Dangerous Market volatility and Geopolitics uncertainty

Comment, Conferences, Seminars, Forums, Container shipping, Insight, Markets, News, Shipping Indices — By on January 4, 2017 at 11:06 PM
John Faraclas

John Faraclas

Many times in the past we have explained that volatility is the stumbling block and the geopolitical mess bringing cataclysmic and destructive results in the entire shipping industry; John Faraclas’ midweek recap:

The BDI (Baltic Dry Index) gained, thanks to the Capers, 16 points rising to 969 points, despite the fact, as you will read herebelow, that all other dry indices were on a falling modus!

The Capers reached 1,674 points – that’s 136 points plus for the BCI 2014 since yesterday… Normally, one would have been more than impressed and positive thinking, but… we believe that Capers up and down volatility will continue and many boats will run aground… Caution!

The Panamaxes had a contained fall, with the BPI down four points and standing now at 807… Smelling a messy winter…

The Supras’ BSI lost another 23 points – now reading 820 and the Handies lost another 20 points bringing the BHSI down to 539; is it good-bye to the 600 highs? Wonder? We shall soon see…

Once again we reiterate the fact that one size, the Capers in this instance, cannot dictate the markets…

Now, what an upwards positive explosion that was with the Wets, eh! The last published BDTI (Dirties) and BCTI (Cleans) gained 169 and 189 points, bringing the respective indices at 1,088 (first time after a long time above the 1,000 point threshold), and 865… What about the effect of this unprecedented rise?

The price of WTI remained just above the US$53 – to be precise at US$ 53,36… let’s see what happens in conjunction with the rise of the BDTI and BCTI…

The Containerships and its respective trades are still in a mess… This mess will continue all through 2017!

Scrapping still down; we need to see vessels going off as soon as possible whilst owners and banks can afford to, otherwise the situ will be unbearable; add the new regulations and too many obsolete ships in the market will remain …overnight idle…

The Shipyards will play a pivotal and decisive role for the well-being of the entire industry particularly now that Japan surpassed South Korea!!!

The Geopolitical front is ready to produce major cataclysmic events and it’s a pity to witness very soon major warring disasters. Antagonisms in business and greediness, needless to say corruption will further deteriorate everything on Planet Ocean.

The major issues as per our yesterday’s recap remain unchanged:

MIGRANTS, ISIS, general Middle Eastern crisis, economic catastrophes – such as the one in Greece and as you see if you search in depth, in most of the EU countries. Watch-out for Turkey too, as , except the instability there which might even lead to an all-out civil and regional war, the Turkish blackmail can create further global chaos…

Putin’s Russia for the time being, in the absence of a robust American counter policy response, plays its own game. The World eagerly awaits Donald Trump to sworn-in and then further the world economy for the benefit of all; can he do it? Can he deliver?

BREXIT indeed might last a decade… so who lives and who dies…

China has its own mentality agenda, which is dangerous so to speak and Japan are also countries to watch. Dangers in Indonesia too. Brazil is on the verge of bankruptcy

Anyway be on guard for every eventuality…

Watch our live message, still being in a jovial mood following Christmas and the New Year…

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