The attractive low BDI now makes waves…

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John Faraclas

John Faraclas

Amidst the economic and geopolitical turmoil one should not lose the appetite for gains; John Faraclas explains:

With plus four points, the BDI at 322 is more than an attractive component to invest if you are capable these turbulent days the world of trade and transport lives!

The Capers were down three vital points with the BCI standing at 186, the Panamaxes remained steady with some forces trying to pull them down. At 346 the BPI is dangerous… Supras  continue to enjoy the plus double digits and today got another 11 now standing at 321 whilst the Handies and the respective BHS Index gaining three clocking 206; a deep breath being above the 200 point mark…

The wets continued the overall fall and the last published BDTI and BCTI stood at 779 (down nine) and 522 (down two) points respectively.

The price of oil (WTI) fights to remain above the US$ 30… Geopolitics and control will be paramount on what the energy issues will bring…

Geopolitics affecting shipping:

  • Alarms from the southern hemisphere as the South Africa’s economy is in crisis…
  • In the Far East Fukushima is back in the news; caution and China expected to make announcements on its economic situ.
  • Australia in “consolidation” with frozen wages and problematic mining future…
  • Did I hear you say Peruvian oil spilling in the Amazon…?  Morales could have saved the day. In neighbouring Brazil, the Olympic fever is on!!
  • The world is eager to see the new Panama Canal ready as soon as possible…
  • Cubans are eager to see Obama landing on the most important island for American politics…
  • The US presidential election begins to warm up…
  • Eager to see what the Syrian ceasefire will bring for the entire region.
  • In Greece and Italy the Migrant saga continues, but same will only stop if a Naval Blockade is imposed on Turkey; the rest is pure nonsense!!!! The European Union’s unity is at stake. Deregulated politicians must stop accusing the Greeks on the issue of the Migrants overflow. Enough! Equally the current Greek coalition must make or break. We will side with Nemesis and will adhere to this! The holiday’s season is ante portas; we need peace of mind all over the Greek territory!

Coming back to the shipping market situation, as I have numerous times mentioned in the past, the wrong doers – shipyards, sale & purchase brokers and bankers, must be punished for bringing this situation and stalemate!

The shipyards have no option but to accept low prices, better terms and exceptional constructed vessels; the S & P brokers will lose the millions of commissions and bonuses and realise that greediness had its day – sorry guys AND dolls, but that’s it. As for the bankers, well you can see what’s going on.   The iconic Jim Davis of IMIF was warning all along on this coming situation… Back in 1997 my good old friend Jean Richards wrote a prophetic article stipulating the importance that “Cash is King”, and rightly so. Now you can see what is going on and you who were your real friends appropriately advising you in the industry!

Now what do you make on the warnings from stock markets with listed companies being in trouble? Let’s see what you can comment on this!

Finally, let’s hope that in academia the professors and gurus begin to teach real shipping risk assessment…

Have a nice evening…

P.S.: Wonder if the S&P shipbrokers can convince their clients to scrap most of their tonnage? There we can see the real ethics and skills!!!

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