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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, 06 July 16
MARKET INSIGHT - VASSILIS VASSILIOU
After a fairly silent first half of the year in the ship repair sector, we have finally a harmonized workload in the shipyards around the world. Ma ...
Tuesday, 05 July 16
DRY BULK SHIPPING'S RECOVERY NOT SEEN UNTIL 2018 - SGX
SGX freight derivative volumes totaled 36,542 contracts in June (-28% m/m; +52% y/y), while open interest averaged 121,189 contracts during the mon ...
Tuesday, 05 July 16
SPOT COAL INDEXES FOR INDONESIAN COAL CONTINUE TO HOLD FIRM - CS COAL INDEX
COALspot.com: Average 5000 GAR coal index of Indonesian origin was up by 0.83 percent week over week to averaging $39.98 per ton this past week, sh ...
Monday, 04 July 16
INDONESIA COAL PRICE REFERENCE CLIMBED 2.30% IN JULY
COALspot.com: The Indonesia Coal Benchmark Price increased in July 2016.
The Director General of Mineral and Coal of Indonesia, the r ...
Monday, 04 July 16
BDI ROSE ON STRONGER DEMAND ACROSS ALL VESSEL SEGMENTS
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities rose this past week. The BDI was up 11.16 percent from la ...
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- Oldendorff Carriers - Singapore
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- Medco Energi Mining Internasional
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- Kartika Selabumi Mining - Indonesia
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- Karbindo Abesyapradhi - Indoneisa
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- Bulk Trading Sa - Switzerland
- The State Trading Corporation of India Ltd
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- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- PetroVietnam Power Coal Import and Supply Company
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- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Indian Oil Corporation Limited
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- Ministry of Finance - Indonesia
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- Directorate General of MIneral and Coal - Indonesia
- White Energy Company Limited
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- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Cement Manufacturers Association - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vizag Seaport Private Limited - India
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Iligan Light & Power Inc, Philippines
- IEA Clean Coal Centre - UK
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Madhucon Powers Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- PowerSource Philippines DevCo
- MS Steel International - UAE
- Kumho Petrochemical, South Korea
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- CNBM International Corporation - China
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Tamil Nadu electricity Board
- Larsen & Toubro Limited - India
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- GMR Energy Limited - India
- Kideco Jaya Agung - Indonesia
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- Minerals Council of Australia
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Samtan Co., Ltd - South Korea
- Eastern Energy - Thailand
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- Sindya Power Generating Company Private Ltd
- Georgia Ports Authority, United States
- Economic Council, Georgia
- Siam City Cement PLC, Thailand
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- McConnell Dowell - Australia
- Manunggal Multi Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Agrawal Coal Company - India
- London Commodity Brokers - England
- Singapore Mercantile Exchange
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- Bukit Baiduri Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- VISA Power Limited - India
- LBH Netherlands Bv - Netherlands
- Aboitiz Power Corporation - Philippines
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- CIMB Investment Bank - Malaysia
- Attock Cement Pakistan Limited
- Orica Australia Pty. Ltd.
- Carbofer General Trading SA - India
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Xindia Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Ind-Barath Power Infra Limited - India
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Mercuria Energy - Indonesia
- Borneo Indobara - Indonesia
- Meralco Power Generation, Philippines
- Chamber of Mines of South Africa
- Anglo American - United Kingdom
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- Bangladesh Power Developement Board
- Makarim & Taira - Indonesia
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- New Zealand Coal & Carbon
- Australian Commodity Traders Exchange
- Bhatia International Limited - India
- Parry Sugars Refinery, India
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- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- Directorate Of Revenue Intelligence - India
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- Barasentosa Lestari - Indonesia
- GVK Power & Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Leighton Contractors Pty Ltd - Australia
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- The University of Queensland
- PTC India Limited - India
- SMG Consultants - Indonesia
- International Coal Ventures Pvt Ltd - India
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Cigading International Bulk Terminal - Indonesia
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Wilmar Investment Holdings
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- IHS Mccloskey Coal Group - USA
- Central Electricity Authority - India
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- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
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