Only at 2, 000 plus the BDI will make sense…

Markets, News, Reports, Shipping Indices, Statistics, Stock Markets, Trade and Commerce — By on April 15, 2016 at 4:45 PM
John Faraclas

John Faraclas

Markets, and in particular the Dry ones – will become a liability for the shipping industry and lenders, least to say the majority of shipowners worldwide, if we don’t see at least the 2, 000 plus threshold mark; possibly the wets might follow suit, John Faraclas reports:

If in Politics we have a new World Order following the collapse of Communism (not Socialism), in shipping expect to see the Third Coming! The latest shipping crisis created what the Ancient Greek maxim spells out: “It never rains, but it pours” (ενός κακού, μύρια έπονται).

We have warned of this situation – to its entirety, that is to say politics and geopolitics, technological  changes and improvement developments and conversely advancements, including propulsion and bunkering means and patterns (shipyards issues), world energy issues, financial availabilities, company/ownership status (listed or private) long before and we now try to advise all stakeholders that despite reaching earlier this year a rock bottom (BDI@290), the damage inflicted in the entire shipping industry following the burst of the 2008 market bubble  (BDI @ 11, 793) in May 2008 to the 10 February 2016 ground zero  (290 points), indeed matches the ancient Greek maxim above. We are also under duress from the piracy and terrorism aspects which, despite the mayhem and the despicable so far events from all these culprits terrorists– 9/11, London, Madrid, Mumbai, Paris, Brussels and others, there is more to come, given the non-existent of a robust counter policy – so far, so expect  the unexpected.

Anyway, despite yet another Friday of “rich pickings”, we still advise of caution. The environment is more than uncertain, least to say unsustainable.

The BDI close earlier on today at 635 points, up 38 since yesterday and 96 plus since last Friday’s 539; not bad as it nearly gained 100 points, the first such rise for quite a long time… but, be we preserve caution!

The Capers BCI 2014 was 118 points at 949, close to break the threshold of 1, 000 points and 293 points up since last week’s 656 points. Volatility volatility volatility!

The Panamaxes also on the plus side but only a third of that of the Capers gained 27 points since yesterday standing now at 727 which is 84 points since last week’s 643.

The Supras just clinched a double plus digit, 11 points bringing the BSI at 525 and 37 points plus since last Friday’s closing of 488; the Handies too with the BHSI also on par with 12 points plus at 321 and 35 points up since last week’s 286!

So all in all an interesting and promising week, but still a long way to go and see some returns to cover the greatest losses shipping has ever faced!

The Wets too on a plus mood; the Dirties and its BDTI up 6 points at 786 since the last published figures which is also 34 points plus since last Friday’s 752 and the Cleans’ BCTI was up 18 points at 532 and coincidentally 34 points plus since last Friday’ 498! Dodgy market…

The Price of WTI was a bit better standing at just above the US$ 40…

Many shipyards are going under too; its not just a great numebr of shipowners who see their entities disappear!

The Geopolitics, which greatly affect all the markets, are even worse from last Friday’s reporting.

Migrants, World Economic disarray, BREXIT, GREXIT, War issues coupled with Terrorism of all kinds on all continents and fronts, as well as all the other issues we have been reporting lately goes from worse to worse and it is about time the politicians, business leaders and religious leaders get their act together before it is too late. Hypocrisy is one thing – the public now knows, everybody knows; destruction of the human race is yet another. It is too much to bear as things go off hand with incalculable repercussions.

Let us see the visit tomorrow of the Pope of Rome in Lesvos island in Greece’s Eastern Aegean, together with the Patriarch of Constantinople, the Archbishop of Greece and Greece’s PM brings out. We will revert on this!

We reiterate the view that this is the best market to develop further your shipping investments!

Off now, a bit earlier than usual, to unwind at the great Life Action Trust international event in Piccadilly to support all those in need and also raise the music factor which tranquilises the mind and soul but also stands as the means of charitable actions!

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