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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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Sunday, 26 January 20
SHIPPING NEEDS TO PREPARE FOR CORONAVIRUS RESTRICTIONS WARNS HILL DICKINSON
The shipping industry needs to be prepared for potential restrictions in order to prevent the further spread of the ‘Wuhan’ coronavirus ...
Friday, 24 January 20
LOW-SULPHUR FUEL OIL PRICES DROP USD 99 PER MT IN SINGAPORE - BIMCO
Singapore has seen one of the largest drops in the price of Very Low Sulphur Fuel Oil (VLSFO), which peaked on 7 January 2020 at USD 740 per metric ...
Friday, 24 January 20
CHINA'S BENCHMARK POWER COAL PRICE REMAINED FLAT DURING THE PAST WEEK - XINHUA
The Bohai-Rim Steam-Coal Price Index (BSPI), a gauge of coal prices in north China’s major ports, stood at 553 yuan (about 80.1 U.S. dollars) ...
Thursday, 23 January 20
PANAMAX: ANOTHER DISAPPOINTING WEEK IN BOTH THE ATLANTIC AND THE PACIFIC BASIN - FEARNLEYS
Cape Size
From bad to worse for the biggest ships as prices for low-sulphur fuel oil remain high whilst freight rates deteriorate further. Aver ...
Thursday, 23 January 20
AFRICAN POWER PLATFORM PUBLISHES REPORTS ON POWER SECTOR FRAMEWORK FOR SELECTED AFRICAN COUNTRIES
Press Release: African Power Platform publishes Reports on Power Sector Framework for selected African Countries
With the repo ...
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- Edison Trading Spa - Italy
- Global Coal Blending Company Limited - Australia
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Petron Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- The Treasury - Australian Government
- Billiton Holdings Pty Ltd - Australia
- MS Steel International - UAE
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Bangladesh Power Developement Board
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Trasteel International SA, Italy
- Leighton Contractors Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Global Green Power PLC Corporation, Philippines
- IEA Clean Coal Centre - UK
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Kalimantan Lumbung Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Straits Asia Resources Limited - Singapore
- Tata Chemicals Ltd - India
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Therma Luzon, Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Meralco Power Generation, Philippines
- Siam City Cement PLC, Thailand
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Energy Development Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- Coastal Gujarat Power Limited - India
- Bhoruka Overseas - Indonesia
- Mercator Lines Limited - India
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- Simpson Spence & Young - Indonesia
- Makarim & Taira - Indonesia
- Borneo Indobara - Indonesia
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- Sical Logistics Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Timah Investasi Mineral - Indoneisa
- Australian Coal Association
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Kumho Petrochemical, South Korea
- Wilmar Investment Holdings
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Posco Energy - South Korea
- ASAPP Information Group - India
- Formosa Plastics Group - Taiwan
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- The University of Queensland
- PNOC Exploration Corporation - Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- Bulk Trading Sa - Switzerland
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Goldman Sachs - Singapore
- Larsen & Toubro Limited - India
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- Bharathi Cement Corporation - India
- Jindal Steel & Power Ltd - India
- Sinarmas Energy and Mining - Indonesia
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Heidelberg Cement - Germany
- Sakthi Sugars Limited - India
- Power Finance Corporation Ltd., India
- Petrochimia International Co. Ltd.- Taiwan
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- PowerSource Philippines DevCo
- Deloitte Consulting - India
- Economic Council, Georgia
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Wood Mackenzie - Singapore
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Altura Mining Limited, Indonesia
- Gujarat Sidhee Cement - India
- McConnell Dowell - Australia
- Orica Mining Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Jaiprakash Power Ventures ltd
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- The State Trading Corporation of India Ltd
- Baramulti Group, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Banpu Public Company Limited - Thailand
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Attock Cement Pakistan Limited
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Parliament of New Zealand
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Parry Sugars Refinery, India
- TeaM Sual Corporation - Philippines
- GMR Energy Limited - India
- Bayan Resources Tbk. - Indonesia
- Antam Resourcindo - Indonesia
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- Price Waterhouse Coopers - Russia
- Sarangani Energy Corporation, Philippines
- Indian Oil Corporation Limited
- Chettinad Cement Corporation Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Coalindo Energy - Indonesia
- Rio Tinto Coal - Australia
- Alfred C Toepfer International GmbH - Germany
- Romanian Commodities Exchange
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- GAC Shipping (India) Pvt Ltd
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
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