tag:blogger.com,1999:blog-332706532024-03-07T23:36:13.593-08:00TANKER WORLDsudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.comBlogger53125tag:blogger.com,1999:blog-33270653.post-54594353858930652822021-01-04T22:45:00.004-08:002021-01-04T22:45:58.538-08:00Covid19 Eclipse Y2K20<p> <span style="text-align: justify;">2020 was a landmark year when IMO, in order to acknowledge and contribute to restrain</span><span style="text-align: justify;"> </span><span style="text-align: justify;">the growing global e</span><span style="text-align: justify;">nvironmental t</span><span style="text-align: justify;">hreat, enforced a new lower </span><span style="text-align: justify;"> </span><span style="text-align: justify;">0.5%</span><span style="text-align: justify;"> </span><span style="text-align: justify;">global Sulphur cap on bunkers.</span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">However, <span style="mso-spacerun: yes;"> </span>the Maritime fraternity’s great sacrifice to adopt to higher fuel standards in order to <span style="mso-spacerun: yes;"> </span>cut down toxicity from the face of the earth was smeared by greater toxicity this year.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">The Toxicity came in the form of a novel virus, the Covid19. Believed to have been originated in Wuhan, China, the virus quickly spread around the world, forcing nation after nations to go into lockdown,<span style="mso-spacerun: yes;"> </span>grounding airlines, shutting down factories, offices and workplaces across the world. There was huge loss of businesses and employment. The world economy came down on its knees. Shipping <span style="mso-spacerun: yes;"> </span>Seafarers suffered the shock as many were left stranded on ships. Printing money was seen as the last resort.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">Staying negative was a big positive in the foregone year. Yet, we saw some positivity in this game changer year.<span style="mso-spacerun: yes;"> </span>The IT sector, work from home, remote, robotic, online shopping, social media, health sector were among some of the opportunities in disaster last year.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">The toxicity has been brewing not only in air but in human hearts too for the past few years. Rightist movement has been gaining momentum and people worldover are more polarized and divided than ever before on grounds of race, colour, religion, caste and nation. Free trade and environment have been a casualty of the constricted thought process. However, with Joe Biden replacing Capt. Trump, we may be seeing some of the blocked trade routes opening up in coming years and the environmental efforts be restored to RFA. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">Year 2021 is gonna be a fallout year of 2020. Now that the vaccines have been rolled out, the effect is to be seen. A lot of liquidity was pumped in the financial markets last year, which will need to be mopped out gradually. The stock markets are at all time high. We will need to see a meaningful growth in world trade this year to sustain optimism in futures.<o:p></o:p></span></p><p class="MsoNormal" style="text-align: justify;"><span lang="EN-US" style="mso-ansi-language: EN-US;">Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning. – Albert Einstein.</span></p>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-43590909773886175962019-12-31T01:52:00.004-08:002019-12-31T01:52:43.496-08:00No Sulphur - Lead me out of the Dark Climate Change<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
So finally, Y2K20 is here, and for the new year's resolution merchant ships
vow to cut down on smoking sulphur. </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
In deed its gonna be a landmark year in the history of fuels. Before this,
1996 was another such year when another element lead(Pb) was eliminated from
gasoline for use in on-road vehicles. </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Notwithstanding the great challenges in compliance and implementation of
the use of low sulphur fuels in marine industry, the things are expected to fall
in place after teething problems. One thing is for sure to start with, use of
sulphur deficient fuels will hike up the logistics cost per ton, which will be
paid by the end user as usual. But then, preservation of climate has a cost
attached to it. You can eat your cake and have it too, provided you have means
to replenish it. Cutting down on sulphur at sea is one such move. A move to make
sure, when it falls from the sky, its not just an acid rain.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
I thank the maritime fraternity to have taken this bold step in the right,
oops left direction. Ha ha...</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Climate has been screaming for the past few decades and trying to tell
greed driven people to slow down in their pursuit of mirage and not to treat it
with impunity. With extreme weather getting better of people worldwide, the
climate activists are being taken more seriously lately. And in
2019, TIME actually stopped and chose Greta Thunberg as its face of the year to
highlight the issue. There are some effective steps being taken by governments
and organisations to moon walk over the carbon foot prints. </div>
<div style="text-align: justify;">
</div>
<br />
<div style="text-align: justify;">
Led by hate and greed, the last decade saw an outright rise of communalism,
racism and nationalism worldwide. I sincerely hope, 2020 proves to be a tipping
point for the right movement to be impeached and stalled. </div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-82744441008619996542018-12-29T00:06:00.000-08:002018-12-29T00:40:23.888-08:00HELLO 2019<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
The year 2018 began with fear of nuclear war as USA and North Korean
presidents claimed they had the nuclear launch buttons on their table. The WW
III question was, whose button was bigger and more powerful than the
other's.<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
But, by the grace of God, prudence prevailed and by the middle of the year
both presidents were seen shaking hands, rather than pressing buttons.<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
However, one earth one family dance has gone horribly out of
sync. Nations and people have forgotten Pink Floyd's number and have started
to build walls around them once again. Globalization of trade and economics is victim of left-right politics. Erased trade barriers are seen being re-built by
the governments.<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
What has not changed is advent of technology. The www is growing without
boundaries. Be it alibaba, amazon or flipKart, all are seeing growing consumer
base in multifolds. On the other hand, robotization of processes is at acme.
