Capers’ volatility “rises” the BDI to…606…

Energy, European Union, HR, Markets, Piracy and Terrorism, Politics and Government, Safety and Security, Shipfinance, Shipping Indices, UN — By on May 27, 2016 at 2:31 PM
John Faraclas

John Faraclas

The shipping markets in yet another volatile round coupled by dangerous geopolitics; John Faraclas weekly briefing:

The BDI (Baltic Dry Index), “thanks” to the ever volatile Capers, gained five points earlier on continuing the uncertainty which we are engulfed over the last thirty months! On a weekly basis though the index lost 19 points since last week’s 625!!!

  • The Capers’ BCI 2014 with 37 points plus now stands at 830 extending the uncertainty! …losing though 40 points since last week’s 870 is yet “another” fact!
  • The Panamaxes lost four points and its respective BPI now reads 582; caution. 39 points – close to the 40 of the Capers, on a weekly basis (from 621 last Friday the 20th of May.)
  • Supras and Handies’ respective BSI and BHSI stood at 579 – plus four and steady at 347 respectively. On a plus basis the weekly figures, plus 17 and four from the 562 and 343 figures…

Not a good dry  market, so be prepared for every eventuality. A Midsummer Night’s Dream is a comedy play by William Shakespeare and now revisted same “unfolds” with  the markets…

  • The Wets on a plus modus, the BDTI and BCTI were both up five and two points  –  728 and 503 are the readings. Equally on a weekly basis a better picture, despite the Dirties losing 19 points (from 747) and the Cleans on 30 plus (from last week’s 473).

The WTI maintained the US$ 49 and a bit, but this enhances the uncertainty on production levels and given the world’s worst economic recession, silly sanctions and preferences – you dead well know what I mean, be on guard whether you are an individual, a private company, a public corporation, even a state owned entity…

Geopolitics continues to shake the markets and it will indefinitely continue; here you go:

The Migrants saga continues not only uninterrupted, but it even gets worse. As our viewers know, we have elevated over a year now, the Migrants issue as the number one issue not only for the Aegean Sea, the entire Mediterranean and Europe, but for the entire world, as it greatly affects now all decisions. It is the most shameful situation witnessed in Europe and proved how divided Europe is. It also proves how biased Europe is, needless to say the blackmail from Turkey stirring around the mess and demanding, in exchange of an, already null and void AND unworkable agreement with the EU, the free movement of its subjects within the European Union… This shameful behaviour and policy, needless to mention how governments tackle the humanitarian issue from the health and safety aspects will backfire with incalculable repercussions. With the “improvement” of the weather conditions, add the increase of trafficking with Migrants from the North African Coast – Libya in particular and the drowning of thousands and imagine what is yet to come. Congratulations to the Italian Coast Guard and others involved in saving thousands of lives. Once again, for a start, we invite the responsible minister in Greece and its counterparts in Europe as well as the UN special envoy to resign; needless to say that of all those Goodwill Ambassadors and Special UN Envoys for Refugees and all that jazz, as their performance and results remain under zero…

The Proxy War in Syria, a mixed operation of the super powers supporting their “vested” interests in the region, coupled with religious …topping continues and we might soon see, a bit too late, joint operations between the US and Russia. In our humble view, only a ground offensive, even with extreme barbarity and ferocity equal of that the Athenians did against the citizens of Melos Island in antiquity– given the other side’s despicable behaviour, can really have not just an effect, but quick results, ignoring all possible eyebrows from “others”.

In Greece, where a lot is being “invested” to destroy the dignity of its proud people following one of history’s financial and lending scams directed by Greece’s lenders/enemies – Europe (see Germany) in particular, except of course of the 99 centum of the political elite and their cronies who serve the system so they can remain in power, things might get off hand due to the continuous destruction of the its economy now in the seventh year of recession and relentless re-lending with more “bail-out” packages, to ensure the One Trillion Debt is being paid otherwise by “confiscating” the wealth, property even personal jewellery of the Greek people. Imagine a GREXIT, a simple and quick one. For the record we reiterate the view and provoke a live TV debate to prove how a really self-sustained nation like Greece in all aspects –  blessed land and archipelaga,   is being subjected to a despicable behaviour. Nemesis though one day can give the answer. Stressing a bit this last sentence, coincidentally Aristotle’s tomb was found and I am sure you all recall how the mentor of Alexander The Great, following the situation created in the region by Persians ended and changed the route of history and western civilization. Imagine if a new Alexander the Great this time moves to the West.

In less than ten days, Posidonia will be on so all can understand who the real masters of Planet Ocean are! Hope to see all 300 Greek MP’s pay their respects, a must to see Greek Shipping Success irrespective of a bad freight market and political ideology!

BREXIT continues to be a major issue now, unless some may say all we read is the propaganda of those who, besides Greece, are subjecting the people of the United Kingdom to participate in a Union which instead of improving the lives of the British people, it makes same worse given the real problem which is Germany and its other affiliated bankrupt nations with irresponsible social policies.  Now mind me, I am a pro-European, and I have even written that Europe, the European Union per Anthropogeography and Political Geography must include European so to speak Russia; the one that reaches the Ural Mountains. Correct me if I am wrong, but this is what you taught us from the primary school up to academia, end of the story.

