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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, 26 October 16
SHIPPING MARKET INSIGHT - KONSTANTINOS KONTOMICHIS
If the finale of a thriller movie finds the leading actor successfully surviving after all the sacrifices he has made, the audience presumes this t ...
Tuesday, 25 October 16
INDONESIAN COAL PRICES MARCH HIGHER CONTINUES
COALspot.com: A rally in thermal coal prices over the past few months, after years of decline, is still continuing and it is expected to rally at l ...
Tuesday, 25 October 16
THINGS ARE SLOWLY STARTING TO IMPROVE AS CORRECTIONS ARE MADE - ALLIED
It seems as though left, right and centre, all we see nowadays is the word “restructuring”.
There is restructuring amongst bankers ...
Monday, 24 October 16
KOMIPO INVITES BIDS FOR 0.78 MILLION TONS OF BITUMINOUS COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a new tender for 780,000 Metric Tons of Bituminous Coal for its B ...
Monday, 24 October 16
U.S WEEKLY COAL PRODUCTION DECLINED 3.2% TO 16 MMST WEEK OVER WEEK
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16 million short tons ...
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- Bayan Resources Tbk. - Indonesia
- Trasteel International SA, Italy
- Iligan Light & Power Inc, Philippines
- Ministry of Transport, Egypt
- Formosa Plastics Group - Taiwan
- Ind-Barath Power Infra Limited - India
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Carbofer General Trading SA - India
- Central Electricity Authority - India
- Posco Energy - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- CNBM International Corporation - China
- VISA Power Limited - India
- Directorate Of Revenue Intelligence - India
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Samtan Co., Ltd - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Metalloyd Limited - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Riau Bara Harum - Indonesia
- Maheswari Brothers Coal Limited - India
- GAC Shipping (India) Pvt Ltd
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Wilmar Investment Holdings
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Gujarat Sidhee Cement - India
- Sojitz Corporation - Japan
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- SMC Global Power, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Star Paper Mills Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Manunggal Multi Energi - Indonesia
- Mercator Lines Limited - India
- Billiton Holdings Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Electricity Regulatory Commission - India
- Sindya Power Generating Company Private Ltd
- ICICI Bank Limited - India
- Eastern Energy - Thailand
- Petron Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- The University of Queensland
- Mjunction Services Limited - India
- Bukit Baiduri Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Jindal Steel & Power Ltd - India
- White Energy Company Limited
- Kobexindo Tractors - Indoneisa
- Latin American Coal - Colombia
- Karbindo Abesyapradhi - Indoneisa
- Price Waterhouse Coopers - Russia
- Makarim & Taira - Indonesia
- Rio Tinto Coal - Australia
- Cement Manufacturers Association - India
- Agrawal Coal Company - India
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- Borneo Indobara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- Bhoruka Overseas - Indonesia
- Ministry of Finance - Indonesia
- SMG Consultants - Indonesia
- Romanian Commodities Exchange
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- GVK Power & Infra Limited - India
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Electricity Generating Authority of Thailand
- Meralco Power Generation, Philippines
- CIMB Investment Bank - Malaysia
- Indika Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Chettinad Cement Corporation Ltd - India
- Standard Chartered Bank - UAE
- Central Java Power - Indonesia
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- Lanco Infratech Ltd - India
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Georgia Ports Authority, United States
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- McConnell Dowell - Australia
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Sarangani Energy Corporation, Philippines
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Independent Power Producers Association of India
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Salva Resources Pvt Ltd - India
- MS Steel International - UAE
- Coastal Gujarat Power Limited - India
- Baramulti Group, Indonesia
- Altura Mining Limited, Indonesia
- Coalindo Energy - Indonesia
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Savvy Resources Ltd - HongKong
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Interocean Group of Companies - India
- Uttam Galva Steels Limited - India
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Global Coal Blending Company Limited - Australia
- Bhatia International Limited - India
- Mintek Dendrill Indonesia
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Commonwealth Bank - Australia
- Bangladesh Power Developement Board
- Electricity Authority, New Zealand
- Sical Logistics Limited - India
- Pendopo Energi Batubara - Indonesia
- Vedanta Resources Plc - India
- Kumho Petrochemical, South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Ministry of Mines - Canada
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- The State Trading Corporation of India Ltd
- Kepco SPC Power Corporation, Philippines
- Deloitte Consulting - India
- Ceylon Electricity Board - Sri Lanka
- Intertek Mineral Services - Indonesia
- Bharathi Cement Corporation - India
- Anglo American - United Kingdom
- Australian Coal Association
- Port Waratah Coal Services - Australia
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Economic Council, Georgia
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