Market losses steam, volatility and uncertainty rules the day…

Markets, News, Reports, Shipping Indices, Stock Markets — By on August 26, 2016 at 8:54 PM
John Faraclas

John Faraclas

The BDI (Baltic Dry Index) closed up just two points since yesterday at 720 which is also 37 points plus since last week’s 683 points and 49 points plus from the 12 of August. Geopolitics at the same time are worsening and expect chaos in all fronts. John Faraclas weekly recap:

The volatile Capers’ BCI 2014 closed just above the 1,000 points threshold at 1,001 points  – which is 27 points since yesterday and 158 from last Friday’s 843, though there was a hiccup between (backwards counting) 19/8 and 12/8 of minus 48 points (on the 12/8 the BCI 2014 stood at 891 points).

The Panamaxes and its respective BPI lost 13 points –now reading 687 points which is minus 40 since last Friday’s 727 points – on 12/8 the BPI stood at 703 points…

The Supras’ BSI on a straight plus modus closed at 715 – just three points up which is also 29 points since the 19/8. On the 12th of August it was down at 643 points so we are seeing a steady improvement…

The Handies’ BHSI was up three points reading 431 points – a plus of 19 points since the 19/8 closing and an overall of 18 points since the 12/8 closing at 396!

So all in all a plus dry market but there isn’t much steam, and with many companies in tatters, things might get worse…

The Wets remained more or less in the same levels as last week, with the last published BDTI (Dirties) and BCTI (Cleans) at 515 (plus three) and plus 14 since last Friday’s 501 points – an overall of 18 points since the 12/8! The BCTI (Cleans) gained just one point reading 455 points which is minus six points since last week’s 461 points and four points plus since the 12/8!

The price oi WTI as of this moment is just above the US$ 47.5; caution here too!

Many issues arise in the industry especially in the shipfinance front and we eagerly await the outcome. In the coming months many companies will go under – listed or unlisted and many financial scandals will surface!

Despite the above and the Geopolitics below, this is the best time to buy Second Hand five-year old tonnage or order Newbuildings of any kind! Time to see the shipyards suffer more with pricing, as last time round they called a fast one – together with their accomplices shipbrokers and financiers, against shipowners! We hope somebody raises the alarm and people responsible for this market mess seat on the dock!

The Geopolitical front is giving tremors in all fronts, particularly – as we have numerous times mentioned, in the region between Gibraltar to Afghanistan and from East Ukraine to the Horn of Africa! Be on guard for every eventuality. Do not be surprised from the events that will imminently take place… Terrorists mingle with MIGRANTS trying to harm Europe and its people  – not to mention changing the social cohesion; we must saw zero tolerance and counter hard on them! The Evening Standard’s front page article earlier on today which makes the round on Planet Ocean is another evidence which long ago we have numerous times not just hinted but extensively written about. Also just recently, following our team’s visit in Chios, the Greek Island in Eastern Aegean, we were fortunate to have interviewed live the Mayor of the Island on three issues one of them being the MIGRANTS and also the next day we stressed the dangers from Turkey and Islamist terrorists when we referred on the massacre at St. Minas’ Monastery in 1822!

Moreover the scandalous way by which the current Greek coalition Government tackles the issue of “housing” the Migrants  – whether on Chios or in Athens or elsewhere in Greece, particularly in the old Athens Airport (the Olympic Airways Terminal) by the seaside of Ellinikon, is beyond being despicable particularly on health and safety – the inadequate and obsolete toilets and sewage are the source of bringing not only Hepatitis but many more deadly deceases in 2016! Shame! Shame also for the European Union’s stance on all these disrespectful acts against the MIGRANTS, which after all are human beings! No excuse please! Resignation is the best source for making things better. There are over 1,5 million still waiting to cross over from Turkey’s Anatolian coast to the Greek Islands. On the other fronts, we believe that the GREXIT is the only way out for all parties in Greece given the attitude of its European “partners” in the EU! This Autumn will be very crucial for Greece and its people!

BREXIT makes waves and don’t be surprised with the way the United Kingdom will tackle the issue to all intents and purposes. We sincerely hope PM Mrs May will do her best to ensure all will be well for the British people within and outside the United Kingdom. Remember: you cannot challenge the Commonwealth of 1,6 billion people!

