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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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Wednesday, 14 December 16
20/20 VISION! - JOHN N. COTZIAS
2020; A year that could be changing shipping. In early November, the International Maritime Organization (IMO) announced that it would set a 0.5% s ...
Tuesday, 13 December 16
THE FREIGHT MARKET MAY WELL BE SHOWING SIGNS OF HEADING FOR ITS DOWNWARD CORRECTIVE PHASE - ALLIED
2016 has been a tough market for dry bulkers and through these difficult earnings, we have seen some of the lowest prices being noted historically ...
Tuesday, 13 December 16
COAL DEMAND GROWTH TO STALL AS APPETITE WANES, ACCORDING TO IEA
Growth in global coal demand will stall over the next five years as the appetite for the fuel wanes and other energy sources gain ground, according ...
Monday, 12 December 16
U.S. WEEKLY COAL PRODUCTION TOTALS 16.3 MMST, UP 7.4% - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.3 million short ton ...
Monday, 12 December 16
INDONESIA TO INDIA FREIGHT RATES ARE EXPECTED TO BE SOFT THIS WEEK
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities decline this past week and ending on a negative note week ...
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- Gujarat Sidhee Cement - India
- Tata Chemicals Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- The University of Queensland
- ICICI Bank Limited - India
- Sical Logistics Limited - India
- VISA Power Limited - India
- Georgia Ports Authority, United States
- Therma Luzon, Inc, Philippines
- GVK Power & Infra Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Indonesian Coal Mining Association
- Bhatia International Limited - India
- Videocon Industries ltd - India
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Electricity Regulatory Commission - India
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Bulk Trading Sa - Switzerland
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Thai Mozambique Logistica
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- Minerals Council of Australia
- Grasim Industreis Ltd - India
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Romanian Commodities Exchange
- Krishnapatnam Port Company Ltd. - India
- GAC Shipping (India) Pvt Ltd
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Renaissance Capital - South Africa
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Indika Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Larsen & Toubro Limited - India
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Global Coal Blending Company Limited - Australia
- Wilmar Investment Holdings
- Bayan Resources Tbk. - Indonesia
- Parliament of New Zealand
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Makarim & Taira - Indonesia
- Price Waterhouse Coopers - Russia
- Meralco Power Generation, Philippines
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Attock Cement Pakistan Limited
- Semirara Mining and Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- ASAPP Information Group - India
- Directorate Of Revenue Intelligence - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Ministry of Mines - Canada
- Indian Oil Corporation Limited
- PTC India Limited - India
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Port Waratah Coal Services - Australia
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- White Energy Company Limited
- Aboitiz Power Corporation - Philippines
- Asmin Koalindo Tuhup - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- Singapore Mercantile Exchange
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Interocean Group of Companies - India
- Karbindo Abesyapradhi - Indoneisa
- Ambuja Cements Ltd - India
- Altura Mining Limited, Indonesia
- Borneo Indobara - Indonesia
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- New Zealand Coal & Carbon
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Alfred C Toepfer International GmbH - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- Africa Commodities Group - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Australian Coal Association
- Parry Sugars Refinery, India
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Toyota Tsusho Corporation, Japan
- Meenaskhi Energy Private Limited - India
- Petron Corporation, Philippines
- Coal and Oil Company - UAE
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Barasentosa Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- GN Power Mariveles Coal Plant, Philippines
- Sree Jayajothi Cements Limited - India
- Edison Trading Spa - Italy
- Tamil Nadu electricity Board
- Formosa Plastics Group - Taiwan
- Eastern Coal Council - USA
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- IHS Mccloskey Coal Group - USA
- The Treasury - Australian Government
- TeaM Sual Corporation - Philippines
- SMC Global Power, Philippines
- Trasteel International SA, Italy
- Rio Tinto Coal - Australia
- Ministry of Transport, Egypt
- Bharathi Cement Corporation - India
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Aditya Birla Group - India
- Manunggal Multi Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Bukit Baiduri Energy - Indonesia
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Mercator Lines Limited - India
- Sarangani Energy Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Global Business Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- CIMB Investment Bank - Malaysia
- Pendopo Energi Batubara - Indonesia
- Kartika Selabumi Mining - Indonesia
- Heidelberg Cement - Germany
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Bukit Makmur.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Malabar Cements Ltd - India
- Coalindo Energy - Indonesia
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Independent Power Producers Association of India
- Siam City Cement - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- Medco Energi Mining Internasional
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Kaltim Prima Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Planning Commission, India
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Economic Council, Georgia
- Central Java Power - Indonesia
- Anglo American - United Kingdom
- Vizag Seaport Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
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