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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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Monday, 29 August 16
THE FREIGHT MARKET WAS STEADY AND FIRM THIS PAST WEEK; BCI ROSE 18.74%
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose and ending in a positive note this past week except ...
Friday, 26 August 16
WEEKLY US COAL OUTPUT UP 0.7% W/W TO 16 MMST: EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16 million short tons ...
Thursday, 25 August 16
SUPRAMAXES ARE BEING FIXED IN REGION OF $9000
Supramax
Due to Chinese coal imports which continues to source much of the tonnage in SE Asia combined with a good flow of mineral exports ex Aus ...
Wednesday, 24 August 16
MARKET INSIGHT
Brazil and the world bid farewell on Sunday to the first Olympic Games in South America in the midst of a finale meant to be both one last bash and ...
Wednesday, 24 August 16
DRY BULK VESSELS FACE CONTINUED DISTRESS - CLEAR ASSET
Dry bulk vessels have faced extreme distress in recent years. With a combination of factors including newer vessels being ordered with up to 5-year ...
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- London Commodity Brokers - England
- Economic Council, Georgia
- Mercator Lines Limited - India
- Lanco Infratech Ltd - India
- Agrawal Coal Company - India
- Kapuas Tunggal Persada - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Global Business Power Corporation, Philippines
- ICICI Bank Limited - India
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- Alfred C Toepfer International GmbH - Germany
- Holcim Trading Pte Ltd - Singapore
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- SN Aboitiz Power Inc, Philippines
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Karbindo Abesyapradhi - Indoneisa
- SMC Global Power, Philippines
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- Deloitte Consulting - India
- South Luzon Thermal Energy Corporation
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Trasteel International SA, Italy
- Kohat Cement Company Ltd. - Pakistan
- Indogreen Group - Indonesia
- Malabar Cements Ltd - India
- The University of Queensland
- Antam Resourcindo - Indonesia
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Leighton Contractors Pty Ltd - Australia
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Bhatia International Limited - India
- Sree Jayajothi Cements Limited - India
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Africa Commodities Group - South Africa
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Indika Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Parliament of New Zealand
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Planning Commission, India
- Gujarat Sidhee Cement - India
- Maheswari Brothers Coal Limited - India
- TeaM Sual Corporation - Philippines
- Heidelberg Cement - Germany
- Straits Asia Resources Limited - Singapore
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- McConnell Dowell - Australia
- Banpu Public Company Limited - Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- Pendopo Energi Batubara - Indonesia
- Manunggal Multi Energi - Indonesia
- Coalindo Energy - Indonesia
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Metalloyd Limited - United Kingdom
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Edison Trading Spa - Italy
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- Sojitz Corporation - Japan
- Global Coal Blending Company Limited - Australia
- Kartika Selabumi Mining - Indonesia
- Energy Link Ltd, New Zealand
- Ambuja Cements Ltd - India
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Salva Resources Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Semirara Mining Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Samtan Co., Ltd - South Korea
- San Jose City I Power Corp, Philippines
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- Ministry of Finance - Indonesia
- Jaiprakash Power Ventures ltd
- Carbofer General Trading SA - India
- White Energy Company Limited
- Xindia Steels Limited - India
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- Sakthi Sugars Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Aditya Birla Group - India
- Grasim Industreis Ltd - India
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- Wilmar Investment Holdings
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Thiess Contractors Indonesia
- MS Steel International - UAE
- Aboitiz Power Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Altura Mining Limited, Indonesia
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Energy Development Corp, Philippines
- Meenaskhi Energy Private Limited - India
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- Petron Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Power Finance Corporation Ltd., India
- Simpson Spence & Young - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- PTC India Limited - India
- Indonesian Coal Mining Association
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- India Bulls Power Limited - India
- Orica Mining Services - Indonesia
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Anglo American - United Kingdom
- Global Green Power PLC Corporation, Philippines
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Barasentosa Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- Australian Commodity Traders Exchange
- Timah Investasi Mineral - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Sarangani Energy Corporation, Philippines
- Medco Energi Mining Internasional
- Mintek Dendrill Indonesia
- Toyota Tsusho Corporation, Japan
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