The BDI@1,201 – falling further

Markets, Military, News, Reports, Shipping Indices, Stock Markets — By on November 24, 2016 at 7:01 PM
John Faraclas

John Faraclas

The Markets are causing concern given the Capers’ 133 points fall earlier on today bringing the BCI 2014 down at 2,374 points; Geopolitics will soon itch you too…. John Faraclas’ daily recap:

The BDI (Baltic Dry Index) lost 23 points earlier on today and with the dodgy Geopolitics becomes a major liability. Despite the wishful thinking that the BDI will go soon over and above the 1,500 points, we are the other way round, dropping towards the 1,000 barrier – let’s hope we don’t!

The Panamaxes’ BPI also lost two points, a minimal loss though bringing the BPI at 1,385…

The Supras and the Handies continued their rise; the BSI and the BHSI gained 23 and 11 points respectively now standing at 897 (close to breaking the 900 points threshold) and 512 (steady above the 500 barrier).

The Wets steady and slightly upwards; the last published BDTI (Dirties) and BCTI (Cleans) stood at 870 (up eight) and 459 (no change) points respectively.

The price of WTI  just above the US$ 48,05 – early hours yet for concluding the day…

The energy issues will very soon bother us!

Elsewhere …in the Markets the bad loans issue, the luck of funds and in general the bad state of shipfinance rules the day; add the geopolitical chaos and see what you get – see our yesterday’s report here .

In the Container sector this is a very interesting reporting point by VesselsValue; it combines liner trade and demolition too:

Today in the containership industry a landmark deal has occurred with the youngest ever containership sent for demolition by Rickmers Marine Trust. The vessel was a seven year old panamax boxship (4250 TEU, 2009 Blt, Built China). She is valued just above scrap at USD 5.87m. In 2016 the vessel fell 62% in value. This year the average change in value in the containership sector is -26% to put this figure in perspective. The main reason for this is that these vessels are becoming defunct now that the Panama Canal has been widened. Since 2 years before the first transit of the new locks which happened a couple of months ago, 2009 built Panamax containers dropped in value by two thirds.

Youngest containership demolition age
Year Youngest ship sent for demolition

2009

24

2010

23

2011

19

2012

12

2013

14

2014

14

2015

13

2016

7

 

Rickmers Marine Trust
Live Fleet USD 88.69 million
Demo Value USD 87.68 million
Vessels 16 Panamax Containerships
Average age 8 years

5 vessels on LT charter to Mitsui OSK

6 vessels trading in spot market

5 vessels decommissioned – sat off Batu Pahat, Malaysia

(Erwin Rickmers, Sabine Rickmers, Maja Rickmers, Kaethe C Rickmers, Laranna Rickmers)

Container fleet breakdown
Type Vessels % of fleet Total Size (TEU) Average Size (TEU) Fleet Value (USD Million)
CONTAINERSHIP

5,346

13%

23,830,764

4,458

102,298

ULCV

310

6%

5,031,706

16,231

34,402

NEW PANAMAX CONT

233

4%

2,714,519

11,650

17,241

POST PANAMAX CONT

1,190

22%

8,337,538

7,006

28,387

PANAMAX CONT

829

16%

3,480,457

4,198

5,355

SUB PANAMAX CONT

711

13%

1,798,152

2,529

6,483

HANDY CONTAINER

827

16%

1,350,141

1,633

5,336

FEEDERMAX

1,246

23%

1,118,251

897

5,094

 

Shipyards all over the world in severe crisis.

Shipfinancing Banks are already, the majority of them, a liability; the public shouldn’t rescue these banks. Those responsible have to pay the damage…

So all in all a market for cool nerves, a market only for those thoughtful ones with appropriate risk shields and assessments in place! A good market though to acquire tonnage, the best ever market witnessed so far!

