Caution for both Markets and Geopolitical uncertainty

Containers, Dry Bulkcarriers, Markets, Mergers and Acquisitions, News, Piracy and Terrorism, Ports & Terminals, Reports, Shipping Indices, Statistics, Stock Markets, Tankers, Trade and Commerce, UN — By on October 31, 2016 at 11:24 PM
John Faraclas

John Faraclas

The BDI (Baltic Dry Index) was up 23 points since last Friday reading 857, thanks to the volatile as usual Capers’ behaviour and Geopolitics are getting an unprecedented catastrophical twist and turn; John Faraclas’ daily recap:

The Capers gained 117 point with the respective BCI 2014 now standing at 1,534 points. This volatility on this particular size can have grave repercussions the markets!

The Panamaxes lost eight points, slowly slowly dropping too close to the 900 point threshold – now at 905 sending a bit of warning message; despite this, we strongly believe of their recovery and, above all, that this is the best size and type – pro/post Panama Canal dimensions to survive the coming market’s tempest! Some journalists must be very careful when “sentiment” or anything induced from others, “dictates” them to write nice things, as already they are exposed!

The Supras’ BSI remained the same at 722…

The Handies’ BHSI just gained two points now standing at 435. For both the last two categories nothing exceptional…

The Wets, once again with mixed feelings: the BDTI (Dirties) and BCTI (Cleans) were …up and down three points respectively at 660 and 423!

The price of WTI fell below the US$ 48 – as you read these lines it stands at US$ 47,99 – well done…

Consolidation news on the ailing Container Liner Trade with NYK, MIL and K Lines going for a total merge with includes their port terminal sounds music to the trades ears. In any event, the Japanese are “notoriously” known to use the letter C not for Competition, but C for Co-operation. We will wait to see the evolution of this merger and how same will trigger the big change. Having said that, I wonder what tramp container owners have in mind! Having the Liner boys and using them as a leaver in one thing; equally “using” the Liner Boys is yet another, but what will happen at the end of the line vis-à-vis the cost of the product to the consumer? With or without mergers of these magnitude, the retail prices must go down, given the current world’s worse  economic recession and the next wave of poverty ante portas, deriving from the wrong use of globalisation… Never forget we live in a bankrupt world!

We are fortunate to have an interesting account from VesselsValue and hope you enjoy reading same:

Joint Venture Company between NYK, K Line and MOL

Earlier this morning the three Japanese container liners announced a new joint venture container company, including container vessels as well as non-Japanese container port interests. These services are to start from 1st July 2017.

Please read the full release here: http://www.nyk.com/english/release/dbps_data/_material_/_files/000/000/004/488/161031_5eng.pdf

These three companies own:

Company Number of Vessels Total TEU  Total Value $M
NYK Line

68

               507,046

                   $2,333

MOL

35

               307,449

                  $1,700

K Line

31

               240,440

               $1,203

Here at VesselsValue, we provide non-chartered in fleet values – this means we provide data on what assets these companies own and do not include what they are renting (chartering) in from other owners.

New top 10 ranking of container fleets

Aside from Moller Maersk, who has taken back the top spot after the China Cosco Shipping Corp merger, spots 2-5 are now taken up by container companies who have merged or bought out other companies.

Rank Company Number of Vessels Total TEU  Total Value $M

1

Moller Maersk AS

251

         1,888,003  $8,258

2

China Cosco Shipping Corp

199

         1,629,204  $7,972

3

MOL/K LINE/NYK

134

         1,054,909  $6,130

4

CMA CGM & APL

152

         1,225,480  $6,126

5

Hapag Lloyd & UASC

121

         1,075,875  $5,418

6

MSC

204

         1,261,866  $4,486

7

Seaspan Corporation

93

             677,900  $3,353

8

Evergreen Marine Corp

120

             673,805  $3,266

9

Shoei Kisen

50

             467,417  $3,011

10

OOCL

61

             541,941  $2,578

The top three alliances

THE Alliance Total Teu
Company Number of vessels Total Teu Total Value $M
MOL/K LINE/NYK