Driven by economy of scale, mammoth is achieving extended dimensions. The motto
stands; Citius, Altius, Fortius.<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
This year, we saw a huge swing in Oil Futures briefly as a scary reminder
of how vulnerable we are to energy crunch.<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Nature kept reminding us that we were on an overdrive in our usage of
resources. Consumerism is OK but not at the cost of the basic necessities like
fresh air and water. The environment needs attention. The year 2019 is the
penultimate year before IMO fuel regulation kicks-in in 2020. Chaos as usual
will herald opportunity. <br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Wish you all a happy new year, 2019!!</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-50756294649321182342017-12-27T02:02:00.002-08:002017-12-27T02:27:54.654-08:00Choo, Choo 2017, Chuggin' Down the Track<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="text-align: justify;">
Wish you all a Happy New Year 2018!<br />
<br />
After few ominous and bleak years, its time to say farewell to the bitcoin year 2017. A year which pulled the global economy out of the doldrums and set the global economic growth engine in motion with modest momentum.<br />
<br />
US economy is looking stronger than it had in recent times. Employment rate is higher than ever followed by strong consumer and business sentiment.<br />
<br />
Eurozone is also buoyant if not equally pompous. China, the behemoth of world economy is also expected to retain its modest growth rate along with the other emerging Asian economies.<br />
<br />
India, after implementing some major reforms in financial and tax systems is all set to cruise with accelerated growth rate.<br />
<br />
Middle-East is a happening place again after Oil prices saw stability last year and now have a bullish out look.<br />
<br />
Inflationary economy across the board is sure to pump up the commodity market and thus the shipping in general.<br />
<br />
All in all the atmosphere on the new year’s eve is exuberant and optimistic.<br />
<br />
But the current optimism is not without the inherent fear of unknown as the human civilization is going through the transition phase of the tech revolution. As Jack Ma says, "The first technology revolution caused World War I. The second technology revolution caused World War II. This is the third technology revolution."<br />
<br />
Infact, its already smouldering out there in Syria, Iraq, Yemen, Afghanistan, Libya and few other nations of Africa while North Korea remains a nuclear hazard. Besides, there is realignment of powers taking place under Capt. Trump's command.<br />
<br />
I am of the firm belief the technology is on a definite path of handing over the reins of life to the machines for good. AI primed robots will be the carriers of consciousness after few decades.<br />
<br />
And as a preface, human greed is converting into bitcoins. </div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-31121479926019291742017-06-19T01:37:00.001-07:002017-06-19T01:37:42.771-07:00Merchants of Death<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
He maintained course as he thought he was the law</div>
<div>
& he maintained the course as he thought he was on the right side of
the law.</div>
<div>
Both maintained their course and hence the intercourse.</div>
<div>
</div>
<div style="text-align: justify;">
The US Navy destroyer USS Fitzgerald collided with NYK chartered boxship MV
ACX Crystal during the Mid watch in the early AM hours on Saturday, 17th June,
2017 in the congested Japanese coastal waters.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
In a full impact lateral collision the much heavier Merchant ship's
bow severely damaged the starboard accommodation of the US naval ship. It was
the bulbous bow of the merchant vessel which ploughed into the crew quarters
& machinery space area below the waterline of the warship causing flooding,
trapping and eventually death of seven US marines who may have been sleeping
at that hour.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Prima facie, the onus rests with the watchkeepers at the pilothouse of the
warship. As per the ROR, the warship was the give way vessel and the merchant
ship was the stand on vessel being on her starboard side and it was the duty of
the naval ship to safely manoeuvre her round ACX Crystal. But that was not to
be. However, a probe has been ordered and the details of the findings will
expose what transpired at the bridges of the two ill fated vessels.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Meantime a weird thought; the destruction of the naval destroyer by a
merchant carrier has once again raised the possibility of use of commercial
carriers in the modern terror/warfare. It started
with 9-11, 2003 and lately commercial road vehicles have become the favourite weapon of the terrorists to execute their sinister & deadly game plans. </div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Considering the size of ships, the trend could be scary and the damage
colossal when it comes to shores. MV ACX Crystal was just 30,000MT dead weight
ship. Let's consider a VLCC loaded with 300,000MT of crude oil having TOE of 3
million tons of TNT ie equivalent to 150 Fatman, the Nagasaki nuclear bombs. If the
vessel hits a port at full speed and with few detonators going off
simultaneously, it will wreck an unprecedented havoc in a vast coastal area.
It may probably do more damage then a state of the art aircraft carrier.
Increasing automation and unmanned ships may increase the threat as hacking the
navigation and manoeuvering software may lead to such situations at will.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
I think the world's national defense forces should do some brain-storming and construct a contingency plan to counter and prevent induction of
commercial equipment in neo warfare.</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-78743049480774433462016-12-29T00:24:00.002-08:002016-12-29T00:27:26.174-08:00Passing the Baton 2017<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
A year full of shocks and surprises is passing the baton to yet another
Happy New Year 2017.<br />
<br />
2016 was a turbulent yet interesting year for shipping. Oil prices and BDI
saw record lows in a decade. It was the year when bankruptcies, mergers &
acquisitions; all were happening at the same time. It was particularly a bleak
year for the offshore oil n gas industry mainly due to ingress of Iranian
barrels, while it was the big boys bullying at the box shipping. Dry bulk sector
got up after biting dust whereas, oil tankers maintained their average earnings.
