Markets challenged by a dropping BDI

Banking, Energy, Finance, Markets, News, Shipfinance — By on January 30, 2015 at 5:30 PM
John Faraclas

John Faraclas

Our fifth  weekly recapitulation of the markets, their respective main indices and world geopolitics affecting same in 2015, tonight Friday the 30th of  January, with John Faraclas of AllAboutShipping in London. 

  • After the Midweek Blues, the BDI closed earlier this afternoon at 608 points, down 24 since yesterday creating yet another  (low) record since yesterday and 112 points down since last week’s 720 points. Collapse, or more …collapse is expected? If on Monday 2nd  of February the BDI fells below the 600 points mark-barrier, then things will not only get sour, it will be detrimental! We need a market of at least 2, 000 plus points to turn the wheel of fortune…
  • The BCI closed down 46 points at 679 points which is 208 points down since last week’s 887!
  • The BPI was down 42  points at 508 points which is 177 points down since last week’s 685 points!
  • The BSI was down 14 points at 585 points which is 65 points since last week’s 650 points!
  • The BHSI was down eight points at 380 points which is 38 points down since last week’s 418 points. 

So all dry indices where on a downturn and many barriers broken. A record law never ever experienced before…CAUTION! CAUTION!  CAUTION!

  • On the wets now, the latest reported BDTI was 868 points down 2 since its last one and 66 overall since last week’s 934. The BCTI was the only index with a plus, a plus 2 points at 681 which is 31 points down since last week’s closing of 712 points.

The price of oil remains at region US$ 45… and things aren’t looking good for obvious reasons… Did I hear you say shale gas…

The Liner trade struggles but there are opportunities if you know what I mean…

LNG for many will save the day. Organised and well educated/trained  crew is the name of the game! 

Ports need a facelift in many places to meet the requirements of new ship sizes and multi-intermodalism.

The Geopolitical front continues, still,  to be as per our predictions with: 

  • The UKRAINIAN saga now gets critical and we reiterate; there is more to come!
  • Europe struggles with its own internal problems and the Russian factor… which is trying to destabilise and vice-versa… Mrs. Merkel has a lot to do! Bottom line: we need a secure-feeling Russia!! Never forget this! It will be for the benefit of all. Aggravation will lead to escalation and then…
  • The Greek Elections are a fatality as, the new party in power SYRIZA and its coalition partner ANEL (Independent Greeks) must make or a break. For a start, SYRIZA wasn’t Ready Willing and Able to take over and Deliver as well as swiftly govern but uses petty party politics. They must get their act together as the Greeks who voted for them expect the lot!!! Arrogance and revenge will spoil the “broth”!! The main opposition with Samaras are also to blame for many things particularly in not being able to see outside the box… Pity!  Greek Shipping must remain as it is and the Greek Shipowners all through the ten millennia of greek shipping have always supported their nation in every respect! Their contributions speaks of itself in all aspects of Greek and International life! There are so many reports on Greek Shipping these days and here  are two to enable you see what is going on.

On another note we clear our position that Greece owes nothing. Let the lenders officially tell us under which proviso they continued to lend money to the corrupt -as it is proven from the court cases in Greece and those behind bars, regimes in Athens. Who embezzled the money? Why should the Greek people suffer? Under which risk assessment parameters they were lending money? Did they really monitored the situation? This is what SYRIZA in particular and its ANEL coalition partners should stick on! Let’s see their arguments in winning this case. This is the real issue! The rest is, with all due respect, nonsense!

  • The Middle East gets worse in all fronts: Libya, Iraq, Syria to name but a few. ISIS must be halted!!!!
  • The Marine Money event last Wednesday was more than a success!
  • Get geared for the BCA Afrimari event on the 4th of February.
  • Remind you to get geared for the Hellenic Engineers Society of Great Britain 20th Anniversary Dinner on the 7th of February at the London Hilton on Park Lane!
  • Check the interesting London Shipping Law Centre Events.
  • Log on to see our many conferences and events in our UPCOMING Events box!

You can view our live reporting video herebelow; have a nice weekend, and mind the weather

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