Indian Ports Buoy by Healthy Growth in Cargo
Indian port sector players will continue to experience healthy growth in cargo in the near term, PTI reported quoting rating agency Icra. Traction in Inland Waterway projects will open up several business opportunities for the port sector players. "Over the medium to long term, cargo growth is expected to gain further traction driven by domestic requirements of coal for power and other sectors, crude oil, for meeting domestic petroleum requirements and containers, given the cost and logistical advantages associated with containerisation." Icra said in a statement. "Port sector players will continue to experience healthy growth in cargo in the near term…
India's Coal Imports to Jump 19% in 2014/15
India's coal imports are expected to jump 19 percent to a record of about 200 million tonnes this fiscal year, Coal Secretary Anil Swarup told Reuters, as power companies add capacity to meet rising demand even as millions go without electricity. Shipments into the world's third-largest coal importer are, however, likely to slide back to about 160 million tonnes next year starting April 1 as state-run Coal India Ltd and private companies ramp up output, Swarup said on Tuesday. India, which buys most of its coal from Indonesia, Australia and South Africa, is targeting to stop imports of power-generating thermal coal in the next few years though purchases of high-grade steelmaking coal will continue.
Indian Ports' Coal Import on the Rise
India's major state-owned ports handled 17 percent more imported coal in the fiscal year ended March, according to data from the Indian Ports Association (IPA), as its coastal power firms stepped up generation to meet growing demand. A rush to add power capacity after years of under-investment has forced Indian generators to increase coal imports as state-run domestic monopoly Coal India Ltd has struggled to meet demand. Coal-based power generation rose 8 percent to 587.64 billion kilowatt-hours in April-January. The rising demand from India, Asia's third-largest economy and the world's No. 3 coal importer, has helped coal producers in Indonesia and Australia cope with global oversupply and a price slump.
Drewry's Dry Bulk Insight
Capesize difficulties countered by smaller vessel gains. Drewry Maritime Research’s latest Dry Bulk Insight report published in Januray highlights the changing fortunes of the market. December saw a large drop in the Drewry Hire Index. The dip occurred mainly due to a massive decline in Capesize segment freight rates. A lack of cargo and an oversupply of vessels led to the Capesize index almost halving in December. This depleted Capesize index was incorporated into the Drewry Hire Index causing the drop, which was tempered by a rise in handymax and handysize rates. Grain trade supported the smaller vessel segments with rates remaining firm in the East Coast of South America. Handysize rates for transatlantic round voyages increased from $4,868pd to $4,900pd, marginally up.
