We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 30 December 14
U.S WEEKLY COAL PRODUCTION ALMOST FLAT AT -0.2%
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.8 million short tons (mmst) of coal ...
Monday, 29 December 14
CHINESE COAL IMPORTS: REGULATORY RISKS? - CLARKSONS
In recent years, Chinese seaborne coal imports have surged, registering average growth of 67% p.a. between 2009 and 2013 to total 265mt. However, t ...
Monday, 29 December 14
BULK MARKET ENDS YEAR ON SOUR NOTE, SHIPBROKER SEES 'BUMPY ROAD AHEAD' - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
2014 was supposed to be the year that the dry bulk market would stage a comeback and a sustainable one for that matter. However, while for the most ...
Monday, 29 December 14
Q1'15 CFR SOUTH CHINA COAL SWAP CLOSED AT $59.42
COALspot.com: API 8 CFR South China Coal swap for Q1’ 2015 delivery has decreased by US$ 3.51 (-5.58%) month over month and US$ 0.08 (-0.13%) ...
Monday, 29 December 14
SGX'S FOB NEWCASTLE COAL SWAPS IMPROVED W-O-W, LOST M-O-M
COALspot.com: API 5 FOB Newcastle Coal swap for Q1’ 2015 delivery lost US$ 1.44 per MT (-2.73%) month over month and gained US$ 0.36 (+0.71%) ...
|
|
|
Showing 3286 to 3290 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- PowerSource Philippines DevCo
- Cigading International Bulk Terminal - Indonesia
- Chamber of Mines of South Africa
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- GVK Power & Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Kartika Selabumi Mining - Indonesia
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- McConnell Dowell - Australia
- Neyveli Lignite Corporation Ltd, - India
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Ministry of Transport, Egypt
- Formosa Plastics Group - Taiwan
- Altura Mining Limited, Indonesia
- PTC India Limited - India
- Samtan Co., Ltd - South Korea
- Globalindo Alam Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Eastern Coal Council - USA
- Bhushan Steel Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Mjunction Services Limited - India
- Uttam Galva Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Romanian Commodities Exchange
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Sojitz Corporation - Japan
- Meralco Power Generation, Philippines
- Renaissance Capital - South Africa
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- Baramulti Group, Indonesia
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- Sical Logistics Limited - India
- LBH Netherlands Bv - Netherlands
- IEA Clean Coal Centre - UK
- Intertek Mineral Services - Indonesia
- Planning Commission, India
- Agrawal Coal Company - India
- Savvy Resources Ltd - HongKong
- Parliament of New Zealand
- GMR Energy Limited - India
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Heidelberg Cement - Germany
- Indian Energy Exchange, India
- Timah Investasi Mineral - Indoneisa
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Kapuas Tunggal Persada - Indonesia
- Electricity Authority, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
- Aditya Birla Group - India
- Bharathi Cement Corporation - India
- Carbofer General Trading SA - India
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- ICICI Bank Limited - India
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Australian Commodity Traders Exchange
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
- Sarangani Energy Corporation, Philippines
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kideco Jaya Agung - Indonesia
- Salva Resources Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- OPG Power Generation Pvt Ltd - India
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- The University of Queensland
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Central Electricity Authority - India
- Sree Jayajothi Cements Limited - India
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Energy Development Corp, Philippines
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- Economic Council, Georgia
- Meenaskhi Energy Private Limited - India
- Ind-Barath Power Infra Limited - India
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Edison Trading Spa - Italy
- Indogreen Group - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Thai Mozambique Logistica
- Riau Bara Harum - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- ASAPP Information Group - India
- GAC Shipping (India) Pvt Ltd
- Iligan Light & Power Inc, Philippines
- London Commodity Brokers - England
- Gujarat Mineral Development Corp Ltd - India
- South Luzon Thermal Energy Corporation
- Indo Tambangraya Megah - Indonesia
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Metalloyd Limited - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Electricity Generating Authority of Thailand
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Georgia Ports Authority, United States
- Maharashtra Electricity Regulatory Commission - India
- Ambuja Cements Ltd - India
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Videocon Industries ltd - India
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Semirara Mining and Power Corporation, Philippines
- White Energy Company Limited
- VISA Power Limited - India
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Attock Cement Pakistan Limited
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Tamil Nadu electricity Board
- Australian Coal Association
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Petron Corporation, Philippines
- Toyota Tsusho Corporation, Japan
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Merrill Lynch Commodities Europe
- Cement Manufacturers Association - India
- International Coal Ventures Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- New Zealand Coal & Carbon
- Central Java Power - Indonesia
- Therma Luzon, Inc, Philippines
- Barasentosa Lestari - Indonesia
- Ministry of Finance - Indonesia
- SN Aboitiz Power Inc, Philippines
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- Bhoruka Overseas - Indonesia
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- Star Paper Mills Limited - India
|
| |
| |
|
