Still a low dry market with the BDI@718…

Bribery and Corruption, Earthquakes, Tsunamis, Cyclones and Typhoons, Events, Conferences,Forums and Symposiums, Exhibitions, Immigration, Maritime Fraud, Markets, Religion, Sanctions, Shipfinance — By on August 25, 2016 at 9:29 PM
John Faraclas

John Faraclas

Despite going over and above the 700 threshold the BDI (Baltic Dry Index) we are still in a very low dry market; Geopolitics as said in the past, and shipfinance scandals that will surface, will drive the stakeholders mad. John Faraclas warns of dangers again:

With a dozen points plus the BDI closed earlier on today at 718 points – still far below the optimum level – in our humble view, being that of at least 2,000 points! Unless we see this level all the rest do not count an iota!

The Capers’  BCI 2014, as volatile as ever, gained 64 points and that was the main driver of the BDI’s surge today…

The Panamaxes lost six points with the respective BPI down at 700 flat…

On the antipode the BSI – the unstable too Supras gained six points and now stand at 712 points.

Finally the Handies and the respective BHSI continued its upwards trend and ended up with three points reading 428 points!

A slight better Wet market for the Dirties and its respective BDTI closing at 512 points – up seven points; not so good though for the Cleans’ BCTI which lost two points and now reads 454 points.

The price of WTI managed to remain above the US$ 47 mark as these lines are being written…

On the Geopolitical front now:

The Syrian saga with the involvement of Turkish forces on the ground with the Syrian soil takes twists and turns to the worse; don’t be surprised if you see spreading of the conflagration beyond the region. The Kurds too will counter to the Turkish attacks not just within Syria but beyond. A very messy and soon uncontainable situation; wonder what the USA will do to avoid a wider mess!

The MIGRANTS issue continues and situ now becomes dreadful in France with the region of Calais being very messy. The United Kingdom takes precautious means to avoid the Migrants influx as smuggles go wild in France. Equally in the South East of Europe, down in Greece and its Aegean Sea eastern islands situ gets worse; in Italy too there are problems with incalculable repercurrsions… Mentioning Italy we stand by the people of the worst affected towns of Amatrice, Arquata, Accumoli and Pescara del Tronto where the devastating earthquake of yesterday still makes it more than messy and apocalyptic! Fears for over 250 dead and hundreds injured…

Messy situ in the Straits of Hormuz involving US and Iranian warships and boats… Lifting the sanctions is one thing, understanding each other yet another! “Misunderstandings” from both sides will lead to another disaster in the region, unless…

BREXIT continuous to be optimism’s and pragmatism’s best friend.

In Greece now: soon expect the unexpected! Meantime the Aegean Regatta despite the strong winds is a success and 67 sailing boats arrived in Lesvos’ Island Molivos completing the third leg of this unique international race!

In the USA the election fever will create a very turbulent environment; pity!

In Africa too many issues are at stake; in Nigeria the banking system is in a total mess!

In the Maldives Abdulla Yameen looks he is trouble…

China tries to reassert itself as a major trading superpower but lucks continuity; the figures really don’t add up; only Japan in the region there can survive the World’s worst ever crisis!

The Korean Peninsula is also in a mess… Caution…

In this environment the shipping industry tries its best to survive as many companies go under and funds to save companies listed or unlisted is more than difficult to find; expect to read how many very soon will face the music.

The weather in Europe in unusually hot, even in Britain! Caution…

Brazil Paralympics are marred with Russia‘s ban… as said in the past wait to see Putin‘s counter on this.

Meantime in South America two other interesting events take place: a positive one in Colombia with a possible and let’s hope workable peace deal with Farc; In neighbouring though Venezuela president Madouro continues to make it a mess for his people…

In this environment shipping is being tested to the limited; be on guard as many listed and non-listed companies are in trouble and few can understand this. Soon many will vanish!  Ethics issue will surface. Shipfinancing banks and institutions will face scrutiny by the appropriate bodies and authorities; I like it… It is about time to unveil the scam of the century vis-a-vis billions of dollars given for what turned out to be very bad shipping loans. Who is accountable? Soon you will all know!

Hope to see you at the Swiss Wealth Forum on the 6th of September in Lugano.

Equally important is the biennial Cadwallader’s Debate on the 26th of October in London. See the respective announcements and be there!

Have a nice evening!

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