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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, 27 June 16
INDONESIA BANS (AGAIN) SHIPS SAILING TO THE PHILIPPINES FROM INDONESIA
COALspot.com: The Indonesian Transport Ministry strictly prohibited harbour masters issuing permits to all Indonesian-flagged vessels bound for the ...
Friday, 24 June 16
U.S WEEKLY COAL PRODUCTION UP MARGINALLY
COALspot.com – U.S, world’s one of the largest coal producers has produced approximately totalled an estimated 13.4 million short tons ...
Wednesday, 22 June 16
SMALL RISE IN SHIPPING CONFIDENCE - MOORE STEPHENS
In May 2016, the average confidence level expressed by respondents in the markets in which they operate was 5.1 on a scale of 1 (low) to 10 (high). ...
Wednesday, 22 June 16
SHIPPING MARKET INSIGHT - NASSOS SOULAKIS
Stagnation- With the BDI stuck in the low 600 points for almost a month now, if we had to choose a word to describe the state of the Dry Bulk freig ...
Monday, 20 June 16
CS COAL INDICES CONTINUE UPWARD TREND SINCE END APRIL
COALspot.com: Average 5000 GAR coal index of Indonesian origin was up again by 0.05 percent week over week to averaging $39.39 per ton this past we ...
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Showing 2386 to 2390 news of total 6871 |
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- Global Coal Blending Company Limited - Australia
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Dalmia Cement Bharat India
- Directorate Of Revenue Intelligence - India
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- Bhoruka Overseas - Indonesia
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- Star Paper Mills Limited - India
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- Ministry of Transport, Egypt
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Agrawal Coal Company - India
- Africa Commodities Group - South Africa
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Interocean Group of Companies - India
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- Sakthi Sugars Limited - India
- Vizag Seaport Private Limited - India
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Posco Energy - South Korea
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Pendopo Energi Batubara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Timah Investasi Mineral - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Eastern Energy - Thailand
- Bhatia International Limited - India
- Bangladesh Power Developement Board
- Ministry of Mines - Canada
- Ceylon Electricity Board - Sri Lanka
- Karbindo Abesyapradhi - Indoneisa
- Australian Coal Association
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Lanco Infratech Ltd - India
- Global Green Power PLC Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- Carbofer General Trading SA - India
- Coal and Oil Company - UAE
- Wood Mackenzie - Singapore
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- Intertek Mineral Services - Indonesia
- Sarangani Energy Corporation, Philippines
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Semirara Mining Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- New Zealand Coal & Carbon
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Manunggal Multi Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- Rio Tinto Coal - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IHS Mccloskey Coal Group - USA
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Central Java Power - Indonesia
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- Riau Bara Harum - Indonesia
- Orica Australia Pty. Ltd.
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- India Bulls Power Limited - India
- White Energy Company Limited
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Bahari Cakrawala Sebuku - Indonesia
- PTC India Limited - India
- Samtan Co., Ltd - South Korea
- Bhushan Steel Limited - India
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Minerals Council of Australia
- Gujarat Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- Mjunction Services Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sical Logistics Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Oldendorff Carriers - Singapore
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Formosa Plastics Group - Taiwan
- Sree Jayajothi Cements Limited - India
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Parry Sugars Refinery, India
- SMG Consultants - Indonesia
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- Latin American Coal - Colombia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Central Electricity Authority - India
- Kideco Jaya Agung - Indonesia
- Gujarat Sidhee Cement - India
- Barasentosa Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Indian Energy Exchange, India
- PNOC Exploration Corporation - Philippines
- Mercator Lines Limited - India
- South Luzon Thermal Energy Corporation
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Aboitiz Power Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- The Treasury - Australian Government
- Heidelberg Cement - Germany
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
- PetroVietnam Power Coal Import and Supply Company
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Sindya Power Generating Company Private Ltd
- Indonesian Coal Mining Association
- Parliament of New Zealand
- Orica Mining Services - Indonesia
- Essar Steel Hazira Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- The State Trading Corporation of India Ltd
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