Fall’s Market and Geopolitical blues…

Chartering, Containers, Dry Bulkcarriers, European Union, News, Politics and Government, Shipping Indices, Statistics, Stock Markets, Tankers, Trade and Commerce — By on October 19, 2016 at 11:45 PM
John Faraclas

John Faraclas

Minus 18 points for the BDI (Baltic Dry Index) earlier on today, which now stands at 872; imminent world conflagration in all fronts… John Faraclas’ mid-week recap:

The Capers widen their losses with the BCI 2014 going down 124 points and now reads 1,826 points; wonder what the market prophets have to say and what lenders and stock markets have to say… Ultra-caution!

The Panamaxes continued their steady and modest rise gaining 25 points – BPI@885!

The Supras’ BSI and the Handies’ BHSI each gained four points now standing at 682 and 421 respectively; not rich pickings…

So the Dry Markets you like it or not have entered the dangerous zone and extreme caution should be observed!

The Wets on a bit of an upwards trend; the last published BDTI (Dirties) and the BCTI (Cleans) gained seven (681) and 12 (407) points respectively.

The price of WTI went over the US$51 and things look difficult for both sides of the equation…

The Market though produces other cases, such as the one we bring you herebelow with the merge/convergence of Greig Star and Gearbulk that VesselsValue simply demonstrate; a great job done by William Bennett – Senior Analyst at VV!

Grieg Star and Gearbulk JV

Grieg Star and Gearbulk are joining forces to create a fleet with a combined worth of USD 814m which includes Grieg Star’s two ultramax newbuilds at Dayang worth USD 37.94m

For Gearbulk (who is 50% owned by Japanese owner MOL) the deal will give them a 65% stake in the venture and Grieg Star will receive a 35% stake.

The average age of the combined fleet will be 12.6 years (Gearbulk: 10.9 years; Grieg Star: 13.7 years).

The two owners each have a large position in the Open Hatch/Gantry market. The combined fleet will control 36% (by size DWT) of the global Open Hatch/Gantry fleet giving the JV a very strong position in that niche market.

Percentage of World Open Hatch/Gantry  Fleet Gearbulk/Grieg Star own
ShipType % Of World Fleet by DWT % Of World Fleet by Value
HANDY BC (Open Hatch / Gantry)

24%

15%

HANDYMAX BC (Open Hatch / Gantry)

36%

38%

SUPRAMAX BC (Open Hatch / Gantry)

28%

8%

ULTRAMAX BC (Open Hatch / Gantry)

79%

81%

Grand Total

36%

30%

See fleet breakdown below:

Gearbulk
ShipType Number of Vessels  Total DWT  Total Value USDm
Small Handy BC

                                          1

                 12,200

                                            5

Handy BC

                                          2

                 65,600

                                            7

Handymax BC

                                        16

               720,900

                                          59

Supramax BC

                                        11

               578,000

                                          53

Ultramax BC

                                        13

               894,900

                                       284

Small Asphalt Tanker

                                          3

                 53,300

                                          58

Total

                                        46

           2,324,900

466

Grieg Star
ShipType Number of Vessels  Total DWT  Total Value USDm
Handymax BC

                                        17

               787,900

121

Supramax BC

                                        11

               572,700

154

Ultramax BC

                                          4

               253,700

73

Total

                                        32

           1,614,300

348

In my humble view, Shipping is not heading only for consolidation; shipping is heading and destined to become shipping for the very very very few!  Expect collapses of both listed and non-listed companies, trump or liner…

The Geopolitical front today includes:

The MIGRANTS issue continuing to dominate the News worldwide; worse things happen, amongst them today– the 301 who tried to reach Italy from North Africa had five dead… The death toll in this trip, North Africa to Italy, lately produced the loss of 3,100 lives. Shame! Pity!  Let’s see the influx from Aleppo and Mosul… Wonder what will happen in the aftermath AFTER Mosul is re-taken and ISIS’s actions…

The Syrian destruction continues; nobody cares about human life; when this behaviour backfires I don’t like to see or hear complaints.-

Russia continues to flex its muscles and let’s see phase four of Russia’s Syrian saga… when its flotilla – now approaching the British isles, arrives off the Syrian coast…

Turkey tries to consolidate in the region but the way the Turks are trying, will make it worse for all… it is a matter of paramount importance to forget any misunderstanding vis-à-vis Erdogan’s  requests and aspirations; we know his after …Vienna now.

Greece being in a very bad state of affairs, simply needs the Aristos’ team to run the ransacked country demolished by internal foes and corruption and foreign envy! Any objection? As you read these lines the trial for the submarines and TOR-M1 continues in Greece. Expect, if all goes well, to see justice… One of the biggest scandals of corruption in Greece, which though involves foreign elements, particularly for the submarines… The former PASOK Minister of Defence Akis Tsohatzopoulos insists of a major scandal. He was involved though…

BREXIT proves to brake all Box Office numbers as one day, for sure, a film will tell us  of  yet another despicable drama/scam. Now tell me: indeed there are preconditions to enter the EU, but there should be rules to get out here and now; where are they? Are we trying to invent them now… The EU is dead in the water! Wait and see! Never take things for granted; easy to leave say the Euro or never adopt it, but difficult to leave the EU all together!

At the other side of the Atlantic the two combatants have their third and final confrontation in the race for the White House. Mrs. Clinton is ahead, but still it looks it’s going to be a very close race… People are very strange creatures and vote in a very strange way. Only in Ancient Athens voting was appropriate; read, compare, value and then have your say!

A …bit south in Brazil, Edwardo Cunha – former speaker of the lower house of the Brazilian Congress,  was  arrested in connection with a major corruption investigation; watch these developments in South America’s most powerful nation…

Thousand flee their homes in the Philippines due to a devastating super Typhoon…

What’s up in Hong Kong’s Parliament?

Be on guard as asymmetrical things might soon happen in all fronts on the bankrupt Planet Ocean; have a nice evening!

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