Writing about Russia, as you read these lines, Russia’s president Putin visits Athens under extreme security – too much; how does the Greek maxim “Metron Ariston” applies here, eh??? Greece should and must have a different policy from all other European and regional nations vis-à-vis Russia. It has been always a very delicate situation, long before the Greek War of Independence in 1821 to get rid of the Ottoman yoke and speaking here on the visit tomorrow of president Putin in Greece’s Holy Mountain, that of Mount Athos, were the head of Russia’s Orthodox awaits him to celebrate One Thousand years of Russian Orthodox Monasteries and Monks, is yet an issue not to be ignored as, the Byzantine Emperors Christianised the Slavs – Russians and Ukrainians in particular! Never forget the uninterrupted shipping affair Greece had with Tsarist Russia allowing Greek owned vessels to fly the Russian Flag / similar, to protect them against the Ottomans following the 1774 Kioutsiouk Kainartzi Treaty, the continuation of trade with the Soviets and then with New Russia as it emerged following the “collapse”. We have extensively written about this affair, despite the hiccups of  Catherine’s the Great “misunderstandings”, including the Crimea affair with the Greeks…, the Greek Civil War post WWII, which is a totally different affair, given who really made it a mess! Bear in mind that at the time Tsarist Russia assisted  the Greeks, the then American Administration via the frigates based in the Azores they had in mind to support the American – Ottoman “Treaties” and Destroy the Greek Revolution at sea and conversely the Greek Revolt (please read the Memoirs of Anagnostis Spiliotakis and his book / “A Collection of letters of the American Captains on the “raids” to stop sort the Greek Revolution at Sea”, in English of course and you will see what was happening and then the imminent change of the Americans in favour of Greece following the pro-Greek sentiment in the USA!).  Shall we mention the newbuildings Greek shipowners contracted – bulkers, tankers, flying dolphins to name but a few…eh! AND what about chartering? Anyway, a streamline of the Greek-Russian affair must also be on the cards, as you must know how to navigate in turbulent waters in Greece’s region and periphery. Lastly although the war of destabilising Europe from Russia is on for centuries now, this is a rare moment in history to make a long lasting peace given the Islamist’s surge with the up to now despicable events… Brussels, London, Madrid, Paris… Personally in my second NOUSE live interview back in 2015 I have set out the harsh reality on Greece’s external affairs etc., and adhere to it!

In France whether Hollande backs-off or not on the labour reforms, the damage has been done and he needs to employ his “labour” skills not to alienate his voters. Another time bomb ready to explode… add the financial crisis France is going through… and see what you can make of all these …revolts. Terrorism too looms in the background and we need to see more success of the French Authorities! Dangers also might appear in the straits of Dover with migrants.

Off to the other side of the Atlantic where Donald Trump waits for the Democrats nomination candidate in the final push to the White House. Looks still a close race for Hillary Clinton – nobody expected Sanders to be such a tough cookie… but…. The end result however is a must for the superpower as any of the two who will be elected as president, to reinvent the Pax Americana given the very dangerous and complicated Business Geopolitical environment – you are reading a new term: Business Geopolitical environment to which add a bit of religion and see what you get! The USA is the only hope for a new and just world order! Those who wish to write off the USA must wait another century and if…

In Africa, Boko Haram might soon find itself in trouble. In the very north, Libya and the entire region MUST be watched and closely monitored… expropriation of land in South Africa might create a bit of a mess as nothing has happened over twenty years post-apartheid…  Good to know that French investigating teams will look more closely the Egypt Air’s ill-fated MS804 flight….

The Chinese economy is in a warning given the slowing down of China’s locomotive, particularly on international level; don’t mention the shipyards issue: big troubles there… On the other hand China can contribute a lot to the continuation of the logistics shipping chain, but reforms must be implemented. Europe cannot afford a distant Chinese invention anymore and protectionism might resurface all over Europe, unless… There is a strong competition of say Chinese and Russian entities to acquire important components of Intermodalism’s chain… See the Greek example…

Japan has no option but to flex its muscles not only in the Pacific Rim but more globally to counter to all these happenings from two other nations being at odds for quite a while now. Never underestimate the Japanese and Prime Minister Abe currently running Nippon’s Show! A good gesture by Obama to pay a historic visit at the Hiroshima Memorial. I guess though should have been dealt with when he took office! Anyway, better late than never! Abe has a reason to ensure this visit will end the nuclear armament’s race!

The above and other of course world events are affecting the shipping Markets to all intents and purposes but above all we would like to remind our viewers as well as all those involve and in any way trying to affect the normal flow that we need to secure:

1)The Dire straits; Gibraltar, Constantinople (Istanbul), Suez, Aden, Hormuz, Malacca, Panama and Kiel canals from any intervention and disruption;

2) Ensure our seafarers are safe from pirates and terrorists weather on board or ashore; ensure them and office personnel are safe when traveling by airplanes and the airports are in all respect safe in its entirety!

3) Contribute to airport security after the atrocities in Brussels AND make sure we do not have grey areas vis-à-vis the of airplanes from other than technical problems,

4) Streamline the lines of shipfinance and avoid the despicable effort of the state to destroy the private enterprise. Simultaneously change the entire criteria and ways of funding ships and any other floating objects given the catastrophic market events which lead to the current shipping slump.

5) Stop hassling the business community with actions such as the Panama Papers when those organising this have skeletons in their cupboard! Shame!

6)Ensure the shipyards produce newbuildings under the IACS rules and their personnel and facilities are fully certified and the same in all countries!!!!!!! Why these exclamations? Because of China!

Have a nice weekend and a long weekend/Spring holiday!

Despite all these, this is the best EVER (yes in capital letters) market to increase your wealth to all intents and purposes!

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