The cause of poor freight show has been but not limited to mainly oversupply of
tonnage, which has grown leaps and bounds in the last decade.<br />
<br />
Its not only shipping, but our entire planet weathering winds of change. Be
it environment, politics, technology or lifestyle. While climate is seeking the
red corner, world politics is seeking the right-wing. ISIS, Brexit, Modi,
Duterte, Trump, Chinese territorial ambition, North Korea's nukes obsession etc, all indicate to
the hostile re-alignment of world forces in the coming years.<br />
<br />
In spite of the overhanging sword, Shipping Mario will keep cruising through the troubled waters, so I wish.<br />
<br />
A happy & safe New year 2017 to
all.</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com2tag:blogger.com,1999:blog-33270653.post-22015563028702315402016-01-25T04:03:00.001-08:002016-01-25T04:03:56.978-08:00Year of Monkey Business<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
New year 2016 has dawned but the world economy wears a fatigued looks and
businesses are yawning...<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
21st Century started with boom and bust of information technology. Boom or
bust, the information technology was to become the order of the day. The world
was swept over by IT at the speed of light. It transformed human behaviour and
life style. In bid to survive the metamorphosis brought about by the
information technology, it was imperative for each and every element and
structure of the human society to undergo a rigorous evolution process.
Obviously, there are some tough nuts in every walk of life. Every change
is resisted by inertia or status quo. The purpose of this inertia is to hold
the continuum thru the entire animation. But this change has to be rather quick
and abrupt. Hence a majority failed to accept and evolve. And this majority has
now turned rebellious (ISIS). We see the war clouds hanging over the centre
stage. Nature too has been increasingly hostile due to prolonging of the
previous act (industrialisation).<br />
<br /></div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
We are going through a difficult phase of change-over before we settle down
to the new dawn.<br />
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
IT era means, 80% of the world population languishing in poverty, ignorance
and destitute to fall in to the global main stream. To absorb this huge influx
into the existing mainstream would mean an incredible stress on natural
resources. Hence, the only logical solution would be :</div>
<div style="text-align: justify;">
1. a substantial natural resource friendly change in human lifestyle and
processes </div>
<div style="text-align: justify;">
2. a substantial shrinking of human population. <br />
<br /></div>
<div style="text-align: justify;">
</div>
<span style="text-align: justify;">The speed of the transition would have to be faster and thus it may be a
painful interlude before the paradise is regained. </span></div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-1489341861217303662015-10-29T01:54:00.001-07:002015-10-29T01:58:04.691-07:00One over-reaction leads to another<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Tanker market has just witnessed a grand Q3 of year 2015. In an
over-reaction to the US decision to finally lift the sanctions on Iran, crude
oil prices stooped to the levels they didn't deserve thereby setting in a strong contango mood in the market. The result was obvious - a mad rush for storage.
This sudden demand in tanker market has catapulted tanker freight rates to the
levels last seen in 2007/8.<br />
<br />
Some guys born at mid day (highly optimistic) are already crying the oil
will hit USD200pbbl from here. But the market indicators are suggesting
otherwise. Piling inventories, growing supplies, slowing economies, and
advancing technology are casting dark shadows over wishful optimism in oil
market. Besides, at some point in time, global warming and oil prices will tend
to have the same relationship as sugar prices in a diabetic world unless the
world resigns to the consequences. Thus sooner or later the oil traders will fall
on the backfoot and so would the tanker freight rates. </div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-48785399258407663442015-07-15T01:32:00.004-07:002015-07-15T01:36:58.523-07:00Subject to Verification, Iran's Trade Suspension Ends <div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Indeed a historic day for Iran and the rest of the world as Iran trades its
ambition to build nuclear weapons for its freedom to trade world-wide.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<br />
The deal, if not revoked midway, will prove good for the Iranian people. It
is also a good news for oil importing nations as the deal will provide stability
to the oil prices leading to energy security for the entire world. Opening of
trade will make Iranians more prosperous and with prosperity their demand for
goods will increase which will boost the world economy.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<br />
But the deal is not a happy news for:</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
<ol>
<li>Oil producers, as low stable oil prices means a reduced bounty for
them.</li>
<li>Other Middle-east neighbours who were assisting Iran's trade during
Sanctions era and having a windfall.</li>
<li>Israel, a hard core opponent of Iran.</li>
<li>Renewable clean energy sector</li>
<li>Tanker owners. Stable oil prices are not conducive to shipping activity.
Moreover, Iran has a healthy fleet of tankers, which will now be available for
WW trading.</li>
</ol>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-37671636169892391882015-06-02T00:56:00.001-07:002015-06-02T00:57:34.202-07:00WHAT IS KILLING INDIAN COASTAL SHIPPING<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<div style="text-align: justify;">
India is blessed with ample sea resources. But it is unfortunate that like
many other resources, our coast-line is highly under utilised. While other
developed countries have used the coastal sea movement of cargoes to a great
extent and the share of their coastal shipping hogs a substantial pie of their
total cargo movement, here in India the coastal shipping has meagre 7% share in
our total cargo movement. </div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
The bottle-necks are well recognised and established for ages. More so, (I
will go on to add that) these bottlenecks have been deliberately created by the
government to favour the rail and road transport lobby. Also, the existing major
coastal shipping players have no will to fight against the system as it suits
them and they are comfortable with the lesser competition status-quo.
