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Tuesday, 14 March 17
ORDERBOOK-TO-FEET RATIO DECREASING; THE FREIGHT MARKET IMPROVING
 It seems as though the renewed optimism that has arisen from the recent upward trends being noted in the freight market, the dry bulk market has been set alight, said Allied Shipping in its latest weekly report.
According to George Lazaridis Head of Market Research & Asset Valuations of Allied, there has been a growing bullish vibe being felt for several months now in this sector, generated by the successive decreases being seen in the orderbook-to-fleet ratio during the course of the past year and all indicators in the freight market pointing to an improved balance. He further noted that the order book to fleet ratio for the dry bulk segment as a whole has now dropped to 7.72%, the lowest figure we have seen in over two decades now. This plays an important role in dissipating concerns over the glut in tonnage supply that we have seen in the market, though this is only half the picture. During the course of 2016, many viewed the excessively low earnings being a directly caused by the excessive number of new buildings being delivered. Having witnessed both the drop in the order book and at the same time a considerable improvement in freight rates, one can easily make the presumption that the supply-demand balance in the market is improving and at a fairly good pace. During the course of 2017, freight rates have held at levels well above what we were seeing back in 2016 and even 2015, while the recent rally that boosted the Baltic Dry Index to above 1,000 points before the start of the grain season in the Atlantic, has only re-enforced the bullish views that have been held by many in this regard.
George Lazaridis further said, it is no surprise therefore that we have seen buyers quickly flocking back into the secondhand market with fears that they will “lose” the opportunities that are still present in the market. Despite the fact that prices have on average risen by around 50% since the low levels of March 2016, asset prices can still be considered to be fairly competitive compared to what we have seen historically since the late 90’s. As such and with earnings now providing the promise of better returns and positive cash flows for new purchases, you can see that there is excess possibility for further price gains to be noted over the coming months. What’s more is that during the time period where we faced some of the biggest difficulties in the freight market, newbuilding prices continued to hold at abnormally high levels compared to equivalent periods in the past. As such secondhand asset prices are at an even higher the normal discount against what it costs to construct a similar vessel. This leaves the conclusion that if earnings continue to stay at “good” levels it will be hard to see similarly low price levels in the future for similarly aged vessels.
All these conclusions are based on the assumption that we have reached a balance in the market and that demand will continue to grow at least at its current momentum, allowing for a continual improvement in the freight market, said George Lazaridis.
This is a fairly big if however, especially if you take a closer look at the volatility being noted in the commodity markets and the general uncertainty being played out in many of those economies that play a vital role in seaborne trade. Further shocks could derail this balance and bring another round of “pains”. Although this does need to be of concern, it seems that even if these negative scenarios play out their consequences to the market would be more minor and short-term then what similar events have caused in the recent past. As such one can’t blame those optimists out there and given the relatively lower risks that are in view, there are fair grounds to claim that opportunities are now much better than most that we have come by in the past 5 years.
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Friday, 27 January 17
U.S WEEKLY COAL OUTPUT RISES FOR THIRD STRAIGHT WEEK
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.8 million short ton ...
Wednesday, 25 January 17
MARKET INSIGHT - KONSTANTINOS KAKAVITSAS
Remember that old but classic song called “Destination Unknown”? Well that is where the oil market is heading right now. The song made ...
Tuesday, 24 January 17
MARKET UPDATE - ALLIED
This week at the World Economic Forum in the Swiss resort of Davos we had a historic first via the attendance and speech given by China’s pre ...
Monday, 23 January 17
THE PORT OF NEWCASTLE SHIPPED $AU 15.279 BILLION WORTH OF 161.399 MILLION TONS OF COAL IN 2016
COALspot.com: The Port of Newcastle, Australia’s major trading ports and the world’s largest coal export port has shipped $AU 1,453.1 M ...
Monday, 23 January 17
THE FREIGHT MARKET DID NOT CHANGE MUCH AND WAS ALMOST AT SAME LEVELS AS LAST WEEK
COALspot.com: The Freight market did not change much and was almost at same levels as last week.
The Baltic Exchange, tracking rates for ships ...
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- McConnell Dowell - Australia
- Thai Mozambique Logistica
- Indo Tambangraya Megah - Indonesia
- Cement Manufacturers Association - India
- Parliament of New Zealand
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- Makarim & Taira - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Australian Coal Association
- Ministry of Mines - Canada
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- The Treasury - Australian Government
- Posco Energy - South Korea
- MS Steel International - UAE
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Lanco Infratech Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asmin Koalindo Tuhup - Indonesia
- Maheswari Brothers Coal Limited - India
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- The State Trading Corporation of India Ltd
- ICICI Bank Limited - India
- Bayan Resources Tbk. - Indonesia
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Global Coal Blending Company Limited - Australia
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- Leighton Contractors Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Star Paper Mills Limited - India
- Dalmia Cement Bharat India
- Chettinad Cement Corporation Ltd - India
- Siam City Cement - Thailand
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Mercuria Energy - Indonesia
- Marubeni Corporation - India
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- PNOC Exploration Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Indian Oil Corporation Limited
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Interocean Group of Companies - India
- Semirara Mining and Power Corporation, Philippines
- ASAPP Information Group - India
- Price Waterhouse Coopers - Russia
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Kapuas Tunggal Persada - Indonesia
- Indonesian Coal Mining Association
- Siam City Cement PLC, Thailand
- Metalloyd Limited - United Kingdom
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Wilmar Investment Holdings
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Meenaskhi Energy Private Limited - India
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Karaikal Port Pvt Ltd - India
- Barasentosa Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- PTC India Limited - India
- Carbofer General Trading SA - India
- Holcim Trading Pte Ltd - Singapore
- Orica Australia Pty. Ltd.
- Binh Thuan Hamico - Vietnam
- Chamber of Mines of South Africa
- Mercator Lines Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- New Zealand Coal & Carbon
- Gujarat Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Economic Council, Georgia
- Commonwealth Bank - Australia
- Electricity Authority, New Zealand
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- Central Java Power - Indonesia
- Timah Investasi Mineral - Indoneisa
- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- Indian Energy Exchange, India
- Intertek Mineral Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Sakthi Sugars Limited - India
- Petron Corporation, Philippines
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- Neyveli Lignite Corporation Ltd, - India
- SN Aboitiz Power Inc, Philippines
- Coal and Oil Company - UAE
- Alfred C Toepfer International GmbH - Germany
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Essar Steel Hazira Ltd - India
- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Sarangani Energy Corporation, Philippines
- Singapore Mercantile Exchange
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- Kideco Jaya Agung - Indonesia
- Toyota Tsusho Corporation, Japan
- International Coal Ventures Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Tamil Nadu electricity Board
- Mjunction Services Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- LBH Netherlands Bv - Netherlands
- San Jose City I Power Corp, Philippines
- Kepco SPC Power Corporation, Philippines
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- TeaM Sual Corporation - Philippines
- Planning Commission, India
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sree Jayajothi Cements Limited - India
- Eastern Energy - Thailand
- Globalindo Alam Lestari - Indonesia
- Energy Development Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
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