Two weeks of Capes’ “dominating” the otherwise stagnant market…

Chartering, Dry Bulkcarriers, Insight, Markets, Military, Reports, Sanctions, Shipping Indices, Stock Markets, Tankers — By on May 4, 2018 at 11:58 PM

John Faraclas

The BDI (Baltic Dry Index) gained just eight points since yesterday and now stands at 1,384 points. On a weekly basis it was up 23 points since Friday the 27th of April… (From 1,361). Geopolitics as usual, getting more than worse. John Faraclas daily and weekly recap:

The Capes volatility and uncertainty become monumental! The BCI gained just 29 points and now reads 2,337; I am saying “just”, as yesterday it gained on a daily basis 111! On a weekly basis it was up 86 points – from 2,251… Volatility at its best… One size CANNOT “become” the norm for the Markets

The Panamaxes BPI was down one point at 1,265 and on a weekly basis minus 10 (from 1,275); caution!

The Supras’ BSI gained three points and now reads 1,050; on a weekly basis it was up eight points (from 1, 042)…

The Handies’ BHSI was down two points at 589 and a weekly basis minus 16  (from 605 points)… Hmmm!

So all in all, a market not just being dominated by the volatile and uncertain to a certain extend Capes, but a stagnant downwards heading dry market. Add the newbuilding spree and see what you are going to get; add the geopolitical chaos and then you might have a clue of what might come next…

The Wets in a very perplexed situation; the last published BDTI (Dirties) and BCTI (Cleans) stood at 648 – plus one and 546 – also plus one point; on a weekly basis the Dirties remained the same 648 whilst the Cleans lost 25 points – down from 571 points. Again and per previous statements, we need to see both indices above the 1,000 point mark. Let us hope that the Suezmaxes come up as the last five years haven’t been good at all… Analyse this and see where it will get you…

The WTI stood just before midnight BST at US$ 68.30; let’s see what’s next here as last week the WTI stood at US$ 67.80 and the previous one at .. US$ 68.30 – coincidence or what… We reiterate our view that the WTI should go per mare per terra down to US$ 49.99 otherwise we warn of an unprecedented mess which will erupt all of a sudden… The masses all over Planet Ocean suffer!!! That’s a must to change, if not it will backfire! Remind you our belief that, if we opt for the alternative sources of energy very simply big money will change hands… Let’s see for how long oil and gas can dominate our lives with high prices when there is no need… At US$ 49.99 maximum could be acceptable, otherwise …overstaying your welcome can become, as history tells us in the harshest way, a boomerang…

The Newbuildings, mergers, acquisitions and bankruptcies continue to dominate the news… What an interesting environment to conduct your business… Let’s see how many will go ahead. Not too much demos …err scrapping of vessels… Inevitably we are going to see a lot forced ones following financial issues. These are changing times; forget the past, it is the now and the future, end of the story.-

The Geopolitical situation gets worse; here are some of the most important issues which continue to lead the news – some others are not as the media is being directed not to air them or even they don’t go deep down the causa proxima of the matter; shame:

The MIGRANTS with whatever this word …entails (covering Immigrants – legal and or illegal, Asylum Seekers, “Fugitives” due to the situation prevailing in their countries, Émigrés, Political and Religious immigrants etc etc) remains the top issue and we have seen the last decades an increase, with the last five a ten-fold one… The attitude in tackling this issue has been completely a spectacular failure as the politicians proved not just being inadequate but pathetically “let it be” turning a blind eye… See what happens particularly after the Wars in the Middle East’s wider periphery as well as in the entire North Africa region. We have stressed that the region from Gibraltar to Afghanistan and from the Caucuses to the Horn of Africa produces millions of MIGRANTS given the situation and circumstances enfolding there every single day – wars, civil wars, political, religious wars you name it. This despicable situation, which not only destroys the social cohesion in many nations, particularly in Europe, must end before it is too late for all. Countries which on purpose keep a blind eye and allow the MIGRANTS coming basically into Europe, must be reprimanded. Turkey is totally responsible for this in its Anatolian Coast allowing MIGRANTS cross over to Europe, many of whom die/drown… Turkey isn’t a lawless country as is Libya for example… No excuses please Mr. Erdogan; enough! What is the best remedy? Well, a Naval Blockade with Rules of Engagement and a clear Mandate,  e n d   of the story! In 2018 we cannot be any further bullshitted!! Following Les Misérables isn’t time we have Les Misanthropes, eh!

