The true cost of the BDI at 577…

Arctic Shipping, Breaking News, Energy, Markets, Shipfinance, Shipping Indices, Statistics, Stock Markets, Trade and Commerce — By on February 3, 2015 at 10:53 PM

IMIF Baltic 01 July 2013 001

  • How much does this 577 points of the BDI today and all other Baltic Indices affect the markets?
  • Are the brokers to blame? Was their advice conned?
  • Are the geopolitics that we owe this drop?
  • What does this means to the Shipfinance world? How are the Funds reacting? Are bankruptcies looming in the background?
  • How many companies will remain in the turnaround?
  • What happened over the last six years after the total collapse ? (from the 11, 747 points down to 662, the “correction” above the 3000 points, the further drop at 647 and now…at 577 !)
  • So is it all these downward figures due to the world economic recession, which despite the cosmetic policies is a ticking bomb ready to explode and floor down the indices, or something else?
  • How will shipowners  adapt, both in the tramp as well as in the liner sector, whether listed or not?
  • And what about the shipyards?

That’s one way or another the most FAQed questions we collected from the main shipping centres as the damages in the shipping industry, finance-wise is set to reach US$ 1 Trillion!

The good thing though is that the few healthy shipping companies are going for a buying and ordering newbuilding ships spree; what they know that “you” don’t…? Herebelow are some interesting issues:

  • How many economies will become unsustainable due to the drops in the price of oil?
  • Is the iron ore five year low/ drop to US$ 62-63 per ton anything to do?
  • Freight rates are down despite the growing demand for dry cargoes and boxes…why?
  • The most important though question is: Who can understand shipping? Nobody asked this question!
  • How many shipowners are ready for the Arctic Circle’s lucrative business and who will enter there? (expect another crisis for the many, but nothing will stop the well geopolitically placed ones!)

The pagans of Wall Street know nothing about shipping, transport et al. They have “allowed” a corporate financial chaos to be the name of the game… this now backfires and only a war can settle the score… “War father of all: if you don’t destroy you cannot rebuilt; this is the pitiful message in (business) history”! To succeed in our industry, you must make things happen!

Always remember the old profession of tastemakers… testing the…”water” and the winds of Pandora…is very important when going to surf… as very few will re-surface after this crisis!

For the record, the BDI was down at 577 – 13 points since yesterday, the BCI down at 663 (-2), the BPI at 454 (-26), the BSI at 556 (-11) and the BHSI down at 326 (-6). Woooooow eh!

The wets made waves with a glimpse of the BDTI at 894 (+31 !!) but the cleans and their respective BCTI was down at 669 (-9).

We are pretty sure that you are studying many reports  lately and have consultants to advise you; but always remember: “What you do not know you cannot control” and “News is what they don’t tell …you!”

We are more than pleased having predicted this market cycle (..err oval) and giving the right view to our viewers and supporters all these years. We are more than pleased to be honoured to have our views live on TV and that was the right view, as the figures proved all along, to the detriment of the hoi polloi (gurus and prophets) how correct we have been.

This shipping crisis is like financing without guarantees Greece; for forty years, under which proviso the lenders where giving money? And now they demand these money back? The lenders are wrong! Equally wrong are the shipfinancing banks who continued to throw good money after bad!

We look forward to your comments; Friday is approaching for our weekly recap; the Chinese New Year has a lot in the bag too. It’s after all the year of the ship… err the sheep, which begins on the 19th of February…

P.S: By the way, this is the best time to get in the shipping saga and the best time to built ships; a buyers market, time to punish the banks, the brokers and the shipyards for the scam they set up. The die is cast: The Funds are stepping in! We will be pleased to assist any serious interested party and properly direct same to success via a clients consulting shipping group.

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