There are contradictory messages from Europe: Hungarians and Czechs oppose the presence of MIGRANTS and wish to have a formation of a European Union Army which can protect the European Union’s borders and conversely theirs. Mrs. Merkel, as usually under pressure from her masters, has made it a mess once again on the MIGRANTS; if she is so humane and a sympathiser of MIGRANTS she must take them all in Germany, end of the story! With nearly four million Turks there – all being Sunni Muslims, she’s afraid if they opt for even a social upturn there and also succumbs to Erdogan’s blackmail – like everybody for the time being, needless to say she’s working for Germany’s major consortiums in need to get lucrative business in Turkey…

What we witnessed on British TV Channels on what happens in France – particularly in Calais is simply despicable with gangs and traffickers as well as with hidden elements of jihadists. Where is Law and Order?

Islamists  – whether moderate Muslims or whatever, are provoking our western society and to a large extend the Christiandome in Europe. The latest saga and farce with the burkinis and the judicial “decisions” in France are the latest palaver, what a laugh of people who cannot saw zero tolerance. We all respect religions, even ways of life – as Islam is, but I wonder what happened to the famous maxim” When in Rome do as the Romans” ? Eh! Wake up! It’s time the other side of the Atlantic break the impulse; you dead well know what I mean…

Terrorists from IS is ante portas and a coherent policy must be exercised on a zero tolerance basis! Act now before its too late.

Turkey’s participation and involvement in Syria will backfire; wonder if the Americans know what they are doing there or they do have a plan B? Russians too are pushing for their own interests. The Kurdish State, the Great Kurdistan is a reality; the late Bulent Ecevit missed the point and lost his premiership on this issue. Just read the news of that period and try to read between the lines and you will see what really happened. Greater Armenia too is on the cards… Russia will use Turkey as a lever like it did during the Greek-Turkish War in 1919-1922, siding with Kemal Ataturk, Lenin was the real assassin of the Greek populations. Few know the real history! A Greece controlling the Straits of Bosporus was an anathema for Lenin…

Going now to the other side of the Atlantic and the race to the White House I wonder why before the leadership election for both the Democrats and the Republicans we do not have “a good standing certificate” for the candidates before the American public votes for them? This is not just real democracy but something beyond this. We need to have a Certificate of Seaworthiness before the vessel is chartered, meaning that at the material time of the fixtures confirmation she was in all respects a seaworthy vessel (some even go beyond this point and say that same should apply at the  beginning of the negotiation and or proposal) . You dead well know what I mean; now try to interpret this on Mrs. Clinton’s and Mr. Trump’s fitness to run … As for those who spread accusations around, even valid ones, they should have done this from day one, as now they look they have succumbed to others’ interests… Whatever the end result, the world expects the new American president to deliver, as the current one spectacularly failed; just take the issue of Syria and the wider Middle East – North Africa issue. Did I hear you say MIGRANTS??  Obviously I can guarantee you that one day Nemesis will strike all those clever dicks in the US Administration who put the life of Americans in danger as well as the world at large with their wrong foreign policy! The Cold War is over; Russia is NOT a communist state so no one can find any excuse on this issue. Of course Russia is pursuing its own agenda we like it or not. Wake up!

Meantime a bit of understanding and appropriate communication is needed between the USA and Iran following the latest controvercy…

Our warning is still in force for the incalculable repercurssions that will happen in the entire region and might affect shipping and transport too with wider implications. Wonder what the Insurance Companies on H&M and the PandI’s have to say. The Risk Assessors must speak up before it is too late.

In Africa and particularly in Harare, Zimbabwe’s capital police fired tear gas against protesters urging for a change of the electoral system. Mugabe at 92 is major liability, even for his own “faithful”.

South Africa is also a region to watch on all fronts.

In Libya and the city of Sirte government forces are now ready to get rid of ISIS fighters. A country to watch as traffickers still have to “evacuate” three million of MIGRANTS and send them to Europe despite the thousands being drowned whilst trying the passage to Italy and its central Med islands last year.

Good news… from Bangladesh where the authorities are about to find the perpetrators of the coffee shop massacre last month leaving 22 dead…

Lee In-won vice chairman of Lotte was found dead in his car. Many shameful financial scandals will rock South Korea which has to pursue its policy with the USA in stopping the madness of North Korea’s president who under a proxy war proviso wishes to destabilise the entire Far East… Caution!

Japan is closely watching the above as well as China’s behavior in South China Sea with respect also the disputed islands there. Japan is the ONLY serious player in the region to be trusted and PM Abe will pursue the best policy for saving his nation and contributing to peace in the Far East. The 2020 Olympic Games will though find the entire region there in a different reality!

Have a nice weekend and enjoy the Notting Hill Carnival.

P.S.: Our mind and soul is with the people of Italy and the deadly earthquake which left nearly 300 people dead…

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