The BDI@555; no fuming, …just smoking*

Civil Unrest, Containers, Dry Bulkcarriers, Insight, Markets, Military, Piracy and Terrorism, Ports & Terminals, Sales and Purchases, Sanctions, Shipbuilding and Shipyards, Shipping Indices, Statistics, Stock Markets, Trade and Commerce — By on April 11, 2016 at 10:57 PM
John Faraclas

John Faraclas

With another 16 points plus earlier on today since last Friday’s closing, the BDI (Baltic Dry Index) at 555 is trying to maintain a level of fewer losses given that all ships more or less need US$ 2-2500 daily support/self-finance from its owners to avoid lay-ups or being by its creditors sold at an auction under enforced sales… John Faraclas writes:

The Capers and the respective BCI 2014 gained 77 points now standing at 733 and wonder for how long this upwards trend will continue. The Panamaxes on a …modest plus level of only 11 points and the BPI now stands at 654… Supras and Handies gained peanuts; the BSI was up four points at 492 and the BHSI up two at 288…

So with the exception of the Capes and the Panamaxes …double digits plus, but only just, we recommend being on guard. We have numerous times expressed our worries and anything steady and spectacular on the plus side sounds like the song “Too far away”… Reports for the Markets in general looks a bit pessimistic; it’s even worse that this!

The Wets and the respective Indices BDTI and BCTI remained unchanged at 752 and 498 points respectively; c a u t i o n!

The Container trade is promising as always, but you need to use the good offices of others to make it work; after all the Containerships are the ships of the future. Never forget this!

On the shipyards front: South Korea’s shipyards are in trouble… so what’s up there? The 90 (ninety) percnt of the Far Eastern Shipyards are in a mess…

Will the WTI remain above the US$ 40? Will it fall again or we might see US$ 50 soon?

Expect many changes in the shipping industry! Still though the best time ever to acquire modern double Eco tonnage of all types or newbuilings. If you have the funds available, just go ahead. The perfect market to weather the perfect storm. Sounds oxymoron, but this the reality!

On the Geopolitical front, very simply:

The Migrants issue gets worse; the politicians are hypocrites of the worst kind. You can see what happens; it’s even worse if you dare go on the spot and see what is really going on. Expect a messy summer! The Greek side of events with an unorthodox so to speak Turkey and an EU in total disarray gets worse. Turkey meantime is on an alert list as the superpower has warned, and rightly so of terrorist attacks. FYROM and Bulgaria are causing problems in the region with their respective actions on the way they tackle the Migrans issue. Greece must get its act together… otherwise expect in all fronts a total mess and events that only your imagination might be able to follow- up to a point. Nobody bothers about health issues surrounding not only the 55, 000 official Migrants in Greece, but the Greeks health can also be affected, and then…the shit will hit the fan…. The Italian front opened with over 1, 850 Migrants being rescued by the Italian Navy in the last 48 hours or so… Another mess will enfold here too, given the favourable weather conditions as summer approaches… All in all, the Migrants issue is Hypocricy at its best!

The war in Syria gets into another strange phase. Nothing as yet has really happened to send all parties involved in the negos table. Expect spill overs…

ISIS makes gains. Wonder what the military commanders have in mind. Very simply: those who have the guts must act swiftly like stealth…

Meantime the manhunt for terrorists continues not only in Belgium or France, but over the entire continent. We must stop short any further attempt. Imagine the France 2016 disruption; spoiling sports events clearly saws that we must saw zero tolerance to all arrested terrorists. Pre-emptive arrests must be done. Once again we urge all responsible and competent authorities to safeguard any means of travel and life itself! Enough, NO excuses!

Armenia and Azerbaijan still at loggerheads… Russia’s and Turkey’s proxy war might enfold very nasty… Erdogan tries to maintain his reputation and that of his country. Things though are very different from what he tells and what he does. It is meantime to the benefit of both Turkey and Greece to live in peace and not to see the Turkish jets violating the Greek and European Union’s Airspace! Neighbours must be in good terms, isn’t so! We mention this as this as this is exactly  what was happening with FRONTEX at the very beginning; its planes patrolling Europe’s sea and air borders with Turkey, where intercepted by Turkish military planes. So what is Brussels saying and NATO in particular about the daily Turkish violations of Greece’s and Europe’s airspace?

British Households are receiving HM Government’s leaflet for the 23rd of June Referendum. For sure there is place and future for the United Kingdom in a revamped European Union… A must to revamp the European Union, otherwise the mess will be incalculable! BREXIT will be catastrophic; end of the story. Europe must change. Here we have nearly two dozens of governments and they cannot solve the Migrants issue…

GREXIT is ante portas too. The current regime cannot make or break; they all lve in their own…world!  The Greek people have been coned by their own politicians and Europe. What a scam! Nemesis though is watching! I will not be surprised to see events beyond imagination taking place… Today, two of South Europe lefty leaders met in Athens. Greece’s Alexis Tsipras met with Portugal’s António Costa, both lambasting at the EU’s austerity mess and Migrants issues. “Vossa Excelencia, o que é que o senhor sugere ao governo grego no sentido de recuperaçao economica, visto que Portugal está também a passar por tempos difíceis?”  (” Your Excellency, what can you suggest to the Greek Government on the road of recovery, given that Portugal has also gone through tough times?”)

The Zika virus makes waves; it’s far worse than initially thought. Be prepared for an epidemic… the US on alert…

Post sanctions Iran becomes every day the main discussion in the wider periphery of the Middle East… Russians capitulate on Iran…

Let’s see and study the G7 communiqué tomorrow from Hiroshima in Japan. Russia is watching…

On the Tax Heavens issue and Tax avoidance worldwide we will see more to come. A pure tit-for-tat case; very normal.  Panama really has nothing to fear; it’s the rest of the world that is in disarray. Indeed expect many in Europe, The US, China, Russia and elsewhere to lose their sleep. There are too many skeletons in these …regions cupboards… All legitimate actions and dealings are fine…As we said in recent reporting, if you play by the rules you have nothing to worry or fear about. Nothing wrong with tax heavens!

Tough times ahead in the US until we see who’s finally entering the White House… Until then, ensure you are not having a heart attack of what’s to happen there…

Turmoil in Brazil…

Elsewhere the same conditions prevail per our last report. Be braced for mega events to come very soon…

* I am sure most in the shipping industry have smoked 555’s, the State Express 555 to be precise! This is what the BDI reminds me today…

 

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