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Nevertheless, increasing volume of domestic cargo movement and pollution
levels will beat the selfish interests of lobbies & syndicates in to
submission and coastal shipping will evolve as the leading share-holder in
India's domestic cargo movement.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
The coastal shipping bottlenecks are well defined for a long time now. Just
a brief revision hereunder:</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
<strong>Broadly:</strong></div>
</div>
<div>
<div style="text-align: justify;">
1. Not enough volume for sea transport</div>
</div>
<div>
<div style="text-align: justify;">
2. Not enough carriers to carry sea cargoes.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
The above two conditions hold causality relationship with each other.
Not enough sea cargo means less demand for domestic shipping, which in turn
would ensure a lean and mean fleet. On the other hand a meagre fleet i.e. less
supply means higher freights, which in turn leads to less demand. In order to
rescue domestic coastal shipping, we would need to break this vicious circle
causality.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
<strong>Why not enough sea cargo?</strong> </div>
</div>
<ul>
<li style="text-align: justify;">The lack of connectivity of non-major ports to the road and rail networks.
</li>
<li style="text-align: justify;">Lack of infrastructure: it is one of the biggest obstacles faced in coastal
shipping industry. The government has failed to develop infrastructure that is
expected to make shipment easy and efficient. Infrastructure involves
electricity, road network and overall area development which supplements the use
of this route.</li>
<li style="text-align: justify;">Lack of separate berthing facilities for coastal & IMPEX cargo vessels
at major ports and inadequate cargo handling facilities at minor ports.</li>
<li style="text-align: justify;">The lack of consensus between state and centre about appropriation of funds
for connectivity to non-major ports adversely affects the prospects of coastal
shipping.</li>
<li style="text-align: justify;">Absence of state maritime boards. Currently, only Gujarat, Maharashtra and
Tamil Nadu have a maritime board. This lack of coherence inhibits focus on the
development of coastal shipping across the nine coastal states.</li>
<li style="text-align: justify;">Lack of lucrative government schemes: Unlike other channels of
transportation, the government has not made any efforts to benefit coastal
shipping users financially. Companies using coastal shipments until now had to
face harsh and impartial taxes like no exemption from Income tax, customs duty
on bunkers, landing fees, etc.</li>
<li style="text-align: justify;">Slow and cumbersome process at Customs: The shipment process is extremely
slow and laborious compared to other modes of transport which are much faster.
Companies are unwilling to waste precious time in adhering to these
processes.</li>
<li style="text-align: justify;">Road & rail transport has an edge over water transport because most of
the production and consumption centers are landlocked. Also, it provides
door-to-door movement. Over the years, there has been substantial investment in
its infrastructure. Coastal shipping, on the other hand, involves
double-handling costs. </li>
<li style="text-align: justify;"><u>less supply of shipping fleet</u></li>
</ul>
<div>
<div style="text-align: justify;">
<strong>Why not enough Shipping Fleet?</strong> </div>
</div>
<ul>
<li style="text-align: justify;">Nonavailability of concessional finance to acquire coastal vessels </li>
<li style="text-align: justify;">Absence of competitive P&I instruments</li>
<li style="text-align: justify;">Absence of long term period charters to facilitate loans and financing of
assets.</li>
<li style="text-align: justify;">High import duties on bunker oil and spares </li>
<li style="text-align: justify;">High manning scales which increase operational costs </li>
<li style="text-align: justify;">Stringent specifications relating to construction of vessels, leading to
higher capital costs </li>
<li style="text-align: justify;">Incidence of corporate tax for coastal as against tonnage tax for
ocean-going vessels and personal income tax which discourages quality officers
from continuing on Indian coastal vessels </li>
<li style="text-align: justify;">Lack of policy measures to promote existing and new coastal shipping
players.</li>
<li style="text-align: justify;"><u>Less demand. Not enough sea cargo</u>. </li>
</ul>
<div>
<div style="text-align: justify;">
<strong>The Solution!</strong></div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Knowing the cause, solution is no brainer. Only thing we need is the WILL
to promote coastal shipping in India. It would be prudent for the government to
rise above petty politics of favouritism and appeasement and make policies for
the brighter and safer future of India.</div>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-67783120210713448072015-03-02T00:44:00.002-08:002015-03-02T00:51:21.742-08:00Achchhe Din (Good Days) are back<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<div style="text-align: justify;">
Ship-owners need not say cheese anymore.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Fall of Oil prices to USD40-50 a barrel is an unfortunate over-reaction
to oil's increased supply over the past few years. More so, when the demand
side has always been up and pickin.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
In reaction to current oil prices we are seeing steep drop in CAPEX into
upstream. At the same time there is gradual shutdown of the supplying wells. It
is nobody's guess but just a matter of time when the demand-supply equation will
grossly trip over in favour of the producers and the prices will quickly sprint
up to unprecedented levels once again.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Oil producers are vulnerable at present but the tanker owners are already
reaping a windfall. Big owners and traders are going in for mass
storage activity on VLCCs. For each dollar increase in oil price they
make usd2million on a V. Also, the Vs on storage duties means reduced
availability of tonnage for the spot trading market thus a high freight for the
sailing sisters. And also, a contango in oil prices leads to higher trading
volumes and demand for tonnage. So all in all "Achchhe Din" (good days) for the
tanker owners are here to stay until we see the oil prices stabilised to more
rational levels.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Not only the tankers but, toward the later part of the upswing in oil
prices, dry bulkers will also catch up with their envied sibling, as at those
high levels oil prices will push up the demand for coal and iron ore too. </div>
</div>
<div style="text-align: justify;">
<br /></div>
<div>
<div style="text-align: justify;">
No doubt, ship-owning business is not for faint-hearted. Latch on to the
roller coaster without missing a heart beat. </div>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-8150934092324594502014-12-02T03:42:00.002-08:002014-12-02T04:07:13.290-08:00Shipping Markets: From Solid State to Liquid State<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<div style="text-align: justify;">
Year 2014 marked the end of the second commodity super cycle of this century.
