The naked truth; the BDI@1,330

Chartering, Comment, Dry Bulkcarriers, Markets, Reports, Shipping Indices, Statistics, Stock Markets, Tankers — By on November 28, 2018 at 11:59 PM

John Faraclas

The BDI (Baltic Dry Index) lost nine points earlier on today due to Capes’ hiccups so to speak. Geopolitics create an uncertainty and things – as we have numerous times warned you: will get sour. John Faraclas’ daily market briefing:

The Capes’ BCI  following a crazy upwards spree lost 49 points and now stands at 2,121 – what a number eh! Let’s watch how this index evolves… Yesterday was a very unusual day…

The Panamaxes’ BPI gained 28 points and now stands at 1,444; good news!

The minor losses continue for both the Supras and Handies; the BSI lost one point and the BHSI two – now standing at 942 and 629 points respectively…

We hope things to remain as they are as if losses occur same will make the market dive below the 1,000 points; we are optimistic but extremely pragmatic!

The Wets on an upwards mode; the last published BDTI (Dirties) and BCTI (Cleans) stood at 1,131 – plus four and 695 plus 26 points respectively!

Please see VesselsValue  data on the newly announced merger between Capital Product Partners & Diamond S Shipping to make $1.5 Bn fleet . Comments provided by Court Smith, Senior Analyst:

Diamond S Shipping and Capital Product Partners have announced the merger of their product and crude tanker fleets.

The new Diamond S Shipping Inc. fleet will contain 68 vessels, made up of 43 tankers from Diamond S Shipping and 25 from Capital Product Partners.

The merged fleets will own the second biggest Handy Tanker fleet, owning a combined 52 vessels. The only larger Handy Fleet in the world is owned by Torm, the publicly listed Danish shipowner.

Capital Product Partners will retain control of 1 Capesize Bulker and 10 Post Panamax Containers.

This merger will be most significant in the MR2 tanker market. The trading areas of the two fleets is varied, CPLP appears to bring commercial relationships with operators well entrenched in the Latin American market, particularly Brazil.

 

Diamond S MRs see more activity in the US Gulf, Singapore, and the far east.

Regardless of who is ultimately fixing these ships on a day to day basis, the merger now creates an owner with a global footprint in the clean tanker markets.

 

 

 

We appear to be at the bottom of a market cycle for MR tankers, leaving plenty of upside for the asset value of the underlying vessels.

 

The WTI as these lines are being written stands at US$ 50.23… Another interesting story evolves here…

Geopolitics continue to “warm up”; things are both critical and crucial in at least 30 (thirty) spots. Be on watch… Most of the Geopolitical issues are on the MIGRANTS, The faulty line between Gib to Afghanistan  and from the Caucuses to the Horn of Africa, The G20, BREXIT, the entire EU with the Italian saga going to make history, The Balkans, Greece, Cyprus and Turkey, The Black Sea – Sea of Azov mess with Russia and Ukraine at loggerheads,  the East Med… Yesterday you had a full write up most of which remains the same today. We live in interesting times but be prepared for traumatic situations .

Have a nice evening and continue to be on guard from actions emanating from Pirates, Terrorists and any Criminals whatsoever wherever you are on Planet Ocean…

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