134

         1,054,909  $                   6,130
Hanjin Shipping

37

             274,222  $                   1,009
Hapag Lloyd/UASC

121

         1,075,875  $                   5,418
Yang Ming Marine Transport

                                   47

             224,554  $                       750
Total

339

         2,629,560  $                 13,307
2M Total Teu
Company Number of vessels Total Teu Total Value $M
HMM

24

             179,123  $                       667
Maersk Group

251

         1,888,003  $                   8,258
MSC

204

         1,261,866  $                   4,486
Total

479

         3,328,992  $                 13,411
Ocean Alliance
Company Number of vessels  Total Teu Total Value $M
CMA CGM/APL

152

         1,225,480  $                   6,126
China Cosco Shipping Corp

199

         1,629,204  $                   7,972
Evergreen Marine Corp

120

             673,805  $                   3,266
OOCL

61

             541,941  $                   2,578
Total

532

         4,070,430  $                 19,942
 

 

   

 The top 3 alliance vs whole container fleet

The top 3 alliance now own 45% of the entire world container fleet, showing a huge appetite from the largest container companies to merge. 

Rank Alliance Total vessels Total Teu Total Value $M

1

Ocean Alliance

532

              4,070,430  $         19,942

2

2M

479

              3,328,992  $         13,411

3

THE Alliance

339

              2,629,560  $         13,307
Total                  1,350             10,028,982  $         46,660
Total World container fleet

               5,355

            23,859,810

 $       103,261

Top 3 Alliances as a percentage

25%

42%

45%

The Geopolitical front continues even worse this Monday in comparison with last week’s / and weekend news!

The MIGRANTS issue continues to harm all societies not just in the Middle East and Europe, but all over Planet Ocean. We expect to see some sort of change of attitude as we feel we are going to experience dreadful things happening; it will be the most cataclysmic effect in our lives! Few minutes ago we have been advised of yet another boat – with no signs etc living/disembarking at Xyropotamos in the north-east part of the Greek Island of Antikythera, 45 migrants… Shame! More influx elsewhere in the Aegean Sea giving more trouble to the Greek Islanders, and from the North African coast – mainly Libya to Italy… The Calais  issue is not that simple yet; fine, no one to go back, but what happened to the inhabitants of Hell there? How will they reach safely the destinations arranged for them? In Greece also we had fighting erupting amongst the Migrants in the centres on the Islands. The Migrants are more than fed up,  equally the islanders of Lesvos, Chios and all the other Greek Eastern Aegean islands… We are tough on the issue of MIGRANTS as in Greece until this very moment, from figures available, there were higher figures as the influx reached nearly 54 centum. On the Greek Islands there are now 16,000 Migrants (to be precise: 15,972) and all over Greece (mainland) 62,000 (to be precise: 61,327). The Greek political establishment and their cronies have spectacularly failed on all counts vis-a-vis the Migrants issue; Europe too; this is the harsh reality!  No excuses! We had Enough!

The real Syrian saga, as said in previous reporting, will now begin to enfold. Take cover… Too many issues at stake involving the local countries and not just the periphery there, but the entire periphery of a 3,000 miles radius!

The fight for Mosul continues. Await the end result… Meantime from what comes to our attention, is that there have been assurances for the creation of a mega Kurdish State including of course the current established Kurdistan in Northern Iraq, parts of Syria, Iran and Turkey…

Given the USA-NATO / Turkish relationship, but also that of Russia-Turkey this chess game will prove for very strong nerves; be advised of a very messy situation… In any events, Turkey, cannot have it both ways… eh! Turkey has “unilaterally” been involved in the region. Turkey and its president as well as the leadership of his country must come down to terms with international law and order – unless there are proxy guardians and backers of Turkey and we …don’t know. In the meantime the Americans have issued warnings for Turkey particularly for their citizens, whether they are diplomats in the consulate there – particularly in Istanbul, or servicemen, tourists and others. They did so before Erdogan’s coup. Terrorists will strike in Turkey; the die is cast and we hope the authorities there are ready to tackle them. Indeed we all dislike terrorism of any kind, but at the same time we want democracy to prevail in Turkey given the latest arrests there and detentions – the media have had it… Turkey and its leaders must avoid the continuation of provocations with Greece too. The explosion in the World will be detrimental for all, not just for the two countries.

