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Wednesday, 12 February 20
MARKET INSIGHT - INTERMODAL
 The recent Coronavirus outbreak in China has led to a global health emergency by World Health Organization and it is yet to be seen how long the phenomenon will last compared also to the SARS outbreak in 2002. By now it is evident that the spread of the virus has been much more rapid, with more than 40,000 incidents and 1,000 deaths officially reported across 25 countries to date, while these figures are expected to keep going up.
The current situation has affected various businesses and industries around the globe and especially the shipping industry. The outbreak has knocked what was a positive sentiment during the start of the year across all sectors and disturbed the markets worldwide. The markets that are deeply dependent to China’s trade have been heavily affected, while the outbreak came to a period concurrent with the Chinese New Year holidays. The extended period of China’s shutdown has shrunk trade volumes worldwide and freight rates across all sectors have plummeted. It is safe to say that the economic distress will affect the China’s economic growth for the first quarter of 2020 and the annual GDP growth as well.
The central location of Wuhan, where the virus originated, which is strategically located on the Yangtze River, is one of the globe’s busiest waterways. More than two billion tonnes of cargo are transported through ports on the mainstream of the river every year. Likewise, more than 80% of China’s inland marine traffic moves on the Yangtze River, while Wuhan itself handles close to 1.5 mill containers a year. Seven out of the ten container ports are located in China and seems that the container industry will be the first to feel the turmoil from the virus effect.
Through Wuhan thousands of tons of coal, steel and crude oil are supplied. Therefore, any major situation that grounds for prolonged disruption on the supply chain from these regions results to great effects for both China and every shareholder that is in business with China and imports goods from there. Moreover, the factories shutdown has resulted in a slowdown of manufacturing and industrial production. As discussed the intra-Asian container shipping market is the first to feel the effect from the Coronavirus and it is expected that the long-haul trades to North America and Europe will be affected. The extended holidays and emergency measures to tackle the virus are estimated to reduce cargo volumes at Chinese ports including Hong Kong by over 6 million TEUs (20 foot equivalent units) in the first quarter of 2020 and forecast global container throughput growth would fall by at least 0.7% in 2020.
Looking forward, the industry widely believes this dynamic will be short – lived. As it was the case with SARS in the past, the supply chains should hopefully resume, resulting in a demand surge, increased trade volumes and even higher than before the virus outbreak freight rates.
By Stelios Kollintzas
Tanker Chartering Broker
Compiled by:
Intermodal Research & Valuations
Analysts:
Ms Eva Tzima
Mr.George Panagopoulos
Disclaimer and legal disclosure: For any further queries please do not hesitate to contact our Research & Valuations Department. The information contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such information to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the production of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the information and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior written authorization of Intermodal Shipbrokers Co.
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Monday, 13 February 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The current sentiment in the dry market resembles memories from the end of 2008, when the Baltic Dry Index closed at the level of 663 points on Dece ...
Sunday, 12 February 12
INDONESIA HAS ISSUED A REGULATION TO BAN THE EXPORT OF UNPROCESSED MINERALS AND METALS BY 2014
COALspot.com - The Indonesian government has finally issued a ministerial decree (7 Year 2012 dated 6 February 2012) to ban the export of unpro ...
Sunday, 12 February 12
THE BALTIC DRY INDEX CLIMBS 10.51%
COALspot.com - "The markets touched record lows not seen since mid 80’s. However there was some good news with signs of market recovery a ...
Saturday, 11 February 12
A SNAPSHOT ON THE ECONOMIC AND SHIPPING ENVIRONMENT - GOLDEN DESTINY
The week was highlighted with intense worries in the eurozone for Greece to secure its second bailout of $130billion by applying a ...
Saturday, 11 February 12
WILL HISTORY REPEAT ITSELF IN THIS SHIPPING CYCLE? - CLARKSONS / HELLENIC SHIPPING
A slightly dubious "best man" joke runs as follows… Best man (giving his wedding speech): "Have you noticed how history repeat ...
