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Saturday, 28 March 15
THE DRY BULK FLEET AT BREAKING POINT - CLARKSONS
 The severe oversupply in the bulkcarrier fleet has contributed to the current trough in the dry bulk market, putting considerable financial pressure on owners, many of whom are subject to earnings close to operating costs. This has triggered a surge in bulkcarrier demolition since the beginning of 2015. If the current rate of scrapping were to continue, there would be a clear impact on dry bulk fleet growth.
A Surge In Scrapping
Bulker demolition has surged in recent months, due to an oversupplied fleet, cooling global dry bulk trade growth and low vessel earnings. A total of 78 vessels (of a combined 5.9m dwt) were reported scrapped in the first two months of 2015, equivalent to 35% of total bulkcarrier demolition in 2014. Capesize scrapping totalled 3.3m dwt, accounting for 56% of all bulker demolition in the two month period, already equivalent to around 80% of scrapping in the sector last year. The average age at which bulker vessels were scrapped has thus fallen to below 25 years for the first time this century.
How Does It Compare?
The annual record level of bulker demolition was 33.4m dwt in 2012, coinciding with a 30% y-o-y drop in average earnings. While earnings were weak, some market indicators were considerably better than they are today. Seaborne dry bulk trade grew 7% (with 3% projected for this year) and the Baltic Dry Index averaged over 900, far above the record low of 509 reached in February 2015. In the first two months of 2015 overall bulker earnings averaged $6,545/day: around $2,000/day less than the annual average for 2012. It is therefore perhaps no surprise that demolition is surging.
The Uneven Distribution
There are several potential impacts of growth in demolition. The Chinese bulkcarrier fleet shrank in 2014, partly due to the government scrapping subsidy. The subsidy is currently set to end this year and with many of the vessels scrapped in the year to date being Chinese-owned, this could shrink the Chinese fleet further. Also, the faster pace of Handysize demolition in Q1 2015 has led the Handymax sector to consolidate its position as the largest in the dry bulk fleet in terms of vessel numbers.
An Interesting Scenario
One very important impact of the surge is the potential stemming of fleet growth. Total bulker scrapping is currently projected to increase by around 30% y-o-y, to reach 21.2m dwt in 2015. However, at the current pace of scrapping, demolition in Q1 2015 could approach a record level, and in the full year, over 35m dwt of bulkers would be scrapped, more than doubling last year’s total. This could slow growth in the bulkcarrier fleet to around 2.5% y-o-y, which would represent the slowest rate in more than a decade. In this scenario Capesize fleet growth would be limited to around 2-3%.
So demolition is surging, and could approach record levels, altering the make-up of the bulker fleet, in terms of age, the distribution across sectors and owner nationality. And whether records are broken or not this year, the increase in demolition will have a clear impact on the rate of fleet expansion.
Source: Clarksons | Hellenic Shipping News
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Wednesday, 20 May 15
TANKER MARKET INSIGHT - JOHN N. COTZIAS
Since Early October 2014 the tanker market has been experiencing a very positive momentum and has continued its strong performance so far in 2015. ...
Wednesday, 20 May 15
FOB RICHARDS BAY COAL SWAPS GAINED M-O-M, W-O-W
COALspot.com: API4 FOB Richards Bay Coal swap for delivery Q3' 2015 increased month over month and week over week.
The Q3 swap has increas ...
Wednesday, 20 May 15
BUKIT ASAM'S AVERAGE EXPORT PRICE WAS UNDER PRESSURE DURING Q1
COALspot.com: Indonesia’s state owned coal producer saw their profits fall in the first quarter of the year compared to the same period last ...
Wednesday, 20 May 15
IRON ORE PRICES TO REMAIN WEAK ON LOW DEMAND, HIGH OUTPUT - FITCH
Iron ore prices will stay low for several years due to increasing supply, weak demand growth in China and the slower-than-expected closure of high- ...
Tuesday, 19 May 15
KOMIPO IS SEEKING TOTAL 2.34 MMT OF HCV AND LCV COAL FOR 2015 - 2017
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) issued an new tender to buy total 2.34 million Metric Tons (MT) of HCV ...
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- Straits Asia Resources Limited - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- Bangladesh Power Developement Board
- Simpson Spence & Young - Indonesia
- SN Aboitiz Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- SMC Global Power, Philippines
- GMR Energy Limited - India
- Economic Council, Georgia
- Pipit Mutiara Jaya. PT, Indonesia
- Cement Manufacturers Association - India
- Indian Energy Exchange, India
- Tamil Nadu electricity Board
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- McConnell Dowell - Australia
- CNBM International Corporation - China
- VISA Power Limited - India
- Singapore Mercantile Exchange
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Kumho Petrochemical, South Korea
- Xindia Steels Limited - India
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement - Thailand
- Indonesian Coal Mining Association
- Grasim Industreis Ltd - India
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Jindal Steel & Power Ltd - India
- Madhucon Powers Ltd - India
- Ministry of Finance - Indonesia
- Intertek Mineral Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- The Treasury - Australian Government
- Vedanta Resources Plc - India
- The University of Queensland
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Billiton Holdings Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- Eastern Energy - Thailand
- Edison Trading Spa - Italy
- Meenaskhi Energy Private Limited - India
- Karaikal Port Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- IHS Mccloskey Coal Group - USA
- CIMB Investment Bank - Malaysia
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- ASAPP Information Group - India
- Power Finance Corporation Ltd., India
- PNOC Exploration Corporation - Philippines
- Bharathi Cement Corporation - India
- Indo Tambangraya Megah - Indonesia
- Latin American Coal - Colombia
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Vizag Seaport Private Limited - India
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- Petrochimia International Co. Ltd.- Taiwan
- Marubeni Corporation - India
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Dalmia Cement Bharat India
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Orica Mining Services - Indonesia
- Global Business Power Corporation, Philippines
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- LBH Netherlands Bv - Netherlands
- Indian Oil Corporation Limited
- Petron Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Mjunction Services Limited - India
- Kapuas Tunggal Persada - Indonesia
- Posco Energy - South Korea
- India Bulls Power Limited - India
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Uttam Galva Steels Limited - India
- Central Electricity Authority - India
- Riau Bara Harum - Indonesia
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Deloitte Consulting - India
- Globalindo Alam Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- Kalimantan Lumbung Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- Minerals Council of Australia
- Electricity Generating Authority of Thailand
- Interocean Group of Companies - India
- Neyveli Lignite Corporation Ltd, - India
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Planning Commission, India
- Kartika Selabumi Mining - Indonesia
- Energy Development Corp, Philippines
- White Energy Company Limited
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Georgia Ports Authority, United States
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- SMG Consultants - Indonesia
- MS Steel International - UAE
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- The State Trading Corporation of India Ltd
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Ministry of Transport, Egypt
- Merrill Lynch Commodities Europe
- TeaM Sual Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Banpu Public Company Limited - Thailand
- Sarangani Energy Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- Independent Power Producers Association of India
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- AsiaOL BioFuels Corp., Philippines
- Sakthi Sugars Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Wilmar Investment Holdings
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Africa Commodities Group - South Africa
- Makarim & Taira - Indonesia
- Borneo Indobara - Indonesia
- Bhatia International Limited - India
- Alfred C Toepfer International GmbH - Germany
- Directorate General of MIneral and Coal - Indonesia
- Coal and Oil Company - UAE
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