Dry and Wet Shipping Markets: On the drop…

Markets, News, Shipbuilding and Shipyards, Stock Markets — By on May 23, 2014 at 9:29 PM
John Faraclas

John Faraclas

It is normal that in the summer period  – which runs from end of April to early September, particularly for the more dense populated northern hemisphere, that the markets are down, but these days the markets have more or less collapsed, proving once again our long time standing prediction. When we say collapsed, not from the point of view of quantity, as there are million of tonnes of cargoes, but from the earnings point of view, be it time charter or per tonne.  We are already in the summer of discontent.-

This is the nineteenth  overview of the shipping markets and world events by John Faraclas from www.allaboutshipping.co.uk in Athens the 23rd of May 2014: 

The BDI closed down two points since yesterday the 22 May at 964 points and 63 points down since last weeks 1.027, suggesting: no strength to remain above the 1, 000 point mark! Overall this is 1, 263 points down from December’s 2013 last closing, a 56.9 centum drop! I have to remind you these figures and percentages so that you know the real drop; many thought that things will be reversed; sorry gays, sorry dolls, you have spectacularly failed once again.

It was the Panamaxes keeping the “pace” but that evaporated and the Cape size tonnage “come back” today a bit more formidable, but nothing overall spectacular.

  • The BCI,  closed up 56 points since yesterday  at 1, 358  which is 172 points down since last Fridays closure at 1, 530… interesting times again for the Capers…
  • The BPI was down 27 points since yesterday at 1, 001, just a point above the 1, 000 point mark. Last week it was the size “dominating” the indices…
  • The BSI down six points at 866 which is 33 points down since last weeks 899 points…still under the 1, 000 points…
  • The BHSI  remained flat at 480 points, which is also five points down since last Friday’s closing of  485 points…
  • The wets now:  A 15 points plus brought the BDTI index at 684 points  which is 28 points higher than last week; good omens…? The BCTI  was down two points since yesterday at 535 whilst this is three points up from last week’s closing… Interesting levels. We will wait and see the energy game and how same and the climate, coupled with geopolitics affect the wet trades… and conversely the wet indices.
  • The Box trade  at the same levels with last week.

For those objecting our views, may I remind them the US$ 91 mio that a second hand Panamax vessel got in 2008 whilst the newly builds where at US$ 56 mio and the t/c rate was US$ 80, 000 per day, yes you are reading correct: eightythousanddollars per day, whereas now we talk US$ 6-9, 500!!! It is though, as he have said, a good time to go out on a frenzy newbuilding buying spree…

The China Shipping Group $8bn deal with China Development Bank will further create socks in the Markets as these types of finance distort the markets creating unfair competition. When we say free market neo-liberal economy we really mean this; the rest will make the world go crazy and a  bad landing will be inevitable…

Wonder what was discussed at the Baltic’s Chairman’s reception last Thursday…

We all await the UKRAINIAN Elections result and hope we will be able to respect same as rumours say Putin will follow suit too! Obviously we reiterate our view of what happens and of what will really happen in the entire area… Watch this space.

On the South China Sea front things are escalating so expect turmoil there too.- Add the Malaysian Flight MH370 and see what happens when the truth is known. We carefully watch what is being said and from whom is being said, but expect a messy ending one day, we repeat one day, when the truth is made public… Defending geopolitical interests is one thing; making mistakes and not admit same can throw you overboard no matter how powerful you stand now; there are turning points too, and life’s twists and turns coupled with Nemesis can have nasty surprises to all those arrogant business hooligans, including the politicians too…

In Europe elections are underway and as you’ve heard live from Brussels yesterday in our quickie report, Europe, amongst others, needs a constitution, otherwise there will be mess…

Posidonia 2014 approach, so get ready!

 You can also listen to the video herebelow once same is on, log on and enjoy; have a nice long weekend enjoying the Bank Holiday in London too!

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