The signs started emerging during late 2013 when emerging markets started
showing signs of slowing down. By middle of 2014, all star commodities gathered
enough dust and started losing their value fast.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Iron ore, coal, silver, gold & crude oil; all have fallen
appreciably. Along with supply demand equation, a strong dollar also
contributed to their plight. The obvious effect is being seen in the shipping markets.
Dry bulk shipping is facing hard times in the freight market. However, tankers
have stood out as clear winners in this drought season. The reason being, the drop
in oil prices has more to do with excess supply than diminishing demand. Also,
the tonnage availability is at the lowest since 2011/12. A fragile order-book
and ever-growing scrapping activity has turned tankers into an endangered
species. From poor usd12.5k pd in 2013 to impressive usd30.5k pd average yield
in 2014 has buoyed the tanker owner's sentiments. The situation is expected
to persist through 2015 and thus the tanker rates are expected to remain healthy
for some time to come. </div>
</div>
<div style="text-align: justify;">
<br /></div>
<div>
<div style="text-align: justify;">
Caution: The better yield in the current spot market has a lot to do with the low bunker prices.
Any appreciable upside in bunker prices may lower the numbers considerably. But
for now, Tankers Ahoy! </div>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-3303928848269256012014-11-11T00:33:00.000-08:002014-11-13T02:56:06.043-08:00Pump Up The Jam - 2015<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="text-align: justify;">Start of this year, China was showing signs of fatigue and by the year end China openly complained of aches and tiredness. Whereas Japan, which was already choking, had to be put on a ventilator like US in 2008.</span><br />
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<div style="text-align: justify;">
In
the second half of this year, commodity prices started deflating due to over
supply. Gradually the prices of Iron ore, coal, steel, crude oil, bunkers
etc broke down. In an unexpected move, Japan's Central Bank pumped in tonnes
of Yen into the local market in bid to stop deflation by fueling demand and
lowering Yen in the world market to boost exports. The result of this quantitative easing will be out in time to come but we will surely see a domino effect in Europe. Wilting under a severe slump for past many years, European central banks will soon follow the suite as a last resort measure. The vibes have started emanating as OW Bunkers of Denmark declares bankruptcy. Winter(slump) is here can spring(QE) be far away.</div>
</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
In a
regional consolidation, China is launching "Shanghai-Hong Kong stock connect" programme. Also, China, Japan & India are trying to break the
ice and form a syndicate in order to survive the long winter.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
But for
now, slipping demand and growing over-supply spell a bleak future for
shipping industry. However, will to print and pump by the various central
banks comes as a fresh lease of life for shipping industry and economy in general.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Ben's experiment in USA has rendered QE as an effective
recession handling tool but I doubt its universal viability and long term
durability. In case of natural resource starving, Japan and Europe, it may
not reap the desired results. In the long term, advance technology will work
to minimise the use of human resources i.e. cut useful jobs and employment. On
the other hand, availability of easy money would turn them into bigger consumers. This double edge sword will eventually turn majority of human
population into 'drone bees'.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Matthew 5:5 (fifth verse of the fifth
chapter of the Gospel of Matthew in the New Testament) reads:</div>
<div style="text-align: justify;">
<b></b><br /></div>
<div style="text-align: justify;">
<b><b>Blessed are
the meek & useless, for they shall inherit the earth.</b></b></div>
<b>
</b>
<br />
<div style="text-align: justify;">
<br /></div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-18317698570059278272013-12-03T00:06:00.000-08:002014-02-06T00:06:08.223-08:00Is there balm in Gilead?<div dir="ltr" style="text-align: left;" trbidi="on">
Once again a midnight dreary, in the thick of
bleak December,<br />
Here comes the tapping Raven, rapping at my chamber
door.<br />
Desolate yet all undaunted, on this desert land enchanted -<br />
On this
home by horror haunted - tell me truly, I implore -<br />
Is there - is there balm
in Gilead? - tell me - tell me, I implore!'<br />
Quoth the raven,
`Nevermore.'<br />
<br />
<div style="text-align: justify;">
2014 is knocking at the door and the business world is
asking yet again, 'Is there balm in Gilead?'. And as usual, the nasty crow says,
'Nevermore!'.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Profitability is the key to survival of businesses. Blame
it on the Information and Technology. The very recipe needed for the genesis and
prosperity of business and industry has turned into its poison today. Free
flowing I&T makes it so easy for the supply side to match up to and often
exceed the demand, thereby routing prices and returns. There is no turning back.
