Weakening BDI and geopolitical turmoil…

Chartering, Containers, Dry Bulkcarriers, Liner Shipping and Trade, LNG, Markets, News, Piracy and Terrorism, Reports, Sales and Purchases, Ship Demolitions, Ship Finance, Shipping Indices, Statistics, Stock Markets, Tankers, Trade and Commerce — By on July 29, 2016 at 2:44 PM
John Faraclas

John Faraclas

The Markets lost steam and Geopolitics are a burden; John Faraclas’ weekly recap:

The BDI (Baltic Dry Index) lost nine points since yesterday standing now at 656 points which is 62 points down since last week’s 718. The 700 points barrier is now causing problems.

  • The Capers and its BCI 2014 lost 12 points now reading 768 and 127 points since last Friday’s 895; big drop!
  • The Panamaxes  were down 27 points – BPI@692, just under the 700 point-threshold and 135 points down since last week’s 827 points; another big drop!
  • The Supras too saw the BSI@671, down five since yesterday and 27 since last week’s 698; caution here too!
  • Exceptionally due to demand AND need being a more flexible size, good for a crisis too, the Handies; BHSI gained three points approaching the 400 point barrier at 399! Up 16 from last Friday’s 383 points.

So all in all a falling dry market this week with no excuse as it was …rising and what was the norm for the summer cannot apply under these market circumstances! Indeed at all times during the summer vacation the market drops, but… let’s faced it: this is the summer of discontent!

  • The Wets too in a …bit of trouble. The last published BDTI (Dirties) and BCTI (Cleans) stood at 550 (minus nine) and 466 (plus two) respectively. On a weekly basis the Dirties lost 39 points (from 589) and the Cleans gained just four… (from 462)… Not a good picture either.
  • The price of WTI as of 15:47 stands at US$ 41.13, that’s US$ 3.77 down since last week’s US$ 44.90!!! Big losses for the oil producers and respective companies and intermediaries, but good news for the consumers.

On the Geopolitical front now, things are getting far worse, as :

The Migrants issue remains unchanged; more money are being given to Greece and Italy, something like Euros 11 mio, simply peanuts for what is really happening and what is yet to come!

The flow of Migrants from Turkey and Northern Africa  continues with the Greek Eastern Aegean Islands and its inhabitants being the big victims and Italy, Malta and Sicily too. Enough before the situation gets worse. The Port of Piraeus is cleared from Migrants but if you read most of them had the “choice” – believe it or not to go wherever within Greece they opted to… Unbelievable!

Turkey continues to abandon the supposed to be a democratic state and it is not just that heads  towards in becoming an Islamist State, but also president Erdogan  and his cronies dictatorship! Over 20,000 have been detained, lost their jobs, in an otherwise unimaginable modern religious/political pogrom; this is the truth that hurts! The situation is grave given the war against ISIS and the unpredictability of the Turks that must alert the Americans who lead the coalition against ISIS particularly from Incirlik airbase. We all want a stable Turkey, but given the hype of Erdogan, the world of knowledge knows dead well where he is heading the boat… He takes on American Generals as if he is hte world’s supreme leader; somebody must silence him or the entire area will go up in flames; president Erdogan must forthwith resign. Caution!

In Syria, things go from worse to worse and what we see on TV is pathetic; too many women spoil the broth. It’s a mess and only the Military without the political interference can give the solution. The situation becomes despicable. The last thing to “see” there are possible misundersatndings between the US and Russia over the humanitarian corridors the Russian open in Aleppo for the exodus of besieged civilians and rebel fighters with Secretary Kerry trying to avois a Russian ruse… What a complex situ; and thee is more to come… unfortunately.-

Given the situation in the region after the end of World War Two, if we don’t contain the situation, I am afraid that we are going to see terrible reactions within Europe from the Islamist terrorists.

BREXIT continues to be the top issue in Geo-economics but one thing is certain in my humble view: after a low period there will be the success of the decision to get free from the European Union Bureaucrats in Brussels headed by Mrs. Merkel’s fraternity.

The entire Mighty Continent is in a financial disarray! The Stress Tests for all banks should be more tough!

The GREXIT is just an accident waiting to happen; just wait and see the end result!

On the other side of the Atlantic,  Mrs Clinton must remember that promises make debts and debts make promises. She’s familiar with the corridors of power in the White House and beyong and she should capitulate on this. On any count she will be a better prseiden for the USA and Planet Ocean!

More news and updates later on; enjoy the lovely London weather!

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