The Turkish occupying forces in Cyprus north part, must leave here and now, unless there are other reasons for this, which will lead to a treason soon. The UN if it really knows how to work and operate must give an end to the occupation of northern Cyprus and the European Union has to push for this too. Otherwise Mrs. Merkel et all you are supporting a situation for which your good self knows best, given the division of your country! There are NO excuses anymore for the Cyprus issue. Enough!

The BREXIT saga continues – still early days, but in a nutshell, at the end of the day, BREXIT will benefit the British people. You see the power of the Commonwealth has its say; you see, there is nothing wrong for doing bilateral trading national agreements. For the Shipping industry that matters much and most for trade, equally NOTHING will happen. London will remain the administrative capital of shipping!

Greece is going through a touch time as we have many times written. The Muppett Puppett Shoow (the spelling is on purpose) of Athens at its best. When the going gets tough, let me know… We have expressed that the ONLY viable solution is that of an Aristos government so to speak, to take over for ten years and rectify the country. All the rest is, excuse my french: bullshit – per the American overused expression!  An appropriate GREXIT while Greece and its people can, is also feasible. As for the EURO… oh well…At least the denomination of freight rates are in USDollars!!!! You dead well know what I mean. See our 2012 live CNBC view on this!

The USA’s presidential election continues; it’s until now the most messy and silly in the entire US history. Both sides are …charged from what we know in shipping/ marine insurance: Both to blame collision! In our humble view and being very spoiled from the regulatory environment prevailing inb shipping- as much as same can be effected, a vessel has to be fully seaworthy at the material time she’s negotiated for charter; equally, politicians should have a clean bill… before they are allowed to stand for elections. Given the magnitude of the importance of this Presidential election we feel there is more to come and the public has been conned from both candidates as well as from their named accusers and suspects… Another big Shame for our society and we hope there are rules next time round to apply not just for the USA’s elections, but for all politicians all over Planet Ocean! Mrs. Clinton, before accusing the FBI, she should know how the FBI works, and Mr. Trump should understand that under the belt punches one day might backfire even worse that his campaign team understands.

The devastating earthquake in central Italy must alert us all. For those attended Prof. Thanopoulou’s speech at CASS last week where Fukushima was mentioned, the world MUST understand the impossibility in tackling natural disasters – be it Tsunamis, Earthquakes, Typhoons, but for sure we can be prepared. Imagine if a major or important position/location-wise Port is hit by any natural force what will be the end result and the incalculable repercussions for shipping, transport and above all humans. Preventing organisation and remedies can even help a bit, and this bit counts. We express our sympathy for all those in Norcia and in the surrounding areas and regions and we hope that the authorities and the EU rapidly rectify as much as possible and fast the situation, given that at least 15,000 people have no shelter…

The former Argentinian president Cristina Fernandez de Kirchner appears in court for corruption; she maintains that she’s the victim of political persecution… we shall see…

A very vibrant Diwali Festival in India created a very choking atmosphere, particularly in Delhi! The atmospheric level of pollutants was 30 (thirty) times higher the WHO levels…

In Shanghai, the toilette syndrome goes to test… but what about the economy there? Can China survive or there will be a big bang? Just wonder?

A great AMVER Awards event in Athens, well done Propeller Club – will revert with the full story!

We eagerly await the Capital Link’s CSR event in the Square Mile next Wednesday and also the 4th Greek-Russian Energy Forum in Zappeion Mansion  in Athens on the same date!

Lastly we would like to thank you all for your support, trust and honour to be with us these five years since ALLABOUTSHIPPING.co.uk was launched. A special thank you article can be soon read herein.

Enjoy Hallowe’en!

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