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Friday, 01 April 16
ASSESSING THE DRY BULK MARKET AT ROCK BOTTOM - CLARKSONS
 While the opening months of the year are typically a weak period for the dry bulk market, the downturn so far this year has been severe. Earnings hit record lows, while asset prices fell sharply. In a bid to reduce their exposure to the depression, bulker owners have demolished and idled increasing volumes of capacity, while contracting activity has stalled. The market appears to have hit the bottom of the cycle.
Depressed Earnings
Over the past decade, bulkcarrier earnings in the January-February period have averaged 15% lower than the levels for the rest of the year, reflecting a seasonal slowdown in dry bulk trade. However, the weakness so far this year has been particularly stark. Average earnings dropped 41% y-o-y in January 2016, before hitting a record low of $3,666/day in February. Similarly, the Baltic Dry Index fell 48% y-o-y to a record low of 290 points in mid-February 2016, while the 1 year benchmark Capesize timecharter rate also slumped to a historical low of $6,025/day at the end of the month. In short, this has been the worst start to the year on record for bulker owners.
Slumping Prices
The depressed dry bulk market conditions and bleak outlook have also seen asset prices reach multi-year lows. The Clarksons Bulkcarrier Secondhand Price Index fell 39% y-o-y to 71 points in January 2016: the lowest level since 1987. By the end of January 2016, a 5 year old Capesize could be purchased for $23m, which was also the lowest level in 29 years. This represented 50% of the guideline Capesize newbuild price ($46m), compared to 67% in January 2015, further highlighting the depression in the market.
Getting Destructive
Collapsing bulker earnings and declining asset prices have exerted severe financial pressure on owners. As such, many have removed large volumes of tonnage from their active fleets. In the first 11 weeks of 2016, 134 bulkcarrier units of a combined 11.1m dwt were scrapped, which when annualised exceeds 52m dwt. Demolition is currently projected to surpass the 2012 record (33.4m dwt) in full year 2016. The total confirmed number of idled or laid-up bulkers has also increased firmly in the past six months, totalling 214 units of a combined 11.2m dwt by mid-March and accounting for around 1.4% of bulkcarrier fleet capacity.
Little Interest In Ordering
Meanwhile, bulker contracting has stalled in the year to date. While orders for 30 Valemaxes are expected to be confirmed this year, in total only 4 bulkcarrier orders of a combined 0.3m dwt were reported in the first two months of the year. This compares to 41 units of a combined 2.8m dwt in the same period in 2015.
So, the chronically imbalanced market fundamentals have seen earnings hit record lows and the market appears to be at the bottom of the cycle. Some might assume that the only way is up, but any real recovery in the dry bulk market is likely to require a significant readjustment of supply and demand trends over a sustained period of time. Overall, the dry bulk market seems in desperate need of this kind of shift to see better days.
Source: Clarksons
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Thursday, 07 April 16
PANAMAX RATES ARE FIRMING IN BOTH HEMISHEPHERES - FEARNLEYS
Capesize
With a great volume our of west Australia, rates were finally moving to upper 3's. and stabilizing towards the middle of the week in ...
Thursday, 07 April 16
BIMCO AND GIIGNL PUBLISH A GROUNDBREAKING VOYAGE CHARTER PARTY FOR LNG TRADE
BIMCO and the International Group of Liquefied Natural Gas Importers (GIIGNL) have today jointly issued the first definitive voyage charter party & ...
Wednesday, 06 April 16
HOW LONG SHIPPING CRISIS WILL BE; WHEN SHOULD OWNERS EXPECT THE BULK CARRIERS TO BECOME PROFITABLE? - INTERMODAL
It is the consensus that dry bulk shipping has been in a crisis for quite some time now. Bulk carrier values are at historical low levels, therefor ...
Tuesday, 05 April 16
DRY BULK REVISITS 1980S LOWS AND FACES UNCERTAIN LONGER TERM OUTLOOK - MSI | HELLENIC SHIPPING NEWS
With the market near bottom, attention is turning to the length of the downturn, the effect on asset values and the impact of broader demand side c ...
Monday, 04 April 16
THE LOADING, AND SUBSEQUENT DISCHARGE, OF UNSAFE NICKEL ORE - ALL TIME TO 'COUNT' - THE STANDARD CLUB
KNOWLEDGE TO ELEVATE
In a recent, published, London arbitration award the English tribunal has held that all time lost as a result of loading, ...
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Showing 2491 to 2495 news of total 6871 |
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- Chettinad Cement Corporation Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Orica Australia Pty. Ltd.
- Kobexindo Tractors - Indoneisa
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Videocon Industries ltd - India
- Grasim Industreis Ltd - India
- Planning Commission, India
- Simpson Spence & Young - Indonesia
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aboitiz Power Corporation - Philippines
- Salva Resources Pvt Ltd - India
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- Siam City Cement PLC, Thailand
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Sindya Power Generating Company Private Ltd
- Romanian Commodities Exchange
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Edison Trading Spa - Italy
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- Electricity Authority, New Zealand
- Standard Chartered Bank - UAE
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- White Energy Company Limited
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kartika Selabumi Mining - Indonesia
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Mercuria Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Mercator Lines Limited - India
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- TeaM Sual Corporation - Philippines
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- Trasteel International SA, Italy
- Eastern Coal Council - USA
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Lanco Infratech Ltd - India
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- CNBM International Corporation - China
- Vedanta Resources Plc - India
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
- Therma Luzon, Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maheswari Brothers Coal Limited - India
- Dalmia Cement Bharat India
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Mintek Dendrill Indonesia
- Iligan Light & Power Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Indogreen Group - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Xindia Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- Bharathi Cement Corporation - India
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- New Zealand Coal & Carbon
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- Deloitte Consulting - India
- Central Electricity Authority - India
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Carbofer General Trading SA - India
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Tamil Nadu electricity Board
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Barasentosa Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Marubeni Corporation - India
- Madhucon Powers Ltd - India
- Coalindo Energy - Indonesia
- Ambuja Cements Ltd - India
- Goldman Sachs - Singapore
- Bhushan Steel Limited - India
- ICICI Bank Limited - India
- Wilmar Investment Holdings
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Uttam Galva Steels Limited - India
- Sinarmas Energy and Mining - Indonesia
- Coal and Oil Company - UAE
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Karaikal Port Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Interocean Group of Companies - India
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- CIMB Investment Bank - Malaysia
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Minerals Council of Australia
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Semirara Mining Corp, Philippines
- PTC India Limited - India
- Holcim Trading Pte Ltd - Singapore
- Altura Mining Limited, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Wood Mackenzie - Singapore
- Chamber of Mines of South Africa
- Central Java Power - Indonesia
- Ministry of Transport, Egypt
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Electricity Generating Authority of Thailand
- Tata Chemicals Ltd - India
- Sakthi Sugars Limited - India
- Indian Energy Exchange, India
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- McConnell Dowell - Australia
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