The Wars in Syria and Iraq continue; the inferno in Syria is second to none. That country has been completely demolished by all… Wonder how come the warmongers supersede the politicians and diplomats? There is no excuse at all. Pity for the sufferings of all these millions of people who come across a despicable attitude from all. Shame!  Shame as the situation might soon get worse especially with Israel feeling uneasy with Iran and rightly so… The “Alliances” might end up the whole issue in a terrible mess. Not to worry though, as by now – as we all know that, we are in the Third World War  and events very shortly will confirm this. Another Cold War? This time for what?  Turkey’s presence there as well as attitude makes us all being very sceptical… The Americans dig in, the Russians too as well as their allies. Let’s see what is gone to happen…

Turkey its self is now living an election fever and everything is tensed. Nothing is as yet clear. What can Muharrem Ince do in challenging president Erdogan? A school teacher trying to deliver a lesson… but in very difficult times… we shall see… A bankrupt nation with an appetite to destroy every single nation it borders with, playing the worse as always blackmail game, might ignite a general conflagration in the entire region engulfing Europe too and bringing in all major powers. These are not political games given the forthcoming elections; these are premeditated acts… Turkey pestering Greece might cause big headaches for Europe and NATO. There are no excuses whatsoever and both the EU and NATO must behave appropriately,  as it seems to all that the Turkish blackmail works. What is Mrs. Merkel afraid of and she doesn’t, as the most powerful person in the EU, act to halt Turkey’s despicable attitude, eh??? The latest incident a few hours ago with a Turkish cargo ship colliding with a Greek war ship – one of the many provocative incidents,  might soon lead to the worse escalation as crossing the red line might ignite the Fourth World War!! Turkey will never respect the International Law and in particular the Law of the Seas.

Greece next door might also follow suit and we might see a snap election. The country still cannot stand on its feet as the politicians failed to deliver proper financial governance harming the public to the worse extend and the country needs per mare per terra further financial support under patronage – of course, from its lenders; shame! The country needs both internal (local) as well as foreign investment but under the provisions of the lenders and the current politicians in power NOTHING really happens…We have numerous times expressed the most pragmatic view and we can challenge all 300 MP’s live on any A1 TV channel that the country need an Aristos so to speak team, run and rule Greece for ten years and after streamlining the economy and change the electoral system alike the one in the United Kingdom – one candidate per constituency and only one winner; end of the story, as any excuse is petty party politics in which all 300 MPs care for their chair and only their chair.- The issue of Turkish aggression as well as the instability in the Balkans with a dodgy as ever Albania, as well as a pathetic stance from fYroM, might produce further mess… Caution….

The Balkans continue to be the tinder box of Europe… Handling the region need wise decisions and NOT the superpowers “vested” interest to come first… religion too another stumbling block…

Italy still seeks the right match for a governmental coalition to run another European liability… Caution…

Macron’s France is trying to re-assert itself … Paradox is another powerful Greek word and Macron is a paradox leader for France; can he save France? A year at the helm and we all await to see how the young man delivers… The end result is the one that counts; and this is the paradoxical oxymoron in this case…50  years after Paris’ May events, France remains “under siege” from its leaders’ policies…Having visiting France quite often and criss-crossing the country, I must say that there is a lot to be done so France conforms with its status as a G7/G8 nation…

In Germany let’s see how Mrs. Merkel restores business confidence…

BREXIT continues with its twists and turns – there is more to come though… Among other issues there is now a stalemate after the local elections with Labour in tatters; that wasn’t Labour’s expected result… Mr. Corbyn must hand over his leadership to a more capable Labour leader… The good weather continues… A very good sign at least which greatly helps the economy…

A messy EU seven-year budget given the British exit and the increase of another US$ 1 trillion or so plan which Austria, Denmark and the Netherlands oppose same… Too many issues; it is not just the BREXIT, it is a group of seven nations awaiting to cross over and join the EU…

