The BDI @ 298 and the Shipping industry ‘shaken to its foundations

Banking, Comment, Energy, Markets, Shipfinance, Shipping Indices, Statistics, Stock Markets — By on February 4, 2016 at 7:07 PM
John Faraclas

John Faraclas

Oh well, a grounding expected to happen; the BDI index creates a niche platoon for shipping operations. John Faraclas comments the day when the BDI went under the 300-point mark:

Accepting the fact that nothing is certain and no business law and practice is fixed, was the best preventive risk assessment for those now ready for the leap forward amid a chaotic world order and  a total , unavoidable global financial collapse. We can all hear the drums of War, the Father of all!  Indeed, only those with an appropriate and effective RWAD will survive! The Shipping Adventure now becomes more than an interesting business thriller!  Economic wars are far more devastating than those on the ground or at sea or up in the skies; that comes as a conclusion. It’s like a blockade; you must know how to break same or…simply you are lost!

I am not pleased with the outcome of the Meeting on Syria in London today; there should be concessions and the entire truth must come out, otherwise I fear for the worse. Continuing the messy situ within the wider belt from Gib to North Korea, same can also put shipping’s straits in danger; you never ever know. Jeopardy from either side will constitute an all-out war!

As we have said in previous reporting with respect to cash flows and good balance sheets: “…if a shipping company  gets its cash flow right  not only in saving cash for other …sea battles, but also this provides itself with the opportunity to do better than the competition.”  Today a world of opportunity is in front of us, but very very few will materialise the chance! Also remember what Sun Tzu said: “Discard hard and fast rules. Victory is the only thing that matters, and this cannot be achieved by adhering to conventional canons”. Being more …ruthless, I have said the old Chian maxim: “Unless a Beast eats a Beast, never becomes a Beast”

So with five points down since yesterday, the BDI collapses at 298! What a downturn! The Capers down one at 208 points, the Panamaxes “saved” the day with five points plus clocking 289 points! The Supras (BSI) down nine at 271! Finally the Handies and the respective BHSI crashes below the 200 point mark at 197!

The Wets too join the downfall and the last published BDTI and BCTI were losing six and ten points respectively standing at 802 and 615!

The Geopolitical front with the Migrants Saga going from worse to worse and the preparation of a wider War insists to be ultra-careful but ruthless too to ensure your leap forward, as mentioned above, is successful! The War will happen without any pre-warning; like a storm that we didn’t study enough through our Met Service’s historical data. It will be an asymmetrical war coming from many sides.

P.S. Downturns provide the greatest opportunities; ensure you don’t lose this excellent and one-in-a-life-time opportunity! It’s the best buyers’ market we have ever witnessed!

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