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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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Monday, 29 February 16
BALTIC INDEX INCHES UP THIS PAST WEEK AS SMALLER VESSELS LEND SUPPORT
COALspot.com: The freight markets rose slightly this past week.
The Baltic Dry Index (BDI) of dry-bulk shipping freights, a measure of global ...
Monday, 29 February 16
LOSS OF EARNINGS IN THE WAKE OF A COLLISION - GARD
KNOWLEDGE TO ELEVATE
A shipowner’s loss of earnings can form a significant part of a collision claim. Awareness of the ways of calculati ...
Friday, 26 February 16
U.S WEEKLY COAL PRODUCTION UP SLIGHTLY
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 13.4 million shor ...
Thursday, 25 February 16
DRY BULKERS ARE SCRAPPED AT RECORD PACE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The newbuilding market is at a lull these days, as ship owners are focusing on two fronts, getting rid of excess dry bulk tonnage and snapping up b ...
Wednesday, 24 February 16
HOW IS THE FUEL MIX FOR U.S. ELECTRICITY GENERATION CHANGING? - EIA
In recent years, there have been changes in the mix of fuels used to generate electricity in the United States. Natural gas and renewable energy so ...
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- Attock Cement Pakistan Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Madhucon Powers Ltd - India
- Sinarmas Energy and Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- Kartika Selabumi Mining - Indonesia
- Indonesian Coal Mining Association
- Central Electricity Authority - India
- Pendopo Energi Batubara - Indonesia
- Romanian Commodities Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Singapore Mercantile Exchange
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Edison Trading Spa - Italy
- Oldendorff Carriers - Singapore
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement - Thailand
- Jindal Steel & Power Ltd - India
- Sical Logistics Limited - India
- Electricity Authority, New Zealand
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Jaiprakash Power Ventures ltd
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- White Energy Company Limited
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- Gujarat Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- Cement Manufacturers Association - India
- Directorate Of Revenue Intelligence - India
- Wood Mackenzie - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Carbofer General Trading SA - India
- Kepco SPC Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Banpu Public Company Limited - Thailand
- GMR Energy Limited - India
- Siam City Cement PLC, Thailand
- Bulk Trading Sa - Switzerland
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Standard Chartered Bank - UAE
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- McConnell Dowell - Australia
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- SMC Global Power, Philippines
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Posco Energy - South Korea
- Maheswari Brothers Coal Limited - India
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- Parry Sugars Refinery, India
- Vizag Seaport Private Limited - India
- Grasim Industreis Ltd - India
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Thai Mozambique Logistica
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- MS Steel International - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- Sindya Power Generating Company Private Ltd
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Bhoruka Overseas - Indonesia
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- GVK Power & Infra Limited - India
- Formosa Plastics Group - Taiwan
- Meenaskhi Energy Private Limited - India
- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Kobexindo Tractors - Indoneisa
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Petron Corporation, Philippines
- Port Waratah Coal Services - Australia
- Essar Steel Hazira Ltd - India
- GAC Shipping (India) Pvt Ltd
- London Commodity Brokers - England
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Baramulti Group, Indonesia
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- ASAPP Information Group - India
- Interocean Group of Companies - India
- Ministry of Mines - Canada
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Georgia Ports Authority, United States
- Australian Commodity Traders Exchange
- Bangladesh Power Developement Board
- Kapuas Tunggal Persada - Indonesia
- Eastern Energy - Thailand
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Iligan Light & Power Inc, Philippines
- Mercator Lines Limited - India
- Borneo Indobara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Renaissance Capital - South Africa
- Salva Resources Pvt Ltd - India
- Malabar Cements Ltd - India
- The Treasury - Australian Government
- Makarim & Taira - Indonesia
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- Merrill Lynch Commodities Europe
- Agrawal Coal Company - India
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Eastern Coal Council - USA
- Marubeni Corporation - India
- Heidelberg Cement - Germany
- Bhushan Steel Limited - India
- Global Business Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Deloitte Consulting - India
- Alfred C Toepfer International GmbH - Germany
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- Videocon Industries ltd - India
- Uttam Galva Steels Limited - India
- TeaM Sual Corporation - Philippines
- Parliament of New Zealand
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- Global Coal Blending Company Limited - Australia
- Sarangani Energy Corporation, Philippines
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