Half way through 2014 and the market is still sixty centum* down…

Energy, Markets, News, Piracy and Terrorism — By on July 4, 2014 at 11:47 PM
John Faraclas

John Faraclas

Half-way through 2014 and the market remains more or less down, a bit frozen if I may say so, despite an optimism in the air… This twenty-fifth overview of the shipping markets and world events by John Faraclas from www.allaboutshipping.co.uk in London today, Friday the 4th of July coincides with America’s Independence Day 238 years ago back in 1776, – what a day! Despite the ongoing uncertainty and volatility in the Cape and Panamax sizes, one thing is for sure, as we are in the fifth more or less year of an overall down market: the market is now looking promising!

The BDI closed up just three points since yesterday to 893 following a stagnation with the same figures in the region of 890, which is for the first time a good proportion, i.e : up 62 points since the 27th of June, at 831! Still under the 900 points barrier but it might change if the “rally” continues, but NOT to spectacular levels, so hold your breath. Once again this is an overall 1, 334 points below December 2013’s closing of 2, 227 points, a fraction below the 60 centum level.-

  • The BCI, closed down 71 points since yesterday to 1, 864 points which is 91 points up overall since last Friday’s 1, 773 points. The Capes now are coming down…as
  • The BPI was up 83 points at 640, reversing last week’s downwards trend of 419 points and let’s see. Again we have to mention: it doesn’t mean anything overall as either the Capes or the Panamaxes to go up or down that the market is sustainable.- At last the BPI went above both the 500 and 600 marks but still lagging behind the 1, 000 points which will be the beginning of the promising markers mentioned above.
  • The BSI was up just two point at 682, and up 4 points since last week’s 678 points…. Again far below the 1, 000 points barrier…
  • The BHSI at 403 points down 1 since yesterday but also down 17 since last week’s 420 points. Again we are below the 500 and 1, 000 points barriers….
  • The wets again a surprise…yet again with the BDTI up 3 points to 750 which is up 27 points since last week’s 723…the BCTI was down 6 points to 538 but up from last week’s 522 which is a…good plus 16 points….

* Calculation based on the last closing of the BDI at the end of December 2013.

We reiterate our view that this is the best market even for new start-ups! 

The World Stage now:

  • Iraq: The mess is worse!!! A stealth policy is needed. The northern Iraq becoming soon a free Kurdistan state will trigger the opening of the Middle East zone’s Pandora Box… Just wait and see, and coupled with the Islamic State’s sage, things will turn sour!!! ISIS to be watched.
  • Ukraine as we predicted might explode more with different modus of multi explosions… Be careful…
  • Italy took over from Greece and will be steering EU meetings for the next six months. A difficult task will be to keep the United Kingdom in Europe!
  • Greece: the hydrocarbons time has come! A great event at London’s Hellenic Centre, the pre-launch event for “Greece Offshore Licencing Round 2014” !
  • Tough times in Europe and caution for all. If there is a revolt due to ill treatment of various countries vis-a-vis their debts, the citizens who had enough during the last 4 to  5 years of austerity and ultra unnecessary taxation will revolt!!!!
  • Threats for attacks by terrorists et al are on the way and lets be on alert. Not a nice time amidst the summer vacation…
  • Andy Coulson was jailed after being found guilty of plotting to intercept voicemails between 2000 and 2006. Interesting point as we are very sensitive in the Shipping Industry as there are rumours of similar practices…
  • The Housing Market in the UK continues to send further warnings….
  • The Holiday tip is for Bulgaria’s port of Sozopol in the Black Sea this time, something different which will overall please you after your visit there.
  • A few Banking scandals with that of BNP Paribas’ sanction-busting fine of US$ 8, 973, 600, 000 making waves, as did later on Sarkozy’s new saga….
  • The world Cup in Brazil and Wimbledon still on with surprises in both events! Sooner or later we will know the new winners and the party will start!!! The Tour of France too another major event!

Have a nice weekend and enjoy the overall lovely British weather but also, all the best to all of our viewers world wide! Lastly, as the world celebrates in its own way the 4th of July, lets see America capitulating on this anniversary by flexing its muscles to achieve world peace and order; its a must Mr. Obama!

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