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Saturday, 21 December 19
SHIPPING'S SUPPLY AND DEMAND TRENDING OFF BALANCE - BIMCO
 One of the most worrying trends that has developed recently – which will affect shipping demand in the years to come – is the falling trade-to-GDP ratio.
The falling ratio can be explained by slowing globalistation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.
The trade war is the clearest example of these extra barriers to trade, and although a phase 1 deal was reached in December, the most difficult issues have yet to be addressed, and BIMCO therefore expects the trade war to continue to plague shipping between the US and China in 2020. Unfortunately, they are not the only countries engaging in tariff wars. The EU also faces additional tariffs from the US and we see trade tensions between Japan and South Korea.
The effects of the worsening of the fundamental shipping market balances this year will be felt in 2020, as the balance is not reset to zero when the calendar year changes. BIMCO continues to warn that the worsening balance between the supply of ships and the demand will be detrimental to shipowners’ ability to pass on the additional costs associated with compliance of the new IMO 2020 Sulphur Cap. It will depend on the freight rates to which extent the additional costs are covered, which in turn depend on the market conditions; the better the market, the easier it is to pass costs on.
Dry Bulk shipping
The biggest concern for Capesize shipping in 2020 is the trend in China, where iron ore imports may fall for the third year in a row. The structural change in China’s steel production, towards using scrap steel in favour of imported iron ore, means that Chinese demand for iron ore can no longer be counted on to increase demand for Capesize ships, with imports having peaked in 2017.
For the dry bulk shipping industry there is more bad news from China. Its soya bean imports have become an important part of the trade war and how it is viewed, but even aside from the trade war, the outlook for soya bean trades into China are weak. Its demand will be considerably lower due to the largest ever culling of pigs which consume most of China’s soya bean imports. It will take years for the Chinese pig population to return to the same size as before the cull, and even then, lowering the soya content in pig’s feed will have lasting consequences on these trades.
The high fleet growth in 2019 (4.1%) will play out into 2020 when the fleet is also expected to grow by more than demand. The cumulative impact of these growth rates mean that the gap between demand for shipping and the supply of ships will continue to grow, putting pressure on freight rates throughout the year.
Tanker Shipping
Crude oil tankers have certainly been in the headlines in 2019 due to geopolitical developments and as freight rates reached record levels as a result, but going into 2020, the fundamentals remain unchanged. This means that after the seasonal boost fades away in the first quarter, the high freight rates in the VLCC-market are likely to disappear, as the market fundamentals have in fact worsened in 2019, with an eight year high fleet growth of 6.3%.
Fleet growth has also been high in the oil product tanker market, with many owners aiming to benefit from the IMO 2020 Sulphur Cap and the boost that BIMCO expects it will bring to the oil product tanker shipping industry. The boost are on the back of the new trades for the transport of compliant bunker fuels from the refineries to the bunkering ports.
While this boost will improve tanker earnings in the first 3-6 months of 2020, once the short term boost will fade away, the challenge facing the market is that the new ships will still be around , and will instead be fighting for cargoes in an already over-supplied market.
One of the major developments expected in 2020 is for the US to become a net exporter of crude oil on an annual basis. The increasing proportion of global crude oil exports coming from the US is good news for the tanker industry as this involves longer sailing distances to the Far East, where the major importers are, compared to exports from the Middle East.
Source: Peter Sand, Chief Shipping Analyst, BIMCO
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Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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Showing 11 to 15 news of total 6871 |
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- Vijayanagar Sugar Pvt Ltd - India
- Bharathi Cement Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Tamil Nadu electricity Board
- Australian Coal Association
- Electricity Generating Authority of Thailand
- Madhucon Powers Ltd - India
- Electricity Authority, New Zealand
- Deloitte Consulting - India
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Grasim Industreis Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Altura Mining Limited, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ambuja Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- Australian Commodity Traders Exchange
- Coastal Gujarat Power Limited - India
- Sindya Power Generating Company Private Ltd
- Parliament of New Zealand
- Planning Commission, India
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sinarmas Energy and Mining - Indonesia
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- OPG Power Generation Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Anglo American - United Kingdom
- Kepco SPC Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Latin American Coal - Colombia
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- Independent Power Producers Association of India
- Minerals Council of Australia
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Videocon Industries ltd - India
- MS Steel International - UAE
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Ministry of Finance - Indonesia
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Borneo Indobara - Indonesia
- Iligan Light & Power Inc, Philippines
- GVK Power & Infra Limited - India
- Economic Council, Georgia
- SN Aboitiz Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Siam City Cement PLC, Thailand
- Bhushan Steel Limited - India
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Commonwealth Bank - Australia
- Bukit Baiduri Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Tata Chemicals Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Merrill Lynch Commodities Europe
- Savvy Resources Ltd - HongKong
- Leighton Contractors Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Star Paper Mills Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Standard Chartered Bank - UAE
- Oldendorff Carriers - Singapore
- Salva Resources Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- Malabar Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Petron Corporation, Philippines
- PowerSource Philippines DevCo
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Jorong Barutama Greston.PT - Indonesia
- Directorate Of Revenue Intelligence - India
- Eastern Energy - Thailand
- Toyota Tsusho Corporation, Japan
- GMR Energy Limited - India
- Bangladesh Power Developement Board
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Aboitiz Power Corporation - Philippines
- Attock Cement Pakistan Limited
- Binh Thuan Hamico - Vietnam
- Wilmar Investment Holdings
- TeaM Sual Corporation - Philippines
- Thiess Contractors Indonesia
- Mercator Lines Limited - India
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Alfred C Toepfer International GmbH - Germany
- Meralco Power Generation, Philippines
- Straits Asia Resources Limited - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Port Waratah Coal Services - Australia
- Vizag Seaport Private Limited - India
- Antam Resourcindo - Indonesia
- The University of Queensland
- Africa Commodities Group - South Africa
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Sakthi Sugars Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Uttam Galva Steels Limited - India
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- CNBM International Corporation - China
- Central Electricity Authority - India
- Cement Manufacturers Association - India
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- McConnell Dowell - Australia
- White Energy Company Limited
- TNB Fuel Sdn Bhd - Malaysia
- Riau Bara Harum - Indonesia
- Wood Mackenzie - Singapore
- Orica Mining Services - Indonesia
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indian Oil Corporation Limited
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coal and Oil Company - UAE
- European Bulk Services B.V. - Netherlands
- Kumho Petrochemical, South Korea
- San Jose City I Power Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- New Zealand Coal & Carbon
- Parry Sugars Refinery, India
- Siam City Cement - Thailand
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