The paradigm shift is clearly visible as the economic cycles are getting smaller
and sharper like diamonds. Not very conducive to conclusive growth of
businesses. The businesses will have to constantly adapt and evolve in order to survive the
shark jaw progression. Especially, the ship owning, where the operative costs
are so high, low returns can smother the owners over the period of time.
Business or no business, IT industry is making a big buck and Silicon Valley is
rife with activity once again.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Thanks to Benjamin Franklin for rescuing
the world economy thus far after the 2008 rout. The picture perfect has created
demand among emerging populace, which has worked like parachute and prevented
economy from hard landing. But sooner or later this money will have to make a
retreat and we have already witnessed a trailer of the aftermath recently, which
has exposed the underlying weakness of these markets. Nevertheless, the good
news is coming out of Persia. Iran’s melting on heavy waters is a positive
indicator for the world economy. However, there are many political factors and
vested interests at work trying to maintain the gravity of sanctions. On the
other hand, mounting tension in East China Sea over China's newly acquired
obsession of pee-marking the undefined territory in the region, is another cause
of concern for world trade.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
As far as shipping and logistics are
concerned, there remains a big Q-mark even in 2014 because of availability of
easy money which is still converting into marine assets ignoring the firm
indication that the human societies are developing an affinity towards
virtuality. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
On macro levels, the trends are grim, ungainly, ghastly,
gaunt and ominous. I personally feel, the move towards ONE EARTH-ONE WORLD may
prove fatal for the human society. This homogeneous army march in sync may be too much for the delicately balanced nature and resonate her off the hook before
moving into epilogue.</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-16598035801591721412013-11-18T21:48:00.000-08:002013-11-18T21:48:34.202-08:00Trick or Treat<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<div style="text-align: justify;">
Falling crude prices and rising crude demand has brought cheers in the
tanker market once again. Specially the VLCC segment freight rates have spiked
after the usual 3rd Quarter depression. VLCCs are demanding TCE of about USD50K,
which is about three times higher than in ebb.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
The current rally owes to the positive vibes like Iran showing signs of
compromise and Fed showing signs of maintaining the momentum and speed at its
money factory. Reduced fear factor has resulted in cooling the oil prices while
prospects of uninterrupted money supply has helped to push the demand. The single
biggest mover, China is taking advantage of the situation and guzzling on West African crude, a better quality crude than the Gulf sour crude.</div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div style="text-align: justify;">
<br /></div>
<div>
<div style="text-align: justify;">
The charterers are willing to dole a treat rather than be tricked by this
sudden surge in demand before the laid up tonnage cranks up to life and arrives to rescue them.</div>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-59633236836474110102012-12-19T23:36:00.001-08:002012-12-19T23:36:21.722-08:00No new year's day to celebrate...<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div style="text-align: justify;">
Once again emerging from the white backdrop is 'The Man in Red' with his load of greens.
Green that makes the world go round. The world which once rotated from
developed to developing in now in anti spin i.e. from emerging to sinking.</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
No doubt, the world economy is under going a metamorphosis. Incredible
demand potential from under world has heated up the war for resources and we see
the rising of the 'lesser god' as developed nations beat a retreat in order to
make way for the children of not so lesser god.</div>
<div style="text-align: justify;">
</div>
<div>
<div style="text-align: justify;">
At the turn of the tide, world shipping is dealing with its own problems.
Mainly of over-supply. Ship-owners just had another year of dangerously low
returns. Coming year does not encourage them either. However, the consoling
factor is that they are not alone in the fight for survival during this lean
mean period. While new building is already off the diving board, ship-breaking
will continue uphill. This two-prong action will bring some stability in the
freight market by year 2014. All in all, yet another year of hibernation for
shipowners before the sun shines.</div>
</div>
<div style="text-align: justify;">
</div>
<div style="text-align: justify;">
Notwithstanding the measures taken to resuscitate the world economy, It
would be wise for all participants, emerging or sinking, to use latest
technology to work on new solutions collectively. It is the time to discard
linear processes and opt for limitless cyclical processes. Renewable is the
keyword. Austerity is the way of life forward, not for saving buck but to save
our beautiful planet. Pumping in more liquid in the markets will probably rob us
of our last chance to mend our ways before its too late. </div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com2tag:blogger.com,1999:blog-33270653.post-5106611561687921022012-08-29T05:15:00.002-07:002012-08-29T05:28:57.188-07:00Global Warming - A boon for Shipping<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Deep blue of sea is replacing lifeless white of ice at poles. This global
warming development may be a cause of concern for the environmentalists but for
the world shipping it has opened up new vistas of opportunity.</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Following the Northern Arctic route would mean a saving of 22 days of
sailing and thousand tons of bunkers over the orthodox Suez canal route.