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- Wilmar Investment Holdings
- Indika Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Coal and Oil Company - UAE
- Economic Council, Georgia
- Mercator Lines Limited - India
- Timah Investasi Mineral - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Standard Chartered Bank - UAE
- Jorong Barutama Greston.PT - Indonesia
- Australian Commodity Traders Exchange
- New Zealand Coal & Carbon
- PetroVietnam Power Coal Import and Supply Company
- Thiess Contractors Indonesia
- South Luzon Thermal Energy Corporation
- Coalindo Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Planning Commission, India
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Kohat Cement Company Ltd. - Pakistan
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Electricity Authority, New Zealand
- Goldman Sachs - Singapore
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Maharashtra Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chettinad Cement Corporation Ltd - India
- Sojitz Corporation - Japan
- ICICI Bank Limited - India
- Mjunction Services Limited - India
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Formosa Plastics Group - Taiwan
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Baramulti Group, Indonesia
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Altura Mining Limited, Indonesia
- Singapore Mercantile Exchange
- Leighton Contractors Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- Indogreen Group - Indonesia
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Kumho Petrochemical, South Korea
- Xindia Steels Limited - India
- Metalloyd Limited - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Banpu Public Company Limited - Thailand
- Ambuja Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bulk Trading Sa - Switzerland
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- VISA Power Limited - India
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Petrochimia International Co. Ltd.- Taiwan
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Kobexindo Tractors - Indoneisa
- Iligan Light & Power Inc, Philippines
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- Sindya Power Generating Company Private Ltd
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- Directorate Of Revenue Intelligence - India
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Central Electricity Authority - India
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Medco Energi Mining Internasional
- Alfred C Toepfer International GmbH - Germany
- Aboitiz Power Corporation - Philippines
- Edison Trading Spa - Italy
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indian Oil Corporation Limited
- Semirara Mining and Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Bhatia International Limited - India
- Kapuas Tunggal Persada - Indonesia
- White Energy Company Limited
- AsiaOL BioFuels Corp., Philippines
- Parry Sugars Refinery, India
- Heidelberg Cement - Germany
- Bahari Cakrawala Sebuku - Indonesia
- Uttam Galva Steels Limited - India
- Grasim Industreis Ltd - India
- Mintek Dendrill Indonesia
- European Bulk Services B.V. - Netherlands
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- Jindal Steel & Power Ltd - India
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Kideco Jaya Agung - Indonesia
- Carbofer General Trading SA - India
- The Treasury - Australian Government
- Jaiprakash Power Ventures ltd
- Ministry of Transport, Egypt
- SN Aboitiz Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Sarangani Energy Corporation, Philippines
- Videocon Industries ltd - India
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Australian Coal Association
- Wood Mackenzie - Singapore
- Essar Steel Hazira Ltd - India
- Siam City Cement - Thailand
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Cement Manufacturers Association - India
- PTC India Limited - India
- GMR Energy Limited - India
- Thai Mozambique Logistica
- LBH Netherlands Bv - Netherlands
- Binh Thuan Hamico - Vietnam
- ASAPP Information Group - India
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Kalimantan Lumbung Energi - Indonesia
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- Samtan Co., Ltd - South Korea
- Rio Tinto Coal - Australia
- Meralco Power Generation, Philippines
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Sical Logistics Limited - India
- CIMB Investment Bank - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Sree Jayajothi Cements Limited - India
- McConnell Dowell - Australia
- The State Trading Corporation of India Ltd
- Tata Chemicals Ltd - India
- Semirara Mining Corp, Philippines
- Therma Luzon, Inc, Philippines
- Eastern Coal Council - USA
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Georgia Ports Authority, United States
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Agrawal Coal Company - India
- Vizag Seaport Private Limited - India
- Minerals Council of Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- Kaltim Prima Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Intertek Mineral Services - Indonesia
- Bhoruka Overseas - Indonesia
- Global Green Power PLC Corporation, Philippines
- Commonwealth Bank - Australia
- Kartika Selabumi Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- Merrill Lynch Commodities Europe
- Billiton Holdings Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Central Java Power - Indonesia
- International Coal Ventures Pvt Ltd - India
- Marubeni Corporation - India
- Simpson Spence & Young - Indonesia
- Port Waratah Coal Services - Australia
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