At the other side of the Atlantic,  US president Donald Trump has become the epicentre vis-a-vis  his relations with the other G7 or G8 leaders (to include Russia)  and others…like China giving him the occasional headache…  the sanctions with Russia begin to hurt even amongst high level Russians. A cloud of discontent is shadowing relations between the Kremlin and its oligarchs…

China causes many issues to president Trump and must trim-down its trading deficit with the USA by a hefty US$200 billion… In any case whatever happens the trade war is on. Let’s watch how the winner gets its grip…

Watch-out Facebook and the GDPR issues. We might see a lot of messy things surfacing and this is serious, far more than launching a dating agency… “It’s the Privacy stupid” to rephrase  the 80’s slogan… or even maxim on the USA’s issues that time… Clinton’s “magic” versus George H. W. Bush…

Now tell me, what do you make the 40 centum interest rate in Argentina? Eh?

l to r: Constantine P. Lemos, Mrs Tina Adamou-Fika, Ioannis Fikas, Sophia Fika and Maridia Kafetzopoulou

On another tone and note we had two interesting events today. The one in London was the much-awaited  Philosophy and Leadership at the great hall of the Hellenic Centre. The very eloquent Ioannis Fikas presented the role of the ancient city and the sacred geography which is the bridge between the earthly and the celestial world through his book. We had the unique opportunity to listen his views and in particular on the vital importance of philosophy which liberates the soul from flaws and faults and indeed prepares same for the understanding of the truth. His wife Tina Adamou-Fika also delivered a short presentation as well as his daughter Sophia on the architecture in ancient Athens.

The book cover

Ensure you find the book which contains twelve lectures on art, culture education and philosophy; same were delivered in universities – Athens, London, Moscow… The environment also with Angelos’ paintings – the exhibition is still on, greatly assisted the event and the 45 to 50 attendees indeed had a great time. Ioannis Fikas made a special reference to Angelos’ work and how same enhanced his delivery.

Congratulations to maca.space’s Constantine P. Lemos and Maridia Kafetzopoulou for their very thoughtful combination for both events; excellent!

Down south,  in Greece and in particular at the Nautical Museum – the Papanikolis Museum, at Marina Zeas, Piraeus, a very interesting conference took place.

l to r: Katerina Konsta, Jenny Pournara-Bardavilia, Maria Mavroudi and Emily Lionis

Organised by Seaworks for the EASTMed Yacht Show on “Liabilities, Insurances options & Arbitration for Yachts” we were more than pleased amongst others to have there Katerina Konsta- CEO at SeaWorks Training and Consultancy as well as CEO at STAMKON; she was also  the Presenter-Panel Coordinator, Jenny Pournara-Bardavilia – Maritime Arbitrator-Mediator Consultant on “The importance of Mediation as a fairly new way of resolving disputes.” Yacht owners and stakeholders involved in the yachting industry in Greece can benefit from using Mediation as an alternative dispute resolution (instead of International Arbitration etc) in terms of legal costs and fees (which are lower in Greece) and because Greece may pride itself for having some of the best surveyors and experts.  Maria Mavroudi – Business Development Manager at SeaScope Hellas S.A., who spoke on “Insurance & Settlement of Losses for Yachts” pointing out the necessity for yacht owners to improve their insurance mentality,  and Panagiotis Kounoupas – Marine Underwriting Manager Blue Aigaion Insurance Solution on “The existing legislation related to Obligatory Insurance of Yachts, in the EU Countries and particularly Greece”.

Panagiois Kounoupas delivering his speech

The East Med Yacht Show 2018 which begun yesterday, continues until Sunday the 6th of May. A great chance to see unique boats too and given the beginning of the summer cruise season, the best opportunity. Many thanks to Emily Lionis for her support on this event!

Have a nice weekend and be on guard for any eventuality emanating from Pirates and Terrorists looming in the background wherever you are on Planet Ocean… in this long weekend as in the United Kingdom there is also a Bank Holiday!

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Uploaded  21:45 BST

Updated 23:59 BST

 

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