Russian and US naval escorts would make up for the Egyptian hospitality offered
enroute the usual passage. All in all, it's gonna be a jackpot haul to it's destination during the two months of August and September. </div>
</div>
<div>
<div style="text-align: justify;">
<br /></div>
</div>
<div>
<div style="text-align: justify;">
Nonetheless, it is too early for international maritime to put too many
eggs in the Arctic basket. Whereas, ice remains an uncertain show-stopper,
environmentalists are surely bound to throw a spanner in the Northern route.</div>
</div>
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-85374342859527550802012-06-20T01:24:00.001-07:002012-06-21T03:28:24.709-07:00Greek Austere Buffet<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: left;">
<span style="background-color: white; text-align: justify;">Antonis Samaras is at the buffet table ready to dish out a platter for ailing Greece. There
is a wide variety of buffet spread to choose from. But poor guy is limited
to the austere plain dishes only. As instructed by Dr. Eurounion, all rich &
succulent dishes are taboo for this diabetic nation, which makes it a difficult
task for Samaras to have his plate more than half full.</span></div>
<div style="text-align: left;">
<span style="background-color: white; text-align: justify;"><br /></span></div>
<div style="text-align: left;">
<span style="background-color: white; text-align: justify;">Nevertheless, with Evangelos of Pasok and Fotis of Democratic Left falling
in plate,
Antonis looks set to complete the formality of a simple course with
olives, cheese and some ouzo. This will provide much needed stability to the
markets for a while. But the new government will have an uphill task to please it's populace and uncle Scrooge at the same time in the days to come.</span></div>
</div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-65561601973382255272012-01-18T21:04:00.000-08:002012-01-18T21:04:16.328-08:00Gong xi fa cai!<div dir="ltr" style="text-align: left;" trbidi="on">
China is on soupy liquid diet and the impact is clearly showing up in shipping markets. Whereas, dry market has plummeted to lowest levels since 2009, the large bottoms slack in the tanker market has been picked up by the draconian appetite for oil before they close down for a Chinese new year.<br />
<br />
Persian threat to put a chastity belt around the busiest crude cunt before chinese new year is being seen as the trigger for the bottoms up in tanker market. <br />
<br />
Gong xi fa cai!</div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-45547949712544055502011-12-29T03:02:00.000-08:002011-12-29T03:43:27.125-08:00Happy New Year 2012<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
New year 2012 is knockin at the door to deliver a bag of bad news to the shipping industry.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Chinese authorities making much ado in allowing the giant bulkers to enter Chinese ports have finally given in favour of the new mammoth speices. Though an eventuality, it will spell doom for the inflated tonnage balloon by taking off several tonne-miles per trip.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
China yet again gets to the epicenter of the quake in the tankers market as China bags the rights to dig into Afghanistan and develop Afghan petroleum resources. Oil beneath Afghan high land may be a wild goose, but this may give them the direct access to Iranian oil to fulfill their pipe-dream.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
On the eve of the new year 2012, Iran is threatening to close Hormuz, the strategic oil passage controlling 1/6th of the world's daily flow of oil, over US sanctions, which instil a paralysing fear into the oil and shipping markets.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
All in all a three bags full for ba-ba black ships to start the happy new year 2012 with.</div>
<br /></div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-39517844440921395152011-11-21T22:45:00.001-08:002011-11-21T22:55:22.038-08:00Piracy Seminar at OBP-India Inaugural<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Human society sans crime is a wishful thinking. However, in civil societies the crime is intolerable when it gets on people's nerves.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Today, the Somalia piracy is not only getting on the nerve but it has almost crippled the shipping on the busiest east-west silk-route at it's focal point. The situation is alarming and robbing human society of money, morality, justice and sanity. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Falling in the no man's land, the definition of piracy & pirates is a matter of dispute till date. Meantime, taking advantage of the situation are the vested interests like terrorist groups, the underworld, P&I clubs, security agencies and other related services companies. On the other hand, the losers are common people, who are bearing the burnt of rising inflation due to huge additional cost building into the price of goods on account of piracy, besides the direct victims viz. shipping and the seafarers world-over, who sail in constant fear of being hijacked. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The need of the hour is to concentrate on Somalia piracy on priority basis without diluting the definition and scope of piracy, which would mean losing the focus from the seat of the fire i.e. Somalia.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Poor people of Somalia may not be the kingpins of piracy but they are certainly the hands and tools of the perpetrators of piracy in Indian Ocean. It is rather difficult to pin down highly influential kingpins in this corrupt world. However, it is relatively easier to cut their hands off or render their implements ineffective, i.e. the Pirates. <br />
</div>
<div style="text-align: justify;">
Barren land and lawless state of Somalia offers the most fertile ground for breeding pirates. Somalia piracy is inherently a law n order problem in a stateless country. Restoration of a lawful government and providing education and alternate employment to her subjects can alone bring a decisive termination to Somalia Piracy. But Easier said than done. This is no short term solution. Who's gonna tame the cat in the wild? Going by human history and psychology, there is always a severe lack of political will to address these multi-lateral issues. U.N.'s past record is not much re-assuring in such cases either.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Meantime, the current methodology used to counter Somalia piracy is vastly inappropriate. You don't need a B1 to kill a fly. A hand swatter is just the right choice. Similarly, induction of Navy as anti-piracy measures is an expensive and useless option when the little brother Coastguard is just suited for the job. Let coastguards of various regional countries co-ordinate and take charge. There is need to strengthen the piracy reporting network and intelligence sharing.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Deployment of armed guards onboard commercial vessels is scaling up the magnitude of this menace. It is like pouring honey onto pirate's pizza and attracting more bees from around who will be more willing to re-invest into the vicious circle. Yes, I am referring to Security agencies - Pirates nexus. Moreover, in circular causality, escalated use of weapons and force in defence has resulted in higher number of attacks and violance by pirates.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The other dark vistas which Somalia piracy presents are a possible blockade to east-west Freetrade, a proxy reason (an excuse) for the presence of western navies in the happening place called Indian ocean & thirdly but not the least the emergence of Piracy industry whose proceeds are flowing westward. I would not like to exercise the bellows on these corners but remain focused on our efforts to bring in law and order to the sorry state of Somalia. </div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Time is of essence as there are families of seafarers, who with bated breath wait for the safe return of their kin sailing in turbulent seas. The time is running out, so is our patience...</div>
