Tag: Pshay

Has Oil Contango Spread to Shipyards?

first_imgzoom South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) will build four very large crude carriers (VLCCs) instead of two LNG carriers for an unnamed Oceania-registered client, the shipbuilder said in a stock exchange filing.DSME received the original order for the LNG carriers back in October 2014, with the contract valued at KRW 455.7 billion (USD 412.2m).The new contract for four VLCCs is worth KRW 430.6 billion (USD 389.4m).DSME did not provide any details regarding the specifications of the newly ordered crude carriers.The switch might have been prompted by the recent trend among fuel traders to charter supertankers and store cheaper crude for future sale.The current rates for VLCCs on a Persian Gulf-North Asia route are about USD 69,000/day, while the rates in the time charter market span between USD 33,500 and USD 37,500 per day.World Maritime News Stafflast_img read more

Read More
Off road tyres on the web

first_imgAgora Tire has added to its website (www.agoratire.com), what it claims is “the first ever spot market price index for OTR tires.” The company says it is making “pricing available in order to establish a benchmark for fair pricing. [It] has taken on the responsibility of providing this information to the OTR industry.” Says Brad Harris, President of Agora Tire, “We simply felt compelled to provide this knowledge to the end-users in the industry in the midst of all the chaos in the market.”Assembly of the pricing chart on the Agora website requires daily input from scores of vendors, manufacturers and other suppliers buying and selling OTR tires in the spot market. Agora staff input the data and a custom database compiles and sorts the data. Reports are run that show the average monthly pricing by size and tire type. Says Harris, “To our knowledge, this is the only OTR tire price index that is available to the public, and its no secret that it was sorely needed.” What Harris refers to is the shortage of OTR tires over recent years and the subsequent escalation of pricing, sometimes up to four times what would have been previously paid for the same tire. “We’re committed to continuing to help end-users by providing this tool for a more stable business environment.”In fact, Agora is willing to go a step beyond providing the general pricing index. Harris says, “We also have the capability of doing more detailed analysis upon request. For instance, if an end-user is preparing to negotiate a sale and needs a pricing index for a specific type of tire that isn’t listed on our website, we can help them out.”While the Agora Tire price index is a welcome reference tool, Harris cautions OTR tire suppliers and end-users not to use the index as the sole means for determining selling prices. The index is a useful guide, but it can’t capture buying or selling practices and nuances that are unique to a given business and/or relationship. Says Harris, “Its not that we lack confidence in the accuracy of our numbers. There are multiple dynamics that could contribute to a higher or lower actual sales price. The real purpose of this index is to provide a tool for benchmarking historical pricing and predicting future trends which will enable anyone engaged in purchasing or selling OTR tires to make better informed decisions. Supplier and end-user negotiations will still dictate final purchase agreements between a given supplier and end-user.”last_img read more

Read More