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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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Thursday, 03 November 16
CAPESIZE: BRAZIL/CHINA RATES MOVED TO THE $11 PMT LEVEL; WEST AUSTRALIA/CHINA ROUTE MOVED UP CLOSE TO MID $5 PMT LEVEL - FEARNLEYS
Supramax
In the Atlantic we see a bit more activity than in the eastern hemisphere, says Fearnleys in its latest weekly report. Fhauls via Black ...
Wednesday, 02 November 16
SHIPPING MARKET INSIGHT
A week before the U.S. presidential election, everyone is eager to see the socio-political effects that the result of these elections will have. As ...
Wednesday, 02 November 16
SHIP OPERATING COSTS ARE EXPECTED TO RISE IN BOTH 2016 AND 2017 - MOORE STEPHENS
Vessel operating costs are expected to rise in both 2016 and 2017. Repairs and maintenance and spares are the cost categories which are likely to i ...
Tuesday, 01 November 16
PANAMAX : A FAIR AMOUNT OF SIDEWAYS SHIPPING IN RATES - ALLIED SHIPPING
Capesize
A very sluggish start to the week, with rates dropping considerably as all optimism seems to have evaporated over the weekend. According ...
Tuesday, 01 November 16
IMPROVEMENT ON THE DEMAND SIDE ONLY BUT THE SUPPLY SIDE IS WORSE OFF - BIMCO
Back in May, BIMCO disclosed a projected “road to recovery” for the dry bulk shipping industry. The main message back then on what the ...
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- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Maharashtra Electricity Regulatory Commission - India
- Xindia Steels Limited - India
- IEA Clean Coal Centre - UK
- Binh Thuan Hamico - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- London Commodity Brokers - England
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- Agrawal Coal Company - India
- Makarim & Taira - Indonesia
- Indo Tambangraya Megah - Indonesia
- Sojitz Corporation - Japan
- Central Electricity Authority - India
- TNB Fuel Sdn Bhd - Malaysia
- ASAPP Information Group - India
- Tata Chemicals Ltd - India
- Indonesian Coal Mining Association
- Wilmar Investment Holdings
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Merrill Lynch Commodities Europe
- New Zealand Coal & Carbon
- Ministry of Mines - Canada
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Marubeni Corporation - India
- The University of Queensland
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Star Paper Mills Limited - India
- Kaltim Prima Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mercator Lines Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Vizag Seaport Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- Indogreen Group - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Coalindo Energy - Indonesia
- Latin American Coal - Colombia
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Petron Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Africa Commodities Group - South Africa
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- SMG Consultants - Indonesia
- Lanco Infratech Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Kepco SPC Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- McConnell Dowell - Australia
- Banpu Public Company Limited - Thailand
- Essar Steel Hazira Ltd - India
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- CNBM International Corporation - China
- GVK Power & Infra Limited - India
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- Kapuas Tunggal Persada - Indonesia
- Ind-Barath Power Infra Limited - India
- Heidelberg Cement - Germany
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- Pendopo Energi Batubara - Indonesia
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Straits Asia Resources Limited - Singapore
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Interocean Group of Companies - India
- Indika Energy - Indonesia
- Siam City Cement - Thailand
- Minerals Council of Australia
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- The Treasury - Australian Government
- Standard Chartered Bank - UAE
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- TeaM Sual Corporation - Philippines
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Indian Energy Exchange, India
- Thiess Contractors Indonesia
- Australian Coal Association
- Renaissance Capital - South Africa
- Meenaskhi Energy Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- Goldman Sachs - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Deloitte Consulting - India
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- VISA Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Cigading International Bulk Terminal - Indonesia
- Central Java Power - Indonesia
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- Mintek Dendrill Indonesia
- Commonwealth Bank - Australia
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Global Coal Blending Company Limited - Australia
- Power Finance Corporation Ltd., India
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Barasentosa Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- Rio Tinto Coal - Australia
- IHS Mccloskey Coal Group - USA
- Anglo American - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- LBH Netherlands Bv - Netherlands
- Iligan Light & Power Inc, Philippines
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- Aditya Birla Group - India
- Dalmia Cement Bharat India
- Edison Trading Spa - Italy
- Siam City Cement PLC, Thailand
- Simpson Spence & Young - Indonesia
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- White Energy Company Limited
- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- Coal and Oil Company - UAE
- Indian Oil Corporation Limited
- Sindya Power Generating Company Private Ltd
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Oldendorff Carriers - Singapore
- Bukit Baiduri Energy - Indonesia
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mercuria Energy - Indonesia
- Bharathi Cement Corporation - India
- PNOC Exploration Corporation - Philippines
- Electricity Generating Authority of Thailand
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Formosa Plastics Group - Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Directorate Of Revenue Intelligence - India
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