The Geopolitical front continues to produce shocks:

The MIGRANTS issue continues to make life hell for the Greek Islanders; in Chios they have opted to appeal against the construction of another hot-spot for Migrants coming from third countries. The responsible minister in our view is out of any context.  Expect a messy outcome in all Greek islands and also in Greece’s mainland. Europe must bear the responsibility.  We all hope that the news coming to freeze the Turkish negotiation entry to the European Union is possible a good step, although the Turks do not respect anything whatsoever.

Turkey is the nation which is “interested” in seeing the Third World War taking place. Its attitude versus all treaties is despicable; its human rights records and in general all what takes place lately following its president’s coup – this is a personal view which is also shared by over one billion people, the arrests etc etc is a tangible evidence that we must all be on guard for his inhumane Turkish appetite. The major powers for their own reasons accept, for the time being the Turkish blackmail in all fronts. The time though will come when the world will revolt in its entirety and then you will see how the shit hits the fan! Shame! Still wonder why on earth we use diplomats… regret this view but the reality is here… hence we pray for Nemesis. As far as the German political establishment which runs Europe is concerned vis-a-vis the Turkish behaviour and its silent “acceptance”, very soon as we have predicted and written yesterday they will end up in rubbles…Just wait and see. The wrath of the public is rising and will go beyond control… Meantime Turkey MUST respect its neighbours and all existing International Treaties! Expect a climax of Turkish  blackmailing against the European Union!

Moreover today Turkey had many victims in various regions of its southeast territory and in Syria. Within Turkey over 10,500 were dismissed from their jobs as the continuous crackdown, following Erdogan’s Coup found links of these public servants with the Kurdish PKK… Three Turkish soldiers were killed in Syria, an explosion in Adana killed two and injured 21 civilians; another despicable action as Commerce Minister Mehmet Muezinoglou said, bearing the seal of terrorists of the PKK…

In Syria the war continues so does the atrocities from all sides. The triple war – let’s call it, involves the Syrian Rebels, the ISIS terrorists and anybody else you can imagine. Expect the unexpected, but Russia will not back off. Does Syria’s Assad holds the golden key or what?

Next door in Israel fires continue to burn central and north Israel. Such is the ferocity of the fires that even the Greeks send fire-fighting airplanes to support and help their Israeli friends.

In France, thank God it was announced that the terrorist arrested in Strasbourg and Marseille over the last weekend where targeting Disneyland Park and Champs-Élysées…

In Baghdad the carnage of explosions continues over two decades now… Is there a chance for Peace? Today nearly 100 lost there lives…

In the USA it was announced that Mrs. Hillary Clinton got Two Million More Votes than president-elect Donald Trump. Democracy at its best or what? Isn’t time we create a global electorate system for better serving Democracy? This is the message we are passing today the Thanksgiving Day to our fellow Americans, friends, family and colleagues! Democracy please!

The European Union suffers now with the parity of the Euro which hangs now at 1,05 to 1,06 to the USDollar. Meantime we hear that there will be free movement of Ukrainians in certain states of the European Union; the Turkish president will for sure be more than upset if this development takes place…

BREXIT BREXIT BREXIT but not to all costs. We fully support the BREXIT idea and respect the United Kingdom’s peoples vote for BREXIT, but same needs a bit of streamlining… We believe that Prime Minister Mrs. Theresa May will do best ensure all in order until and after the exit!

In Greece the current government will be soon faced with Herculean tasks and wonder what the response will be… Expect surprises of all kinds in Greece…

In the Far East and the Subcontinent the situation remains the same; on another tone though 67 people are believed to be killed when a platform collapsed in China’s Jiangxi province at a construction site of a power station…

We also hear that in Myanmar there is an ethnic cleansing taking place of the Rohingya, a Muslim minority there… not nice news…

That’s all for now, get geared for the coming Festive Season; the dinners and parties just begin.

Have a nice evening and be on guard for every eventuality!

P.S. If there is something special, you will read same in the upcoming update…

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