysia
- Ambuja Cements Ltd - India
- Bukit Makmur.PT - Indonesia
- ICICI Bank Limited - India
- Bayan Resources Tbk. - Indonesia
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Goldman Sachs - Singapore
- Central Electricity Authority - India
- Salva Resources Pvt Ltd - India
- Mjunction Services Limited - India
- Heidelberg Cement - Germany
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Parliament of New Zealand
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- Tamil Nadu electricity Board
- Cigading International Bulk Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- OPG Power Generation Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Power Finance Corporation Ltd., India
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- AsiaOL BioFuels Corp., Philippines
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Mercator Lines Limited - India
- Wood Mackenzie - Singapore
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- Eastern Energy - Thailand
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
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