<div style="text-align: justify;">
<br /></div>
</div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-43883988132814024582011-09-30T05:46:00.000-07:002011-09-30T05:46:42.839-07:00Tanker Owner's Vs Charterers<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
Soon after the financial melt-down in 2008, the demand tripped suddenly. Hunter became the Hunted. Charterers and Tanker Owners assumed predator and prey relationship. The owners tried hard to evolve during this period and they did to some extent but unfortunately they failed to give up their obsession to reproduce. This led to the herd growing out of proportion, which in essence was the very cause of the pack's vulnerability to start with.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Now the situation is so precarious that the prey of yesterday has turned into a game. Charterers have turned trigger happy. Owners will soon have to contemplate a mass sacrifice in order to reduce the flock back to a pack so that the hunter becomes the hunted again.</div>
<br />
</div>
sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-11461069464402252012011-02-28T03:16:00.000-08:002011-02-28T21:39:52.761-08:00Rising bunker prices, falling freights<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: justify;"></div><div style="text-align: justify;">During the crash of financial markets in 2008, shipping freight market was one of the serious casualties. With broken back bone, chances of survival were low. However, the crippled shipping industry survived the fatal blow due to dampened bunker prices and a series of immediate preventive and corrective measures taken by ship-owners over the past couple of years. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Slow steaming, weather routing, hot and cold lay-ups, scrapping of older tonnage and other austerity measures taken up internally by shipping companies were among them. I think the most effective of them was the idea of slow steaming pioneered by Maersk Line. It was like killing three birds with a single stone. It reduced the bunker consumption, increased total steaming days there by collectively creating slot for more ships with in a reduced demand and it also addressed the environment issues by reducing carbon emissions. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Besides, there was all round global economy damage control. Demand slowly started coming on line, mainly from emerging markets. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">In spite of all that, unfortunately, over supply of vessels is killing the freight market now. Bunker prices have hit the roof, yet this hike is not reflecting in the freights. Besides bunkers, increasing insurance (piracy) premiums are adding up hugely to ship operator's cost. Smitten by the golden era, ship-owners failed to get rid of their fatal attraction for the new buildings. Despite a continuous flood of ships leaving slipways, Orderbooks are full with fresh orders for the next couple of years.</div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">Going by the order book, it seems the demand -supply equation is not going to favour owners until 2013. No doubt, with heat of liberalization spreading fast, demand has potential to get in exponential zone. But we are now at a stage where consumer base along with money base has expanded many folds (thanks to uncle Sam's printing obsession) and at the same time supply elasticity remains low, thus giving rise to Price = e^Demand ie any small increase in demand is countered by large increase in commodity prices. A situation, which is not conducive to economy or shipping. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">In addition, environmental concerns are grave. Tough emission regulations are weighing heavy upon already weak shipping industry. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">All in all, shipping has become an unprofitable business in the recent past. It is a matter of time, when investors will start running away from the sector in search of greener pasture. </div></div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-60371035200316290782010-09-24T05:04:00.001-07:002010-09-24T05:05:20.237-07:00Long live Somali PiratesSomali piracy attacks are expected to escalate as the monsoon winds dissipate and it is easier for smaller boats to chase ships. <br />
<br />
The commandos and pirates appreciate their respective roles in the food chain. Long must live the Somali pirates for the survival of marine commandos.sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0tag:blogger.com,1999:blog-33270653.post-52462447733929673182010-09-03T06:59:00.000-07:002010-09-14T04:04:28.606-07:00All's well - keep it up<div style="text-align: justify;">When tanker genius like John Fredriksen says, "Tanker rates, I don’t have much belief in.” , there is nothing much to read in but gross pessimism that has set in the market. The roaring ocean winds, burning and sinking rigs etc, which used to be a big trigger for the market to take off, have failed to lift the sentiments this time. Growing unemployment of these assets at sea, combined with passive crude oil prices are having their toll on the sentiment in the tanker market. </div><div style="text-align: justify;"><br />
</div><div style="text-align: justify;">On the other hand, the dry index took off after a scary bungy jump last month. The lift is being attributed to renewed Chinese appetite for iron ore after India's partial ban on the export of the ore. Also, the prospects of excessive wheat exports out of USA this year as result of the poor Russian crop, have cheered up the dry bulk market. But the main reason for the current optimism in dry market is probably the bounce back of finance markets in spite of a threatening horizon. These are times, when many of the US economists are predicting a double dip. The shipping markets would not be able to sustain another trough in finance markets. There is a faint hope of survival, on which the markets are locked on and homing in. Wish they could reach shore's safely on the fragile hope. </div>sudkjainhttp://www.blogger.com/profile/12988671970983151613noreply@blogger.com0