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Monday, 25 January 16
DRY BULK SHIPPING: A MISERABLE START TO A NEW YEAR, WHERE THE MARKET STRUGGLES TO GROW AT ALL - BIMCO
 The global production of steel dropped in 2015 compared to 2014, to a larger extent outside China, as China exported its surplus of steel to destinations across the globe; it is too complex to single out whether this is positive or negative for the seaborne dry bulk transport demand. Going forward, the Chinese steel industry is set to grow its global market share, currently at 50%. Depending on domestic steel consumption in China, use of domestically mined iron ore and profitability in the steel industry, the dry bulk market will be impacted. Chinese steel prices have risen since mid-December and currently, sit at the highest level since October 2015. International iron ore prices could slide further during 2016 as supply exceeds demand.
Since August 2015, dry bulk freight rates have continuously been eroded by deteriorating market conditions. As of 11 January 2016, daily freight rates ranged from USD 3,361 per day for a panamax ship to USD 4,416 per day for a supramax.
The brief lift in capesize rates at the end of November may be explained by the record-high import of relatively cheap iron ore into China. More shipments from Brazil contributed to this lift, squeezing out more domestically produced ore. No less than 96.3 million tons of iron ore were discharged in China in December 2015. This brought the full year total up to 952.7 million tons, 2.2% more than in 2014.
Whereas total transported volumes in 2015 are estimated to have stayed unchanged from 2014, some commodities set new records, while others dropped in significant volume. One of the highlights was soybeans, which also saw a new record high of imports into China in 2015. While soybean import into any other country hasn’t grown for two decades, Chinese imports went from barely anything to 81.7 million tons. China took 9.1 million in December alone, primarily for animal feed.
Despite these record numbers of imported commodities, dry bulk freight rates remain very low. This demonstrates the serious problem of the current market conditions for dry bulk shipping.
Supply
The prices offered to owners who wanted to sell their ship for demolition in the past year were very disappointing. All of the shipbreaking nations have been offered cheap new Chinese steel and accepted the offers. This floored the prices for scrap steel in nations that used to rely on it for around 80% of their steel demand.
Nevertheless, the freight market remains the most significant factor behind the decision to scrap a ship or continue trading. During 2016, BIMCO forecasts that dry bulk shipping capacity of 40 million DWT will be sold for demolition, making 2016 the busiest year on record for shipbreaking.
Despite devastating market conditions in 2015, “only” 30 million DWT were demolished. Considering the factors mentioned above, this illustrates that the pool of ready-to-break ships is not vast, but even a modest improvement in the freight rates causes demolition to halt.
Limiting the inflow of new capacity into the market going forward also requires a low level of new orders to be placed. In that sense, 1.4 million DWT of new capacity ordered during Q4-2015 is just what is needed. For 2015 as a whole, 17.7 million DWT was ordered. The lowest amount since 2001. Hopefully, 2016 will see even lower dry bulk tonnage being ordered.
For 2016, BIMCO expects new deliveries of 50 million DWT despite extensive postponements, delays and rescheduling. On record for scheduled deliveries, Clarksons report 92 million DWT for 2016. BIMCO assess that 40% of the scheduled deliveries will be delayed by one year. Moreover, the majority of the capacity will be delivered in first half of the year.
The distribution of new capacity is likely to remain unchanged from 2015. In round numbers that mean: 40% of the new capacity will be delivered into the capesize segment, 20% into panamax, 30 % into handymax and 10% into the handysize segment.
Outlook
If the CISA (China Iron & Steel Assoc.) forecast for a drop in steel production from 806 million tons to 783 million tons in China becomes reality, less iron ore is needed. Depending on the required mix of domestic/imported ore, shipping will be affected. China remains the key driver of the dry bulk market, for better or worse. Volumes are still huge but growth rates are likely to be very low and probably negative for some commodities.
BIMCO forecasts coal imports into both India and China will go down in 2016, following the trend of 2015.Volume losses into India in 2015 were not originally predicted. This went against a multiyear growth trend over the previous years. But, the domestic coal production rose on the back of some political decisions, which seem to work against dry bulk imports.
2016 is also likely to see a return of India to the iron ore export market – something that will be a positive for seaborne demand if market share is taken from Australian exporters, but a negative if it limits Brazilian Asia-bound exports.
For the coming months: January-April, BIMCO expects transported volumes to diminish as they traditionally do from the fourth quarter to the first. This increases a fundamental imbalance as the delivery of new ships in recent years has followed the opposite pattern. That is more new ships are being delivered early in a new year rather than late in the year just about to end, achieving the newest “year of built” for the record. As we move into the second quarter the downward pressure should ease somewhat.
