Continuous uncertainty keeps the markets stranded

Markets, Sales and Purchases, Ship Demolitions, Shipfinance, Shipping Indices, Statistics — By on February 19, 2016 at 10:39 PM
John Faraclas

John Faraclas

Despite the plus three and the 24 points since last week (BDI@291) the Baltic Dry Index standing  today at 315 gives you the picture of the actual situation prevailing in the shipping markets. John Faraclas recaps the market:

The two main drivers of the Dry Market, namely the Capers (BCI – 2014) and Panamaxes (BPI) were down 13 and three points at 207 and 355 respectively.  Overall though there was a plus week at eight points for the capers and 31 for the panamaxes, but these figures don’t count at all given that all shipowners have to contribute for the ships to break even! At best you need US$ 2, 500 a day…

The BSI and BHSI were up 16 and five points respectively clocking 286 and 198 – that’s a plus of 45 and 16 points since last week’s 241 and 183. Same situation applies here; shipowners have to poor money as the DRC (daily running cost) cannot be met with these freight earnings, be it charter or voyage basis

Stranded, stranded, stranded. With more newbuildings coming out from the yard s until the end of the year- despite slipping,  the situ remains bleak.-

The wets were on the down side with the last published BDTI and BCTI standing at 806 and 526, that’s minus one and two points respectively. Down over all from last week seven and 15 points.

The price of Oil as you read this is below US$ 30….

Geopolitics and the world economy do not help either and as we have said yesterday, things are getting sour. We foresee break-ups in alliances and warring cases which will be detrimental for the trade. Things might get off-hand and chaos will govern. No one can hide anymore the despicable economic situation of the masses, the total economic and financial failure world-wide. The politicians cannot perform: see the way they are still trying to tackle the Migrants issue; the oxymoron being the charity organisations being in reality in cross-fire… Shame!

It remains to be seen how the well placed will go ahead  in their epic sea-battles and how those unable to tackle the prevailing situation how they will vanish. The die is cast. Meantime we reiterate our position, as in every report, that this is the best market to acquire tonnage! Ensure you have cash reserves or one in a million there is a bank or financial institution or fund or equity investors, that understands shipping!

One should remember to master the art of timing. On this issue of timing, we have warned our readership ever since this medium was launched and personally since Spring 2008 in writing, as always, gave the final warning*. I repeat: Master the art of timing next time you set sail… if you are still around…

* Knowning when is the time to sell your ships, before you regret everything, as it happens now.

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