BIMCO remains worried about the sustainability of freight rates in 2016. The demand side seems unable to buoy profits as both Chinese and Indian growth cools off and the rest of the world is still importing smaller volumes than before the financial crisis of 2008.
A new record of shipbreaking volumes in 2016 could limit fleet growth to just 10 million DWT, so in fact “all we need” is an increase in transported volumes to around 60 million tons to balance out the inflow. As little as this may seem, growing from a base of 4,700 million tons – it can prove to be a high bar to jump before we start eating into the significant oversupply of ships.
Source: BIMCO
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Wednesday, 13 January 16
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
Going through the second week of 2016 we could easily argue that at this point there are no visible signs of an imminent recovery in the Dry Bulk m ...
Wednesday, 13 January 16
IRON ORE IMPASSE - A FAILED CLAIM FOR CONVERSION - CLYDE & CO
KNOWLEDGE TO ELEVATE
In the recent case of the “Bao Yue”, the English High Court found that the bill of lading holder was liable t ...
Tuesday, 12 January 16
5700 GAR COAL FOR DELIVERY WITHIN Q1 FELL 0.91% WEEK OVER WEEK
COALspot.com: Average 5000 GAR coal index of Indonesian origin moved South direction week over week to averaging $39.96 per ton on last Friday, acc ...
Monday, 11 January 16
PORT OF NEWCASTLE SHIPPED 20% MORE COAL IN DECEMBER 2015; AVERAGE SELLING PRICE DECLINE 3.43%
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port has shipped $1.129 billio ...
Sunday, 10 January 16
LNG BUNKERING IN ASIA: FUELING A PROMISING FUTURE? - REED SMITH
The requirement of a mandatory reduction of sulphur content in bunker fuel proposed by the International Maritime Organisation (IMO) poses a challe ...
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Showing 2611 to 2615 news of total 6871 |
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- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- European Bulk Services B.V. - Netherlands
- The University of Queensland
- Kumho Petrochemical, South Korea
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- London Commodity Brokers - England
- Price Waterhouse Coopers - Russia
- Semirara Mining and Power Corporation, Philippines
- Australian Coal Association
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Economic Council, Georgia
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Finance - Indonesia
- Merrill Lynch Commodities Europe
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Australia Pty. Ltd.
- Barasentosa Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- VISA Power Limited - India
- Simpson Spence & Young - Indonesia
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- Orica Mining Services - Indonesia
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- McConnell Dowell - Australia
- Indonesian Coal Mining Association
- Deloitte Consulting - India
- GN Power Mariveles Coal Plant, Philippines
- GVK Power & Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Indogreen Group - Indonesia
- Essar Steel Hazira Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- Mjunction Services Limited - India
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- MS Steel International - UAE
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- Kohat Cement Company Ltd. - Pakistan
- Minerals Council of Australia
- Independent Power Producers Association of India
- Samtan Co., Ltd - South Korea
- Bulk Trading Sa - Switzerland
- Romanian Commodities Exchange
- Rashtriya Ispat Nigam Limited - India
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Parliament of New Zealand
- Vijayanagar Sugar Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Formosa Plastics Group - Taiwan
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Therma Luzon, Inc, Philippines
- PTC India Limited - India
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- OPG Power Generation Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Medco Energi Mining Internasional
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Bhoruka Overseas - Indonesia
- TeaM Sual Corporation - Philippines
- Tata Chemicals Ltd - India
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Sical Logistics Limited - India
- Antam Resourcindo - Indonesia
- LBH Netherlands Bv - Netherlands
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Posco Energy - South Korea
- SMC Global Power, Philippines
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- PNOC Exploration Corporation - Philippines
- Thiess Contractors Indonesia
- Bayan Resources Tbk. - Indonesia
- Sakthi Sugars Limited - India
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Bukit Asam (Persero) Tbk - Indonesia
- PowerSource Philippines DevCo
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Iligan Light & Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- GAC Shipping (India) Pvt Ltd
- Madhucon Powers Ltd - India
- Australian Commodity Traders Exchange
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- Wood Mackenzie - Singapore
- Trasteel International SA, Italy
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Parry Sugars Refinery, India
- Goldman Sachs - Singapore
- Manunggal Multi Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Energy Development Corp, Philippines
- Wilmar Investment Holdings
- Metalloyd Limited - United Kingdom
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Chettinad Cement Corporation Ltd - India
- Coastal Gujarat Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Sarangani Energy Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- Siam City Cement - Thailand
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Mintek Dendrill Indonesia
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- GMR Energy Limited - India
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Indo Tambangraya Megah - Indonesia
- Kideco Jaya Agung - Indonesia
- Jindal Steel & Power Ltd - India
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Electricity Authority, New Zealand
- Port Waratah Coal Services - Australia
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
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